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X","page_number":21,"box":{"x":122,"y":646,"width":717,"height":11}},{"id":"20e3c488-b5a2-42b8-8415-ba432a337e33","block_type":"box","text":"Yields and Ratings","page_number":21,"box":{"x":123,"y":664,"width":108,"height":10}},{"id":"e8adab68-4994-452c-9575-7cc535419883","block_type":"box","text":"XX","page_number":21,"box":{"x":732,"y":665,"width":107,"height":7}},{"id":"b4c0f73c-213d-4da1-b85f-2e029e0d6858","block_type":"box","text":"Zero Coupon Securities","page_number":21,"box":{"x":123,"y":683,"width":137,"height":9}},{"id":"37d4d4f1-8a74-4478-9698-2589c687a61b","block_type":"box","text":"XX","page_number":21,"box":{"x":732,"y":683,"width":107,"height":7}},{"id":"ab587df2-5f80-4db7-a94e-13a51a15adfc","block_type":"box","text":"1","page_number":21,"box":{"x":128,"y":714,"width":4,"height":4}},{"id":"4afbef67-a70a-4495-8f75-b6838b083a02","block_type":"box","text":"The Fund may only make short sales against the box and with respect to futures contracts and related options.","page_number":21,"box":{"x":146,"y":713,"width":640,"height":10}},{"id":"95217ed0-3382-4d1f-952f-22804da9d020","block_type":"box","text":"Insurance Law Restrictions.","page_number":21,"box":{"x":116,"y":734,"width":192,"height":9}},{"id":"bfa33a73-b1ab-4500-823c-fc77aab8bc3d","block_type":"box","text":"In order for shares of each Fund to remain eligible investments for the Separate","page_number":21,"box":{"x":314,"y":733,"width":547,"height":13}},{"id":"db688055-446a-4eac-bd05-af45c9ff8df8","block_type":"box","text":"Accounts, it may be necessary, from time to time, for the Fund to limit its investments in certain types of","page_number":21,"box":{"x":116,"y":747,"width":724,"height":13}},{"id":"40b7a078-ccac-4b20-8de4-2c4e75a5e9be","block_type":"box","text":"securities in accordance with the insurance laws or regulations of the various states in which the Contracts are","page_number":21,"box":{"x":116,"y":761,"width":763,"height":13}},{"id":"e1796b09-a60d-4847-867f-899ae42ca53e","block_type":"box","text":"sold. New York insurance law requires that investments of each Fund be made with the degree of care of an","page_number":21,"box":{"x":116,"y":776,"width":749,"height":12}},{"id":"c2f4e779-c2e6-42ac-9038-d059a9269e5d","block_type":"box","text":"“ordinarily prudent person.” The Manager believes that compliance with this standard will not have any","page_number":21,"box":{"x":117,"y":790,"width":727,"height":13}},{"id":"5033b9e0-fbd5-49bb-a1ec-6c175230b97d","block_type":"box","text":"negative impact on the performance of the Funds.","page_number":21,"box":{"x":116,"y":804,"width":344,"height":13}},{"id":"926ea7da-0037-4ec0-b157-79b133799c41","block_type":"box","text":"Other Considerations.","page_number":21,"box":{"x":116,"y":826,"width":154,"height":10}},{"id":"0399de2d-f366-47a1-92a8-8a51d881d0ca","block_type":"box","text":"The Manager will use its best efforts to assure that each Fund complies with certain","page_number":21,"box":{"x":275,"y":826,"width":580,"height":13}},{"id":"db6f241c-bede-49f3-aefa-f9e44104e40a","block_type":"box","text":"investment limitations of the Internal Revenue Service (the “IRS”) to assure favorable income tax treatment","page_number":21,"box":{"x":116,"y":840,"width":745,"height":13}},{"id":"d7c43db8-4666-4ded-9d68-f77ab4acbeef","block_type":"box","text":"for the Contracts. It is not expected that such invest","page_number":21,"box":{"x":116,"y":854,"width":358,"height":13}},{"id":"edfaf38e-a339-47a9-a30a-02ae3343d2be","block_type":"box","text":"ment limitations will materially affect the ability of each","page_number":21,"box":{"x":475,"y":854,"width":388,"height":13}},{"id":"dce4bb1a-b5bc-4793-a43e-df2cfb5ac4c4","block_type":"box","text":"Fund to achieve its investment objective.","page_number":21,"box":{"x":116,"y":869,"width":279,"height":13}},{"id":"9af8917d-8220-465a-a523-696ed863ecee","block_type":"box","text":"I-5","page_number":21,"box":{"x":490,"y":917,"width":19,"height":9}},{"id":"166311fe-0ff0-43c6-b6c3-a22f096929bd","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":21,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"035a1e65-20ce-4bb4-a1c9-1968f4542698","block_type":"box","text":"Regulation Regarding Derivatives.","page_number":22,"box":{"x":116,"y":79,"width":238,"height":13}},{"id":"05b91b95-13ff-457f-a15c-d2ed80087ab9","block_type":"box","text":"The Commodity Futures Trading Commission (“CFTC”) subjects advisers","page_number":22,"box":{"x":359,"y":79,"width":518,"height":13}},{"id":"3f2d6836-bc03-4524-88eb-81886af21d1e","block_type":"box","text":"to registered investment companies to regulation by the CFTC if a fund that is advised by the investment","page_number":22,"box":{"x":116,"y":94,"width":725,"height":13}},{"id":"137b25a6-472c-40d1-9387-d26b5bb14681","block_type":"box","text":"adviser either (i) invests, directly or indirectly, more than a prescribed level of its liquidation value in CFTC","page_number":22,"box":{"x":116,"y":110,"width":747,"height":13}},{"id":"ce5c5e4c-1a1d-441e-b166-76b9ac624e3d","block_type":"box","text":"regulated futures, options and swaps (“CFTC Derivatives”), or (ii) markets itself as providing investment","page_number":22,"box":{"x":116,"y":125,"width":728,"height":13}},{"id":"6cac9884-e7f2-4ad5-98e9-72528481e05c","block_type":"box","text":"exposure to such instruments. The CFTC also subjects advisers to registered investment companies to","page_number":22,"box":{"x":116,"y":141,"width":703,"height":13}},{"id":"2627764d-926a-45a1-bbcf-e9d947496cb7","block_type":"box","text":"regulation by the CFTC if the registered investment company invests in one or more commodity pools. To the","page_number":22,"box":{"x":116,"y":156,"width":762,"height":13}},{"id":"8d2c4d2c-163b-44ef-9059-7275c619d640","block_type":"box","text":"extent a Fund uses CFTC Derivatives, it intends to do so below such prescribed levels and will not market","page_number":22,"box":{"x":116,"y":172,"width":734,"height":13}},{"id":"aa55d8f3-fd7e-4ca6-a5b2-4e7b0470497e","block_type":"box","text":"itself as a “commodity pool” or a vehicle for trading such instruments.","page_number":22,"box":{"x":116,"y":187,"width":489,"height":13}},{"id":"bfd9eff2-f73c-40e1-bd59-12ce73d8f3b7","block_type":"box","text":"Due to BlackRock Total Return V.I. Fund’s potential use of CFTC Derivatives above the prescribed levels,","page_number":22,"box":{"x":116,"y":211,"width":738,"height":12}},{"id":"276c601d-dc24-414a-b4ce-a8befcbc20d3","block_type":"box","text":"however, BlackRock Total Return V.I. Fund will be considered a “commodity pool” under the Commodity","page_number":22,"box":{"x":116,"y":226,"width":747,"height":13}},{"id":"ef6fd3fa-b078-4454-a1af-fac202ec37f6","block_type":"box","text":"Exchange Act. Accordingly, BlackRock, the adviser of BlackRock Total Return V.I. Fund, has registered as a","page_number":22,"box":{"x":116,"y":242,"width":755,"height":12}},{"id":"c8f5dc72-eb2e-4cee-93d6-f1dfdde235fd","block_type":"box","text":"“commodity pool operator” and is subject to CFTC regulation in respect of such Fund.","page_number":22,"box":{"x":117,"y":257,"width":604,"height":13}},{"id":"80754561-b17c-4842-8129-eb19867fabaa","block_type":"box","text":"BlackRock High Yield V.I. Fund may also have investments in “underlying funds” (and such underlying funds","page_number":22,"box":{"x":116,"y":280,"width":757,"height":13}},{"id":"1f4b8f53-0e79-4b32-bb17-1744560ac41f","block_type":"box","text":"themselves may invest in underlying funds) not advised by BlackRock (which for purposes of the no-action","page_number":22,"box":{"x":116,"y":296,"width":732,"height":13}},{"id":"df2798ac-7e2d-43e4-ad2c-aa84a3cc950d","block_type":"box","text":"letter referenced below may include certain securitized vehicles, mortgage real estate investment trusts and/or","page_number":22,"box":{"x":116,"y":311,"width":745,"height":13}},{"id":"7d981a0a-972e-4149-acc0-24ceefd0f8dd","block_type":"box","text":"investment companies that may invest in CFTC Derivatives), and therefore may be viewed by the CFTC as","page_number":22,"box":{"x":116,"y":327,"width":731,"height":13}},{"id":"a3f3a6e7-339c-4ea0-8af3-9b9f958f8b29","block_type":"box","text":"commodity pools. BlackRock has no transparency into the holdings of these underlying funds because they are","page_number":22,"box":{"x":116,"y":342,"width":759,"height":13}},{"id":"f7335551-8ab6-494c-b85e-4cc30cb5d697","block_type":"box","text":"not advised by BlackRock. To address this issue of lack of transparency, the CFTC staff issued a no-action","page_number":22,"box":{"x":116,"y":358,"width":730,"height":13}},{"id":"a8653d66-b7de-4390-bab1-6a606ad214a8","block_type":"box","text":"letter on November 29, 2012 permitting the adviser of a fund that invests in such underlying funds and that","page_number":22,"box":{"x":116,"y":373,"width":739,"height":13}},{"id":"832d278e-3f3a-45a4-80b7-3ef4564fc22d","block_type":"box","text":"would otherwise have filed a claim of exclusion pursuant to Rule 4.5 to delay registration as a “commodity","page_number":22,"box":{"x":116,"y":389,"width":736,"height":13}},{"id":"76cfb163-e282-4293-b1e4-73ca2e1f1610","block_type":"box","text":"pool operator” until six months from the date on which the CFTC issues additional guidance on the treatment","page_number":22,"box":{"x":116,"y":404,"width":758,"height":13}},{"id":"7741692c-207e-4f52-95af-f3d4c6a1f38e","block_type":"box","text":"of CFTC Derivatives held by underlying funds. BlackRock, the adviser of BlackRock High Yield V.I. Fund, has","page_number":22,"box":{"x":116,"y":420,"width":761,"height":13}},{"id":"cbb9ab58-2816-4eb3-9ed9-96129c6c1113","block_type":"box","text":"filed a claim with the CFTC for the Fund to rely on this no-action relief. Accordingly, BlackRock is not subject","page_number":22,"box":{"x":116,"y":435,"width":758,"height":13}},{"id":"d7af3416-92dd-4b23-977f-6e7d315602cf","block_type":"box","text":"to registration or regulation as a “commodity pool operator” under the Commodity Exchange Act in respect of","page_number":22,"box":{"x":116,"y":451,"width":765,"height":13}},{"id":"00646387-1023-4e75-b0ed-809362fad44e","block_type":"box","text":"the Fund.","page_number":22,"box":{"x":116,"y":466,"width":64,"height":10}},{"id":"9ed3f7a2-d067-43ca-851a-ff1b3d5ef0bd","block_type":"box","text":"II. Investment Restrictions","page_number":22,"box":{"x":116,"y":495,"width":237,"height":10}},{"id":"607dd3cf-6943-4a2f-9f75-3091f28e5b74","block_type":"box","text":"The Company has adopted the following fundamental and non-fundamental restrictions and policies relating","page_number":22,"box":{"x":116,"y":521,"width":757,"height":12}},{"id":"68e76f2c-f68a-4ede-9594-b91cd1b28423","block_type":"box","text":"to the investment of the assets of the Funds and their activities. The fundamental policies set forth below may","page_number":22,"box":{"x":116,"y":536,"width":758,"height":13}},{"id":"8bbc20d1-9ad4-4e14-90ea-bd7df6ef56bb","block_type":"box","text":"not be changed without the approval of the holders of a majority of the outstanding voting shares of each","page_number":22,"box":{"x":116,"y":552,"width":732,"height":12}},{"id":"5f8f704d-8ee5-4391-adec-df5713329faf","block_type":"box","text":"Fund affected (which for this purpose and under the Investment Company Act means the lesser of (i) 67% of","page_number":22,"box":{"x":116,"y":567,"width":756,"height":13}},{"id":"7f8c7a1a-5e18-478f-a618-830b49f788b4","block_type":"box","text":"the shares present at a meeting at which more than 50% of the outstanding shares of the affected Fund are","page_number":22,"box":{"x":116,"y":583,"width":740,"height":12}},{"id":"9fc9f883-d22d-4099-8371-293e43ca76f5","block_type":"box","text":"represented or (ii) more than 50% of the outstanding shares of the affected Fund). The investment objective of","page_number":22,"box":{"x":116,"y":598,"width":766,"height":13}},{"id":"5408934b-292e-4698-b122-2ac2a72389e5","block_type":"box","text":"each Fund is fundamental, and as such may not be changed without the approval of the holders of a majority","page_number":22,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"fa85548b-98c8-4f2a-ade6-b3874a4a038b","block_type":"box","text":"of the outstanding shares of each such Fund.","page_number":22,"box":{"x":116,"y":629,"width":308,"height":13}},{"id":"e083de66-f107-4535-aaa7-cd319b6085c3","block_type":"box","text":"Restrictions Applicable to the BlackRock High Yield V.I. Fund","page_number":22,"box":{"x":136,"y":658,"width":458,"height":12}},{"id":"b184df01-da48-416e-9e72-d6e3fe1f045f","block_type":"box","text":"Under the Fund’s fundamental investment restrictions","page_number":22,"box":{"x":116,"y":683,"width":372,"height":10}},{"id":"b7c79fc7-897e-40dc-9aff-11817406ca1c","block_type":"box","text":", the Fund (unless noted otherwise below) may not:","page_number":22,"box":{"x":490,"y":683,"width":354,"height":13}},{"id":"9e634b24-02d1-457b-b1a4-46cfda9ad0ab","block_type":"box","text":"1. Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":22,"box":{"x":117,"y":714,"width":704,"height":13}},{"id":"52c86e91-2211-4f4b-9298-736d1834e384","block_type":"box","text":"Investment Company Act.","page_number":22,"box":{"x":116,"y":730,"width":181,"height":13}},{"id":"23527de8-79d7-4cfb-a3ef-873431edbbe4","block_type":"box","text":"2. Invest more than 25% of its assets, taken at market value, in the securities of issuers in any particular","page_number":22,"box":{"x":116,"y":753,"width":719,"height":13}},{"id":"d19c7b7b-4f6f-414b-8070-57ac26fa6688","block_type":"box","text":"industry (excluding the U.S. Government and its agencies and instrumentalities).","page_number":22,"box":{"x":116,"y":769,"width":555,"height":13}},{"id":"db6b65d0-b32a-4767-b4e9-266b96e623ba","block_type":"box","text":"3. Make investments for the purpose of exercising control or management.","page_number":22,"box":{"x":117,"y":792,"width":517,"height":13}},{"id":"c78ae0b2-2283-446d-b792-b226d1cef96c","block_type":"box","text":"4. Purchase or sell real estate, except that the Fund may invest in securities directly or indirectly secured by","page_number":22,"box":{"x":116,"y":815,"width":738,"height":13}},{"id":"28d542de-cc52-4c10-8aa0-9457da0330ec","block_type":"box","text":"real estate or interests therein or issued by companies which invest in real estate or interests therein.","page_number":22,"box":{"x":116,"y":831,"width":688,"height":13}},{"id":"391b5a53-42f3-44cb-8e24-f13662e6403c","block_type":"box","text":"5. Make loans to other persons, except that the acquisition of bonds, debentures or other corporate debt","page_number":22,"box":{"x":116,"y":854,"width":724,"height":13}},{"id":"c9507e50-63be-4e95-acb8-5f7727d24715","block_type":"box","text":"securities and investment in government obligations, commercial paper, pass-through instruments, certificates","page_number":22,"box":{"x":116,"y":869,"width":760,"height":13}},{"id":"e0c3a066-7d16-4f0e-80ee-f85e40d274a2","block_type":"box","text":"I-6","page_number":22,"box":{"x":490,"y":917,"width":19,"height":9}},{"id":"3912d81b-a34f-4b5f-a581-dead2c5e8a27","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":22,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"258d14d1-7228-479c-9563-78a54cd4e7cb","block_type":"box","text":"of deposit, bankers acceptances, repurchase agreements","page_number":23,"box":{"x":116,"y":79,"width":384,"height":13}},{"id":"a740cc8e-9c5b-4cb9-9845-f364768dcb8c","block_type":"box","text":"or any similar instruments shall not be deemed to be","page_number":23,"box":{"x":505,"y":79,"width":363,"height":13}},{"id":"6ab2c20f-5432-4adb-af28-3abdb81c5209","block_type":"box","text":"the making of a loan, and except further that the Fund","page_number":23,"box":{"x":116,"y":94,"width":379,"height":13}},{"id":"4a1e0b45-3484-422d-afb8-13137bde6267","block_type":"box","text":"may lend its portfolio securities, provided that the","page_number":23,"box":{"x":499,"y":94,"width":346,"height":13}},{"id":"9b8feb7e-551b-494a-a962-55ae064cc519","block_type":"box","text":"lending of portfolio securities may be made only in accordance with applicable law and the guidelines set","page_number":23,"box":{"x":116,"y":110,"width":728,"height":13}},{"id":"e7ddd3af-9b68-48c8-a372-9bc14667a818","block_type":"box","text":"forth in the Prospectus and Statement of Additional Information, as they may be amended from time to time.","page_number":23,"box":{"x":116,"y":125,"width":756,"height":13}},{"id":"6b00d15c-d5c4-42ea-9f40-ab4515bf5ab8","block_type":"box","text":"6. Issue senior securities to the extent such","page_number":23,"box":{"x":117,"y":149,"width":292,"height":10}},{"id":"b6c7f9b6-df25-4207-9861-e68069a57951","block_type":"box","text":"issuance would violate applicable law.","page_number":23,"box":{"x":414,"y":149,"width":264,"height":12}},{"id":"d9a97f1f-4419-4e13-9fed-32d8a98fe4c6","block_type":"box","text":"7. Borrow money, except that (i) the Fund may borrow from banks (as defined in the Investment Company","page_number":23,"box":{"x":117,"y":172,"width":744,"height":13}},{"id":"abdf0465-6690-49be-bb6d-4f1dd0a671c2","block_type":"box","text":"Act) in amounts up to 33","page_number":23,"box":{"x":116,"y":188,"width":174,"height":12}},{"id":"bcd8771d-33bc-4546-91e3-d0d9b3dd3114","block_type":"box","text":"1","page_number":23,"box":{"x":292,"y":188,"width":4,"height":6}},{"id":"818f78b9-2332-403c-a918-d84eb0c70e89","block_type":"box","text":"/","page_number":23,"box":{"x":297,"y":188,"width":5,"height":9}},{"id":"cb095bf4-c34e-4b57-b963-e627da76f10f","block_type":"box","text":"3","page_number":23,"box":{"x":302,"y":194,"width":4,"height":6}},{"id":"0c944f44-781c-4380-b9ab-6a988a8b4bf7","block_type":"box","text":"% of its total assets (including the amount borrowed), (ii) the Fund may borrow","page_number":23,"box":{"x":309,"y":187,"width":555,"height":13}},{"id":"20b743ce-d995-4b02-8add-1021da8d9964","block_type":"box","text":"up to an additional 5% of its total assets for temporary purposes, (iii) the Fund may obtain such short-term","page_number":23,"box":{"x":116,"y":203,"width":745,"height":13}},{"id":"91a29ba2-979e-4d15-88c8-2aaa8da18494","block_type":"box","text":"credit as may be necessary for the clearance of purchases and sales of portfolio securities and (iv) the Fund","page_number":23,"box":{"x":116,"y":218,"width":736,"height":13}},{"id":"37e93e10-6739-4b75-bba5-31ae55b53ea7","block_type":"box","text":"may purchase securities on margin to the extent permitted by applicable law. The Fund may not pledge its","page_number":23,"box":{"x":116,"y":234,"width":736,"height":13}},{"id":"1c5bab80-8991-48c7-8d68-a59711c23acd","block_type":"box","text":"assets other than to secure such borrowings or, to the extent permitted by the Fund’s investment policies as set","page_number":23,"box":{"x":116,"y":249,"width":765,"height":13}},{"id":"fae6af10-5d91-46c8-b414-c9e795ca9384","block_type":"box","text":"forth in the Prospectus and Statement of Additional Information, as they may be amended from time to time,","page_number":23,"box":{"x":116,"y":265,"width":756,"height":13}},{"id":"a4f966c6-1cf4-4646-8b78-e34c45c4c4ce","block_type":"box","text":"in connection with hedging transactions, short sales, wh","page_number":23,"box":{"x":116,"y":280,"width":388,"height":13}},{"id":"3ca2ec57-3d0f-4c17-bbae-48ac25b1503c","block_type":"box","text":"en-issued and forward commitment transactions and","page_number":23,"box":{"x":505,"y":280,"width":366,"height":10}},{"id":"be31249c-f0d9-4fc7-bc8f-1956f2e9fbe5","block_type":"box","text":"similar investment strategies.","page_number":23,"box":{"x":116,"y":296,"width":199,"height":13}},{"id":"f391aee2-9378-4b54-810b-85421e525c61","block_type":"box","text":"8. Underwrite securities of other issuers except insofar as the Fund technically may be deemed an underwriter","page_number":23,"box":{"x":117,"y":319,"width":758,"height":13}},{"id":"2ab50dc3-8507-4fce-82ad-f3881e1e2543","block_type":"box","text":"under the Securities Act in selling portfolio securities.","page_number":23,"box":{"x":116,"y":335,"width":367,"height":12}},{"id":"b5dae565-65c3-4a6e-8578-83af73361942","block_type":"box","text":"9. Purchase or sell commodities or contracts on commodities, except to the extent the Fund may do so in","page_number":23,"box":{"x":116,"y":358,"width":727,"height":13}},{"id":"59064ae5-cb7c-4279-a8b0-c31d5df7349b","block_type":"box","text":"accordance with applicable law and the Prospectus and Statement of Additional Information, as they may be","page_number":23,"box":{"x":116,"y":373,"width":754,"height":13}},{"id":"7e4e6dd3-f202-46a7-9b97-d62f12d9bd23","block_type":"box","text":"amended from time to time, and without registering as a commodity pool operator under the Commodity","page_number":23,"box":{"x":116,"y":389,"width":734,"height":13}},{"id":"394825ce-046e-48e3-8cad-dbfdfc72243a","block_type":"box","text":"Exchange Act.","page_number":23,"box":{"x":116,"y":404,"width":99,"height":13}},{"id":"431b9d7a-cae2-422e-a04e-043e6a144b69","block_type":"box","text":"Under the Fund’s non-fundamental investment restric","page_number":23,"box":{"x":116,"y":428,"width":371,"height":10}},{"id":"b01a0a9b-6882-41ce-ae5e-85e6d2753e3e","block_type":"box","text":"tions, which may be changed by the Board of Directors","page_number":23,"box":{"x":487,"y":428,"width":383,"height":12}},{"id":"8b3536fd-2011-47a1-bf7d-fbf1c8d5b5ba","block_type":"box","text":"without shareholder approval, the Fund (","page_number":23,"box":{"x":116,"y":443,"width":286,"height":13}},{"id":"95922996-cd2f-4a45-85ee-cd3c75ba7c6d","block_type":"box","text":"unless noted otherwise below) may not:","page_number":23,"box":{"x":403,"y":443,"width":275,"height":13}},{"id":"0a55f8bb-e2bc-4380-8ebe-a1630c26ab89","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the","page_number":23,"box":{"x":184,"y":466,"width":627,"height":13}},{"id":"a17b0fe1-0475-4ae8-b9ae-fcb7c22b8b7f","block_type":"box","text":"Investment Company Act. As a matter of policy, however, the Fund will not purchase shares of any","page_number":23,"box":{"x":150,"y":482,"width":690,"height":13}},{"id":"fc50ae40-cdf3-4a87-b2e2-386b33ef79b1","block_type":"box","text":"registered open-end investment company or registered unit investment trust, in reliance on","page_number":23,"box":{"x":150,"y":497,"width":625,"height":13}},{"id":"dbe9926b-a6a3-4950-a3f4-d0c37a65f1bc","block_type":"box","text":"Section 12(d)(1)(F) or (G) (the “fund of funds” provisions) of the Investment Company Act, at any time","page_number":23,"box":{"x":150,"y":513,"width":720,"height":13}},{"id":"f16b6be1-2501-4215-aedc-8f793f8e91ff","block_type":"box","text":"the Fund has knowledge that its shares are purchased by another investment company investor in reliance","page_number":23,"box":{"x":150,"y":528,"width":732,"height":13}},{"id":"db05682e-724c-444f-939e-95fca65134e4","block_type":"box","text":"on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":23,"box":{"x":150,"y":544,"width":404,"height":13}},{"id":"6e9b5143-d5b8-4992-a39f-39cb1978528e","block_type":"box","text":"b. Make short sales of securities or maintain a short position, except to the extent permitted by the","page_number":23,"box":{"x":184,"y":567,"width":683,"height":13}},{"id":"5e8c6325-a10c-4810-9021-4b48a92a98cc","block_type":"box","text":"Fund’s Prospectus and Statement of Additional Information, as amended from time to time, and","page_number":23,"box":{"x":150,"y":583,"width":667,"height":12}},{"id":"1dfcc7f4-e39d-45c4-8636-91cc3bffbdb2","block_type":"box","text":"applicable law.","page_number":23,"box":{"x":150,"y":598,"width":103,"height":13}},{"id":"3bdb4fad-94db-4038-8c94-0bf003951970","block_type":"box","text":"With respect to the Fund’s industry classifications, the Fund currently utilizes any one or more of the industry","page_number":23,"box":{"x":116,"y":621,"width":759,"height":13}},{"id":"f9368e4c-3e79-44f8-9344-0a6bac68086a","block_type":"box","text":"sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as","page_number":23,"box":{"x":116,"y":637,"width":750,"height":13}},{"id":"2db11436-be58-4ca0-8335-d689d69a0d4c","block_type":"box","text":"defined by Fund management. The policy also will be interpreted to give broad authority to the Fund as to","page_number":23,"box":{"x":116,"y":652,"width":739,"height":13}},{"id":"e9bed83b-b5a8-469b-82b5-5a756e636c8f","block_type":"box","text":"how to classify issuers within or among industries.","page_number":23,"box":{"x":116,"y":668,"width":349,"height":13}},{"id":"c030fcf4-a29e-431b-88e0-67cccd714df5","block_type":"box","text":"Except with respect to restriction 7, if a percentage restriction on the investment or use of assets set forth","page_number":23,"box":{"x":116,"y":691,"width":725,"height":13}},{"id":"4e4c03f4-be31-4d7f-827d-65dca50633ca","block_type":"box","text":"above is adhered to at the time a transaction is effected","page_number":23,"box":{"x":116,"y":707,"width":381,"height":10}},{"id":"94fc19f1-35c3-4df6-91fb-35676b2fc6b8","block_type":"box","text":", later changes in percentages resulting from changing","page_number":23,"box":{"x":498,"y":707,"width":370,"height":12}},{"id":"3c90da2f-368f-428a-927a-b9826be8c00d","block_type":"box","text":"values will not be considered a violation.","page_number":23,"box":{"x":116,"y":722,"width":282,"height":10}},{"id":"691b4848-0cd8-4cd7-9c92-6f91d07e2814","block_type":"box","text":"The Fund is classified as diversified under the Investment Company Act. This means that the Fund may not","page_number":23,"box":{"x":116,"y":745,"width":744,"height":13}},{"id":"20b5eb0f-da7c-4295-92db-2deb6b952365","block_type":"box","text":"purchase securities of an issuer (other than (i) obligati","page_number":23,"box":{"x":116,"y":761,"width":371,"height":13}},{"id":"ace69ea8-ec43-40cd-92b1-a24b36f60ae4","block_type":"box","text":"ons issued or guaranteed by the U.S. government, its","page_number":23,"box":{"x":488,"y":761,"width":363,"height":13}},{"id":"7ec988c5-9a9f-420c-a1d1-90796e971333","block_type":"box","text":"agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to 75% of its","page_number":23,"box":{"x":116,"y":776,"width":744,"height":13}},{"id":"471621c4-c99d-4197-b838-6ab927696b3d","block_type":"box","text":"total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or (b) the","page_number":23,"box":{"x":116,"y":792,"width":763,"height":12}},{"id":"b12033c9-2597-461e-b25b-eca53638be62","block_type":"box","text":"Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the","page_number":23,"box":{"x":116,"y":807,"width":717,"height":13}},{"id":"cc965c55-d620-48fa-84c9-373e18e60bfc","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":23,"box":{"x":116,"y":823,"width":728,"height":13}},{"id":"464e06c5-d230-4b16-9f5f-1f5cb639ba7d","block_type":"box","text":"Investment Company Act, the Fund cannot change its classification from diversified to non-diversified without","page_number":23,"box":{"x":116,"y":838,"width":766,"height":13}},{"id":"c3955236-4f3d-42fa-b358-187451b83437","block_type":"box","text":"shareholder approval.","page_number":23,"box":{"x":116,"y":854,"width":151,"height":13}},{"id":"19ecbee3-16e9-41e7-9cbd-d0f8c5b4af2f","block_type":"box","text":"I-7","page_number":23,"box":{"x":490,"y":917,"width":20,"height":9}},{"id":"522bc78b-833f-4a29-8622-c941cfc4e980","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":23,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"0eee0042-8b39-45f2-9b7f-0e83eb7888d6","block_type":"box","text":"Restrictions Applicable to the BlackRock Total Return V.I. Fund","page_number":24,"box":{"x":136,"y":79,"width":473,"height":13}},{"id":"f03730af-d54a-4e67-9703-a9187810fad6","block_type":"box","text":"Under the Fund’s fundamental investme","page_number":24,"box":{"x":116,"y":105,"width":277,"height":10}},{"id":"c019074c-4db2-40aa-a9a1-4ca3cc6a8e97","block_type":"box","text":"nt restrictions, the Fund may not:","page_number":24,"box":{"x":394,"y":105,"width":231,"height":12}},{"id":"49f46222-496f-4578-958b-d913b83d9687","block_type":"box","text":"1. Concentrate its investments in a particular industry, as that term is used in the Investment Company Act.","page_number":24,"box":{"x":117,"y":136,"width":744,"height":12}},{"id":"2663bef5-4ebd-44f9-8150-b036efcb0621","block_type":"box","text":"2. Borrow money, except as permitted under the Investment Company Act.","page_number":24,"box":{"x":116,"y":159,"width":522,"height":13}},{"id":"779e7f3b-85dd-4781-a4c5-6cc66d84035c","block_type":"box","text":"3. Issue senior securities to the extent such issuance would violate the Investment Company Act.","page_number":24,"box":{"x":117,"y":182,"width":664,"height":13}},{"id":"a09c7011-055e-4377-97ed-135fba2ba3f0","block_type":"box","text":"4. Purchase or hold real estate, except the Fund may purchase and hold securities or other instruments that are","page_number":24,"box":{"x":116,"y":205,"width":767,"height":13}},{"id":"18bddd8a-f8b4-45cd-b825-2585752b34a9","block_type":"box","text":"secured by, or linked to, real estate or interests therein, securities of real estate investment trusts, mortgage","page_number":24,"box":{"x":116,"y":221,"width":741,"height":13}},{"id":"1a63ca21-b8d3-46ad-8135-b83aed2f3aa1","block_type":"box","text":"related securities and securities of issuers engaged in the real estate business, and the Fund may purchase and","page_number":24,"box":{"x":116,"y":236,"width":753,"height":13}},{"id":"341c24cc-d906-405a-8a6f-32e0f310d304","block_type":"box","text":"hold real estate as a result of the ownership of securities or other instruments.","page_number":24,"box":{"x":116,"y":252,"width":537,"height":13}},{"id":"ec153da3-5e4f-4f51-a558-8cd2278a165c","block_type":"box","text":"5. Underwrite securities issued by others, except to the","page_number":24,"box":{"x":116,"y":275,"width":377,"height":13}},{"id":"485d2144-10ad-4d9f-95dd-4291f76d76f5","block_type":"box","text":"extent that the sale of portfolio securities by the Fund","page_number":24,"box":{"x":498,"y":275,"width":371,"height":13}},{"id":"015f2627-e316-4f7e-916a-4c2eda93a2c4","block_type":"box","text":"may be deemed to be an underwriting or as otherwise permitted by applicable law.","page_number":24,"box":{"x":116,"y":291,"width":574,"height":12}},{"id":"cae7e6f5-66b7-4c73-a705-210216c60c38","block_type":"box","text":"6. Purchase or sell commodities or commodity contracts, except as permitted by the Investment Company","page_number":24,"box":{"x":117,"y":314,"width":733,"height":13}},{"id":"16113705-41dc-43f7-a128-78b759783b3c","block_type":"box","text":"Act.","page_number":24,"box":{"x":116,"y":330,"width":27,"height":9}},{"id":"70292915-a800-47b7-9b53-69cd912a0ec8","block_type":"box","text":"7. Make loans to the extent prohibited by the Investment Company Act.","page_number":24,"box":{"x":117,"y":353,"width":500,"height":12}},{"id":"f60b2cff-482a-49b7-9151-4146acd8e528","block_type":"box","text":"8. Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":24,"box":{"x":117,"y":376,"width":704,"height":13}},{"id":"f8f3c6c3-69b7-46bb-b0c0-bd82bc166b19","block_type":"box","text":"Investment Company Act.","page_number":24,"box":{"x":116,"y":392,"width":181,"height":12}},{"id":"7462bf39-e2dd-401e-bbae-1d9d21dc258a","block_type":"box","text":"Notations Regarding the BlackRock Total Return V.I. Fund’s Fundamental Investment Restrictions","page_number":24,"box":{"x":116,"y":420,"width":725,"height":13}},{"id":"2d67a27b-77cb-48a6-94ab-913a4e669623","block_type":"box","text":"The following notations are not considered to be part of the Fund’s fundamental investment restrictions and","page_number":24,"box":{"x":116,"y":446,"width":750,"height":13}},{"id":"c05fe091-7870-4715-85e6-439b9c2af704","block_type":"box","text":"are subject to change without shareholder approval.","page_number":24,"box":{"x":116,"y":461,"width":360,"height":13}},{"id":"38e3c69b-7a93-4563-9c5f-415781863515","block_type":"box","text":"With respect to the fundamental policy relating to concentration set forth in (1) above, the Investment","page_number":24,"box":{"x":116,"y":484,"width":707,"height":13}},{"id":"98ebc939-9f75-44bd-b991-470ab359544f","block_type":"box","text":"Company Act does not define what constitutes “concentration” in an industry. The Commission staff has","page_number":24,"box":{"x":117,"y":500,"width":732,"height":13}},{"id":"632a9940-60e5-49b8-8a4e-d553608018dc","block_type":"box","text":"taken the position that investment of 25% or more of a fund’s total assets in one or more issuers conducting","page_number":24,"box":{"x":116,"y":515,"width":751,"height":13}},{"id":"742982b3-281c-47bd-a519-6806784401c9","block_type":"box","text":"their principal activities in the same industry or group of industries constitutes concentration. It is possible","page_number":24,"box":{"x":116,"y":531,"width":735,"height":13}},{"id":"4f61d428-5911-48ef-ab35-349a9c34f4c7","block_type":"box","text":"that interpretations of concentration could change in the future. The policy in (1) above will be interpreted to","page_number":24,"box":{"x":116,"y":546,"width":757,"height":13}},{"id":"de42f647-4e60-466f-9353-f054000ee454","block_type":"box","text":"refer to concentration as that term may be interpreted from time to time. The policy also will be interpreted to","page_number":24,"box":{"x":116,"y":562,"width":764,"height":13}},{"id":"d31bad15-fedf-4e13-a11e-2a964c86f2cc","block_type":"box","text":"permit investment without limit in the following: secu","page_number":24,"box":{"x":116,"y":577,"width":373,"height":13}},{"id":"2cbf7a41-9544-4e9c-b65e-7670ba6e14d8","block_type":"box","text":"rities of the U.S. government and its agencies or","page_number":24,"box":{"x":490,"y":577,"width":329,"height":13}},{"id":"e20b5296-1814-47f1-b1d1-b9a2f8ceaa54","block_type":"box","text":"instrumentalities; securities of state, territory, possession or municipal governments and their authorities,","page_number":24,"box":{"x":116,"y":593,"width":725,"height":13}},{"id":"824ad32f-1539-416e-b996-49416d696a60","block_type":"box","text":"agencies, instrumentalities or political subdivisions; and repurchase agreements collateralized by any such","page_number":24,"box":{"x":116,"y":608,"width":730,"height":13}},{"id":"7396af98-2fac-4787-aedf-d6523126d71a","block_type":"box","text":"obligations. Accordingly, issuers of the foregoing securities will not be considered to be members of any","page_number":24,"box":{"x":116,"y":624,"width":719,"height":13}},{"id":"3f513970-5d6d-41a2-9bf6-e93d01cf8584","block_type":"box","text":"industry. There also will be no limit on investment in issuers domiciled in a single jurisdiction or country.","page_number":24,"box":{"x":116,"y":640,"width":728,"height":12}},{"id":"92153df0-c5d4-481b-aba1-ed53c201aa51","block_type":"box","text":"Finance companies will be considered to be in the industries of their parents if their activities are primarily","page_number":24,"box":{"x":116,"y":655,"width":736,"height":13}},{"id":"d035f87c-3a35-4259-9356-2db713890bd2","block_type":"box","text":"related to financing the activities of the parents. Each foreign government will be considered to be a member","page_number":24,"box":{"x":116,"y":671,"width":751,"height":12}},{"id":"d71a226e-4714-4bff-92dd-d3dac821593b","block_type":"box","text":"of a separate industry. With respect to the Fund’s industry classifications, the Fund currently utilizes any one","page_number":24,"box":{"x":116,"y":686,"width":752,"height":13}},{"id":"6409e4d8-2f2b-4563-9f27-85fca96fac1a","block_type":"box","text":"or more of the industry sub-classifications used by one or more widely recognized market indexes or rating","page_number":24,"box":{"x":116,"y":702,"width":741,"height":12}},{"id":"22ee4fef-078b-4582-927f-3323b285491e","block_type":"box","text":"group indexes, and/or as defined by Fund management. The policy also will be interpreted to give broad","page_number":24,"box":{"x":116,"y":717,"width":723,"height":13}},{"id":"2fd5f205-a552-4b80-8409-34cdebef71e1","block_type":"box","text":"authority to the Fund as to how to classify issuers within or among industries.","page_number":24,"box":{"x":116,"y":733,"width":540,"height":12}},{"id":"24da18fe-ba43-4d42-ad41-850fa3bc9647","block_type":"box","text":"With respect to the fundamental policy relating to borrowing money set forth above, the Investment","page_number":24,"box":{"x":116,"y":756,"width":727,"height":13}},{"id":"f0c6aa95-64b9-4035-8871-232a8375f6d3","block_type":"box","text":"Company Act permits the Fund to borrow money in amounts of up to one-third of the Fund’s total assets","page_number":24,"box":{"x":117,"y":771,"width":765,"height":13}},{"id":"a0b0bcfb-c471-4bdd-a6bf-a5a00a894590","block_type":"box","text":"from banks for any purpose, and to borrow up to 5% of the Fund’s total assets from banks or other","page_number":24,"box":{"x":116,"y":787,"width":728,"height":13}},{"id":"7867f030-064e-4431-84bf-a5c64d34ebf5","block_type":"box","text":"lenders for temporary purposes. (The Fund’s total assets include the amounts being borrowed.) To limit","page_number":24,"box":{"x":116,"y":802,"width":753,"height":13}},{"id":"6d315887-df73-4fcd-b6c9-506082e9e50a","block_type":"box","text":"the risks attendant to borrowing, the Investment Company Act requires the Fund to maintain at all times","page_number":24,"box":{"x":116,"y":818,"width":762,"height":13}},{"id":"24ffce00-601b-4235-b971-a3069246c108","block_type":"box","text":"an “asset coverage” of at least 300% of the amount of its borrowings. Asset coverage means the ratio","page_number":24,"box":{"x":116,"y":833,"width":739,"height":13}},{"id":"1baf73a8-429c-47ec-990e-3d04d03a1458","block_type":"box","text":"that the value of the Fund’s total assets (including amounts borrowed), minus liabilities other than","page_number":24,"box":{"x":116,"y":849,"width":714,"height":13}},{"id":"040b755b-a124-4c9c-b455-8d8c06efa201","block_type":"box","text":"borrowings, bears to the aggregate amount of all borrowings. Borrowing money to increase portfolio","page_number":24,"box":{"x":116,"y":864,"width":734,"height":13}},{"id":"d83de8ea-29bb-4d73-8109-22de1444645d","block_type":"box","text":"I-8","page_number":24,"box":{"x":490,"y":917,"width":18,"height":9}},{"id":"28d5e5b6-e611-46f5-8693-7d6bcb7e130d","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":24,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"41697d88-f733-4771-83d3-f4fe5485a0ab","block_type":"box","text":"holdings is known as “leveraging.” Certain trading practices and investments, such as reverse repurchase","page_number":25,"box":{"x":116,"y":79,"width":761,"height":13}},{"id":"5f33fd02-88e7-4203-bcee-3e2dc133df64","block_type":"box","text":"agreements, may be considered to be borrowings or involve leverage and thus are subject to the","page_number":25,"box":{"x":116,"y":94,"width":692,"height":13}},{"id":"465c0a20-c4d4-4b4e-a48e-d4dd020b0dd4","block_type":"box","text":"Investment Company Act restrictions. In accordance with Rule 18f-4 under the Investment Company","page_number":25,"box":{"x":116,"y":110,"width":734,"height":13}},{"id":"cea4c2dc-a3e7-463e-b70c-f58a40167b80","block_type":"box","text":"Act, when the Fund engages in reverse repurchase agreements and similar financing transactions, the","page_number":25,"box":{"x":116,"y":125,"width":730,"height":13}},{"id":"609fedbb-b87f-4b3d-ae53-58ae1fe9e5c6","block_type":"box","text":"Fund may either (i) maintain asset coverage of at least 300% with respect to such transactions and any","page_number":25,"box":{"x":116,"y":141,"width":747,"height":13}},{"id":"fbf8c133-cfdd-4e52-b0db-8a9a8a5fa7dd","block_type":"box","text":"other borrowings in the aggregate, or (ii) treat such transactions as “derivatives transactions” and","page_number":25,"box":{"x":116,"y":156,"width":711,"height":13}},{"id":"195e0b90-4d6e-40d0-ad3c-dd2cf54fd3cd","block_type":"box","text":"comply with Rule 18f-4 with respect to such transactions. Short-term credits necessary for the settlement","page_number":25,"box":{"x":116,"y":172,"width":761,"height":13}},{"id":"b924d208-6f7e-4fa1-9c06-f419a82045de","block_type":"box","text":"of securities transactions and arrangements with respect to securities lending will not be considered to be","page_number":25,"box":{"x":116,"y":187,"width":761,"height":13}},{"id":"ba19cdae-3901-4d8b-970f-902bb1db4a23","block_type":"box","text":"borrowings under the policy. Practices and investments that may involve leverage but are not considered","page_number":25,"box":{"x":116,"y":203,"width":758,"height":13}},{"id":"3c8f6e22-32d3-4a79-8d45-40e5478d6777","block_type":"box","text":"to be borrowings are not subject to the policy.","page_number":25,"box":{"x":116,"y":218,"width":335,"height":13}},{"id":"579f1e96-cff7-4987-9228-3660282cda0d","block_type":"box","text":"With respect to the fundamental policy relating to underwriting set forth in (5) above, the Investment Company","page_number":25,"box":{"x":116,"y":242,"width":757,"height":12}},{"id":"ca0939a6-db0c-4ce6-9535-a61bb945a692","block_type":"box","text":"Act does not prohibit the Fund from engaging in the underwriting business or from underwriting the securities of","page_number":25,"box":{"x":116,"y":257,"width":766,"height":13}},{"id":"5358dab1-09cc-4519-b596-6a115edd7f9c","block_type":"box","text":"other issuers; in fact, in the case of diversified funds, the Investment Company Act permits the Fund to have","page_number":25,"box":{"x":116,"y":273,"width":729,"height":12}},{"id":"253b5c76-9a6d-4098-b807-2dea47374529","block_type":"box","text":"underwriting commitments of up to 25% of its assets under certain circumstances. Those circumstances","page_number":25,"box":{"x":116,"y":288,"width":703,"height":13}},{"id":"4ba7e570-3cdf-402d-bde7-52700d084f9b","block_type":"box","text":"currently are that the amount of the Fund’s underwriting commitments, when added to the value of the Fund’s","page_number":25,"box":{"x":116,"y":304,"width":750,"height":12}},{"id":"173524a5-c1f0-4aaf-a759-a8ebbada3e58","block_type":"box","text":"investments in issuers where the Fund owns more than 10% of the outstanding voting securities of those issuers,","page_number":25,"box":{"x":116,"y":319,"width":760,"height":13}},{"id":"9773e2dc-3267-41ff-a305-49572a7c2804","block_type":"box","text":"cannot exceed the 25% cap. A fund engaging in transactions involving the acquisition or disposition of portfolio","page_number":25,"box":{"x":116,"y":335,"width":762,"height":12}},{"id":"72e4e324-1de7-4dca-8ed4-38e7cde9f0af","block_type":"box","text":"securities may be considered to be an underwriter under the Securities Act of 1933, as amended (the “Securities","page_number":25,"box":{"x":116,"y":350,"width":753,"height":13}},{"id":"7e3dc215-eb19-4ede-89a1-140a2c14fa48","block_type":"box","text":"Act”). Although it is not believed that the application of the Securities Act provisions described above would","page_number":25,"box":{"x":116,"y":366,"width":734,"height":12}},{"id":"84a8e7d8-e1ed-4411-a896-92d5cb79c7a2","block_type":"box","text":"cause the Fund to be engaged in the business of underwriting, the policy in (5) above will be interpreted not to","page_number":25,"box":{"x":116,"y":381,"width":745,"height":13}},{"id":"493859ff-a3aa-414d-97e9-8f7430aef4a9","block_type":"box","text":"prevent the Fund from engaging in transactions involving the acquisition or disposition of portfolio securities,","page_number":25,"box":{"x":116,"y":397,"width":741,"height":12}},{"id":"51e2c576-cc6e-4296-9156-580e01edc29b","block_type":"box","text":"regardless of whether the Fund may be considered to be an underwriter under the Securities Act or is otherwise","page_number":25,"box":{"x":116,"y":412,"width":752,"height":13}},{"id":"fd52de40-8a6f-4072-a82f-1c90673afb98","block_type":"box","text":"engaged in the underwriting business to the extent permitted by applicable law.","page_number":25,"box":{"x":116,"y":428,"width":536,"height":12}},{"id":"05f197fd-42d9-4070-85e8-e214dc80355f","block_type":"box","text":"With respect to the fundamental policy relating to lending set forth in (7) above, the Investment Company Act","page_number":25,"box":{"x":116,"y":451,"width":764,"height":13}},{"id":"0e7f12b2-fb31-422e-af59-009dab5846e5","block_type":"box","text":"does not prohibit the Fund from making loans (includi","page_number":25,"box":{"x":116,"y":466,"width":379,"height":13}},{"id":"84554d45-9311-47a2-9217-aedeab0ddf1f","block_type":"box","text":"ng lending its securities); however, Commission staff","page_number":25,"box":{"x":495,"y":466,"width":365,"height":13}},{"id":"dd0a0af3-60cf-4c8b-8df8-ad5c270f4bca","block_type":"box","text":"interpretations currently prohibit funds from lending more than one-third of their total assets (including","page_number":25,"box":{"x":116,"y":482,"width":720,"height":13}},{"id":"bf0b5d54-37b2-4fc1-9578-9c076fa76098","block_type":"box","text":"lending its securities), except through the purchase of debt obligations or the use of repurchase agreements. In","page_number":25,"box":{"x":116,"y":497,"width":760,"height":13}},{"id":"2d73f1a2-e49f-40b0-aa97-5d2109092879","block_type":"box","text":"addition, collateral arrangements with respect to options, fo","page_number":25,"box":{"x":116,"y":513,"width":408,"height":13}},{"id":"d1b17067-3dfa-42d3-a0f3-e5e1c9c127ce","block_type":"box","text":"forward currency and futures transactions and other","page_number":25,"box":{"x":524,"y":513,"width":357,"height":13}},{"id":"15320d29-87ed-46c7-9bcb-f0454ab48667","block_type":"box","text":"derivative instruments (as applicable), as well as delays in the settlement of securities transactions, will not be","page_number":25,"box":{"x":116,"y":528,"width":756,"height":13}},{"id":"78d345ba-bb9a-4c5a-b087-591c319a10ea","block_type":"box","text":"considered loans.","page_number":25,"box":{"x":116,"y":544,"width":119,"height":10}},{"id":"93139a76-4bf1-48b8-86b9-cf65b7b7b3ad","block_type":"box","text":"The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":25,"box":{"x":116,"y":567,"width":739,"height":13}},{"id":"44e993ae-cfc2-4b1f-b861-8b24ca6470bf","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":25,"box":{"x":116,"y":583,"width":707,"height":12}},{"id":"42e81761-4dc5-4875-a1e3-f99a3c1f5913","block_type":"box","text":"government, its agencies or instrumentalities and (ii) secu","page_number":25,"box":{"x":116,"y":598,"width":386,"height":13}},{"id":"cc6449b2-6a5b-4dd9-b6b5-f5d2eda2ddd1","block_type":"box","text":"rities of other investment companies) if, with respect to","page_number":25,"box":{"x":502,"y":598,"width":372,"height":13}},{"id":"cd152cd1-2656-4a1b-9e75-a5e94bc377ae","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","page_number":25,"box":{"x":117,"y":614,"width":752,"height":12}},{"id":"e6c7d24b-7a8e-47ff-b509-f356caf5ea08","block_type":"box","text":"or (b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to","page_number":25,"box":{"x":116,"y":629,"width":743,"height":13}},{"id":"738cdaee-3853-49a3-b8c9-24f53d84f437","block_type":"box","text":"the remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. Under the","page_number":25,"box":{"x":116,"y":645,"width":736,"height":12}},{"id":"719d78fe-adb1-4e25-a73a-609602390c2c","block_type":"box","text":"Investment Company Act, the Fund cannot change its classification from diversified to non-diversified without","page_number":25,"box":{"x":116,"y":660,"width":748,"height":13}},{"id":"3e845feb-568f-4771-8be6-718703c6f986","block_type":"box","text":"shareholder approval.","page_number":25,"box":{"x":116,"y":676,"width":147,"height":12}},{"id":"6851fb7e-a8ca-4607-bd33-0f7e8d7b5142","block_type":"box","text":"Under its non-fundamental investment restrictions, w","page_number":25,"box":{"x":116,"y":699,"width":370,"height":12}},{"id":"53f59467-7b09-4b3a-8816-07136ba23e52","block_type":"box","text":"hich may be changed by the Board of Directors without","page_number":25,"box":{"x":486,"y":699,"width":387,"height":13}},{"id":"9aa54b4c-d2f2-42eb-898e-d8002fb0eb98","block_type":"box","text":"shareholder approval, the BlackRock Total Return V.I. Fund may not:","page_number":25,"box":{"x":116,"y":714,"width":488,"height":13}},{"id":"d34fb273-929e-4b4d-9924-bdf589e2af70","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":25,"box":{"x":184,"y":738,"width":690,"height":12}},{"id":"5cdb4323-23d9-4426-8b4c-3bcc570fab49","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":25,"box":{"x":150,"y":753,"width":732,"height":13}},{"id":"bd00f8d8-8e3e-4fc7-950c-b617133ed804","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund","page_number":25,"box":{"x":150,"y":769,"width":726,"height":13}},{"id":"075e7f91-1b89-4fe3-9508-5b38bd7aa647","block_type":"box","text":"of funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares","page_number":25,"box":{"x":150,"y":784,"width":716,"height":13}},{"id":"6a6337d8-3751-4edc-b394-32ffabe39c4c","block_type":"box","text":"are purchased by another investment company investor in reliance on the provisions of subparagraph (G) of","page_number":25,"box":{"x":150,"y":800,"width":732,"height":13}},{"id":"4057932a-ab00-4523-8dd9-d755554163df","block_type":"box","text":"Section 12(d)(1).","page_number":25,"box":{"x":150,"y":815,"width":112,"height":13}},{"id":"737914a8-9633-4bb4-a1f4-30830b5e7a0a","block_type":"box","text":"b. Make short sales of securities or maintain a short position, except to the extent permitted by the","page_number":25,"box":{"x":184,"y":838,"width":683,"height":13}},{"id":"5d93c02b-343b-4def-aee1-a5783fdb53b9","block_type":"box","text":"Fund’s Prospectus and Statement of Additional Information, as amended from time to time, and","page_number":25,"box":{"x":150,"y":854,"width":667,"height":13}},{"id":"832b3755-6309-4efc-9a9e-dc7adb6a7694","block_type":"box","text":"applicable law.","page_number":25,"box":{"x":150,"y":869,"width":103,"height":13}},{"id":"cf3d0b54-df07-4a6f-9783-75b1f1ad76ff","block_type":"box","text":"I-9","page_number":25,"box":{"x":490,"y":917,"width":19,"height":9}},{"id":"804a712a-b3da-4fa9-a84c-d57b2ac4d4cc","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":25,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"315c118f-f6c9-4e13-842c-cafa45029de3","block_type":"box","text":"III. Information on Directors and Officers","page_number":26,"box":{"x":116,"y":79,"width":344,"height":10}},{"id":"7f49c53c-a029-4223-b624-30eee3846e1c","block_type":"box","text":"The Board of Directors (the “Board”) of the Company consists of ten individuals (each a “Director”), eight of","page_number":26,"box":{"x":116,"y":105,"width":745,"height":12}},{"id":"3386b8fb-70fc-457e-9b11-d3570976db42","block_type":"box","text":"whom are not “interested persons” of the Company as defined in the Investment Company Act (the","page_number":26,"box":{"x":116,"y":120,"width":677,"height":13}},{"id":"c004b2bf-f540-4ad3-8ee9-2aa8f8d9b993","block_type":"box","text":"“Independent Directors”). The registered investment companies advised by the Manager or its affiliates (the","page_number":26,"box":{"x":117,"y":136,"width":729,"height":12}},{"id":"e6bdadb5-7fe8-420b-8757-a024c1d66816","block_type":"box","text":"“BlackRock-advised Funds”) are organized into the B","page_number":26,"box":{"x":117,"y":151,"width":363,"height":13}},{"id":"86c73230-a5b5-47b3-9df9-0729ca1a7976","block_type":"box","text":"lackRock Multi-Asset Complex, the BlackRock Fixed","page_number":26,"box":{"x":481,"y":151,"width":369,"height":13}},{"id":"de5a3079-8e1a-45d5-965f-380b9ce1d0df","block_type":"box","text":"Income Complex, and the iShares Complex (each, a “BlackRock Fund Complex”). The Funds are included in","page_number":26,"box":{"x":116,"y":167,"width":744,"height":12}},{"id":"6fd5eb4f-0dd0-4a16-a5d1-28e4128d8032","block_type":"box","text":"the BlackRock Fund Complex referred to as the BlackRock Fixed-Income Complex. The Directors also oversee","page_number":26,"box":{"x":116,"y":182,"width":754,"height":13}},{"id":"777a3c79-1671-42b1-b8e7-add0fd998a94","block_type":"box","text":"as board members the operations of the other open-end and closed-end registered investment companies","page_number":26,"box":{"x":116,"y":198,"width":705,"height":12}},{"id":"72951a8a-d379-4956-85ca-2d6cf8a83523","block_type":"box","text":"included in the BlackRock Fixed-Income Complex.","page_number":26,"box":{"x":116,"y":213,"width":346,"height":13}},{"id":"9eb9455c-d1b4-471b-a99f-0353cc2d849a","block_type":"box","text":"The Board has overall responsibility for the oversight of the Company and the Funds. The Chair of the Board","page_number":26,"box":{"x":116,"y":236,"width":742,"height":13}},{"id":"069b480c-fa70-496e-81a7-707e8e486324","block_type":"box","text":"and the Chief Executive Officer are different people. Not only is the Chair of the Board an Independent Director,","page_number":26,"box":{"x":116,"y":252,"width":765,"height":13}},{"id":"9786f621-f6b2-4aa8-b762-61ea8463625d","block_type":"box","text":"but also the Chair of each Board committee (each, a “Committee”) is an Independent Director. The Board has","page_number":26,"box":{"x":116,"y":267,"width":747,"height":13}},{"id":"41b71497-2317-443c-b164-ff0dc591b4a8","block_type":"box","text":"six standing Committees: an Audit Committee, a Govern","page_number":26,"box":{"x":116,"y":283,"width":387,"height":13}},{"id":"c33ce013-ef68-4a15-820b-0dc703b90501","block_type":"box","text":"ance and Nominating Committee, a Compliance","page_number":26,"box":{"x":503,"y":283,"width":330,"height":13}},{"id":"d9396c8c-b070-4a54-adcd-b6f64b20cf61","block_type":"box","text":"Committee, a Performance Oversight Committee, a Secu","page_number":26,"box":{"x":117,"y":298,"width":383,"height":13}},{"id":"8b8c1661-1ffb-4699-bc2d-2d093730bfe1","block_type":"box","text":"rities Lending Committee and an Executive Committee.","page_number":26,"box":{"x":501,"y":298,"width":376,"height":13}},{"id":"267307c4-9543-47a4-8deb-1a1eaf8aeba3","block_type":"box","text":"The role of the Chair of the Board is to preside over all meetings of the Board and to act as a liaison with service","page_number":26,"box":{"x":116,"y":314,"width":759,"height":13}},{"id":"919bff36-a195-47ff-89b5-85017e6e568e","block_type":"box","text":"providers, officers, attorneys, and other Directors between meetings. The Chair of each Committee performs a","page_number":26,"box":{"x":116,"y":329,"width":747,"height":13}},{"id":"286efb29-5b50-4a34-8737-31e1d84e4415","block_type":"box","text":"similar role with respect to the Committee. The Chair of the Board or a Committee may also perform such other","page_number":26,"box":{"x":116,"y":345,"width":763,"height":13}},{"id":"e9b0c7a3-207f-4723-879f-cc0010bd057c","block_type":"box","text":"functions as may be delegated by the Board or the Committee from time to time. The Independent Directors","page_number":26,"box":{"x":116,"y":360,"width":732,"height":13}},{"id":"262c4978-327f-43b6-af7c-0ee2a46c16f4","block_type":"box","text":"meet regularly outside the presence of the Funds’ management, in executive sessions or with other service","page_number":26,"box":{"x":116,"y":376,"width":711,"height":13}},{"id":"a495f144-615f-414e-af10-d8d0c1d68795","block_type":"box","text":"providers to the Funds. The Board has regular meetings five times a year, including a meeting to consider the","page_number":26,"box":{"x":116,"y":391,"width":735,"height":13}},{"id":"05071347-0e58-4c7f-942f-a1fa39f7dc2d","block_type":"box","text":"approval of the Funds’ investment management agreement, and, if necessary, may hold special meetings before","page_number":26,"box":{"x":116,"y":407,"width":750,"height":13}},{"id":"87492c4c-9629-42d0-99ab-5a1b864ed4ac","block_type":"box","text":"its next regular meeting. The Audit Committee, the Govern","page_number":26,"box":{"x":116,"y":422,"width":402,"height":13}},{"id":"34518d8f-3f5e-43a5-b0a1-f90229abdcef","block_type":"box","text":"ance and Nominating Committee, the Compliance","page_number":26,"box":{"x":518,"y":422,"width":343,"height":13}},{"id":"d6923dcd-6980-444f-8100-e37bf246ceba","block_type":"box","text":"Committee, the Performance Oversight Committee and the Securities Lending Committee each meets regularly","page_number":26,"box":{"x":117,"y":438,"width":749,"height":13}},{"id":"fb80fbbe-3247-4b53-b610-ddfc9154e673","block_type":"box","text":"and the Executive Committee meets on an ad hoc basis to conduct the oversight functions delegated to that","page_number":26,"box":{"x":116,"y":453,"width":726,"height":13}},{"id":"55105f8a-05b0-4f7d-8471-8c82c8c489b9","block_type":"box","text":"Committee by the Board and reports its findings to the Board. The Board and each standing Committee conduct","page_number":26,"box":{"x":117,"y":469,"width":761,"height":13}},{"id":"8c60a365-2aa2-4678-97a5-2749058cdae4","block_type":"box","text":"annual assessments of their oversight function and structure. The Board has determined that the Board’s","page_number":26,"box":{"x":116,"y":484,"width":705,"height":13}},{"id":"8b6e3bc6-6a51-4534-a329-11bc23d53434","block_type":"box","text":"leadership structure is appropriate because it allows the Board to exercise independent judgment over","page_number":26,"box":{"x":116,"y":500,"width":686,"height":13}},{"id":"a5e25acb-21eb-41e2-a42e-2f670db738a6","block_type":"box","text":"management and to allocate areas of responsibility among Committees and the Board to enhance oversight.","page_number":26,"box":{"x":116,"y":515,"width":729,"height":13}},{"id":"c0a694a3-0f37-4e50-a907-617d643c6e18","block_type":"box","text":"The Board decided to separate the roles of Chief Executive Officer from the Chair because it believes that","page_number":26,"box":{"x":116,"y":539,"width":730,"height":13}},{"id":"2bd41854-e8fa-4aa0-a3e7-cba8f5181576","block_type":"box","text":"having an independent Chair:","page_number":26,"box":{"x":116,"y":554,"width":205,"height":13}},{"id":"62b4093b-e99b-4056-84b4-8dbe729b712b","block_type":"box","text":"• increases the independent oversight of the Funds and enhances the Board’s objective evaluation","page_number":26,"box":{"x":151,"y":577,"width":716,"height":13}},{"id":"2f3870fd-2772-483f-99e8-056497b14c77","block_type":"box","text":"of the Chief Executive Officer;","page_number":26,"box":{"x":177,"y":593,"width":220,"height":12}},{"id":"37be6c99-ef00-4f6e-ac34-2b3835d00943","block_type":"box","text":"• allows the Chief Executive Officer to focus on the Funds’ operations instead of Board","page_number":26,"box":{"x":151,"y":616,"width":647,"height":13}},{"id":"7606f173-5396-4f00-8c38-24d58528295e","block_type":"box","text":"administration;","page_number":26,"box":{"x":177,"y":632,"width":110,"height":12}},{"id":"7f4ae504-199b-41d0-bc69-b91d2ed0e9a8","block_type":"box","text":"• provides greater opportunities for direct and independent communication between shareholders","page_number":26,"box":{"x":151,"y":655,"width":720,"height":13}},{"id":"cb1c90cb-c734-4c36-83ad-9c7bd692c68e","block_type":"box","text":"and the Board; and","page_number":26,"box":{"x":177,"y":671,"width":138,"height":12}},{"id":"2ec02fdc-b739-4f52-90bb-b6b41151c390","block_type":"box","text":"• provides an independent spokesman for the Funds.","page_number":26,"box":{"x":151,"y":694,"width":394,"height":13}},{"id":"19a45984-e0a3-4b0c-9d51-d44b9cd850fc","block_type":"box","text":"The Board has engaged the Manager to manage the Funds on a day-to-day basis. The Board is responsible for","page_number":26,"box":{"x":116,"y":717,"width":762,"height":13}},{"id":"96c0ea0e-d783-46c3-a949-a7acbdd73766","block_type":"box","text":"overseeing the Manager, sub-advisers, other service providers, the operations of the Funds and associated risks","page_number":26,"box":{"x":116,"y":733,"width":766,"height":12}},{"id":"d4583bb8-68e4-4aad-9a1c-3d25b7c7443d","block_type":"box","text":"in accordance with the provisions of the Investment Company Act, state law, other applicable laws, the","page_number":26,"box":{"x":116,"y":748,"width":716,"height":13}},{"id":"03fd888d-75d8-4e24-a26b-9599879a4447","block_type":"box","text":"Funds’ charter, and the Funds’ investment objective and strategies. The Board reviews, on an ongoing basis,","page_number":26,"box":{"x":116,"y":764,"width":746,"height":12}},{"id":"fa49616a-813c-4d26-abdc-5e6258dcd4ed","block_type":"box","text":"the Funds’ performance, operations, and investment strategies and techniques. The Board also conducts","page_number":26,"box":{"x":116,"y":779,"width":718,"height":13}},{"id":"5e6c681d-114c-47c2-a59c-4088421a1452","block_type":"box","text":"reviews of the Manager and its role in running the operations of the Funds.","page_number":26,"box":{"x":116,"y":795,"width":521,"height":12}},{"id":"ff6b224f-214b-4870-857e-0215a0ccc7b1","block_type":"box","text":"Day-to-day risk management with respect to the Funds is the responsibility of the Manager, sub-advisers or","page_number":26,"box":{"x":116,"y":818,"width":746,"height":13}},{"id":"186d5d63-0043-4926-a5fa-462e18565868","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The","page_number":26,"box":{"x":116,"y":833,"width":748,"height":13}},{"id":"c30fef31-866e-497a-8880-3dfd94e5c941","block_type":"box","text":"Funds are subject to a number of risks, including investment, compliance, operational and valuation risks,","page_number":26,"box":{"x":116,"y":849,"width":734,"height":13}},{"id":"69b72cc9-cc7d-43fb-8192-f9a0e35ee43f","block_type":"box","text":"among others. While there are a number of risk management functions performed by the Manager,","page_number":26,"box":{"x":116,"y":864,"width":688,"height":13}},{"id":"78aaf0f1-5459-46bb-9a57-c83581cad566","block_type":"box","text":"I-10","page_number":26,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"06ad83de-2f9b-41fb-bb03-c9b0d3e8fbf0","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":26,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"7e613ab6-41de-4f7f-90e1-a6dd58e47b58","block_type":"box","text":"sub-advisers or other service providers, as applicable, it is not possible to eliminate all of the risks applicable","page_number":27,"box":{"x":116,"y":79,"width":748,"height":13}},{"id":"3d6e9f5c-3b7c-4377-a578-4e74b1f2e87f","block_type":"box","text":"to the Funds. Risk oversight is part of the Board’s general oversight of the Funds and is addressed as part of","page_number":27,"box":{"x":116,"y":94,"width":747,"height":13}},{"id":"b6026384-de25-4fbc-ad0d-7468ba388b3f","block_type":"box","text":"various Board and Committee activities. The Board, directly or through Committees, also reviews reports","page_number":27,"box":{"x":116,"y":110,"width":731,"height":13}},{"id":"0580236d-c422-4503-8bb2-2cd9df7bc345","block_type":"box","text":"from, among others, management, the independent registered public accounting firm for the Funds, the","page_number":27,"box":{"x":116,"y":125,"width":716,"height":13}},{"id":"28544db7-67e8-46e5-89b6-5a379a302b68","block_type":"box","text":"Manager, sub-advisers and internal auditors for the Manager or its affiliates, as appropriate, regarding risks","page_number":27,"box":{"x":116,"y":141,"width":748,"height":13}},{"id":"e893eb5b-14b1-4cd0-a79e-3395d9ee5593","block_type":"box","text":"faced by the Funds and management’s or the service provider’s risk functions. The Committee system","page_number":27,"box":{"x":116,"y":156,"width":703,"height":13}},{"id":"2eec8be6-e637-4403-89c8-f096bc3b4a5b","block_type":"box","text":"facilitates the timely and efficient consideration of matters by the Directors and facilitates effective oversight of","page_number":27,"box":{"x":116,"y":172,"width":767,"height":13}},{"id":"9075c69b-195e-486c-91ec-81b0f9a1c20f","block_type":"box","text":"compliance with legal and regulatory requirements and of the Funds’ activities and associated risks. The","page_number":27,"box":{"x":116,"y":187,"width":720,"height":13}},{"id":"d9fbf7c5-7c3d-484c-b179-16ab993c43e9","block_type":"box","text":"Board has approved the appointment of a Chief Compliance Officer (“CCO”), who oversees the","page_number":27,"box":{"x":116,"y":203,"width":671,"height":13}},{"id":"ad16c7b5-3d57-4f0b-bc6d-9f9bd97f4f01","block_type":"box","text":"implementation and testing of the Funds’ compliance program and reports regularly to the Board regarding","page_number":27,"box":{"x":116,"y":218,"width":745,"height":13}},{"id":"e0c6c84b-c811-4050-b5fb-2a9cfc50a577","block_type":"box","text":"compliance matters for the Funds and its service providers. The Independent Directors have engaged","page_number":27,"box":{"x":116,"y":234,"width":696,"height":13}},{"id":"3004ddbe-d497-4e66-b279-3e799d2a6bdf","block_type":"box","text":"independent legal counsel to assist them in performing their oversight responsibilities.","page_number":27,"box":{"x":116,"y":249,"width":591,"height":13}},{"id":"d20b87e1-1864-4552-9f53-903a0a495e14","block_type":"box","text":"Audit Committee.","page_number":27,"box":{"x":116,"y":273,"width":120,"height":10}},{"id":"3bb94dff-5c4e-41c7-a2e7-278134b9d449","block_type":"box","text":"The Board has a standing Audit Committee composed of Lorenzo A. Flores (Chair), J. Phillip","page_number":27,"box":{"x":242,"y":273,"width":624,"height":12}},{"id":"d6023dee-e831-42bb-b2aa-74d26e9f92ee","block_type":"box","text":"Holloman and Arthur P. Steinmetz all of whom are Independent Directors. The principal responsibilities of the","page_number":27,"box":{"x":116,"y":288,"width":742,"height":13}},{"id":"ba616915-edf9-4867-9b47-c4b9d8cace06","block_type":"box","text":"Audit Committee are to assist the Board in fulfilling its oversight responsibilities relating to the accounting and","page_number":27,"box":{"x":116,"y":304,"width":738,"height":12}},{"id":"2f20da10-a852-4be8-af29-709d6f400260","block_type":"box","text":"financial reporting policies and practices of the Funds. The Audit Committee’s responsibilities include, without","page_number":27,"box":{"x":116,"y":319,"width":740,"height":13}},{"id":"3008f6c6-6ae0-40c4-b4f2-8f63a5b60585","block_type":"box","text":"limitation: (i) approving, and recommending to the full Board for approval, the selection, retention, termination","page_number":27,"box":{"x":116,"y":335,"width":746,"height":12}},{"id":"c03e9bce-168c-42d1-8b49-f14c16665284","block_type":"box","text":"and compensation of the Funds’ independent registered public accounting firm (the “Independent Registered","page_number":27,"box":{"x":116,"y":350,"width":726,"height":13}},{"id":"07a2faee-ff77-44f2-93d2-7100dd95e7b2","block_type":"box","text":"Public Accounting Firm”) and evaluating the independence and objectivity of the Independent Registered Public","page_number":27,"box":{"x":116,"y":366,"width":748,"height":12}},{"id":"0676daa4-b59b-4c78-ac95-e80f1ba9324f","block_type":"box","text":"Accounting Firm; (ii) approving all audit engagement terms and fees for the Funds; (iii) reviewing the conduct and","page_number":27,"box":{"x":116,"y":381,"width":762,"height":13}},{"id":"2f138772-19d3-4bd4-b6c7-1d442a080d1b","block_type":"box","text":"results of each audit; (iv) reviewing any issues raised by the Funds’ Independent Registered Public Accounting Firm","page_number":27,"box":{"x":116,"y":397,"width":767,"height":12}},{"id":"65f43bc7-ddc0-4b8a-b012-e1f8847f624c","block_type":"box","text":"or management regarding the accounting or financial reporting policies and practices of the Funds, its internal","page_number":27,"box":{"x":116,"y":412,"width":735,"height":13}},{"id":"511b07bf-59c1-4a91-af78-2c9965e84e4e","block_type":"box","text":"controls, and, as appropriate, the internal controls of certain service providers and management’s response to any","page_number":27,"box":{"x":116,"y":428,"width":758,"height":12}},{"id":"ef8e7ec3-49a4-4619-b048-b5eb3d4c4c4c","block_type":"box","text":"such issues; (v) reviewing and discussing the Funds’ audited and unaudited financial statements and disclosure in","page_number":27,"box":{"x":116,"y":443,"width":751,"height":13}},{"id":"08902155-3d65-4d60-9423-ebc8780c623e","block_type":"box","text":"the Funds’ shareholder reports relating to the Funds’ performance; (vi) assisting the Board’s responsibilities with","page_number":27,"box":{"x":116,"y":459,"width":747,"height":12}},{"id":"9cec8969-c2e2-448a-909d-8b73078b129c","block_type":"box","text":"respect to the internal controls of the Funds and its service providers with respect to accounting and financial","page_number":27,"box":{"x":116,"y":474,"width":727,"height":13}},{"id":"84174915-5482-42b5-a1d2-856c79a604f7","block_type":"box","text":"matters; and (vii) resolving any disagreements between the Funds’ management and the Funds’ Independent","page_number":27,"box":{"x":116,"y":490,"width":721,"height":12}},{"id":"d449c052-8b2b-4bfb-a27e-c75f53ff67b5","block_type":"box","text":"Registered Public Accounting Firm regarding financial reporting. The Board has adopted a written charter for the","page_number":27,"box":{"x":116,"y":505,"width":759,"height":13}},{"id":"206ab51f-4f27-499b-83b2-07a6805c385b","block_type":"box","text":"Board’s Audit Committee. During the fiscal year ended December 31, 2025, the Audit Committee met six times.","page_number":27,"box":{"x":116,"y":521,"width":751,"height":12}},{"id":"8475200f-ecaa-4554-a104-1d11e85fc7d1","block_type":"box","text":"Governance and Nominating Committee.","page_number":27,"box":{"x":117,"y":544,"width":288,"height":13}},{"id":"2d9d411a-24db-467a-ba84-76b3f376071f","block_type":"box","text":"The Board has a standing Governance and Nominating Committee","page_number":27,"box":{"x":411,"y":544,"width":466,"height":13}},{"id":"da164df6-385b-4b84-95af-2a1d279cdc4a","block_type":"box","text":"composed of W. Carl Kester (Chair), Cynthia L. Egan, J. Phillip Holloman, and R. Glenn Hubbard, all of","page_number":27,"box":{"x":116,"y":559,"width":733,"height":13}},{"id":"6e335693-06b8-43de-8095-8db818205d37","block_type":"box","text":"whom are Independent Directors. The principal responsibilities of the Governance and Nominating","page_number":27,"box":{"x":116,"y":575,"width":690,"height":13}},{"id":"aea528c6-567e-40f9-b098-e2748ed2c50d","block_type":"box","text":"Committee are: (i) identifying individuals qualified to serve as Independent Directors and recommending","page_number":27,"box":{"x":117,"y":590,"width":724,"height":13}},{"id":"1743c018-736d-4b0b-9e14-0edd8aa4a018","block_type":"box","text":"Board nominees that are not “interested persons” of the Company (as defined in the Investment Company","page_number":27,"box":{"x":116,"y":606,"width":738,"height":13}},{"id":"41f0fd13-5832-4bd2-b5b2-fd03a9beee45","block_type":"box","text":"Act) for election by shareholders or appointment by the Board; (ii) advising the Board with respect to Board","page_number":27,"box":{"x":116,"y":621,"width":748,"height":13}},{"id":"4f59acde-8aaa-4fc4-a3aa-1f9198512867","block_type":"box","text":"composition, procedures and Committees of the Boa","page_number":27,"box":{"x":116,"y":637,"width":365,"height":13}},{"id":"2f8d76cf-9162-40dc-bad2-516b05ba7376","block_type":"box","text":"rd (other than the Audit Committee); (iii) overseeing","page_number":27,"box":{"x":481,"y":637,"width":363,"height":13}},{"id":"b652fbe1-3edb-48d9-8c5a-76bca69b5669","block_type":"box","text":"periodic self-assessments of the Board and Committees of","page_number":27,"box":{"x":116,"y":652,"width":399,"height":13}},{"id":"47ce0415-73d1-4b76-81c5-22aa004aa4ce","block_type":"box","text":"the Board (other than the Audit Committee); (iv)","page_number":27,"box":{"x":519,"y":652,"width":338,"height":13}},{"id":"d0a52b00-93f1-41f7-9a54-a64012de99a2","block_type":"box","text":"reviewing and making recommendations in respect to Independent Director compensation; (v) monitoring","page_number":27,"box":{"x":116,"y":668,"width":735,"height":13}},{"id":"1e35180d-16d9-411c-bd24-37fb52ae74d0","block_type":"box","text":"corporate governance matters and making recommendations in respect thereof to the Board; (vi) acting as the","page_number":27,"box":{"x":116,"y":683,"width":759,"height":13}},{"id":"f27936fb-f1b6-4e56-ae76-f7ac3837fd01","block_type":"box","text":"administrative committee with respect to Board policies a","page_number":27,"box":{"x":116,"y":699,"width":398,"height":13}},{"id":"e3f2cda9-d1cc-4fc2-9eb3-a86524a00569","block_type":"box","text":"nd procedures, committee policies and procedures","page_number":27,"box":{"x":515,"y":699,"width":346,"height":13}},{"id":"b5dccced-104b-4645-9608-895356edb5b9","block_type":"box","text":"(other than the Audit Committee) and codes of ethics as they relate to the Independent Directors; and","page_number":27,"box":{"x":117,"y":714,"width":703,"height":13}},{"id":"a325508d-751d-49c7-963c-fca7f0db8f87","block_type":"box","text":"(vii) reviewing and making recommendations to the Board in respect of Funds share ownership by the","page_number":27,"box":{"x":117,"y":730,"width":705,"height":13}},{"id":"8d9a0c23-4f11-4995-a36b-d53e85ffba30","block_type":"box","text":"Independent Directors. The Board has adopted a written charter for the Board’s Governance and Nominating","page_number":27,"box":{"x":116,"y":745,"width":762,"height":13}},{"id":"053aa3b4-246d-4269-8d9c-fe2135a9acdf","block_type":"box","text":"Committee. During the fiscal year ended December 31, 2025, the Governance and Nominating Committee","page_number":27,"box":{"x":117,"y":761,"width":741,"height":13}},{"id":"b76cbb03-fd1d-4bd3-a73a-68e578f79412","block_type":"box","text":"met four times.","page_number":27,"box":{"x":116,"y":776,"width":104,"height":11}},{"id":"b8bd2d7b-5472-416c-b25c-41f4e9eafe99","block_type":"box","text":"The Governance and Nominating Committee of the Board seeks to identify individuals to serve on the Board","page_number":27,"box":{"x":116,"y":800,"width":756,"height":13}},{"id":"3ec5738f-6bd1-4e23-9371-67ff16c6460b","block_type":"box","text":"who have a diverse range of viewpoints, qualifications, experiences, backgrounds and skill sets so that the","page_number":27,"box":{"x":116,"y":815,"width":733,"height":13}},{"id":"646887bf-1074-4ec0-aefa-bdc72fb4ddb8","block_type":"box","text":"Board will be better suited to fulfill its responsibility of overseeing the Funds’ activities. In so doing, the","page_number":27,"box":{"x":116,"y":831,"width":714,"height":13}},{"id":"8d86a343-3d01-4a44-9859-1fec8d4d602d","block_type":"box","text":"Governance and Nominating Committee reviews the s","page_number":27,"box":{"x":117,"y":846,"width":376,"height":13}},{"id":"7234a092-dc87-46c5-a86b-de140cb86d66","block_type":"box","text":"ize of the Board, the ages of the current Directors and","page_number":27,"box":{"x":494,"y":846,"width":372,"height":13}},{"id":"972d635c-a2bf-4d1d-af7a-a3d244ccc368","block_type":"box","text":"their tenure on the Board, and the skills, background and experiences of the Directors in light of the issues","page_number":27,"box":{"x":116,"y":862,"width":736,"height":13}},{"id":"38aae411-0878-42e6-9972-daeeb0dd62e6","block_type":"box","text":"I-11","page_number":27,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"2373559c-dd3c-487a-ab75-c3e686a97bf1","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":27,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"89c7193d-7f18-4b27-99d6-c2f8c29673aa","block_type":"box","text":"facing the Funds in determining whether one or more new directors should be added to the Board. The Board","page_number":28,"box":{"x":116,"y":79,"width":760,"height":13}},{"id":"91a46054-f821-46af-97b5-4dc08ac05792","block_type":"box","text":"as a group strives to achieve diversity in terms of gender, race and geographic location. The Governance and","page_number":28,"box":{"x":116,"y":94,"width":751,"height":13}},{"id":"dfde997d-739c-4640-a3be-e184456d2014","block_type":"box","text":"Nominating Committee believes that the Directors as a group possess the array of skills, experiences and","page_number":28,"box":{"x":116,"y":110,"width":725,"height":13}},{"id":"5c96d4e2-2ad9-4b41-8e16-07f274737152","block_type":"box","text":"backgrounds necessary to guide the Funds. The Directors’ biographies included herein highlight the diversity","page_number":28,"box":{"x":116,"y":125,"width":752,"height":13}},{"id":"3435de8d-68c0-4f4a-a56b-fb6401ebd62a","block_type":"box","text":"and breadth of skills, qualifications and expertise that the Directors bring to the Funds.","page_number":28,"box":{"x":116,"y":141,"width":603,"height":13}},{"id":"1eef759a-00f4-4f61-9235-a8ef24b27b4d","block_type":"box","text":"The Governance and Nominating Committee may cons","page_number":28,"box":{"x":116,"y":164,"width":385,"height":13}},{"id":"75662e8e-fd86-4389-a10a-31cc5b26d047","block_type":"box","text":"ider nominations for Directors made by the Fund’s","page_number":28,"box":{"x":502,"y":164,"width":352,"height":13}},{"id":"6bd29edd-1d29-4333-8747-9ed63db9adeb","block_type":"box","text":"shareholders as it deems appropriate. Under the Fund’s Bylaws, shareholders must follow certain procedures","page_number":28,"box":{"x":116,"y":180,"width":752,"height":12}},{"id":"6e22be18-3b7e-4c0f-a4ff-e30eab89f239","block_type":"box","text":"to nominate a person for election as a Director at a shareholder meeting at which Directors are to be elected.","page_number":28,"box":{"x":116,"y":195,"width":753,"height":13}},{"id":"2a47062a-c8ca-430f-9e81-7e1e159161dd","block_type":"box","text":"Under these advance notice procedures, sharehold","page_number":28,"box":{"x":116,"y":211,"width":347,"height":12}},{"id":"cb8571d3-03bb-4507-8a83-54e0bcac9ac1","block_type":"box","text":"ers must submit the proposed nominee by delivering a","page_number":28,"box":{"x":463,"y":211,"width":374,"height":12}},{"id":"02ddc684-c5a9-470d-ba1d-7ccffca5111d","block_type":"box","text":"notice to the Secretary of the Fund at its principal executive offices no later than the close of business on the","page_number":28,"box":{"x":116,"y":226,"width":747,"height":13}},{"id":"bcd6f6ef-758c-4b2a-9cdf-b69afb3b05ab","block_type":"box","text":"fifth(5th) day following the day on which notice of the date of the meeting was mailed or public disclosure of","page_number":28,"box":{"x":116,"y":242,"width":758,"height":12}},{"id":"61cdc0f6-3f93-485d-82ac-318d7f467608","block_type":"box","text":"the date of the meeting was made, whichever first occurs.","page_number":28,"box":{"x":116,"y":257,"width":397,"height":13}},{"id":"deccbef5-12b3-442b-a35b-e9b74599e86b","block_type":"box","text":"The Fund’s Bylaws provide that notice of a proposed nomination must include certain information about the","page_number":28,"box":{"x":116,"y":280,"width":755,"height":13}},{"id":"7bcc1b7c-5a3c-495e-bcbb-4287f58f6182","block_type":"box","text":"shareholder and the nominee, as well as certain other information, including a written consent of the","page_number":28,"box":{"x":116,"y":296,"width":698,"height":13}},{"id":"f06ee4b3-c6a2-4e0d-a532-238a48373e18","block_type":"box","text":"proposed nominee to serve if elected. Reference is made to the Fund’s Bylaws for more details.","page_number":28,"box":{"x":116,"y":311,"width":653,"height":13}},{"id":"01f9a1c0-9fe9-4fdc-a23a-58c625b67091","block_type":"box","text":"Compliance Committee.","page_number":28,"box":{"x":117,"y":335,"width":167,"height":12}},{"id":"5524a886-1ba6-472f-a346-97cef640bbb7","block_type":"box","text":"The Board has a Compliance Committee composed of Cynthia L. Egan (Chair),","page_number":28,"box":{"x":290,"y":335,"width":553,"height":12}},{"id":"82ed44c6-32d3-4613-a8cf-b01747c7fdfc","block_type":"box","text":"Stayce D. Harris, R. Glenn Hubbard and W. Carl Kester, all of whom are Independent Directors. The","page_number":28,"box":{"x":116,"y":350,"width":707,"height":13}},{"id":"4508d0cd-fdb6-423a-b274-eab38c51a073","block_type":"box","text":"Compliance Committee’s purpose is to assist th","page_number":28,"box":{"x":117,"y":366,"width":328,"height":12}},{"id":"67d583bf-83b0-4806-abde-37db558e1a49","block_type":"box","text":"e Board in fulfilling its responsibility with respect to the","page_number":28,"box":{"x":445,"y":366,"width":385,"height":12}},{"id":"41dc1294-4b8f-4c06-bfe4-b035e2980b22","block_type":"box","text":"oversight of regulatory and fiduciary compliance matters involving the Funds, the fund-related activities of","page_number":28,"box":{"x":116,"y":381,"width":739,"height":13}},{"id":"b8400d89-0261-4ac1-9575-b3db2639f996","block_type":"box","text":"BlackRock, and any sub-advisers and the Funds’ other third party service providers. The Compliance","page_number":28,"box":{"x":116,"y":397,"width":701,"height":12}},{"id":"bee45165-b710-477d-9773-e967990056f3","block_type":"box","text":"Committee’s responsibilities include, without limitation: (i) overseeing the compliance policies and procedures","page_number":28,"box":{"x":117,"y":412,"width":760,"height":13}},{"id":"61e4436f-0357-449f-91c1-d5801512443a","block_type":"box","text":"of the Funds and its service providers and recommending changes or additions to such policies and","page_number":28,"box":{"x":116,"y":428,"width":684,"height":12}},{"id":"5e256a0d-b3e9-4d3b-b763-10e5ac5cf9be","block_type":"box","text":"procedures; (ii) reviewing information on and, where appropriate, recommending policies concerning the","page_number":28,"box":{"x":116,"y":443,"width":727,"height":13}},{"id":"8be27761-2539-448a-a0b0-8edc3531234b","block_type":"box","text":"Funds’ compliance with applicable law; (iii) reviewin","page_number":28,"box":{"x":116,"y":459,"width":366,"height":12}},{"id":"9b5e05e8-0e59-4924-a2b0-5a554301f148","block_type":"box","text":"g information on any significant correspondence with or","page_number":28,"box":{"x":483,"y":459,"width":391,"height":12}},{"id":"cbf00b1d-dc51-4b49-bfab-9e7904f64b00","block_type":"box","text":"other actions by regulators or governmental agencies with respect to the Funds and any employee complaints","page_number":28,"box":{"x":116,"y":474,"width":756,"height":13}},{"id":"6fae60b9-322e-4de7-acd5-4e17fe3b2949","block_type":"box","text":"or published reports that raise concerns regarding compliance matters; and (iv) reviewing reports from,","page_number":28,"box":{"x":116,"y":490,"width":714,"height":12}},{"id":"520d6d8b-f0d2-4150-9995-5c56ce3de386","block_type":"box","text":"overseeing the annual performance review of, and making certain recommendations in respect of, the Funds’","page_number":28,"box":{"x":116,"y":505,"width":752,"height":13}},{"id":"ac9ffd67-9662-428c-8233-ab17382cf8ab","block_type":"box","text":"CCO, including, without limitation, determining the amount and structure of the CCO’s compensation. The","page_number":28,"box":{"x":117,"y":521,"width":751,"height":12}},{"id":"1abd47d5-4116-4d72-b16f-a5d3026080bc","block_type":"box","text":"Board has adopted a written charter for the Board’s Compliance Committee. During the fiscal year ended","page_number":28,"box":{"x":116,"y":536,"width":732,"height":13}},{"id":"e4833fbe-faa1-4b07-8c3a-8b690c0cf8c1","block_type":"box","text":"December 31, 2025, the Compliance Committee met four times.","page_number":28,"box":{"x":116,"y":552,"width":446,"height":12}},{"id":"e0c2b04f-0d1f-4354-85f3-03e4afa953fc","block_type":"box","text":"Performance Oversight Committee.","page_number":28,"box":{"x":116,"y":575,"width":247,"height":13}},{"id":"1a1f6a76-a6ae-42a1-aeff-5429e5a4cb21","block_type":"box","text":"The Board has a Performance Oversight Committee composed of","page_number":28,"box":{"x":369,"y":575,"width":454,"height":13}},{"id":"f1dc681f-f211-49cb-9a77-ab4556f7e605","block_type":"box","text":"Arthur P. Steinmetz (Chair), Cynthia L. Egan, Lorenzo A. Flores, Stayce D. Harris, J. Phillip Holloman,","page_number":28,"box":{"x":116,"y":590,"width":718,"height":13}},{"id":"fca6fe0e-068e-43d8-905e-a84ad5038621","block_type":"box","text":"R. Glenn Hubbard, and W. Carl Kester, all of whom are Independent Directors. The Performance Oversight","page_number":28,"box":{"x":116,"y":606,"width":753,"height":13}},{"id":"beac57b3-027e-4029-90b8-d63051859f79","block_type":"box","text":"Committee’s purpose is to assist the Board in fulfilling its responsibility to oversee the Funds’ investment","page_number":28,"box":{"x":117,"y":621,"width":722,"height":13}},{"id":"0899fd07-5d40-44d5-8dc0-7e91de2d9319","block_type":"box","text":"performance relative to the Funds’ investment objective, policies and practices. The Performance Oversight","page_number":28,"box":{"x":116,"y":637,"width":740,"height":13}},{"id":"ece7094b-e1b0-4836-9f8d-cde2b2a84ecb","block_type":"box","text":"Committee’s responsibilities include, without limitation: (i) reviewing the Funds’ investment objective, policies","page_number":28,"box":{"x":117,"y":652,"width":761,"height":13}},{"id":"b958d3f9-b0b2-476e-aff1-bf17317301b0","block_type":"box","text":"and practices; (ii) recommending to the Board any required action in respect of changes in fundamental and","page_number":28,"box":{"x":116,"y":668,"width":746,"height":13}},{"id":"b2fa7391-b228-472c-a96e-c7e180bfa86c","block_type":"box","text":"non-fundamental investment restrictions; (iii) reviewing information on appropriate benchmarks and","page_number":28,"box":{"x":116,"y":683,"width":700,"height":13}},{"id":"8e584820-0562-46f4-88f9-0d3e2cbd7d64","block_type":"box","text":"competitive universes; (iv) reviewing the Funds’ investment performance relative to such benchmarks;","page_number":28,"box":{"x":116,"y":699,"width":703,"height":13}},{"id":"6e1e6788-5f61-404a-b7eb-83dbe356b3d6","block_type":"box","text":"(v) reviewing information on unusual or exceptional investment matters; (vi) reviewing whether the Funds has","page_number":28,"box":{"x":117,"y":714,"width":762,"height":13}},{"id":"18e48f9a-930e-4229-b138-14853a540cbb","block_type":"box","text":"complied with its investment policies and restrictions; and (vii) overseeing policies, procedures and controls","page_number":28,"box":{"x":116,"y":730,"width":742,"height":13}},{"id":"c0da071f-06a7-4c7c-87fb-ef7ef1cfc7e9","block_type":"box","text":"regarding valuation of the Funds’ investments. The Board has adopted a written charter for the Board’s","page_number":28,"box":{"x":116,"y":745,"width":716,"height":13}},{"id":"cd316cab-a135-4c4b-aca8-c2fb403d33fa","block_type":"box","text":"Performance Oversight Committee. During the fiscal year ended December 31, 2025, the Performance","page_number":28,"box":{"x":116,"y":761,"width":710,"height":13}},{"id":"45cc6ec2-6ea3-468d-bac1-19d620525ad5","block_type":"box","text":"Oversight Committee met four times.","page_number":28,"box":{"x":117,"y":776,"width":257,"height":13}},{"id":"9db7f3c5-b828-40b3-8250-61675499cd6b","block_type":"box","text":"Securities Lending Committee.","page_number":28,"box":{"x":116,"y":800,"width":212,"height":13}},{"id":"f9281956-b7af-4ca2-9959-e7c6dc215d64","block_type":"box","text":"The Board has a Securities Lending Committee composed of Cynthia L. Egan","page_number":28,"box":{"x":334,"y":800,"width":537,"height":13}},{"id":"1bd749a1-eee7-4dd0-a3fd-af1edb29326c","block_type":"box","text":"(Chair), and W. Carl Kester, all of whom are Independent Directors. The principal responsibilities of the","page_number":28,"box":{"x":117,"y":815,"width":723,"height":13}},{"id":"782f667e-7ada-42b1-b29a-fca4e408b1a5","block_type":"box","text":"Securities Lending Committee include, without limitation: (i) supporting, overseeing and organizing on behalf","page_number":28,"box":{"x":116,"y":831,"width":761,"height":13}},{"id":"8837d713-1df4-4927-9017-6b418811b686","block_type":"box","text":"of the Board the process for oversight of the Fund’s securities lending activities; and (ii) providing a","page_number":28,"box":{"x":116,"y":846,"width":686,"height":13}},{"id":"ab970e64-c17b-4e98-84f4-0b62ca319b53","block_type":"box","text":"recommendation to the Board regarding the annual approval of the Fund’s Securities Lending Guidelines and","page_number":28,"box":{"x":116,"y":862,"width":757,"height":13}},{"id":"a83f6cc4-7712-43d4-b784-df24b46dfbd1","block_type":"box","text":"I-12","page_number":28,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"3ae02c1e-5895-485d-8cd3-39b18bbbcbb2","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":28,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"88e15cdb-4a0b-4adc-b3d8-d748d85d2a9e","block_type":"box","text":"the Fund’s agreement with the lending agent. The Board has adopted a written charter for the Board’s","page_number":29,"box":{"x":116,"y":79,"width":707,"height":13}},{"id":"b283130e-49f6-44b2-b421-ad315673443b","block_type":"box","text":"Securities Lending Committee. During the fiscal year ended December 31, 2025, the Securities Lending","page_number":29,"box":{"x":116,"y":94,"width":713,"height":13}},{"id":"34c38294-5a9e-4b66-83d8-30efb610933e","block_type":"box","text":"Committee met two times.","page_number":29,"box":{"x":117,"y":110,"width":183,"height":10}},{"id":"0a750d44-0b7a-4b25-9270-af6127506a93","block_type":"box","text":"Executive Committee.","page_number":29,"box":{"x":116,"y":134,"width":153,"height":9}},{"id":"871ea535-361a-42dc-90ae-5ea540fc2955","block_type":"box","text":"The Board has an Executive Committee composed of R. Glenn Hubbard (Chair) and","page_number":29,"box":{"x":275,"y":133,"width":589,"height":13}},{"id":"7950986b-1582-42e6-8128-c0c051b39e20","block_type":"box","text":"W. Carl Kester, both of whom are Independent Directors, and John M. Perlowski, who serves as an interested","page_number":29,"box":{"x":116,"y":149,"width":764,"height":12}},{"id":"8b69fd4f-c793-4538-b68e-66b84c8713d0","block_type":"box","text":"Director. The principal responsibilities of the Executive Committee include, without limitation: (i) acting on","page_number":29,"box":{"x":116,"y":164,"width":747,"height":13}},{"id":"126bed0e-3d91-4f25-8103-1e96fd856f50","block_type":"box","text":"routine matters between meetings of the Board; (ii) acting on such matters as may require urgent action","page_number":29,"box":{"x":116,"y":180,"width":716,"height":12}},{"id":"539dd1d5-0696-43ed-bdee-b24ab5746009","block_type":"box","text":"between meetings of the Board; and (iii) exercising such other authority as may from time to time be delegated","page_number":29,"box":{"x":116,"y":195,"width":765,"height":13}},{"id":"bea35f78-d896-4bbb-be45-42f7c5e7ad61","block_type":"box","text":"to the Executive Committee by the Board. The Board has adopted a written charter for the Board’s Executive","page_number":29,"box":{"x":116,"y":211,"width":758,"height":12}},{"id":"3997325e-76be-4e0d-b7b5-ebb0d3c1a8e8","block_type":"box","text":"Committee. During the fiscal year ended December 31, 2025, the Executive Committee did not meet.","page_number":29,"box":{"x":117,"y":226,"width":700,"height":13}},{"id":"e68fa7f3-0249-4e55-a41b-7269f64bc2ed","block_type":"box","text":"The Independent Directors have adopted a statement of policy that describes the experiences, qualifications,","page_number":29,"box":{"x":116,"y":249,"width":748,"height":13}},{"id":"0ae7cddc-89ba-4414-a0e1-6abe637b3dd7","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the","page_number":29,"box":{"x":116,"y":265,"width":712,"height":13}},{"id":"66152e54-1c07-4e96-9575-df0c5ef6a4da","block_type":"box","text":"“Statement of Policy”). The Board believes that each Independent Director satisfied, at the time he or she was","page_number":29,"box":{"x":117,"y":280,"width":758,"height":13}},{"id":"50e57f6a-6f3b-4c3e-9b0e-f67a67300bc8","block_type":"box","text":"initially elected or appointed a Director, and continues to satisfy, the standards contemplated by the Statement","page_number":29,"box":{"x":116,"y":296,"width":766,"height":13}},{"id":"e7bd2877-e153-40a1-b61c-52d2753bd39a","block_type":"box","text":"of Policy as well as the standards set forth in the Company’s Bylaws. Furthermore, in determining that a","page_number":29,"box":{"x":116,"y":311,"width":722,"height":13}},{"id":"42b272f9-a0cb-4a87-b765-35f48d3656a0","block_type":"box","text":"particular Director was and continues to be qualified to serve as a Director, the Board has considered a variety","page_number":29,"box":{"x":116,"y":327,"width":766,"height":13}},{"id":"144a9f4a-7dc4-44ab-9e57-a900f5c78431","block_type":"box","text":"of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Directors","page_number":29,"box":{"x":116,"y":342,"width":734,"height":13}},{"id":"48fffc68-ffef-4c7d-8eb9-91f396d96538","block_type":"box","text":"have balanced and diverse experiences, skills, attributes and qualifications, which allow the Board to operate","page_number":29,"box":{"x":116,"y":358,"width":753,"height":13}},{"id":"c5e31bc1-b932-4e9e-9cde-4396f683a4bf","block_type":"box","text":"effectively in governing the Funds and protecting the interests of shareholders. Among the attributes common","page_number":29,"box":{"x":116,"y":373,"width":758,"height":13}},{"id":"78502469-23b2-4f54-a02f-a1de5911b540","block_type":"box","text":"to all Directors is their ability to review critically, eval","page_number":29,"box":{"x":116,"y":389,"width":372,"height":13}},{"id":"bbf7e3a7-51d2-469b-84f0-627c7277962f","block_type":"box","text":"uate, question and discuss information provided to","page_number":29,"box":{"x":489,"y":389,"width":352,"height":13}},{"id":"3d0624fb-1ab8-4131-b228-ed5245a4e156","block_type":"box","text":"them, to interact effectively with the Manager, sub-advisers, other service providers, counsel and independent","page_number":29,"box":{"x":116,"y":404,"width":758,"height":13}},{"id":"f9245f1a-0cf2-4693-a702-f11d9e3199d7","block_type":"box","text":"auditors, and to exercise effective business judgment in the performance of their duties as Directors. Each","page_number":29,"box":{"x":116,"y":420,"width":729,"height":13}},{"id":"cf6b6e93-59f0-412e-9386-61442a445a97","block_type":"box","text":"Director’s ability to perform his or her duties effectively is evidenced by his or her educational background or","page_number":29,"box":{"x":116,"y":435,"width":757,"height":13}},{"id":"7a527807-2853-41ff-8261-86cdbf53ae9a","block_type":"box","text":"professional training; business, consulting, public service or academic positions; experience from service as a","page_number":29,"box":{"x":116,"y":451,"width":749,"height":13}},{"id":"cc1e4539-802f-4ec6-813b-84273473c873","block_type":"box","text":"board member of the Company or the other funds in the BlackRock Fund Complexes (and any predecessor","page_number":29,"box":{"x":116,"y":466,"width":745,"height":13}},{"id":"9a601dfa-b892-4e1c-b5b4-b2cdac21ee43","block_type":"box","text":"funds), other investment funds, public companies, or not-for-profit entities or other organizations; ongoing","page_number":29,"box":{"x":116,"y":482,"width":741,"height":13}},{"id":"cd0a0dc2-ec1f-499f-9eaf-a5e5aaf17510","block_type":"box","text":"commitment and participation in Board and Committee m","page_number":29,"box":{"x":116,"y":497,"width":407,"height":13}},{"id":"ed5a88a7-d720-4e12-b2eb-d9ae1ba84fa5","block_type":"box","text":"eetings, as well as his or her leadership of standing","page_number":29,"box":{"x":523,"y":497,"width":349,"height":13}},{"id":"6f1c7292-36df-4429-b374-e765cf31e282","block_type":"box","text":"and other committees throughout the years; or other relevant life experiences.","page_number":29,"box":{"x":116,"y":513,"width":537,"height":13}},{"id":"8f10db99-c37d-4efa-a9fe-62761b02ae40","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each Director that support the","page_number":29,"box":{"x":116,"y":536,"width":751,"height":13}},{"id":"b35c84f8-7002-40f3-8591-002524060b81","block_type":"box","text":"conclusion that he or she should serve on the Board.","page_number":29,"box":{"x":116,"y":552,"width":361,"height":10}},{"id":"1bfd9423-5185-4ccd-aa0e-e6704aff7ab1","block_type":"box","text":"Directors/Trustees","page_number":29,"box":{"x":116,"y":580,"width":108,"height":7}},{"id":"99df54c3-7fd8-4798-847a-f8cd1590dc2c","block_type":"box","text":"Experience, Qualifications and Skills","page_number":29,"box":{"x":266,"y":579,"width":212,"height":11}},{"id":"0dfa947d-9ac6-474a-95ec-ca37b8e9c67e","block_type":"box","text":"Independent Directors","page_number":29,"box":{"x":116,"y":601,"width":130,"height":11}},{"id":"b7d70f39-7c6b-465b-b39a-703944610163","block_type":"box","text":"R. Glenn Hubbard R. Glenn Hubbard has served in numerous roles in the field of economics, including as the Chairman of","page_number":29,"box":{"x":116,"y":617,"width":752,"height":10}},{"id":"7f755553-1b86-4d7d-80ed-66345607cc12","block_type":"box","text":"the U.S. Council of Economic Advisers of the President of the United States. Dr. Hubbard has served as","page_number":29,"box":{"x":266,"y":627,"width":598,"height":8}},{"id":"c10b8bb9-a335-4842-93d0-e99fbb21c614","block_type":"box","text":"the Dean of Columbia Business School, as a member of the Columbia Faculty and as a Visiting Professor","page_number":29,"box":{"x":266,"y":638,"width":606,"height":10}},{"id":"cc53fc43-20b5-4d00-8b43-b2724a5e7a02","block_type":"box","text":"at the John F. Kennedy School of Government at Harvard University, the Harvard Business School and","page_number":29,"box":{"x":266,"y":648,"width":597,"height":10}},{"id":"eeb4fa96-36f5-4557-a9be-5e0e06edfeea","block_type":"box","text":"the University of Chicago. Dr. Hubbard’s experience as an adviser to the President of the United States","page_number":29,"box":{"x":266,"y":658,"width":594,"height":11}},{"id":"54cb71fd-638b-48ef-b7e7-6abc945a77dc","block_type":"box","text":"adds a dimension of balance to the Funds’ governance and provides perspective on economic issues.","page_number":29,"box":{"x":266,"y":669,"width":577,"height":10}},{"id":"26b5198b-55ef-4ff3-b094-8f75cf104b7a","block_type":"box","text":"Dr. Hubbard’s service on the boards of ADP and Metropolitan Life Insurance Company provides the","page_number":29,"box":{"x":266,"y":679,"width":585,"height":10}},{"id":"fbf27a96-b3c8-461a-a58e-9e6bb66ee2d2","block_type":"box","text":"Board with the benefit of his experience with the management practices of other financial companies.","page_number":29,"box":{"x":266,"y":689,"width":585,"height":11}},{"id":"8979c3b9-7c14-4fa7-ad2c-5dd455f11976","block_type":"box","text":"Dr. Hubbard’s long-standing service on the boards of directors/trustees of the closed-end funds in the","page_number":29,"box":{"x":266,"y":700,"width":586,"height":10}},{"id":"c42b8590-741d-4be0-b9bd-fe9bb71a5a68","block_type":"box","text":"BlackRock Fixed-Income Complex also provides him with a specific understanding of the Funds, their","page_number":29,"box":{"x":266,"y":710,"width":591,"height":10}},{"id":"5c433ccf-909f-4cfe-b645-4ec62d3ae015","block_type":"box","text":"operations, and the business and regulatory issues facing the Funds. Dr. Hubbard’s independence from the","page_number":29,"box":{"x":266,"y":720,"width":616,"height":11}},{"id":"52cc0a00-c6a6-4240-9ec8-1c02f7903ae4","block_type":"box","text":"Funds and the Manager enhances his service as Chair of the Board, Chair of the Executive Committee and","page_number":29,"box":{"x":266,"y":731,"width":615,"height":10}},{"id":"1c0f6036-8993-42d2-9fb3-69926ca051aa","block_type":"box","text":"a member of the Governance and Nominating Committee, the Compliance Committee and the","page_number":29,"box":{"x":266,"y":741,"width":548,"height":10}},{"id":"570c83fe-59ed-48f3-a927-928d7321ca92","block_type":"box","text":"Performance Oversight Committee.","page_number":29,"box":{"x":266,"y":751,"width":204,"height":11}},{"id":"e0c359e9-0015-4240-a2ec-c862bd411d88","block_type":"box","text":"W. Carl Kester The Board benefits from W. Carl Kester’s experiences as a professor and author in finance, and his","page_number":29,"box":{"x":116,"y":767,"width":713,"height":10}},{"id":"46991a6e-447f-4095-8fe4-8e19a03cfc0e","block_type":"box","text":"experience as the George Fisher Baker Jr. Professor of Business Administration at Harvard Business School","page_number":29,"box":{"x":266,"y":777,"width":609,"height":10}},{"id":"0ae93894-53d2-45e0-9e86-1d55e879e097","block_type":"box","text":"and as Deputy Dean of Academic Affairs at Harvard Business School from 2006 through 2010 adds to the","page_number":29,"box":{"x":266,"y":787,"width":608,"height":11}},{"id":"3227c3f6-a49e-486d-b4b9-45db9df00932","block_type":"box","text":"Board a wealth of expertise in corporate finance and corporate governance. Dr. Kester has authored and","page_number":29,"box":{"x":266,"y":798,"width":596,"height":10}},{"id":"808d70ae-5b26-47e5-96ff-706a7db3ec80","block_type":"box","text":"edited numerous books and research papers on both subject","page_number":29,"box":{"x":266,"y":808,"width":342,"height":10}},{"id":"0ef3e3a3-a951-4875-a35a-d9a8529f1df0","block_type":"box","text":"matters, including co-editing a leading volume","page_number":29,"box":{"x":612,"y":808,"width":263,"height":10}},{"id":"7eeeb759-d142-4b41-a6da-5fddb1432378","block_type":"box","text":"of finance case studies used worldwide. Dr. Kester’s l","page_number":29,"box":{"x":266,"y":818,"width":302,"height":9}},{"id":"40154052-b078-4d35-b4ae-4a7cff2c525c","block_type":"box","text":"ong-standing service on the boards of directors/trustees","page_number":29,"box":{"x":569,"y":818,"width":314,"height":11}},{"id":"2a90abd5-cdf6-45de-97f4-8b5ca1b017e1","block_type":"box","text":"of the closed-end funds in the BlackRock Fixed-Income Complex also provides him with a specific","page_number":29,"box":{"x":266,"y":829,"width":561,"height":10}},{"id":"cb12e3db-fa43-40d8-a10a-0ef3d8543860","block_type":"box","text":"understanding of the Funds, their operations, and the business and regulatory issues facing the Funds.","page_number":29,"box":{"x":266,"y":839,"width":579,"height":10}},{"id":"610f9b2c-5b5a-4d0b-96ee-78ddcaa934cc","block_type":"box","text":"Dr. Kester’s independence from the Funds and the Manager enhances his service as a Vice Chair of the","page_number":29,"box":{"x":266,"y":849,"width":585,"height":11}},{"id":"dc552d5d-0a06-433f-9992-ace1c702b922","block_type":"box","text":"Board, Chair of the Governance and Nominating Committee and a member of the Executive Committee,","page_number":29,"box":{"x":266,"y":860,"width":599,"height":10}},{"id":"2c805ebb-0931-48fe-9614-a1316657dd59","block_type":"box","text":"the Compliance Committee, the Performance Oversi","page_number":29,"box":{"x":266,"y":870,"width":298,"height":10}},{"id":"e9fb3be8-68c3-48d7-a7da-76ad1b84a462","block_type":"box","text":"ght Committee and the Securities Lending Committee.","page_number":29,"box":{"x":565,"y":870,"width":309,"height":10}},{"id":"fb524b03-312d-42ee-a513-72348f0915d8","block_type":"box","text":"I-13","page_number":29,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"c5acae93-60c3-46b6-8ff9-ec205c5b4fb7","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":29,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"c92928e8-89db-45c1-9a60-11294f000185","block_type":"box","text":"Directors/Trustees","page_number":30,"box":{"x":116,"y":76,"width":108,"height":8}},{"id":"7eb0868f-df9a-4468-9c3e-de56864bbcaa","block_type":"box","text":"Experience, Qualifications and Skills","page_number":30,"box":{"x":266,"y":76,"width":212,"height":10}},{"id":"f4d15bea-477d-4056-8347-303f776b09ea","block_type":"box","text":"Cynthia L. Egan Cynthia L. Egan brings to the Board a broad and diverse knowledge of investment companies and the","page_number":30,"box":{"x":116,"y":95,"width":738,"height":10}},{"id":"bb43f188-3fa8-43f6-bfb5-d56717f52eee","block_type":"box","text":"retirement industry as a result of her many years of experience as President, Retirement Plan Services, for","page_number":30,"box":{"x":266,"y":105,"width":607,"height":11}},{"id":"b85feb3d-0a1b-40ed-be35-e77be3571c33","block_type":"box","text":"T. Rowe Price Group, Inc. and her various senior operating officer positions at Fidelity Investments,","page_number":30,"box":{"x":266,"y":116,"width":579,"height":10}},{"id":"4eccc22c-253b-4529-8aac-553e186d7cc1","block_type":"box","text":"including her service as Executive Vice President of FMR Co., President of Fidelity Institutional Services","page_number":30,"box":{"x":266,"y":126,"width":601,"height":10}},{"id":"0f3406e7-ed7e-4fc2-bf7a-7279aa634699","block_type":"box","text":"Company and President of the Fidelity Charitable Gift Fund. Ms. Egan has also served as an advisor to","page_number":30,"box":{"x":266,"y":136,"width":596,"height":11}},{"id":"487077d3-7041-4ffc-9343-95712111845b","block_type":"box","text":"the U.S. Department of Treasury as an expert in domestic retirement security. Ms. Egan began her","page_number":30,"box":{"x":266,"y":147,"width":568,"height":10}},{"id":"73b5bc93-6838-415f-b2b0-8cd4f59120f5","block_type":"box","text":"professional career at the Board of Governors of the Federal Reserve and the Federal Reserve Bank of","page_number":30,"box":{"x":266,"y":157,"width":588,"height":10}},{"id":"45e7bb5e-4539-44c8-9684-fa0f7dd6992d","block_type":"box","text":"New York. Ms. Egan is also a director of UNUM Corporation, a publicly traded insurance company","page_number":30,"box":{"x":266,"y":167,"width":583,"height":11}},{"id":"827cd7ac-2e2c-4308-992b-04e164670f51","block_type":"box","text":"providing personal risk reinsurance, and a director and Chair of the Board of The Hanover Group, a","page_number":30,"box":{"x":266,"y":178,"width":583,"height":10}},{"id":"63ba70ea-d900-4705-b58c-88d96c0540d5","block_type":"box","text":"public property casualty insurance company. Ms. Egan is also the lead independent director and non","page_number":30,"box":{"x":266,"y":188,"width":587,"height":10}},{"id":"0fba77f7-3988-4afe-8922-f383d97198a6","block_type":"box","text":"executive Vice Chair of the Board of Huntsman Corporation, a publicly traded manufacturer and","page_number":30,"box":{"x":266,"y":198,"width":565,"height":11}},{"id":"5b1941ec-8218-487d-a73b-2b1f594f32b2","block_type":"box","text":"marketer of chemical products. Ms. Egan’s independence from the Funds and the Manager enhances her","page_number":30,"box":{"x":266,"y":209,"width":604,"height":10}},{"id":"e2e08b54-5447-4a51-9356-1a4c5d3fd53c","block_type":"box","text":"service as Chair of the Compliance Committee and a member of the Governance and Nominating","page_number":30,"box":{"x":266,"y":219,"width":565,"height":10}},{"id":"4de03d87-3846-43d7-8266-f7ece57e1ab6","block_type":"box","text":"Committee, the Performance Oversight Committee and the Securities Lending Committee.","page_number":30,"box":{"x":266,"y":229,"width":521,"height":11}},{"id":"1f4e3f67-644b-47cd-984a-6a9c1787fb88","block_type":"box","text":"Lorenzo A. Flores The Board benefits from Lorenzo A. Flores’s many years of business, leadership and financial experience","page_number":30,"box":{"x":116,"y":245,"width":755,"height":10}},{"id":"a45af885-0a4c-48ac-aa69-f24b2fa1d6fb","block_type":"box","text":"in his roles at various public and private companies. In particular, Mr. Flores’s service as Chief Financial","page_number":30,"box":{"x":266,"y":255,"width":604,"height":10}},{"id":"07a5f1e3-dd12-4e3b-9acf-df1849a0be0e","block_type":"box","text":"Officer of Lattice Semiconductor Corporation, a semiconductor company that designs, develops, and","page_number":30,"box":{"x":266,"y":266,"width":585,"height":10}},{"id":"3a62485e-8c07-4b9b-b491-cf1574028dad","block_type":"box","text":"markets programmable logic products and related software, Chief Financial Officer of Intel Foundry, a","page_number":30,"box":{"x":266,"y":276,"width":595,"height":10}},{"id":"1cf8e668-cf46-4f8c-bbc2-512d469618ef","block_type":"box","text":"semiconductor manufacturing unit of Internal Corporation, Chief Financial Officer and Corporate","page_number":30,"box":{"x":266,"y":286,"width":570,"height":10}},{"id":"895842cf-d281-499c-b535-c6d8e6d16c79","block_type":"box","text":"Controller of Xilinx, Inc., a technology and semiconductor company that supplies programmable logic","page_number":30,"box":{"x":266,"y":297,"width":594,"height":10}},{"id":"565c03b6-7a95-4c1a-a00a-78fc46aaedf4","block_type":"box","text":"devices, and Vice Chairman of Kioxia, Inc., a manufacturer and supplier of flash memory and solid state","page_number":30,"box":{"x":266,"y":307,"width":605,"height":10}},{"id":"24fee97d-e96c-44e6-8cec-c3d64f876a51","block_type":"box","text":"drives, and his long experience in the technology industry allow him to provide insight to into financial,","page_number":30,"box":{"x":266,"y":317,"width":600,"height":10}},{"id":"82b03915-8d66-4b04-ab3c-104176162350","block_type":"box","text":"business and technology trends. Mr. Flores’s knowledge of financial and accounting matters qualifies him","page_number":30,"box":{"x":266,"y":328,"width":611,"height":10}},{"id":"63d735d5-690e-4a6c-9130-55e3fc3d56cf","block_type":"box","text":"to serve as a member of the Audit Committee. Mr. Flores’s independence from the Funds and the","page_number":30,"box":{"x":266,"y":338,"width":562,"height":10}},{"id":"cfe7ea78-5b2c-4869-a4ba-6807d0cca27f","block_type":"box","text":"Manager enhances his service as a member of the Performance Oversight","page_number":30,"box":{"x":266,"y":348,"width":422,"height":10}},{"id":"aa68860a-5dbb-4112-9cdf-2efde4b5dc0e","block_type":"box","text":"Stayce D. Harris The Board benefits from Stayce D. Harris’s leadership and governance experience gained during her","page_number":30,"box":{"x":116,"y":364,"width":728,"height":10}},{"id":"4e296711-84fc-4b10-99fa-07e104c3dcf4","block_type":"box","text":"extensive military career, including as a three-star Lieutenant General of the United States Air Force. In","page_number":30,"box":{"x":266,"y":374,"width":596,"height":10}},{"id":"9ddb7acf-37cb-468d-9b52-60e4f7e885cd","block_type":"box","text":"her most recent role, Ms. Harris reported to the Secretary and Chief of Staff of the Air Force on matters","page_number":30,"box":{"x":266,"y":384,"width":600,"height":11}},{"id":"91c64f98-9d52-4143-81d9-f0ff41b1fcca","block_type":"box","text":"concerning Air Force effectiveness, efficiency and the military discipline of active duty, Air Force Reserve","page_number":30,"box":{"x":266,"y":395,"width":606,"height":10}},{"id":"0deaa504-93af-4e8c-baf9-33944e46849f","block_type":"box","text":"and Air National Guard forces. Ms. Harris’s experience on governance matters includes oversight of","page_number":30,"box":{"x":266,"y":405,"width":581,"height":10}},{"id":"e9665ee3-432b-4f7d-8348-b0f9d95dc290","block_type":"box","text":"inspection policy and the inspection and evaluation system for all Air Force nuclear and conventional","page_number":30,"box":{"x":266,"y":415,"width":586,"height":11}},{"id":"40ab46d6-260e-42be-be14-dc41bbd5d7a4","block_type":"box","text":"forces; oversight of Air Force counterintelligence operations and service on the Air Force Intelligence","page_number":30,"box":{"x":266,"y":426,"width":581,"height":10}},{"id":"836f0736-df1e-46bf-8040-c3cfebf35d11","block_type":"box","text":"Oversight Panel; investigation of fraud, waste and abuse; and oversight of criminal investigations and","page_number":30,"box":{"x":266,"y":436,"width":587,"height":10}},{"id":"332f5742-c73b-48cc-bc1b-d58f362182e4","block_type":"box","text":"complaints resolution programs. Ms. Harris is also a director of The Boeing Company. Ms. Harris’s","page_number":30,"box":{"x":266,"y":446,"width":579,"height":11}},{"id":"967bb635-4939-4903-919b-75a8f3a047ba","block_type":"box","text":"independence from the Funds and the Manager enhances her service as a member of the Compliance","page_number":30,"box":{"x":266,"y":457,"width":582,"height":10}},{"id":"373fd764-ba28-408b-9086-06eda89a11ec","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":30,"box":{"x":266,"y":467,"width":319,"height":10}},{"id":"7c9b5b5e-f811-4688-96b5-36b63f9c8184","block_type":"box","text":"J. Phillip Holloman The Board benefits from J. Phillip Holloman’s many years of business and leadership experience as an","page_number":30,"box":{"x":115,"y":483,"width":741,"height":10}},{"id":"73889286-77df-41a4-9764-3c723a646e3e","block_type":"box","text":"executive, director and advisory board member of various public and private companies. In particular,","page_number":30,"box":{"x":266,"y":493,"width":592,"height":10}},{"id":"21cfbac1-4194-4be3-85ae-b8b96ee21d49","block_type":"box","text":"Mr. Holloman’s service as Board Chairman of Vestis Corporation; President and Chief Operating Officer","page_number":30,"box":{"x":266,"y":503,"width":611,"height":10}},{"id":"7ae30a17-6ef5-47f4-9861-1b1a7686dd74","block_type":"box","text":"of Cintas Corporation allows him to provide insight into business trends and conditions. Mr. Holloman’s","page_number":30,"box":{"x":266,"y":514,"width":610,"height":10}},{"id":"29cb00a9-7a91-4d54-b0d8-5844b58e18a0","block_type":"box","text":"knowledge of financial and accounting matters qualifies him to serve as a member of the Audit","page_number":30,"box":{"x":266,"y":524,"width":549,"height":10}},{"id":"4adb1480-c93c-483a-8180-4f982b9ca565","block_type":"box","text":"Committee. Mr. Holloman’s independence from the Funds and the Manager enhances his service as a","page_number":30,"box":{"x":266,"y":534,"width":587,"height":10}},{"id":"33357662-8b9c-45b3-8efc-2996b83498f1","block_type":"box","text":"member of the Governance and Nominating Committee and the Performance Oversight Committee.","page_number":30,"box":{"x":266,"y":545,"width":580,"height":10}},{"id":"27af0d71-7100-4379-875f-cb6d7aa6f248","block_type":"box","text":"Arthur P. Steinmetz The Board benefits from Arthur P. Steinmetz’s many years of business and leadership experience as an","page_number":30,"box":{"x":116,"y":560,"width":741,"height":10}},{"id":"1b3fcfc0-4075-4849-ae47-b12bfe63e1f2","block_type":"box","text":"executive, chairman and director of various companies in the financial industry. Mr. Steinmetz’s service as","page_number":30,"box":{"x":266,"y":570,"width":615,"height":11}},{"id":"e2133133-fa6e-403d-95b5-6a182925ed91","block_type":"box","text":"Chairman, Chief Executive Officer and President of the OppenheimerFunds, Inc. and as Trustee, President","page_number":30,"box":{"x":266,"y":581,"width":616,"height":10}},{"id":"ab0249c6-7284-4e1f-ab44-6cb818d7c36d","block_type":"box","text":"and Principal Executive Officer of certain OppenheimerFunds funds provides insight into the asset","page_number":30,"box":{"x":266,"y":591,"width":569,"height":10}},{"id":"d4edd8c2-7168-41a0-b905-1586769cae86","block_type":"box","text":"management industry. He has also served as a Director of ScotiaBank (U.S.). Mr. Steinmetz’s knowledge","page_number":30,"box":{"x":266,"y":601,"width":604,"height":11}},{"id":"dda9d967-a8e4-4427-8ca1-461b52db586c","block_type":"box","text":"of financial and accounting matters qualifies him to serve as a member of the Audit Committee.","page_number":30,"box":{"x":266,"y":612,"width":553,"height":10}},{"id":"c5213acc-9822-42d7-915a-f57ee9bb9cfb","block_type":"box","text":"Mr. Steinmetz’s independence from the Funds and the Manager enhances his service as Chair of the","page_number":30,"box":{"x":266,"y":622,"width":576,"height":10}},{"id":"e603ddcd-4888-42ad-a0dd-37f57d365111","block_type":"box","text":"Performance Oversight Committee.","page_number":30,"box":{"x":266,"y":632,"width":204,"height":11}},{"id":"d863758f-1369-4c44-a849-3afb1a26773f","block_type":"box","text":"Interested Directors","page_number":30,"box":{"x":116,"y":651,"width":115,"height":8}},{"id":"c560d083-a196-4f10-82e5-980bd2ec69d4","block_type":"box","text":"Robert Fairbairn Robert Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30 years of","page_number":30,"box":{"x":116,"y":666,"width":715,"height":10}},{"id":"54676ced-6745-4f88-9940-651ed53f6878","block_type":"box","text":"experience in finance and asset management. In particular, Mr. Fairbairn’s positions as Vice Chairman of","page_number":30,"box":{"x":266,"y":676,"width":610,"height":11}},{"id":"f7e142f6-d371-47df-8eb9-548749a9bae5","block_type":"box","text":"BlackRock, Inc., Member of BlackRock’s Global Operating Committee and Co-Chair of BlackRock’s","page_number":30,"box":{"x":266,"y":687,"width":588,"height":10}},{"id":"bf79b617-3445-47b8-8ca0-182da9c3da64","block_type":"box","text":"Human Capital Committee provide the Board with a wealth of practical business knowledge and","page_number":30,"box":{"x":266,"y":697,"width":561,"height":10}},{"id":"10b1459f-6921-4250-8733-fa90708a6173","block_type":"box","text":"leadership. In addition, Mr. Fairbairn has global investment management and oversight experience","page_number":30,"box":{"x":266,"y":707,"width":571,"height":11}},{"id":"ecfe5c3a-4c08-4cc8-bfeb-974c9f3a0f1e","block_type":"box","text":"through his former positions as Member of BlackRock’s Global Executive Committee, Global Head of\r\n®","page_number":30,"box":{"x":266,"y":718,"width":594,"height":10}},{"id":"c0df46e2-3469-496c-a5c2-062d4d12aba2","block_type":"box","text":"BlackRock’s Retail and iShares","page_number":30,"box":{"x":266,"y":728,"width":179,"height":8}},{"id":"2d4bf277-a816-4eb5-83a7-8f22c3b6a7cb","block_type":"box","text":"®","page_number":30,"box":{"x":446,"y":728,"width":7,"height":5}},{"id":"665b69e8-c264-464a-8773-19af8efeb6e3","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":30,"box":{"x":458,"y":728,"width":394,"height":10}},{"id":"5f0f12a5-8087-4e66-86cd-933ef117adb1","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s Strategic Partner","page_number":30,"box":{"x":266,"y":738,"width":572,"height":11}},{"id":"da0eca99-a207-42e3-b653-eaf980f13d89","block_type":"box","text":"Program and Strategic Product Management Group. Mr. Fairbairn also serves as a board member for the","page_number":30,"box":{"x":266,"y":749,"width":609,"height":10}},{"id":"0acae3cb-98c8-4a42-9f57-e1c444240ca4","block_type":"box","text":"funds in the BlackRock Multi-Asset Complex.","page_number":30,"box":{"x":266,"y":759,"width":266,"height":10}},{"id":"249e69a5-f783-4efd-8f3d-12cc32599dff","block_type":"box","text":"John M. Perlowski John M. Pe","page_number":30,"box":{"x":115,"y":775,"width":215,"height":10}},{"id":"8a067d96-3ce7-4134-a8fd-c134038f11e9","block_type":"box","text":"rlowski’s experience as Managing Director of BlackRock, Inc. since 2009, as the Head of","page_number":30,"box":{"x":331,"y":775,"width":509,"height":10}},{"id":"a0fd3486-bf30-404d-a87e-58000499d375","block_type":"box","text":"BlackRock Global Accounting and Product Services","page_number":30,"box":{"x":266,"y":785,"width":295,"height":10}},{"id":"f03f3f23-9a8b-4715-96ea-89c509ec8c2b","block_type":"box","text":"since 2009, and as President and Chief Executive","page_number":30,"box":{"x":566,"y":785,"width":279,"height":10}},{"id":"68db6722-a0e0-4e87-9dd2-e1ee65e6c6b1","block_type":"box","text":"Officer of the Funds provides him with a strong understanding of the Funds, their operations, and the","page_number":30,"box":{"x":266,"y":795,"width":580,"height":10}},{"id":"feca65ef-c236-42cc-84af-0db9a6ec5254","block_type":"box","text":"business and regulatory issues facing the Funds. Mr. Perlowski’s prior position as Managing Director and","page_number":30,"box":{"x":266,"y":806,"width":602,"height":10}},{"id":"2fba4001-f415-42be-962e-828977a47f99","block_type":"box","text":"Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, and his former","page_number":30,"box":{"x":266,"y":816,"width":617,"height":10}},{"id":"f4752fce-824a-4a8e-a4cd-d51d1b5e69f0","block_type":"box","text":"service as Treasurer and Senior Vice President of the Goldman Sachs Mutual Funds and as Director of the","page_number":30,"box":{"x":266,"y":826,"width":604,"height":8}},{"id":"f16cbb3e-aa68-43ae-a84e-3e7abe1fa83a","block_type":"box","text":"Goldman Sachs Offshore Funds provides the Board with the benefit of his experience with the management","page_number":30,"box":{"x":266,"y":837,"width":613,"height":10}},{"id":"9f358315-dcc3-42f9-acd4-f58b1c247e57","block_type":"box","text":"practices of other financial companies. Mr. Perlowski also serves as a board member for the funds in the","page_number":30,"box":{"x":266,"y":847,"width":595,"height":10}},{"id":"770ac7dc-8979-444a-9fcd-aa58d7e8482e","block_type":"box","text":"BlackRock Multi-Asset Complex. Mr. Perlowski is","page_number":30,"box":{"x":266,"y":857,"width":289,"height":10}},{"id":"4b25300e-8b50-4597-a582-47984f514b45","block_type":"box","text":"a member of BlackRock’s Global Executive Committee.","page_number":30,"box":{"x":560,"y":857,"width":317,"height":8}},{"id":"871e75f0-27a4-485c-8913-efa33836d73c","block_type":"box","text":"Mr. Perlowski’s experience with BlackRock enhan","page_number":30,"box":{"x":266,"y":868,"width":287,"height":10}},{"id":"0f246d30-f056-4bae-ba26-8fe1c752b91a","block_type":"box","text":"ces his service as a member of the Executive 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Chief Compliance","page_number":33,"box":{"x":445,"y":284,"width":399,"height":10}},{"id":"50bceb6b-7853-40dd-9d90-aaeb124899a4","block_type":"box","text":"Officer of the BlackRock-advised funds in the BlackRock Multi-Asset","page_number":33,"box":{"x":445,"y":294,"width":403,"height":8}},{"id":"e8331b18-d02d-4c3c-a6c3-4d0ab02424dd","block_type":"box","text":"Complex, the BlackRock Fixed-Income Complex and the iShares Complex","page_number":33,"box":{"x":445,"y":304,"width":433,"height":11}},{"id":"50836b73-243d-44a7-9b26-024872c799e7","block_type":"box","text":"since 2023; Deputy Chief Compliance Officer for the BlackRock-advised","page_number":33,"box":{"x":445,"y":315,"width":421,"height":10}},{"id":"939aa772-d935-4a8e-a8cf-b8797e6955c0","block_type":"box","text":"funds in the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income","page_number":33,"box":{"x":445,"y":325,"width":437,"height":10}},{"id":"dca96264-ae1d-4887-82d9-b43a69066b56","block_type":"box","text":"Complex and the iShares Complex from 2014 to 2023.","page_number":33,"box":{"x":445,"y":335,"width":319,"height":11}},{"id":"8451d6b6-af0b-4d4c-aa0a-a6219deba4ac","block_type":"box","text":"Lisa Belle","page_number":33,"box":{"x":116,"y":351,"width":54,"height":8}},{"id":"44da736b-5199-4348-9f0d-daf416ed09da","block_type":"box","text":"1968","page_number":33,"box":{"x":117,"y":362,"width":28,"height":7}},{"id":"70be0338-c337-44cd-b892-dd08e1cbf6ca","block_type":"box","text":"Anti-Money Laundering","page_number":33,"box":{"x":262,"y":351,"width":140,"height":10}},{"id":"59fdbb3a-dcea-45b6-a676-8d64bd085975","block_type":"box","text":"Compliance Officer","page_number":33,"box":{"x":262,"y":361,"width":113,"height":10}},{"id":"1543c17d-46ec-4439-a0b9-b8a2abd0246c","block_type":"box","text":"(Since 2019)","page_number":33,"box":{"x":262,"y":372,"width":71,"height":9}},{"id":"de8af95d-c1e0-4ac5-b984-eb1972488708","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2019; 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Amounts shown may include shares as to which a Director has indirect beneficial ownership,","page_number":33,"box":{"x":116,"y":525,"width":762,"height":12}},{"id":"5b9e6ea6-5039-4d95-9677-06cfc9f59c71","block_type":"box","text":"such as through participation in certain family accounts, 529 college savings plan interests, or similar","page_number":33,"box":{"x":116,"y":540,"width":700,"height":13}},{"id":"62f69caa-a2ee-4124-a52a-39fb6759cd62","block_type":"box","text":"arrangements where the Director has beneficial","page_number":33,"box":{"x":116,"y":556,"width":327,"height":12}},{"id":"69a92232-f350-4226-a056-c69f3c471451","block_type":"box","text":"economic interest but not a direct ownership interest.","page_number":33,"box":{"x":448,"y":556,"width":368,"height":12}},{"id":"deddf06b-476c-45b4-88be-7b857f45d2c0","block_type":"box","text":"Name","page_number":33,"box":{"x":158,"y":605,"width":35,"height":7}},{"id":"bed8cc53-05ff-4667-8b8b-4b7961e8b3ce","block_type":"box","text":"Dollar Range","page_number":33,"box":{"x":643,"y":594,"width":77,"height":10}},{"id":"70822c0f-8701-476f-a88b-712e177c496f","block_type":"box","text":"in the Funds","page_number":33,"box":{"x":646,"y":604,"width":71,"height":8}},{"id":"764d8310-4264-4275-8f58-23f1d0428b30","block_type":"box","text":"Aggregate Dollar","page_number":33,"box":{"x":778,"y":583,"width":99,"height":11}},{"id":"b1d3fffe-a6d9-42cb-bbfb-87647201ab03","block_type":"box","text":"Range in","page_number":33,"box":{"x":802,"y":594,"width":51,"height":10}},{"id":"299e86b3-13f0-4360-9011-06f35bb31d26","block_type":"box","text":"Supervised Funds*","page_number":33,"box":{"x":774,"y":604,"width":106,"height":10}},{"id":"cc95ed22-462c-4201-98a4-125bfa515522","block_type":"box","text":"Independent Directors:","page_number":33,"box":{"x":116,"y":626,"width":134,"height":10}},{"id":"b84f3877-c4e6-453f-9429-f3238b75081a","block_type":"box","text":"Cynthia L. 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Perlowski None Over $100,000","page_number":33,"box":{"x":129,"y":785,"width":742,"height":11}},{"id":"bd463256-067e-4f29-afc4-57a1600b2606","block_type":"box","text":"* Includes share equivalents owned under the deferred compensation plan in the Supervised Funds by certain Independent","page_number":33,"box":{"x":133,"y":812,"width":715,"height":10}},{"id":"b96648e8-eeca-48ac-92c0-27f7b4d30ec0","block_type":"box","text":"Directors who have participated in the deferred compensation plan of the Supervised Funds.","page_number":33,"box":{"x":153,"y":822,"width":533,"height":10}},{"id":"d16be8ec-5105-4dbc-96b3-0028bb570a2b","block_type":"box","text":"As of May 31, 2026, the Directors and officers of the Funds as a group directly or indirectly beneficially","page_number":33,"box":{"x":116,"y":851,"width":721,"height":13}},{"id":"b5142d24-64db-4bdc-9ebf-befdb9bad984","block_type":"box","text":"owned an aggregate of less than 1% of any class of the outstanding shares of each Fund. 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In","page_number":34,"box":{"x":116,"y":192,"width":745,"height":13}},{"id":"7ffa88fe-5934-47da-a09a-8d504517d629","block_type":"box","text":"addition, the Chair of the Board and the Vice Chair of the Board are paid an additional annual retainer of","page_number":34,"box":{"x":116,"y":208,"width":736,"height":13}},{"id":"2bcb9428-b2f6-49cd-aed0-dc2ae73eaec3","block_type":"box","text":"$140,000 and $84,000, respectively. The Chairs of the Audit Committee, Performance Oversight Committee,","page_number":34,"box":{"x":117,"y":223,"width":759,"height":13}},{"id":"8d9dd087-1aa4-4b04-b5fc-621d28170ece","block_type":"box","text":"Compliance Committee, Governance and Nominating C","page_number":34,"box":{"x":117,"y":239,"width":392,"height":13}},{"id":"fadb4a3f-e49f-45e7-9f81-1d432ca35476","block_type":"box","text":"ommittee, and Securities Lending Committee are paid","page_number":34,"box":{"x":510,"y":239,"width":372,"height":13}},{"id":"4e9d14f2-e7fe-4f04-be96-d42a5f8976c5","block_type":"box","text":"an additional annual retainer of $55,000, $42,500, $50,","page_number":34,"box":{"x":116,"y":254,"width":390,"height":13}},{"id":"b09d4ad4-72c9-4b84-9fde-190a32378628","block_type":"box","text":"000, $42,500, and $20,000, respectively. Each of the","page_number":34,"box":{"x":507,"y":254,"width":367,"height":13}},{"id":"a294eb03-9ff8-47ef-af88-28b5efd5a318","block_type":"box","text":"other members of the Audit Committee, Compliance C","page_number":34,"box":{"x":116,"y":270,"width":382,"height":13}},{"id":"4bf153d0-f003-4e9d-87ca-7c702153d7a4","block_type":"box","text":"ommittee, Governance and Nominating Committee,","page_number":34,"box":{"x":499,"y":270,"width":362,"height":13}},{"id":"8c77a897-f16e-482f-822d-a50aa75947e0","block_type":"box","text":"and Securities Lending Committee are paid an additional annual retainer of $30,000, $25,000, $25,000 and","page_number":34,"box":{"x":116,"y":285,"width":751,"height":13}},{"id":"a0a177d4-16f7-496c-b98a-c0a8b87e3165","block_type":"box","text":"$15,000, respectively, for his or her service on such committee. An Independent Director may receive","page_number":34,"box":{"x":117,"y":300,"width":700,"height":14}},{"id":"192f8f74-ef0f-402a-85b8-13f556ddaf9a","block_type":"box","text":"additional compensation for his or her service as a member or Chair, as applicable, of one or more ad hoc","page_number":34,"box":{"x":116,"y":316,"width":735,"height":13}},{"id":"c6d70f74-d1d8-4991-9038-c32784aabb02","block_type":"box","text":"committees of the Board. The Funds will pay a pro rata portion quarterly (based on relative net assets) of the","page_number":34,"box":{"x":116,"y":332,"width":755,"height":13}},{"id":"be05ba56-7c6b-496f-8377-78adc07a83e2","block_type":"box","text":"foregoing Director fees paid by the funds in the BlackRock Fixed-Income Complex.","page_number":34,"box":{"x":116,"y":347,"width":578,"height":13}},{"id":"e79db7a7-1bf1-437e-89c9-e2facb4e99d9","block_type":"box","text":"The Independent Directors have agreed that a maximum of 50% of each Independent Director’s total","page_number":34,"box":{"x":116,"y":370,"width":705,"height":12}},{"id":"c7846b0a-03cc-426c-bc98-783432288b8c","block_type":"box","text":"compensation paid by funds in the BlackRock Fixed-Income Complex may be deferred pursuant to the","page_number":34,"box":{"x":116,"y":385,"width":714,"height":13}},{"id":"dc4bf7ba-1fb0-421b-b1ab-16e75f71489c","block_type":"box","text":"BlackRock Fixed-Income Complex’s deferred compen","page_number":34,"box":{"x":116,"y":401,"width":374,"height":12}},{"id":"83c68a0b-296c-49c4-8a00-1bcc6d648313","block_type":"box","text":"sation plan. Under the deferred compensation plan,","page_number":34,"box":{"x":491,"y":401,"width":356,"height":12}},{"id":"3676511f-fea1-4cae-a50a-b2d77783a424","block_type":"box","text":"deferred amounts earn a return for the Independent Directors as though equivalent dollar amounts had been","page_number":34,"box":{"x":116,"y":416,"width":752,"height":13}},{"id":"32723b79-5637-4cb6-9de8-ec9f9b00d40c","block_type":"box","text":"invested in shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent","page_number":34,"box":{"x":116,"y":432,"width":721,"height":12}},{"id":"20a98704-5e92-4fde-8fc7-e570c74e7ec1","block_type":"box","text":"Directors. This has approximately the same economic effect for the Independent Directors as if they had","page_number":34,"box":{"x":116,"y":447,"width":722,"height":13}},{"id":"6f8ead9d-b0bd-458c-8b8f-4d5eed7b3a0f","block_type":"box","text":"invested the deferred amounts in such funds in the BlackRock Fixed-Income Complex. The deferred","page_number":34,"box":{"x":116,"y":463,"width":693,"height":12}},{"id":"d1627408-0c14-4a8f-98c3-b4094ab96e05","block_type":"box","text":"compensation plan is not funded and obligations thereunder represent general unsecured claims against the","page_number":34,"box":{"x":116,"y":478,"width":742,"height":13}},{"id":"2d9f24b5-959b-48e8-95e6-a35e385a57e1","block_type":"box","text":"general assets of a fund and are recorded as a liability for accounting purposes.","page_number":34,"box":{"x":116,"y":494,"width":546,"height":12}},{"id":"c74bf7ed-5ed5-401a-80f6-e5f60ee796a8","block_type":"box","text":"The following table sets forth the compensation paid to the Directors by the Company, on behalf of the","page_number":34,"box":{"x":116,"y":516,"width":718,"height":13}},{"id":"1377d0eb-f8fd-474d-b947-99ba751b17d5","block_type":"box","text":"Funds, for the fiscal year ended December 31, 2025, and the aggregate compensation, including deferred","page_number":34,"box":{"x":116,"y":531,"width":726,"height":13}},{"id":"f308720c-f902-4c78-91cc-d91f2bfa715b","block_type":"box","text":"compensation amounts, paid to them by all BlackRock-advised Funds for the calendar year ended","page_number":34,"box":{"x":116,"y":547,"width":679,"height":13}},{"id":"4db31e18-2ea5-419a-b3d8-acd6d73d0dea","block_type":"box","text":"December 31, 2025.","page_number":34,"box":{"x":116,"y":562,"width":141,"height":13}},{"id":"2591908f-130f-4a19-b270-efe532da306c","block_type":"box","text":"Name","page_number":34,"box":{"x":158,"y":641,"width":35,"height":7}},{"id":"014925a8-ade9-4bdb-95f1-e175a6f6204e","block_type":"box","text":"1","page_number":34,"box":{"x":194,"y":641,"width":3,"height":4}},{"id":"7fb6d10b-caf3-4acf-8b36-785ed9d7b8f3","block_type":"box","text":"Compensation","page_number":34,"box":{"x":335,"y":609,"width":84,"height":10}},{"id":"dbe2907f-4048-4d66-9696-13144d364a89","block_type":"box","text":"from High","page_number":34,"box":{"x":347,"y":619,"width":60,"height":11}},{"id":"3b1fec5a-5130-4600-a133-1a7f2dbecfa6","block_type":"box","text":"Yield V.I.","page_number":34,"box":{"x":349,"y":630,"width":55,"height":8}},{"id":"051be28f-d967-40c3-a3d3-2e7a1f08d9d6","block_type":"box","text":"Fund","page_number":34,"box":{"x":362,"y":640,"width":29,"height":8}},{"id":"94e321b9-429b-4d4c-85d4-9b50416de617","block_type":"box","text":"Compensation","page_number":34,"box":{"x":453,"y":609,"width":84,"height":10}},{"id":"62e3d955-7667-4a22-a85e-4420f2e571e9","block_type":"box","text":"from Total","page_number":34,"box":{"x":463,"y":619,"width":64,"height":8}},{"id":"b2ae3902-6dce-4011-a548-07b6346956cd","block_type":"box","text":"Return V.I.","page_number":34,"box":{"x":462,"y":630,"width":65,"height":8}},{"id":"33f970a6-d4df-4448-890d-3f632d008a1b","block_type":"box","text":"Fund","page_number":34,"box":{"x":480,"y":640,"width":30,"height":8}},{"id":"62e6acad-eb8a-4027-9cfb-560657c7aaeb","block_type":"box","text":"Estimated","page_number":34,"box":{"x":574,"y":599,"width":57,"height":8}},{"id":"f4ac68be-38da-407a-bf4f-88ffbcb504f0","block_type":"box","text":"Annual","page_number":34,"box":{"x":582,"y":609,"width":42,"height":8}},{"id":"905cabde-277c-4539-92e4-d4caf424a2e8","block_type":"box","text":"Benefits","page_number":34,"box":{"x":580,"y":619,"width":45,"height":8}},{"id":"4a56ccb6-7c0b-49e9-988b-1c55c49aa668","block_type":"box","text":"upon","page_number":34,"box":{"x":588,"y":633,"width":30,"height":7}},{"id":"f6fd283a-2393-4dca-b21c-42a9af54911c","block_type":"box","text":"Retirement","page_number":34,"box":{"x":571,"y":640,"width":64,"height":8}},{"id":"e279b227-88d9-491a-adf1-af1e1835e594","block_type":"box","text":"Aggregate","page_number":34,"box":{"x":687,"y":589,"width":58,"height":10}},{"id":"26bdb8e4-825d-4cab-82df-6e388f637cee","block_type":"box","text":"Compensation","page_number":34,"box":{"x":675,"y":599,"width":84,"height":10}},{"id":"04e68a2b-6362-4f1c-89bd-693b6fd6b704","block_type":"box","text":"from the Funds","page_number":34,"box":{"x":672,"y":609,"width":88,"height":8}},{"id":"15697470-e847-4b4b-8aa4-9b0a6dcd0078","block_type":"box","text":"and Other","page_number":34,"box":{"x":687,"y":619,"width":59,"height":8}},{"id":"70b13105-e818-4632-910a-18d7b185b032","block_type":"box","text":"BlackRock","page_number":34,"box":{"x":685,"y":630,"width":67,"height":8}},{"id":"4a5b42a1-b4d8-4764-8b1d-46c0a29b8bee","block_type":"box","text":"Advised Funds","page_number":34,"box":{"x":668,"y":640,"width":84,"height":8}},{"id":"fd977781-f8ab-4cfc-9ae7-392987496d7d","block_type":"box","text":"2,3","page_number":34,"box":{"x":753,"y":641,"width":11,"height":5}},{"id":"578bafac-bb85-4332-991e-78620bd60cb3","block_type":"box","text":"Independent Directors:","page_number":34,"box":{"x":116,"y":662,"width":134,"height":10}},{"id":"ef7a4cd6-6b02-471f-830c-5c42f178c7f5","block_type":"box","text":"Cynthia L. Egan","page_number":34,"box":{"x":130,"y":677,"width":94,"height":11}},{"id":"7b8362f0-4b89-4818-b12e-e95b51585204","block_type":"box","text":"4","page_number":34,"box":{"x":224,"y":678,"width":5,"height":5}},{"id":"ef1718fb-7140-4aab-8584-fd423d1cf492","block_type":"box","text":"$1,824.87 $1,563.41 None $580,000","page_number":34,"box":{"x":348,"y":677,"width":396,"height":10}},{"id":"d0b3a9c8-fd7a-498f-b361-0f407d292259","block_type":"box","text":"Lorenzo A. Flores","page_number":34,"box":{"x":130,"y":693,"width":102,"height":8}},{"id":"25565254-2245-4474-9352-d59d7fd9705f","block_type":"box","text":"5","page_number":34,"box":{"x":233,"y":694,"width":4,"height":4}},{"id":"27b8dbf2-3427-4607-bef8-cc0a9dea279b","block_type":"box","text":"$1,484.84 $1,277.70 None $400,000","page_number":34,"box":{"x":348,"y":693,"width":396,"height":10}},{"id":"ea3c3c19-404e-4836-8f37-6a2e08989b48","block_type":"box","text":"Stayce D. Harris $1,469.18 $1,263.73 None $395,000","page_number":34,"box":{"x":130,"y":708,"width":614,"height":11}},{"id":"47423d88-71c1-46ff-ae51-9c3d4b15885f","block_type":"box","text":"J. Phillip Holloman $1,571.34 $1,349.52 None $425,000","page_number":34,"box":{"x":129,"y":724,"width":615,"height":10}},{"id":"195b74c2-7cdb-4ecc-b938-074b9bacc9f7","block_type":"box","text":"R. Glenn Hubbard $2,029.73 $1,735.22 None $560,000","page_number":34,"box":{"x":130,"y":739,"width":614,"height":10}},{"id":"7c3623b2-4e86-4d0e-97c7-2431f4c8deb3","block_type":"box","text":"W. Carl Kester $2,085.57 $1,782.33 None $671,500","page_number":34,"box":{"x":129,"y":755,"width":615,"height":10}},{"id":"9d24f250-a373-4d3a-a88e-bcef96ee1f1d","block_type":"box","text":"Catherine A. Lynch","page_number":34,"box":{"x":130,"y":770,"width":112,"height":11}},{"id":"47951d2d-30cf-4533-aa6b-e6e2717634a8","block_type":"box","text":"6","page_number":34,"box":{"x":243,"y":771,"width":4,"height":5}},{"id":"fc57ada8-eb1d-43e6-aada-711f61060da6","block_type":"box","text":"$1,888.81 $1,617.16 None $610,000","page_number":34,"box":{"x":348,"y":770,"width":396,"height":10}},{"id":"db4717b2-7c16-475a-bf53-2d527858e016","block_type":"box","text":"Arthur P. Steinmetz $1,681.68 $1,442.36 None $537,500","page_number":34,"box":{"x":129,"y":786,"width":615,"height":10}},{"id":"12da3608-622f-4691-99ab-b4c4bf0f8a49","block_type":"box","text":"Interested Directors:","page_number":34,"box":{"x":116,"y":804,"width":119,"height":8}},{"id":"ccada922-110e-4b1c-81ba-7f87e756a5d5","block_type":"box","text":"Robert Fairbairn None None None None","page_number":34,"box":{"x":130,"y":820,"width":602,"height":8}},{"id":"ea2337f7-6368-4746-ba79-792409a1e316","block_type":"box","text":"John M. Perlowski None None None None","page_number":34,"box":{"x":129,"y":835,"width":603,"height":10}},{"id":"5e2cb8a9-b9ee-4da1-a8c8-dc01a04b0aaa","block_type":"box","text":"1","page_number":34,"box":{"x":128,"y":861,"width":4,"height":5}},{"id":"a19e3ecc-0188-4a6b-95d9-2b005a71ea2b","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Director receives compensation see the Biographical","page_number":34,"box":{"x":146,"y":861,"width":664,"height":10}},{"id":"4db3be8f-9cac-411a-af2a-700462d8de1d","block_type":"box","text":"Information Chart beginning on page I-15.","page_number":34,"box":{"x":146,"y":871,"width":248,"height":10}},{"id":"528859dc-8f78-41db-8f96-7de89d9953df","block_type":"box","text":"I-18","page_number":34,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"bff193e8-c6dc-4e71-9394-a33df00a9a6e","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":34,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"08fa4914-7371-425f-85f7-5713c02b6b1d","block_type":"box","text":"2","page_number":35,"box":{"x":128,"y":76,"width":4,"height":5}},{"id":"979988f6-d191-4d6b-9917-4b83cd8e71ad","block_type":"box","text":"For the Independent Directors, this amount represents the aggregate compensation earned from the funds in the BlackRock","page_number":35,"box":{"x":146,"y":76,"width":713,"height":10}},{"id":"df933871-1445-4495-bb0b-a99b8a19f0e3","block_type":"box","text":"Fixed-Income Complex during the calendar year ended December 31, 2024. Of this amount, Mr. Flores, Ms. Harris,\r\n$$$$","page_number":35,"box":{"x":146,"y":86,"width":676,"height":10}},{"id":"4a8222ff-b374-442c-999f-1454ea05a4ce","block_type":"box","text":"pg y\r\nMr. Holloman, Dr. Hubbard, Dr. Kester, Ms. Lynch and Mr. Steinmetz deferred $200,000, $197,500, $212,500, $280,000,\r\n$$$","page_number":35,"box":{"x":146,"y":96,"width":721,"height":10}},{"id":"343f0f18-2a07-4a50-8632-9918dab2985a","block_type":"box","text":"y\r\n$546,859, $603,900 and $268,750, respectively, pursuant to the BlackRock Fixed-Income Complex’s deferred compensation","page_number":35,"box":{"x":147,"y":106,"width":726,"height":11}},{"id":"a6a2bf8b-7468-45f0-a053-8c64b56a831e","block_type":"box","text":"plan.","page_number":35,"box":{"x":146,"y":117,"width":28,"height":10}},{"id":"8b4af2c6-ecc7-4d5c-8d4a-dd2471b76e1d","block_type":"box","text":"3","page_number":35,"box":{"x":128,"y":128,"width":4,"height":5}},{"id":"4b793e6e-e5be-4efd-b160-474ec8f868e2","block_type":"box","text":"Total amount of deferred compensation payable by the BlackRock Fixed-Income Complex to Mr. Flores, Ms. Harris,\r\n$$$$","page_number":35,"box":{"x":146,"y":127,"width":681,"height":11}},{"id":"dca100c6-ddef-4d60-b6ba-801a4b4f5c4c","block_type":"box","text":"ppyy p\r\nMr. Holloman, Dr. Hubbard, Dr. Kester, Ms. Lynch and Mr. Steinmetz is $1,055,218, $1,032,387, $1,101,752, $5,907,215,\r\n$$$","page_number":35,"box":{"x":146,"y":137,"width":727,"height":11}},{"id":"63e20ec2-24ec-43f2-999d-980748ece4e9","block_type":"box","text":"y\r\n$2,544,830, $720,927 and $603,379, respectively, as of December 31, 2024. Ms. Egan did not participate in the deferred","page_number":35,"box":{"x":147,"y":148,"width":704,"height":10}},{"id":"a5bafd64-4fe9-4f1c-b927-438e167432ec","block_type":"box","text":"compensation plan as of December 31, 2024.","page_number":35,"box":{"x":146,"y":158,"width":262,"height":11}},{"id":"ff13a53f-42e2-4469-8ce6-0c8d5eef96e8","block_type":"box","text":"4","page_number":35,"box":{"x":128,"y":169,"width":4,"height":5}},{"id":"8073d30b-5d40-41b2-a520-047a5f4395e1","block_type":"box","text":"Cynthia Egan became chair of the Securities Lending Committee, effective March 9, 2026.","page_number":35,"box":{"x":147,"y":169,"width":521,"height":10}},{"id":"d016e404-f244-41bd-98db-847ad9f29882","block_type":"box","text":"5","page_number":35,"box":{"x":128,"y":180,"width":4,"height":4}},{"id":"e2951808-73c3-4f68-b4ce-6f2c4b5400ee","block_type":"box","text":"Lorenzo Flores became chair of the Audit Committee, effective March 9, 2026.","page_number":35,"box":{"x":146,"y":179,"width":457,"height":10}},{"id":"abc209ec-36e3-4a27-946d-55baceafd0c0","block_type":"box","text":"6","page_number":35,"box":{"x":128,"y":190,"width":4,"height":5}},{"id":"c70f8334-6cff-4c26-b2ec-6c0773de7690","block_type":"box","text":"Ms. Lynch resigned as a Director of the Fund effective as of March 9, 2026.","page_number":35,"box":{"x":146,"y":189,"width":439,"height":11}},{"id":"7607513e-1eea-4c4c-928e-364e1b3b4aa7","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":35,"box":{"x":116,"y":216,"width":478,"height":13}},{"id":"872358ea-02df-4dd2-b069-d3c8f1ad42bc","block_type":"box","text":"Management Agreement","page_number":35,"box":{"x":116,"y":242,"width":172,"height":12}},{"id":"35cf9433-975c-4749-8e60-aaf111fe7766","block_type":"box","text":"The Company has entered into an investment management agreement relating to the Funds with the Manager","page_number":35,"box":{"x":116,"y":267,"width":763,"height":13}},{"id":"46ba72db-5961-4e4c-9a55-762e4cea7e93","block_type":"box","text":"(the “Management Agreement”), an indirect, wholly owned subsidiary of BlackRock, Inc. The principal","page_number":35,"box":{"x":117,"y":283,"width":721,"height":13}},{"id":"cca10445-4a7c-4624-9cc9-4405892e3516","block_type":"box","text":"business address of the Manager is 100 Bellevue Parkway, Wilmington, Delaware 19809.","page_number":35,"box":{"x":116,"y":298,"width":620,"height":13}},{"id":"ffc059e7-69af-425d-90a3-75b63df3b552","block_type":"box","text":"Management Fee.","page_number":35,"box":{"x":116,"y":323,"width":122,"height":11}},{"id":"c54ebfb3-54dd-4e4c-bbf1-49f980ba6145","block_type":"box","text":"As compensation for its services to the Company and the Funds, the Manager receives a fee","page_number":35,"box":{"x":244,"y":322,"width":633,"height":12}},{"id":"f6c74dba-d2b0-4691-a94b-a38c7d76d768","block_type":"box","text":"at the end of each month from the Company.","page_number":35,"box":{"x":116,"y":337,"width":314,"height":13}},{"id":"4d618c17-cc88-4bdc-b842-75c1d3cc580e","block_type":"box","text":"BlackRock High Yield V.I. Fund and BlackRock Total Return V.I. Fund","page_number":35,"box":{"x":116,"y":366,"width":527,"height":12}},{"id":"5c00d6df-47b4-409b-a681-ca5ec3c39d5e","block_type":"box","text":"The Manager has contractually agreed to waive the management fee with respect to any portion of each","page_number":35,"box":{"x":116,"y":391,"width":722,"height":13}},{"id":"43d87080-5675-48c1-ae54-ebec24194d06","block_type":"box","text":"Fund’s assets estimated to be attributable to investme","page_number":35,"box":{"x":116,"y":407,"width":369,"height":10}},{"id":"1d935eae-199c-43a0-9c42-0fdf6d5e64cf","block_type":"box","text":"nts in other equity and fixed-income mutual funds and","page_number":35,"box":{"x":486,"y":407,"width":378,"height":13}},{"id":"2fd146fa-2a86-4e77-90ee-3d842608208a","block_type":"box","text":"exchange-traded funds managed by the Manager or its affiliates that have a contractual management fee,","page_number":35,"box":{"x":116,"y":422,"width":728,"height":13}},{"id":"a4ab6fe7-f6cf-495c-9f80-5ad5d91e9e87","block_type":"box","text":"through June 30, 2027 with respect to each Fund. BlackRock has contractually agreed to waive its","page_number":35,"box":{"x":116,"y":438,"width":683,"height":13}},{"id":"adc773e8-a23f-46a0-994a-6fe254caf784","block_type":"box","text":"management fees by the amount of investment advisory fees each Fund pays to BlackRock indirectly through","page_number":35,"box":{"x":116,"y":453,"width":757,"height":13}},{"id":"28a933a5-f507-4f26-b396-0a5e0933ba1d","block_type":"box","text":"its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2027. The","page_number":35,"box":{"x":116,"y":469,"width":735,"height":13}},{"id":"9af9a124-1167-4fb4-a532-560018131a1b","block_type":"box","text":"contractual agreements may be terminated upon 90 days’ notice by a majority of the Independent Directors or","page_number":35,"box":{"x":116,"y":484,"width":765,"height":13}},{"id":"5fbae88e-a4ad-466e-b914-4340231b05fd","block_type":"box","text":"by a vote of a majority of the outstanding voting securities of each Fund.","page_number":35,"box":{"x":116,"y":500,"width":503,"height":13}},{"id":"037171f2-7c88-405f-9849-f3e04b4c608d","block_type":"box","text":"With respect to Class I shares of each Fund, the Manager has agreed to contractually waive and/or reimburse","page_number":35,"box":{"x":116,"y":523,"width":757,"height":13}},{"id":"6a845ddc-079c-4ceb-a825-83769c4fc533","block_type":"box","text":"fees or expenses in order to limit Total Annual Fund Operating Expenses (excluding Dividend Expense,","page_number":35,"box":{"x":116,"y":539,"width":718,"height":13}},{"id":"bdc89d09-5d90-4ff1-9c5d-0c0b3fe3b1b3","block_type":"box","text":"Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses (as defined in the Funds’","page_number":35,"box":{"x":116,"y":554,"width":761,"height":13}},{"id":"d46f3778-8b77-4584-967d-0b672aaf4ffd","block_type":"box","text":"Prospectuses)) to 0.60% of average net assets of BlackRock Total Return V.I. Fund and 1.25% of average net","page_number":35,"box":{"x":116,"y":570,"width":763,"height":13}},{"id":"e9130fa7-e2ac-4723-8b44-9e8073a8c48c","block_type":"box","text":"assets of BlackRock High Yield V.I. Fund. The contractual agreement is in effect through June 30, 2027 with","page_number":35,"box":{"x":116,"y":585,"width":757,"height":13}},{"id":"b9061988-7557-460d-8988-b7a6af53e8a0","block_type":"box","text":"respect to each Fund. The Manager has also contractually agreed to waive and/or reimburse fees or expenses","page_number":35,"box":{"x":116,"y":601,"width":753,"height":13}},{"id":"73d74c3c-832b-4ef7-9a91-2cf1ec672323","block_type":"box","text":"in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements","page_number":35,"box":{"x":116,"y":616,"width":753,"height":13}},{"id":"8e612ac6-e0e1-439a-a99e-02f70825927d","block_type":"box","text":"(including Interest Expense, and excluding Dividend Expense, Acquired Fund Fees and Expenses and certain","page_number":35,"box":{"x":117,"y":632,"width":750,"height":13}},{"id":"5b0974f5-01e5-499f-b346-24ab0406d077","block_type":"box","text":"other Fund expenses) to 0.60% (for Class I Shares) of average daily net assets of BlackRock Total Return V.I.","page_number":35,"box":{"x":116,"y":647,"width":760,"height":13}},{"id":"8cf544b0-2f6a-4ba7-bb1e-773ba685bcf4","block_type":"box","text":"Fund through June 30, 2027. Each contractual agreement may be terminated, with respect to each Fund,","page_number":35,"box":{"x":116,"y":663,"width":727,"height":13}},{"id":"bfbdb083-d634-43ba-89b6-109710b15e94","block_type":"box","text":"upon 90 days’ notice by a majority of the Independent Directors or by a vote of a majority of the outstanding","page_number":35,"box":{"x":116,"y":678,"width":759,"height":13}},{"id":"af5088fd-268e-4590-bee8-50710590f160","block_type":"box","text":"voting securities of each Fund.","page_number":35,"box":{"x":116,"y":694,"width":209,"height":13}},{"id":"1d71ee04-2acb-4192-9fc5-ca517d489c61","block_type":"box","text":"With respect to Class III shares of each Fund, the Manager has agreed to contractually waive and/or","page_number":35,"box":{"x":116,"y":717,"width":694,"height":13}},{"id":"996bb197-5d61-4383-b8bb-ac57777d774b","block_type":"box","text":"reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses (excluding Dividend","page_number":35,"box":{"x":116,"y":733,"width":725,"height":12}},{"id":"53521fad-5ae0-41e6-9fa8-3b1ed0fc81de","block_type":"box","text":"Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses, and excluding","page_number":35,"box":{"x":116,"y":748,"width":760,"height":13}},{"id":"9bc9ba0a-6e3b-48a0-a905-a8bb393cd56f","block_type":"box","text":"Distribution Fees) to 1.50% of average daily net assets. The contractual agreement is in effect through","page_number":35,"box":{"x":116,"y":764,"width":708,"height":12}},{"id":"4a9b61b2-e073-4fce-a4a1-3e7bf1cbb4cf","block_type":"box","text":"June 30, 2027 with respect to each Fund. The contractual agreement may be terminated, with respect to each","page_number":35,"box":{"x":115,"y":779,"width":759,"height":13}},{"id":"24195450-0c29-4b2d-ad9a-2d13e1ed9a3e","block_type":"box","text":"Fund, upon 90 days’ notice by a majority of the Independent Directors or by a vote of a majority of the","page_number":35,"box":{"x":116,"y":795,"width":717,"height":12}},{"id":"67fde81f-d83a-433c-ab2b-b0f94e551d72","block_type":"box","text":"outstanding voting securities of each Fund.","page_number":35,"box":{"x":116,"y":810,"width":296,"height":13}},{"id":"11fa2428-e9e0-4f0e-b745-c8d5ce2a56fd","block_type":"box","text":"With respect to Class I shares of each Fund, BlackRock has contractually agreed to reimburse fees in order to","page_number":35,"box":{"x":116,"y":833,"width":757,"height":13}},{"id":"f94350c5-f227-4ae1-9f71-191c5661bc05","block_type":"box","text":"limit certain operational and recordkeeping fees to 0.06% of average daily net assets for BlackRock High","page_number":35,"box":{"x":116,"y":849,"width":730,"height":13}},{"id":"b37a1ad4-3f43-4ed6-b60f-a4388b78121f","block_type":"box","text":"Yield V.I. Fund and 0% of average daily net assets for BlackRock Total Return V.I. Fund through June 30,","page_number":35,"box":{"x":116,"y":864,"width":743,"height":13}},{"id":"2833d797-c125-4f3e-a54c-4bcd143a0b14","block_type":"box","text":"I-19","page_number":35,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"6af191f0-283b-49cf-af52-3e1749b99b1c","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":35,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"788386ef-1fac-44c0-a744-b058d4b987f6","block_type":"box","text":"2027. With respect to Class III shares of each Fund, BlackRock has contractually agreed to reimburse fees in","page_number":36,"box":{"x":116,"y":79,"width":752,"height":13}},{"id":"4a50064b-b65d-41f0-a18d-0c46e0ba32e9","block_type":"box","text":"order to limit certain operational and recordkeeping fees to 0.05% of average daily net assets for BlackRock","page_number":36,"box":{"x":116,"y":94,"width":751,"height":13}},{"id":"c3bc5225-67f0-4c3e-baa1-b19a9cbbacc8","block_type":"box","text":"High Yield V.I. Fund and 0.06% of average daily net assets for BlackRock Total Return V.I. Fund through","page_number":36,"box":{"x":116,"y":110,"width":743,"height":13}},{"id":"c5aca2b5-3ad7-462e-9454-87b555f79b04","block_type":"box","text":"June 30, 2027.","page_number":36,"box":{"x":115,"y":126,"width":103,"height":12}},{"id":"42011757-9460-47fe-a38f-9f2c5b1cc96d","block_type":"box","text":"The Manager agreed to the same fee waivers and expense caps described in this section with respect to the","page_number":36,"box":{"x":116,"y":149,"width":736,"height":12}},{"id":"3daeed2b-c3b4-4faf-bf96-8a08c745a080","block_type":"box","text":"Predecessor Funds.","page_number":36,"box":{"x":116,"y":164,"width":130,"height":10}},{"id":"26df9459-ceb5-4298-8fe2-df94908627a1","block_type":"box","text":"The Management Agreement relating to the Funds, unless earlier terminated as described below, will continue","page_number":36,"box":{"x":116,"y":187,"width":763,"height":13}},{"id":"30a19045-2406-4eb8-a5d6-cf6789635742","block_type":"box","text":"in effect for an initial two year period and from year to year thereafter if approved annually (a) by the Board","page_number":36,"box":{"x":116,"y":203,"width":752,"height":13}},{"id":"9fb681ab-88a3-43d4-9a4f-7264964b19bb","block_type":"box","text":"of Directors of the Company or by a majority of the outstanding shares of the respective Funds, and (b) by a","page_number":36,"box":{"x":116,"y":218,"width":752,"height":13}},{"id":"a7068e79-ae54-40ae-a058-901835afd88c","block_type":"box","text":"majority of the directors who are not parties to such contracts or interested persons (as defined in the","page_number":36,"box":{"x":116,"y":234,"width":701,"height":13}},{"id":"27c0d7de-19dd-488d-8f45-c4e3b4a83954","block_type":"box","text":"Investment Company Act) of any such party. The Management Agreement is not assignable and may be","page_number":36,"box":{"x":116,"y":249,"width":722,"height":13}},{"id":"26dd2745-e3fe-4c1f-ab5d-89d88607eba4","block_type":"box","text":"terminated without penalty on 60 days’ written notice at the option of either party or by the vote of the","page_number":36,"box":{"x":116,"y":265,"width":717,"height":13}},{"id":"cc574496-67e1-4ec9-a062-3678b7f06021","block_type":"box","text":"shareholders of the respective Funds.","page_number":36,"box":{"x":116,"y":280,"width":254,"height":13}},{"id":"8e680eef-cea2-4c22-8c7b-7074b54e830a","block_type":"box","text":"Pursuant to the Management Agreement, the Manager m","page_number":36,"box":{"x":116,"y":304,"width":398,"height":12}},{"id":"faa5f618-f660-4f84-9e0d-02706e99b192","block_type":"box","text":"ay from time to time, in its sole discretion to the","page_number":36,"box":{"x":515,"y":304,"width":332,"height":12}},{"id":"fefeb9e1-51c5-43d4-9de2-ca5246e6f462","block_type":"box","text":"extent permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates","page_number":36,"box":{"x":116,"y":319,"width":758,"height":13}},{"id":"57738a45-f337-4fc7-8d76-579d311696b0","block_type":"box","text":"of the Manager, to perform investment advisory services with respect to the Fund. In addition, the Manager","page_number":36,"box":{"x":116,"y":335,"width":748,"height":12}},{"id":"36312c94-7090-4352-8cc0-b85ebfa4be3d","block_type":"box","text":"may delegate certain of its investment advisory fu","page_number":36,"box":{"x":116,"y":350,"width":334,"height":13}},{"id":"8fba8385-ae44-4a03-95ec-9f9a6fb6a6d3","block_type":"box","text":"functions under the Management Agreement to one or more of","page_number":36,"box":{"x":450,"y":350,"width":433,"height":13}},{"id":"226d3dbd-b697-407d-8f6d-74b7d5cc60f8","block_type":"box","text":"its affiliates to the extent permitted by applicable law. The Manager may terminate any or all sub-advisers or","page_number":36,"box":{"x":116,"y":366,"width":755,"height":12}},{"id":"52f7f510-9d51-4427-95d1-47f1932987fa","block_type":"box","text":"such delegation arrangements in its sole discretion a","page_number":36,"box":{"x":116,"y":381,"width":359,"height":13}},{"id":"e047bdce-fc7d-411f-be56-ec1672f5e37e","block_type":"box","text":"t any time to the extent permitted by applicable law.","page_number":36,"box":{"x":476,"y":381,"width":362,"height":13}},{"id":"164cc3ef-1186-4599-b5b5-6dc9af079377","block_type":"box","text":"The Manager entered into sub-advisory agreements with BlackRock International Limited (“BIL”) and","page_number":36,"box":{"x":116,"y":404,"width":714,"height":13}},{"id":"5ccedd99-dc08-423c-a89c-e83434a61a9a","block_type":"box","text":"BlackRock (Singapore) Limited (“BSL” and together with BIL, the “Sub-Advisers”) with respect to the Total","page_number":36,"box":{"x":116,"y":420,"width":754,"height":13}},{"id":"19098dad-7f51-43b6-9d66-0a7ee87982ce","block_type":"box","text":"Return V.I. Fund. Under each sub-advisory agreement, the Sub-Adviser receives for the services it provides for","page_number":36,"box":{"x":116,"y":435,"width":762,"height":13}},{"id":"e1cedf30-fe76-4140-b66f-9e93ccf0183e","block_type":"box","text":"that portion of Total Return V.I. Fund for which the Sub-Adviser serves as sub-adviser a monthly fee at an","page_number":36,"box":{"x":116,"y":451,"width":740,"height":13}},{"id":"52856cc0-ee8d-4cc7-9c1f-b5390093a109","block_type":"box","text":"annual rate equal to a percentage of the management fee paid to the Manager under the Management","page_number":36,"box":{"x":116,"y":466,"width":706,"height":13}},{"id":"dfce14bb-4bb3-4d4c-80c2-d0c274a0b79f","block_type":"box","text":"Agreement with respect to Total Return V.I. Fund.","page_number":36,"box":{"x":116,"y":482,"width":351,"height":13}},{"id":"67140eb6-384a-4cbc-9275-459f5b7e67ad","block_type":"box","text":"The Manager has entered into a separate sub-advisory","page_number":36,"box":{"x":116,"y":505,"width":377,"height":13}},{"id":"63742301-df60-4531-9e1a-cf7cec861e3a","block_type":"box","text":"agreement with BIL with respect to the High Yield V.I.","page_number":36,"box":{"x":498,"y":505,"width":379,"height":13}},{"id":"993cef67-f1d8-4ad0-9963-736582aaecb4","block_type":"box","text":"Fund. Under the sub-advisory agreement, the Manager pays BIL for services it provides for that portion of the","page_number":36,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"84cf1a19-d018-4d2e-b8a8-c250ca45a520","block_type":"box","text":"High Yield V.I. Fund for which BIL acts as sub-adviser a fee equal to a percentage of the management fee paid","page_number":36,"box":{"x":116,"y":536,"width":766,"height":13}},{"id":"4f8f5f48-13c1-47e7-9b7a-2a87f75c91b0","block_type":"box","text":"to the Manager under the Management Agreement with respect to the High Yield V.I. Fund.","page_number":36,"box":{"x":116,"y":552,"width":642,"height":12}},{"id":"f37364d9-99f4-4cfb-9ce8-6acc4a6ce79d","block_type":"box","text":"The following tables show the investment advisory fees paid to the Manager (which includes amounts paid by","page_number":36,"box":{"x":116,"y":575,"width":763,"height":13}},{"id":"1e069779-8b93-4ba1-a106-7b509620d4f3","block_type":"box","text":"the Manager to the Sub-Advisers) and the amounts waived and/or reimbursed by the Manager with respect to","page_number":36,"box":{"x":116,"y":590,"width":762,"height":13}},{"id":"8e4826f1-0ca2-44ff-b174-d014408b5036","block_type":"box","text":"each Fund for the periods indicated:","page_number":36,"box":{"x":116,"y":606,"width":249,"height":13}},{"id":"79f1f9a8-ac9c-4e19-8b7f-4a30bde14e0d","block_type":"box","text":"Fees Paid to the","page_number":36,"box":{"x":364,"y":634,"width":91,"height":8}},{"id":"c8a9f452-ff52-40e7-8081-49b1e46d4082","block_type":"box","text":"Manager For the Year","page_number":36,"box":{"x":345,"y":644,"width":129,"height":10}},{"id":"3187d482-9040-4e2e-bdd5-de50cc007ee1","block_type":"box","text":"Ended December 31,","page_number":36,"box":{"x":349,"y":654,"width":121,"height":10}},{"id":"43a1fa5c-c148-4a3b-b5b5-f3adcf9d5052","block_type":"box","text":"Fees Waived by the","page_number":36,"box":{"x":548,"y":634,"width":112,"height":10}},{"id":"e54acc0a-2490-4eb9-9d77-b4e79b90cb9f","block_type":"box","text":"Manager For the Year","page_number":36,"box":{"x":539,"y":644,"width":129,"height":10}},{"id":"b9e28613-36a4-4436-892e-b7b1701dda50","block_type":"box","text":"Ended December 31,","page_number":36,"box":{"x":544,"y":654,"width":120,"height":10}},{"id":"40ea8007-e39c-4015-929e-f5c0cd5136ba","block_type":"box","text":"Fees Reimbursed by the","page_number":36,"box":{"x":718,"y":634,"width":137,"height":10}},{"id":"eff3cdef-69e7-4e06-9c64-142fdf562516","block_type":"box","text":"Manager For the Year","page_number":36,"box":{"x":722,"y":644,"width":129,"height":10}},{"id":"c2d600d7-fb1b-447d-ba92-02cb37edbbcf","block_type":"box","text":"Ended December 31,","page_number":36,"box":{"x":727,"y":654,"width":120,"height":10}},{"id":"5a1d9b1c-0ef0-4735-a395-e1c07a0029bc","block_type":"box","text":"2025","page_number":36,"box":{"x":321,"y":669,"width":28,"height":8}},{"id":"62cedd40-8086-4b2a-b7f8-24594d8df859","block_type":"box","text":"2024","page_number":36,"box":{"x":395,"y":669,"width":29,"height":8}},{"id":"0681762c-ec8a-46c6-aa4d-dc8ab357299c","block_type":"box","text":"2023","page_number":36,"box":{"x":469,"y":669,"width":29,"height":8}},{"id":"a17d70c8-6c71-42fd-bd55-31a1ecf4cd44","block_type":"box","text":"2025","page_number":36,"box":{"x":534,"y":669,"width":28,"height":8}},{"id":"9c4d7371-473b-4d13-8ba7-88bd7a093379","block_type":"box","text":"2024","page_number":36,"box":{"x":589,"y":669,"width":29,"height":8}},{"id":"2ba5558d-f023-4c4a-b1c2-06229e595ce1","block_type":"box","text":"2023","page_number":36,"box":{"x":644,"y":669,"width":29,"height":8}},{"id":"160fb9aa-38ac-46b5-a396-3e324a18a86f","block_type":"box","text":"2025","page_number":36,"box":{"x":709,"y":669,"width":29,"height":8}},{"id":"989634e6-08ac-41de-bbec-a09e300ab924","block_type":"box","text":"2024","page_number":36,"box":{"x":778,"y":669,"width":29,"height":8}},{"id":"bbb8dbbf-18cf-4130-937f-b509f9aec60d","block_type":"box","text":"2023","page_number":36,"box":{"x":841,"y":669,"width":28,"height":8}},{"id":"d9e65321-1b07-4b2c-9825-7e472fe2c2cd","block_type":"box","text":"High Yield V.I. Fund $4,775,794 $4,113,067 $3,372,101 $21,853 $15,177 $14,231 $1,126,757 $849,847 $734,413","page_number":36,"box":{"x":116,"y":688,"width":766,"height":10}},{"id":"1ebf2524-6d10-4c42-8f1a-a377ac72e8f6","block_type":"box","text":"Total Return V.I. 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securities","page_number":38,"box":{"x":116,"y":358,"width":759,"height":13}},{"id":"d0034cfb-c46c-4ef0-8011-ca5eac309556","block_type":"box","text":"of any Fund because no portfolio manager had invested in the type of insurance contract through which the","page_number":38,"box":{"x":116,"y":373,"width":747,"height":13}},{"id":"8153a35e-606d-4405-98c0-a8d177963d40","block_type":"box","text":"Funds must be purchased.","page_number":38,"box":{"x":116,"y":389,"width":180,"height":13}},{"id":"f49783b9-d18e-4a44-887c-e1e3bbf94e95","block_type":"box","text":"Portfolio Manager Compensation Overview","page_number":38,"box":{"x":136,"y":417,"width":324,"height":13}},{"id":"cad09810-d9c5-4d41-ba2c-9055f075bde7","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of December 31, 2025.","page_number":38,"box":{"x":116,"y":443,"width":666,"height":13}},{"id":"8cd9c1d2-560e-400e-8149-f8203b187f78","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio","page_number":38,"box":{"x":116,"y":474,"width":370,"height":13}},{"id":"f75bccc8-4473-48a5-bf4b-4b0cbb4acd9a","block_type":"box","text":"managers, its competitive compensation and its career","page_number":38,"box":{"x":491,"y":474,"width":375,"height":13}},{"id":"09d26e5e-b300-45f4-8d37-85849ac91a70","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may","page_number":38,"box":{"x":116,"y":490,"width":745,"height":12}},{"id":"4c1acff4-eda9-4f5d-9972-ced353384cdc","block_type":"box","text":"include a variety of components and may vary from year to year based on a number of factors. The principal","page_number":38,"box":{"x":116,"y":505,"width":755,"height":13}},{"id":"2df2fb6b-e515-4d9e-ad7e-df86734dc6ac","block_type":"box","text":"components of compensation include a base salary, a performance-based discretionary bonus, participation in","page_number":38,"box":{"x":116,"y":521,"width":762,"height":12}},{"id":"a546615e-2f59-4ab2-a445-d73dbc48b491","block_type":"box","text":"various benefits programs and one or more of the incentive compensation programs established by","page_number":38,"box":{"x":116,"y":536,"width":684,"height":13}},{"id":"3494f4e1-8581-4bac-8cd0-84f4a30abc91","block_type":"box","text":"BlackRock.","page_number":38,"box":{"x":116,"y":552,"width":79,"height":10}},{"id":"8d10abb3-4ba3-40a2-ace8-d2a244680dc5","block_type":"box","text":"Base Compensation.","page_number":38,"box":{"x":116,"y":583,"width":142,"height":12}},{"id":"29d23f61-387f-4beb-967c-c2ed76a2097d","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with","page_number":38,"box":{"x":264,"y":583,"width":594,"height":12}},{"id":"ade00403-c318-413a-9eca-134426f55b6d","block_type":"box","text":"the firm.","page_number":38,"box":{"x":116,"y":598,"width":58,"height":10}},{"id":"031b2e6b-51fc-419e-be71-fa36fcad397f","block_type":"box","text":"Discretionary Incentive Compensation","page_number":38,"box":{"x":136,"y":627,"width":279,"height":12}},{"id":"67380fa5-abda-4919-a41f-410ae792d574","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the performance of BlackRock,","page_number":38,"box":{"x":116,"y":652,"width":735,"height":13}},{"id":"f46e308f-d3d8-4908-a91e-e95b98905c95","block_type":"box","text":"Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance,","page_number":38,"box":{"x":116,"y":668,"width":715,"height":13}},{"id":"568fef44-77dd-48b6-a31c-04065bf2fb4a","block_type":"box","text":"including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio","page_number":38,"box":{"x":116,"y":683,"width":708,"height":13}},{"id":"d96940f6-9a62-4c90-94ef-7933c77ac5c2","block_type":"box","text":"manager relative to predetermined benchmarks, and the individual’s performance and contribution to the","page_number":38,"box":{"x":116,"y":699,"width":731,"height":13}},{"id":"cad0d085-0825-4d42-990a-f1eaef31a28d","block_type":"box","text":"overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the same as the","page_number":38,"box":{"x":116,"y":714,"width":749,"height":13}},{"id":"1fc2042b-b89d-41ca-ac2f-91e49073c0fe","block_type":"box","text":"benchmark or benchmarks against which the perfor","page_number":38,"box":{"x":116,"y":730,"width":360,"height":13}},{"id":"be50756a-dd09-405e-9731-1f9e967fd5fb","block_type":"box","text":"mance of the Funds or other accounts managed by the","page_number":38,"box":{"x":476,"y":730,"width":376,"height":13}},{"id":"7a8ceae2-1b98-4f7f-8522-9f3a69e4d4ea","block_type":"box","text":"portfolio managers are measured. Among other things, BlackRock’s Chief Investment Officers make a","page_number":38,"box":{"x":116,"y":745,"width":708,"height":13}},{"id":"3cf6ed33-970c-4ac6-ad62-48424af5cd2c","block_type":"box","text":"subjective determination with respect to each portfolio ma","page_number":38,"box":{"x":116,"y":761,"width":404,"height":13}},{"id":"1a2a51da-7df4-4ec3-877f-a6576cad340a","block_type":"box","text":"nager’s compensation based on the performance of","page_number":38,"box":{"x":521,"y":761,"width":354,"height":13}},{"id":"cffafbad-58a9-4db7-856c-8d1e06b31bcb","block_type":"box","text":"the Funds and other accounts managed by each portfolio manager relative to the various benchmarks.","page_number":38,"box":{"x":116,"y":776,"width":707,"height":13}},{"id":"5b354a06-f618-4c78-b714-6aa1c61d2447","block_type":"box","text":"I-22","page_number":38,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"97dd3ac5-90af-4f22-af21-e5d82fb79225","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":38,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"82c8d208-82c3-47df-b119-95938e9e8dd3","block_type":"box","text":"Performance of fixed income funds is measured on a pre-tax and/or after-tax basis over various time","page_number":39,"box":{"x":116,"y":79,"width":696,"height":13}},{"id":"32bbc60f-738a-434a-a0eb-8ec81930a0aa","block_type":"box","text":"periods including 1-, 3- and 5- year periods, as applicable. With respect to these portfolio managers, such","page_number":39,"box":{"x":116,"y":94,"width":729,"height":13}},{"id":"f850e2e6-15bd-452a-abb9-55ad1a06f2f0","block_type":"box","text":"benchmarks for the Funds and other accounts are:","page_number":39,"box":{"x":116,"y":110,"width":348,"height":10}},{"id":"dbf706e1-59af-42c2-ac57-d451073cd1f8","block_type":"box","text":"Portfolio Manager","page_number":39,"box":{"x":124,"y":138,"width":108,"height":10}},{"id":"a24fbc13-d66e-4dc5-8898-e9096fcd72b3","block_type":"box","text":"Funds Managed","page_number":39,"box":{"x":286,"y":138,"width":93,"height":10}},{"id":"949037c2-e64a-4ebc-8c29-05947cb2d340","block_type":"box","text":"Benchmarks","page_number":39,"box":{"x":619,"y":138,"width":71,"height":8}},{"id":"06ed3438-1d5e-4cba-abd3-30c2cdafe495","block_type":"box","text":"Mitchell Garfin, CFA","page_number":39,"box":{"x":116,"y":157,"width":124,"height":10}},{"id":"2c0db017-fbac-4b6f-ac7a-3ff245f104e4","block_type":"box","text":"David Delbos","page_number":39,"box":{"x":116,"y":167,"width":78,"height":8}},{"id":"d861c6a6-ad2b-4be9-a97d-1f52a76ae3f5","block_type":"box","text":"High Yield V.I. Fund A combination of market-based indices (e.g., the Bloomberg U.S. Corporate","page_number":39,"box":{"x":266,"y":157,"width":599,"height":10}},{"id":"95fb5a98-817b-4012-b409-b55b84222e29","block_type":"box","text":"High Yield 2% Issuer Cap Index), certain customized indices and certain fund","page_number":39,"box":{"x":426,"y":167,"width":451,"height":11}},{"id":"4ffadb1d-eef1-4d96-9900-81c3fabc07b6","block_type":"box","text":"industry peer groups.","page_number":39,"box":{"x":426,"y":178,"width":122,"height":10}},{"id":"107db1e6-583b-4962-bdaf-ef3365f9da0f","block_type":"box","text":"Rick Rieder","page_number":39,"box":{"x":116,"y":193,"width":68,"height":8}},{"id":"23044901-1e3f-439d-a873-ec15fc3edc75","block_type":"box","text":"Chi Chen","page_number":39,"box":{"x":116,"y":203,"width":55,"height":9}},{"id":"0b3c7b75-1efd-40f8-88eb-5d38e3afecdf","block_type":"box","text":"Sam Summers","page_number":39,"box":{"x":116,"y":214,"width":81,"height":8}},{"id":"385306f0-3abe-42e4-902e-ced57c11ae51","block_type":"box","text":"Russell Brownback","page_number":39,"box":{"x":116,"y":224,"width":111,"height":8}},{"id":"d6fd36e6-c168-4160-bc28-face1b626a2c","block_type":"box","text":"Total Return V.I. Fund A combination of market-based indices (e.g., the Bloomberg U.S. Aggregate","page_number":39,"box":{"x":266,"y":193,"width":597,"height":10}},{"id":"3d5abbbd-bbc8-4d46-89a8-67af19f6fe8d","block_type":"box","text":"Bond Index), certain customized indices and certain fund industry peer groups.","page_number":39,"box":{"x":426,"y":203,"width":455,"height":11}},{"id":"27607cfa-9581-4383-90a0-b023fbbfb748","block_type":"box","text":"Siddharth Mehta Total Return V.I. Fund A combination of market-based indices (e.g. FTSE Mortgage Index,","page_number":39,"box":{"x":116,"y":240,"width":701,"height":10}},{"id":"7da7800e-018d-4243-9c15-30607360d7ec","block_type":"box","text":"Bloomberg GNMA MBS Index), certain customized indices and certain fund","page_number":39,"box":{"x":426,"y":250,"width":442,"height":10}},{"id":"914ccdf8-d445-4a12-bd3a-894f7ab8ab53","block_type":"box","text":"industry peer groups.","page_number":39,"box":{"x":426,"y":260,"width":122,"height":11}},{"id":"d19ac41c-7690-44f5-be32-680dcaac0007","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":39,"box":{"x":116,"y":282,"width":378,"height":12}},{"id":"e1012aee-5864-4365-8367-ded5878a5db5","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":39,"box":{"x":500,"y":282,"width":374,"height":12}},{"id":"b5079a80-09f0-40c6-b18a-78a9292b8bb0","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash","page_number":39,"box":{"x":116,"y":297,"width":735,"height":13}},{"id":"791f164b-6aa7-4b66-a7e4-270ae85baec1","block_type":"box","text":"awards that notionally track the return of certain BlackRock investment products.","page_number":39,"box":{"x":116,"y":313,"width":569,"height":12}},{"id":"db1080ac-0e85-4efb-b1ba-d1f82808cc32","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":39,"box":{"x":116,"y":336,"width":740,"height":13}},{"id":"cda1c055-edce-4a27-a907-219ddf82be6b","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":39,"box":{"x":116,"y":351,"width":760,"height":13}},{"id":"be104168-2112-4461-bc08-408a8a1b4170","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary","page_number":39,"box":{"x":116,"y":367,"width":721,"height":13}},{"id":"88368e90-1d3d-4c00-959e-245a4908f56d","block_type":"box","text":"incentive compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio","page_number":39,"box":{"x":116,"y":382,"width":767,"height":13}},{"id":"9c72504a-efc5-4151-9284-8774a516e7cc","block_type":"box","text":"manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over","page_number":39,"box":{"x":116,"y":398,"width":754,"height":13}},{"id":"359fb95e-00dc-40fb-9aef-22f00e497c01","block_type":"box","text":"future periods. In some cases, additional deferred BlackRock, Inc. stock may be granted to certain key","page_number":39,"box":{"x":116,"y":413,"width":707,"height":13}},{"id":"c5bfec50-a559-4738-b182-c51005786f45","block_type":"box","text":"employees as part of a long-term incentive award to aid in retention, align interests with long-term","page_number":39,"box":{"x":116,"y":429,"width":683,"height":13}},{"id":"05a1ec51-d561-4674-bd61-36f709a41654","block_type":"box","text":"shareholders and motivate performance. Deferred BlackRock, Inc. stock awards are generally granted in the","page_number":39,"box":{"x":116,"y":444,"width":749,"height":13}},{"id":"832f6c13-5a7f-4291-90dc-2126bbcb193d","block_type":"box","text":"form of BlackRock, Inc. restricted stock units that vest pursuant to the terms of the applicable plan and, once","page_number":39,"box":{"x":116,"y":460,"width":757,"height":13}},{"id":"f963fb33-8231-4d61-8e37-690d7d456c46","block_type":"box","text":"vested, settle in BlackRock, Inc. common stock. The portfolio managers of these Funds have deferred","page_number":39,"box":{"x":116,"y":475,"width":701,"height":13}},{"id":"2ff432c5-1ede-4b8e-bcdb-bc178d6094d0","block_type":"box","text":"BlackRock, Inc. stock awards.","page_number":39,"box":{"x":116,"y":491,"width":209,"height":12}},{"id":"bd64f9a3-9d89-4fcb-a88e-a72c45e32ee8","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":39,"box":{"x":116,"y":514,"width":762,"height":13}},{"id":"90b2161b-c3b7-4190-8e93-7fe9b24f79ed","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they","page_number":39,"box":{"x":116,"y":530,"width":750,"height":12}},{"id":"82cdcc19-7b9b-48c9-8659-5485b41a4e6a","block_type":"box","text":"manage, which provides direct alignment of portfolio","page_number":39,"box":{"x":116,"y":545,"width":370,"height":13}},{"id":"0f2f66d9-6388-4966-b5e2-f7e002d31846","block_type":"box","text":"manager discretionary incentive compensation with","page_number":39,"box":{"x":491,"y":545,"width":357,"height":13}},{"id":"3f2ca20c-371f-4435-9db3-df22ec80c60e","block_type":"box","text":"investment product results. Deferred cash awards vest ratably over a number of years and, once vested, settle","page_number":39,"box":{"x":116,"y":561,"width":754,"height":12}},{"id":"c4bb51a7-7ac0-4062-9928-42b72ac7a2b2","block_type":"box","text":"in the form of cash. Only portfolio managers who manage specified products and whose total compensation is","page_number":39,"box":{"x":116,"y":576,"width":766,"height":13}},{"id":"d8dc52ec-ce73-45b8-8944-8c024210e00f","block_type":"box","text":"above a specified threshold are eligible to participate in the deferred cash award program.","page_number":39,"box":{"x":116,"y":592,"width":620,"height":12}},{"id":"49401091-4597-454f-a052-a8129ce5cc17","block_type":"box","text":"Other Compensation Benefits.","page_number":39,"box":{"x":116,"y":615,"width":211,"height":13}},{"id":"a0262e8d-a484-4358-a376-343004da6364","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":39,"box":{"x":332,"y":615,"width":538,"height":13}},{"id":"0cc4ea04-b88e-4f5c-9175-934948c8f927","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":39,"box":{"x":116,"y":630,"width":569,"height":13}},{"id":"bf0c83aa-70c1-43e0-b74f-b6f973ac64a5","block_type":"box","text":"Incentive Savings Plans","page_number":39,"box":{"x":116,"y":654,"width":161,"height":13}},{"id":"64bb56ad-a7ec-4041-888a-7fba2d7c9a30","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which","page_number":39,"box":{"x":282,"y":654,"width":521,"height":13}},{"id":"8a05c433-ce8d-42d5-a72e-946c16d0b084","block_type":"box","text":"BlackRock employees are eligible to participate, incl","page_number":39,"box":{"x":116,"y":669,"width":361,"height":13}},{"id":"92666425-82f7-444a-a6c5-4ba2550f00f7","block_type":"box","text":"uding a 401(k) plan, the BlackRock Retirement Savings","page_number":39,"box":{"x":478,"y":669,"width":385,"height":13}},{"id":"91905890-b37a-4594-b760-c1afed13c3a5","block_type":"box","text":"Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution","page_number":39,"box":{"x":116,"y":685,"width":678,"height":13}},{"id":"7c46b7e7-8eaf-4148-9a6b-602acc04402d","block_type":"box","text":"components of the RSP include a company match equal to 50% of the first 8% of eligible pay contributed to","page_number":39,"box":{"x":116,"y":700,"width":755,"height":13}},{"id":"bdc0670f-5ce0-4fb4-bef1-6b14ccaf75ef","block_type":"box","text":"the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5% of eligible","page_number":39,"box":{"x":116,"y":715,"width":701,"height":14}},{"id":"13857b98-e621-43bc-b936-5bc45a14220b","block_type":"box","text":"compensation up to the Internal Revenue Service limit ($350,000 for 2025). 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The Funds","page_number":41,"box":{"x":116,"y":317,"width":747,"height":12}},{"id":"a61d1f67-4058-4f12-aedb-6a928032355f","block_type":"box","text":"may borrow under the Credit Agreement to meet shareholder redemptions and for other lawful purposes.","page_number":41,"box":{"x":116,"y":332,"width":732,"height":13}},{"id":"8ac80d41-c353-44c6-ac06-163168dd72ad","block_type":"box","text":"However, the Funds may not borrow under the Credit Agreement for leverage. The Funds may borrow up to","page_number":41,"box":{"x":116,"y":348,"width":757,"height":12}},{"id":"cfd88c1b-2aee-445e-bfc1-8e3f1c65e3fb","block_type":"box","text":"the maximum amount allowable under the Funds’ current Prospectus and SAI, subject to various other legal,","page_number":41,"box":{"x":116,"y":363,"width":754,"height":13}},{"id":"601200b6-3b88-49d1-87fb-d8d92aaa86a0","block_type":"box","text":"regulatory or contractual limits. 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The Plan permits the","page_number":41,"box":{"x":116,"y":541,"width":727,"height":13}},{"id":"055213b1-85ab-4f72-bd63-3c65a5c1f68f","block_type":"box","text":"Company, on behalf of each Fund, to pay to each Insurance Company or a broker-dealer affiliate thereof","page_number":41,"box":{"x":117,"y":557,"width":729,"height":13}},{"id":"af9fa47c-93d9-4a37-a2e4-42e917656ce3","block_type":"box","text":"(“Insurance Company Affiliate”) that enters into an","page_number":41,"box":{"x":117,"y":572,"width":359,"height":13}},{"id":"159e8a40-b2b0-4408-9977-ee3bb6efd19c","block_type":"box","text":"agreement with the Company to provide distribution","page_number":41,"box":{"x":481,"y":572,"width":372,"height":13}},{"id":"1370d7be-94cf-42bb-ad8d-be73edba5b1b","block_type":"box","text":"related and/or shareholder services to Contract owners, a fee, at the end of each month, of up to 0.25% of the","page_number":41,"box":{"x":116,"y":588,"width":764,"height":13}},{"id":"21b38b21-1814-44ad-ad7b-93630ceccfac","block_type":"box","text":"average daily net asset value of the Class III Common Stock of the Fund held by such Insurance Company.","page_number":41,"box":{"x":116,"y":603,"width":738,"height":13}},{"id":"7bb6f825-df7f-4385-962a-1c509039c26e","block_type":"box","text":"Such services include, but are not limited to, (a) the printing and mailing of Fund prospectuses, statements of","page_number":41,"box":{"x":116,"y":619,"width":754,"height":13}},{"id":"e78dc619-40d0-466c-88e5-372b83fcdc4c","block_type":"box","text":"additional information, any supplements thereto and shareholder reports for existing and prospective","page_number":41,"box":{"x":116,"y":634,"width":702,"height":13}},{"id":"795fb79a-2b1f-4159-8703-9f6e28834794","block_type":"box","text":"Contract owners, (b) services relating to the devel","page_number":41,"box":{"x":117,"y":650,"width":342,"height":13}},{"id":"ac4fe4e9-c363-40d8-a226-cf87d9b6c1fb","block_type":"box","text":"opment, preparation, printing and mailing of Company","page_number":41,"box":{"x":460,"y":650,"width":385,"height":13}},{"id":"67f83cb6-7505-4a34-aec0-344a5920fe8a","block_type":"box","text":"advertisements, sales literature and other promoti","page_number":41,"box":{"x":116,"y":665,"width":343,"height":13}},{"id":"66c19687-fd0a-4df1-9bff-1840d292a361","block_type":"box","text":"onal materials describing and/or relating to the Fund and","page_number":41,"box":{"x":460,"y":665,"width":395,"height":13}},{"id":"40058db4-4252-4724-bd3c-8e75b623fcc0","block_type":"box","text":"including materials intended for use within the Insuran","page_number":41,"box":{"x":116,"y":681,"width":380,"height":13}},{"id":"585fedbc-dbf8-4d28-9e19-f3c45cedff18","block_type":"box","text":"ce Company, or for broker-dealer only use or retail use,","page_number":41,"box":{"x":497,"y":681,"width":385,"height":13}},{"id":"6af80587-c2e5-4f2f-90f0-14a01b166fd9","block_type":"box","text":"(c) holding seminars and sales meetings designed to promote the distribution of the Class III Shares of the","page_number":41,"box":{"x":117,"y":696,"width":728,"height":13}},{"id":"94adc3b9-0bde-4073-bad1-ce5c3e0e1f7e","block_type":"box","text":"Fund, (d) obtaining information and providing explan","page_number":41,"box":{"x":116,"y":712,"width":375,"height":13}},{"id":"0dc649a6-ee64-4832-b155-da4c350480d6","block_type":"box","text":"ations to Contract owners regarding the investment","page_number":41,"box":{"x":492,"y":712,"width":357,"height":13}},{"id":"94fa12c5-fdcd-488d-b098-8832c347ca2d","block_type":"box","text":"objectives and policies and other information about the Company and the Fund, including the performance of","page_number":41,"box":{"x":116,"y":727,"width":764,"height":13}},{"id":"89b84243-ab9e-4d3d-a81c-1bcb1d72dbbc","block_type":"box","text":"the Fund, (e) training sales personnel regarding the Company and the Fund, (f) compensating sales personnel","page_number":41,"box":{"x":116,"y":743,"width":754,"height":13}},{"id":"48e32a7b-711e-4267-ae32-e18f7737e589","block_type":"box","text":"in connection with the allocation of cash values and","page_number":41,"box":{"x":116,"y":758,"width":360,"height":10}},{"id":"ac5cd6e6-7c41-4e54-be5d-94c1fee348a8","block_type":"box","text":"premiums of the Contract owners to the Company,","page_number":41,"box":{"x":480,"y":758,"width":356,"height":13}},{"id":"76af4281-10c4-4e04-a146-926dee23dda8","block_type":"box","text":"(g) providing personal services and/or maintenance of the accounts of the Contract owners with respect to","page_number":41,"box":{"x":117,"y":774,"width":734,"height":13}},{"id":"f2c95cdc-3b41-4083-b612-8499d9b40ac7","block_type":"box","text":"Class III Shares of the Fund attributable to such accounts, and (h) financing any other activity that the","page_number":41,"box":{"x":117,"y":789,"width":706,"height":13}},{"id":"dfd1c541-f031-48bf-b8b1-310d55d2b687","block_type":"box","text":"Company’s Board of Directors determines is primarily intended to result in the sale of Class III Shares.","page_number":41,"box":{"x":117,"y":805,"width":707,"height":13}},{"id":"c14d5336-a070-46e4-bcf7-fc8c9595e92e","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of the Manager, acts as the Fund’s","page_number":41,"box":{"x":116,"y":820,"width":743,"height":13}},{"id":"3bc9052f-aaa0-4ea3-ac64-30b1f41dc4ab","block_type":"box","text":"sole distributor. For the fiscal year ended December 31, 2025, the Funds paid fees pursuant to the Plan to","page_number":41,"box":{"x":116,"y":836,"width":731,"height":13}},{"id":"0ee57fbd-f3b5-48ec-861b-f7234b88e7d9","block_type":"box","text":"various Insurance Companies and Insurance Company Affiliates providing services under the Plan as","page_number":41,"box":{"x":116,"y":851,"width":699,"height":13}},{"id":"5026cd2f-262a-411e-ae08-62b7304da3bd","block_type":"box","text":"described below.","page_number":41,"box":{"x":116,"y":867,"width":115,"height":10}},{"id":"27c17f75-7e16-468f-9ad2-93cd7b8335f3","block_type":"box","text":"I-25","page_number":41,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"5d414d28-cc48-412a-9603-169a95845ab3","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":41,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"90bcdac1-9997-4207-a012-c2c1da069116","block_type":"box","text":"Distribution Fees:","page_number":42,"box":{"x":116,"y":79,"width":128,"height":10}},{"id":"e76af277-7a23-4154-9b8f-011fc4beb884","block_type":"box","text":"Class III Shares","page_number":42,"box":{"x":136,"y":117,"width":88,"height":8}},{"id":"52b14706-a466-43ed-8422-32fed9153aca","block_type":"box","text":"Fees Paid","page_number":42,"box":{"x":645,"y":107,"width":53,"height":8}},{"id":"a4514011-e339-4032-ae09-7f19e20617df","block_type":"box","text":"to BRIL","page_number":42,"box":{"x":648,"y":118,"width":47,"height":7}},{"id":"38aa6824-76ea-41d4-b1af-f258c9e8331b","block_type":"box","text":"High Yield V.I. Fund $1,670,174","page_number":42,"box":{"x":136,"y":136,"width":569,"height":11}},{"id":"998c89bc-46f9-4f54-978b-cb9d9b1fba2a","block_type":"box","text":"Total Return V.I. Fund $1,816,169","page_number":42,"box":{"x":136,"y":152,"width":569,"height":10}},{"id":"e0e31e26-8f89-47eb-b813-b94dafd45bf1","block_type":"box","text":"Distribution Arrangements.","page_number":42,"box":{"x":116,"y":173,"width":191,"height":13}},{"id":"14cfe749-337d-4bbe-b5d8-f0ad4c0256d2","block_type":"box","text":"The Company has entered into a distribution agreement (the “Distribution","page_number":42,"box":{"x":312,"y":173,"width":519,"height":13}},{"id":"de07ed2a-8f3c-4dc7-940d-ebf1b579668b","block_type":"box","text":"Agreement”) with BRIL with respect to the sale of the Fund’s s","page_number":42,"box":{"x":116,"y":189,"width":436,"height":12}},{"id":"a74adaaa-4312-4df2-b617-deac88f59c95","block_type":"box","text":"hares to the Distributor for resale to Insurance","page_number":42,"box":{"x":552,"y":189,"width":322,"height":10}},{"id":"f44a451e-e423-47b9-99bb-3e360eedfbed","block_type":"box","text":"Companies’ accounts. Such shares will be sold at their","page_number":42,"box":{"x":117,"y":204,"width":374,"height":13}},{"id":"02c28da5-4848-4d86-9465-aac890dd9e98","block_type":"box","text":"respective net asset values and therefore will involve no","page_number":42,"box":{"x":496,"y":204,"width":382,"height":13}},{"id":"c582cb6f-2b66-48d0-aa33-67fa415d74ec","block_type":"box","text":"sales charge. BRIL is an affiliate of the Manager.","page_number":42,"box":{"x":116,"y":220,"width":336,"height":12}},{"id":"076c505a-7736-435f-a70f-8d348ec8d204","block_type":"box","text":"The Distribution Agreement is subject to the same renew","page_number":42,"box":{"x":116,"y":243,"width":394,"height":13}},{"id":"cb3cdde3-ad6c-441a-876a-7a235e05b6b4","block_type":"box","text":"al requirements and termination provisions as the","page_number":42,"box":{"x":511,"y":243,"width":343,"height":13}},{"id":"29965994-f687-4c2a-8dac-fe4b31b9d04d","block_type":"box","text":"Management Agreement described above.","page_number":42,"box":{"x":116,"y":258,"width":290,"height":13}},{"id":"fc41a893-b047-4b02-b848-a5eed74993fd","block_type":"box","text":"The Manager, the Distributor and their affiliates may make payments relating to distribution and sales","page_number":42,"box":{"x":116,"y":282,"width":712,"height":12}},{"id":"3f340742-f9e8-4c9d-bb3e-9bdbfe45826f","block_type":"box","text":"support activities out of their past profits or other sources available to them (and not as an additional charge","page_number":42,"box":{"x":116,"y":297,"width":753,"height":13}},{"id":"40f3813e-7510-48da-9d6e-d075f1559e70","block_type":"box","text":"to the Fund). From time to time, the Manager, the Distr","page_number":42,"box":{"x":116,"y":313,"width":388,"height":12}},{"id":"13f7cfe9-802a-4c03-9a08-0f87b509e40c","block_type":"box","text":"ibutor or their affiliates may compensate affiliated and","page_number":42,"box":{"x":504,"y":313,"width":378,"height":12}},{"id":"90fc2ca7-286e-451a-8fee-da7fd0b0ed11","block_type":"box","text":"unaffiliated insurance companies or their broker-dealer affiliates for the sale and distribution of shares of the","page_number":42,"box":{"x":116,"y":328,"width":752,"height":13}},{"id":"5a25d9cc-d1e6-4099-a663-748db8019442","block_type":"box","text":"Fund or for services to the Fund and its contract holders. These payments would be in addition to the Fund","page_number":42,"box":{"x":116,"y":344,"width":744,"height":12}},{"id":"e5d58e77-fc46-4d2d-bfdb-8e5ee8c162c3","block_type":"box","text":"payments described in this SAI for distribution. These","page_number":42,"box":{"x":116,"y":359,"width":372,"height":13}},{"id":"f8b43364-dbf2-4cc3-8662-e3502d03f9b0","block_type":"box","text":"payments may be made to insurance companies or their","page_number":42,"box":{"x":493,"y":359,"width":386,"height":13}},{"id":"f54d2d76-2233-437f-ba72-58b9f0b025c0","block_type":"box","text":"broker-dealer affiliates to pay for marketing support activities, training sales personnel regarding the Fund,","page_number":42,"box":{"x":116,"y":375,"width":740,"height":12}},{"id":"00215742-5f38-4ce5-8bbb-11f31a1b1407","block_type":"box","text":"compensating financial intermediaries and broker-","page_number":42,"box":{"x":116,"y":390,"width":349,"height":13}},{"id":"62249f46-c787-44cb-aff7-b8c33491ef49","block_type":"box","text":"dealers to pay or reimburse them for their services or","page_number":42,"box":{"x":466,"y":390,"width":366,"height":13}},{"id":"40dccf54-e3c8-43a8-9d1d-f3b098fe38a7","block_type":"box","text":"expenses in connection with the distribution of variabl","page_number":42,"box":{"x":116,"y":406,"width":377,"height":12}},{"id":"32411e38-b694-440e-a4cf-a9712611eb68","block_type":"box","text":"e annuity and variable life insurance contracts investing","page_number":42,"box":{"x":494,"y":406,"width":384,"height":12}},{"id":"8a69e8af-afaf-4efe-94e8-f7e071ce8f79","block_type":"box","text":"in Fund shares, and compensating sales personnel in connection with the allocation of cash values and","page_number":42,"box":{"x":116,"y":421,"width":708,"height":13}},{"id":"30cbbb58-3227-4266-b08b-8a1976b3f4ec","block_type":"box","text":"premium of variable annuity and variable life insurance contracts to investments in Fund shares. The","page_number":42,"box":{"x":116,"y":437,"width":698,"height":12}},{"id":"5a6d1c57-fa9c-4d9b-ae3a-3f322b6069b1","block_type":"box","text":"payments made by the Manager, the Distributor and their affiliates are based on a percentage of the value of","page_number":42,"box":{"x":116,"y":452,"width":754,"height":13}},{"id":"95ccb4b0-1a02-48f3-b925-efadf654b381","block_type":"box","text":"shares sold to, or held by, customers of the insurance company involved, and may be different for different","page_number":42,"box":{"x":116,"y":468,"width":740,"height":12}},{"id":"ae5dd03c-db4e-408a-900c-cf8925773e47","block_type":"box","text":"insurance companies. The payments described above are made from the Manager’s, the Distributor’s or their","page_number":42,"box":{"x":116,"y":483,"width":755,"height":13}},{"id":"82359b68-9288-44da-be88-5032bb8fb045","block_type":"box","text":"affiliates’ own assets pursuant to agreements with insuranc","page_number":42,"box":{"x":116,"y":499,"width":408,"height":12}},{"id":"7d558891-d439-4496-8dfe-1515722d13c3","block_type":"box","text":"e companies or their broker-dealer affiliates and do","page_number":42,"box":{"x":525,"y":499,"width":354,"height":12}},{"id":"13ee9e3a-685e-465e-8d70-0daba58058bb","block_type":"box","text":"not change the price paid by investors for the purchase of the Fund’s shares or the amount the Fund will","page_number":42,"box":{"x":116,"y":514,"width":722,"height":13}},{"id":"18c1acab-95a6-468b-8453-745833986be2","block_type":"box","text":"receive as proceeds from such sales.","page_number":42,"box":{"x":116,"y":530,"width":245,"height":12}},{"id":"1cb098ac-1c72-4edd-bda6-51a49d46fb7d","block_type":"box","text":"The payments described above may be made, at the discretion of BRIL or BlackRock, to insurance companies","page_number":42,"box":{"x":116,"y":553,"width":761,"height":13}},{"id":"f1e3ae2d-562e-43d9-a88f-d68a217eca4e","block_type":"box","text":"or their broker-dealer affiliates in connection with the sale and distribution of Fund shares. Pursuant to","page_number":42,"box":{"x":116,"y":568,"width":714,"height":10}},{"id":"ce1607f3-632e-4b85-87ec-642eb9706ef2","block_type":"box","text":"applicable Financial Industry Regulatory Authority (“FINRA”) regulations, the details of certain of these","page_number":42,"box":{"x":116,"y":584,"width":728,"height":13}},{"id":"44b35b1c-8296-4a6b-98aa-cc16d7fb9379","block_type":"box","text":"payments, including the insurance companies or the","page_number":42,"box":{"x":116,"y":599,"width":359,"height":13}},{"id":"18e3136d-5573-4ca5-820b-36dcaec40e00","block_type":"box","text":"ir broker-dealer affiliates receiving such payments in","page_number":42,"box":{"x":476,"y":599,"width":362,"height":13}},{"id":"f6087ce6-ebdd-42b3-a944-d7e5a53434c4","block_type":"box","text":"connection with the sale and distribution of Fund shares, are required to be disclosed.","page_number":42,"box":{"x":116,"y":615,"width":593,"height":13}},{"id":"5c0cabb4-dff6-4076-8e64-cf3243ffeaff","block_type":"box","text":"As of the date of this SAI, as amended or supplemented from time to time, the following insurance companies","page_number":42,"box":{"x":116,"y":638,"width":751,"height":13}},{"id":"273e6eef-e551-4e6a-88dd-76f289df2655","block_type":"box","text":"(or broker-dealer affiliates thereof) are receiving such payments: Massachusetts Mutual Life Insurance","page_number":42,"box":{"x":117,"y":654,"width":698,"height":13}},{"id":"cabbfb1b-7d18-46a0-b91e-803d559f5642","block_type":"box","text":"Company, Nationwide Financial Services, Inc., New York Life Insurance and Annuity Corporation,","page_number":42,"box":{"x":117,"y":669,"width":684,"height":13}},{"id":"93fa4f41-adc2-42fd-bf4c-abec46c9b104","block_type":"box","text":"Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company. In lieu of","page_number":42,"box":{"x":116,"y":685,"width":708,"height":13}},{"id":"161f8b35-5dd6-4583-af36-df26cea018cd","block_type":"box","text":"payments pursuant to the foregoing, the Manager, the Distributor or their affiliates may make payments to","page_number":42,"box":{"x":116,"y":700,"width":734,"height":13}},{"id":"c9b050fd-0dab-4332-b421-da1a84440fb9","block_type":"box","text":"insurance companies or their broker-dealer affiliates of an agreed-upon amount that will not exceed the","page_number":42,"box":{"x":116,"y":716,"width":709,"height":13}},{"id":"a01bf35d-e84a-4269-83b6-a6785548de7d","block_type":"box","text":"amount that would have been payable pursuant to the above, and may also make similar payments to other","page_number":42,"box":{"x":116,"y":731,"width":740,"height":13}},{"id":"1923257e-7b46-42cd-9715-9f06aabe8a22","block_type":"box","text":"insurance companies or their broker-dealer affiliates.","page_number":42,"box":{"x":116,"y":747,"width":360,"height":13}},{"id":"b397b686-1873-4608-83f9-87193b72dee7","block_type":"box","text":"If investment advisers, distributors or affiliates of mutual funds pay bonuses and incentives in differing amounts,","page_number":42,"box":{"x":116,"y":770,"width":759,"height":13}},{"id":"c0e49aa8-e8da-45b0-a10f-9d9b27225939","block_type":"box","text":"financial firms and their financial consultants may","page_number":42,"box":{"x":116,"y":785,"width":339,"height":13}},{"id":"d2f3edca-189c-4e29-881a-76068985bd8a","block_type":"box","text":"have financial incentives for recommending a particular","page_number":42,"box":{"x":460,"y":785,"width":376,"height":13}},{"id":"c55aba0f-0c73-47e9-845c-c541668272ca","block_type":"box","text":"mutual fund over other mutual funds. In addition, depending on the arrangements in place at any particular","page_number":42,"box":{"x":116,"y":801,"width":731,"height":13}},{"id":"da875159-0af9-492e-ad56-9df9ddee236a","block_type":"box","text":"time, a financial firm and its financial consultants may also have a financial incentive for recommending a","page_number":42,"box":{"x":116,"y":817,"width":716,"height":12}},{"id":"ba4480ef-6648-4222-a03e-d22f54eea369","block_type":"box","text":"particular share class over other share classes. Furtherm","page_number":42,"box":{"x":116,"y":832,"width":377,"height":13}},{"id":"35f18ab4-dd2f-49ac-af7f-4e3346c832ce","block_type":"box","text":"ore, the Manager, the Distributor and their affiliates may","page_number":42,"box":{"x":493,"y":832,"width":387,"height":13}},{"id":"35bfa102-19d3-4b43-984f-be6944212b36","block_type":"box","text":"contribute to various non-cash and cash incentive arrangements to promote the sale of shares, and may sponsor","page_number":42,"box":{"x":116,"y":848,"width":757,"height":12}},{"id":"c0c1f9e9-b336-4b25-96a7-c92fe6d208ca","block_type":"box","text":"various contests and promotions subject to applicable FINRA regulations in which participants may receive","page_number":42,"box":{"x":116,"y":863,"width":729,"height":13}},{"id":"a4d674de-5763-4710-a098-f7fb0da701fd","block_type":"box","text":"I-26","page_number":42,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"f00424d6-7139-4f85-b0ba-36a48c253220","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":42,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"f5ca2e42-d66a-4c11-84d9-fa16f02e708b","block_type":"box","text":"prizes such as travel awards, merchandise and cash. Subject to applicable FINRA regulations, the Manager, the","page_number":43,"box":{"x":116,"y":79,"width":753,"height":13}},{"id":"d0713e6f-9779-4f39-b08b-3261173b7f15","block_type":"box","text":"Distributor and their affiliates may also (i) pay for the travel expenses, meals, lodging and entertainment of","page_number":43,"box":{"x":116,"y":94,"width":724,"height":13}},{"id":"890e1b9d-9156-43a5-8750-364657dae298","block_type":"box","text":"broker/dealers, financial institutions and their salespersons in connection with educational and sales promotional","page_number":43,"box":{"x":116,"y":110,"width":764,"height":13}},{"id":"ae6e9226-eb4f-46c7-8528-344af316fa47","block_type":"box","text":"programs, (ii) sponsor speakers, educational seminars and charitable events and (iii) provide other sales and","page_number":43,"box":{"x":116,"y":125,"width":728,"height":13}},{"id":"ae2f7cc6-bd0e-4fa0-b795-0cb60e969317","block_type":"box","text":"marketing conferences and other resources to broker/deal","page_number":43,"box":{"x":116,"y":141,"width":389,"height":13}},{"id":"d805f026-e5fa-4e0c-9b16-a2a72abcadd8","block_type":"box","text":"ers, financial institutions and their salespersons.","page_number":43,"box":{"x":506,"y":141,"width":320,"height":13}},{"id":"3d524ccb-4dbb-4081-9dea-69f0678e1acd","block_type":"box","text":"Insurance companies may charge their clients additional fees for account-related services. Insurance companies","page_number":43,"box":{"x":116,"y":164,"width":766,"height":13}},{"id":"8e1b52ed-1ac8-49c9-914d-9fa218c3faa1","block_type":"box","text":"may charge their customers a service fee in connectio","page_number":43,"box":{"x":116,"y":180,"width":367,"height":12}},{"id":"1ffe3c4d-4947-4974-bfc4-52a5659923d4","block_type":"box","text":"n with the purchase or redemption of Fund shares. The","page_number":43,"box":{"x":483,"y":180,"width":383,"height":12}},{"id":"9f2a7af0-9f34-415a-ae2d-55c0c2cf7194","block_type":"box","text":"amount and applicability of such a fee is determined an","page_number":43,"box":{"x":116,"y":195,"width":384,"height":13}},{"id":"48b0b2df-612f-446e-b4f2-caa0de933dae","block_type":"box","text":"d disclosed to its customers by each individual","page_number":43,"box":{"x":501,"y":195,"width":319,"height":13}},{"id":"be9af6dd-6849-41fa-a4dd-40e7ece9c7f0","block_type":"box","text":"insurance company. 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Such","page_number":43,"box":{"x":116,"y":280,"width":372,"height":13}},{"id":"9d17884b-0428-4f28-869d-b5e67bd07f87","block_type":"box","text":"services will be provided to Customers and are intended","page_number":43,"box":{"x":493,"y":280,"width":388,"height":13}},{"id":"80c4ce44-13af-4e9f-807a-1c8a9eea51bc","block_type":"box","text":"to supplement the services provided by the Fund’s Manager, administrator and/or Transfer Agent to the","page_number":43,"box":{"x":116,"y":296,"width":720,"height":13}},{"id":"1caed637-c8ab-49ad-9ca8-33e0ff84aa4c","block_type":"box","text":"insurance company. In consideration for payment of a service fee on shares, insurance companies or their","page_number":43,"box":{"x":116,"y":311,"width":730,"height":13}},{"id":"4b2a6741-86d1-4489-924f-6acc7fad0d75","block_type":"box","text":"broker-dealer affiliates may provide general shareholder liaison services, including, but not limited to","page_number":43,"box":{"x":116,"y":327,"width":699,"height":13}},{"id":"38d458d2-94f8-4cac-b322-e70287eec43f","block_type":"box","text":"(i) answering customer inquiries regarding account","page_number":43,"box":{"x":117,"y":342,"width":351,"height":13}},{"id":"24c4d96b-b063-42f3-8b8e-524c562b1359","block_type":"box","text":"status and history, the manner in which purchases,","page_number":43,"box":{"x":473,"y":342,"width":351,"height":13}},{"id":"29011213-0ff3-4a33-b0ea-c02f240d67c3","block_type":"box","text":"exchanges and redemptions of shares may be effected an","page_number":43,"box":{"x":116,"y":358,"width":391,"height":13}},{"id":"d6a5955d-f6ac-436b-bb80-0a8dc28199cb","block_type":"box","text":"d certain other matters pertaining to the Customers’","page_number":43,"box":{"x":508,"y":358,"width":360,"height":13}},{"id":"f18cd84e-7480-4a18-994a-59b2885353c9","block_type":"box","text":"sub-accounts; and (ii) assisting Customers in design","page_number":43,"box":{"x":116,"y":373,"width":356,"height":13}},{"id":"30411d78-7125-48d9-82f2-a278a906e23a","block_type":"box","text":"ating and changing account designations and addresses.","page_number":43,"box":{"x":473,"y":373,"width":384,"height":13}},{"id":"d77b2182-8ffb-4155-bfdb-74ccc3fc7a64","block_type":"box","text":"In addition to, rather than in lieu of, distribution fees that the Fund may pay to an insurance company or its","page_number":43,"box":{"x":116,"y":397,"width":748,"height":12}},{"id":"60bbb797-ae42-40ae-8bf7-e90a37a72597","block_type":"box","text":"broker-dealer affiliate pursuant to the Plan and fees the Fund pays to its Transfer Agent, if approved by the","page_number":43,"box":{"x":116,"y":412,"width":742,"height":13}},{"id":"10fddbad-00e9-49ee-a5fe-290e74f234ac","block_type":"box","text":"Board, the Fund may enter into non-Plan agreements with insurance companies or their broker-dealer","page_number":43,"box":{"x":116,"y":428,"width":706,"height":12}},{"id":"54f5cee4-28cd-40c3-952d-d5da83d994a5","block_type":"box","text":"affiliates pursuant to which the Fund will pay an insurance company or its broker-dealer affiliates for","page_number":43,"box":{"x":116,"y":443,"width":702,"height":13}},{"id":"3530ed1f-adf6-4148-b747-044d323b751c","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency and shareholder services. These non-Plan","page_number":43,"box":{"x":116,"y":459,"width":728,"height":12}},{"id":"01817d28-4d7d-4739-a16f-a50635ef8173","block_type":"box","text":"payments are based on a percentage of the average daily net assets of Fund shares held indirectly by","page_number":43,"box":{"x":116,"y":474,"width":690,"height":13}},{"id":"acf9fb1e-0acb-41de-b3c7-626bb242f97e","block_type":"box","text":"Customers of such insurance companies.","page_number":43,"box":{"x":117,"y":490,"width":280,"height":12}},{"id":"90b3b036-bbc5-4ce6-948d-a84f4c7a3258","block_type":"box","text":"The aggregate amount of these payments may be substantial. From time to time, the Manager, the Distributor","page_number":43,"box":{"x":116,"y":513,"width":764,"height":13}},{"id":"59324583-edca-436d-9236-530cf4d4d0ca","block_type":"box","text":"or their affiliates also may pay a portion of the fees fo","page_number":43,"box":{"x":116,"y":528,"width":372,"height":13}},{"id":"c4f29bce-d770-4833-8b6d-97ee8a48df21","block_type":"box","text":"r administrative, networking, recordkeeping,","page_number":43,"box":{"x":489,"y":528,"width":309,"height":13}},{"id":"48d34427-de6f-4e0f-8e5e-544cffd84665","block_type":"box","text":"sub-transfer agency and shareholder services described above at its or their own expense and out of its or their","page_number":43,"box":{"x":116,"y":544,"width":765,"height":13}},{"id":"58948762-05e7-47b4-8a7b-0bd900af837a","block_type":"box","text":"legitimate profits.","page_number":43,"box":{"x":116,"y":559,"width":121,"height":13}},{"id":"77aee0a9-e871-4938-8178-d72582e89f17","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":43,"box":{"x":116,"y":588,"width":364,"height":13}},{"id":"c333a2fc-1699-410f-9bbc-e86a839c4c5f","block_type":"box","text":"The offering price for each Fund’s shares is equal to the","page_number":43,"box":{"x":116,"y":614,"width":384,"height":12}},{"id":"6810bc8a-1fcd-47b4-b014-af2cf545d002","block_type":"box","text":"net asset value computed by dividing the value of the","page_number":43,"box":{"x":505,"y":614,"width":367,"height":12}},{"id":"ec418434-eebb-4dd3-9f44-512fcafeacf8","block_type":"box","text":"Fund’s net assets by the number of shares outstanding. For more information on the purchasing and valuation","page_number":43,"box":{"x":116,"y":629,"width":764,"height":13}},{"id":"76907dcb-ab6c-46aa-b3d6-1ca8dc86a9e7","block_type":"box","text":"of shares, please see “Purchase of Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":43,"box":{"x":116,"y":645,"width":604,"height":12}},{"id":"e8a66bd7-bcba-47f7-bdde-48d3794bdad5","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":43,"box":{"x":116,"y":671,"width":342,"height":12}},{"id":"cb5806ce-60c9-4243-889c-f40d1b8bf360","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":43,"box":{"x":116,"y":696,"width":605,"height":13}},{"id":"03580599-1e56-4227-a83f-412001374f54","block_type":"box","text":"Brokerage Commissions.","page_number":43,"box":{"x":116,"y":720,"width":173,"height":12}},{"id":"8878ed1b-049e-42f9-9afc-ff97fecebfcc","block_type":"box","text":"Information about the brokerage commissions paid by each Fund, including","page_number":43,"box":{"x":295,"y":720,"width":527,"height":12}},{"id":"f9b7bc75-d92a-4700-9b4c-77b268e5b2e5","block_type":"box","text":"commissions paid to affiliates of the Manager, for the last","page_number":43,"box":{"x":116,"y":735,"width":401,"height":13}},{"id":"3a11bcda-084d-4179-9c2b-3b768ee25bda","block_type":"box","text":"three fiscal years is set forth in the following table:","page_number":43,"box":{"x":521,"y":735,"width":348,"height":13}},{"id":"901683e5-cceb-494b-ab7f-3d0ddac37bbd","block_type":"box","text":"Aggregate Brokerage Commissions Paid","page_number":43,"box":{"x":384,"y":763,"width":232,"height":10}},{"id":"a541d7df-060d-4adf-8ceb-2558b7effae7","block_type":"box","text":"For the Year Ended December 31,","page_number":43,"box":{"x":401,"y":773,"width":197,"height":10}},{"id":"03bfb3a0-2def-44fe-9aed-7dc2dbbdc4ae","block_type":"box","text":"Commissions Paid to Affiliates","page_number":43,"box":{"x":696,"y":763,"width":177,"height":8}},{"id":"3b5377e8-6818-486d-8589-cfb14c968236","block_type":"box","text":"For the Year Ended December 31,","page_number":43,"box":{"x":686,"y":773,"width":197,"height":10}},{"id":"1ff14981-5c87-4e98-8a48-eee840b3a242","block_type":"box","text":"2025","page_number":43,"box":{"x":379,"y":788,"width":28,"height":8}},{"id":"e63ca993-f452-4bed-baa8-43c93a50e193","block_type":"box","text":"2024","page_number":43,"box":{"x":485,"y":788,"width":29,"height":8}},{"id":"3d2997a3-96f0-4373-9f2a-250c046b3e26","block_type":"box","text":"2023","page_number":43,"box":{"x":592,"y":788,"width":29,"height":8}},{"id":"557ab929-2835-4bc1-9a8f-27f20e53e183","block_type":"box","text":"2025","page_number":43,"box":{"x":687,"y":788,"width":28,"height":8}},{"id":"ad9cbbee-9570-473c-a5bd-745c3f994117","block_type":"box","text":"2024","page_number":43,"box":{"x":770,"y":788,"width":29,"height":8}},{"id":"190f390e-fa16-4bb5-a3b8-bad624a4e959","block_type":"box","text":"2023","page_number":43,"box":{"x":852,"y":788,"width":29,"height":8}},{"id":"06c8b95a-b485-4c9b-bfcc-70e47e1528dc","block_type":"box","text":"High Yield V.I. 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D $5,387","page_number":44,"box":{"x":136,"y":628,"width":618,"height":10}},{"id":"53e42ae0-19f0-4366-a36a-6d619acc1205","block_type":"box","text":"Wells Fargo Securities, LLC D $3,739","page_number":44,"box":{"x":136,"y":643,"width":617,"height":11}},{"id":"b70652c2-1539-446e-815b-3e9a2747d76e","block_type":"box","text":"Barclays Capital, Inc. D $120","page_number":44,"box":{"x":136,"y":659,"width":612,"height":10}},{"id":"ae60d0ec-ac4c-4b8c-b30a-04aefda5eb6e","block_type":"box","text":"Securities Lending.","page_number":44,"box":{"x":116,"y":680,"width":128,"height":13}},{"id":"f54a5ea1-9fe7-4090-bc67-3ee29ee996d1","block_type":"box","text":"To the extent that a Fund engages in securities lending, the Fund conducts its securities","page_number":44,"box":{"x":249,"y":680,"width":593,"height":13}},{"id":"08e9e6f1-6acb-4cae-a5d4-299ebff09de0","block_type":"box","text":"lending pursuant to an exemptive order from the Commission permitting it to lend portfolio securities to","page_number":44,"box":{"x":116,"y":696,"width":717,"height":12}},{"id":"c16b6da3-1bbb-4dcd-98a9-1e893a6c57df","block_type":"box","text":"borrowers affiliated with the Fund and to retain an affiliate of the Fund as securities lending agent. To the","page_number":44,"box":{"x":116,"y":711,"width":725,"height":13}},{"id":"b0041292-9277-40a4-8769-fa62c2cf129f","block_type":"box","text":"extent that a Fund engages in securities lending, BlackRock Investment Management, LLC (“BIM”) acts as","page_number":44,"box":{"x":116,"y":727,"width":734,"height":12}},{"id":"f531e344-514b-46ac-b685-db5a32401cf6","block_type":"box","text":"securities lending agent for the Fund, subject to the overall supervision of the Manager, pursuant to a written","page_number":44,"box":{"x":116,"y":742,"width":746,"height":13}},{"id":"56a27904-fa6f-48e7-90c4-35f715d565d7","block_type":"box","text":"agreement (the “Securities Lending Agency Agreement”). BIM administers the lending program in accordance","page_number":44,"box":{"x":116,"y":758,"width":753,"height":12}},{"id":"35d3c86d-fafd-49a3-bbdc-b1a9785542fb","block_type":"box","text":"with guidelines approved by each Board.","page_number":44,"box":{"x":116,"y":773,"width":278,"height":13}},{"id":"a44f77a6-8eed-4c06-90cb-ff61cc35ff13","block_type":"box","text":"To the extent the Funds engage in securities lending, the Funds retain a portion of the securities lending","page_number":44,"box":{"x":116,"y":796,"width":715,"height":13}},{"id":"d78941ae-9bfa-4205-976d-3fed818bed61","block_type":"box","text":"income and remit the remaining portion to BIM as compensation for its services as securities lending agent.","page_number":44,"box":{"x":116,"y":812,"width":742,"height":13}},{"id":"ec0583b9-b5f9-408d-bd75-1095b381af06","block_type":"box","text":"Securities lending income is generally equal to the total of income earned from the reinvestment of cash","page_number":44,"box":{"x":116,"y":827,"width":715,"height":13}},{"id":"d24566c3-afd7-4bfc-8833-3312fffa207d","block_type":"box","text":"collateral (and excludes collateral investment fees as defined below), and any fees or other payments to and","page_number":44,"box":{"x":116,"y":843,"width":743,"height":13}},{"id":"62dafae4-1ba8-4c6d-9ce7-8d349691fca7","block_type":"box","text":"from borrowers of securities. As securities lending agent, BIM bears all operational costs directly related to","page_number":44,"box":{"x":116,"y":858,"width":739,"height":13}},{"id":"8caa24bf-d2e5-4ac6-b954-a068e7b6f326","block_type":"box","text":"I-28","page_number":44,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"51dc80e4-8c9b-4e7a-a9d2-85f11bfb5494","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":44,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"b247460b-f593-4952-97d9-d4036715e6e8","block_type":"box","text":"securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral","page_number":45,"box":{"x":116,"y":79,"width":715,"height":13}},{"id":"edda69a8-5771-4136-a8f2-7bb78aaafa3d","block_type":"box","text":"received for securities on loan in a money market fund managed by BlackRock (the “collateral investment","page_number":45,"box":{"x":116,"y":94,"width":735,"height":13}},{"id":"bb5b8f33-b1f7-487d-b387-9b0a97bc2fcc","block_type":"box","text":"fees”); however, the securities lending agent has agreed to reduce the amount of securities lending income it","page_number":45,"box":{"x":116,"y":110,"width":744,"height":13}},{"id":"4696dc46-c063-46b4-9b6a-de4d7113c878","block_type":"box","text":"receives in order to effectively limit the collateral investment fees a Fund bears to an annual rate of 0.04%.","page_number":45,"box":{"x":116,"y":125,"width":738,"height":13}},{"id":"00c44655-002c-496c-a351-4ad1d5694b91","block_type":"box","text":"Such money market fund shares will not be subject to a sales load, redemption fee, distribution fee or service","page_number":45,"box":{"x":116,"y":141,"width":752,"height":13}},{"id":"0206181f-20db-4cc6-bc0e-5f127348cd65","block_type":"box","text":"fee. The board of directors of the money market fund, incl","page_number":45,"box":{"x":116,"y":156,"width":404,"height":13}},{"id":"6f27eaa8-39b3-4f95-b06a-3136a5b874ed","block_type":"box","text":"uding the majority of the non-interested directors of","page_number":45,"box":{"x":521,"y":156,"width":361,"height":13}},{"id":"222bab94-086a-4d52-bedc-d694798b4d27","block_type":"box","text":"the money market fund, or its delegate, is permitted at any time, if it determines it to be in the best interests of","page_number":45,"box":{"x":116,"y":172,"width":763,"height":13}},{"id":"6c51daed-20ec-41fe-b5ef-da3d28468e57","block_type":"box","text":"the money market fund, to impose a discretionary liquidity fee of up to 2% on all redemptions. Discretionary","page_number":45,"box":{"x":116,"y":187,"width":760,"height":13}},{"id":"42206978-db02-47dd-9195-cf17c1c2c56c","block_type":"box","text":"liquidity fees, if imposed, may be terminated at any time at the discretion of the board of directors of the","page_number":45,"box":{"x":116,"y":203,"width":724,"height":13}},{"id":"66d6c615-2805-4805-a5df-da46c406c592","block_type":"box","text":"money market fund, or its delegate, if it is determined to no longer be in the best interest of the fund. The","page_number":45,"box":{"x":116,"y":218,"width":729,"height":13}},{"id":"9f5aeba1-7213-4db7-9ae7-9cfb6d06ac9a","block_type":"box","text":"shares of the money market fund purchased by the Fund would be subject to any such discretionary liquidity","page_number":45,"box":{"x":116,"y":234,"width":755,"height":13}},{"id":"2bed4ef6-86f0-4e86-aa82-cc4700060e0f","block_type":"box","text":"fee imposed.","page_number":45,"box":{"x":116,"y":249,"width":86,"height":13}},{"id":"9101f335-1865-4adb-8c41-3251498995c6","block_type":"box","text":"Under the securities lending program, each Fund is categorized into one of several specific asset classes. The","page_number":45,"box":{"x":116,"y":272,"width":745,"height":13}},{"id":"dd9313d2-9d89-43e3-a288-592d8beeaffe","block_type":"box","text":"determination of a Fund’s asset class category (fixed in","page_number":45,"box":{"x":116,"y":287,"width":379,"height":13}},{"id":"1011fb4d-b35a-455f-9480-f27ad590ef2c","block_type":"box","text":"come, domestic equity, international equity, or fund of","page_number":45,"box":{"x":495,"y":287,"width":380,"height":13}},{"id":"c0ac66fb-22a2-4582-b766-0473bd9ccf88","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by","page_number":45,"box":{"x":116,"y":302,"width":752,"height":13}},{"id":"e103c9c5-a3da-4344-899e-fe8c0b589b16","block_type":"box","text":"the Company and BIM.","page_number":45,"box":{"x":116,"y":318,"width":164,"height":12}},{"id":"b0aef69f-16ee-4885-a960-decd24a91c03","block_type":"box","text":"Pursuant to the current securities lending agreement: (i) if the Funds were to engage in securities lending, the","page_number":45,"box":{"x":116,"y":340,"width":749,"height":13}},{"id":"b8bafba0-da4d-476a-bd4f-312c3dc94a5b","block_type":"box","text":"Funds would retain 81% of securities lending income (wh","page_number":45,"box":{"x":116,"y":356,"width":402,"height":12}},{"id":"ee4d6d29-5966-4dce-8341-059f5cf82084","block_type":"box","text":"ich excludes collateral investment expenses), and","page_number":45,"box":{"x":518,"y":356,"width":337,"height":12}},{"id":"829c8c9b-0018-46ba-9e91-ed9a23ca6866","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment","page_number":45,"box":{"x":117,"y":371,"width":755,"height":12}},{"id":"affef5a3-eed3-4087-9a5b-d28a450052fa","block_type":"box","text":"expenses.","page_number":45,"box":{"x":116,"y":390,"width":64,"height":9}},{"id":"68d3e5a7-a899-4b1f-ac9a-51c7213d7869","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":45,"box":{"x":116,"y":409,"width":727,"height":12}},{"id":"c8d907e5-69a4-4cc9-9a41-6fa0f1f07198","block_type":"box","text":"earned across the BlackRock Fixed-Income Complex in a calendar year exceeds a specified threshold, each","page_number":45,"box":{"x":116,"y":424,"width":738,"height":13}},{"id":"12ecce6f-c887-4ae7-a6a4-23b3aa02b5c3","block_type":"box","text":"Fund, pursuant to the current securities lending agreement, will receive for the remainder of that calendar year","page_number":45,"box":{"x":116,"y":439,"width":765,"height":13}},{"id":"5066017d-547f-49d6-a876-8c3ea4d2cd73","block_type":"box","text":"securities lending income as follows:","page_number":45,"box":{"x":116,"y":454,"width":251,"height":13}},{"id":"e7d27ed3-ccb4-4fcb-9181-939f4026b40f","block_type":"box","text":"(i) If the Funds were to engage in securities lending, 84% of securities lending income (which excludes","page_number":45,"box":{"x":117,"y":477,"width":705,"height":13}},{"id":"de1f3e64-f438-4499-b79c-faaa53321646","block_type":"box","text":"collateral investment expenses); and (ii) this amount can never be less than 70% of the sum of securities","page_number":45,"box":{"x":116,"y":492,"width":718,"height":13}},{"id":"7dd15cff-c08a-4256-a496-58c436cd70f6","block_type":"box","text":"lending income plus collateral investment expenses.","page_number":45,"box":{"x":116,"y":507,"width":355,"height":13}},{"id":"55d4fb25-b048-416b-83ee-a079e1aec4ca","block_type":"box","text":"Each Fund had no income and fees/compensation related to its securities lending activities during its most","page_number":45,"box":{"x":116,"y":530,"width":731,"height":13}},{"id":"5e814445-f4c7-481d-9447-42a85cb9e819","block_type":"box","text":"recent fiscal year ended December 31, 2025.","page_number":45,"box":{"x":116,"y":546,"width":306,"height":13}},{"id":"ef9702eb-bfdb-4eab-a242-83edca907732","block_type":"box","text":"Portfolio Turnover.","page_number":45,"box":{"x":116,"y":569,"width":136,"height":10}},{"id":"17067020-3892-4f56-bfc8-5a1245c69421","block_type":"box","text":"The Manager will effect portfolio transactions without regard to holding period, if, in its","page_number":45,"box":{"x":257,"y":569,"width":615,"height":13}},{"id":"4c9c0f53-baaa-4303-8d95-48439beb754d","block_type":"box","text":"judgment, such transactions are advisable in light of a change in circumstances of a particular company or","page_number":45,"box":{"x":116,"y":585,"width":736,"height":12}},{"id":"f0cd9d2a-eb75-492a-bcb7-ea01c5c87f71","block_type":"box","text":"within a particular industry or in the general market, or a change in economic or financial conditions. Each","page_number":45,"box":{"x":116,"y":600,"width":744,"height":13}},{"id":"24670fc1-ad11-41f5-82c6-fee226c29fd7","block_type":"box","text":"Fund’s portfolio turnover rate is calculated by dividing the lesser of the Fund’s annual sales or purchases of","page_number":45,"box":{"x":116,"y":616,"width":742,"height":12}},{"id":"94271641-be3f-4c0b-a1ca-79eed84712d1","block_type":"box","text":"portfolio securities (exclusive of purchases or sales of all securities whose maturities at the time of acquisition","page_number":45,"box":{"x":116,"y":631,"width":756,"height":13}},{"id":"b4778449-5949-491c-b89b-fe8344c798e3","block_type":"box","text":"were one year or less) by the monthly average value of the securities in the portfolio during the year.","page_number":45,"box":{"x":116,"y":647,"width":693,"height":12}},{"id":"cff3edd0-1a0a-4be3-b741-d93e7e3e0979","block_type":"box","text":"High portfolio turnover may result in an increase in capital gain dividends and/or ordinary income dividends.","page_number":45,"box":{"x":116,"y":670,"width":757,"height":12}},{"id":"a05c6d7f-9547-4047-bc98-caf4041089ee","block_type":"box","text":"See “Special Tax Rules Applicable to Variable Contracts.” High portfolio turnover may also involve","page_number":45,"box":{"x":116,"y":685,"width":696,"height":13}},{"id":"50386ebb-42d0-477e-8793-da562b473fe7","block_type":"box","text":"correspondingly greater transaction costs in the form of dealer spreads and brokerage commissions, which are","page_number":45,"box":{"x":116,"y":700,"width":763,"height":13}},{"id":"f386f3b0-736f-46d4-bcec-d2b3470996e3","block_type":"box","text":"borne directly by the Fund.","page_number":45,"box":{"x":116,"y":715,"width":187,"height":13}},{"id":"5c92d7fc-efed-4936-9a22-9a7e9f269284","block_type":"box","text":"For the fiscal years ended December 31, 2024 and 2025, the BlackRock Total Return V.I. Fund’s portfolio","page_number":45,"box":{"x":116,"y":738,"width":740,"height":13}},{"id":"23a16771-4c90-43b1-ba07-d572cfdbaa0e","block_type":"box","text":"turnover was 605% and 676%, respectively.","page_number":45,"box":{"x":116,"y":754,"width":310,"height":12}},{"id":"a8f1455f-9084-4316-88ae-c26e2ff854c2","block_type":"box","text":"VIII. Purchase of Shares","page_number":45,"box":{"x":116,"y":782,"width":202,"height":10}},{"id":"c90cc6bb-274f-43e0-bf1d-a9dab6325181","block_type":"box","text":"The Company continuously offers shares of Class I Common Stock and Class III Common Stock of the Funds","page_number":45,"box":{"x":116,"y":808,"width":763,"height":12}},{"id":"7e27f7c6-d3a7-4e6c-b9ac-4864c63e28b5","block_type":"box","text":"at prices equal to the per share net asset value of the Fund. BRIL, an affiliate of the Manager, acts as the","page_number":45,"box":{"x":116,"y":823,"width":721,"height":13}},{"id":"55bbe496-a2c1-4799-bff2-1b8893a01c21","block_type":"box","text":"Funds’ sole Distributor.","page_number":45,"box":{"x":116,"y":838,"width":163,"height":10}},{"id":"f513108c-aad0-42a1-b15c-d9a4e230fd13","block_type":"box","text":"Net asset value is determined in the manner set forth under “Determination of Net Asset Value.”","page_number":45,"box":{"x":116,"y":861,"width":672,"height":10}},{"id":"4b0eacea-1f1a-4f53-a708-5775d9f0766a","block_type":"box","text":"I-29","page_number":45,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"91b89ec3-d14a-4d97-b4d8-b23cf3a15cc3","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":45,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"3a2e3fd3-8f73-4e19-bf3a-f6eb87bda6a9","block_type":"box","text":"The Company and the Distributor reserve the right to suspend the sale of shares of the Funds in response to","page_number":46,"box":{"x":116,"y":79,"width":746,"height":12}},{"id":"2315183e-de3d-4d2f-a736-a0011d99974b","block_type":"box","text":"conditions in the securities markets or otherwise. Any order may be rejected by the Company or the","page_number":46,"box":{"x":116,"y":94,"width":692,"height":13}},{"id":"75d1d8d6-1a55-41ed-9e8c-9f96f378df9c","block_type":"box","text":"Distributor. Generally, only Separate Accounts of Insurance Companies may purchase Fund shares for the","page_number":46,"box":{"x":116,"y":109,"width":737,"height":13}},{"id":"88b01a5d-2784-4b5d-9b24-69042e5f05fb","block_type":"box","text":"benefit of such Insurance Company’s owners who elect to have all or a portion of their premium contributions","page_number":46,"box":{"x":116,"y":124,"width":767,"height":13}},{"id":"2b631ab5-a0e1-461c-a856-72c415917d99","block_type":"box","text":"invested in shares of a Fund. Accordingly, each Separate Account that owns shares of a Fund maintains","page_number":46,"box":{"x":116,"y":139,"width":717,"height":13}},{"id":"0e2b02fc-39b5-4727-953b-b8f0194b8bf8","block_type":"box","text":"omnibus accounts with the Funds’ Transfer Agent for the benefit of the Insurance Company’s Contract","page_number":46,"box":{"x":116,"y":155,"width":715,"height":13}},{"id":"ed62a1db-934b-4459-9eae-b077445e3597","block_type":"box","text":"owners, often resulting in considerable savings in administrative expenses for the Funds’ management.","page_number":46,"box":{"x":116,"y":170,"width":708,"height":13}},{"id":"17985287-086b-4481-8c0c-1736824c61c1","block_type":"box","text":"IX. Special Tax Rules Applicable to Variable Contracts","page_number":46,"box":{"x":116,"y":196,"width":441,"height":13}},{"id":"2e0aea9c-e29b-4679-9c18-78d2f3899f1d","block_type":"box","text":"Each Fund has elected to be treated, and intends to qualify each year, as a regulated investment company","page_number":46,"box":{"x":116,"y":219,"width":728,"height":13}},{"id":"658b6398-83fb-4e3d-b4dd-f944d648f9a8","block_type":"box","text":"under the Internal Revenue Code of 1986, as amended (the “Code”). In order to qualify to be taxable as a","page_number":46,"box":{"x":116,"y":235,"width":737,"height":12}},{"id":"744b2c3c-9c92-4f49-9040-baa11886ab8f","block_type":"box","text":"regulated investment company, each Fund must meet certain income and asset diversification tests and","page_number":46,"box":{"x":116,"y":250,"width":710,"height":13}},{"id":"8d4a54af-3e57-4229-a1c6-7eff175a4c05","block_type":"box","text":"distribution requirements. As regulated investment companies, the Funds will not be subject to U.S. federal","page_number":46,"box":{"x":116,"y":265,"width":740,"height":13}},{"id":"5d3e624e-e028-4293-9419-e79eb064217d","block_type":"box","text":"income tax on their net investment income and net capital gains that they distribute to their shareholders.","page_number":46,"box":{"x":116,"y":280,"width":730,"height":13}},{"id":"e789b1fc-28d5-4de2-873c-9881e0e1f5ac","block_type":"box","text":"In addition, in order for the Contract holders to be eligible for U.S. federal income tax deferral, each separate","page_number":46,"box":{"x":116,"y":302,"width":756,"height":13}},{"id":"05bb8218-1584-4135-8210-1881193620ac","block_type":"box","text":"account of the Insurance Companies (referred to as “segregated asset accounts” for U.S. federal income tax","page_number":46,"box":{"x":116,"y":317,"width":743,"height":13}},{"id":"17fd4125-402e-402b-a07f-300d96f8c836","block_type":"box","text":"purposes) must comply with certain asset diversification requirements and investor control prohibitions.","page_number":46,"box":{"x":116,"y":332,"width":721,"height":13}},{"id":"7b71fe73-a11e-41b4-befc-6e2340910111","block_type":"box","text":"Diversification Requirements","page_number":46,"box":{"x":136,"y":356,"width":211,"height":13}},{"id":"e3a2bd84-958a-406b-a7e9-0ae12c27b3a5","block_type":"box","text":"Specifically, each segregated asset account is required to comply with the diversification requirements of","page_number":46,"box":{"x":116,"y":380,"width":721,"height":12}},{"id":"a2bf9572-df55-4f7a-8afb-4c6e1801446b","block_type":"box","text":"Section 817(h) of the Code and the regulations thereunder relating to the tax-deferred status of segregated","page_number":46,"box":{"x":116,"y":395,"width":734,"height":13}},{"id":"c4eab194-5b42-4a55-bc69-03216434a442","block_type":"box","text":"asset accounts. If a segregated asset account fails these requirements, Contract holders (rather than the","page_number":46,"box":{"x":116,"y":410,"width":709,"height":13}},{"id":"ab4a71bc-0cc3-4b7c-ba67-d9eb28468a6d","block_type":"box","text":"Insurance Companies) would be treated for U.S. federal income tax purposes as the owners of the Fund shares","page_number":46,"box":{"x":116,"y":425,"width":765,"height":13}},{"id":"181845a0-23e9-4104-a5e7-1eeef7ef9833","block_type":"box","text":"and the income and gain from such Fund shares for the current and possibly prior taxable years could be","page_number":46,"box":{"x":116,"y":441,"width":727,"height":12}},{"id":"0eb1e5e2-9bc1-425c-ae68-1ea7e42a6b6f","block_type":"box","text":"taxable currently to the Contract holders. Contract holders could also be taxable in future years even if the","page_number":46,"box":{"x":116,"y":456,"width":741,"height":13}},{"id":"2bea72cd-0a07-44e5-a292-5d086444a724","block_type":"box","text":"segregated asset account subsequently complied with the diversification tests.","page_number":46,"box":{"x":116,"y":471,"width":533,"height":13}},{"id":"75b4f08b-4e72-46d8-bd99-0d3f9386192a","block_type":"box","text":"To satisfy these diversification requirements, as of the end of each calendar quarter or within 30 days","page_number":46,"box":{"x":116,"y":492,"width":701,"height":13}},{"id":"c9d5224f-f5e1-4ec9-aed0-41882b075c81","block_type":"box","text":"thereafter, each segregated asset account must meet one of two tests. Either (i) the segregated asset account","page_number":46,"box":{"x":116,"y":508,"width":740,"height":13}},{"id":"26b67fe6-3897-4cee-85e9-79256c830671","block_type":"box","text":"must have no more than 55% of its total assets be represented by any one investment, no more than 70% by","page_number":46,"box":{"x":116,"y":523,"width":755,"height":13}},{"id":"db71b16c-44f8-4be4-81c4-8a703645609b","block_type":"box","text":"any two investments, no more than 80% by any three investments, and no more than 90% by any four","page_number":46,"box":{"x":116,"y":538,"width":717,"height":13}},{"id":"a031fb81-d349-4f79-923b-60120e36930c","block_type":"box","text":"investments or (ii) the segregated asset account must both (a) meet all the tax diversification requirements","page_number":46,"box":{"x":116,"y":553,"width":730,"height":13}},{"id":"7be7830a-0831-406e-8e4a-0469e4c83d48","block_type":"box","text":"under Section 851(b)(3) of the Code (which are applicable to all regulated investment companies) and (b) have","page_number":46,"box":{"x":116,"y":569,"width":766,"height":13}},{"id":"60591f83-0b54-4226-b167-c639540e8a63","block_type":"box","text":"no more than 55% of the value of its total assets be attributable to cash, cash items (including receivables),","page_number":46,"box":{"x":116,"y":584,"width":740,"height":13}},{"id":"5795135d-b129-4eea-8c47-2e4cbc50f80f","block_type":"box","text":"Government securities or securities of other regulated investment companies. For purposes of the first test, all","page_number":46,"box":{"x":117,"y":599,"width":756,"height":13}},{"id":"b1c27fda-e6e5-439b-aa31-aeb0c9583090","block_type":"box","text":"securities of the same issuer are considered a single investment, but in the case of Government securities, each","page_number":46,"box":{"x":116,"y":614,"width":757,"height":13}},{"id":"234ab33d-a86a-4e3f-8920-dfaca5e306c6","block_type":"box","text":"Government agency or instrumentality is considered to be a separate issuer. An alternative diversification test","page_number":46,"box":{"x":117,"y":630,"width":756,"height":12}},{"id":"4fbe4964-5422-488c-b1dd-06f179a278cf","block_type":"box","text":"may be available under certain circumstances.","page_number":46,"box":{"x":116,"y":645,"width":317,"height":13}},{"id":"d8ba08b1-b76b-4561-ac71-33f4c8a783fa","block_type":"box","text":"Section 817(h) of the Code provides a look-through rule for purposes of testing the diversification of a","page_number":46,"box":{"x":116,"y":667,"width":709,"height":12}},{"id":"2c0d7a06-52fd-4d54-af09-0e8cdd9069a6","block_type":"box","text":"segregated asset account that invests in a regulated investment company such as a Fund. If the look-through","page_number":46,"box":{"x":116,"y":682,"width":748,"height":13}},{"id":"eac2ef95-02ae-425f-8229-210135686e93","block_type":"box","text":"rule applies, a beneficial interest in a regulated investment company shall not be treated as a single investment","page_number":46,"box":{"x":116,"y":698,"width":760,"height":12}},{"id":"310088bb-025e-4910-a745-391c4a85b0f4","block_type":"box","text":"of a segregated asset account; instead, a pro rata portion of each asset of the regulated investment company","page_number":46,"box":{"x":116,"y":713,"width":745,"height":13}},{"id":"1958a883-e3de-4841-8167-8313dee2341b","block_type":"box","text":"shall be treated as an asset of the segregated asset account. Treasury Regulations Section 1.817-5(f)(2)","page_number":46,"box":{"x":116,"y":729,"width":706,"height":12}},{"id":"d6ffdd64-3c12-4dce-ad02-02ba4e81e96d","block_type":"box","text":"provides (except as otherwise permitted) that the look-through rule shall apply to a regulated investment","page_number":46,"box":{"x":116,"y":744,"width":725,"height":13}},{"id":"14a5a6c3-0206-4670-b5e7-9a89ad73dbe0","block_type":"box","text":"company only if (i) all the beneficial interests in the regulated investment company are held by one or more","page_number":46,"box":{"x":116,"y":760,"width":742,"height":12}},{"id":"b6dea2ae-51ca-4b0e-a8d2-a4ea2eb0e794","block_type":"box","text":"segregated asset accounts of one or more insurance companies and (ii) public access to such regulated","page_number":46,"box":{"x":116,"y":775,"width":703,"height":13}},{"id":"08375837-f666-4207-8b30-25ff4e7aeaab","block_type":"box","text":"investment company is available exclusively through the purchase of a variable contract.","page_number":46,"box":{"x":116,"y":791,"width":612,"height":12}},{"id":"30fe4aa7-c409-4546-88eb-37b0f7fb6122","block_type":"box","text":"Investor Control Prohibitions","page_number":46,"box":{"x":136,"y":814,"width":213,"height":10}},{"id":"ab520061-a99d-4714-bf91-888fca2515dc","block_type":"box","text":"For a Contract to qualify for U.S. federal income tax deferral, it must avoid the prohibition on investor","page_number":46,"box":{"x":116,"y":838,"width":714,"height":13}},{"id":"39ac939b-4743-4cd9-b6d6-43dec5638e83","block_type":"box","text":"control so that assets in the segregated asset accounts supporting the Contract are considered to be owned for","page_number":46,"box":{"x":116,"y":854,"width":760,"height":13}},{"id":"3008d3d5-209c-428b-b2b0-22d251fa9c21","block_type":"box","text":"U.S. federal income tax purposes by the Insurance Company and not by the Contract holder. Accordingly, a","page_number":46,"box":{"x":116,"y":869,"width":750,"height":13}},{"id":"2fa5f28f-68ef-41aa-a22b-e5f46d4b8e25","block_type":"box","text":"I-30","page_number":46,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"3e1dd05a-9442-454c-9dae-98d156f8ef91","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":46,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"564d102e-7de1-48fc-bde0-cc6f3a52bdb6","block_type":"box","text":"Contract holder should not have an impermissible level of control over a segregated asset account’s or a","page_number":47,"box":{"x":117,"y":79,"width":719,"height":13}},{"id":"0c1a72a8-5f5d-485a-8ae2-a3d9d38f5073","block_type":"box","text":"Fund’s investment in any particular asset. If the Contract holder were considered the owner of the Fund shares","page_number":47,"box":{"x":116,"y":94,"width":766,"height":13}},{"id":"5978e612-5060-4704-8394-c11aeabfdbfc","block_type":"box","text":"for U.S. federal income tax purposes, income and gain earned from such Fund shares for the current and prior","page_number":47,"box":{"x":116,"y":110,"width":764,"height":13}},{"id":"2711bd6b-5f3f-4bcc-88a9-f90fc07544c8","block_type":"box","text":"taxable years would be taxable currently to the Contract holders.","page_number":47,"box":{"x":116,"y":125,"width":452,"height":13}},{"id":"425cd662-bba5-44cf-8a50-7bc5da695a02","block_type":"box","text":"The IRS may consider several factors in determining whether a contract holder has an impermissible level of","page_number":47,"box":{"x":116,"y":148,"width":750,"height":13}},{"id":"9028ccac-8a49-4e7f-8cb4-7fed8b5a6ea9","block_type":"box","text":"investor control over a segregated asset account. One factor the IRS considers when a segregated asset account","page_number":47,"box":{"x":116,"y":163,"width":766,"height":13}},{"id":"95a161c8-c391-493f-a48d-1bebde38984b","block_type":"box","text":"invests in one or more regulated investment companies is whether shares in the regulated investment","page_number":47,"box":{"x":116,"y":179,"width":695,"height":13}},{"id":"a9fbd098-68eb-480f-948b-24145f4e95f2","block_type":"box","text":"companies are publicly available or whether such shares are available exclusively through the purchase of a","page_number":47,"box":{"x":116,"y":194,"width":743,"height":13}},{"id":"192d253a-9f1c-43b2-ab1c-6ca9efc97de8","block_type":"box","text":"variable contract. Each Fund sells its shares directly to separate accounts established and maintained by","page_number":47,"box":{"x":116,"y":210,"width":717,"height":13}},{"id":"703c48ee-cc6a-4f29-bf8f-260b26b1840d","block_type":"box","text":"insurance companies for the purpose of funding variable annuity and variable life insurance contracts and to","page_number":47,"box":{"x":116,"y":225,"width":752,"height":13}},{"id":"088406d6-8ce8-41f7-b5b8-f09b6e58cf69","block_type":"box","text":"certain qualified pension and retirement plans, or to other regulated investment companies meeting such","page_number":47,"box":{"x":116,"y":241,"width":723,"height":13}},{"id":"f8755edb-6b14-4eaa-bf27-0a49dde7837e","block_type":"box","text":"requirements, and not to other categories of shareholders.","page_number":47,"box":{"x":116,"y":256,"width":400,"height":13}},{"id":"f670eab2-ea8b-4288-86b8-5ddfedbff970","block_type":"box","text":"A second factor the IRS considers when a segregated asset account invests in one or more regulated","page_number":47,"box":{"x":116,"y":279,"width":688,"height":13}},{"id":"1f14a55a-dcd3-437f-80f8-cd4c74f8be2c","block_type":"box","text":"investment companies is whether a regulated investment company’s investment strategies are sufficiently","page_number":47,"box":{"x":116,"y":294,"width":723,"height":13}},{"id":"60b18df2-25d0-4e6b-8182-59da81258ef3","block_type":"box","text":"broad and general (such as stocks, bonds or money market instruments) to prevent a Contract holder from","page_number":47,"box":{"x":116,"y":310,"width":741,"height":13}},{"id":"a460fbd8-9c12-4885-9d21-6cbda232bcc3","block_type":"box","text":"being deemed to be making particular investment decisions through its investment in the segregated asset","page_number":47,"box":{"x":116,"y":325,"width":727,"height":13}},{"id":"53699ec1-7507-44d2-94bf-d0aa0d85125c","block_type":"box","text":"account. Under current IRS guidance, the investment strategies of each Fund are expected to be sufficiently","page_number":47,"box":{"x":116,"y":341,"width":740,"height":13}},{"id":"ae594fd7-7d45-456a-83c6-61bf1e639130","block_type":"box","text":"broad to satisfy this factor and prevent a Contract holder from being deemed to be making particular","page_number":47,"box":{"x":116,"y":356,"width":703,"height":13}},{"id":"19975e66-dcd4-4525-a99f-81da48dc37b0","block_type":"box","text":"investment decisions through its investment in the segregated asset account.","page_number":47,"box":{"x":116,"y":372,"width":522,"height":13}},{"id":"f57de396-0171-4fb7-8ccf-a1c898e760bd","block_type":"box","text":"Each Fund intends (1) to comply with the requirements necessary to allow a segregated asset account that","page_number":47,"box":{"x":116,"y":394,"width":733,"height":13}},{"id":"c3b5571e-a8f6-405a-9cf4-22021ef83a55","block_type":"box","text":"invests in the Fund to look-through to the Fund’s investments for purposes of satisfying the asset","page_number":47,"box":{"x":116,"y":410,"width":669,"height":13}},{"id":"17b6382e-c116-46ef-891f-6367dc280d80","block_type":"box","text":"diversification requirements, (2) to comply with the asset","page_number":47,"box":{"x":116,"y":425,"width":394,"height":13}},{"id":"69c75b55-47cf-4274-9878-e579a6c0cbe8","block_type":"box","text":"diversification requirements necessary to prevent the","page_number":47,"box":{"x":515,"y":425,"width":363,"height":13}},{"id":"e3dbf34c-4e39-4652-a37d-a2bb0e98d183","block_type":"box","text":"Contract holders from losing their special tax treatment because of investments in the Fund, and (3) to comply","page_number":47,"box":{"x":117,"y":441,"width":765,"height":13}},{"id":"4d7a681c-e151-4fb3-8801-871f9aa5ed15","block_type":"box","text":"with the requirements necessary to prevent the Contract hol","page_number":47,"box":{"x":116,"y":456,"width":415,"height":13}},{"id":"9de4dc43-006c-40c3-9dbc-70fb26184187","block_type":"box","text":"ders from having an impermissible level of control","page_number":47,"box":{"x":532,"y":456,"width":348,"height":13}},{"id":"5b722f5e-c207-4b78-9c9b-abd99b30d727","block_type":"box","text":"over the Fund’s assets.","page_number":47,"box":{"x":116,"y":472,"width":154,"height":10}},{"id":"16dd35dc-97c1-4bd9-adfc-6ad635506a55","block_type":"box","text":"Tax Treatment to Insurance Companies","page_number":47,"box":{"x":136,"y":497,"width":291,"height":13}},{"id":"36d21e30-ea09-45d3-9a66-f7f66ae823a9","block_type":"box","text":"Dividends paid by a Fund from its ordinary income and distributions of the Fund’s net realized capital gains","page_number":47,"box":{"x":116,"y":522,"width":749,"height":13}},{"id":"1504da9b-6b17-446e-8cee-9827608b0400","block_type":"box","text":"are includable in the respective Insurance Company’s gross income. Distributions of the Fund’s net realized","page_number":47,"box":{"x":116,"y":537,"width":742,"height":13}},{"id":"74ca6a2c-6012-45dd-9d5d-0338cf5dd1a4","block_type":"box","text":"long-term capital gains retain their character as long-term capital gains in the hands of the Insurance","page_number":47,"box":{"x":116,"y":553,"width":696,"height":13}},{"id":"72ab90ce-535c-434b-90f8-002f34096da0","block_type":"box","text":"Companies if certain requirements are met. The tax treatment of such dividends and distributions depends on","page_number":47,"box":{"x":117,"y":568,"width":758,"height":13}},{"id":"b4e6a1c0-6f6f-4758-bc5e-f0c500563638","block_type":"box","text":"the respective Insurance Company’s tax status. To the extent that income of the Fund represents dividends on","page_number":47,"box":{"x":116,"y":584,"width":760,"height":13}},{"id":"1b4f1cf9-e2c3-4817-b752-e1bf3a41b570","block_type":"box","text":"common or preferred stock, rather than interest income, its distributions to the Insurance Companies will be","page_number":47,"box":{"x":116,"y":599,"width":752,"height":13}},{"id":"ad70e856-11c0-4943-93ad-370b2096964c","block_type":"box","text":"eligible for the present dividends received deduction a","page_number":47,"box":{"x":116,"y":615,"width":371,"height":13}},{"id":"62d61e92-4e8b-4aed-9056-c68b39c3ca21","block_type":"box","text":"pplicable in the case of a life insurance company as","page_number":47,"box":{"x":487,"y":615,"width":353,"height":13}},{"id":"6aaddbe8-9325-4bfc-9b2f-931986a059f8","block_type":"box","text":"provided in the Code. See the Prospectus for the Contracts for a description of the respective Insurance","page_number":47,"box":{"x":116,"y":630,"width":712,"height":13}},{"id":"844d6cb3-a29e-49c6-b72e-6e6358eaf9b8","block_type":"box","text":"Company’s tax status and the charges which may be made to cover any taxes attributable to the Separate","page_number":47,"box":{"x":117,"y":646,"width":729,"height":13}},{"id":"e1fece92-5e83-4317-a941-bd6b312e1b7a","block_type":"box","text":"Account. Not later than 60 days after the end of each calendar year, the Fund will send to the Insurance","page_number":47,"box":{"x":116,"y":661,"width":720,"height":13}},{"id":"28b1af89-1256-425f-b80a-5c0524500575","block_type":"box","text":"Companies a written notice required by the Code reporting the amount and character of any distributions","page_number":47,"box":{"x":117,"y":677,"width":733,"height":13}},{"id":"77b92cc2-3974-4cfc-bcb5-a2f57934de77","block_type":"box","text":"made during such year. Any benefits of such designation will inure to the benefit of the Insurance Companies","page_number":47,"box":{"x":116,"y":692,"width":756,"height":13}},{"id":"6baa6d61-8754-406d-8b3b-3fa34d89c071","block_type":"box","text":"and will not be shared with Contract holders.","page_number":47,"box":{"x":116,"y":708,"width":315,"height":10}},{"id":"23014acd-2966-4079-a87f-8f4dda848889","block_type":"box","text":"This section summarizes some of the consequences under current federal tax law of an investment in a Fund.","page_number":47,"box":{"x":116,"y":730,"width":753,"height":13}},{"id":"2255ed92-1dca-400b-8199-07cca5d2c4dd","block_type":"box","text":"It is not a substitute for individualized tax advice. Consult your tax adviser about the potential tax","page_number":47,"box":{"x":116,"y":746,"width":682,"height":13}},{"id":"1a8152fb-5485-405c-aa1f-531bf8f55972","block_type":"box","text":"consequences of an investment in a Fund under all applicable tax laws.","page_number":47,"box":{"x":116,"y":761,"width":490,"height":13}},{"id":"26bce28e-1ea4-4adf-a1bb-c8664df27bd7","block_type":"box","text":"X. Additional Information","page_number":47,"box":{"x":116,"y":789,"width":237,"height":10}},{"id":"fa3753cc-0aa5-4930-ad88-30b652a3304b","block_type":"box","text":"Organization of the Company","page_number":47,"box":{"x":137,"y":813,"width":218,"height":13}},{"id":"d746a48d-527f-4d65-8cef-949d56ac36c2","block_type":"box","text":"The Company was incorporated under the laws of the State of Maryland on April 19, 2018. The Company","page_number":47,"box":{"x":116,"y":838,"width":745,"height":13}},{"id":"e331f53c-f8b6-4234-b278-af5ca701e690","block_type":"box","text":"and its series were organized for the purpose of acquiring the assets of corresponding series of BlackRock","page_number":47,"box":{"x":116,"y":854,"width":729,"height":13}},{"id":"d05b5dcc-4120-42d3-8a06-505f443bab48","block_type":"box","text":"Variable Series Funds, Inc. in the Reorganizations (defined below).","page_number":47,"box":{"x":116,"y":869,"width":461,"height":13}},{"id":"4c98bfe7-b8b4-4c1b-b1b2-00f9383d0578","block_type":"box","text":"I-31","page_number":47,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"d35db8a1-a25d-4fc0-8720-02ab67ca6643","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":47,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"f616e3d6-480a-456b-a4a3-f0e8a69f7b9d","block_type":"box","text":"On September 17, 2018, the BlackRock High Yield V.I. 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The 2025 Annual","page_number":50,"box":{"x":116,"y":594,"width":710,"height":13}},{"id":"7f6cc3bb-2f39-4160-8017-ef98baa0c9dd","block_type":"box","text":"Financial Statements have been audited by Deloitte & Touche LLP. The report of Deloitte & Touche LLP is","page_number":50,"box":{"x":116,"y":610,"width":749,"height":13}},{"id":"577b87bd-f5a8-4e30-8af5-e5b9991dc7af","block_type":"box","text":"incorporated herein by reference. Such 2025 Annual Financi","page_number":50,"box":{"x":116,"y":625,"width":418,"height":13}},{"id":"d4f602d3-fb80-403a-afcd-77ecdb62a2ff","block_type":"box","text":"al Statements have been incorporated herein in","page_number":50,"box":{"x":535,"y":625,"width":324,"height":13}},{"id":"9b0b1151-d96e-4c21-a156-0865f3701c90","block_type":"box","text":"reliance upon the report of such firm given their authority as experts in accounting and auditing. Additional","page_number":50,"box":{"x":116,"y":641,"width":748,"height":13}},{"id":"cf27e60e-cdb1-408c-88cc-96f0ff82708c","block_type":"box","text":"copies of the Funds’ Annual and Semi-Annual Reports to shareholders and the Funds Annual and Semi","page_number":50,"box":{"x":116,"y":656,"width":720,"height":13}},{"id":"2748a874-95b7-47a2-b659-3d8b11d360ff","block_type":"box","text":"Annual Financial Statements and Additional Information may be obtained at no charge by telephoning the","page_number":50,"box":{"x":116,"y":672,"width":739,"height":13}},{"id":"e403965b-80dc-4cf2-84af-16a2b7170b3d","block_type":"box","text":"Distributor at the telephone number appearing on the front page of this SAI.","page_number":50,"box":{"x":116,"y":687,"width":530,"height":13}},{"id":"b59c6adc-f18c-4336-a681-44498e250bc6","block_type":"box","text":"I-34","page_number":50,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"0861f2e5-b987-482e-a511-d1a34150ea15","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":50,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"4075b3e2-61bd-41a6-8360-aa984d9a3b26","block_type":"box","text":"PART II","page_number":51,"box":{"x":432,"y":92,"width":149,"height":22}},{"id":"87e45915-41a2-4bf7-906e-d19b88675907","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be","page_number":51,"box":{"x":116,"y":136,"width":734,"height":12}},{"id":"50686106-4788-4e6e-b7ce-046c3034bf6d","block_type":"box","text":"referred to as a “Fund” or collectively with others as the “Funds.” Certain Funds may also be referred to","page_number":51,"box":{"x":117,"y":152,"width":770,"height":12}},{"id":"aa4297ab-9c7a-4634-b934-c9eebdcacb11","block_type":"box","text":"as “Municipal Funds” if they invest certain of their assets in municipal investments described below.","page_number":51,"box":{"x":116,"y":167,"width":743,"height":12}},{"id":"0c865742-8697-461e-9f01-cca7e3930598","block_type":"box","text":"Each Fund is organized either as a Maryland corporati","page_number":51,"box":{"x":117,"y":193,"width":393,"height":12}},{"id":"5cb6a005-0755-4b7b-b69c-1d12e7c8b4fd","block_type":"box","text":"on, a Massachusetts business trust or a Delaware","page_number":51,"box":{"x":511,"y":193,"width":369,"height":11}},{"id":"dcc3032b-f172-48aa-92ce-c72eb86569fa","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature vari","page_number":51,"box":{"x":116,"y":208,"width":384,"height":12}},{"id":"c61d673c-2f0c-469e-8e75-0f3b63ec55c6","block_type":"box","text":"es. For ease and clarity of presentation, shares of","page_number":51,"box":{"x":501,"y":208,"width":365,"height":12}},{"id":"abfd8327-efaa-4ee6-8554-bf0ec90c0b76","block_type":"box","text":"common stock and shares of beneficial interest are re","page_number":51,"box":{"x":116,"y":224,"width":390,"height":9}},{"id":"9a99fa59-e567-4b66-a3d7-fcf9b645cb72","block_type":"box","text":"ferred to herein as “shares” or “Common Stock,”","page_number":51,"box":{"x":507,"y":224,"width":355,"height":11}},{"id":"d23ea6ec-49fc-499f-abe8-91aa5307acbd","block_type":"box","text":"holders of shares of Common Stock are referred to","page_number":51,"box":{"x":117,"y":239,"width":374,"height":10}},{"id":"96e8c623-ec5b-4d3c-b723-f49498c87dfc","block_type":"box","text":"as “shareholders,” the trustees or directors of each","page_number":51,"box":{"x":492,"y":239,"width":372,"height":12}},{"id":"dd962b76-91be-45cf-a725-abc0fec3fadf","block_type":"box","text":"Fund are referred to as “Directors,” the boards of tru","page_number":51,"box":{"x":117,"y":255,"width":376,"height":11}},{"id":"a2d98881-c330-4829-8da7-223c75e620e0","block_type":"box","text":"stees/directors of each Fund are referred to as the","page_number":51,"box":{"x":495,"y":255,"width":370,"height":10}},{"id":"52db3461-ae75-4537-82a3-c267d533fb05","block_type":"box","text":"“Board of Directors” or the “Board,” BlackRock A","page_number":51,"box":{"x":116,"y":270,"width":341,"height":12}},{"id":"8875f0ed-9c4e-4226-9e36-72abddf4b251","block_type":"box","text":"Advisors, LLC, BlackRock Fund Advisors or their","page_number":51,"box":{"x":457,"y":270,"width":360,"height":12}},{"id":"5fef2ecb-681e-4a75-bb8e-e8abd0d50d27","block_type":"box","text":"respective affiliates is the investment adviser or","page_number":51,"box":{"x":117,"y":286,"width":343,"height":12}},{"id":"0c637279-6d37-4913-b138-d39e786bfa94","block_type":"box","text":"r manager of each Fund and is referred to herein as the","page_number":51,"box":{"x":460,"y":286,"width":404,"height":12}},{"id":"1e405919-7d44-4b7c-9105-9b3de41a37e9","block_type":"box","text":"“Manager” or “BlackRock,” and the investment","page_number":51,"box":{"x":116,"y":301,"width":337,"height":12}},{"id":"d20dd4ea-e200-412b-8079-89834776b8b2","block_type":"box","text":"advisory agreement or","page_number":51,"box":{"x":453,"y":301,"width":169,"height":12}},{"id":"8f2044e3-8b42-4fd4-99b2-9bbbbda4f3cf","block_type":"box","text":"r management agreement","page_number":51,"box":{"x":621,"y":302,"width":190,"height":11}},{"id":"fa579005-3715-4087-81d2-87418b4c7199","block_type":"box","text":"applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s Articles of","page_number":51,"box":{"x":116,"y":317,"width":700,"height":12}},{"id":"b5687c59-8f7c-4a51-868a-33b086ee9153","block_type":"box","text":"Incorporation or Declaration of Tr","page_number":51,"box":{"x":117,"y":332,"width":240,"height":12}},{"id":"e6935aa9-c8ca-43e2-8578-1acfb29fd5ab","block_type":"box","text":"ust, together with all amendments thereto,","page_number":51,"box":{"x":358,"y":332,"width":304,"height":12}},{"id":"e66b2ab0-71f5-4411-95ce-b9d26ecaf389","block_type":"box","text":"is referred to as its “charter.”","page_number":51,"box":{"x":664,"y":332,"width":215,"height":10}},{"id":"459a686f-1f3c-47e4-90e6-dca95a347f43","block_type":"box","text":"The Investment Company Act of 1940, as amended, is","page_number":51,"box":{"x":116,"y":348,"width":402,"height":12}},{"id":"cbae0cad-f62f-4786-96e0-53ddf094773e","block_type":"box","text":"referred to herein as the “Investment Company","page_number":51,"box":{"x":519,"y":348,"width":345,"height":12}},{"id":"0e590cde-00dd-4a77-8b65-363d9f319686","block_type":"box","text":"Act.” The Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities","page_number":51,"box":{"x":116,"y":363,"width":767,"height":12}},{"id":"0fcaed03-b8d5-405e-aacb-5b57d1bb51ae","block_type":"box","text":"and Exchange Commission is referred to herein as the “Commission” or the “SEC.”","page_number":51,"box":{"x":116,"y":379,"width":609,"height":12}},{"id":"29e02e81-b666-4b68-8821-2021d851de27","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":51,"box":{"x":117,"y":405,"width":765,"height":12}},{"id":"e19efc50-4bd1-4f00-bd2f-ef1397a092f1","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each,","page_number":51,"box":{"x":116,"y":420,"width":770,"height":12}},{"id":"fdd83b1a-cbde-4ad9-aeb7-348b0958deeb","block_type":"box","text":"a “Master LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All","page_number":51,"box":{"x":116,"y":436,"width":734,"height":12}},{"id":"5c6bbbdd-5eae-475f-b1a1-389032370b19","block_type":"box","text":"investments are generally made at the level of the Master Portfolio. This structure is sometimes called","page_number":51,"box":{"x":117,"y":451,"width":761,"height":12}},{"id":"de5a2bf0-32a8-4fe7-a236-49e094b60bac","block_type":"box","text":"a “master/feeder” structure. A Feeder Fund’s investment results will correspond directly to the","page_number":51,"box":{"x":116,"y":467,"width":700,"height":12}},{"id":"259d7bb6-9dfe-495e-97be-febdbfce3603","block_type":"box","text":"investment results of the underlying Master Portfolio in which it invests. For simplicity, this SAI uses the","page_number":51,"box":{"x":117,"y":482,"width":770,"height":12}},{"id":"3f59565a-2bd8-4cd0-8ebb-a848830ce0e2","block_type":"box","text":"term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":51,"box":{"x":116,"y":498,"width":503,"height":9}},{"id":"9040e961-ba2e-45b0-99d1-7d2ea4b2f74d","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information","page_number":51,"box":{"x":117,"y":523,"width":747,"height":13}},{"id":"34da63c7-d0ad-4ca7-bf9d-039b89a9a41d","block_type":"box","text":"about all funds in the BlackRock-advised fund complex. Certain information contained herein may not","page_number":51,"box":{"x":116,"y":539,"width":757,"height":12}},{"id":"562acfc3-6420-4d9c-bd20-efd7036b8ed7","block_type":"box","text":"be relevant to a particular Fund.","page_number":51,"box":{"x":117,"y":555,"width":241,"height":11}},{"id":"adde743b-744d-4ab8-b06d-a47e814223b3","block_type":"box","text":"Investment Risks and Considerations","page_number":51,"box":{"x":119,"y":595,"width":675,"height":23}},{"id":"5bec304c-0ab6-48a2-82bd-7956ecb5f273","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one","page_number":51,"box":{"x":116,"y":634,"width":772,"height":13}},{"id":"6c34db8c-b9c2-4648-b457-eeeb47465ddb","block_type":"box","text":"or more of the Funds may use, and the risks and considerations associated with those investments","page_number":51,"box":{"x":116,"y":650,"width":740,"height":12}},{"id":"9e68fe86-7dd7-451e-9bb0-c3d4fa87127a","block_type":"box","text":"and investment strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the","page_number":51,"box":{"x":116,"y":665,"width":685,"height":13}},{"id":"f1182ca7-4151-44dc-a01d-ed245362ceb0","block_type":"box","text":"“Investment Objective and Policies,” “Investment Objectives and Policies” or “Investment Strategies","page_number":51,"box":{"x":116,"y":681,"width":737,"height":12}},{"id":"fe50422c-ac78-49b8-80b6-5b0c85a2f83e","block_type":"box","text":"and Risks of the Fund” section, as applicable, of Part I of this SAI for further information on each","page_number":51,"box":{"x":116,"y":696,"width":714,"height":12}},{"id":"8ced69a8-17cd-45fd-bb33-f119aedc48f4","block_type":"box","text":"Fund’s investment policies and risks. Information contained in this section about the risks and","page_number":51,"box":{"x":117,"y":712,"width":692,"height":12}},{"id":"adeeaced-e2d2-4782-a613-5ea27b5d4fc1","block_type":"box","text":"considerations associated with a Fund’s investments and/or investment strategies applies only to those","page_number":51,"box":{"x":116,"y":728,"width":765,"height":12}},{"id":"6124fd3b-9cb5-4ab4-966b-141ad22e5a74","block_type":"box","text":"Funds specifically identified in Part I of this SAI as making each type of investment or using each","page_number":51,"box":{"x":117,"y":743,"width":716,"height":12}},{"id":"1268bf73-bb13-4514-b0a8-038344dadbc9","block_type":"box","text":"investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does","page_number":51,"box":{"x":117,"y":758,"width":764,"height":13}},{"id":"4f8562ce-0229-441f-8a23-54963f994bb2","block_type":"box","text":"not form a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered","page_number":51,"box":{"x":117,"y":774,"width":735,"height":12}},{"id":"22d024d2-bcc0-4a4b-9c5c-77fcb2bac166","block_type":"box","text":"Fund. Only information that is clearly identified as applicable to a Covered Fund is considered to form a","page_number":51,"box":{"x":117,"y":789,"width":765,"height":13}},{"id":"258ce550-8d9d-466c-a45b-dc1d0362f7de","block_type":"box","text":"part of that Covered Fund’s SAI.","page_number":51,"box":{"x":117,"y":805,"width":238,"height":12}},{"id":"36ece828-1bc1-426b-bb1e-77da809f631d","block_type":"box","text":"Asset-Backed Securities.","page_number":51,"box":{"x":116,"y":831,"width":200,"height":9}},{"id":"a12f5369-18dc-4b64-84b8-489a8b4046f2","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans,","page_number":51,"box":{"x":317,"y":831,"width":519,"height":12}},{"id":"ed923506-7c2d-41aa-a8a3-8d28c55533d8","block_type":"box","text":"installment sale contracts, credit card receivables or other assets. Asset-backed securities are “pass","page_number":51,"box":{"x":117,"y":846,"width":749,"height":12}},{"id":"0820df42-0b6e-4a30-baf1-a187bce8157f","block_type":"box","text":"through” securities, meaning that principal and interest payments — net of expenses — made by the","page_number":51,"box":{"x":116,"y":862,"width":751,"height":12}},{"id":"6daf30cb-4d2d-4c6a-a3b9-941f3ae3ed71","block_type":"box","text":"borrower on the underlying assets (such as credit card receivables) are passed through to a Fund. The","page_number":51,"box":{"x":117,"y":877,"width":768,"height":12}},{"id":"6185d881-94b6-448c-8ff7-c36dc3182ccd","block_type":"box","text":"II-1","page_number":51,"box":{"x":489,"y":909,"width":20,"height":9}},{"id":"53e40cc8-63aa-4a12-8a06-6ea0f0dee88e","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":51,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"aa118c4a-0c95-42cf-924f-0c34c01e6937","block_type":"box","text":"value of asset-backed securities, like that of traditional fixed-income securities, typically increases","page_number":52,"box":{"x":116,"y":87,"width":729,"height":12}},{"id":"adec4f28-a402-4c57-8fd1-ecdb44b87dd3","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, asset-backed securities differ","page_number":52,"box":{"x":116,"y":102,"width":770,"height":12}},{"id":"445d5711-17a3-4764-94ce-230244df0345","block_type":"box","text":"from traditional fixed-income securities because of their potential for prepayment. The price paid by a","page_number":52,"box":{"x":116,"y":118,"width":755,"height":12}},{"id":"05aa0f65-3015-4de0-9a49-00b21472ad40","block_type":"box","text":"Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and the","page_number":52,"box":{"x":117,"y":134,"width":767,"height":12}},{"id":"367e6bc4-0e3a-47d7-9d3b-fa098ceb1f91","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of","page_number":52,"box":{"x":116,"y":149,"width":709,"height":12}},{"id":"ebb297b9-59ff-4b9b-b446-e9631f0cb3df","block_type":"box","text":"prepayment of the underlying assets. In a period of declining interest rates, borrowers may prepay the","page_number":52,"box":{"x":117,"y":165,"width":761,"height":12}},{"id":"23ec4031-907e-4e21-8422-35bbfc645222","block_type":"box","text":"underlying assets more quickly than anticipated, thereby reducing the yield to maturity and the average","page_number":52,"box":{"x":117,"y":180,"width":769,"height":12}},{"id":"f69db9f6-b5ed-433b-ab8c-b87ada7c1682","block_type":"box","text":"life of the asset-backed securities. Moreover, when a Fund reinvests the proceeds of a prepayment in","page_number":52,"box":{"x":117,"y":196,"width":758,"height":12}},{"id":"0a541802-bca4-4702-aadd-94516c39c011","block_type":"box","text":"these circumstances, it will likely receive a rate of interest that is lower than the rate on the security that","page_number":52,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"ba4bf716-539c-4f1c-b82d-be303c59ccde","block_type":"box","text":"was prepaid. To the extent that a Fund purchases asset-backed securities at a premium, prepayments","page_number":52,"box":{"x":116,"y":227,"width":765,"height":12}},{"id":"5ad08c5e-d28a-4268-afea-2efa1d26bacb","block_type":"box","text":"may result in a loss to the extent of the premium paid. If a Fund buys such securities at a discount,","page_number":52,"box":{"x":117,"y":242,"width":736,"height":12}},{"id":"e59b2056-d7bb-4b47-94dd-311577261b7a","block_type":"box","text":"both scheduled payments and unscheduled prepayments will increase current and total returns and","page_number":52,"box":{"x":117,"y":258,"width":742,"height":12}},{"id":"d1cbbe71-82d7-413b-ae44-c3baebc46640","block_type":"box","text":"unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":52,"box":{"x":117,"y":273,"width":738,"height":12}},{"id":"e0946f20-1af5-4a9c-bbe4-33dd2a196b1c","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the","page_number":52,"box":{"x":116,"y":289,"width":772,"height":12}},{"id":"ab652a71-82d2-4848-8d13-1982eff064ac","block_type":"box","text":"underlying assets may occur at a slower than expected rate, creating maturity extension risk. This","page_number":52,"box":{"x":117,"y":304,"width":730,"height":12}},{"id":"54261522-5b13-437d-9223-b924daa9427f","block_type":"box","text":"particular risk may effectively change a security that was considered short- or intermediate-term at the","page_number":52,"box":{"x":117,"y":320,"width":762,"height":12}},{"id":"c2f4492b-af6d-493b-871d-ab4db446ea0d","block_type":"box","text":"time of purchase into a longer term security. Since the value of longer-term securities generally","page_number":52,"box":{"x":116,"y":335,"width":710,"height":12}},{"id":"f9989c54-96bf-4af5-897b-76a836a13cc9","block_type":"box","text":"fluctuates more widely in response to changes in interest rates than does the value of shorter-term","page_number":52,"box":{"x":116,"y":351,"width":736,"height":12}},{"id":"3311b9bf-38e7-47d3-8b1a-bb1b9a7fab55","block_type":"box","text":"securities, maturity extension risk could increase the volatility of the Fund. When interest rates decline,","page_number":52,"box":{"x":116,"y":366,"width":766,"height":12}},{"id":"75c31412-2ce4-42b5-b3b5-a3d13f035678","block_type":"box","text":"the value of an asset-backed security with prepayment features may not increase as much as that of","page_number":52,"box":{"x":116,"y":382,"width":751,"height":12}},{"id":"4f074788-3260-4880-95b9-12b27ededc89","block_type":"box","text":"other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate","page_number":52,"box":{"x":116,"y":397,"width":767,"height":12}},{"id":"f371dd3c-5241-46bf-80c8-8e2ffb460706","block_type":"box","text":"or retard prepayments and thus affect maturities.","page_number":52,"box":{"x":116,"y":413,"width":368,"height":12}},{"id":"8f251d5b-a5e4-44fc-b9f3-42f31b65a882","block_type":"box","text":"Asset-Based Securities.","page_number":52,"box":{"x":116,"y":444,"width":190,"height":9}},{"id":"60efd0f4-c34c-4fff-ba05-f9bab9559192","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the","page_number":52,"box":{"x":307,"y":444,"width":548,"height":12}},{"id":"1e7bac8b-83e8-409c-ad86-d7e4e8f99569","block_type":"box","text":"principal amount, redemption terms or conversion terms of which are related to the market price of","page_number":52,"box":{"x":117,"y":459,"width":734,"height":12}},{"id":"fc4fbba0-94e6-402a-802a-d8f846d8fb3b","block_type":"box","text":"some natural resource asset such as gold bullion. These securities are referred to as “asset-based","page_number":52,"box":{"x":116,"y":475,"width":737,"height":12}},{"id":"ebab4822-c93d-4a28-9d36-4f4e5035f43d","block_type":"box","text":"securities.” A Fund will purchase only asset-based securities that are rated, or are issued by issuers","page_number":52,"box":{"x":116,"y":490,"width":746,"height":12}},{"id":"7741c81c-591e-4a1d-9aa8-807d30037b9b","block_type":"box","text":"that have outstanding debt obligations rated, investment grade (for example, AAA, AA, A or BBB by","page_number":52,"box":{"x":116,"y":506,"width":744,"height":12}},{"id":"ed9ad205-fead-45d0-afab-6563ce6bc50f","block_type":"box","text":"S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by Moody’s Investors Service, Inc.","page_number":52,"box":{"x":116,"y":521,"width":719,"height":12}},{"id":"e3ebb630-cd62-47a6-b76a-29f02ef1eab5","block_type":"box","text":"(“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by issuers that the","page_number":52,"box":{"x":117,"y":537,"width":721,"height":12}},{"id":"ffe85213-c7f3-4a89-a028-a041af6e9d08","block_type":"box","text":"Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":52,"box":{"x":117,"y":552,"width":733,"height":12}},{"id":"d1a708e4-5c98-4f11-aedf-3b7446b86147","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and","page_number":52,"box":{"x":117,"y":568,"width":766,"height":12}},{"id":"dc18730f-7540-4bf6-9d4e-594ef6ec4f9c","block_type":"box","text":"may be more likely to be downgraded than securities rated in the three highest rating categories. If an","page_number":52,"box":{"x":117,"y":583,"width":759,"height":12}},{"id":"64592859-c9aa-438d-8486-ffda4f9ba4dc","block_type":"box","text":"asset-based security is backed by a bank letter of credit or other similar facility, the Manager may take","page_number":52,"box":{"x":116,"y":599,"width":764,"height":12}},{"id":"8c153bb9-7c8f-4562-95b3-67132d45597f","block_type":"box","text":"such backing into account in determining the creditworthiness of the issuer. While the market prices for","page_number":52,"box":{"x":116,"y":614,"width":769,"height":12}},{"id":"28f9a2f2-3d64-4e9f-9058-ece1e12fc102","block_type":"box","text":"an asset-based security and the related natural resource asset generally are expected to move in the","page_number":52,"box":{"x":116,"y":630,"width":756,"height":12}},{"id":"862af078-d5d1-44d3-b9ee-cb6d7d1d0122","block_type":"box","text":"same direction, there may not be perfect correlation in the two price movements. Asset-based","page_number":52,"box":{"x":116,"y":645,"width":702,"height":12}},{"id":"e03e7e30-a6a3-4de2-a4f8-b2d4523950d3","block_type":"box","text":"securities may not be secured by a security interest in or claim on the underlying natural resource","page_number":52,"box":{"x":116,"y":661,"width":723,"height":12}},{"id":"ad1282ab-6cde-435f-a29b-9f903c9e1fb7","block_type":"box","text":"asset. The asset-based securities in which a Fund may invest may bear interest or pay preferred","page_number":52,"box":{"x":116,"y":676,"width":716,"height":12}},{"id":"53df1ba6-54a4-4679-867c-3e9590e61ec7","block_type":"box","text":"dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be","page_number":52,"box":{"x":116,"y":692,"width":738,"height":12}},{"id":"f79aadbc-a954-4eee-baa5-95dfe25b7f0c","block_type":"box","text":"payable at maturity in cash at the stated principal amount or, at the option of the holder, directly in a","page_number":52,"box":{"x":117,"y":707,"width":738,"height":12}},{"id":"b1df0060-a8b7-4562-b0c7-9dc23f554716","block_type":"box","text":"stated amount of the asset to which it is related. In such instance, because no Fund presently intends","page_number":52,"box":{"x":116,"y":723,"width":753,"height":12}},{"id":"d0f20f1d-a47b-4efa-a481-7654f7f0e00c","block_type":"box","text":"to invest directly in natural resource assets, a Fund would sell the asset-based security in the","page_number":52,"box":{"x":116,"y":738,"width":691,"height":12}},{"id":"47d4c092-9c8f-4a02-8263-a0b4213bfb9e","block_type":"box","text":"secondary market, to the extent one exists, prior to maturity if the value of the stated amount of the","page_number":52,"box":{"x":116,"y":754,"width":733,"height":12}},{"id":"54ab5b61-9cae-4450-acbc-f5d78409746c","block_type":"box","text":"asset exceeds the stated principal amount and thereby realize the appreciation in the underlying asset.","page_number":52,"box":{"x":116,"y":769,"width":763,"height":12}},{"id":"742beef0-d42f-4852-b271-bce1ec4f6534","block_type":"box","text":"Precious Metal-Related Securities.","page_number":52,"box":{"x":116,"y":800,"width":256,"height":10}},{"id":"9d1c841e-c36d-4c82-ad3b-c40f45de8929","block_type":"box","text":"A Fund may invest in the equity and other securities of companies","page_number":52,"box":{"x":378,"y":800,"width":491,"height":12}},{"id":"263a10a7-c07c-47a6-954f-660dddc10427","block_type":"box","text":"that explore for, extract, process or deal in precious metals (","page_number":52,"box":{"x":116,"y":816,"width":447,"height":12}},{"id":"40a3c426-71e2-44fd-ac23-cad2af751239","block_type":"box","text":"e.g.","page_number":52,"box":{"x":564,"y":818,"width":26,"height":10}},{"id":"92df3d7c-0e7d-45c7-9da1-4cb9f9ea1ae0","block_type":"box","text":", gold, silver and platinum), and in","page_number":52,"box":{"x":593,"y":816,"width":249,"height":12}},{"id":"fe057f2a-d938-4785-aabc-149b97379a2f","block_type":"box","text":"asset-based securities indexed to the value of such metals. Such securities may be purchased when","page_number":52,"box":{"x":116,"y":831,"width":752,"height":12}},{"id":"e1bcb954-2f6d-4a20-87a5-b26a20c4de12","block_type":"box","text":"they are believed to be attractively priced in relation to the value of a company’s precious metal-related","page_number":52,"box":{"x":116,"y":847,"width":769,"height":12}},{"id":"07fbface-161b-437d-a062-8eb480cd13f0","block_type":"box","text":"assets or when the values of precious metals are expected to benefit from inflationary pressure or","page_number":52,"box":{"x":116,"y":862,"width":731,"height":12}},{"id":"57d5af5a-9341-4d87-bbe2-a0abb6aea186","block_type":"box","text":"other economic, political or financial uncertainty or instability. Based on historical experience, during","page_number":52,"box":{"x":116,"y":878,"width":746,"height":12}},{"id":"ded45eb8-2c92-4430-9f3d-8c562b97a70d","block_type":"box","text":"II-2","page_number":52,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"f934113c-5727-4c07-a71c-be525e2f6d90","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":52,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"9d84fc41-9a37-469a-9540-0dd7d2082536","block_type":"box","text":"periods of economic or financial instability the securities of companies involved in precious metals may","page_number":53,"box":{"x":117,"y":87,"width":766,"height":12}},{"id":"751408ab-19ac-4b03-b73c-db48f8abe511","block_type":"box","text":"be subject to extreme price fluctuations, reflecting the high volatility of precious metal prices during","page_number":53,"box":{"x":117,"y":102,"width":736,"height":13}},{"id":"7738cd6f-c24c-4ddc-8f4d-75c020aa223c","block_type":"box","text":"such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":53,"box":{"x":116,"y":118,"width":721,"height":12}},{"id":"e83409d7-1d89-480f-b38c-d67ab0d9234f","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such","page_number":53,"box":{"x":117,"y":134,"width":754,"height":12}},{"id":"7b3d3e8d-9dbe-4d75-997e-16325a70f9b8","block_type":"box","text":"companies. The major producers of gold include the Republic of South Africa, Russia, Canada, the","page_number":53,"box":{"x":116,"y":149,"width":739,"height":12}},{"id":"9323f86e-841d-471d-b628-d29db5bcaa4d","block_type":"box","text":"United States, Brazil and Australia. Sales of gold by Russia are largely unpredictable and often relate","page_number":53,"box":{"x":117,"y":165,"width":754,"height":12}},{"id":"2e174c17-8161-4af3-b08f-b3a57bae0835","block_type":"box","text":"to political and economic considerations rather than to market forces. Economic, financial, social and","page_number":53,"box":{"x":116,"y":180,"width":753,"height":12}},{"id":"2eef8eee-dd34-4478-b35e-8e7fa24a617a","block_type":"box","text":"political factors within South Africa may significantly affect South African gold production.","page_number":53,"box":{"x":117,"y":196,"width":663,"height":12}},{"id":"cd34228b-677d-42da-9407-8b854cab3b60","block_type":"box","text":"Borrowing and Leverage.","page_number":53,"box":{"x":116,"y":227,"width":201,"height":12}},{"id":"dbaaa48d-a5c6-4940-85fc-39912ab13081","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or","page_number":53,"box":{"x":318,"y":227,"width":517,"height":12}},{"id":"c0d33bcc-3028-40a3-b9fc-b7b8cdc8e843","block_type":"box","text":"emergency purposes, including to meet redemptions or to settle securities transactions. Certain Funds","page_number":53,"box":{"x":116,"y":242,"width":765,"height":12}},{"id":"8cabd4f0-1ef0-4356-96c6-29b925782086","block_type":"box","text":"will not purchase securities at any time when borrowings exceed 5% of their total assets, except (a) to","page_number":53,"box":{"x":116,"y":258,"width":761,"height":12}},{"id":"201b708c-119c-46ba-877f-e69769b9266d","block_type":"box","text":"honor prior commitments or (b) to exercise subscription rights when outstanding borrowings have been","page_number":53,"box":{"x":117,"y":273,"width":768,"height":12}},{"id":"898fcfb9-cf8d-4b63-98d2-f562910ba2eb","block_type":"box","text":"obtained exclusively for settlements of other securities transactions.","page_number":53,"box":{"x":116,"y":289,"width":508,"height":12}},{"id":"be3d18a1-02cd-49d9-a95d-66bd59045718","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s","page_number":53,"box":{"x":117,"y":320,"width":740,"height":12}},{"id":"a35c6480-56fc-43a7-9fdf-1bc77e410400","block_type":"box","text":"Prospectus. The purchase of securities while borrowings are outstanding will have the effect of","page_number":53,"box":{"x":117,"y":335,"width":700,"height":12}},{"id":"01ba4909-d906-421c-804a-98c8148609ca","block_type":"box","text":"leveraging the Fund. Such leveraging increases the Fund’s exposure to capital risk, and borrowed funds","page_number":53,"box":{"x":117,"y":351,"width":769,"height":12}},{"id":"90f1953f-fedb-4888-bfbf-29e4d8bbe8d7","block_type":"box","text":"are subject to interest costs that will reduce net income. The use of leverage by a Fund creates an","page_number":53,"box":{"x":116,"y":366,"width":727,"height":12}},{"id":"16e78b56-ac66-48f9-a58a-bbffca290864","block_type":"box","text":"opportunity for greater total return, but, at the same time, creates special risks. For example, leveraging","page_number":53,"box":{"x":116,"y":382,"width":765,"height":12}},{"id":"1f7179c7-7046-4666-9041-02da8fec575c","block_type":"box","text":"may exaggerate changes in the net asset value (“NAV”) of Fund shares and in the yield on the Fund’s","page_number":53,"box":{"x":117,"y":397,"width":751,"height":12}},{"id":"662121bc-468e-49d2-9c42-7a9b4ffef56a","block_type":"box","text":"portfolio. Although the principal of such borrowings will be fixed, the Fund’s assets may change in value","page_number":53,"box":{"x":117,"y":413,"width":764,"height":12}},{"id":"be281e32-e7de-42a2-9e6a-d918c3744662","block_type":"box","text":"during the time the borrowings are outstanding. Borrowings will create interest expenses for the Fund","page_number":53,"box":{"x":116,"y":428,"width":749,"height":12}},{"id":"ae074b9a-3dbc-408e-83ed-2b15756a0335","block_type":"box","text":"that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":53,"box":{"x":116,"y":444,"width":769,"height":12}},{"id":"1636d60c-74ed-46b0-836b-6b35e6cb7f9c","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the","page_number":53,"box":{"x":116,"y":459,"width":738,"height":12}},{"id":"a391e023-f430-4e1d-90e2-d78006b01f54","block_type":"box","text":"Fund will have to pay on the borrowings, the Fund’s return will be greater than if leverage had not been","page_number":53,"box":{"x":117,"y":475,"width":761,"height":12}},{"id":"f5ae2d8b-b6ed-45c6-91b7-ff23db4c4648","block_type":"box","text":"used. Conversely, if the income or capital appreciation from the securities purchased with such","page_number":53,"box":{"x":117,"y":490,"width":701,"height":12}},{"id":"25a23f61-5500-437c-bdf5-7b6452832c7a","block_type":"box","text":"borrowed funds is not sufficient to cover the cost of borrowing, the return to the Fund will be less than if","page_number":53,"box":{"x":117,"y":506,"width":761,"height":12}},{"id":"42ec40df-e419-4fc7-9b0a-bbcab8ac0e05","block_type":"box","text":"leverage had not been used and, therefore, the amount available for distribution to shareholders as","page_number":53,"box":{"x":117,"y":521,"width":732,"height":12}},{"id":"6368a633-3a5e-433e-97a2-9d336c6d26d7","block_type":"box","text":"dividends will be reduced. In the latter case, the Manager in its best judgment nevertheless may","page_number":53,"box":{"x":116,"y":537,"width":709,"height":12}},{"id":"49ddd2f0-8f75-488c-a3f3-7c0fe579f378","block_type":"box","text":"determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":53,"box":{"x":116,"y":552,"width":699,"height":12}},{"id":"960e755b-c27d-418e-b77a-b3f356d9ce73","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":53,"box":{"x":116,"y":568,"width":677,"height":12}},{"id":"26ac8c70-f531-40ff-90b7-c07f8d01fa9e","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit","page_number":53,"box":{"x":117,"y":599,"width":727,"height":12}},{"id":"f6a25daf-5866-4f64-8cc8-bb32a14a2450","block_type":"box","text":"agreements relating to asset coverage, portfolio composition requirements and other matters. It is not","page_number":53,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"1719d45d-15a0-4930-b4c6-3a9f96e1b11a","block_type":"box","text":"anticipated that observance of such covenants would impede the Manager from managing a Fund’s","page_number":53,"box":{"x":116,"y":630,"width":745,"height":12}},{"id":"9c8ca944-437a-4e65-b931-cf3554f670a2","block_type":"box","text":"portfolio in accordance with the Fund’s investment objectives and policies. However, a breach of any","page_number":53,"box":{"x":117,"y":645,"width":751,"height":12}},{"id":"5450faf5-2da8-4e07-8f17-9a0b5bcdab55","block_type":"box","text":"such covenants not cured within the specified cure period may result in acceleration of outstanding","page_number":53,"box":{"x":116,"y":661,"width":732,"height":12}},{"id":"14b5de4d-4d00-4873-81ce-f62847eaed61","block_type":"box","text":"indebtedness and require the Fund to dispose of portfolio investments at a time when it may be","page_number":53,"box":{"x":117,"y":676,"width":706,"height":12}},{"id":"650e31c5-68de-4ea1-97f8-a8d406aa467f","block_type":"box","text":"disadvantageous to do so.","page_number":53,"box":{"x":116,"y":692,"width":195,"height":12}},{"id":"5e24ade6-c634-4eb1-8b54-2b2e5356e78e","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such","page_number":53,"box":{"x":117,"y":723,"width":699,"height":12}},{"id":"177bf8d1-6fe9-4ddb-9067-74e5d8259690","block_type":"box","text":"borrowings are no less favorable than those available from comparable sources of funds in the","page_number":53,"box":{"x":117,"y":738,"width":701,"height":12}},{"id":"01c7e8b7-a3d3-4668-9a5b-6804f7c9fd2d","block_type":"box","text":"marketplace.","page_number":53,"box":{"x":117,"y":754,"width":94,"height":12}},{"id":"6f740cac-52e1-483e-a917-78b31fb11971","block_type":"box","text":"Cash Management.","page_number":53,"box":{"x":117,"y":785,"width":151,"height":12}},{"id":"8cef3a84-5a86-4b15-8713-7ded08635193","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide","page_number":53,"box":{"x":275,"y":785,"width":567,"height":12}},{"id":"0d26f1e8-2339-45d4-85f5-a9114806e3cd","block_type":"box","text":"liquidity necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if","page_number":53,"box":{"x":117,"y":800,"width":752,"height":12}},{"id":"7ade333c-23e9-4845-9d63-84173c54d534","block_type":"box","text":"considered appropriate in the opinion of the Manager, a portion of a Fund’s assets may be invested in","page_number":53,"box":{"x":116,"y":816,"width":755,"height":12}},{"id":"cca3af51-5caa-45a4-bcec-6918786bc18a","block_type":"box","text":"certain types of instruments with remaining maturities of 397 days or less for liquidity purposes. Such","page_number":53,"box":{"x":116,"y":831,"width":754,"height":12}},{"id":"db174b14-313e-463a-95ea-bd4d7ef66da6","block_type":"box","text":"instruments would consist of: (i) obligations of the U.S. Government, its agencies, instrumentalities,","page_number":53,"box":{"x":117,"y":847,"width":740,"height":12}},{"id":"83fc3942-57f2-4523-b564-0e990facc26c","block_type":"box","text":"authorities or political subdivisions (“U.S. Government Securities”); (ii) other fixed-income securities","page_number":53,"box":{"x":116,"y":862,"width":742,"height":12}},{"id":"18b30ea3-48c5-43ff-9838-174877017d9f","block_type":"box","text":"rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of comparable quality in the","page_number":53,"box":{"x":117,"y":878,"width":721,"height":12}},{"id":"de211364-4a90-41ae-ac53-927763d56801","block_type":"box","text":"II-3","page_number":53,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"6fbecc59-4d3d-4497-8f33-6e9fd557c9ce","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":53,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"0e65ead6-f646-401d-bb3f-2f22a61572e4","block_type":"box","text":"opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable certificates of","page_number":54,"box":{"x":116,"y":87,"width":768,"height":12}},{"id":"54915c95-0f1d-4e1c-a61d-7a0d44f31d5e","block_type":"box","text":"deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":54,"box":{"x":116,"y":102,"width":730,"height":13}},{"id":"f23b6128-eca1-447a-90ca-3a76502afc1a","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the","page_number":54,"box":{"x":117,"y":118,"width":718,"height":12}},{"id":"013396b9-3a9b-4a72-be14-3fbccb14adc3","block_type":"box","text":"issuer’s parent must have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or","page_number":54,"box":{"x":117,"y":134,"width":752,"height":12}},{"id":"48bb37a7-a054-4696-bbd6-b063c87a9c26","block_type":"box","text":"outstanding commercial paper, bank obligations or other short-term obligations rated Prime-1 by","page_number":54,"box":{"x":116,"y":149,"width":719,"height":12}},{"id":"ee4f6d15-9462-4a4b-aea8-653a572c3225","block_type":"box","text":"Moody’s or A-1 by S&P; or, if no such ratings are available, the instrument must be of comparable","page_number":54,"box":{"x":117,"y":165,"width":731,"height":12}},{"id":"0b0a8ce8-ffdb-4c50-adfb-17d93ddd807e","block_type":"box","text":"quality in the opinion of the Manager. For more information on money market instruments, see “Money","page_number":54,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"ae52884d-ec84-47c4-925c-3a00d325270b","block_type":"box","text":"Market Securities” below.","page_number":54,"box":{"x":117,"y":196,"width":192,"height":9}},{"id":"ba512f2c-06fb-45d2-9556-b07645d7c5fd","block_type":"box","text":"Collateralized Debt Obligations.","page_number":54,"box":{"x":117,"y":227,"width":251,"height":12}},{"id":"4dd7c342-5425-4c71-a669-ca28c7f33cf8","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations","page_number":54,"box":{"x":369,"y":227,"width":444,"height":12}},{"id":"ba2817b5-b1e8-4cc3-a388-e1e8718aff7f","block_type":"box","text":"(“CDOs”), which include collateralized bond obligations (“CBOs”), collateralized loan obligations","page_number":54,"box":{"x":117,"y":242,"width":713,"height":12}},{"id":"99a60fb9-3ff0-40f8-9b20-54e07d610cf9","block_type":"box","text":"(“CLOs”) and other similarly structured securities. CDOs are types of asset-backed securities. A CBO","page_number":54,"box":{"x":117,"y":258,"width":756,"height":12}},{"id":"ed8182b2-57b0-492f-ad84-6527138b760c","block_type":"box","text":"is ordinarily issued by a trust or other special purpose entity (“SPE”) and is typically backed by a","page_number":54,"box":{"x":117,"y":273,"width":716,"height":12}},{"id":"78d55727-5be6-4e55-9f2e-649281c84b50","block_type":"box","text":"diversified pool of fixed-income securities (which may include high risk, below investment grade","page_number":54,"box":{"x":116,"y":289,"width":713,"height":12}},{"id":"bb100772-bf6c-4245-805b-0bfecf6005f7","block_type":"box","text":"securities) held by such issuer. A CLO is ordinarily issued by a trust or other SPE and is typically","page_number":54,"box":{"x":116,"y":304,"width":722,"height":12}},{"id":"c69d1d40-ae45-445d-9621-cef3aeaedf00","block_type":"box","text":"collateralized by a pool of loans, which may include, among others, domestic and non-U.S. senior","page_number":54,"box":{"x":116,"y":320,"width":729,"height":12}},{"id":"b29a5cd7-2257-44c6-be05-f015c8959802","block_type":"box","text":"secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be","page_number":54,"box":{"x":116,"y":335,"width":756,"height":12}},{"id":"b7468436-01ee-4c34-aca6-022126ef9681","block_type":"box","text":"rated below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO","page_number":54,"box":{"x":117,"y":351,"width":757,"height":12}},{"id":"8ec06abd-c8b2-4495-aa02-ad35990b2c8a","block_type":"box","text":"organized outside of the United States may not be deemed to be foreign securities if the CLO is","page_number":54,"box":{"x":116,"y":366,"width":715,"height":12}},{"id":"49384051-e955-4f96-81de-03f9e1ebd843","block_type":"box","text":"collateralized by a pool of loans, a substantial portion of which are U.S. loans. Although certain CDOs","page_number":54,"box":{"x":116,"y":382,"width":758,"height":12}},{"id":"7bf81a50-f2e9-46ba-a2ea-6e2d52d2b808","block_type":"box","text":"may benefit from credit enhancement in the form of a senior-subordinate structure, over","page_number":54,"box":{"x":117,"y":397,"width":655,"height":12}},{"id":"ee540450-a8a2-4285-8952-a07087fd80b3","block_type":"box","text":"collateralization or bond insurance, such enhancement may not always be present, and may fail to","page_number":54,"box":{"x":116,"y":413,"width":735,"height":12}},{"id":"d2c2f5c8-3a55-4253-85a5-be2a92e01519","block_type":"box","text":"protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may use","page_number":54,"box":{"x":117,"y":428,"width":713,"height":12}},{"id":"66417a6e-c57d-439a-9461-17a40aa9ac70","block_type":"box","text":"derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly,","page_number":54,"box":{"x":116,"y":444,"width":758,"height":12}},{"id":"dc22982d-7140-4432-9d91-d3741d89ccb4","block_type":"box","text":"which entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge","page_number":54,"box":{"x":116,"y":459,"width":742,"height":12}},{"id":"9d2d841a-eaaf-4d2d-b367-e6f4d8fdcd63","block_type":"box","text":"management fees and administrative expenses, which are in addition to those of a Fund.","page_number":54,"box":{"x":117,"y":475,"width":664,"height":12}},{"id":"245f6525-603f-40bb-b55c-68a4e23f5a8f","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called","page_number":54,"box":{"x":117,"y":506,"width":724,"height":12}},{"id":"a2ab8193-4579-4b30-8af6-ea1a1243c340","block_type":"box","text":"tranches, varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss","page_number":54,"box":{"x":116,"y":521,"width":765,"height":12}},{"id":"e4384cf3-1fa7-4b4b-b725-e8d9a671594a","block_type":"box","text":"from defaults from the bonds or loans in the SPE and serves to protect the other, more senior tranches","page_number":54,"box":{"x":116,"y":537,"width":768,"height":12}},{"id":"822e8951-bd9b-488d-bc9c-1ebe49c9858c","block_type":"box","text":"from default (though such protection is not complete). Since it is partially protected from defaults, a","page_number":54,"box":{"x":116,"y":552,"width":737,"height":12}},{"id":"ac2be98c-31c2-4209-9b2b-57ca1e0baee2","block_type":"box","text":"senior tranche from a CBO or CLO typically has higher ratings and lower yields than its underlying","page_number":54,"box":{"x":116,"y":568,"width":733,"height":12}},{"id":"82f9532b-95b7-46f9-af87-5f21e9ff3078","block_type":"box","text":"securities, and may be rated investment grade. Despite the protection from the equity tranche, CBO or","page_number":54,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"3ae78e38-2883-4768-9284-5a74a261b98f","block_type":"box","text":"CLO tranches can experience substantial losses due to actual defaults, downgrades of the underlying","page_number":54,"box":{"x":117,"y":599,"width":758,"height":12}},{"id":"27b4b4b7-af80-4e69-9cab-ba8529037f9b","block_type":"box","text":"collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage tests,","page_number":54,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"57973a76-7779-40cc-83fe-5ff77594e5b3","block_type":"box","text":"increased sensitivity to defaults due to collateral default and disappearance of protecting tranches,","page_number":54,"box":{"x":117,"y":630,"width":734,"height":12}},{"id":"04e3af4d-afb0-4540-809c-3607870702d3","block_type":"box","text":"market anticipation of defaults as well as investor aversion to CBO or CLO securities as a class.","page_number":54,"box":{"x":117,"y":645,"width":716,"height":12}},{"id":"8ba326ce-31ce-429f-8f4b-5cd2005854fa","block_type":"box","text":"Interest on certain tranches of a CDO may be paid in kind or deferred and capitalized (paid in the form","page_number":54,"box":{"x":117,"y":661,"width":757,"height":12}},{"id":"24b9bb3a-8cfa-41a3-b2a0-2732ae6eb6b6","block_type":"box","text":"of obligations of the same type rather than cash), which involves continued exposure to default risk","page_number":54,"box":{"x":116,"y":676,"width":734,"height":12}},{"id":"30c2f02b-9b2d-407b-a57f-3ffd2b48a37e","block_type":"box","text":"with respect to such payments.","page_number":54,"box":{"x":116,"y":692,"width":229,"height":12}},{"id":"98449098-550a-448d-990e-01c4c3e3b0d2","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the","page_number":54,"box":{"x":116,"y":723,"width":728,"height":12}},{"id":"0d7b3c1f-cc68-43b8-863a-ee467611c798","block_type":"box","text":"class of the CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately","page_number":54,"box":{"x":116,"y":738,"width":712,"height":12}},{"id":"f829c317-a80f-4b3f-8af5-0413cec0613d","block_type":"box","text":"offered and sold, and thus are not registered under the securities laws. However, an active dealer","page_number":54,"box":{"x":116,"y":754,"width":725,"height":12}},{"id":"3773175c-bab7-474f-8129-29cbe0cfa226","block_type":"box","text":"market may exist for CDOs, allowing a CDO to qualify for Rule 144A transactions. In addition to the","page_number":54,"box":{"x":117,"y":769,"width":736,"height":12}},{"id":"776cc4ad-4b70-48a9-ab92-297f9c4cb1d8","block_type":"box","text":"normal risks associated with fixed-income securities and asset-backed securities generally discussed","page_number":54,"box":{"x":117,"y":785,"width":750,"height":12}},{"id":"a1fce201-d051-4147-ad34-ade8d1a23ca5","block_type":"box","text":"elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the possibility that","page_number":54,"box":{"x":116,"y":800,"width":737,"height":12}},{"id":"80fc806c-eaa8-456c-8c39-4667759ab541","block_type":"box","text":"distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":54,"box":{"x":116,"y":816,"width":751,"height":12}},{"id":"179d9ecc-869b-4448-80ad-8b6e4c67b0a2","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally","page_number":54,"box":{"x":117,"y":831,"width":708,"height":12}},{"id":"9a9b1e13-2246-48a7-804e-98318f36f51f","block_type":"box","text":"recognized statistical rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that","page_number":54,"box":{"x":117,"y":847,"width":754,"height":12}},{"id":"4b64f230-d3b0-49eb-a8ce-8df97385e312","block_type":"box","text":"are subordinate to other tranches; (iv) the structure and complexity of the transaction and the legal","page_number":54,"box":{"x":116,"y":862,"width":736,"height":12}},{"id":"32a5b395-c73d-42ff-b9b4-55e60d645148","block_type":"box","text":"documents could lead to disputes among investors regarding the characterization of proceeds; (v) the","page_number":54,"box":{"x":116,"y":878,"width":760,"height":12}},{"id":"718e7f4e-dfa7-460f-9b06-0a65101b461a","block_type":"box","text":"II-4","page_number":54,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"9fcc58bd-7ab7-4c82-ad3f-afece660571c","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":54,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"390c5763-2581-4afb-97b0-e38e04b8f1bf","block_type":"box","text":"investment return achieved by the Fund could be significantly different than those predicted by financial","page_number":55,"box":{"x":117,"y":87,"width":771,"height":12}},{"id":"337eb64d-1f27-49b2-9b99-fe16192e74db","block_type":"box","text":"models; (vi) the lack of a readily available secondary market for CDOs; (vii) the risk of forced “fire sale”","page_number":55,"box":{"x":117,"y":102,"width":765,"height":13}},{"id":"5305c753-8022-4372-a717-0593c998f477","block_type":"box","text":"liquidation due to technical defaults such as coverage test failures; and (viii) the CDO’s manager may","page_number":55,"box":{"x":117,"y":118,"width":756,"height":12}},{"id":"a7aad3c2-a385-4ac6-b92f-8bd5f6527abb","block_type":"box","text":"perform poorly.","page_number":55,"box":{"x":117,"y":134,"width":117,"height":12}},{"id":"4e8037ac-50f5-4a43-bf39-affcb71ef62c","block_type":"box","text":"Commercial Paper.","page_number":55,"box":{"x":117,"y":165,"width":150,"height":11}},{"id":"17d439c2-a79c-4b91-909c-85a4f7e581ac","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable","page_number":55,"box":{"x":268,"y":165,"width":607,"height":12}},{"id":"1684707b-bb90-4fa3-8946-2eabfb3e0649","block_type":"box","text":"by each Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance","page_number":55,"box":{"x":117,"y":180,"width":760,"height":12}},{"id":"b286ae65-002f-42c0-a7d6-ace59f446add","block_type":"box","text":"on the “private placement” exemption from registration afforded by Section 4(a)(2) of the Securities","page_number":55,"box":{"x":116,"y":196,"width":739,"height":12}},{"id":"33ca3626-2d52-40ea-ae63-0d3c062d6a91","block_type":"box","text":"Act. Section 4(a)(2) paper is restricted as to disposition under the Federal securities laws, and is","page_number":55,"box":{"x":116,"y":211,"width":719,"height":12}},{"id":"4c95a6e5-72e1-4882-a8ed-76ca1c2ddac2","block_type":"box","text":"frequently sold (and resold) to institutional investors such as the Fund through or with the assistance of","page_number":55,"box":{"x":116,"y":227,"width":769,"height":12}},{"id":"d72a0113-b1cb-4c9f-b2bc-0e7b9efb7a6a","block_type":"box","text":"investment dealers who make a market in the Section 4(a)(2) paper, thereby providing liquidity. Certain","page_number":55,"box":{"x":117,"y":242,"width":769,"height":12}},{"id":"a1f805a7-17b5-4350-aa34-a0af4d2e608f","block_type":"box","text":"transactions in Section 4(a)(2) paper may qualify for the registration exemption provided in Rule 144A","page_number":55,"box":{"x":116,"y":258,"width":759,"height":12}},{"id":"949692cf-6257-435e-90a7-813efd8898f7","block_type":"box","text":"under the Securities Act. Most Funds can purchase commercial paper rated (at the time of purchase)","page_number":55,"box":{"x":117,"y":273,"width":754,"height":12}},{"id":"640b5d78-5954-40fb-88be-82e2e12d1b97","block_type":"box","text":"“A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub-adviser,","page_number":55,"box":{"x":116,"y":289,"width":772,"height":12}},{"id":"7faf0da6-d980-474d-85a6-5cfc4069cc7c","block_type":"box","text":"“high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":55,"box":{"x":116,"y":304,"width":675,"height":12}},{"id":"3f84c4b1-d407-42b5-b7d4-429729771761","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all","page_number":55,"box":{"x":117,"y":335,"width":740,"height":12}},{"id":"20b053fa-48ed-41eb-ab52-70820fba2b1f","block_type":"box","text":"fixed income securities, commercial paper prices are susceptible to fluctuations in interest rates. If","page_number":55,"box":{"x":116,"y":351,"width":732,"height":12}},{"id":"81379742-f01c-4e4a-8c1a-a22f875c31f7","block_type":"box","text":"interest rates rise, commercial paper prices will decline and vice versa. However, the short-term nature","page_number":55,"box":{"x":117,"y":366,"width":767,"height":12}},{"id":"15db2ae9-f9bb-4c5f-8003-d2c05e6dbc7e","block_type":"box","text":"of a commercial paper investment generally makes it less susceptible to volatility than many other fixed","page_number":55,"box":{"x":116,"y":382,"width":771,"height":12}},{"id":"1b8e3c4a-e476-4125-b33d-db36882d8172","block_type":"box","text":"income securities because interest rate risk typically increases as maturity lengths increase.","page_number":55,"box":{"x":117,"y":397,"width":686,"height":12}},{"id":"1f3dd98e-a744-41bb-b891-a86f8239bd60","block_type":"box","text":"Commercial paper tends to yield smaller returns than longer-term corporate debt because securities","page_number":55,"box":{"x":117,"y":413,"width":746,"height":12}},{"id":"07db6148-433c-4419-9520-334ae42f9ae2","block_type":"box","text":"with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":55,"box":{"x":116,"y":428,"width":686,"height":12}},{"id":"468b7812-b97c-41fd-8e1e-6dfa82bf7b02","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":55,"box":{"x":117,"y":459,"width":535,"height":12}},{"id":"2baa185b-8401-437c-9659-156382db893a","block_type":"box","text":"Certain Funds seek to gain","page_number":55,"box":{"x":653,"y":459,"width":210,"height":12}},{"id":"3e459388-869c-419d-8dd5-b9005b826f98","block_type":"box","text":"exposure to the commodities markets primarily through investments in hybrid instruments. Hybrid","page_number":55,"box":{"x":116,"y":475,"width":727,"height":12}},{"id":"a82b25d1-4ac8-436d-8acb-d44dadba0eca","block_type":"box","text":"instruments are either equity or debt derivative securities with one or more commodity-dependent","page_number":55,"box":{"x":117,"y":490,"width":727,"height":12}},{"id":"a6b8a678-7016-463d-87bb-a9b433b6029f","block_type":"box","text":"components that have payment features similar to a commodity futures contract, a commodity option","page_number":55,"box":{"x":116,"y":506,"width":753,"height":12}},{"id":"7ee12af0-344a-46da-8ebc-8b9dd14dd601","block_type":"box","text":"contract, or a combination of both. Therefore, these instruments are “commodity-linked.” They are","page_number":55,"box":{"x":116,"y":521,"width":731,"height":12}},{"id":"ead7053e-647b-4634-887c-18b1ac89e518","block_type":"box","text":"considered “hybrid” instruments because they have both commodity-like and security-like","page_number":55,"box":{"x":116,"y":537,"width":667,"height":12}},{"id":"792e490c-bab2-4ab7-8542-b5e11ff0c1f4","block_type":"box","text":"characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":55,"box":{"x":116,"y":552,"width":738,"height":12}},{"id":"ffe25369-fe43-43bd-b1b0-c4bba542ebb3","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable","page_number":55,"box":{"x":116,"y":568,"width":766,"height":12}},{"id":"10765639-77cf-4d69-befa-9e7e50b48a50","block_type":"box","text":"economic variable.","page_number":55,"box":{"x":116,"y":583,"width":145,"height":10}},{"id":"862ba2b1-791d-4c64-8162-f4032e73d4d6","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than","page_number":55,"box":{"x":116,"y":614,"width":686,"height":12}},{"id":"eb2b4001-7e3f-49e6-a9c6-922d93951478","block_type":"box","text":"investments in traditional equity and debt securities when the value of those traditional securities is","page_number":55,"box":{"x":117,"y":630,"width":737,"height":12}},{"id":"652ee9e3-5800-478d-8cca-8281288f9b6c","block_type":"box","text":"declining due to adverse economic conditions. As an example, during periods of rising inflation, debt","page_number":55,"box":{"x":116,"y":645,"width":749,"height":12}},{"id":"9798630a-69f2-4a75-94d4-e9cc387ef5ee","block_type":"box","text":"securities have historically tended to decline in value due to the general increase in prevailing interest","page_number":55,"box":{"x":116,"y":661,"width":753,"height":12}},{"id":"cc1efe89-5935-43ce-aa8d-1077fc73311a","block_type":"box","text":"rates. Conversely, during those same periods of rising inflation, the prices of certain commodities, such","page_number":55,"box":{"x":117,"y":676,"width":763,"height":12}},{"id":"7ab0b6c6-a749-409e-a527-7eff8ae38d4b","block_type":"box","text":"as oil and metals, have historically tended to increase. Of course, there cannot be any guarantee that","page_number":55,"box":{"x":116,"y":692,"width":752,"height":12}},{"id":"bbf38ec9-89bd-4628-adb2-dec33974eea7","block_type":"box","text":"these investments will perform in that manner in the future, and at certain times the price movements","page_number":55,"box":{"x":116,"y":707,"width":749,"height":12}},{"id":"ad9ee8cb-b056-4e0f-9606-db2bd3533c07","block_type":"box","text":"of commodity-linked instruments have been parallel to those of debt and equity securities.","page_number":55,"box":{"x":116,"y":723,"width":665,"height":12}},{"id":"1097d1ed-eb57-426c-8d5b-20bd41b443f5","block_type":"box","text":"Commodities have historically tended to increase and decrease in value during different parts of the","page_number":55,"box":{"x":117,"y":738,"width":739,"height":12}},{"id":"50debd81-ea32-4100-ae23-0d5ea83ffd54","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in","page_number":55,"box":{"x":117,"y":754,"width":753,"height":12}},{"id":"72bba14c-cb95-49d2-9f8a-748aee00f0ee","block_type":"box","text":"tandem with the prices of financial assets and thus may not provide overall portfolio diversification","page_number":55,"box":{"x":116,"y":769,"width":725,"height":12}},{"id":"a3b9be45-dfca-4c03-9cdf-d677b0a4cc6e","block_type":"box","text":"benefits. Under favorable economic conditions, the Fund’s investments may be expected to under","page_number":55,"box":{"x":117,"y":785,"width":731,"height":12}},{"id":"5fce780d-a0cb-467e-bee3-7a2f728b0db0","block_type":"box","text":"perform an investment in traditional securities. Over the long term, the returns on the Fund’s","page_number":55,"box":{"x":117,"y":800,"width":682,"height":12}},{"id":"092304af-38b7-4e0f-8d3b-8401d9366883","block_type":"box","text":"investments are expected to exhibit low or negative correlation with stocks and bonds.","page_number":55,"box":{"x":117,"y":816,"width":637,"height":12}},{"id":"ae1bf2e0-afa4-42e8-b561-db97340d2ff4","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":55,"box":{"x":117,"y":847,"width":222,"height":12}},{"id":"d75ff91e-b846-4083-a3ee-cef630383f6e","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion","page_number":55,"box":{"x":341,"y":847,"width":546,"height":12}},{"id":"c99a6d7a-236a-4652-865b-00db19e05a45","block_type":"box","text":"from regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid","page_number":55,"box":{"x":116,"y":862,"width":761,"height":12}},{"id":"fdff1cba-6692-4b8c-b64a-87644415d879","block_type":"box","text":"instrument that qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid","page_number":55,"box":{"x":117,"y":878,"width":762,"height":12}},{"id":"91df4c68-0390-42f5-adde-289f55d69d70","block_type":"box","text":"II-5","page_number":55,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"dcc223d2-87f5-4523-bfef-c69945079689","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":55,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"b3911086-3336-4a17-8a78-d73a061574c3","block_type":"box","text":"instrument is considered to be predominantly a security if (a) the issuer of the hybrid instrument","page_number":56,"box":{"x":117,"y":87,"width":712,"height":12}},{"id":"ec943818-ef6a-478b-bb50-64a5ab070d95","block_type":"box","text":"receives payment in full of the purchase price of the hybrid instrument, substantially","page_number":56,"box":{"x":117,"y":102,"width":624,"height":13}},{"id":"0ba88c25-85ba-4939-8daf-1b167bc3d453","block_type":"box","text":"contemporaneously with delivery of the hybrid instrument; (b) the purchaser or holder of the hybrid","page_number":56,"box":{"x":116,"y":118,"width":735,"height":12}},{"id":"4c96f7b4-571e-4e38-bb98-deabb6ae87ae","block_type":"box","text":"instrument is not required to make any payment to the issuer in addition to the purchase price paid","page_number":56,"box":{"x":117,"y":134,"width":735,"height":12}},{"id":"c90262d3-c7b1-49f4-8991-ff5d7599ef58","block_type":"box","text":"under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the","page_number":56,"box":{"x":117,"y":149,"width":743,"height":12}},{"id":"dced6cd1-7770-4347-8f9d-50190d919c22","block_type":"box","text":"hybrid instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the","page_number":56,"box":{"x":117,"y":165,"width":770,"height":12}},{"id":"d84d6fe8-56a0-496c-93fb-76b19a01fb8f","block_type":"box","text":"instrument to mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as","page_number":56,"box":{"x":117,"y":180,"width":768,"height":12}},{"id":"e60210ec-a335-4479-a3db-4d15f89d0e3e","block_type":"box","text":"a contract of sale of a commodity for future delivery (or option on such a contract) subject to applicable","page_number":56,"box":{"x":116,"y":196,"width":768,"height":12}},{"id":"bc7604af-c8bc-4f1d-bd6b-6605176905c3","block_type":"box","text":"provisions of the Commodity Exchange Act. Hybrid instruments may be principal protected, partially","page_number":56,"box":{"x":117,"y":211,"width":743,"height":12}},{"id":"ae1ccde8-561d-470b-a2dc-fecad6bc09c0","block_type":"box","text":"protected, or offer no principal protection. A principal protected hybrid instrument means that the issuer","page_number":56,"box":{"x":117,"y":227,"width":768,"height":12}},{"id":"94abd593-5440-46af-9905-ac06e9b9bb9b","block_type":"box","text":"will pay, at a minimum, the par value of the note at maturity. Therefore, if the commodity value to which","page_number":56,"box":{"x":116,"y":242,"width":770,"height":12}},{"id":"c584d4ca-2d44-44d7-bbdf-50e05bdfa9dc","block_type":"box","text":"the hybrid instrument is linked declines over the life of the note, the Fund will receive at maturity the","page_number":56,"box":{"x":116,"y":258,"width":744,"height":12}},{"id":"8877a26a-c787-4287-9e8c-68bec986b4c3","block_type":"box","text":"face or stated value of the note. With a principal protected hybrid instrument, the Fund will receive at","page_number":56,"box":{"x":116,"y":273,"width":750,"height":12}},{"id":"9bbffdad-2af4-4614-94d2-2e7b1b282b17","block_type":"box","text":"maturity the greater of the par value of the note or the increase in its value based on the underlying","page_number":56,"box":{"x":117,"y":289,"width":739,"height":12}},{"id":"52757e68-c32a-47a8-b0d1-9f3f38a4748a","block_type":"box","text":"commodity or index. This protection is, in effect, an option whose value is subject to the volatility and","page_number":56,"box":{"x":116,"y":304,"width":751,"height":12}},{"id":"26c66b71-2dbf-4307-ada2-e3cf9e5c6b97","block_type":"box","text":"price level of the underlying commodity. The Manager’s decision whether to use principal protection","page_number":56,"box":{"x":117,"y":320,"width":743,"height":12}},{"id":"ca79f011-5000-4c4e-bb65-a8ea8498e3e9","block_type":"box","text":"depends in part on the cost of the protection. In addition, the protection feature depends upon the","page_number":56,"box":{"x":116,"y":335,"width":728,"height":12}},{"id":"df827420-d156-409d-afda-e6d11b39fad8","block_type":"box","text":"ability of the issuer to meet its obligation to buy back the security, and, therefore, depends on the","page_number":56,"box":{"x":116,"y":351,"width":724,"height":12}},{"id":"1839e822-9bfe-4d10-b7dd-c20c907cede3","block_type":"box","text":"creditworthiness of the issuer. With full principal protection, the Fund will receive at maturity of the","page_number":56,"box":{"x":116,"y":366,"width":731,"height":12}},{"id":"870cc97f-bdb7-40a8-812f-eb86726ba7c0","block_type":"box","text":"hybrid instrument either the stated par value of the hybrid instrument, or potentially, an amount greater","page_number":56,"box":{"x":117,"y":382,"width":764,"height":12}},{"id":"5abee4b8-8cd2-477e-9725-daab0217ca96","block_type":"box","text":"than the stated par value if the underlying commodity, index, futures contract or economic variable to","page_number":56,"box":{"x":116,"y":397,"width":753,"height":12}},{"id":"30f0d945-5294-4bcd-8ade-8ec46831095a","block_type":"box","text":"which the hybrid instrument is linked has increased in value. Partially protected hybrid instruments may","page_number":56,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"7fd69aaa-5e4b-4b7e-ac7f-283c131dd3fa","block_type":"box","text":"suffer some loss of principal if the underlying commodity, index, futures contract or economic variable","page_number":56,"box":{"x":116,"y":428,"width":758,"height":12}},{"id":"6d9748ce-3dfd-4d88-95b4-3397efe7ee7f","block_type":"box","text":"to which the hybrid instrument is linked declines in value during the term of the hybrid instrument.","page_number":56,"box":{"x":116,"y":444,"width":726,"height":12}},{"id":"66ff37dc-521b-4943-b66d-a6e3ac3b8cd5","block_type":"box","text":"However, partially protected hybrid instruments have a specified limit as to the amount of principal that","page_number":56,"box":{"x":117,"y":459,"width":764,"height":12}},{"id":"db208dd4-da16-4ecd-9028-7440e83a2a02","block_type":"box","text":"they may lose.","page_number":56,"box":{"x":116,"y":475,"width":113,"height":12}},{"id":"cbe7478a-f2e3-4315-bb10-e844b03d5ca2","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":56,"box":{"x":116,"y":506,"width":355,"height":12}},{"id":"7d22aef0-cde9-4169-a949-cd11ee74a235","block_type":"box","text":"Certain Funds may invest in hybrid instruments that","page_number":56,"box":{"x":473,"y":506,"width":393,"height":12}},{"id":"e03839bc-0db4-4585-9cb2-d5a3b9df20ed","block_type":"box","text":"offer no principal protection. At maturity, there is a risk that the underlying commodity price, futures","page_number":56,"box":{"x":116,"y":521,"width":738,"height":12}},{"id":"71a79ee5-ee8e-4b47-9cf5-7e9086a9c05f","block_type":"box","text":"contract, index or other economic variable may have declined sufficiently in value such that some or all","page_number":56,"box":{"x":116,"y":537,"width":768,"height":12}},{"id":"868ede51-3ad6-4636-9f58-3a70d61806cf","block_type":"box","text":"of the face value of the hybrid instrument might not be returned. The Manager, at its discretion, may","page_number":56,"box":{"x":116,"y":552,"width":746,"height":12}},{"id":"67517672-8113-4bdd-bc9d-e7358861c1e9","block_type":"box","text":"invest in a partially protected principal structured note or a note without principal protection. In deciding","page_number":56,"box":{"x":117,"y":568,"width":767,"height":12}},{"id":"eb92aead-9590-4210-bf1d-34cff6f3f238","block_type":"box","text":"to purchase a note without principal protection, the Manager may consider, among other things, the","page_number":56,"box":{"x":116,"y":583,"width":743,"height":12}},{"id":"b40fa597-8558-4948-9882-b3f3e3334969","block_type":"box","text":"expected performance of the underlying commodity futures contract, index or other economic variable","page_number":56,"box":{"x":116,"y":599,"width":761,"height":12}},{"id":"1ff859af-7da1-4e55-8012-d2d44374430b","block_type":"box","text":"over the term of the note, the cost of the note, and any other economic factors that the Manager","page_number":56,"box":{"x":116,"y":614,"width":717,"height":12}},{"id":"7e133de2-0ca9-48fd-a821-9f42518b0324","block_type":"box","text":"believes are relevant.","page_number":56,"box":{"x":117,"y":630,"width":163,"height":9}},{"id":"7bc617f7-c3f4-473b-ad98-58a7e3e60987","block_type":"box","text":"Limitations on Leverage.","page_number":56,"box":{"x":116,"y":661,"width":181,"height":12}},{"id":"eeaea231-686e-48d3-91e0-a5ab0cd99a7d","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve","page_number":56,"box":{"x":304,"y":661,"width":534,"height":12}},{"id":"661f6211-c1b9-43ba-91d2-7ffd398c3706","block_type":"box","text":"leverage. To avoid being subject to undue leverage risk, a Fund will seek to limit the amount of","page_number":56,"box":{"x":117,"y":676,"width":703,"height":12}},{"id":"a647f090-b32e-40fe-9152-32ee31845332","block_type":"box","text":"economic leverage it has under any one hybrid instrument that it buys and the leverage of the Fund’s","page_number":56,"box":{"x":116,"y":692,"width":750,"height":12}},{"id":"868e0ec9-a345-4f5c-88bf-1ad37accbe50","block_type":"box","text":"overall portfolio. A Fund will not invest in a hybrid instrument if, at the time of purchase: (i) that","page_number":56,"box":{"x":116,"y":707,"width":699,"height":12}},{"id":"c2f2b857-53b1-4b0b-a388-21424b394c8d","block_type":"box","text":"instrument’s “leverage ratio” exceeds 300% of the price increase in the underlying commodity, futures","page_number":56,"box":{"x":117,"y":723,"width":753,"height":12}},{"id":"dd4f45f5-77d4-46d5-ab21-c97b6ff1708b","block_type":"box","text":"contract, index or other economic variable or (ii) the Fund’s “portfolio leverage ratio” exceeds 150%,","page_number":56,"box":{"x":116,"y":738,"width":739,"height":12}},{"id":"95b7f43a-f2b0-4118-9253-409c3bb3c439","block_type":"box","text":"measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a hybrid","page_number":56,"box":{"x":117,"y":754,"width":737,"height":12}},{"id":"2a13e173-becc-4f03-91e0-5620ec92372c","block_type":"box","text":"instrument, assuming a one percent price increase in the underlying commodity, futures contract, index","page_number":56,"box":{"x":117,"y":769,"width":765,"height":12}},{"id":"b7f09b97-deb8-4a3a-bbba-cae7400e2171","block_type":"box","text":"or other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1%","page_number":56,"box":{"x":116,"y":785,"width":752,"height":12}},{"id":"12b2745d-d9e1-4e09-91e4-1616a1451509","block_type":"box","text":"gain in the underlying economic variable would be expected to result in a 1.5% gain in value for the","page_number":56,"box":{"x":116,"y":800,"width":735,"height":12}},{"id":"16a9c178-8062-47c0-87ae-e45b26ff8cbc","block_type":"box","text":"hybrid instrument. Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5%","page_number":56,"box":{"x":117,"y":816,"width":757,"height":12}},{"id":"0e47cb9e-b9f8-42a6-af18-9289491b7855","block_type":"box","text":"loss if the underlying economic variable lost 1% of its value. “Portfolio leverage ratio” is defined as the","page_number":56,"box":{"x":117,"y":831,"width":758,"height":12}},{"id":"26df1544-7bb5-4b78-b9d1-d0f4b3d4e920","block_type":"box","text":"average (mean) leverage ratio of all instruments in a Fund’s portfolio, weighted by the market values of","page_number":56,"box":{"x":116,"y":847,"width":769,"height":12}},{"id":"9a2f9051-604c-47ab-b7f0-3915287447bd","block_type":"box","text":"such instruments or, in the case of futures contracts, their notional values. A Fund may at times or from","page_number":56,"box":{"x":116,"y":862,"width":771,"height":12}},{"id":"78ee4ba6-5aa6-4f47-9477-bb120183e56d","block_type":"box","text":"II-6","page_number":56,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"58879368-471f-4328-b834-8e5657083284","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":56,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"ffb21bf5-388f-45ff-85ec-b9db599c01fe","block_type":"box","text":"time to time decide not to use leverage in its investments or use less leverage than may otherwise be","page_number":57,"box":{"x":116,"y":87,"width":757,"height":12}},{"id":"6c13f9a6-99da-4939-9d6d-602922b53c34","block_type":"box","text":"allowable.","page_number":57,"box":{"x":116,"y":103,"width":79,"height":9}},{"id":"69ef7e22-ae40-4fcf-982c-02b09037e0b2","block_type":"box","text":"Counterparty Risk.","page_number":57,"box":{"x":117,"y":134,"width":136,"height":12}},{"id":"bf15ec92-0c7b-4bac-b723-248668d807ea","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded","page_number":57,"box":{"x":255,"y":134,"width":625,"height":12}},{"id":"f1b8d6fe-a7bd-4c30-8c7c-4de3e4c91f36","block_type":"box","text":"futures and options, which are standard contracts, hybrid instruments are customized securities, tailor","page_number":57,"box":{"x":116,"y":149,"width":760,"height":12}},{"id":"5362778f-a279-4cef-bb61-791ae95ef441","block_type":"box","text":"made by a specific issuer. With a listed futures or options contract, an investor’s counterparty is the","page_number":57,"box":{"x":117,"y":165,"width":740,"height":12}},{"id":"6754157a-c16a-42ab-bf25-060bc22bb5ff","block_type":"box","text":"exchange clearinghouse. Exchange clearinghouses are capitalized by the exchange members and","page_number":57,"box":{"x":116,"y":180,"width":738,"height":12}},{"id":"c61d88f2-4871-4134-8338-ea4a4b9389de","block_type":"box","text":"typically have high investment grade ratings (","page_number":57,"box":{"x":116,"y":196,"width":336,"height":12}},{"id":"29bb9e19-f70e-4a07-886c-afd6c3d5ec7c","block_type":"box","text":"e.g.","page_number":57,"box":{"x":453,"y":198,"width":26,"height":10}},{"id":"3bd1ea64-56fe-4df1-8fe0-86d36d89294a","block_type":"box","text":", ratings of AAA or AA by S&P). Therefore, the risk is","page_number":57,"box":{"x":482,"y":196,"width":396,"height":12}},{"id":"d109b100-9477-4db8-861a-249babf18d90","block_type":"box","text":"small that an exchange clearinghouse might be unable to meet its obligations at maturity. However,","page_number":57,"box":{"x":116,"y":211,"width":743,"height":12}},{"id":"60397d20-14bb-4e53-abee-8dd195cc4bb5","block_type":"box","text":"with a hybrid instrument, a Fund will take on the counterparty credit risk of the issuer. That is, at","page_number":57,"box":{"x":116,"y":227,"width":715,"height":12}},{"id":"1e94c1f5-fc82-4a52-96af-9994491a9552","block_type":"box","text":"maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its obligations","page_number":57,"box":{"x":117,"y":242,"width":767,"height":12}},{"id":"b827bad0-4b28-4d34-b7ef-4bd102dadcac","block_type":"box","text":"under the structured note.","page_number":57,"box":{"x":117,"y":258,"width":196,"height":9}},{"id":"b0a4e83b-3166-4977-b5df-e52302fb172c","block_type":"box","text":"Convertible Securities.","page_number":57,"box":{"x":117,"y":289,"width":180,"height":9}},{"id":"e5ee9db9-2117-4bd7-a075-8337a4b779a4","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other","page_number":57,"box":{"x":298,"y":289,"width":554,"height":12}},{"id":"41c64c46-bf2c-4efc-a46a-b81a79b5c10e","block_type":"box","text":"security that may be converted into or exchanged for a prescribed amount of common stock or other","page_number":57,"box":{"x":116,"y":304,"width":750,"height":12}},{"id":"f570ddc7-5528-4cb3-b391-18cec7f91858","block_type":"box","text":"equity security of the same or a different issuer within a particular period of time at a specified price or","page_number":57,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"6fbd1d7d-703f-4740-bb83-afe10d117ba1","block_type":"box","text":"formula. A convertible security entitles the holder to receive interest paid or accrued on debt or the","page_number":57,"box":{"x":116,"y":335,"width":734,"height":12}},{"id":"e3baaae5-9880-4cef-8dfd-a682d38bcb78","block_type":"box","text":"dividend paid on preferred stock until the convertible security matures or is redeemed, converted or","page_number":57,"box":{"x":116,"y":351,"width":742,"height":12}},{"id":"feec05cf-360e-48fb-864e-ef0e3bc47f87","block_type":"box","text":"exchanged. Before conversion, convertible securities have characteristics similar to nonconvertible","page_number":57,"box":{"x":116,"y":366,"width":738,"height":12}},{"id":"f30878d7-e16d-423c-b722-d15cebf12493","block_type":"box","text":"income securities in that they ordinarily provide a stable stream of income with generally higher yields","page_number":57,"box":{"x":117,"y":382,"width":757,"height":12}},{"id":"38cd69e6-7719-4aa6-83f0-b6177f0a343e","block_type":"box","text":"than those of common stocks of the same or similar issuers, but lower yields than comparable","page_number":57,"box":{"x":116,"y":397,"width":703,"height":12}},{"id":"28661ecb-37d5-4884-9538-e80d084b5169","block_type":"box","text":"nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":57,"box":{"x":117,"y":413,"width":767,"height":12}},{"id":"f7df2b8d-37a5-4da9-9c76-850bc1e79d5e","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The","page_number":57,"box":{"x":116,"y":428,"width":764,"height":12}},{"id":"60e38012-e853-41f2-a96e-09b35f463db4","block_type":"box","text":"credit standing of the issuer and other factors also may have an effect on the convertible security’s","page_number":57,"box":{"x":116,"y":444,"width":736,"height":12}},{"id":"17eaa677-7e4a-4bdd-bc7b-a6fc7666ec92","block_type":"box","text":"investment value. Convertible securities rank senior to common stock in a corporation’s capital","page_number":57,"box":{"x":117,"y":459,"width":706,"height":12}},{"id":"54a0c30a-b417-47b2-add4-57e88fa9fb5f","block_type":"box","text":"structure but are usually subordinated to comparable nonconvertible securities. Convertible securities","page_number":57,"box":{"x":116,"y":475,"width":757,"height":12}},{"id":"653d76a8-dbc4-4508-b15a-461a25340acf","block_type":"box","text":"may be subject to redemption at the option of the issuer at a price established in the convertible","page_number":57,"box":{"x":117,"y":490,"width":714,"height":12}},{"id":"ea073ff1-1656-4313-81f6-e44254e7a9b4","block_type":"box","text":"security’s governing instrument.","page_number":57,"box":{"x":116,"y":506,"width":241,"height":12}},{"id":"3a0e3a09-61f9-495c-bfb0-328371b07ebf","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an","page_number":57,"box":{"x":116,"y":537,"width":710,"height":12}},{"id":"28f42c7e-bd88-4e06-bad9-d113df865876","block_type":"box","text":"investment company seeking a high total return from capital appreciation and investment income.","page_number":57,"box":{"x":117,"y":552,"width":727,"height":12}},{"id":"9e5c267c-eea3-41f3-a46b-79ded50c98d8","block_type":"box","text":"These characteristics include the potential for capital appreciation as the value of the underlying","page_number":57,"box":{"x":116,"y":568,"width":716,"height":12}},{"id":"ff22e12b-385a-412f-8f37-5a39707d2d0e","block_type":"box","text":"common stock increases, the relatively high yield received from dividend or interest payments as","page_number":57,"box":{"x":116,"y":583,"width":723,"height":12}},{"id":"37ec8313-040a-42ef-87df-94941e925a1e","block_type":"box","text":"compared to common stock dividends and decreased risks of decline in value relative to the underlying","page_number":57,"box":{"x":116,"y":599,"width":770,"height":12}},{"id":"12456952-13c5-4df8-a3f9-5a68930b4c14","block_type":"box","text":"common stock due to their fixed-income nature. As a result of the conversion feature, however, the","page_number":57,"box":{"x":116,"y":614,"width":739,"height":11}},{"id":"668ae2ea-bf9c-40c3-9ebe-3268b883d97b","block_type":"box","text":"interest rate or dividend preference on a convertible security is generally less than would be the case if","page_number":57,"box":{"x":117,"y":630,"width":766,"height":12}},{"id":"741e4a84-d825-4faa-8bf4-d19239235afb","block_type":"box","text":"the securities were issued in nonconvertible form.","page_number":57,"box":{"x":116,"y":645,"width":373,"height":10}},{"id":"fe6adc23-b0f1-43e5-9d15-5e15a86ec389","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security","page_number":57,"box":{"x":117,"y":676,"width":755,"height":12}},{"id":"7f5abde4-ca58-4670-b827-a3a46b5f2f60","block_type":"box","text":"relative to its credit quality and the potential capital appreciation that is offered by the underlying","page_number":57,"box":{"x":117,"y":692,"width":710,"height":12}},{"id":"c412b5d4-7ad3-4f98-9f44-69c0ad8823f4","block_type":"box","text":"common stock, among other things.","page_number":57,"box":{"x":116,"y":707,"width":265,"height":12}},{"id":"9cc11a0e-af14-4c73-9d3f-881dc9099839","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":57,"box":{"x":117,"y":738,"width":758,"height":10}},{"id":"cf85be71-b0ba-4cb0-aa71-206d5f5eb980","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the","page_number":57,"box":{"x":116,"y":754,"width":734,"height":12}},{"id":"5c1f8aeb-a0fd-4c5a-98d1-b7a6d2adc379","block_type":"box","text":"underlying equity securities may be quoted in the currency of the country where the issuer is domiciled.","page_number":57,"box":{"x":117,"y":769,"width":764,"height":12}},{"id":"56694c84-04d4-4fd2-b72e-b18602a9e2db","block_type":"box","text":"As a result, fluctuations in the exchange rate between the currency in which the debt security is","page_number":57,"box":{"x":116,"y":785,"width":707,"height":12}},{"id":"20837e25-f2ee-4f17-a23b-744840fab711","block_type":"box","text":"denominated and the currency in which the share price is quoted will affect the value of the convertible","page_number":57,"box":{"x":116,"y":800,"width":761,"height":12}},{"id":"118b4c54-63f2-4b54-8120-5180010897be","block_type":"box","text":"security. With respect to convertible securities denominated in a currency different from that of the","page_number":57,"box":{"x":116,"y":816,"width":728,"height":12}},{"id":"d7175480-94e1-45bf-abba-8d2702ebfea5","block_type":"box","text":"underlying equity securities, the conversion price may be based on a fixed exchange rate established","page_number":57,"box":{"x":117,"y":831,"width":756,"height":12}},{"id":"0dd8c13e-838b-431d-b284-682388e29aec","block_type":"box","text":"at the time the security is issued, which may increase the effects of currency risk. As described below,","page_number":57,"box":{"x":116,"y":847,"width":763,"height":12}},{"id":"9ec05e7a-d9fe-4fb7-a78e-70f862c69011","block_type":"box","text":"a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to reduce","page_number":57,"box":{"x":116,"y":862,"width":766,"height":12}},{"id":"4c5c1ea0-0a72-4f5c-89cf-b00f3579c305","block_type":"box","text":"the effect of exchange rate fluctuations.","page_number":57,"box":{"x":116,"y":878,"width":298,"height":12}},{"id":"3ac02475-8603-4ef4-8478-61e4dd4e24ed","block_type":"box","text":"II-7","page_number":57,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"1c8aa7a0-a342-460d-8fdb-b21edd001f9e","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":57,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"17efe95e-96b2-4932-9588-91dc272d3080","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield","page_number":58,"box":{"x":116,"y":87,"width":749,"height":12}},{"id":"f6908e4a-b948-4cbd-93b5-b380ec2dee50","block_type":"box","text":"on nonconvertible securities of comparable issuers and by the value of the underlying common stock.","page_number":58,"box":{"x":116,"y":102,"width":757,"height":13}},{"id":"693e0d1a-f040-4a36-a565-ed80a168ea77","block_type":"box","text":"The value of a convertible security viewed without regard to its conversion feature (","page_number":58,"box":{"x":116,"y":118,"width":617,"height":12}},{"id":"4d19c5ae-a9b1-4829-8344-a20c0a5086b9","block_type":"box","text":"i.e.","page_number":58,"box":{"x":734,"y":118,"width":20,"height":10}},{"id":"47e81c9c-f2f1-41fa-ace9-be2fbb46dae5","block_type":"box","text":", strictly on the","page_number":58,"box":{"x":757,"y":118,"width":112,"height":12}},{"id":"27a278b3-f6a1-4bdf-808e-e3ccfafe1bdd","block_type":"box","text":"basis of its yield) is sometimes referred to as its “investment value.” To the extent interest rates","page_number":58,"box":{"x":117,"y":134,"width":709,"height":12}},{"id":"3252f922-77ef-4ed7-9327-d7cd8a2a2edd","block_type":"box","text":"change, the investment value of the convertible security typically will fluctuate. At the same time,","page_number":58,"box":{"x":116,"y":149,"width":720,"height":12}},{"id":"dbc7e5cc-b800-40fa-a99b-378ae5cb7381","block_type":"box","text":"however, the value of the convertible security will be influenced by its “conversion value,” which is the","page_number":58,"box":{"x":117,"y":165,"width":756,"height":12}},{"id":"3abca09d-8954-4702-a648-3daa587da199","block_type":"box","text":"market value of the underlying common stock that would be obtained if the convertible security were","page_number":58,"box":{"x":117,"y":180,"width":747,"height":12}},{"id":"ad4e4306-4ef4-4631-b7f1-fa759e0d3591","block_type":"box","text":"converted. Conversion value fluctuates directly with the price of the underlying common stock. If the","page_number":58,"box":{"x":116,"y":196,"width":746,"height":12}},{"id":"807e1957-e578-46a8-a66e-18da5345d8c3","block_type":"box","text":"conversion value of a convertible security is substantially below its investment value, the price of the","page_number":58,"box":{"x":116,"y":211,"width":748,"height":12}},{"id":"1d4bf77e-c719-44e6-a477-93973c084c31","block_type":"box","text":"convertible security is governed principally by its investment value. To the extent the conversion value","page_number":58,"box":{"x":116,"y":227,"width":761,"height":12}},{"id":"4d4ab0f0-47de-4c09-b968-81b5d272c409","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the","page_number":58,"box":{"x":116,"y":242,"width":743,"height":12}},{"id":"d18420e7-ccc9-4aa9-9bbb-387b92cffcf3","block_type":"box","text":"price of the convertible security will be influenced principally by its conversion value. A convertible","page_number":58,"box":{"x":117,"y":258,"width":729,"height":12}},{"id":"20fc2c89-1e1e-4360-adc2-521fb5fe3b62","block_type":"box","text":"security will sell at a premium over the conversion value to the extent investors place value on the right","page_number":58,"box":{"x":116,"y":273,"width":768,"height":12}},{"id":"1eb57f5b-a1cd-426a-b2e7-dc505f11e319","block_type":"box","text":"to acquire the underlying common stock while holding a fixed-income security. The yield and","page_number":58,"box":{"x":116,"y":289,"width":691,"height":12}},{"id":"e4390916-daa5-4186-80d2-53a4b483f21b","block_type":"box","text":"conversion premium of convertible securities issued in Japan and the Euromarket are frequently","page_number":58,"box":{"x":116,"y":304,"width":718,"height":12}},{"id":"8f576ec1-43ef-457d-85fc-0a523ee70c78","block_type":"box","text":"determined at levels that cause the conversion value to affect their market value more than the","page_number":58,"box":{"x":116,"y":320,"width":708,"height":9}},{"id":"34704e56-c432-4f23-8098-be8887ecb735","block_type":"box","text":"securities’ investment value.","page_number":58,"box":{"x":116,"y":335,"width":215,"height":10}},{"id":"a8f0c5cd-e49a-4958-bb86-ae342a628994","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":58,"box":{"x":117,"y":362,"width":770,"height":12}},{"id":"ca2f3772-5ad9-49f6-8cfc-fc1109b0628a","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible","page_number":58,"box":{"x":116,"y":378,"width":713,"height":12}},{"id":"c761d1be-b4b0-43da-b5d6-e8d75aac3e24","block_type":"box","text":"security may be subject to redemption at the option of the issuer at a price established in a charter","page_number":58,"box":{"x":116,"y":393,"width":734,"height":12}},{"id":"f1ea951c-e0ea-4ae6-8361-d47cd51ca863","block_type":"box","text":"provision, indenture or other governing instrument pursuant to which the convertible security was","page_number":58,"box":{"x":117,"y":409,"width":723,"height":12}},{"id":"5b0b5be7-7a85-4771-b635-c3eda1674748","block_type":"box","text":"issued. If a convertible security held by a Fund is called for redemption, the Fund will be required to","page_number":58,"box":{"x":117,"y":424,"width":741,"height":12}},{"id":"a2998c8c-086d-4352-ab83-c06ee0d86544","block_type":"box","text":"redeem the security, convert it into the underlying common stock or sell it to a third party. Certain","page_number":58,"box":{"x":117,"y":440,"width":723,"height":12}},{"id":"2a48a3d8-bc54-407a-9424-4ed8c66637f3","block_type":"box","text":"convertible debt securities may provide a put option to the holder, which entitles the holder to cause","page_number":58,"box":{"x":116,"y":455,"width":745,"height":12}},{"id":"20e9dd9f-2a2f-4012-bff3-0ff3264acfff","block_type":"box","text":"the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":58,"box":{"x":116,"y":471,"width":745,"height":12}},{"id":"67da19fe-a31a-4596-a025-94f0b0b51e22","block_type":"box","text":"security under certain circumstances.","page_number":58,"box":{"x":116,"y":486,"width":282,"height":12}},{"id":"99238284-0f27-4655-bf1b-75f918e699fd","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include","page_number":58,"box":{"x":116,"y":513,"width":765,"height":12}},{"id":"73b42eb4-f111-4c14-ad9e-331ef58720e6","block_type":"box","text":"either Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are","page_number":58,"box":{"x":116,"y":529,"width":717,"height":9}},{"id":"a7cc1901-2aad-4313-ae93-58beeabe2829","block_type":"box","text":"instruments that are created by the issuer and have the economic characteristics of traditional","page_number":58,"box":{"x":117,"y":544,"width":701,"height":12}},{"id":"ea4f321c-c37d-427b-b5c2-5806bcb7b6b3","block_type":"box","text":"convertible securities but may not actually permit conversion into the underlying equity securities in all","page_number":58,"box":{"x":116,"y":560,"width":760,"height":12}},{"id":"d96a0458-8dd8-4094-9cb3-7d12886ffd1e","block_type":"box","text":"circumstances. As an example, a private company may issue a Cash-Settled Convertible that is","page_number":58,"box":{"x":116,"y":575,"width":715,"height":12}},{"id":"58948db6-da72-4530-a104-3e40f2393011","block_type":"box","text":"convertible into common stock only if the company successfully completes a public offering of its","page_number":58,"box":{"x":116,"y":591,"width":721,"height":12}},{"id":"e8f3d401-079a-4151-8f37-ddab6a4cfb2e","block_type":"box","text":"common stock prior to maturity and otherwise pays a cash amount to reflect any equity appreciation.","page_number":58,"box":{"x":116,"y":606,"width":751,"height":12}},{"id":"561368fe-1b04-4444-b2bc-dcdef032dfe4","block_type":"box","text":"“Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":58,"box":{"x":116,"y":622,"width":726,"height":12}},{"id":"740b7358-27b6-49ea-a639-08c8bde9d02f","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":58,"box":{"x":116,"y":637,"width":651,"height":12}},{"id":"d5dfeb6f-59a3-43c8-8a8d-2c682f203d9a","block_type":"box","text":"i.e.","page_number":58,"box":{"x":767,"y":638,"width":21,"height":9}},{"id":"f3b2962f-b28f-42bf-b1d9-03a89c12e096","block_type":"box","text":", fixed","page_number":58,"box":{"x":791,"y":637,"width":49,"height":12}},{"id":"9968d036-357e-4e69-9173-4947aeb9d40b","block_type":"box","text":"income (“fixed-income component”) or a right to acquire equity securities (“convertibility component”).","page_number":58,"box":{"x":117,"y":653,"width":756,"height":12}},{"id":"65a5365b-e3fd-458e-a535-321d2eab2e0e","block_type":"box","text":"The fixed-income component is achieved by investing in nonconvertible fixed-income securities, such","page_number":58,"box":{"x":116,"y":668,"width":751,"height":12}},{"id":"ed25db8d-1f1c-4e5a-9493-5c2a6b4e3414","block_type":"box","text":"as nonconvertible bonds, preferred stocks and money market instruments. The convertibility","page_number":58,"box":{"x":116,"y":684,"width":684,"height":12}},{"id":"245c4a8a-78af-4873-8119-844fa352b7fe","block_type":"box","text":"component is achieved by investing in call options, warrants, or other securities with equity conversion","page_number":58,"box":{"x":116,"y":700,"width":758,"height":12}},{"id":"f4c4d58d-a89e-4904-bd45-22e2b40cbad3","block_type":"box","text":"features (“equity features”) granting the holder the right to purchase a specified quantity of the","page_number":58,"box":{"x":116,"y":715,"width":697,"height":12}},{"id":"d0880bec-ab15-4eb1-af61-2b33ad75e425","block_type":"box","text":"underlying stocks within a specified period of time at a specified price or, in the case of a stock index","page_number":58,"box":{"x":117,"y":730,"width":745,"height":13}},{"id":"31a2bd21-7e56-45d0-8c82-9d27acc2d76d","block_type":"box","text":"option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":58,"box":{"x":116,"y":746,"width":685,"height":12}},{"id":"6c71201b-db5f-4259-9309-49bebec4a9ca","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a","page_number":58,"box":{"x":116,"y":773,"width":751,"height":12}},{"id":"0568cd79-6cd5-443e-8f69-e8d9214f4119","block_type":"box","text":"traditional convertible security, which is a single security that has a unitary market value, a","page_number":58,"box":{"x":116,"y":789,"width":669,"height":12}},{"id":"6337f842-1c2b-4646-bbac-b13e3ef51423","block_type":"box","text":"Manufactured Convertible is comprised of two or more separate securities, each with its own market","page_number":58,"box":{"x":117,"y":804,"width":742,"height":12}},{"id":"fe489f64-746d-4c9f-9266-0e76db401711","block_type":"box","text":"value. Therefore, the total “market value” of such a Manufactured Convertible is the sum of the values","page_number":58,"box":{"x":116,"y":820,"width":755,"height":11}},{"id":"b27ebd2f-9909-4dc4-bc1e-cb99677f9d7e","block_type":"box","text":"of its fixed-income component and its convertibility component.","page_number":58,"box":{"x":116,"y":835,"width":472,"height":12}},{"id":"c7cb1c31-6de6-4c17-af43-0d622ad01245","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a","page_number":58,"box":{"x":117,"y":862,"width":724,"height":12}},{"id":"21d3182a-07b3-4dd6-992b-4e0926a9db8b","block_type":"box","text":"traditional convertible security. Because many corporations have not issued convertible securities, the","page_number":58,"box":{"x":116,"y":878,"width":761,"height":12}},{"id":"86d06e61-87cd-4609-9162-795d0907a309","block_type":"box","text":"II-8","page_number":58,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"59d3c875-7149-40e9-8fbe-ebc17e712c92","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":58,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"580e9deb-7d92-47d8-9c6d-dd9146318786","block_type":"box","text":"Manager may combine a fixed-income instrument and an equity feature with respect to the stock of the","page_number":59,"box":{"x":117,"y":87,"width":767,"height":12}},{"id":"2a352a45-149d-4767-b955-ad0567271dbe","block_type":"box","text":"issuer of the fixed-income instrument to create a synthetic convertible security otherwise unavailable in","page_number":59,"box":{"x":117,"y":102,"width":767,"height":13}},{"id":"f51c7574-744a-4868-b429-1140e830b4f4","block_type":"box","text":"the market. The Manager may also combine a fixed-income instrument of an issuer with an equity","page_number":59,"box":{"x":116,"y":118,"width":731,"height":12}},{"id":"d0199604-8a4c-49de-b85a-1d9222b57dba","block_type":"box","text":"feature with respect to the stock of a different issuer when the Manager believes such a Manufactured","page_number":59,"box":{"x":116,"y":134,"width":763,"height":12}},{"id":"8f9af15b-90d5-4724-a4a0-9f1e5913e61d","block_type":"box","text":"Convertible would better promote a Fund’s objective than alternative investments. For example, the","page_number":59,"box":{"x":117,"y":149,"width":742,"height":12}},{"id":"b880a889-e7e7-4f24-8352-08d0fd74aecc","block_type":"box","text":"Manager may combine an equity feature with respect to an issuer’s stock with a fixed-income security","page_number":59,"box":{"x":117,"y":165,"width":759,"height":12}},{"id":"cf18b6e0-da5a-4dd4-822f-78b64f08c8d7","block_type":"box","text":"of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":59,"box":{"x":116,"y":180,"width":702,"height":12}},{"id":"6cf8edde-39c0-40df-8a88-3bca7e92b1c6","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional","page_number":59,"box":{"x":116,"y":196,"width":762,"height":12}},{"id":"338502fe-f716-42b8-b169-ae5c359cd08d","block_type":"box","text":"convertible security issued by that issuer. A Manufactured Convertible also is a more flexible","page_number":59,"box":{"x":116,"y":211,"width":691,"height":12}},{"id":"7b925671-0be2-46b1-9092-e893a5a9005d","block_type":"box","text":"investment in that its two components may be purchased separately and, upon purchasing the","page_number":59,"box":{"x":117,"y":227,"width":704,"height":12}},{"id":"c03d4569-810d-404c-b25e-c08871ec6fc1","block_type":"box","text":"separate securities, “combined” to create a Manufactured Convertible. For example, the Fund may","page_number":59,"box":{"x":116,"y":242,"width":736,"height":12}},{"id":"0a52e05d-e99f-435c-87c5-2d51608be3c8","block_type":"box","text":"purchase a warrant for eventual inclusion in a Manufactured Convertible while postponing the","page_number":59,"box":{"x":117,"y":258,"width":697,"height":12}},{"id":"907cc767-aefd-47cd-924c-15f646086247","block_type":"box","text":"purchase of a suitable bond to pair with the warrant pending development of more favorable market","page_number":59,"box":{"x":117,"y":273,"width":743,"height":12}},{"id":"511c6fa7-33f3-4b1d-998f-177542f34a16","block_type":"box","text":"conditions.","page_number":59,"box":{"x":116,"y":289,"width":85,"height":9}},{"id":"6a57ac39-6325-4cd0-a65b-fcbd58bed100","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a","page_number":59,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"6929ba8d-afcc-4cf2-b699-3d97374ca2ab","block_type":"box","text":"traditional convertible security with similar characteristics. For example, in the event a Fund created a","page_number":59,"box":{"x":116,"y":335,"width":758,"height":12}},{"id":"e108d0d5-020c-49d6-acfd-5b71b0442f9b","block_type":"box","text":"Manufactured Convertible by combining a short-term U.S. Treasury instrument and a call option on a","page_number":59,"box":{"x":117,"y":351,"width":752,"height":12}},{"id":"95e01da7-eac5-47d0-886a-1a23b0c00d3c","block_type":"box","text":"stock, the Manufactured Convertible would be expected to outperform a traditional convertible of","page_number":59,"box":{"x":116,"y":366,"width":720,"height":12}},{"id":"5d4801a2-2541-41d1-82f6-789f9912cbaa","block_type":"box","text":"similar maturity that is convertible into that stock during periods when Treasury instruments outperform","page_number":59,"box":{"x":116,"y":382,"width":767,"height":12}},{"id":"4689e702-41d2-4cfa-9c66-39c46d2c7088","block_type":"box","text":"corporate fixed-income securities and underperform during periods when corporate fixed-income","page_number":59,"box":{"x":116,"y":397,"width":722,"height":12}},{"id":"5485795f-a761-4a26-8a1a-ed81623afb51","block_type":"box","text":"securities outperform Treasury instruments.","page_number":59,"box":{"x":116,"y":413,"width":329,"height":12}},{"id":"bc205d94-1334-45ea-aac4-3b911246e922","block_type":"box","text":"Corporate Loans.","page_number":59,"box":{"x":117,"y":444,"width":134,"height":12}},{"id":"df0db688-50e9-400b-88da-f2a8d151bd6f","block_type":"box","text":"Certain Funds may invest in corporat","page_number":59,"box":{"x":252,"y":444,"width":274,"height":12}},{"id":"8fad4e89-47c1-459d-86ab-b3524f71d5d7","block_type":"box","text":"e loans. Corporate loans are generally","page_number":59,"box":{"x":527,"y":444,"width":282,"height":12}},{"id":"16b5cafb-8360-4eeb-b9e7-ef041d74df00","block_type":"box","text":"non-investment grade floating rate instruments. Usually","page_number":59,"box":{"x":117,"y":459,"width":401,"height":12}},{"id":"7b4d884c-eadf-456f-bb6b-ab08baeacf6a","block_type":"box","text":", they are freely callable at the issuer’s option.","page_number":59,"box":{"x":520,"y":459,"width":336,"height":12}},{"id":"4b56c88e-0a50-4780-bfae-a38bf4174fb2","block_type":"box","text":"Certain Funds may invest in fixed and floating rate loans (“Loans”) arranged through private negotiations","page_number":59,"box":{"x":117,"y":475,"width":762,"height":12}},{"id":"2de0f0c7-2cd0-4069-a9d2-083ae04ae393","block_type":"box","text":"between a corporate borrower or a foreign soverei","page_number":59,"box":{"x":117,"y":490,"width":363,"height":12}},{"id":"bc311760-0600-43b0-b80c-27d7052412f1","block_type":"box","text":"gn entity and one or more financial institutions or","page_number":59,"box":{"x":481,"y":490,"width":358,"height":12}},{"id":"e99165e7-deac-4319-bcbf-281b5ff80395","block_type":"box","text":"institutional investors (“Lenders”). A Fund may invest in","page_number":59,"box":{"x":117,"y":506,"width":399,"height":12}},{"id":"f085a849-bdba-4256-bb14-a2780baef801","block_type":"box","text":"such Loans in the form of participations in Loans","page_number":59,"box":{"x":517,"y":506,"width":362,"height":12}},{"id":"470b7ac3-3574-4c48-a87f-dbe32672c7c9","block_type":"box","text":"(“Participations”) and assignments of all or a porti","page_number":59,"box":{"x":117,"y":521,"width":356,"height":12}},{"id":"cd245d73-987d-496d-97c4-ce4f3b93d089","block_type":"box","text":"on of Loans from third parties (“Assignments”). A Fund","page_number":59,"box":{"x":474,"y":521,"width":402,"height":12}},{"id":"2b6e400b-e6de-48c5-8c50-d0fca7a5ceb3","block_type":"box","text":"considers these investments to be investments in debt","page_number":59,"box":{"x":116,"y":537,"width":400,"height":9}},{"id":"082c6e91-7fd9-430a-b7d1-9137f67f36a0","block_type":"box","text":"securities for purposes of its investment policies.","page_number":59,"box":{"x":516,"y":537,"width":357,"height":12}},{"id":"418de1c6-2249-4169-a40a-a3e546ed1672","block_type":"box","text":"Participations typically will result in the Fund havi","page_number":59,"box":{"x":117,"y":552,"width":353,"height":12}},{"id":"f555aabc-ab8a-4c56-9af9-c2875d0ece2a","block_type":"box","text":"ng a contractual relationship only with the Lender, not","page_number":59,"box":{"x":472,"y":552,"width":392,"height":12}},{"id":"8001de11-52db-4488-b1b9-8f168b1a5a12","block_type":"box","text":"with the borrower. The Fund will have the right to receive","page_number":59,"box":{"x":116,"y":568,"width":417,"height":12}},{"id":"5c38129b-1c7c-48ba-b817-36c3b1db7ee3","block_type":"box","text":"payments of principal, interest and any fees to","page_number":59,"box":{"x":534,"y":568,"width":340,"height":12}},{"id":"985afa6e-b1f0-4b96-b9b7-bec2389d86f6","block_type":"box","text":"which it is entitled only from the Lender selling t","page_number":59,"box":{"x":116,"y":583,"width":344,"height":12}},{"id":"f3591493-3f24-498b-ab43-edf204319ec1","block_type":"box","text":"he Participation and only upon receipt by the Lender of","page_number":59,"box":{"x":461,"y":583,"width":402,"height":12}},{"id":"d6b2ef29-f9a5-4a19-bbe9-b7151c9c1e38","block_type":"box","text":"the payments from the borrower. In connection wit","page_number":59,"box":{"x":116,"y":599,"width":365,"height":12}},{"id":"06de96e6-cb6f-4e98-9433-f386ae35dc65","block_type":"box","text":"h purchasing Participations, the Fund generally will","page_number":59,"box":{"x":482,"y":599,"width":374,"height":12}},{"id":"d0700c0f-c2a4-4a8d-878f-251327c46bfe","block_type":"box","text":"have no right to enforce compliance by the borrower w","page_number":59,"box":{"x":117,"y":614,"width":383,"height":12}},{"id":"4191577b-0407-4bcd-9d3c-a92931f8cb03","block_type":"box","text":"with the terms of the loan agreement relating to the","page_number":59,"box":{"x":500,"y":614,"width":376,"height":12}},{"id":"d31023bd-5ceb-470d-b4f3-ae801fe8da4f","block_type":"box","text":"Loans, nor any rights of set-off against the borrower, and the Fund may not benefit directly from any","page_number":59,"box":{"x":117,"y":630,"width":729,"height":12}},{"id":"aacf2e29-a9c9-4d6c-b6da-9c2315cf8ec6","block_type":"box","text":"collateral supporting the Loan in which it has purc","page_number":59,"box":{"x":116,"y":645,"width":360,"height":12}},{"id":"e0f1da02-432c-4f4f-8980-d409f858cbfc","block_type":"box","text":"hased the Participation. As a result, the Fund will","page_number":59,"box":{"x":477,"y":645,"width":359,"height":12}},{"id":"85515866-8927-4cc2-acc4-984c00055ada","block_type":"box","text":"assume the credit risk of both the borrower and","page_number":59,"box":{"x":116,"y":661,"width":343,"height":9}},{"id":"9f8d55a8-392a-4df4-b977-0597fb644891","block_type":"box","text":"the Lender that is selling the Participation.","page_number":59,"box":{"x":465,"y":661,"width":303,"height":12}},{"id":"d5c34460-3aac-424e-a083-da08ace94c2d","block_type":"box","text":"In the event of the insolvency of the Lender selling the Participation, the Fund may be treated as a","page_number":59,"box":{"x":117,"y":692,"width":727,"height":12}},{"id":"80852d51-5cc6-4238-b1d5-40de95cba0aa","block_type":"box","text":"general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":59,"box":{"x":116,"y":707,"width":709,"height":12}},{"id":"da6a644f-8271-4b75-8ea6-3f0aadddcc59","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and","page_number":59,"box":{"x":117,"y":723,"width":759,"height":12}},{"id":"b925e0cf-0b9f-4022-8639-05d4ce116e81","block_type":"box","text":"the borrower is determined by the Fund’s manager to be creditworthy. When the Fund purchases","page_number":59,"box":{"x":116,"y":738,"width":721,"height":12}},{"id":"83855cd2-93a5-4009-a3e1-7af0fbf5d674","block_type":"box","text":"Assignments from Lenders, the Fund will acquire direct rights against the borrower on the Loan, and","page_number":59,"box":{"x":116,"y":754,"width":743,"height":12}},{"id":"6c5b5d15-627f-4510-9ca0-32860880c03d","block_type":"box","text":"will not have exposure to a counterparty’s credit risk. The Funds may enter into Participations and","page_number":59,"box":{"x":116,"y":769,"width":725,"height":12}},{"id":"75704cee-cf20-497b-9440-8c9c8105002c","block_type":"box","text":"Assignments on a forward commitment or “when-issued” basis, whereby a Fund would agree to","page_number":59,"box":{"x":116,"y":785,"width":709,"height":12}},{"id":"1ec4afe8-be4b-43dd-947c-eb32c92fc6e3","block_type":"box","text":"purchase a Participation or Assignment at set terms in the future. For more information on forward","page_number":59,"box":{"x":117,"y":800,"width":727,"height":12}},{"id":"fc133e29-2570-438b-9303-00afc2d2611b","block_type":"box","text":"commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery Securities","page_number":59,"box":{"x":116,"y":816,"width":746,"height":12}},{"id":"41c280bc-7a4a-4182-ba3e-5964fd15aab9","block_type":"box","text":"and Forward Commitments” below. A Fund may have difficulty disposing of Assignments and","page_number":59,"box":{"x":116,"y":831,"width":697,"height":12}},{"id":"31f6af75-65c2-4a66-a18f-af41bf06fe76","block_type":"box","text":"Participations. In certain cases, the market for such instruments may lack sufficient liquidity, and","page_number":59,"box":{"x":117,"y":847,"width":718,"height":12}},{"id":"6b583adc-30c6-4538-88b0-f579a8795a44","block_type":"box","text":"therefore the Fund anticipates that in such cases such instruments could be sold only to a limited","page_number":59,"box":{"x":116,"y":862,"width":725,"height":12}},{"id":"9c62f046-9253-406f-b9cf-790ec129978b","block_type":"box","text":"number of institutional investors. The lack of a sufficiently liquid secondary market may have an","page_number":59,"box":{"x":117,"y":878,"width":713,"height":12}},{"id":"b5f2acd3-ceb4-4079-9c74-243d4937386a","block_type":"box","text":"II-9","page_number":59,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"b6c46057-f462-468a-89c3-ed52d21e13e7","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":59,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"cccca5ab-c5bf-4a76-91cc-927570be5d3b","block_type":"box","text":"adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":60,"box":{"x":116,"y":87,"width":727,"height":12}},{"id":"06a73e18-e7ef-4ce4-9e68-123d5e264bb1","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the","page_number":60,"box":{"x":116,"y":102,"width":745,"height":13}},{"id":"2bff8c60-5a44-4a4f-a606-bc7698de5eab","block_type":"box","text":"creditworthiness of the borrower. Leading financial institutions often act as agent for a broader group of","page_number":60,"box":{"x":116,"y":118,"width":770,"height":12}},{"id":"1e27b8f5-cf3c-48c7-9260-d312040f30dc","block_type":"box","text":"Lenders, generally referred to as a syndicate. The syndicate’s agent arranges the loans, holds","page_number":60,"box":{"x":117,"y":134,"width":703,"height":12}},{"id":"02db72a2-49ff-42ce-833b-ba542024829b","block_type":"box","text":"collateral and accepts payments of principal and interest. Failure by the syndicate agent to fulfill its","page_number":60,"box":{"x":116,"y":149,"width":736,"height":12}},{"id":"6a17e319-62e2-4735-a64c-4af3c473e95c","block_type":"box","text":"obligations may delay or adversely affect receipt of payment by the Fund.","page_number":60,"box":{"x":116,"y":165,"width":550,"height":12}},{"id":"73f332eb-4863-420b-8af7-add940e0c4d0","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income.","page_number":60,"box":{"x":116,"y":193,"width":706,"height":12}},{"id":"5bf46e96-0328-47e2-b9fa-57cec63a3222","block_type":"box","text":"Although borrowers frequently provide collateral to secure repayment of these obligations they do not","page_number":60,"box":{"x":116,"y":209,"width":757,"height":12}},{"id":"8779762e-c6a4-4192-bb8e-1e63fdff7800","block_type":"box","text":"always do so. If they do provide collateral, the value of the collateral may not completely cover the","page_number":60,"box":{"x":116,"y":224,"width":732,"height":12}},{"id":"558b28b5-22e1-4ef5-b977-ad7645492856","block_type":"box","text":"borrower’s obligations at the time of a default. If a borrower files for protection from its creditors under","page_number":60,"box":{"x":117,"y":240,"width":757,"height":12}},{"id":"4d011669-cf17-4b7d-9f84-20ecd7ed5548","block_type":"box","text":"the U.S. bankruptcy laws, these laws may limit a Fund’s rights to its collateral. In addition, the value of","page_number":60,"box":{"x":116,"y":255,"width":761,"height":12}},{"id":"5384cfbb-d543-4330-883b-d687f79c4469","block_type":"box","text":"collateral may erode during a bankruptcy case. In the event of a bankruptcy, the holder of a Loan may","page_number":60,"box":{"x":116,"y":271,"width":762,"height":12}},{"id":"e461e8ca-a1c3-4760-a0ea-628ea7b2987c","block_type":"box","text":"not recover its principal, may experience a long delay in recovering its investment and may not receive","page_number":60,"box":{"x":117,"y":286,"width":765,"height":12}},{"id":"865ea220-6e39-4a22-847e-9e7847e83f18","block_type":"box","text":"interest during the delay.","page_number":60,"box":{"x":117,"y":302,"width":188,"height":12}},{"id":"93b775d1-948c-4b87-b514-c728d4f8c797","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale","page_number":60,"box":{"x":116,"y":331,"width":763,"height":12}},{"id":"803572e2-5b66-4df7-873f-29f039dfa937","block_type":"box","text":"of corporate loans may not be readily available to make additional investments or to meet a Fund’s","page_number":60,"box":{"x":116,"y":346,"width":738,"height":12}},{"id":"18c057a5-e9ce-4f37-94cf-28bf6c3abfd9","block_type":"box","text":"redemption obligations. To the extent the extended settlement process gives rise to short-term liquidity","page_number":60,"box":{"x":117,"y":362,"width":765,"height":12}},{"id":"ffa43d05-cfcf-4f11-9455-b4a8160018fc","block_type":"box","text":"needs, a Fund may hold additional cash, sell investments or temporarily borrow from banks and other","page_number":60,"box":{"x":117,"y":377,"width":758,"height":12}},{"id":"e348581a-fc58-421c-9fe1-ee5c8daed6fc","block_type":"box","text":"lenders.","page_number":60,"box":{"x":117,"y":393,"width":63,"height":9}},{"id":"eee4dd6c-f14e-4d9d-9269-cdc05ecb0118","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities","page_number":60,"box":{"x":117,"y":421,"width":746,"height":12}},{"id":"a33825dd-07ed-4c0f-85e4-55837806c219","block_type":"box","text":"laws. Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and","page_number":60,"box":{"x":117,"y":437,"width":758,"height":12}},{"id":"4e4dbb25-7f16-4b6c-876a-8c8eccb92d8e","block_type":"box","text":"purchasers of interests in Loans, such as the Funds, may not have the protection of the anti-fraud","page_number":60,"box":{"x":117,"y":452,"width":729,"height":12}},{"id":"6ba9ffac-d8b6-42cf-82fc-aa858db54994","block_type":"box","text":"provisions of the federal securities laws as would otherwise be available for bonds or stocks. Instead,","page_number":60,"box":{"x":117,"y":468,"width":755,"height":12}},{"id":"9bf4178e-0234-4a7b-84f5-a06c3b76331f","block_type":"box","text":"in such cases, parties generally would rely on the contractual provisions in the Loan agreement itself","page_number":60,"box":{"x":117,"y":483,"width":750,"height":12}},{"id":"23db7d73-5feb-4704-8c3e-b64e884e76e7","block_type":"box","text":"and common-law fraud protections under applicable state law.","page_number":60,"box":{"x":116,"y":499,"width":467,"height":12}},{"id":"2d31386f-14cb-4259-9a0f-517d5b098dac","block_type":"box","text":"Direct Lending","page_number":60,"box":{"x":116,"y":528,"width":108,"height":12}},{"id":"14bb5d8a-7ff1-414d-87ce-898af4e0c202","block_type":"box","text":". The Fund may act as the originator for direct loans and engage in direct lending. Direct","page_number":60,"box":{"x":226,"y":528,"width":658,"height":12}},{"id":"f11e9efb-a6d7-467d-9232-fdacd7460cf9","block_type":"box","text":"loans between the Fund and a borrower may not be administered by an underwriter or agent bank. The","page_number":60,"box":{"x":117,"y":543,"width":771,"height":12}},{"id":"42cd141b-7eba-4b3c-b953-3f94aad75623","block_type":"box","text":"Fund may provide financing to commercial borrowers directly or through companies acquired (or","page_number":60,"box":{"x":117,"y":559,"width":719,"height":12}},{"id":"7f1adff0-4749-4950-b741-b205eae76500","block_type":"box","text":"created) and owned by or otherwise affiliated with the Fund. The terms of the direct loans are","page_number":60,"box":{"x":116,"y":574,"width":697,"height":12}},{"id":"64851fff-c2fc-46f2-97db-341802f710a6","block_type":"box","text":"negotiated with borrowers in private transactions. Furthermore, a direct loan may be secured or","page_number":60,"box":{"x":117,"y":590,"width":712,"height":12}},{"id":"8ecc8500-7d33-4e0c-8b90-4227c7999f4a","block_type":"box","text":"unsecured.","page_number":60,"box":{"x":117,"y":605,"width":87,"height":10}},{"id":"e62d359a-692b-467c-843a-b50ce857a336","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of","page_number":60,"box":{"x":117,"y":634,"width":755,"height":12}},{"id":"20e1e0d4-edfb-4eeb-92ea-2b7138d8bb04","block_type":"box","text":"the borrower and/or any collateral for payment of interest and repayment of principal. The risks","page_number":60,"box":{"x":116,"y":649,"width":708,"height":12}},{"id":"27690705-35d5-4c80-a1d0-7ce38488f81e","block_type":"box","text":"associated with direct loans are substantially similar to those associated with investing in corporate","page_number":60,"box":{"x":116,"y":665,"width":733,"height":12}},{"id":"e7adf953-5876-4fc2-9406-2d18ad6b14ec","block_type":"box","text":"loans. In making a direct loan, the Fund is exposed to the risk that the borrower may default or become","page_number":60,"box":{"x":117,"y":680,"width":764,"height":12}},{"id":"343179f2-4c88-421c-8888-208b09ab08ae","block_type":"box","text":"insolvent and, consequently, that the Fund will lose money on the loan. Furthermore, direct loans may","page_number":60,"box":{"x":117,"y":696,"width":755,"height":12}},{"id":"da18ccba-bff8-4d88-b4df-5afd716b73c5","block_type":"box","text":"subject the Fund to liquidity and interest rate risk and certain direct loans may be deemed illiquid.","page_number":60,"box":{"x":116,"y":712,"width":720,"height":11}},{"id":"53195f88-1823-4d36-bf63-d546731ca18a","block_type":"box","text":"Direct loans are not publicly traded and may not have a secondary market. The lack of a secondary","page_number":60,"box":{"x":117,"y":727,"width":737,"height":12}},{"id":"743c99f4-c428-4a82-9eb3-32b6c744631e","block_type":"box","text":"market for direct loans may have an adverse impact on the ability of the Fund to dispose of a direct","page_number":60,"box":{"x":117,"y":742,"width":734,"height":12}},{"id":"3dd8cded-12b9-403e-b3ff-70edfec873cd","block_type":"box","text":"loan and/or to value the direct loan.","page_number":60,"box":{"x":117,"y":758,"width":260,"height":10}},{"id":"702a0bb8-3785-45ae-a072-2585cc9ac9ca","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the","page_number":60,"box":{"x":116,"y":787,"width":731,"height":12}},{"id":"866311d6-06b8-43cd-8ee3-1e60857b7a12","block_type":"box","text":"Fund to originate loans on advantageous terms. In originating loans, the Fund will compete with a","page_number":60,"box":{"x":117,"y":802,"width":722,"height":12}},{"id":"30593fcb-f6ad-4f04-86c6-3fa29ebd7a50","block_type":"box","text":"broad spectrum of lenders. Increased competition for, or a diminishment in the available supply of,","page_number":60,"box":{"x":117,"y":818,"width":727,"height":12}},{"id":"da8161df-c00a-4dbc-a35a-bf54f6960d53","block_type":"box","text":"qualifying loans could result in lower yields on such loans, which could reduce Fund performance.","page_number":60,"box":{"x":116,"y":833,"width":730,"height":12}},{"id":"6cd1465c-5a5b-46d0-8efb-81e74936dc53","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing","page_number":60,"box":{"x":116,"y":862,"width":719,"height":12}},{"id":"19c5b663-e1a4-4cb4-a4a4-1fe27e3f5782","block_type":"box","text":"significant financial or business difficulties, including companies involved in bankruptcy or other","page_number":60,"box":{"x":116,"y":877,"width":710,"height":12}},{"id":"e27fa89a-ff67-48c3-9df0-e3f6736b9ad7","block_type":"box","text":"II-10","page_number":60,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2fd04746-7562-4350-9b93-bdad791cdd80","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":60,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"a1ec0ed4-e3d3-4b2f-92c3-ad56cc62c2de","block_type":"box","text":"reorganization and liquidation proceedings. Although the terms of such financing may result in","page_number":61,"box":{"x":117,"y":87,"width":701,"height":12}},{"id":"e68438d9-c380-42a6-b1b6-29935c4c9042","block_type":"box","text":"significant financial returns to the Fund, they involve a substantial degree of risk. The level of analytical","page_number":61,"box":{"x":116,"y":102,"width":768,"height":13}},{"id":"e4900b6c-3d88-449e-bb26-3810083f7044","block_type":"box","text":"sophistication, both financial and legal, necessary for successful financing to companies experiencing","page_number":61,"box":{"x":116,"y":118,"width":758,"height":12}},{"id":"7ea4ad7a-f355-48d2-a815-1a5d38183109","block_type":"box","text":"significant business and financial difficulties is unusually high.","page_number":61,"box":{"x":116,"y":134,"width":461,"height":12}},{"id":"5b1dc54e-b539-4d4b-a060-2c9a6b6ce0bb","block_type":"box","text":"Credit Linked Securities.","page_number":61,"box":{"x":117,"y":162,"width":195,"height":10}},{"id":"621ebdb4-dc7a-4a81-86e6-ca1ad3b647c2","block_type":"box","text":"Among the income producing securities in which a Fund may invest are","page_number":61,"box":{"x":313,"y":162,"width":541,"height":12}},{"id":"2a410357-2688-496a-a07a-3e8932298329","block_type":"box","text":"credit linked securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests","page_number":61,"box":{"x":116,"y":178,"width":768,"height":12}},{"id":"83e7a4f7-1224-4552-b914-10d654dfd92d","block_type":"box","text":"in a derivative instrument or basket of derivative instruments, such as credit default swaps, interest rate","page_number":61,"box":{"x":117,"y":193,"width":771,"height":12}},{"id":"04d68553-7616-420e-ba1c-41223a5423e3","block_type":"box","text":"swaps and other securities, in order to provide exposure to certain fixed-income markets. For instance,","page_number":61,"box":{"x":116,"y":209,"width":768,"height":12}},{"id":"75b8830b-2ab8-4ede-829b-88cd303d4b2b","block_type":"box","text":"a Fund may invest in credit linked securities as a cash management tool in order to gain exposure to a","page_number":61,"box":{"x":116,"y":224,"width":765,"height":12}},{"id":"2a822780-bdf9-4999-a2ea-651b3e61600b","block_type":"box","text":"certain market and/or to remain fully invested when more traditional income producing securities are","page_number":61,"box":{"x":116,"y":240,"width":748,"height":12}},{"id":"045a3321-ed6f-47f3-9255-f5a9d9cd1cd8","block_type":"box","text":"not available.","page_number":61,"box":{"x":117,"y":255,"width":103,"height":10}},{"id":"8e0d1d72-582d-4763-a086-03142e2aaa58","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive","page_number":61,"box":{"x":117,"y":284,"width":770,"height":12}},{"id":"756bc57e-2005-4955-aeea-7861092eb56b","block_type":"box","text":"periodic income payments (in the form of distributions) and payment of principal at the end of the term","page_number":61,"box":{"x":117,"y":300,"width":761,"height":12}},{"id":"fada5fc7-620a-4902-aa44-8246ded842c8","block_type":"box","text":"of the security.","page_number":61,"box":{"x":116,"y":315,"width":114,"height":12}},{"id":"4c7e29c9-ba88-4081-835a-0b3733ff7d57","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s","page_number":61,"box":{"x":117,"y":344,"width":748,"height":12}},{"id":"f483970d-8051-4532-92eb-6afa8393560f","block_type":"box","text":"potential obligations to, the counterparties to the derivative instruments and other securities in which","page_number":61,"box":{"x":117,"y":359,"width":747,"height":12}},{"id":"dbd7030a-f8d1-4772-a7d6-8305a8005ad3","block_type":"box","text":"the issuer invests. For instance, the issuer may sell one or more credit default swaps, under which the","page_number":61,"box":{"x":116,"y":375,"width":762,"height":12}},{"id":"36388593-5213-4a70-ada9-fd258bb94fd9","block_type":"box","text":"issuer would receive a stream of payments over the term of the swap agreements provided that no","page_number":61,"box":{"x":117,"y":390,"width":736,"height":12}},{"id":"bb232189-668a-48b4-9c51-90129a4fcf06","block_type":"box","text":"event of default has occurred with respect to the referenced debt obligation upon which the swap is","page_number":61,"box":{"x":116,"y":406,"width":741,"height":12}},{"id":"9cf589ba-dff2-4f20-a912-2fc5f1f82cd4","block_type":"box","text":"based. If a default occurs, the stream of payments may stop and the issuer would be obligated to pay","page_number":61,"box":{"x":117,"y":421,"width":756,"height":12}},{"id":"342da7fc-51e2-411a-9c84-c88a6a3385ea","block_type":"box","text":"the counterparty the par (or other agreed upon value) of the referenced debt obligation. This, in turn,","page_number":61,"box":{"x":116,"y":437,"width":749,"height":12}},{"id":"da8daccb-0f27-4c3c-95ea-722fe5fdaf75","block_type":"box","text":"would reduce the amount of income and principal that","page_number":61,"box":{"x":116,"y":452,"width":404,"height":12}},{"id":"202b18ad-1ab7-4ed5-891a-87013d1fcea2","block_type":"box","text":"a Fund would receive. A Fund’s investments in","page_number":61,"box":{"x":521,"y":452,"width":351,"height":10}},{"id":"5e4624ac-3d11-4f86-b588-d5860288efb8","block_type":"box","text":"these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":61,"box":{"x":116,"y":468,"width":750,"height":12}},{"id":"06e4b9f2-9ddd-4013-8126-c8b1654df158","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk","page_number":61,"box":{"x":116,"y":483,"width":766,"height":12}},{"id":"fc703f46-88e6-4bba-b038-5965f3d8fbfb","block_type":"box","text":"and management risk. It is also expected that the securities will be exempt from registration under the","page_number":61,"box":{"x":116,"y":499,"width":761,"height":12}},{"id":"4f0ae6ab-bc53-4e1d-b269-aae5211b6363","block_type":"box","text":"Securities Act. Accordingly, there may be no established trading market for the securities and they may","page_number":61,"box":{"x":116,"y":514,"width":771,"height":12}},{"id":"15b1a971-fc6e-4d6e-845d-f8b17725339a","block_type":"box","text":"constitute illiquid investments.","page_number":61,"box":{"x":116,"y":530,"width":227,"height":12}},{"id":"375bc314-5a22-44f0-8f06-8ba739be1d51","block_type":"box","text":"Debt Securities.","page_number":61,"box":{"x":116,"y":559,"width":126,"height":9}},{"id":"5abfb72a-1212-4c08-9100-547d245378a3","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will","page_number":61,"box":{"x":243,"y":559,"width":633,"height":11}},{"id":"21efbff2-1c7f-409f-8e84-5e60385cc018","block_type":"box","text":"not make timely payments of principal and interest. The degree of credit risk depends on the issuer’s","page_number":61,"box":{"x":117,"y":574,"width":751,"height":12}},{"id":"c8ba1ca7-a162-4678-aa04-34bbac1501ca","block_type":"box","text":"financial condition and on the terms of the debt securities. Changes in an issuer’s credit rating or the","page_number":61,"box":{"x":116,"y":590,"width":749,"height":12}},{"id":"a616e841-1dd0-44d6-b4e3-0e0fedd94d4f","block_type":"box","text":"market’s perception of an issuer’s creditworthiness may also affect the value of a Fund’s investment in","page_number":61,"box":{"x":117,"y":605,"width":763,"height":12}},{"id":"165378b8-272d-4081-a8ae-c9679f4abda9","block_type":"box","text":"that issuer. Credit risk is reduced to the extent a Fund limits its debt investments to U.S. Government","page_number":61,"box":{"x":116,"y":621,"width":754,"height":9}},{"id":"2fc77638-005e-4c45-8086-4e631f39634d","block_type":"box","text":"Securities.","page_number":61,"box":{"x":116,"y":636,"width":83,"height":10}},{"id":"766a943b-e0b7-4e42-bb05-dd007c31e387","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the","page_number":61,"box":{"x":116,"y":665,"width":709,"height":12}},{"id":"1b2740b6-c8e8-4948-ab26-c02e666ff9c5","block_type":"box","text":"security may fall when interest rates rise. If interest rates move sharply in a manner not anticipated by","page_number":61,"box":{"x":116,"y":680,"width":755,"height":12}},{"id":"2c80d786-3a07-4db8-a14f-40a11fdaff1d","block_type":"box","text":"Fund management, a Fund’s investments in debt securities could be adversely affected and the Fund","page_number":61,"box":{"x":117,"y":696,"width":752,"height":12}},{"id":"fc061eee-4ac7-435a-af2e-c7aaec5fbfb3","block_type":"box","text":"could lose money. In general, the market price of debt securities with longer maturities will go up or","page_number":61,"box":{"x":116,"y":711,"width":735,"height":12}},{"id":"67b35f9f-4555-4468-87fe-089a55c3c552","block_type":"box","text":"down more in response to changes in interest rates than will the market price of shorter-term debt","page_number":61,"box":{"x":116,"y":727,"width":725,"height":12}},{"id":"3add4c1e-0e72-40fe-b96b-1c47fcbc3283","block_type":"box","text":"securities.","page_number":61,"box":{"x":116,"y":743,"width":74,"height":9}},{"id":"14bf502b-aa31-4f2d-a636-836a98ebb258","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended","page_number":61,"box":{"x":117,"y":771,"width":738,"height":12}},{"id":"6e4bc43e-a8dd-41eb-9acc-ee8052c94d6e","block_type":"box","text":"because of slower than expected principal payments. This may lock in a below-market interest rate and","page_number":61,"box":{"x":117,"y":787,"width":765,"height":12}},{"id":"35fb37fd-ccc5-47c6-8f13-22006b5fcc62","block_type":"box","text":"extend the duration of these fixed-income securities, especially mortgage-related securities, making","page_number":61,"box":{"x":116,"y":802,"width":739,"height":12}},{"id":"548d2517-e410-41bf-b493-7f396dd0ae58","block_type":"box","text":"them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, these","page_number":61,"box":{"x":116,"y":818,"width":750,"height":12}},{"id":"6aa2040e-39a9-4fb5-894d-298f1606b38c","block_type":"box","text":"securities may exhibit additional volatility and lose value. This is known as extension risk.","page_number":61,"box":{"x":116,"y":833,"width":665,"height":12}},{"id":"e1e3d886-178c-42ce-b96c-3d1757d90cbc","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in","page_number":61,"box":{"x":116,"y":862,"width":745,"height":12}},{"id":"2c5bd960-8f98-4d47-adc4-b557a3e0ffe7","block_type":"box","text":"prevailing interest rates. Fixed-income securities with longer maturities, which tend to produce higher","page_number":61,"box":{"x":117,"y":878,"width":753,"height":11}},{"id":"ec78555b-77e9-4ab4-921e-1d0b092d3e47","block_type":"box","text":"II-11","page_number":61,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"af111cf3-a746-434f-947e-2485f0fca175","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":61,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"5b1022bd-faa9-4595-8d6e-c1d7b0b20b0d","block_type":"box","text":"yields, are subject to potentially greater capital appreciation and depreciation than securities with","page_number":62,"box":{"x":116,"y":87,"width":723,"height":12}},{"id":"7a0cdd85-ffca-4460-8337-478cbc8700a2","block_type":"box","text":"shorter maturities. The Funds are not restricted to any maximum or minimum time to maturity in","page_number":62,"box":{"x":116,"y":103,"width":714,"height":12}},{"id":"57aea894-2c0d-4182-984f-2070548ee720","block_type":"box","text":"purchasing individual portfolio securities, and the average maturity of a Fund’s assets will vary.","page_number":62,"box":{"x":117,"y":118,"width":707,"height":12}},{"id":"dc2e3e4e-2580-4e82-9581-5653f2807a5d","block_type":"box","text":"Floating and Variable Rate Securities.","page_number":62,"box":{"x":116,"y":149,"width":280,"height":12}},{"id":"9d3c0643-e1db-4596-80f0-26a69d2eb27a","block_type":"box","text":"Certain Funds may invest in debt instruments that pay a variable","page_number":62,"box":{"x":398,"y":149,"width":490,"height":12}},{"id":"de7bf155-ea8e-4eea-b92d-a1ee31490ea1","block_type":"box","text":"coupon rate. Securities with floating or variable interest rates can be less sensitive to interest rate","page_number":62,"box":{"x":116,"y":165,"width":728,"height":12}},{"id":"6c7fd7f3-298e-4a28-8943-e38827d5fba4","block_type":"box","text":"changes than securities with fixed interest rates, but may decline in value if their interest rates do not","page_number":62,"box":{"x":116,"y":180,"width":752,"height":12}},{"id":"22e6264a-c3b9-4564-8409-ad8a145c0e5e","block_type":"box","text":"rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not","page_number":62,"box":{"x":117,"y":196,"width":732,"height":12}},{"id":"64cfe41e-ec26-4052-b9f5-edd86e109579","block_type":"box","text":"generally increase in value if interest rates decline. The","page_number":62,"box":{"x":116,"y":211,"width":415,"height":12}},{"id":"22364226-4649-4860-9785-40fb7b9f5491","block_type":"box","text":"impact of interest rate changes on floating rate","page_number":62,"box":{"x":532,"y":211,"width":350,"height":12}},{"id":"64d8cf66-cd1f-410b-926d-6fd3d2a81bde","block_type":"box","text":"investments is typically mitigated by the periodic interest rate reset of the investments. Benchmark","page_number":62,"box":{"x":117,"y":227,"width":733,"height":12}},{"id":"c1e5aaf3-3f12-4332-8627-443185bc05a9","block_type":"box","text":"interest rates used for floating and variable rate securities may not accurately track market interest","page_number":62,"box":{"x":117,"y":242,"width":734,"height":12}},{"id":"90b7e42f-21f4-4b80-bc9d-788e6fb29af3","block_type":"box","text":"rates.","page_number":62,"box":{"x":117,"y":258,"width":45,"height":9}},{"id":"7baebe2a-97cc-4823-a1cc-8f84834daf5b","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":62,"box":{"x":117,"y":289,"width":179,"height":9}},{"id":"3d8be95b-e03a-4aaa-a566-f3ad1e4db98e","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income","page_number":62,"box":{"x":297,"y":289,"width":577,"height":12}},{"id":"8ce5f28e-4daa-4c72-8248-d254ea73fc4d","block_type":"box","text":"securities or other instruments whose principal value is periodically adjusted according to the rate of","page_number":62,"box":{"x":116,"y":304,"width":746,"height":12}},{"id":"e555b641-c827-4b11-9bb0-4f2767f97f6a","block_type":"box","text":"inflation. Two structures are common. The U.S. Treasury and some other issuers use a structure that","page_number":62,"box":{"x":117,"y":320,"width":755,"height":12}},{"id":"32510758-6009-4891-a286-c4b1130dd20d","block_type":"box","text":"accrues inflation into the principal value of the bond. Most other issuers pay out the Consumer Price","page_number":62,"box":{"x":116,"y":335,"width":747,"height":12}},{"id":"81c5dbd5-d1e7-42f2-93a5-fd46c5e192d8","block_type":"box","text":"Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":62,"box":{"x":117,"y":351,"width":417,"height":12}},{"id":"bb64d3c0-da6b-4646-8fce-1480a84d5195","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years,","page_number":62,"box":{"x":117,"y":382,"width":728,"height":12}},{"id":"fd8737b5-943e-4c58-9136-4bad5e895830","block_type":"box","text":"although it is possible that securities with other maturities will be issued in the future. The U.S.","page_number":62,"box":{"x":116,"y":397,"width":703,"height":12}},{"id":"36fd6ea5-37cb-44df-815b-c10be3975e1e","block_type":"box","text":"Treasury securities pay interest on a semi-annual basis, equal to a fixed percentage of the inflation","page_number":62,"box":{"x":116,"y":413,"width":738,"height":12}},{"id":"678d309e-a214-405e-adb3-eea3b2b6971b","block_type":"box","text":"adjusted principal amount. For example, if a Fund purchased an inflation-indexed bond with a par","page_number":62,"box":{"x":116,"y":428,"width":727,"height":12}},{"id":"0a88e931-fa50-4f9e-9d46-e7ba07300b9c","block_type":"box","text":"value of $1,000 and a 3% real rate of return coupon (payable 1.5% semi-annually), and inflation over","page_number":62,"box":{"x":116,"y":443,"width":753,"height":13}},{"id":"59e2f805-9f71-4fad-adb6-bf72a2107f61","block_type":"box","text":"the first six months was 1%, the mid-year par value of the bond would be $1,010 and the first semi","page_number":62,"box":{"x":116,"y":458,"width":736,"height":13}},{"id":"1885277b-6add-46c4-b68b-dd01fbc7fdd1","block_type":"box","text":"annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half of the","page_number":62,"box":{"x":116,"y":474,"width":766,"height":13}},{"id":"414b9ea0-cfb3-48d3-ba64-59be8040cf68","block_type":"box","text":"year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be","page_number":62,"box":{"x":116,"y":490,"width":764,"height":12}},{"id":"1c495c8d-72e9-426a-934b-97c524f2fbb9","block_type":"box","text":"$1,030 and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":62,"box":{"x":116,"y":505,"width":689,"height":13}},{"id":"2d41c4c8-fd9f-484e-b50f-44d05e8e7090","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds","page_number":62,"box":{"x":117,"y":537,"width":747,"height":12}},{"id":"e53afc11-6738-4462-8496-531d3813deb4","block_type":"box","text":"will be adjusted downward, and, consequently, the interest payable on these securities (calculated with","page_number":62,"box":{"x":116,"y":552,"width":769,"height":12}},{"id":"d44f4916-0942-4694-b883-f284939cf280","block_type":"box","text":"respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon","page_number":62,"box":{"x":117,"y":568,"width":754,"height":12}},{"id":"3a275366-8786-4b97-b231-86b366cd6ecb","block_type":"box","text":"maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds,","page_number":62,"box":{"x":117,"y":583,"width":755,"height":12}},{"id":"e67c2bc6-36ba-4c7a-a73a-8e1362faa28a","block_type":"box","text":"even during a period of deflation. However, the current market value of the bonds is not guaranteed,","page_number":62,"box":{"x":116,"y":599,"width":748,"height":12}},{"id":"47444d05-c02b-492d-8b4e-38c25ca8f2e5","block_type":"box","text":"and will fluctuate. Certain Funds may also invest in other inflation related bonds which may or may not","page_number":62,"box":{"x":116,"y":614,"width":763,"height":12}},{"id":"948bec24-37d4-4c1b-9cb3-e0b2642f18cc","block_type":"box","text":"provide a similar guarantee. If a guarantee of principal is not provided, the adjusted principal value of","page_number":62,"box":{"x":117,"y":630,"width":752,"height":12}},{"id":"bd88c424-6573-4eac-b89c-605650c0480b","block_type":"box","text":"the bond repaid at maturity may be less than the original principal. In addition, if the Fund purchases","page_number":62,"box":{"x":116,"y":645,"width":749,"height":12}},{"id":"f576eafe-4cb3-4e42-b015-11f6227c7a41","block_type":"box","text":"inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign inflation","page_number":62,"box":{"x":117,"y":661,"width":761,"height":12}},{"id":"68797040-cb0a-44d2-a8cd-568cb8cbc269","block_type":"box","text":"index may not be correlated to the rate of inflation in the United States.","page_number":62,"box":{"x":117,"y":676,"width":523,"height":12}},{"id":"f951b942-bc06-4e18-8d40-c27d870a72fd","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest","page_number":62,"box":{"x":116,"y":707,"width":727,"height":12}},{"id":"2bc2c9f8-9d67-4c54-ab9b-336a9ba14e36","block_type":"box","text":"rates. Real interest rates, in turn, are tied to the relationship between nominal interest rates and the","page_number":62,"box":{"x":117,"y":723,"width":736,"height":12}},{"id":"ea66e117-2e22-469e-b9e0-441e17d12aff","block_type":"box","text":"rate of inflation. Therefore, if inflation were to rise at a faster rate than nominal interest rates, real","page_number":62,"box":{"x":117,"y":738,"width":717,"height":11}},{"id":"26f4f32a-fb6c-46d3-928c-9b33a3bef14f","block_type":"box","text":"interest rates might decline, leading to an increase in value of inflation-indexed bonds. In contrast, if","page_number":62,"box":{"x":117,"y":754,"width":739,"height":12}},{"id":"2ce4b66f-edcc-40a6-abbe-b9cd911f4b47","block_type":"box","text":"nominal interest rates increased at a faster rate than inflation, real interest rates might rise, leading to a","page_number":62,"box":{"x":117,"y":769,"width":764,"height":12}},{"id":"761c6b3d-2f7d-44ab-8822-d17696b32a00","block_type":"box","text":"decrease in value of inflation-indexed bonds. There can be no assurance, however, that the value of","page_number":62,"box":{"x":116,"y":785,"width":745,"height":11}},{"id":"031a84ad-f63a-40de-b99c-0bca87bd3949","block_type":"box","text":"inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":62,"box":{"x":117,"y":800,"width":570,"height":12}},{"id":"2bef6b04-ea29-429d-ae2c-d0157660a023","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term","page_number":62,"box":{"x":116,"y":831,"width":725,"height":12}},{"id":"2965a150-1562-4627-89d2-00067c8658f5","block_type":"box","text":"increases in inflation may lead to a decline in value. If interest rates rise due to reasons other than","page_number":62,"box":{"x":117,"y":847,"width":731,"height":12}},{"id":"78dfcc9c-3ce3-42f3-8fb3-2c3b6e7f7bb8","block_type":"box","text":"inflation (for example, due to changes in currency exchange rates), investors in these securities may","page_number":62,"box":{"x":117,"y":862,"width":749,"height":12}},{"id":"a494a6c9-57ee-4b0f-a2f1-3e935abe4fda","block_type":"box","text":"not be protected to the extent that the increase is not reflected in the bond’s inflation measure.","page_number":62,"box":{"x":117,"y":878,"width":704,"height":12}},{"id":"80f0d8ef-ef13-45cf-a0d9-5e622f8f4fd9","block_type":"box","text":"II-12","page_number":62,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"b288c1da-8b9b-4904-b907-b2633b54a5f5","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":62,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"8905be22-1272-4f14-88f0-0b356a9bafd8","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is","page_number":63,"box":{"x":117,"y":87,"width":750,"height":12}},{"id":"a9dcd533-f3c2-4655-837c-7c89ea75cdb6","block_type":"box","text":"the Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S.","page_number":63,"box":{"x":116,"y":102,"width":739,"height":13}},{"id":"f53bb477-6bac-42d2-a6c3-4d686a9e7467","block_type":"box","text":"Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of","page_number":63,"box":{"x":117,"y":118,"width":747,"height":12}},{"id":"b3611ffb-e877-4388-bdf3-55e654cca77d","block_type":"box","text":"components such as housing, food, transportation and energy. Inflation-indexed bonds issued by a","page_number":63,"box":{"x":116,"y":134,"width":739,"height":12}},{"id":"22ed1ce2-6a1d-41f7-a5cd-5e79d9e8a22f","block_type":"box","text":"foreign government are generally adjusted to reflect a comparable inflation index, calculated by that","page_number":63,"box":{"x":116,"y":149,"width":743,"height":12}},{"id":"2cb42694-2dda-4c2e-b83b-80c9f4593e25","block_type":"box","text":"government. There can be no assurance that the CPI-U or any foreign inflation index will accurately","page_number":63,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"77125a99-df54-4c35-a548-fc51fc5d52c1","block_type":"box","text":"measure the real rate of inflation in the prices of goods and services. Moreover, there can be no","page_number":63,"box":{"x":117,"y":180,"width":716,"height":12}},{"id":"2befc240-b817-4558-a164-dbe38affffd0","block_type":"box","text":"assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":63,"box":{"x":116,"y":196,"width":745,"height":12}},{"id":"b6f4c513-42b3-45e3-b063-00b2ff35ec7c","block_type":"box","text":"United States.","page_number":63,"box":{"x":117,"y":211,"width":109,"height":10}},{"id":"cef0c2bb-0e66-43c7-b478-6aa25b0e94a6","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary","page_number":63,"box":{"x":116,"y":241,"width":750,"height":12}},{"id":"edb9f482-ce5d-4b58-b304-30a642d9daa5","block_type":"box","text":"income, even though investors do not receive their principal until maturity.","page_number":63,"box":{"x":117,"y":257,"width":552,"height":12}},{"id":"59dc1b97-02ce-4a7c-827d-9469ff81b2be","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":63,"box":{"x":117,"y":286,"width":265,"height":12}},{"id":"e916dd97-c88e-40e3-84f3-c203f1372dce","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which","page_number":63,"box":{"x":383,"y":286,"width":492,"height":12}},{"id":"25bc15a3-a54f-47c0-864c-89ae25957cf6","block_type":"box","text":"are securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent","page_number":63,"box":{"x":116,"y":302,"width":750,"height":12}},{"id":"152db9a5-cb5f-4f50-8b6f-892440cd46ab","block_type":"box","text":"quality by a Fund’s Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or","page_number":63,"box":{"x":116,"y":317,"width":734,"height":12}},{"id":"4a384d51-16ef-4f24-b6e2-5c5e66452395","block_type":"box","text":"AAA by S&P. It should be noted that debt obligations rated in the lowest of the top four ratings (","page_number":63,"box":{"x":116,"y":333,"width":708,"height":12}},{"id":"91f5c074-00de-45be-9f8d-bc69986def5a","block_type":"box","text":"i.e.","page_number":63,"box":{"x":825,"y":333,"width":20,"height":9}},{"id":"142b3677-2e57-4128-834c-0006cf8f63ee","block_type":"box","text":",","page_number":63,"box":{"x":848,"y":341,"width":8,"height":3}},{"id":"df66e88a-3a09-41e1-afd7-b4657b959b65","block_type":"box","text":"“Baa” by Moody’s or “BBB” by S&P) are considered to have some speculative characteristics and are","page_number":63,"box":{"x":116,"y":348,"width":756,"height":12}},{"id":"c7aff592-505e-4c7a-9fb0-d3aca464930f","block_type":"box","text":"more sensitive to economic change than higher rated securities. If an investment grade security of a","page_number":63,"box":{"x":117,"y":364,"width":747,"height":12}},{"id":"0bc2d1c4-1abc-487b-81d9-78445d642c6e","block_type":"box","text":"Fund is subsequently downgraded below investment grade, the Fund’s Manager will consider such an","page_number":63,"box":{"x":117,"y":380,"width":761,"height":11}},{"id":"0240f59b-3dc6-4f4b-81c7-d190c96cd59c","block_type":"box","text":"event in determining whether the Fund should continue to hold the security. Subject to its investment","page_number":63,"box":{"x":116,"y":395,"width":752,"height":12}},{"id":"45d88666-495a-4028-b171-8bc2afc5e9c6","block_type":"box","text":"strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":63,"box":{"x":116,"y":410,"width":679,"height":12}},{"id":"f68028b3-cc6b-498f-b48a-159d8ad3e21b","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":63,"box":{"x":116,"y":440,"width":566,"height":12}},{"id":"edb238e8-d884-4a05-88a6-5876455a2d8e","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":63,"box":{"x":116,"y":477,"width":296,"height":13}},{"id":"98f1bcce-fded-4ff0-86ca-aa1701df8d3d","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to","page_number":63,"box":{"x":117,"y":507,"width":711,"height":12}},{"id":"eafbef2f-2a09-4ffe-ab7f-7079efc55a1b","block_type":"box","text":"investors as “junk bonds” are debt securities that are rated below investment grade by the major rating","page_number":63,"box":{"x":117,"y":523,"width":764,"height":12}},{"id":"9363ece9-cae3-4af7-9b70-2f6bb9b7cb8a","block_type":"box","text":"agencies or are securities that Fund management believes are of comparable quality. While generally","page_number":63,"box":{"x":116,"y":538,"width":759,"height":12}},{"id":"c5bd2be8-d5e7-4db7-afd7-5f6d12186699","block_type":"box","text":"providing greater income and opportunity for gain, non-investment grade debt securities may be","page_number":63,"box":{"x":117,"y":554,"width":715,"height":12}},{"id":"9a9cd11b-a3f5-44b1-9859-8e8f54d2e7cb","block_type":"box","text":"subject to greater risks than securities which have higher credit ratings, including a high risk of default,","page_number":63,"box":{"x":116,"y":569,"width":764,"height":12}},{"id":"9389db06-a169-4343-9800-a3591da7b9ef","block_type":"box","text":"and their yields will fluctuate over time. High yield securities will generally be in the lower rating","page_number":63,"box":{"x":116,"y":585,"width":709,"height":12}},{"id":"674276ea-684c-4558-a785-a6927ea7abaf","block_type":"box","text":"categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P) or","page_number":63,"box":{"x":116,"y":600,"width":755,"height":12}},{"id":"9be28880-3535-4ffa-9beb-c0d6a5c30f81","block_type":"box","text":"will be non-rated. The credit rating of a high yield security does not necessarily address its market","page_number":63,"box":{"x":116,"y":616,"width":730,"height":12}},{"id":"fb897c7e-c606-4cf3-8b82-4a80f492fda6","block_type":"box","text":"value risk, and ratings may from time to time change, positively or negatively, to reflect developments","page_number":63,"box":{"x":116,"y":631,"width":757,"height":12}},{"id":"7b76b5a3-49a9-4965-9bea-02e9717e2ffe","block_type":"box","text":"regarding the issuer’s financial condition. High yield securities are considered to be speculative with","page_number":63,"box":{"x":117,"y":647,"width":743,"height":12}},{"id":"077ad180-59c0-4036-86da-97b634af33b6","block_type":"box","text":"respect to the capacity of the issuer to timely repay principal and pay interest or dividends in","page_number":63,"box":{"x":117,"y":662,"width":682,"height":12}},{"id":"1e5b339a-8c86-45f5-ba07-05d8e3ed249a","block_type":"box","text":"accordance with the terms of the obligation and may have more credit risk than higher rated securities.","page_number":63,"box":{"x":116,"y":678,"width":761,"height":12}},{"id":"f487d7e1-73e1-408e-b5ae-23d6cf8e4f41","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":63,"box":{"x":116,"y":708,"width":464,"height":12}},{"id":"80453033-a605-4bb4-8638-ccfb6b20a318","block_type":"box","text":"• Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to","page_number":63,"box":{"x":117,"y":731,"width":731,"height":12}},{"id":"0aa83cae-5460-4dee-aee5-63b0edf27588","block_type":"box","text":"adverse changes in the issuer’s industry and to general economic conditions. Issuers of junk","page_number":63,"box":{"x":150,"y":746,"width":686,"height":12}},{"id":"bbf84cbc-ddb1-42b7-9b30-2c40dc457c99","block_type":"box","text":"bonds may be unable to meet their interest or principal payment obligations because of an","page_number":63,"box":{"x":150,"y":761,"width":669,"height":13}},{"id":"a888bd0f-212c-4b43-870a-95549481d45a","block_type":"box","text":"economic downturn, specific issuer developments or the unavailability of additional financing.","page_number":63,"box":{"x":150,"y":777,"width":689,"height":12}},{"id":"d7d97540-6dc6-48e0-800a-ca20c47720fd","block_type":"box","text":"• The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets","page_number":63,"box":{"x":117,"y":800,"width":740,"height":12}},{"id":"13caab57-f648-4527-8040-8b2e6c9156f4","block_type":"box","text":"than issuers of investment grade bonds. If the issuer experiences financial stress, it may be","page_number":63,"box":{"x":150,"y":815,"width":678,"height":12}},{"id":"0c220e40-58f3-4af7-945c-e4797d3b4544","block_type":"box","text":"unable to meet its debt obligations. The issuer’s ability to pay its debt obligations also may be","page_number":63,"box":{"x":150,"y":831,"width":697,"height":12}},{"id":"66c77dd3-d9e4-4472-8348-8d4b3fbedbd8","block_type":"box","text":"lessened by specific issuer developments, or the unavailability of additional financing. Issuers of","page_number":63,"box":{"x":150,"y":846,"width":717,"height":12}},{"id":"5007181e-31a7-46e0-b306-699b0d291b05","block_type":"box","text":"high yield securities are often in the growth stage of their development and/or involved in a","page_number":63,"box":{"x":150,"y":862,"width":677,"height":12}},{"id":"92605d7c-c643-4cdd-8476-7873eb0714f7","block_type":"box","text":"reorganization or takeover.","page_number":63,"box":{"x":150,"y":877,"width":204,"height":12}},{"id":"2df9f660-6231-4f8b-a59d-8b7ba8bea126","block_type":"box","text":"II-13","page_number":63,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f5ebc1fb-4b87-4e71-9b30-d72232204f5d","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":63,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"e39e65e5-2982-4650-b51f-d21f4b822c4c","block_type":"box","text":"• Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its","page_number":64,"box":{"x":117,"y":87,"width":754,"height":12}},{"id":"f62618e7-9a60-414e-a2e8-3927b618c43d","block_type":"box","text":"obligations, the senior obligations are generally paid off before the junior obligations, which will","page_number":64,"box":{"x":150,"y":102,"width":706,"height":13}},{"id":"b0a51a84-a181-4f77-ad7f-0101c1126b7c","block_type":"box","text":"potentially limit a Fund’s ability to fully recover principal or to receive interest payments when","page_number":64,"box":{"x":150,"y":118,"width":693,"height":12}},{"id":"2f7c8eff-ce24-4eab-b3b3-1031b4324fc9","block_type":"box","text":"senior securities are in default. Thus, investors in high yield securities have a lower degree of","page_number":64,"box":{"x":150,"y":134,"width":696,"height":12}},{"id":"cbde9261-7691-4e8d-b5f8-b6e7bc42e22a","block_type":"box","text":"protection with respect to principal and interest payments than do investors in higher rated","page_number":64,"box":{"x":150,"y":149,"width":674,"height":12}},{"id":"952afb8c-d25a-4795-8856-6dedda59b664","block_type":"box","text":"securities.","page_number":64,"box":{"x":150,"y":165,"width":80,"height":9}},{"id":"639803bb-fe44-46d9-8eaa-bff3eeea7c5a","block_type":"box","text":"• Junk bonds frequently have redemption features that permit an issuer to repurchase the security","page_number":64,"box":{"x":117,"y":188,"width":753,"height":12}},{"id":"c355cad6-b426-4968-85aa-9b543d15af76","block_type":"box","text":"from a Fund before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the","page_number":64,"box":{"x":149,"y":203,"width":738,"height":12}},{"id":"18351aff-d294-42b2-9789-99d2b00998d7","block_type":"box","text":"proceeds in bonds with lower yields and may lose income.","page_number":64,"box":{"x":150,"y":219,"width":437,"height":12}},{"id":"8ab09ce3-a32f-4c1f-80d6-4635f44eefc2","block_type":"box","text":"• Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments","page_number":64,"box":{"x":117,"y":242,"width":753,"height":12}},{"id":"ae42b0f8-b345-4fe8-b396-98883db467ce","block_type":"box","text":"may have a greater impact on the prices of junk bonds than on those of other higher rated fixed","page_number":64,"box":{"x":150,"y":258,"width":713,"height":12}},{"id":"c2688a76-2ca7-4681-b4be-f54d0b7697b3","block_type":"box","text":"income securities.","page_number":64,"box":{"x":150,"y":273,"width":139,"height":10}},{"id":"a47581c7-5a8b-4a3b-a40f-054bf5fde7d7","block_type":"box","text":"• Junk bonds may be less liquid than higher rated fixed-income securities even under normal","page_number":64,"box":{"x":117,"y":296,"width":714,"height":12}},{"id":"8ef9c974-870a-4445-87a6-89c0790394f8","block_type":"box","text":"economic conditions. Under certain economic and/or market conditions, a Fund may have difficulty","page_number":64,"box":{"x":150,"y":312,"width":738,"height":12}},{"id":"a9ea7e66-e786-4329-b258-bd75b6fb04b6","block_type":"box","text":"disposing of certain high yield securities due to the limited number of investors in that sector of the","page_number":64,"box":{"x":150,"y":327,"width":734,"height":12}},{"id":"a9bfd019-3dde-444d-a026-f7df8e151929","block_type":"box","text":"market. There are fewer dealers in the junk bond market, and there may be significant differences","page_number":64,"box":{"x":150,"y":343,"width":730,"height":12}},{"id":"1455fb61-62bc-4754-82de-4a034b8834ae","block_type":"box","text":"in the prices quoted for junk bonds by the dealers, and such quotations may not be the actual","page_number":64,"box":{"x":150,"y":358,"width":698,"height":12}},{"id":"5b18229f-d9f6-4887-afe2-6da274a9ee12","block_type":"box","text":"prices available for a purchase or sale. Because junk bonds are less liquid than higher rated","page_number":64,"box":{"x":150,"y":374,"width":688,"height":12}},{"id":"127a3a5f-aa03-40f2-b95b-c9ea89a8673b","block_type":"box","text":"bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities than in","page_number":64,"box":{"x":150,"y":389,"width":720,"height":12}},{"id":"625af11e-401b-4b48-9a28-d1422d9ea292","block_type":"box","text":"the case of securities trading in a more liquid market.","page_number":64,"box":{"x":150,"y":405,"width":398,"height":12}},{"id":"23eb1e04-8d0a-45e2-a886-906e34290a0a","block_type":"box","text":"• The secondary markets for high yield securities are not as liquid as the secondary markets for","page_number":64,"box":{"x":117,"y":428,"width":734,"height":12}},{"id":"deb56422-95b8-476d-9104-4bf07401a17f","block_type":"box","text":"higher rated securities. The secondary markets for high yield securities are concentrated in","page_number":64,"box":{"x":150,"y":444,"width":680,"height":12}},{"id":"60a7b412-8080-4e31-b0a7-88547c9d266e","block_type":"box","text":"relatively few market makers and participants in the markets are mostly institutional investors,","page_number":64,"box":{"x":150,"y":459,"width":699,"height":12}},{"id":"b93d7aa5-7c21-4b8a-b92b-ed7c6e40ec74","block_type":"box","text":"including insurance companies, banks, other financial institutions and mutual funds. In addition,","page_number":64,"box":{"x":150,"y":475,"width":712,"height":12}},{"id":"b84b3f2a-7de3-43de-bc10-e2805b06a667","block_type":"box","text":"the trading volume for high yield securities is generally lower than that for higher rated securities","page_number":64,"box":{"x":150,"y":490,"width":718,"height":12}},{"id":"e9f09055-2b89-4cff-8baf-fa7244e1959b","block_type":"box","text":"and the secondary markets could contract under adverse market or economic conditions","page_number":64,"box":{"x":150,"y":506,"width":662,"height":12}},{"id":"f0e48e93-e695-4ad2-be81-d8dcc06055fa","block_type":"box","text":"independent of any specific adverse changes in the condition of a particular issuer. Under certain","page_number":64,"box":{"x":150,"y":521,"width":725,"height":12}},{"id":"345e82cf-d5e2-43a6-80d4-02402110a577","block_type":"box","text":"economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":64,"box":{"x":150,"y":537,"width":695,"height":12}},{"id":"ef1f28fd-957a-4be1-ab4f-b80157758f25","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. An illiquid secondary","page_number":64,"box":{"x":150,"y":552,"width":728,"height":12}},{"id":"4359a35e-a5ed-4e56-b65d-5207944efd92","block_type":"box","text":"market may adversely affect the market price of the high yield security, which may result in","page_number":64,"box":{"x":150,"y":568,"width":678,"height":12}},{"id":"ba6e11b6-c202-4a4d-9ed8-ca8ba936a46d","block_type":"box","text":"increased difficulty selling the particular issue and obtaining accurate market quotations on the","page_number":64,"box":{"x":150,"y":583,"width":706,"height":12}},{"id":"7c10f3ab-97f0-4db0-b6f6-008037f3c78d","block_type":"box","text":"issue when valuing a Fund’s assets. Market quotations on high yield securities are available only","page_number":64,"box":{"x":150,"y":599,"width":722,"height":12}},{"id":"7746ba2b-c642-4adc-b947-9c563f309828","block_type":"box","text":"from a limited number of dealers, and such quotations may not be the actual prices available for a","page_number":64,"box":{"x":149,"y":614,"width":731,"height":12}},{"id":"974d8753-a389-43f4-a70c-8c0276a50a75","block_type":"box","text":"purchase or sale. When the secondary market for high yield securities becomes more illiquid, or in","page_number":64,"box":{"x":150,"y":630,"width":734,"height":12}},{"id":"cae91ee5-235f-4b00-97fe-a389f9e6f3c6","block_type":"box","text":"the absence of readily available market quotations for such securities, the relative lack of reliable","page_number":64,"box":{"x":150,"y":645,"width":723,"height":12}},{"id":"16aaf98a-9893-47a5-8b78-93233aab3078","block_type":"box","text":"objective data makes it more difficult to value a Fund’s securities, and judgment plays a more","page_number":64,"box":{"x":150,"y":661,"width":691,"height":12}},{"id":"7ab0ca9f-1b54-48c7-8b87-cb17d1b4e4f0","block_type":"box","text":"important role in determining such valuations.","page_number":64,"box":{"x":150,"y":676,"width":337,"height":12}},{"id":"b1da92cf-21cb-470c-8ed5-ad763e845ea5","block_type":"box","text":"• A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate","page_number":64,"box":{"x":117,"y":699,"width":757,"height":13}},{"id":"7d173323-45f1-470f-94d4-1b4a21c71da5","block_type":"box","text":"new terms with a defaulting issuer.","page_number":64,"box":{"x":150,"y":715,"width":256,"height":12}},{"id":"329edbee-da75-4070-afd0-146c816832de","block_type":"box","text":"• The junk bond markets may react strongly to adverse news about an issuer or the economy, or to","page_number":64,"box":{"x":117,"y":738,"width":756,"height":12}},{"id":"aa6dc5a0-43f6-416d-b663-768f8f352801","block_type":"box","text":"the perception or expectation of adverse news, whether or not it is based on fundamental analysis.","page_number":64,"box":{"x":150,"y":754,"width":731,"height":12}},{"id":"4ec98b00-d6ce-4c65-87ae-0381a9e88fa0","block_type":"box","text":"Additionally, prices for high yield securities may be affected by legislative and regulatory","page_number":64,"box":{"x":149,"y":769,"width":654,"height":12}},{"id":"90814cd5-8c4e-473b-a655-a09cce5897b2","block_type":"box","text":"developments. These developments could adversely affect a Fund’s NAV and investment","page_number":64,"box":{"x":150,"y":785,"width":664,"height":12}},{"id":"bffff177-5b71-4102-b8bd-4b9066da0064","block_type":"box","text":"practices, the secondary market for high yield securities, the financial condition of issuers of these","page_number":64,"box":{"x":150,"y":800,"width":726,"height":12}},{"id":"7f602be2-27d4-4661-b66c-a2b4ffea48dd","block_type":"box","text":"securities and the value and liquidity of outstanding high yield securities, especially in a thinly","page_number":64,"box":{"x":150,"y":816,"width":690,"height":12}},{"id":"21ffd555-f750-4819-b13f-f87cf5fefcb6","block_type":"box","text":"traded market. For example, federal legislation requiring the divestiture by federally insured","page_number":64,"box":{"x":150,"y":831,"width":681,"height":12}},{"id":"230a2509-55c2-4591-a29a-1f20711931bc","block_type":"box","text":"savings and loan associations of their investments in high yield bonds and limiting the deductibility","page_number":64,"box":{"x":150,"y":847,"width":733,"height":12}},{"id":"fbd3a79f-7aad-4fd5-a848-5c51e5ef5ecd","block_type":"box","text":"of interest by certain corporate issuers of high yield bonds adversely affected the market in the","page_number":64,"box":{"x":150,"y":862,"width":706,"height":12}},{"id":"30406a08-3c1b-4e1e-bfe6-7470eff74813","block_type":"box","text":"past.","page_number":64,"box":{"x":150,"y":878,"width":41,"height":12}},{"id":"43c6fb91-ed60-4c3e-9939-bc86ac23f2c2","block_type":"box","text":"II-14","page_number":64,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"929e983f-22f3-4bb5-90cf-08d0c8bf81dd","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":64,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"8ba71e93-41cb-4bf9-82ac-e2904a0cd590","block_type":"box","text":"• The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of","page_number":65,"box":{"x":117,"y":87,"width":770,"height":12}},{"id":"f1d4a6b4-270d-4b59-b264-2345dd52efe0","block_type":"box","text":"a non-investment grade security’s principal and interest payments, but does not address market","page_number":65,"box":{"x":150,"y":103,"width":716,"height":12}},{"id":"c731c7cc-9126-4109-acf9-a5f527b5b5bf","block_type":"box","text":"value risk. Because such ratings of the ratings agencies may not always reflect current conditions","page_number":65,"box":{"x":150,"y":118,"width":728,"height":12}},{"id":"74f40380-8c31-4668-a954-9de5cd1204f0","block_type":"box","text":"and events, in addition to using recognized rating agencies and other sources, the Manager or","page_number":65,"box":{"x":150,"y":134,"width":705,"height":12}},{"id":"51ff70f5-3a43-4bb8-a4fb-cc52f30e6a60","block_type":"box","text":"sub-adviser performs its own analysis of the issuers whose non-investment grade securities a","page_number":65,"box":{"x":150,"y":149,"width":700,"height":12}},{"id":"73e49db0-3d31-4e31-8a57-1f04cec99760","block_type":"box","text":"Fund holds. Because of this, the Fund’s performance may depend more on the Manager’s or","page_number":65,"box":{"x":151,"y":165,"width":693,"height":12}},{"id":"a00490c0-361a-43a7-bf9a-39543cdfa6b9","block_type":"box","text":"sub-adviser’s own credit analysis than in the case of mutual funds investing in higher-rated","page_number":65,"box":{"x":150,"y":180,"width":678,"height":12}},{"id":"f7e7db15-552a-4d54-a7f2-9e93b35f5a5b","block_type":"box","text":"securities.","page_number":65,"box":{"x":150,"y":196,"width":80,"height":9}},{"id":"220e54db-fa73-4a30-ac2d-61a1ee3d3e1e","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as","page_number":65,"box":{"x":117,"y":227,"width":742,"height":12}},{"id":"3bfe519d-5972-469f-a2ff-d7a0b69e54da","block_type":"box","text":"those relating to the creditworthiness of issuers, the ratings and performance of the securities, the","page_number":65,"box":{"x":116,"y":242,"width":731,"height":12}},{"id":"e63af876-802d-4ad6-8311-18d0c1090c21","block_type":"box","text":"protections afforded the securities and the diversity of the Fund. The Manager or sub-adviser","page_number":65,"box":{"x":117,"y":258,"width":694,"height":12}},{"id":"e0fa2005-7bfe-4534-af5d-23b8212b1c55","block_type":"box","text":"continuously monitors the issuers of non-investment grade securities held by the Fund for their ability","page_number":65,"box":{"x":116,"y":273,"width":755,"height":12}},{"id":"ec8fefe6-5b62-4847-9af4-d302b5ac01ed","block_type":"box","text":"to make required principal and interest payments, as well as in an effort to control the liquidity of the","page_number":65,"box":{"x":116,"y":289,"width":746,"height":12}},{"id":"1eb6c4dd-73b1-4b13-b776-d0f5372e3489","block_type":"box","text":"Fund so that it can meet redemption requests. If a security’s rating is reduced below the minimum","page_number":65,"box":{"x":117,"y":304,"width":729,"height":12}},{"id":"af0c8960-45d3-4db9-9458-f58fd1e99d0c","block_type":"box","text":"credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will consider whether the","page_number":65,"box":{"x":116,"y":320,"width":745,"height":12}},{"id":"454ecc98-926f-46f8-9fea-94b6a72220de","block_type":"box","text":"Fund should continue to hold the security.","page_number":65,"box":{"x":117,"y":335,"width":315,"height":12}},{"id":"0d4172de-ea7e-4638-a099-1b86412fd8da","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net","page_number":65,"box":{"x":117,"y":366,"width":718,"height":12}},{"id":"62910d9e-7b14-48e5-8e71-8f3b05766e8a","block_type":"box","text":"redemptions, the Fund could be forced to sell its holdings without regard to the investment merits,","page_number":65,"box":{"x":117,"y":382,"width":729,"height":12}},{"id":"60be65f3-59fc-4b51-8a32-2e9eb8aaee59","block_type":"box","text":"thereby decreasing the assets upon which the Fund’s rate of return is based.","page_number":65,"box":{"x":116,"y":397,"width":575,"height":12}},{"id":"33b5d0e2-16a2-4d61-9d02-1995837c368e","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons,","page_number":65,"box":{"x":116,"y":428,"width":733,"height":12}},{"id":"b0e9247a-c7f0-40fb-8e74-62729de039a5","block_type":"box","text":"such as higher investment research costs and higher commission costs.","page_number":65,"box":{"x":116,"y":444,"width":540,"height":12}},{"id":"68eaf1f5-4294-48d8-ab71-0f225d01a208","block_type":"box","text":"Mezzanine Investments.","page_number":65,"box":{"x":116,"y":475,"width":179,"height":9}},{"id":"b242dce8-f4cb-4306-9ae9-ed77f8edded6","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a","page_number":65,"box":{"x":297,"y":475,"width":579,"height":12}},{"id":"0173d84e-bc05-4361-94e1-c3835de7fd5e","block_type":"box","text":"specific credit quality, may invest in certain high yield securities known as mezzanine investments,","page_number":65,"box":{"x":116,"y":490,"width":735,"height":12}},{"id":"024bce30-dd94-4773-bc88-5137d1a43d92","block_type":"box","text":"which are subordinated debt securities which are generally issued in private placements in connection","page_number":65,"box":{"x":116,"y":506,"width":762,"height":12}},{"id":"65976bcc-e08a-4770-b932-981cd0cc546f","block_type":"box","text":"with an equity security (","page_number":65,"box":{"x":116,"y":521,"width":175,"height":12}},{"id":"9cafb11a-d0c9-4775-9b4b-bdb7e5da0eb7","block_type":"box","text":"e.g.","page_number":65,"box":{"x":292,"y":524,"width":26,"height":9}},{"id":"b5854767-998e-4fe2-9a05-732163e7b881","block_type":"box","text":", with attached warrants). Such mezzanine investments may be issued with","page_number":65,"box":{"x":321,"y":521,"width":563,"height":12}},{"id":"8a46b20e-ffac-4a61-ad10-8f0ed792ff42","block_type":"box","text":"or without registration rights. Similar to other high yield securities, maturities of mezzanine investments","page_number":65,"box":{"x":116,"y":537,"width":767,"height":12}},{"id":"08f218c1-66a0-4ea5-b1af-215b1ef6618d","block_type":"box","text":"are typically seven to ten years, but the expected average life is significantly shorter at three to five","page_number":65,"box":{"x":116,"y":552,"width":738,"height":12}},{"id":"b47d8b75-8422-41ba-b203-ed49bc96e8f2","block_type":"box","text":"years. Mezzanine investments are usually unsecured and subordinate to other obligations of the","page_number":65,"box":{"x":116,"y":568,"width":719,"height":12}},{"id":"1066ee13-31b3-463f-9578-e30e688cfd7c","block_type":"box","text":"issuer.","page_number":65,"box":{"x":117,"y":583,"width":53,"height":10}},{"id":"8304a697-c355-4f2a-a990-362a62937100","block_type":"box","text":"Pay-in-kind Bonds.","page_number":65,"box":{"x":116,"y":614,"width":139,"height":12}},{"id":"ed8bf1a5-9463-4a42-bc53-6e5483ccfd4f","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which","page_number":65,"box":{"x":257,"y":614,"width":631,"height":12}},{"id":"4f5f2836-8b8f-4605-b668-07babecf8e94","block_type":"box","text":"pay interest through the issuance of additional debt or equity securities. Similar to zero coupon","page_number":65,"box":{"x":117,"y":630,"width":706,"height":12}},{"id":"ef30831f-170a-4e97-b2bd-7d0618a0a3d4","block_type":"box","text":"obligations, pay-in-kind bonds also carry additional risk as holders of these types of securities realize","page_number":65,"box":{"x":116,"y":645,"width":753,"height":12}},{"id":"48bb9d4d-1c9f-4a14-b61a-9cd09182ce07","block_type":"box","text":"no cash until the cash payment date unless a portion of such securities is sold and, if the issuer","page_number":65,"box":{"x":117,"y":661,"width":707,"height":12}},{"id":"b8654e40-038b-4208-b7dc-1220e6e562a6","block_type":"box","text":"defaults, a Fund may obtain no return at all on its investment. The market price of pay-in-kind bonds is","page_number":65,"box":{"x":116,"y":676,"width":759,"height":12}},{"id":"2a702217-af47-4a51-bf46-d76d9bcbafd2","block_type":"box","text":"affected by interest rate changes to a greater extent, and therefore tends to be more volatile, than that","page_number":65,"box":{"x":116,"y":692,"width":758,"height":12}},{"id":"9e708cc3-5eff-4067-91b5-b297ec4b4b40","block_type":"box","text":"of securities which pay interest in cash. Additionally, current U.S. federal tax law requires the holder of","page_number":65,"box":{"x":116,"y":707,"width":759,"height":12}},{"id":"d2b10542-c24f-4848-b43e-63f66d84797d","block_type":"box","text":"pay-in-kind bonds to accrue income with respect to these securities prior to the receipt of cash","page_number":65,"box":{"x":117,"y":723,"width":698,"height":12}},{"id":"94eb4ca6-3f98-4703-9298-2811d92618b6","block_type":"box","text":"payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":65,"box":{"x":117,"y":738,"width":747,"height":12}},{"id":"67084550-137c-46cf-a26d-1bba609aee53","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect","page_number":65,"box":{"x":116,"y":754,"width":765,"height":12}},{"id":"de4fa815-a7cd-445d-8f90-6abc628f899f","block_type":"box","text":"to these securities and may have to dispose of portfolio securities under disadvantageous","page_number":65,"box":{"x":116,"y":769,"width":665,"height":12}},{"id":"2c63ec59-1d86-4ae3-935b-e309f98c9d13","block_type":"box","text":"circumstances in order to generate cash to satisfy these distribution requirements.","page_number":65,"box":{"x":116,"y":785,"width":608,"height":12}},{"id":"88a16fe2-fa4c-4518-b73a-650482d6e206","block_type":"box","text":"Supranational Entities.","page_number":65,"box":{"x":117,"y":816,"width":165,"height":12}},{"id":"7fc22fc2-7484-4895-b1fe-638e01607b3c","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of","page_number":65,"box":{"x":289,"y":816,"width":555,"height":12}},{"id":"dbbef35b-a402-4495-be59-2c070a80ad7f","block_type":"box","text":"such entities include the International Bank for Reconstruction and Development (the World Bank), the","page_number":65,"box":{"x":116,"y":831,"width":766,"height":12}},{"id":"4a4ba3e6-ca1c-42c3-bccc-03fe7d6b4cce","block_type":"box","text":"European Steel and Coal Community, the Asian Development Bank and the Inter-American","page_number":65,"box":{"x":117,"y":847,"width":683,"height":12}},{"id":"055374c6-50e8-4436-b997-7691847e3e81","block_type":"box","text":"Development Bank. The government members, or “stockholders,” usually make initial capital","page_number":65,"box":{"x":117,"y":862,"width":691,"height":12}},{"id":"3b201263-872c-426b-8bec-cd54f20c6658","block_type":"box","text":"contributions to the supranational entity and in many cases are committed to make additional capital","page_number":65,"box":{"x":116,"y":878,"width":748,"height":12}},{"id":"409a83d0-5d91-4525-8625-4021277cc507","block_type":"box","text":"II-15","page_number":65,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"da4bf465-e7d6-426c-8fa0-bd13d1d8de4c","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":65,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"d3951c41-c04c-46a0-95b3-c90048074f12","block_type":"box","text":"contributions if the supranational entity is unable to repay its borrowings. There is no guarantee that","page_number":66,"box":{"x":116,"y":87,"width":744,"height":12}},{"id":"cbd899af-3969-449f-8052-5adaeaa35023","block_type":"box","text":"one or more stockholders of a supranational entity will continue to make any necessary additional","page_number":66,"box":{"x":116,"y":102,"width":729,"height":13}},{"id":"e1567126-07d7-454b-ba6f-e00b6a8b705b","block_type":"box","text":"capital contributions. If such contributions are not made, the entity may be unable to pay interest or","page_number":66,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"1ff28676-2072-4c57-a55c-5a37a9b49e29","block_type":"box","text":"repay principal on its debt securities, and a Fund may lose money on such investments.","page_number":66,"box":{"x":117,"y":134,"width":655,"height":12}},{"id":"ff4aaa2b-a3ce-4a29-8895-9ff5e223288a","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":66,"box":{"x":116,"y":165,"width":367,"height":12}},{"id":"5b9bcf31-f24c-483e-b264-ab5d8974964d","block_type":"box","text":"Certain Funds may invest in the securities of foreign","page_number":66,"box":{"x":484,"y":165,"width":397,"height":12}},{"id":"9fca3569-078b-4ea2-850c-f7e62373ff88","block_type":"box","text":"issuers in the form of Depositary Receipts or other securities convertible into securities of foreign","page_number":66,"box":{"x":117,"y":180,"width":722,"height":12}},{"id":"682f3de4-a9c4-4f57-af30-5f9b3023ef63","block_type":"box","text":"issuers. Depositary Receipts may not necessarily be denominated in the same currency as the","page_number":66,"box":{"x":117,"y":196,"width":707,"height":12}},{"id":"c3cef26b-3852-47c1-b82a-9ddcb103a204","block_type":"box","text":"underlying securities into which they may be converted. The Fund may invest in both sponsored and","page_number":66,"box":{"x":117,"y":211,"width":749,"height":12}},{"id":"fdb5b29b-916c-4ce7-9043-4db9e076c85f","block_type":"box","text":"unsponsored American Depositary Receipts (“ADRs”), European Depositary Receipts (“EDRs”), Global","page_number":66,"box":{"x":117,"y":227,"width":769,"height":12}},{"id":"647a4908-b2ac-4190-90e6-119fd6553b62","block_type":"box","text":"Depositary Receipts (“GDRs”) and other similar global instruments. ADRs typically are issued by an","page_number":66,"box":{"x":117,"y":242,"width":743,"height":12}},{"id":"dcde1985-711a-4465-83d8-aaf6b459f580","block_type":"box","text":"American bank or trust company and evidence ownership of underlying securities issued by a foreign","page_number":66,"box":{"x":116,"y":258,"width":756,"height":12}},{"id":"7694aadd-ca5e-4f95-8c13-4f002e25b88e","block_type":"box","text":"corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are receipts","page_number":66,"box":{"x":116,"y":273,"width":757,"height":12}},{"id":"29547799-6af6-42d5-8125-fbd0180bcfbd","block_type":"box","text":"issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either","page_number":66,"box":{"x":117,"y":289,"width":739,"height":12}},{"id":"22b25cfd-b9c6-4553-9649-01b5df80b024","block_type":"box","text":"foreign or domestic underlying securities. GDRs are depositary receipts structured like global debt","page_number":66,"box":{"x":116,"y":304,"width":732,"height":12}},{"id":"071350b9-e1f7-479f-a8be-1ad64d31e12a","block_type":"box","text":"issues to facilitate trading on an international basis. In addition to investment risks associated with the","page_number":66,"box":{"x":117,"y":320,"width":758,"height":12}},{"id":"3e8755c8-3e18-4851-8138-db77a4126c5a","block_type":"box","text":"underlying issuer, Depositary Receipts expose a Fund to additional risks associated with the","page_number":66,"box":{"x":117,"y":335,"width":689,"height":12}},{"id":"ebb612de-6f9c-4948-90b3-c8bb2c7ae259","block_type":"box","text":"non-uniform terms that apply to Depositary Receipt programs, credit exposure to the depository bank","page_number":66,"box":{"x":117,"y":351,"width":754,"height":12}},{"id":"2fee0c89-6e5d-4843-b1d7-db13adf7dc68","block_type":"box","text":"and to the sponsors and other parties with whom the depository bank establishes the programs,","page_number":66,"box":{"x":116,"y":366,"width":716,"height":12}},{"id":"ffa93fbc-89a6-45ca-9dfa-fd04be0e8842","block_type":"box","text":"currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR, EDR and","page_number":66,"box":{"x":116,"y":382,"width":748,"height":12}},{"id":"a025044f-22cb-426a-a195-1aa6a6fff014","block_type":"box","text":"GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":66,"box":{"x":117,"y":397,"width":771,"height":12}},{"id":"d4003b9e-803b-47ed-9dd6-390e467ff43b","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored","page_number":66,"box":{"x":116,"y":413,"width":701,"height":12}},{"id":"d3355aa9-a1df-4875-a934-6ee4366108f6","block_type":"box","text":"programs and do not provide holders with many of the shareholder benefits that come from investing in","page_number":66,"box":{"x":117,"y":428,"width":769,"height":12}},{"id":"a2785583-649c-47b7-bc61-ec0c81d8dfd4","block_type":"box","text":"a sponsored Depositary Receipt. Available information concerning the issuer may not be as current as","page_number":66,"box":{"x":116,"y":444,"width":764,"height":12}},{"id":"a09128af-2b67-4c5d-aa24-d11f014e3320","block_type":"box","text":"for sponsored ADRs, EDRs and GDRs, and the prices of unsponsored ADRs, EDRs and GDRs may","page_number":66,"box":{"x":116,"y":459,"width":750,"height":12}},{"id":"85bd7d6a-3e31-4bf4-9149-73d1e163013c","block_type":"box","text":"be more volatile than if such instruments were sponsored by the issuer. Depositary Receipts are","page_number":66,"box":{"x":117,"y":475,"width":718,"height":12}},{"id":"31d67e94-f27c-4401-9048-bfbc96c62b66","block_type":"box","text":"generally subject to the same risks as the foreign securities that they evidence or into which they may","page_number":66,"box":{"x":116,"y":490,"width":759,"height":12}},{"id":"58bd5fe1-a93c-4463-81cd-554fe75c7389","block_type":"box","text":"be converted. Investments in ADRs, EDRs and GDRs present additional investment considerations as","page_number":66,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"9de64988-95ed-4502-a695-de3a8c029017","block_type":"box","text":"described under “Foreign Investment Risks.”","page_number":66,"box":{"x":116,"y":521,"width":336,"height":12}},{"id":"f0e38293-12af-4159-bf4f-8921841db18b","block_type":"box","text":"Derivatives.","page_number":66,"box":{"x":116,"y":560,"width":99,"height":9}},{"id":"0485dbfb-9e1d-445e-bdc3-f709895ce505","block_type":"box","text":"General.","page_number":66,"box":{"x":117,"y":583,"width":68,"height":10}},{"id":"2d331e83-00e0-4c90-bd65-d6910a9034c6","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments","page_number":66,"box":{"x":186,"y":583,"width":675,"height":12}},{"id":"d99299d4-86cb-416c-a4a9-8ef00a25a101","block_type":"box","text":"that derive their value from one or more securities, commodities (such as gold or oil), currencies,","page_number":66,"box":{"x":116,"y":599,"width":722,"height":12}},{"id":"53faf8c0-6d1a-40a8-a676-cb2a8b407d1c","block_type":"box","text":"interest rates, credit events or indices (a measure of value or rates, such as the S&P 500 Index or the","page_number":66,"box":{"x":117,"y":614,"width":758,"height":12}},{"id":"afa8b6c6-114b-4a88-9b6c-9c3f7085a4b9","block_type":"box","text":"prime lending rate) or other reference asset. Derivatives may allow a Fund to increase or decrease the","page_number":66,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"58d8e5d7-b70b-4a41-a98b-9fb69bad1883","block_type":"box","text":"level of risk to which the Fund is exposed more quickly and efficiently than with other transactions.","page_number":66,"box":{"x":117,"y":645,"width":732,"height":12}},{"id":"9f016b16-4e7a-4e48-8b5d-94e8862bab7e","block_type":"box","text":"Certain Funds may use derivatives to maintain a portion of their long and short positions. Unless","page_number":66,"box":{"x":117,"y":661,"width":714,"height":12}},{"id":"53d599db-01c3-4104-8ab8-a4af1ed67924","block_type":"box","text":"otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset class it is","page_number":66,"box":{"x":116,"y":676,"width":724,"height":12}},{"id":"2207b00b-7b69-4f93-8408-2d3bde6f2c53","block_type":"box","text":"prohibited by its investment restrictions from purchasing directly. As described below, derivatives can","page_number":66,"box":{"x":117,"y":692,"width":748,"height":12}},{"id":"2213454c-df03-464c-8753-3eed615b0e98","block_type":"box","text":"be used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":66,"box":{"x":117,"y":707,"width":747,"height":12}},{"id":"69ff86b7-43fc-4d69-a8fc-dea4e4f684ee","block_type":"box","text":"i.e.","page_number":66,"box":{"x":116,"y":723,"width":20,"height":9}},{"id":"8b3b1ae8-06d7-450e-8003-18577fa7cf47","block_type":"box","text":", the payment obligations of derivatives contracts are netted against one another with the Fund","page_number":66,"box":{"x":140,"y":723,"width":701,"height":12}},{"id":"776113aa-9937-426b-af8c-358a82147f73","block_type":"box","text":"receiving or paying, as the case may be, only the net amount of the two payment streams.","page_number":66,"box":{"x":117,"y":738,"width":667,"height":12}},{"id":"e3fba8e3-ddbe-45e0-9182-c77f9a844e7a","block_type":"box","text":"Hedging.","page_number":66,"box":{"x":116,"y":769,"width":65,"height":12}},{"id":"94e5ed7b-d532-47ed-9a44-2be09e91d2cd","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset","page_number":66,"box":{"x":189,"y":769,"width":680,"height":12}},{"id":"c890addb-ceca-4dfb-b3d5-2835b6f7c581","block_type":"box","text":"the risks associated with other Fund holdings. Losses on other investments may be substantially","page_number":66,"box":{"x":116,"y":785,"width":716,"height":12}},{"id":"91e49962-cc09-4993-b296-a01e8fd58363","block_type":"box","text":"reduced by gains on a derivative that reacts in an opposite manner to market movements. Although","page_number":66,"box":{"x":117,"y":800,"width":737,"height":12}},{"id":"e89b1519-fcb8-479f-b706-001c88233c10","block_type":"box","text":"hedging may reduce losses, it may also reduce or eliminate gains. In addition, hedging may cause","page_number":66,"box":{"x":117,"y":816,"width":728,"height":12}},{"id":"e7d42670-9d6f-4479-b9ab-f408a0844faa","block_type":"box","text":"losses if the market moves in an unanticipated manner, or if the cost of the derivative outweighs the","page_number":66,"box":{"x":117,"y":831,"width":744,"height":12}},{"id":"e4d1f6bc-2aef-49eb-9476-2ec3e13ac14f","block_type":"box","text":"benefit of the hedge. The effectiveness of hedging may be reduced by correlation risk,","page_number":66,"box":{"x":117,"y":847,"width":643,"height":12}},{"id":"600ebc54-9e0b-4c4e-a719-b10cc7ae7821","block_type":"box","text":"i.e.","page_number":66,"box":{"x":761,"y":847,"width":20,"height":9}},{"id":"06c2308b-aaeb-442e-996a-6e2efeef5c57","block_type":"box","text":",","page_number":66,"box":{"x":784,"y":855,"width":2,"height":3}},{"id":"08066494-fd58-4f91-bb31-a4e551bf5344","block_type":"box","text":"the risk that","page_number":66,"box":{"x":793,"y":847,"width":91,"height":9}},{"id":"ffed2683-e4f5-406f-bbc2-335a0bd5ccff","block_type":"box","text":"changes in the value of the derivative will not match those of the holdings being hedged as expected","page_number":66,"box":{"x":116,"y":862,"width":751,"height":12}},{"id":"72500d53-0ef6-4770-8d5e-bd0373c23653","block_type":"box","text":"by a Fund, which may result in additional losses to the Fund. The inability to close or offset derivatives","page_number":66,"box":{"x":117,"y":878,"width":762,"height":12}},{"id":"3a7aad2e-07c1-42d3-8fee-53ccb524d097","block_type":"box","text":"II-16","page_number":66,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"91e485e3-eea5-4d2d-9089-b56271d0b354","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":66,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"8bc7c544-40d5-42c0-84c9-9a4f07461fa0","block_type":"box","text":"could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging","page_number":67,"box":{"x":116,"y":87,"width":762,"height":12}},{"id":"42125182-4c6f-4b47-9509-ce7a74164f19","block_type":"box","text":"will be effective. No Fund is required to use derivatives to hedge.","page_number":67,"box":{"x":116,"y":102,"width":486,"height":13}},{"id":"abdb1126-f4e1-4c5d-8d6a-3c99699ef420","block_type":"box","text":"Speculation.","page_number":67,"box":{"x":117,"y":131,"width":90,"height":12}},{"id":"31ae849a-422c-4232-8b3e-dbdfeb16d665","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance","page_number":67,"box":{"x":208,"y":131,"width":638,"height":12}},{"id":"f93e9e72-cd53-43c5-a311-2d73ba834924","block_type":"box","text":"returns. The use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather","page_number":67,"box":{"x":117,"y":146,"width":753,"height":12}},{"id":"cd18e3e2-3f6a-4bc1-948c-049755f6c455","block_type":"box","text":"than offset the risk of other positions. To the extent a Fund invests in a derivative for speculative","page_number":67,"box":{"x":116,"y":162,"width":719,"height":12}},{"id":"b24f969c-ccc9-447d-b1ce-26aa7724d3df","block_type":"box","text":"purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be","page_number":67,"box":{"x":117,"y":177,"width":769,"height":12}},{"id":"d9970b1a-f5ea-4f47-9e19-2cfd5b138e25","block_type":"box","text":"greater than the derivative’s cost, and the potential for loss in certain cases may be unlimited.","page_number":67,"box":{"x":116,"y":193,"width":699,"height":12}},{"id":"96f45cfc-db80-41b0-bd53-1e024a66c0ef","block_type":"box","text":"Regulation of Derivatives.","page_number":67,"box":{"x":116,"y":227,"width":196,"height":12}},{"id":"9f5aa2c7-54a9-4344-a5d1-1f3b157e73f5","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":67,"box":{"x":116,"y":249,"width":352,"height":12}},{"id":"d8a8aaa5-5969-4f8e-93f7-e0d54f299bf9","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits","page_number":67,"box":{"x":469,"y":249,"width":416,"height":12}},{"id":"74426676-44f8-408d-b0ee-1f1a6d6b0146","block_type":"box","text":"a Fund to enter into Derivatives Transactions (as defined below) and certain other transactions","page_number":67,"box":{"x":116,"y":265,"width":708,"height":12}},{"id":"5db3740e-9c3e-4c07-916e-d19b61ca4dcb","block_type":"box","text":"notwithstanding the restrictions on the issuance of “senior securities” under Section 18 of the","page_number":67,"box":{"x":117,"y":280,"width":692,"height":12}},{"id":"bb16ec40-1c21-4337-8e0c-9f0605e72847","block_type":"box","text":"Investment Company Act. Section 18 of the Investment Company Act, among other things, prohibits","page_number":67,"box":{"x":117,"y":296,"width":747,"height":12}},{"id":"8aa4ba51-aa75-4b22-b774-084b2218caba","block_type":"box","text":"open-end funds, including the Funds, from issuing or selling any “senior security,” other than borrowing","page_number":67,"box":{"x":116,"y":311,"width":769,"height":12}},{"id":"442501a0-f5c9-4cf2-b528-6c7e1ec9d989","block_type":"box","text":"from a bank (subject to a requirement to maintain 300% “asset coverage”).","page_number":67,"box":{"x":116,"y":327,"width":560,"height":12}},{"id":"a5216b47-bb34-4495-b3c7-9778f0856f68","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap","page_number":67,"box":{"x":117,"y":355,"width":761,"height":12}},{"id":"f896a63a-5d1d-49aa-8b70-134963877787","block_type":"box","text":"(including a contract for differences), futures contract, forward contract, option (excluding purchased","page_number":67,"box":{"x":117,"y":370,"width":747,"height":13}},{"id":"d759ae9e-933e-49a3-b092-f1fa7d9ac46b","block_type":"box","text":"options), any combination of the foregoing, or any similar instrument, under which a Fund is or may be","page_number":67,"box":{"x":116,"y":386,"width":764,"height":12}},{"id":"a5ba0d41-119c-470f-aeff-b2b9b6af19fe","block_type":"box","text":"required to make any payment or delivery of cash or other assets during the life of the instrument or at","page_number":67,"box":{"x":117,"y":401,"width":763,"height":13}},{"id":"1a4f6d17-13eb-4d3c-9e22-0716d911b889","block_type":"box","text":"maturity or early termination, whether as margin or settlement payment or otherwise; (2) any short sale","page_number":67,"box":{"x":117,"y":417,"width":767,"height":12}},{"id":"8733d070-5199-4679-876d-bebdd2506320","block_type":"box","text":"borrowing; (3) reverse repurchase agreements and similar financing transactions (e.g., recourse and","page_number":67,"box":{"x":117,"y":432,"width":750,"height":13}},{"id":"86fd1999-bb85-4b2d-9f5b-9e2682b36db9","block_type":"box","text":"non-recourse tender option bonds, and borrowed bonds), if a Fund elects to treat all of these","page_number":67,"box":{"x":117,"y":448,"width":691,"height":12}},{"id":"e27aa081-325e-413a-b167-702d1bbb9178","block_type":"box","text":"transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":67,"box":{"x":116,"y":463,"width":738,"height":13}},{"id":"0c7bad8b-6f6a-41b2-9941-72e6f4df0e65","block_type":"box","text":"securities (e.g., firm and standby commitments, including to-be-announced (“TBA”) commitments, and","page_number":67,"box":{"x":116,"y":479,"width":763,"height":12}},{"id":"93f5b810-ddbf-47a1-8a5d-b1b6fae8e0cc","block_type":"box","text":"dollar rolls) and non-standard settlement cycle securities, unless such transactions meet the Delayed","page_number":67,"box":{"x":116,"y":494,"width":755,"height":13}},{"id":"3053f0b1-0cef-4875-9dac-7525fced9e18","block_type":"box","text":"Settlement Securities Provision (as defined below under “—When-Issued Securities, Delayed Delivery","page_number":67,"box":{"x":116,"y":510,"width":763,"height":12}},{"id":"322b3341-7dbf-4e00-ba27-163200c79a5b","block_type":"box","text":"Securities and Forward Commitments”).","page_number":67,"box":{"x":116,"y":525,"width":302,"height":13}},{"id":"e7fb76aa-437f-46be-ac15-299a3ea43f5f","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must","page_number":67,"box":{"x":117,"y":554,"width":759,"height":12}},{"id":"06e52b54-0461-4df5-bdb5-0782452fd7cd","block_type":"box","text":"comply with Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things,","page_number":67,"box":{"x":116,"y":569,"width":744,"height":12}},{"id":"c9c2b206-0c1a-4575-9486-74a9c12ed2a3","block_type":"box","text":"requires a Fund to adopt and implement a comprehensive written derivatives risk management","page_number":67,"box":{"x":117,"y":585,"width":708,"height":12}},{"id":"de6dd026-3963-4c6b-8f81-3321986c5070","block_type":"box","text":"program (“DRMP”) and comply with a relative or absolute limit on Fund leverage risk calculated based","page_number":67,"box":{"x":117,"y":600,"width":761,"height":12}},{"id":"32244336-0d67-4327-a4f7-7621e462d311","block_type":"box","text":"on value-at-risk (“VaR”). The DRMP is administered by a “derivatives risk manager,” who is appointed","page_number":67,"box":{"x":116,"y":616,"width":760,"height":12}},{"id":"844c0e4b-9676-4f64-b0b9-77e6afe92f8d","block_type":"box","text":"by the Fund’s Board, including a majority of the independent Directors, and periodically reviews the","page_number":67,"box":{"x":117,"y":631,"width":739,"height":12}},{"id":"4cecf3c1-6245-4135-a376-1272d0ade492","block_type":"box","text":"DRMP and reports to the Fund’s Board.","page_number":67,"box":{"x":117,"y":647,"width":299,"height":12}},{"id":"98cc76fa-d749-4c83-bb24-69bbed1aa636","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":67,"box":{"x":117,"y":675,"width":758,"height":12}},{"id":"6c8c1834-cb6e-4663-8d4d-74a465f44793","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4)","page_number":67,"box":{"x":116,"y":690,"width":754,"height":13}},{"id":"c1ab5d13-acb9-42d6-8f20-493c0ce27834","block_type":"box","text":"and the Fund adopts and implements written policies and procedures reasonably designed to manage","page_number":67,"box":{"x":116,"y":706,"width":758,"height":12}},{"id":"b1433cda-a6e1-4a14-abd2-27e8161e3588","block_type":"box","text":"its derivatives risks (the “Limited Derivatives User Exception”).","page_number":67,"box":{"x":117,"y":721,"width":459,"height":13}},{"id":"e69e8937-015b-4f9f-b161-e39cb6a657f2","block_type":"box","text":"Dodd-Frank Regulations","page_number":67,"box":{"x":116,"y":756,"width":182,"height":12}},{"id":"cecea221-9327-44f4-981b-8cae91ddaf61","block_type":"box","text":". The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd","page_number":67,"box":{"x":299,"y":756,"width":564,"height":12}},{"id":"0c4f2baa-8540-454e-91b0-0ac1bed06795","block_type":"box","text":"Frank”), enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter","page_number":67,"box":{"x":117,"y":772,"width":754,"height":12}},{"id":"714db4f9-f215-4bce-a755-4541dc5c4d42","block_type":"box","text":"(“OTC”) derivatives markets for the first time. While the Commodity Futures Trading Commission","page_number":67,"box":{"x":117,"y":787,"width":716,"height":12}},{"id":"f9444e4c-2dec-4cfe-8c07-41bf86381ead","block_type":"box","text":"(“CFTC”) and other U.S. regulators have adopted many of the required Dodd-Frank regulations, certain","page_number":67,"box":{"x":117,"y":803,"width":764,"height":12}},{"id":"9e8734e2-5ff9-4eef-a8e0-88fa72e0c92e","block_type":"box","text":"regulations have only recently become effective and other regulations remain to be adopted. The full","page_number":67,"box":{"x":117,"y":818,"width":743,"height":12}},{"id":"d11ad1ac-0f15-489a-99be-b63255a13e89","block_type":"box","text":"impact of Dodd-Frank on the Funds remains uncertain.","page_number":67,"box":{"x":117,"y":834,"width":411,"height":12}},{"id":"9947cb94-083b-4ab9-975d-6ea818cc3538","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the","page_number":67,"box":{"x":117,"y":862,"width":770,"height":12}},{"id":"dbb21c8c-704d-48b0-9266-dc9abdb875e2","block_type":"box","text":"SEC as “security-based swap dealers”. Registered swap dealers and security-based swap dealers are","page_number":67,"box":{"x":116,"y":877,"width":765,"height":12}},{"id":"f93d7099-031a-4a16-92e6-d778c8d26ceb","block_type":"box","text":"II-17","page_number":67,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"319e5921-ce42-47bb-97c6-50b209b9bd00","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":67,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"1a88f468-2694-4113-a90d-04405cd467e8","block_type":"box","text":"subject to various regulatory requirements, including, but not limited to, margin, recordkeeping,","page_number":68,"box":{"x":116,"y":87,"width":708,"height":12}},{"id":"c20eec10-5c38-4279-b1a7-ec7005be4924","block_type":"box","text":"reporting, transparency, position limits, limitations on conflicts of interest, business conduct standards,","page_number":68,"box":{"x":117,"y":102,"width":761,"height":13}},{"id":"11a49a1f-ce01-41d6-bea0-bed73f0dbafb","block_type":"box","text":"minimum capital requirements and other regulatory requirements, which indirectly impact the Funds","page_number":68,"box":{"x":117,"y":118,"width":743,"height":12}},{"id":"227bbebd-b65a-46ab-9086-d4fd9b1a218d","block_type":"box","text":"that enter into transactions with them.","page_number":68,"box":{"x":116,"y":134,"width":284,"height":9}},{"id":"4416d148-665f-44d8-803f-8f92b07e8160","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed","page_number":68,"box":{"x":116,"y":165,"width":761,"height":11}},{"id":"408ade23-8a83-455a-88f9-ead3fca7ca75","block_type":"box","text":"in regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also","page_number":68,"box":{"x":117,"y":180,"width":719,"height":12}},{"id":"596626cb-053e-423e-87ee-1362760b5978","block_type":"box","text":"expected to impose similar requirements on certain security-based derivatives in the future. OTC","page_number":68,"box":{"x":116,"y":196,"width":723,"height":12}},{"id":"90f54450-ebe8-4257-b204-2d8cef710a11","block_type":"box","text":"derivatives trades submitted for clearing are subject to minimum initial and variation margin","page_number":68,"box":{"x":116,"y":211,"width":681,"height":12}},{"id":"47cc9247-475f-4777-b955-c6243fc09193","block_type":"box","text":"requirements set by the relevant clearinghouse, as well as margin requirements mandated by the","page_number":68,"box":{"x":117,"y":227,"width":726,"height":12}},{"id":"b8d996fe-62dc-412b-b45a-07984a207cdd","block_type":"box","text":"CFTC, SEC and/or federal prudential regulators. In addition, futures commission merchants (“FCMs”),","page_number":68,"box":{"x":117,"y":242,"width":760,"height":12}},{"id":"7b2702d5-6190-4d06-bf5c-49afe2d652dc","block_type":"box","text":"who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":68,"box":{"x":116,"y":258,"width":697,"height":12}},{"id":"faf25fd9-f5d2-449c-b367-1f400e282731","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond","page_number":68,"box":{"x":116,"y":273,"width":772,"height":12}},{"id":"148168a7-a1f0-405d-9289-7a33a524f048","block_type":"box","text":"any regulatory and clearinghouse minimums subject to any restrictions on such discretion in the","page_number":68,"box":{"x":116,"y":289,"width":715,"height":12}},{"id":"11ce4ecf-8472-4032-aca7-bb9e9a941b2d","block_type":"box","text":"documentation between the FCM and the customer. These regulatory requirements may make it more","page_number":68,"box":{"x":116,"y":304,"width":764,"height":12}},{"id":"9d49026e-9b36-4845-bca7-48eb91738a34","block_type":"box","text":"difficult and costly for the Funds to enter into highly tailored or customized transactions, potentially","page_number":68,"box":{"x":116,"y":320,"width":733,"height":12}},{"id":"c2cc69e6-9224-4384-8814-dd108797539d","block_type":"box","text":"rendering certain investment strategies impossible or not economically feasible. If a Fund decides to","page_number":68,"box":{"x":117,"y":335,"width":747,"height":12}},{"id":"fed0360e-3d0f-4b69-806b-8bb21190610c","block_type":"box","text":"execute and clear cleared OTC derivatives and/or futures contracts through execution facilities,","page_number":68,"box":{"x":116,"y":351,"width":712,"height":12}},{"id":"d93ebef8-9144-48bc-b2dd-ed9ef405e5bd","block_type":"box","text":"exchanges or clearinghouses, either indirectly through an executing broker, clearing member FCM or","page_number":68,"box":{"x":116,"y":366,"width":756,"height":12}},{"id":"7eb0194b-c498-4af7-be64-5525112b36e5","block_type":"box","text":"as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":68,"box":{"x":116,"y":382,"width":709,"height":12}},{"id":"583594e9-46cc-4b18-bc54-22648a9fd3ef","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":68,"box":{"x":116,"y":397,"width":397,"height":12}},{"id":"5a94521e-84b0-4b80-8dc8-b88d83284406","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not","page_number":68,"box":{"x":116,"y":428,"width":753,"height":12}},{"id":"bb0406a4-53dd-4431-9c95-29ee856a0c0e","block_type":"box","text":"face a clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/","page_number":68,"box":{"x":116,"y":444,"width":759,"height":12}},{"id":"a1cc3176-7afc-46a4-ba86-8e268fe8e1ba","block_type":"box","text":"or SEC and that acts as a clearing member. A Fund may face the indirect risk of the failure of another","page_number":68,"box":{"x":116,"y":459,"width":759,"height":12}},{"id":"f4e34525-3e89-48b9-87e6-d415a28583e1","block_type":"box","text":"clearing member customer to meet its obligations to its clearing member. Such scenario could arise","page_number":68,"box":{"x":116,"y":475,"width":744,"height":12}},{"id":"947b1ef4-1904-4498-830e-ee46414e4355","block_type":"box","text":"due to a default by the clearing member on its obligations to the clearinghouse simultaneously with a","page_number":68,"box":{"x":116,"y":490,"width":752,"height":12}},{"id":"ed015e98-10b6-4e85-84db-e670237c5b62","block_type":"box","text":"customer’s failure to meet its obligations to the clearing member.","page_number":68,"box":{"x":116,"y":506,"width":485,"height":12}},{"id":"757bb4c4-d9ab-4964-be69-bff72367cfaf","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they","page_number":68,"box":{"x":117,"y":537,"width":742,"height":12}},{"id":"e3167b19-5abc-4af7-be2f-c8b8dbed766e","block_type":"box","text":"clear their customers’ cleared OTC derivatives and futures contracts, instead of using such initial","page_number":68,"box":{"x":116,"y":552,"width":722,"height":12}},{"id":"dee0436f-f74d-44c3-86e7-11ebbd30c8bc","block_type":"box","text":"margin in their businesses, as was widely permitted for OTC derivatives before Dodd-Frank. While an","page_number":68,"box":{"x":117,"y":568,"width":757,"height":12}},{"id":"b7e0f4c9-1910-4ce8-89d9-27329110e101","block_type":"box","text":"FCM may require its customer to post initial margin in excess of clearinghouse requirements, and","page_number":68,"box":{"x":117,"y":583,"width":727,"height":12}},{"id":"956edfaa-fa80-4f44-a831-2565afd7e0bc","block_type":"box","text":"certain clearinghouses may share a portion of their earnings on initial margin with their clearing","page_number":68,"box":{"x":116,"y":599,"width":710,"height":12}},{"id":"f14a82d7-3168-415c-852d-d1840e930ba8","block_type":"box","text":"members, some portion of the initial margin that is passed through to the clearinghouse does not","page_number":68,"box":{"x":117,"y":614,"width":722,"height":12}},{"id":"b3daa2c7-f3f5-4f87-909f-860f2968f573","block_type":"box","text":"generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on initial","page_number":68,"box":{"x":116,"y":630,"width":722,"height":12}},{"id":"3877a1d5-3ea3-40a8-8393-1cd3e86bf24e","block_type":"box","text":"margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives","page_number":68,"box":{"x":117,"y":645,"width":739,"height":12}},{"id":"0eb7be2e-fbe1-48aa-b126-16fa822e16c0","block_type":"box","text":"may cause FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives","page_number":68,"box":{"x":117,"y":661,"width":747,"height":12}},{"id":"95d2f402-2816-4ab9-aacf-f60f6cad976a","block_type":"box","text":"than swap dealers will provide for non-cleared OTC derivatives. Furthermore, customers, including the","page_number":68,"box":{"x":116,"y":676,"width":760,"height":12}},{"id":"5e8b6ebe-e9e6-4b4c-b8d8-82c025be1233","block_type":"box","text":"Funds, are subject to additional fees payable to FCMs with respect to cleared OTC derivatives, which","page_number":68,"box":{"x":117,"y":692,"width":751,"height":12}},{"id":"e8077c46-67fa-4f36-969d-d2eda203d09e","block_type":"box","text":"may raise the cost to Funds of clearing as compared to trading non-cleared OTC derivatives bilaterally.","page_number":68,"box":{"x":117,"y":707,"width":763,"height":12}},{"id":"aedf07aa-338d-47a6-b8aa-bdc3a72305bf","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are","page_number":68,"box":{"x":116,"y":738,"width":710,"height":12}},{"id":"e5f3b4d5-1a3f-439b-ae89-03bee87aad08","block_type":"box","text":"required to exchange variation margin with a Fund and may be required by applicable regulations to","page_number":68,"box":{"x":117,"y":754,"width":740,"height":12}},{"id":"4a4bc5e0-e053-42f0-95bf-4999f54e6a95","block_type":"box","text":"collect (and in some cases exchange) initial margin with a Fund. Both initial and variation margin may","page_number":68,"box":{"x":116,"y":769,"width":752,"height":12}},{"id":"c65059c3-9dbe-41e5-a427-9bf1c5316c1b","block_type":"box","text":"be comprised of cash and/or securities, subject to applicable regulatory haircuts and other restrictions.","page_number":68,"box":{"x":117,"y":785,"width":757,"height":12}},{"id":"c3b9bfa7-b39f-46de-8e6a-957a9dc3dffc","block_type":"box","text":"Shares of investment companies (other than certain money market funds) may not be posted as","page_number":68,"box":{"x":116,"y":800,"width":713,"height":12}},{"id":"16dfb269-a4fe-44fe-b50d-056881f88bc7","block_type":"box","text":"collateral under applicable regulations.","page_number":68,"box":{"x":116,"y":816,"width":285,"height":12}},{"id":"f7b64530-439a-4762-8086-5d96681a9842","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to","page_number":68,"box":{"x":116,"y":847,"width":760,"height":12}},{"id":"74c1a36f-bc56-4dd6-b38a-291f56cf8814","block_type":"box","text":"evaluate and monitor) speculative position limits (“position limits”) on the maximum speculative position","page_number":68,"box":{"x":116,"y":862,"width":771,"height":12}},{"id":"c6f47200-4796-46b9-a736-711976b7ff46","block_type":"box","text":"which any person, or group of persons acting in concert, may hold or control in particular contracts. In","page_number":68,"box":{"x":116,"y":878,"width":759,"height":12}},{"id":"3e2593cd-f35b-4b5a-a65e-e3cf40afea29","block_type":"box","text":"II-18","page_number":68,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"0caef4aa-1882-4996-b791-41a614a785b6","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":68,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"fb950162-8419-4396-9035-969096971520","block_type":"box","text":"addition, U.S. federal position limits apply to swaps that are economically equivalent to futures","page_number":69,"box":{"x":116,"y":87,"width":703,"height":12}},{"id":"799f12b7-5bd0-45c2-9967-d40d34e54311","block_type":"box","text":"contracts on certain agricultural, metals and energy commodities. All positions owned or controlled by","page_number":69,"box":{"x":116,"y":103,"width":758,"height":12}},{"id":"80dd5829-44ab-4994-b960-59a5cbbb307d","block_type":"box","text":"the same person or entity, even if in different accounts, must be aggregated for purposes of complying","page_number":69,"box":{"x":116,"y":118,"width":766,"height":12}},{"id":"1d140997-feed-402c-ad5c-a61891e9cb90","block_type":"box","text":"with the speculative limits. Thus, even if a Fund does not intend to exceed applicable position limits, it","page_number":69,"box":{"x":116,"y":134,"width":758,"height":11}},{"id":"009affb6-cf83-42bf-9fa6-6619479a9f6f","block_type":"box","text":"is possible that different clients managed by the Manager and its affiliates may be aggregated for this","page_number":69,"box":{"x":117,"y":149,"width":755,"height":12}},{"id":"8ad67de1-2d3f-4488-ba91-5b2897c6832f","block_type":"box","text":"purpose. Therefore, the trading decisions of the Manager may have to be modified and positions held","page_number":69,"box":{"x":117,"y":165,"width":757,"height":12}},{"id":"876f5ad3-b85a-4fc0-9813-2e1227752c37","block_type":"box","text":"by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions","page_number":69,"box":{"x":117,"y":180,"width":757,"height":12}},{"id":"b96f7da4-ebbd-4e1b-840a-de59be8f8c7c","block_type":"box","text":"or the elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A","page_number":69,"box":{"x":116,"y":196,"width":723,"height":12}},{"id":"fe63b243-d433-46c0-88f5-9f5cc4dbd570","block_type":"box","text":"violation of position limits could also lead to regulatory action materially adverse to a Fund’s investment","page_number":69,"box":{"x":116,"y":211,"width":770,"height":12}},{"id":"3604777a-6e38-4085-8414-f433af5768ca","block_type":"box","text":"strategy. A Fund may also be affected by other regimes, including those of the European Union and","page_number":69,"box":{"x":116,"y":227,"width":746,"height":12}},{"id":"90211429-44a3-48c1-930b-28edeafc18bf","block_type":"box","text":"United Kingdom, and trading venues that impose position limits on commodity derivative contracts.","page_number":69,"box":{"x":117,"y":242,"width":737,"height":12}},{"id":"42543906-8c43-4869-8041-61cefe6e75ac","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":69,"box":{"x":115,"y":273,"width":269,"height":12}},{"id":"c42d6524-9dcd-4a26-bb69-8859089455eb","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed,","page_number":69,"box":{"x":386,"y":273,"width":489,"height":12}},{"id":"51c5fa2e-e30d-44b2-8140-d941f5efb76d","block_type":"box","text":"or may propose in the future, legislation similar to Dodd-Frank or other legislation that could increase","page_number":69,"box":{"x":116,"y":289,"width":753,"height":12}},{"id":"9f9a6787-5520-4259-b11b-27f355c4fe25","block_type":"box","text":"the costs of participating in, or otherwise adversely impact the liquidity of, participating in the","page_number":69,"box":{"x":116,"y":304,"width":689,"height":12}},{"id":"2e3404ca-b6ac-46de-aa24-1156f61fa1c3","block_type":"box","text":"commodities markets. For example, the European Market Infrastructure Regulation (Regulation (EU)","page_number":69,"box":{"x":116,"y":320,"width":752,"height":12}},{"id":"93aa7cf9-5e94-4c70-9a9a-bfc9746c55f8","block_type":"box","text":"No 648/2012) (“EMIR”) introduced certain requirements in respect of OTC derivatives including:(i) the","page_number":69,"box":{"x":117,"y":335,"width":757,"height":12}},{"id":"9079e7f4-5bd2-443c-9234-076d0fcdb273","block_type":"box","text":"mandatory clearing of OTC derivative contracts declared subject to the clearing obligation; (ii) risk","page_number":69,"box":{"x":117,"y":351,"width":728,"height":12}},{"id":"dcc58a73-b386-4cce-a723-c2dc30636164","block_type":"box","text":"mitigation techniques in respect of uncleared OTC derivative contracts, including the mandatory","page_number":69,"box":{"x":117,"y":366,"width":714,"height":12}},{"id":"a5352c6c-08be-43fc-a3f3-e087c05c6b85","block_type":"box","text":"margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping requirements in","page_number":69,"box":{"x":117,"y":382,"width":765,"height":12}},{"id":"a782a964-1b67-4aa8-86bc-48c2b7477e6a","block_type":"box","text":"respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":69,"box":{"x":117,"y":397,"width":703,"height":12}},{"id":"7bcf0022-338e-4716-aba5-2ac37df3118c","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments","page_number":69,"box":{"x":117,"y":413,"width":688,"height":12}},{"id":"f2ae1451-153d-440d-9833-00a4e0ce891f","block_type":"box","text":"Regulation (Regulation (EU) No 600/2014) (together “MiFID II”), which have applied since January 3,","page_number":69,"box":{"x":117,"y":428,"width":753,"height":12}},{"id":"fbfd8198-c3b8-429b-b7fa-4e9229252409","block_type":"box","text":"2018, govern the provision of investment services and activities in relation to, as well as the organized","page_number":69,"box":{"x":116,"y":444,"width":762,"height":12}},{"id":"d14eb684-d70a-40c4-8b58-c5b5d5c0e73a","block_type":"box","text":"trading of, financial instruments such as shares, bonds, units in collective investment schemes and","page_number":69,"box":{"x":116,"y":459,"width":738,"height":12}},{"id":"c4c22ff6-fdf5-449e-afa5-31a431f08249","block_type":"box","text":"derivatives. In particular, MiFID II requires European Union Member States to apply position limits to","page_number":69,"box":{"x":116,"y":475,"width":749,"height":12}},{"id":"91f9cb89-6f2c-4376-8930-69ea4e155997","block_type":"box","text":"the size of a net position a person can hold at any time in commodity derivatives traded on European","page_number":69,"box":{"x":116,"y":490,"width":754,"height":12}},{"id":"a034b4fb-d992-4527-98a8-48eef109dbde","block_type":"box","text":"Union trading venues and in “economically equivalent” OTC contracts. If the requirements of EMIR and","page_number":69,"box":{"x":117,"y":506,"width":769,"height":12}},{"id":"fc5b885c-aeac-4bcb-abae-86e24a9d06a6","block_type":"box","text":"MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":69,"box":{"x":117,"y":521,"width":557,"height":12}},{"id":"c9dda03d-8c48-4453-a5e6-dde4af5dee5e","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain","page_number":69,"box":{"x":117,"y":552,"width":742,"height":12}},{"id":"76efd216-b598-4b8f-a689-a31d6d012a59","block_type":"box","text":"prudentially regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to","page_number":69,"box":{"x":117,"y":568,"width":764,"height":12}},{"id":"b57c81e5-1e72-48d9-ae78-38b0423b0206","block_type":"box","text":"include in their derivatives contracts and certain other financial contracts, terms that delay or restrict","page_number":69,"box":{"x":117,"y":583,"width":745,"height":12}},{"id":"d1920170-9f4e-4ce3-9141-056e7fd1bd10","block_type":"box","text":"the rights of counterparties (such as the Funds) to terminate such contracts, foreclose upon collateral,","page_number":69,"box":{"x":116,"y":599,"width":761,"height":12}},{"id":"377ae7e3-e310-42e0-bb19-e97ed4413b10","block_type":"box","text":"exercise other default rights or restrict transfers of credit support in the event that the prudentially","page_number":69,"box":{"x":116,"y":614,"width":725,"height":12}},{"id":"fccccd3b-0eb5-4d46-8c1f-f308ce3db94c","block_type":"box","text":"regulated entity and/or its affiliates are subject to certain types of resolution or insolvency proceedings.","page_number":69,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"29b7f9c2-d1c1-4e2b-95d2-3a18043562c4","block_type":"box","text":"Similar regulations and laws have been adopted in non-U.S. jurisdictions that may apply to a Fund’s","page_number":69,"box":{"x":116,"y":645,"width":746,"height":12}},{"id":"b340e44b-0762-43f9-9408-2c28c18d64c8","block_type":"box","text":"counterparties located in those jurisdictions. In particular, in the United Kingdom and the European","page_number":69,"box":{"x":116,"y":661,"width":731,"height":12}},{"id":"c131dfdc-0252-4304-994f-d3425989b27f","block_type":"box","text":"Union, governmental authorities could reduce, eliminate or convert to equity the liabilities to a Fund of","page_number":69,"box":{"x":117,"y":676,"width":753,"height":12}},{"id":"84798593-56f8-4155-94f4-25b2370880aa","block_type":"box","text":"a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":69,"box":{"x":116,"y":692,"width":763,"height":12}},{"id":"32a8c2d7-5192-42d6-85ba-30995967b6f1","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely","page_number":69,"box":{"x":116,"y":707,"width":726,"height":12}},{"id":"e84f01ec-681d-4b4f-b99e-06e2c961e51d","block_type":"box","text":"affect a Fund’s ability to terminate existing derivatives contracts, exercise default rights or satisfy","page_number":69,"box":{"x":116,"y":723,"width":716,"height":12}},{"id":"c5914773-42aa-4563-9785-be8a2dac224b","block_type":"box","text":"obligations owed to it with collateral received under such contracts.","page_number":69,"box":{"x":116,"y":738,"width":496,"height":12}},{"id":"8e62ff7d-72a7-48ee-b9d9-a343e42dd199","block_type":"box","text":"Risk Factors in Derivatives.","page_number":69,"box":{"x":116,"y":777,"width":202,"height":9}},{"id":"2c27a6c0-8b46-45a2-9d89-9a59de7ee525","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":69,"box":{"x":116,"y":808,"width":620,"height":12}},{"id":"8a2f1a7d-ffd5-4bd8-94a8-6017afd7d359","block_type":"box","text":"Correlation Risk —","page_number":69,"box":{"x":117,"y":831,"width":123,"height":10}},{"id":"28e42425-3668-4bf7-b4a0-2994ba236a4c","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the","page_number":69,"box":{"x":240,"y":831,"width":631,"height":12}},{"id":"9efb0bb8-d1f3-43fd-bfaf-ff974ae83686","block_type":"box","text":"value of the portfolio holdings that are being hedged or of the particular market or security to which the","page_number":69,"box":{"x":116,"y":847,"width":765,"height":12}},{"id":"8cb7fe63-10a7-4410-bb8d-f5408bf28670","block_type":"box","text":"Fund seeks exposure. There are a number of factors which may prevent a derivative instrument from","page_number":69,"box":{"x":117,"y":862,"width":754,"height":12}},{"id":"bb95e597-5702-4c58-ae78-ba0d4dd22111","block_type":"box","text":"achieving the desired correlation (or inverse correlation) with an underlying asset, rate or index, such","page_number":69,"box":{"x":116,"y":878,"width":753,"height":12}},{"id":"d65dd400-50ab-4833-8e74-d091ac4d8fc7","block_type":"box","text":"II-19","page_number":69,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"23ee7971-bccd-4b74-90cb-f2229c2361e6","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":69,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"e0bacb3e-8938-4f93-a66c-0b9895c4b20d","block_type":"box","text":"as the impact of fees, expenses and transaction costs, the timing of pricing, and disruptions or illiquidity","page_number":70,"box":{"x":116,"y":87,"width":772,"height":12}},{"id":"9c0a1197-68d6-4579-a3c3-1844da460b66","block_type":"box","text":"in the markets for such derivative instrument.","page_number":70,"box":{"x":117,"y":102,"width":338,"height":10}},{"id":"dbabb2b4-8b33-4aa3-9811-62a1d92684bf","block_type":"box","text":"Counterparty Risk —","page_number":70,"box":{"x":117,"y":134,"width":138,"height":12}},{"id":"ea36e5d1-178a-4404-bd3a-20eb40546c82","block_type":"box","text":"—","page_number":70,"box":{"x":255,"y":139,"width":22,"height":4}},{"id":"ec39d6a3-0085-4272-822e-224245d64464","block_type":"box","text":"the risk that a derivatives transaction counterparty will be unable or unwilling to","page_number":70,"box":{"x":277,"y":134,"width":590,"height":12}},{"id":"746702f3-9ff4-4ddc-8e40-6f76a24daeda","block_type":"box","text":"make payments or otherwise honor its obligations to a Fund and the related risks of having","page_number":70,"box":{"x":117,"y":149,"width":678,"height":12}},{"id":"842f6833-94ff-4a8a-b1a5-0876cdc223d6","block_type":"box","text":"concentrated exposure to such a counterparty. In particular, derivatives traded in OTC markets often","page_number":70,"box":{"x":116,"y":165,"width":751,"height":12}},{"id":"27dc6c7d-909f-4d81-87b9-da7f8fc44ae3","block_type":"box","text":"are not guaranteed by an exchange or clearing corporation and often do not require payment of","page_number":70,"box":{"x":116,"y":180,"width":714,"height":12}},{"id":"7960fb3d-8bc1-427c-a0da-5149ffbe8fc9","block_type":"box","text":"margin, and to the extent that the Fund has unrealized gains in such instruments or has deposited","page_number":70,"box":{"x":117,"y":196,"width":732,"height":12}},{"id":"cc257529-5ec3-4a0b-b542-d9d806f2a42e","block_type":"box","text":"collateral with its counterparties the Fund is at risk that its counterparties will become bankrupt or","page_number":70,"box":{"x":116,"y":211,"width":725,"height":12}},{"id":"1eff151a-5b7b-4085-8b69-18199e3e869f","block_type":"box","text":"otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":70,"box":{"x":116,"y":227,"width":750,"height":12}},{"id":"7541c6cd-b51f-4e94-8658-7e82959dc0ad","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or","page_number":70,"box":{"x":116,"y":242,"width":768,"height":12}},{"id":"72402e96-b0e6-407f-b3fa-b01766e9e890","block_type":"box","text":"that have provided the Fund with a third-party guaranty or other credit support. When a Fund enters","page_number":70,"box":{"x":116,"y":258,"width":745,"height":12}},{"id":"8d0624de-df01-4cf9-b57a-b1ac93b56637","block_type":"box","text":"into a derivatives transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is","page_number":70,"box":{"x":117,"y":273,"width":754,"height":12}},{"id":"c3d59bc6-79dc-4909-b294-12bbc79bf465","block_type":"box","text":"subject to the credit risk of the clearing house and the clearing member through which it holds its","page_number":70,"box":{"x":116,"y":289,"width":722,"height":12}},{"id":"23dd6cbb-2261-46df-882e-73bf20a23758","block_type":"box","text":"cleared position. Credit risk of market participants with respect to derivatives that are centrally cleared","page_number":70,"box":{"x":116,"y":304,"width":761,"height":12}},{"id":"2f566792-9ded-45f5-ba0b-dbcb9a09d50a","block_type":"box","text":"is concentrated in a few clearing houses and increasingly fewer clearing members. It is not clear how","page_number":70,"box":{"x":117,"y":320,"width":754,"height":12}},{"id":"8c1a1aa6-22fb-4489-b5e3-5332392f8c1f","block_type":"box","text":"an insolvency proceeding of a clearing house would be conducted and what impact an insolvency of a","page_number":70,"box":{"x":116,"y":335,"width":762,"height":12}},{"id":"b5bc0f5e-24b0-454f-b55c-64696f36811c","block_type":"box","text":"clearing house would have on the financial system. Also, a Fund will not be fully protected in the event","page_number":70,"box":{"x":116,"y":351,"width":764,"height":12}},{"id":"13af28d8-5320-4c1d-9b32-36abb04f0551","block_type":"box","text":"of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":70,"box":{"x":116,"y":366,"width":768,"height":12}},{"id":"09c12f2c-57fd-47f0-90e2-b18d958bc477","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for","page_number":70,"box":{"x":117,"y":382,"width":747,"height":12}},{"id":"8fc72a7b-77fe-4441-b952-6ac03837833f","block_type":"box","text":"cleared derivatives. Although a clearing member is required to segregate assets from customers with","page_number":70,"box":{"x":116,"y":397,"width":755,"height":12}},{"id":"bae68746-b3ee-470c-9d2e-d444cf07fc5b","block_type":"box","text":"respect to cleared derivatives positions from the clearing member’s proprietary assets, if a clearing","page_number":70,"box":{"x":117,"y":413,"width":736,"height":12}},{"id":"82a0c5d1-353a-4d70-9774-e087b8b3cfc4","block_type":"box","text":"member does not comply with the applicable regulations, or in the event of fraud or misappropriation of","page_number":70,"box":{"x":117,"y":428,"width":768,"height":12}},{"id":"35732221-c3bf-43bb-bdd4-8b193f493ccf","block_type":"box","text":"customer assets by a clearing member, a Fund could have only an unsecured creditor claim in an","page_number":70,"box":{"x":116,"y":444,"width":730,"height":12}},{"id":"7321a2ef-7c74-444a-aedf-6d624d3eff20","block_type":"box","text":"insolvency of the clearing member with respect to the assets held by the clearing member.","page_number":70,"box":{"x":117,"y":459,"width":675,"height":12}},{"id":"72622061-f64b-454c-a76e-524801f8b967","block_type":"box","text":"Credit Risk —","page_number":70,"box":{"x":117,"y":490,"width":86,"height":10}},{"id":"b3536b35-7678-4c1b-8801-d5bc68fab351","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be","page_number":70,"box":{"x":203,"y":490,"width":668,"height":12}},{"id":"c7033272-e738-43b6-9f6a-16b83c560707","block_type":"box","text":"able to honor its financial obligations.","page_number":70,"box":{"x":116,"y":506,"width":280,"height":12}},{"id":"ef7e0271-4f47-4789-952a-60597f5391a5","block_type":"box","text":"Currency Risk —","page_number":70,"box":{"x":117,"y":537,"width":109,"height":12}},{"id":"6dbafcfe-d159-48f1-8ac7-eef8bcb63a4c","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely","page_number":70,"box":{"x":226,"y":537,"width":625,"height":12}},{"id":"9c8d5cc3-8ef6-4a9d-8a7c-8d6dea97f9f1","block_type":"box","text":"affect the value (in U.S. dollar terms) of a derivative.","page_number":70,"box":{"x":116,"y":552,"width":392,"height":12}},{"id":"bd644190-d826-4535-9324-c80b968840f3","block_type":"box","text":"Illiquidity Risk —","page_number":70,"box":{"x":117,"y":583,"width":105,"height":12}},{"id":"ac15d802-ba4d-4809-a84f-0314295d4c60","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at","page_number":70,"box":{"x":222,"y":583,"width":644,"height":12}},{"id":"f9aa7ab8-e5ef-4009-9c02-786a44b03b65","block_type":"box","text":"the time or at the price desired by a Fund in connection with payments of margin, collateral, or","page_number":70,"box":{"x":116,"y":599,"width":703,"height":12}},{"id":"5415a399-fa5d-497e-be4b-3da3a8bdc17d","block_type":"box","text":"settlement payments. There can be no assurance that a Fund will be able to unwind or offset a","page_number":70,"box":{"x":116,"y":614,"width":708,"height":12}},{"id":"a5e1c297-ce2a-4619-9672-c4180a7a7ebb","block_type":"box","text":"derivative at its desired price, in a secondary market or otherwise. It may, therefore, not be possible for","page_number":70,"box":{"x":116,"y":630,"width":768,"height":12}},{"id":"83d7659d-2522-42f1-b2d9-9232ff4d9466","block_type":"box","text":"the Fund to unwind its position in a derivative without incurring substantial losses (if at all). Certain","page_number":70,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"04eb37eb-620e-4c2b-8308-a15e3feda9eb","block_type":"box","text":"OTC derivatives, including swaps and OTC options, involve substantial illiquidity risk. Illiquidity may","page_number":70,"box":{"x":116,"y":661,"width":736,"height":12}},{"id":"10a85789-c26b-423b-943a-71b8ebda1ed6","block_type":"box","text":"also make it more difficult for a Fund to ascertain a market value for such derivatives. A Fund will,","page_number":70,"box":{"x":116,"y":676,"width":723,"height":11}},{"id":"c9b26f2e-eecd-4bd5-8a9b-6b3d6fb550a9","block_type":"box","text":"therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":70,"box":{"x":116,"y":692,"width":719,"height":12}},{"id":"79b94833-9132-4c2c-8a4d-bdadfd5610f8","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which","page_number":70,"box":{"x":117,"y":707,"width":757,"height":12}},{"id":"583d381a-7758-463e-a276-5bed9b43090a","block_type":"box","text":"the Manager anticipates the Fund can receive on each business day at least two independent bids or","page_number":70,"box":{"x":116,"y":723,"width":751,"height":12}},{"id":"9235e7e0-f9c8-4d00-abda-f8e39b71617f","block_type":"box","text":"offers, unless a quotation from only one dealer is available, in which case that dealer’s quotation may","page_number":70,"box":{"x":116,"y":738,"width":751,"height":12}},{"id":"198da5f0-c1a6-41a0-89d5-ab02fd5a5d4d","block_type":"box","text":"be used. The illiquidity of the derivatives markets may be due to various factors, including congestion,","page_number":70,"box":{"x":117,"y":754,"width":752,"height":12}},{"id":"40e2663f-bc0b-4b8f-9787-fa9e8d13275c","block_type":"box","text":"disorderly markets, limitations on deliverable supplies, the participation of speculators, government","page_number":70,"box":{"x":116,"y":769,"width":733,"height":12}},{"id":"2fcc777b-87ff-4b41-8770-69f25c9fe769","block_type":"box","text":"regulation and intervention, and technical and operational or system failures. In addition, the liquidity of","page_number":70,"box":{"x":117,"y":785,"width":763,"height":12}},{"id":"2161f549-9590-4a88-92cb-ce91bfa9a865","block_type":"box","text":"a market in an exchange-traded derivative contract may be adversely affected by “daily price","page_number":70,"box":{"x":116,"y":800,"width":688,"height":12}},{"id":"d6149469-0103-4b38-af6d-96224cd48e23","block_type":"box","text":"fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":70,"box":{"x":116,"y":816,"width":747,"height":12}},{"id":"6d67a390-0208-45db-adf7-a08ebf8a7826","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract,","page_number":70,"box":{"x":116,"y":831,"width":766,"height":12}},{"id":"ce618e78-ae21-43bc-9698-d2c4e3876c47","block_type":"box","text":"no trades may be entered into at a price beyond the limit, thus preventing the liquidation of open","page_number":70,"box":{"x":117,"y":847,"width":717,"height":12}},{"id":"71bbe3dc-649f-4c2c-a5b6-916b94af0d5b","block_type":"box","text":"positions. Prices have in the past moved to the daily limit on a number of consecutive trading days with","page_number":70,"box":{"x":117,"y":862,"width":768,"height":12}},{"id":"ef4e5189-5744-4525-869c-39eac2346d01","block_type":"box","text":"little to no trading. If it is not possible to close an open derivative position entered into by the Fund, the","page_number":70,"box":{"x":117,"y":878,"width":762,"height":12}},{"id":"a9c556c7-8d18-4f69-afc8-7534f2e88eaf","block_type":"box","text":"II-20","page_number":70,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"a07eeab6-e3ea-4f2f-91bb-425032166cff","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":70,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"0fbe26f0-74e9-432f-8695-94ad83590328","block_type":"box","text":"Fund would continue to be required to make daily cash payments of variation margin in the event of","page_number":71,"box":{"x":117,"y":87,"width":743,"height":12}},{"id":"8b412664-4ee7-4ec1-ac39-ec9339ae2213","block_type":"box","text":"adverse price movements. In such a situation, if the Fund has insufficient cash, it may have to sell","page_number":71,"box":{"x":116,"y":102,"width":732,"height":13}},{"id":"01c5e181-dc81-48ec-a456-819a772008e6","block_type":"box","text":"portfolio securities to meet daily variation margin requirements at a time when it may be","page_number":71,"box":{"x":117,"y":118,"width":654,"height":12}},{"id":"ab15fffc-319b-4f6f-aa34-91374686b60a","block_type":"box","text":"disadvantageous to do so.","page_number":71,"box":{"x":116,"y":134,"width":201,"height":12}},{"id":"85a89478-260c-4b7f-8f07-11811f1f7f32","block_type":"box","text":"Index Risk —","page_number":71,"box":{"x":117,"y":163,"width":82,"height":10}},{"id":"808e5bae-90ba-4d96-a3c2-4647432cb0e8","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks","page_number":71,"box":{"x":199,"y":163,"width":651,"height":12}},{"id":"1e2b0e2e-b630-4f43-b0fe-12fdb71e419a","block_type":"box","text":"associated with changes in that index. If the index changes, the Fund could receive lower interest","page_number":71,"box":{"x":116,"y":179,"width":728,"height":12}},{"id":"13ebf768-b966-4604-b758-a7c218c2587e","block_type":"box","text":"payments or experience a reduction in the value of the derivative to below the price that the Fund paid","page_number":71,"box":{"x":117,"y":194,"width":762,"height":12}},{"id":"1fe03b89-a761-468c-aab0-8ae90c7b8a7c","block_type":"box","text":"for such derivative.","page_number":71,"box":{"x":116,"y":210,"width":146,"height":9}},{"id":"a04a33fc-06d8-41cc-937c-cd6d1af92431","block_type":"box","text":"Legal Risk","page_number":71,"box":{"x":116,"y":240,"width":79,"height":12}},{"id":"9a273a9e-7c58-4df3-8134-b46e67693db7","block_type":"box","text":"k — the risk of insufficient documentation, insufficient capacity or authority of counterparty, or","page_number":71,"box":{"x":194,"y":240,"width":689,"height":12}},{"id":"7c02b0dd-fe81-493e-a562-687f4ec1a530","block_type":"box","text":"legality or enforceability of a contract.","page_number":71,"box":{"x":117,"y":255,"width":281,"height":12}},{"id":"48118e1f-92c3-446f-91ed-96525659af9c","block_type":"box","text":"Leverage Risk —","page_number":71,"box":{"x":116,"y":285,"width":112,"height":12}},{"id":"5cb2e313-f74d-4ff8-bd07-99b751082f9f","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and","page_number":71,"box":{"x":228,"y":285,"width":619,"height":12}},{"id":"9dc48f6a-fc50-499e-9fa5-480a43dcbb5c","block_type":"box","text":"losses. Relatively small market movements may result in large changes in the value of a derivatives","page_number":71,"box":{"x":117,"y":300,"width":744,"height":12}},{"id":"fc665ec1-2c97-4507-9c10-5f53f8f93c31","block_type":"box","text":"position and can result in losses that greatly exceed the amount originally invested.","page_number":71,"box":{"x":117,"y":316,"width":621,"height":12}},{"id":"2a074186-891b-408f-a149-008a6281fab5","block_type":"box","text":"Market Risk —","page_number":71,"box":{"x":116,"y":346,"width":93,"height":9}},{"id":"dd655ebf-ca41-4163-8393-4faa04e8d454","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to","page_number":71,"box":{"x":209,"y":346,"width":653,"height":12}},{"id":"c82342b3-3c73-49bf-a34a-6f5ea527092e","block_type":"box","text":"the value of the underlying asset will adversely affect the value of a derivative. In the event of an","page_number":71,"box":{"x":116,"y":361,"width":719,"height":12}},{"id":"e8de9912-5a4a-46e6-a60a-239a6c056389","block_type":"box","text":"adverse movement, a Fund may be required to pay substantial additional margin to maintain its","page_number":71,"box":{"x":116,"y":377,"width":713,"height":12}},{"id":"d7f57038-7f5b-4bd6-996b-0a20487921e3","block_type":"box","text":"position or the Fund’s returns may be adversely affected.","page_number":71,"box":{"x":117,"y":392,"width":427,"height":12}},{"id":"967cf57a-b2ee-4282-8e88-b2e809ef9faf","block_type":"box","text":"Operational Risk","page_number":71,"box":{"x":117,"y":422,"width":124,"height":12}},{"id":"9d3b083a-5936-481b-8c74-dddecaef2ea2","block_type":"box","text":"k — the risk related to potential operational issues, including documentation issues,","page_number":71,"box":{"x":240,"y":422,"width":616,"height":12}},{"id":"885e1606-aff6-4db2-9619-f031a814467a","block_type":"box","text":"settlement issues, systems failures, inadequate controls and human error.","page_number":71,"box":{"x":116,"y":437,"width":555,"height":13}},{"id":"f2698ff3-3206-4caf-b822-a53e52b3354f","block_type":"box","text":"Valuation Risk —","page_number":71,"box":{"x":118,"y":467,"width":110,"height":10}},{"id":"200f2966-d266-4336-bd08-1c53b49d1d1c","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the","page_number":71,"box":{"x":228,"y":467,"width":614,"height":12}},{"id":"669a5c11-a1d2-44c6-80a4-1f24a48397d1","block_type":"box","text":"market. This is possible especially in times of market distress, since many market participants may be","page_number":71,"box":{"x":117,"y":483,"width":760,"height":12}},{"id":"839ffe24-ded8-4098-8491-08b1857b1fc9","block_type":"box","text":"reluctant to purchase complex instruments or quote prices for them.","page_number":71,"box":{"x":117,"y":498,"width":507,"height":12}},{"id":"01854f54-e379-4749-b2d8-ab9f61b138c8","block_type":"box","text":"Volatility Risk —","page_number":71,"box":{"x":118,"y":528,"width":102,"height":12}},{"id":"4265989e-5140-4393-a905-461dd0bb927a","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time","page_number":71,"box":{"x":220,"y":528,"width":619,"height":12}},{"id":"1236a8f4-8133-4655-a04a-21aa30990091","block_type":"box","text":"period.","page_number":71,"box":{"x":117,"y":544,"width":55,"height":11}},{"id":"bdaf5274-c509-449c-b6e9-a13f9a366123","block_type":"box","text":"Types of Derivatives Transactions.","page_number":71,"box":{"x":118,"y":580,"width":261,"height":13}},{"id":"5da2c137-baf0-48db-849c-e52fab03f9fa","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and","page_number":71,"box":{"x":116,"y":610,"width":715,"height":12}},{"id":"705fe0c9-e678-40c2-9a2a-5f0767870557","block_type":"box","text":"restrictions, including the following:","page_number":71,"box":{"x":117,"y":626,"width":263,"height":12}},{"id":"b83eb8de-b4cf-4b47-bfa1-d8750dde579c","block_type":"box","text":"Futures.","page_number":71,"box":{"x":116,"y":663,"width":60,"height":9}},{"id":"317b2ec3-7739-41d9-91de-3e6986e868f1","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are","page_number":71,"box":{"x":116,"y":692,"width":713,"height":13}},{"id":"d95ebb09-7105-4098-ba48-2b6dcae258f4","block_type":"box","text":"standardized, exchange-traded contracts that require a purchaser to take delivery, and a seller to make","page_number":71,"box":{"x":116,"y":708,"width":767,"height":12}},{"id":"95f51b6d-c1d4-435e-a9ca-e889577bb641","block_type":"box","text":"delivery, of a specified amount of an asset at a specified future date and price. Upon purchasing or","page_number":71,"box":{"x":116,"y":723,"width":734,"height":13}},{"id":"254da154-4a4b-41fc-9718-16321773dc1f","block_type":"box","text":"selling a futures contract, a Fund is required to deposit initial margin equal to a percentage of the","page_number":71,"box":{"x":116,"y":739,"width":718,"height":12}},{"id":"f1aae631-765c-48d2-aea4-543dd18a6eda","block_type":"box","text":"contract value. Futures contracts are marked to market daily for the duration of the contract, and the","page_number":71,"box":{"x":116,"y":754,"width":743,"height":13}},{"id":"a17526a0-faab-4fb9-a14a-c78785f75e87","block_type":"box","text":"Fund will either post additional margin or be entitled to a payment, as applicable, based on the","page_number":71,"box":{"x":117,"y":770,"width":699,"height":12}},{"id":"df1d2011-4054-4fd2-a7f6-e4578846add6","block_type":"box","text":"mark-to-market movement of the contract.","page_number":71,"box":{"x":117,"y":786,"width":311,"height":9}},{"id":"c622b94f-3bfd-437b-a04e-a4d20df41e90","block_type":"box","text":"A Fund may sell a futures contract prior to the completion","page_number":71,"box":{"x":116,"y":815,"width":425,"height":12}},{"id":"a76c2e84-49d6-4b40-b80b-a5c56514f8d3","block_type":"box","text":"of its term to limit its risk of loss from a","page_number":71,"box":{"x":548,"y":815,"width":284,"height":10}},{"id":"1df1d9fe-56d0-4b9f-992f-22877b98df7d","block_type":"box","text":"decline in the market value of portfolio holdings correlated with the futures contract. However, in the","page_number":71,"box":{"x":116,"y":831,"width":745,"height":12}},{"id":"f5b87d27-3685-47c2-bfc7-5331d5832ee3","block_type":"box","text":"event the market value of the portfolio holdings correlated with the futures contract increases rather","page_number":71,"box":{"x":116,"y":846,"width":742,"height":12}},{"id":"7b0c6208-3944-462e-ba57-97df30115b82","block_type":"box","text":"than decreases, a Fund will realize a loss on the futures position and a lower return on the portfolio","page_number":71,"box":{"x":116,"y":862,"width":739,"height":12}},{"id":"bc16ae7d-c04f-4353-a454-f3483e943564","block_type":"box","text":"holdings than would have been realized without the purchase of the futures contract.","page_number":71,"box":{"x":117,"y":877,"width":631,"height":12}},{"id":"768503d0-9fd9-4133-8316-2ff252bd7936","block_type":"box","text":"II-21","page_number":71,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"e261a697-d8c4-45d0-ba0f-db65bb3ba9cf","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":71,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"c97e2cd0-be59-493e-a090-bd02c700d76e","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing","page_number":72,"box":{"x":116,"y":87,"width":697,"height":12}},{"id":"433dcd18-f48f-4d1f-b553-9350bfbe15f5","block_type":"box","text":"securities or commodities directly. In the event that such securities or commodities decline in value or a","page_number":72,"box":{"x":116,"y":103,"width":772,"height":12}},{"id":"51636618-4fde-4ae1-838c-e36681e893cd","block_type":"box","text":"Fund determines not to complete an anticipatory hedge transaction relating to a futures contract,","page_number":72,"box":{"x":117,"y":118,"width":720,"height":12}},{"id":"1f4472bb-03de-47ca-8262-8efd8a91ffaa","block_type":"box","text":"however, the Fund may realize a loss relating to the futures position.","page_number":72,"box":{"x":117,"y":134,"width":512,"height":12}},{"id":"29aae41f-61b3-46fe-b58f-c9185cdcb167","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may","page_number":72,"box":{"x":117,"y":165,"width":763,"height":12}},{"id":"7aba8eb4-080b-431f-a142-4ac623d8d24c","block_type":"box","text":"be required to liquidate positions or may not be able to fully implement trading instructions. Any such","page_number":72,"box":{"x":117,"y":180,"width":750,"height":12}},{"id":"6439d372-c59c-4c13-9cc4-63c3391cec96","block_type":"box","text":"liquidation or limited implementation could result in substantial costs to a Fund. See “—Regulation of","page_number":72,"box":{"x":117,"y":196,"width":750,"height":12}},{"id":"9ae8f2c7-6e4c-4149-9f23-52f2bac583fc","block_type":"box","text":"Derivatives—Dodd-Frank Regulations” above.","page_number":72,"box":{"x":117,"y":211,"width":346,"height":12}},{"id":"0e91051a-15a6-4873-9d6f-da06083bcf4a","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including","page_number":72,"box":{"x":116,"y":242,"width":706,"height":12}},{"id":"52e1a1bd-4cc1-4e38-aa3c-aae09cac032a","block_type":"box","text":"financial futures and stock indices. Generally, these strategies would be used under the same market","page_number":72,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"38ffc697-213b-41a2-a5f9-0725b80f2d30","block_type":"box","text":"and market sector conditions (","page_number":72,"box":{"x":116,"y":273,"width":225,"height":12}},{"id":"4f9b95b1-a6ae-438e-8135-f4dcb0ed6ea2","block_type":"box","text":"i.e.","page_number":72,"box":{"x":342,"y":273,"width":20,"height":10}},{"id":"337aab0d-6069-44d8-85c5-ea20fa996bb7","block_type":"box","text":", conditions relating to specific types of investments) in which the","page_number":72,"box":{"x":365,"y":273,"width":485,"height":12}},{"id":"ab942627-4414-4583-b6cc-7b77f806dff4","block_type":"box","text":"Fund entered into futures transactions. A Fund may purchase put options or write call options on","page_number":72,"box":{"x":117,"y":289,"width":720,"height":12}},{"id":"42efc3ac-c807-488f-8341-a834da5f63fd","block_type":"box","text":"futures contracts and stock indices in lieu of selling the underlying futures contract in anticipation of a","page_number":72,"box":{"x":116,"y":304,"width":754,"height":12}},{"id":"dc79fc9a-4060-4a2d-b7ed-da2d4585ab8b","block_type":"box","text":"decrease in the market value of its securities. Similarly, a Fund can purchase call options, or write put","page_number":72,"box":{"x":116,"y":320,"width":759,"height":12}},{"id":"a13d0f2f-c719-4024-9b7b-8d95be996a2d","block_type":"box","text":"options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":72,"box":{"x":116,"y":335,"width":705,"height":12}},{"id":"a0f9908b-591d-4efb-b950-54ead4c848d3","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of","page_number":72,"box":{"x":116,"y":351,"width":707,"height":12}},{"id":"0a4e7e0b-7b2f-4d72-b1df-e3e895654112","block_type":"box","text":"securities which the Fund intends to purchase.","page_number":72,"box":{"x":116,"y":366,"width":350,"height":12}},{"id":"9d69f565-4157-43d7-b62e-c42e5a378133","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to","page_number":72,"box":{"x":116,"y":397,"width":748,"height":12}},{"id":"4fc05e2b-0c2f-4ae4-a6c2-09d680d96f4a","block_type":"box","text":"futures contracts. These instruments may take a variety of forms, such as debt securities with interest","page_number":72,"box":{"x":116,"y":413,"width":759,"height":12}},{"id":"33228f51-a4b5-4c4d-a586-d0eb68337548","block_type":"box","text":"or principal payments determined by reference to the value of a security, an index of securities or a","page_number":72,"box":{"x":116,"y":428,"width":740,"height":12}},{"id":"93c5479f-ff52-48b4-adfc-2fa4484549fb","block_type":"box","text":"commodity at a future point in time. The risks of such investments could reflect the risks of investing in","page_number":72,"box":{"x":116,"y":444,"width":764,"height":12}},{"id":"04e3643d-c419-401f-b52b-b583bef23d28","block_type":"box","text":"futures and securities, including volatility and illiquidity.","page_number":72,"box":{"x":116,"y":459,"width":410,"height":12}},{"id":"a0cdb72f-9e23-430f-a16e-347229c5a0ca","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage","page_number":72,"box":{"x":117,"y":490,"width":751,"height":12}},{"id":"43fadf6a-0b01-4176-915f-a3fd3e549a2e","block_type":"box","text":"risk, illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the","page_number":72,"box":{"x":117,"y":506,"width":726,"height":12}},{"id":"ab9bf16a-2a43-4a69-a957-8b73bf585a4d","block_type":"box","text":"clearinghouse. See “—Risk Factors in Derivatives” above.","page_number":72,"box":{"x":116,"y":521,"width":436,"height":12}},{"id":"48848170-f1de-4ae7-92f4-41c582ad1746","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a","page_number":72,"box":{"x":117,"y":552,"width":771,"height":12}},{"id":"f5c0fc03-27ec-4943-8b68-6c2df2980cc7","block_type":"box","text":"limit is set by a regulator, such as a government entity, on the total amount of specific greenhouse","page_number":72,"box":{"x":117,"y":568,"width":732,"height":12}},{"id":"4ce33f47-ec3a-4a8f-a8bf-965cb69fb9f9","block_type":"box","text":"gases, such as CO2, that can be emitted by regulated entities, such as manufacturers or energy","page_number":72,"box":{"x":116,"y":583,"width":720,"height":12}},{"id":"246d345e-3f75-409e-9567-80e7397fabcd","block_type":"box","text":"producers. The regulator then may issue or sell individual “emission allowances” to regulated entities,","page_number":72,"box":{"x":117,"y":599,"width":756,"height":12}},{"id":"cc69355a-302f-47e4-9ca7-535fec337226","block_type":"box","text":"which can then be traded on the open market. Commodity futures contracts linked to the value of","page_number":72,"box":{"x":116,"y":614,"width":725,"height":12}},{"id":"11b59e22-fd3c-4f56-9061-6f4456104b45","block_type":"box","text":"emission allowances are known as “carbon futures.”","page_number":72,"box":{"x":116,"y":630,"width":392,"height":9}},{"id":"5cf7cf76-9618-428a-8d76-91bb23de6e67","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the","page_number":72,"box":{"x":116,"y":661,"width":756,"height":12}},{"id":"5760e8fd-5257-4716-a85b-690e50448176","block_type":"box","text":"demand for carbon futures contracts. Changes in law, market conditions and expectations, position","page_number":72,"box":{"x":116,"y":676,"width":734,"height":12}},{"id":"aa898b0f-68f4-42f4-87e3-dbaeefe65f1f","block_type":"box","text":"limits, collateral requirements, and other factors each can impact the supply of and demand for carbon","page_number":72,"box":{"x":117,"y":692,"width":758,"height":12}},{"id":"2ff4a9ba-6f81-4dcc-b8f7-9f9cf012e269","block_type":"box","text":"futures contracts. The market for carbon futures contracts is still developing and may be subject to","page_number":72,"box":{"x":116,"y":707,"width":729,"height":12}},{"id":"79f50bdb-0a5b-4546-bb92-eab46e8df9b7","block_type":"box","text":"periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the","page_number":72,"box":{"x":117,"y":723,"width":742,"height":12}},{"id":"73df0e58-cad1-4831-a585-d037c05c405c","block_type":"box","text":"desired price. Market disruptions or volatility can also make it difficult to find a counterparty willing to","page_number":72,"box":{"x":116,"y":738,"width":742,"height":12}},{"id":"44ead0fe-6dd4-4937-bc56-c363926290ff","block_type":"box","text":"transact at a reasonable price and sufficient size.","page_number":72,"box":{"x":116,"y":754,"width":363,"height":12}},{"id":"57c3334a-d654-4766-8911-da4b15cf0374","block_type":"box","text":"Swap Agreements.","page_number":72,"box":{"x":117,"y":792,"width":139,"height":12}},{"id":"5b114db2-5142-41bb-b676-bfbce046a6f5","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap","page_number":72,"box":{"x":116,"y":823,"width":699,"height":13}},{"id":"86ecee88-a970-448f-8683-d715ff2f5f86","block_type":"box","text":"agreements are OTC contracts entered into primarily by financial institutions and institutional investors","page_number":72,"box":{"x":116,"y":839,"width":764,"height":12}},{"id":"2238f53b-ed2c-406f-b3b6-3f3995d18ed6","block_type":"box","text":"which may or may not be cleared by a central clearinghouse. In a standard “swap” transaction, two","page_number":72,"box":{"x":116,"y":854,"width":738,"height":13}},{"id":"f96ada8d-20ab-451f-aa6e-3f92488e7d69","block_type":"box","text":"parties agree to exchange the returns earned or realized from one or more underlying assets or rates","page_number":72,"box":{"x":117,"y":870,"width":755,"height":12}},{"id":"b11cb74a-1395-49f1-907f-e662ae5b95ca","block_type":"box","text":"II-22","page_number":72,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"62b0e891-db14-44a9-894d-6f31a5bdcfa5","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":72,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"8ca986a3-384e-4fc3-94e4-eb765b992eaa","block_type":"box","text":"of return, which may be adjusted for an interest factor. The gross returns to be exchanged or","page_number":73,"box":{"x":116,"y":87,"width":693,"height":12}},{"id":"598bd1e2-64e2-4272-bd83-af11ce65cbeb","block_type":"box","text":"“swapped” between the parties are generally calculated with respect to a “notional amount,”","page_number":73,"box":{"x":116,"y":102,"width":684,"height":13}},{"id":"96dc8e16-5cd5-41f3-9ef1-ca750132dad2","block_type":"box","text":"e.g.","page_number":73,"box":{"x":801,"y":105,"width":26,"height":10}},{"id":"e846f158-f0d4-4c0e-8064-2b8931fcd888","block_type":"box","text":", the","page_number":73,"box":{"x":830,"y":103,"width":36,"height":11}},{"id":"a4e0f484-051c-4733-a6a8-0a4f1642fcb9","block_type":"box","text":"return or increase in value of a particular dollar amount invested at a particular interest rate, in a","page_number":73,"box":{"x":117,"y":118,"width":716,"height":12}},{"id":"53bfc8dc-6f78-45a7-a01f-95ce1943150c","block_type":"box","text":"particular foreign currency, or in a “basket” of securities representing a particular index. The notional","page_number":73,"box":{"x":117,"y":134,"width":747,"height":12}},{"id":"8d5d29b0-5368-47a9-bf28-38ba814e98f6","block_type":"box","text":"amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":73,"box":{"x":116,"y":149,"width":726,"height":12}},{"id":"9dca561e-1159-49e0-a41f-d6d74dc1ade7","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will","page_number":73,"box":{"x":116,"y":165,"width":736,"height":12}},{"id":"440cdfb6-4fba-47b9-9042-4c36d1b07361","block_type":"box","text":"generally be equal only to the net amount to be paid or received under the agreement based on the","page_number":73,"box":{"x":116,"y":180,"width":743,"height":12}},{"id":"07c2060b-b889-4cad-8621-d78254536ab4","block_type":"box","text":"relative values of the positions held by each party to the agreement. Swaps that are not cleared involve","page_number":73,"box":{"x":117,"y":196,"width":770,"height":12}},{"id":"cdbe746a-97fb-4fbf-a715-ee08fc5b7a55","block_type":"box","text":"substantial counterparty risk. A Fund will typically attempt to mitigate this counterparty risk by entering","page_number":73,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"0f20aaac-cba0-47c5-b6f8-9b0a7aa7c94e","block_type":"box","text":"into swap agreements only with creditworthy entities that have substantial capital or that have provided","page_number":73,"box":{"x":117,"y":227,"width":767,"height":12}},{"id":"cdc6c641-a7fa-4ced-8c71-f46fbd4e7658","block_type":"box","text":"the Fund with a third-party guaranty or other credit support. A Fund’s ability to use swap agreements","page_number":73,"box":{"x":116,"y":242,"width":751,"height":12}},{"id":"527d49b3-657b-43cf-85a4-99f222687978","block_type":"box","text":"may be restricted by the tax rules applicable to registered investment companies.","page_number":73,"box":{"x":117,"y":258,"width":607,"height":12}},{"id":"3a75a78b-5a58-428e-9fd2-c6efc091dfad","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":73,"box":{"x":117,"y":289,"width":348,"height":12}},{"id":"dc0098ed-2261-4e0d-8cec-fd7fd97684a5","block_type":"box","text":"Certain Funds may enter into credit default swaps and","page_number":73,"box":{"x":466,"y":289,"width":407,"height":12}},{"id":"f6a07f7c-3ebc-48d0-9b27-54984b61c7f0","block_type":"box","text":"similar instruments. Credit default swaps are standardized agreements in which the protection “buyer”","page_number":73,"box":{"x":116,"y":304,"width":760,"height":12}},{"id":"1d99cd50-e7e0-456a-b667-d3bb569054a0","block_type":"box","text":"pays the protection “seller” an up-front payment, or a periodic stream of payments, over the term of the","page_number":73,"box":{"x":117,"y":320,"width":768,"height":12}},{"id":"a9a7b183-e872-403f-a7ef-2cbc4d6fc1d7","block_type":"box","text":"contract, provided generally that no credit event on a reference obligation has occurred. If a credit","page_number":73,"box":{"x":116,"y":335,"width":730,"height":12}},{"id":"b6f9904d-3b68-46b4-a72c-37749a08d198","block_type":"box","text":"event occurs, the seller generally must pay the buyer the difference between the notional amount of","page_number":73,"box":{"x":116,"y":351,"width":745,"height":12}},{"id":"1386e6fb-0ccd-438e-8bfc-000a758ff4cd","block_type":"box","text":"the contract and the value of a portfolio of securities issued by the reference entity. A Fund may be","page_number":73,"box":{"x":116,"y":366,"width":738,"height":12}},{"id":"e1787191-804f-4e47-9261-274b974f516a","block_type":"box","text":"either the buyer or seller in the transaction. The Funds may enter into credit default swaps that","page_number":73,"box":{"x":116,"y":382,"width":706,"height":12}},{"id":"19961c23-8433-4c00-a1c8-658d8f093060","block_type":"box","text":"reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that make","page_number":73,"box":{"x":117,"y":397,"width":761,"height":12}},{"id":"25deaae6-4ad8-4d6e-8e28-72bc74b14002","block_type":"box","text":"up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name","page_number":73,"box":{"x":117,"y":413,"width":757,"height":12}},{"id":"517a3432-9b61-41f3-b2a7-ccad35a47456","block_type":"box","text":"CDS and index CDS.","page_number":73,"box":{"x":117,"y":428,"width":161,"height":10}},{"id":"7542c8e3-b87a-499d-bb51-1c65f75d665e","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not","page_number":73,"box":{"x":117,"y":459,"width":706,"height":12}},{"id":"1b15153c-e464-4505-824c-1db2404cbc89","block_type":"box","text":"currently held by a Fund. In circumstances in which a Fund does not own the securities or loans that","page_number":73,"box":{"x":116,"y":475,"width":749,"height":12}},{"id":"ffd3aaa1-dab6-43e1-aaef-23e3835ddf0c","block_type":"box","text":"are deliverable under a credit default swap, the Fund is exposed to the risk that deliverable securities","page_number":73,"box":{"x":116,"y":490,"width":755,"height":12}},{"id":"be6e2543-8c5a-4413-94b0-b55dde09b3dd","block_type":"box","text":"will not be available in the market, or will be available only at unfavorable prices, as would be the case","page_number":73,"box":{"x":116,"y":506,"width":763,"height":12}},{"id":"f03b89a1-18e3-44c6-9dd0-672c841c5062","block_type":"box","text":"in a so-called “short squeeze.” In certain instances of issuer defaults or restructurings, it has been","page_number":73,"box":{"x":117,"y":521,"width":729,"height":12}},{"id":"9c319a07-04e9-4a99-b527-8f488b426f57","block_type":"box","text":"unclear under the standard industry documentation for credit default swaps whether or not a “credit","page_number":73,"box":{"x":117,"y":537,"width":739,"height":12}},{"id":"4746c84d-9390-4d00-bf6d-d2ec1d56ae37","block_type":"box","text":"event” triggering the seller’s payment obligation had occurred. Certain initiatives adopted by derivatives","page_number":73,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"3d6e86c8-af55-4c32-9de4-86f6b80b1d4d","block_type":"box","text":"market participants, including the International Swaps and Derivatives Association (“ISDA”), are","page_number":73,"box":{"x":117,"y":568,"width":713,"height":12}},{"id":"acfff69f-f30d-42dc-8a5a-213eca540226","block_type":"box","text":"designed to implement uniform settlement terms into standard credit default swap documentation, as","page_number":73,"box":{"x":116,"y":583,"width":753,"height":12}},{"id":"c1900061-a03f-45d2-8d6e-73b36ca944eb","block_type":"box","text":"well as refine the practices for the transparent conduct of the credit default swap market generally.","page_number":73,"box":{"x":116,"y":599,"width":735,"height":12}},{"id":"d90be988-3650-4a35-8155-ccc01d5a5a62","block_type":"box","text":"Among these initiatives are the ISDA Credit Derivatives Determination Committee and the","page_number":73,"box":{"x":116,"y":614,"width":672,"height":12}},{"id":"0d2ef975-7686-4ff8-bdde-cc56770f94ea","block_type":"box","text":"implementation of market-wide cash settlement protocols applicable to all market-standard credit","page_number":73,"box":{"x":117,"y":630,"width":722,"height":12}},{"id":"db05901b-0aca-42c2-9f6e-ee6b1dd2d7cc","block_type":"box","text":"default swaps. These initiatives are intended to reduce both the uncertainty as to the occurrence of","page_number":73,"box":{"x":116,"y":645,"width":739,"height":12}},{"id":"ecdd5868-2d06-493b-9593-9019733ff7c4","block_type":"box","text":"credit events and the risk of a “short squeeze” by providing that the ISDA Credit Derivatives","page_number":73,"box":{"x":116,"y":661,"width":679,"height":12}},{"id":"2b68892b-60a1-46b8-a6b6-fb9d7e70b534","block_type":"box","text":"Determinations Committee will make determinations as to whether a credit event has occurred,","page_number":73,"box":{"x":117,"y":676,"width":704,"height":11}},{"id":"eac8f203-9e57-4ff4-800c-276f17e393eb","block_type":"box","text":"establish an auction to determine a settlement price and identify the deliverable securities for purposes","page_number":73,"box":{"x":116,"y":692,"width":763,"height":12}},{"id":"a068bd52-c60a-4a72-872d-57122c1ea3a0","block_type":"box","text":"of the auction, although the ISDA Credit Derivatives Determinations Committee may in certain limited","page_number":73,"box":{"x":116,"y":707,"width":750,"height":12}},{"id":"4984ca57-8e56-43cb-b1ca-32c85facd83d","block_type":"box","text":"circumstances refrain from doing so. In the event the ISDA Credit Derivatives Determinations","page_number":73,"box":{"x":116,"y":723,"width":691,"height":12}},{"id":"c329478f-71e5-4810-ba22-d4bc6a755334","block_type":"box","text":"Committee cannot reach a timely resolution with respect to a “credit event” or otherwise does not","page_number":73,"box":{"x":117,"y":738,"width":718,"height":12}},{"id":"a38f4955-4080-4f65-aab7-281788fa58b5","block_type":"box","text":"establish a cash settlement auction, a Fund may not be able to realize the full value of the credit","page_number":73,"box":{"x":116,"y":754,"width":713,"height":12}},{"id":"aaad6149-8ac9-4d65-9803-52b3178f26fd","block_type":"box","text":"default swap upon a default by the reference entity. Furthermore, a Fund may enter into certain credit","page_number":73,"box":{"x":116,"y":769,"width":753,"height":12}},{"id":"bdc673b8-8419-47a5-aa6b-756cda9ec293","block_type":"box","text":"default swaps or similar instruments that may not be covered by these initiatives.","page_number":73,"box":{"x":116,"y":785,"width":598,"height":12}},{"id":"5179942b-8189-48e3-9a71-95d6849d04af","block_type":"box","text":"If a Fund is a buyer, it will lose the payments made under the terms of the credit default swap and","page_number":73,"box":{"x":117,"y":816,"width":723,"height":12}},{"id":"c5a1b0c9-3e4d-4475-810f-456c1e1f2bfd","block_type":"box","text":"recover nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value","page_number":73,"box":{"x":117,"y":831,"width":757,"height":12}},{"id":"a52ddb33-5fb8-4122-b95e-cef308b256db","block_type":"box","text":"of any deliverable obligation received by the Fund or the amount of cash settlement received by the","page_number":73,"box":{"x":116,"y":847,"width":744,"height":12}},{"id":"47d0d488-3bf1-46b2-909c-3e458041ab19","block_type":"box","text":"Fund pursuant to the relevant cash settlement auction, together with the up-front or periodic payments","page_number":73,"box":{"x":117,"y":862,"width":763,"height":12}},{"id":"08bfb288-4ada-4752-9906-87ef5b9902eb","block_type":"box","text":"previously received, may be less than the amount it pays to the buyer, resulting in a loss of value to the","page_number":73,"box":{"x":117,"y":878,"width":770,"height":12}},{"id":"681ba7ac-e2ef-4eaa-8f70-cc62a0ef2cd5","block_type":"box","text":"II-23","page_number":73,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4a4195b8-0494-4e8b-86a2-0ace598c0e94","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":73,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"c6252c8e-2258-4e10-972a-b62679c7764b","block_type":"box","text":"Fund. A Fund that sells credit default swaps incurs leveraged exposure to the credit of one or more","page_number":74,"box":{"x":117,"y":87,"width":739,"height":12}},{"id":"701f723e-693c-4c8c-b114-9af67aa6a4cb","block_type":"box","text":"reference entities and is subject to many of the same risks it would incur if it were holding debt","page_number":74,"box":{"x":117,"y":102,"width":703,"height":13}},{"id":"37f358fb-2729-4276-a15d-7dec46fd1169","block_type":"box","text":"securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":74,"box":{"x":116,"y":118,"width":742,"height":12}},{"id":"65ebeb96-8877-411c-a157-7f878317d8bb","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt","page_number":74,"box":{"x":116,"y":134,"width":764,"height":12}},{"id":"a31384af-e417-4be2-ba01-061dd00e8792","block_type":"box","text":"obligations. In the event the ISDA Credit Derivatives Determinations Committee does not establish a","page_number":74,"box":{"x":116,"y":149,"width":750,"height":12}},{"id":"caa59db8-4c5a-48c1-8fca-3f05c05a3ad6","block_type":"box","text":"cash settlement auction and identify the relevant deliverable securities or loans, the credit default swap","page_number":74,"box":{"x":116,"y":165,"width":769,"height":12}},{"id":"ff493d4c-7b15-4aa7-a898-3266b0668b3f","block_type":"box","text":"buyer will have broad discretion to select which of the reference entity’s debt obligations to deliver to","page_number":74,"box":{"x":117,"y":180,"width":748,"height":12}},{"id":"ebda98e3-597c-46e1-b6ac-55c20f473b6a","block_type":"box","text":"the Fund following a credit event and will likely choose the obligations with the lowest market value in","page_number":74,"box":{"x":116,"y":196,"width":755,"height":12}},{"id":"0c7afaab-3a17-4e4e-8de5-3990750f0241","block_type":"box","text":"order to maximize the payment obligations of the Fund. In addition, credit default swaps generally trade","page_number":74,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"ee9785cb-552d-44ee-9d69-0af6ab2ba1cc","block_type":"box","text":"on the basis of theoretical pricing and valuation models, which may not accurately value such swap","page_number":74,"box":{"x":116,"y":227,"width":742,"height":12}},{"id":"6ffe23f4-3bac-4d24-b064-63c0c0073977","block_type":"box","text":"positions when established or when subsequently traded or unwound under actual market conditions.","page_number":74,"box":{"x":117,"y":242,"width":756,"height":12}},{"id":"ecc2a4b4-dc77-4411-8da1-bd2651d137d8","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for","page_number":74,"box":{"x":117,"y":274,"width":719,"height":13}},{"id":"3fa81840-314a-4159-8704-338417b6e86f","block_type":"box","text":"clearing to regulated clearinghouses. See “—Derivatives—Regulation of Derivatives—Dodd-Frank","page_number":74,"box":{"x":116,"y":290,"width":734,"height":12}},{"id":"385d92bf-fca7-48dd-b385-fc95a40f7ae6","block_type":"box","text":"Regulations” above. Other single-name CDS and index CDS are permitted, although not required, to","page_number":74,"box":{"x":117,"y":305,"width":750,"height":13}},{"id":"06e4d860-6f08-4764-a430-faa6daf4db10","block_type":"box","text":"be cleared through regulated clearinghouses. The Funds clear all credit default swaps that are subject","page_number":74,"box":{"x":117,"y":321,"width":762,"height":12}},{"id":"1b99e30d-48a5-440c-a35a-87a84bbab049","block_type":"box","text":"to mandatory clearing and may voluntarily clear some, but not all, of the other credit default swaps not","page_number":74,"box":{"x":116,"y":336,"width":762,"height":13}},{"id":"54a70705-4992-4f4d-b629-ec4e01944bd3","block_type":"box","text":"subject to mandatory clearing. The Funds face counterparty risk with respect to the clearinghouse","page_number":74,"box":{"x":116,"y":352,"width":731,"height":12}},{"id":"73b7cf88-a596-4956-a72a-f3843ba1e553","block_type":"box","text":"when entering into cleared single-name CDS and cleared index CDS. The Funds face significant","page_number":74,"box":{"x":116,"y":367,"width":722,"height":13}},{"id":"fa467bf0-bafd-448f-8f37-0239b88b8a29","block_type":"box","text":"counterparty risk with respect to their counterparties to non-cleared credit default swaps and similar","page_number":74,"box":{"x":116,"y":383,"width":743,"height":12}},{"id":"1ae85696-735e-4107-96af-5f1342ecc1fe","block_type":"box","text":"instruments. A Fund typically will enter into non-cleared credit default swaps and similar instruments","page_number":74,"box":{"x":117,"y":398,"width":746,"height":13}},{"id":"22a53bec-e8cf-4ca2-b045-585ddbba194f","block_type":"box","text":"with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":74,"box":{"x":116,"y":414,"width":771,"height":12}},{"id":"b92d4083-d035-4062-b281-8c2baede92b8","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":74,"box":{"x":116,"y":430,"width":373,"height":12}},{"id":"5e0d7c5e-d353-4bd2-a139-54519bec33f6","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either","page_number":74,"box":{"x":117,"y":462,"width":755,"height":12}},{"id":"e13ba855-cfcd-45c3-a80c-090b036d11c0","block_type":"box","text":"as protection buyer or protection seller. While these contracts are similar in their operation to the","page_number":74,"box":{"x":116,"y":477,"width":720,"height":12}},{"id":"9eac8270-6365-492a-aed3-2078b91c6039","block_type":"box","text":"market-standard credit default swaps described above, they are less standardized and instead have","page_number":74,"box":{"x":117,"y":493,"width":746,"height":12}},{"id":"16eaa8d1-382e-43ea-806e-ea20f6083c8d","block_type":"box","text":"bespoke or tailored features. For example, as compared to market-standard credit defaults, the range","page_number":74,"box":{"x":117,"y":508,"width":758,"height":12}},{"id":"2b14095d-bd35-468e-ad2a-9d1701d20493","block_type":"box","text":"of “credit events” triggering settlement of such bespoke contracts may be narrower or broader, any","page_number":74,"box":{"x":116,"y":524,"width":737,"height":12}},{"id":"e2fb1b15-09f6-4eb8-a035-9a639e24f217","block_type":"box","text":"such triggered contracts are settled by physical delivery of the underlying security or loan to or by the","page_number":74,"box":{"x":116,"y":539,"width":755,"height":12}},{"id":"b02d2382-81bd-4589-8d60-0fc9a3cac9d3","block_type":"box","text":"Fund rather than by way of cash settlement, and there may be a wider range of securities as the","page_number":74,"box":{"x":117,"y":555,"width":719,"height":12}},{"id":"32914d51-c20e-46f8-90f4-15705ff05a7f","block_type":"box","text":"reference obligations and/or deliverable obligations.","page_number":74,"box":{"x":117,"y":570,"width":388,"height":12}},{"id":"405ff685-339d-4059-bb40-329f475c5592","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund","page_number":74,"box":{"x":117,"y":603,"width":752,"height":12}},{"id":"d713c69b-836e-4769-8f21-9dcb0c46526f","block_type":"box","text":"had invested in the reference obligation directly and are subject to significant credit risk, correlation","page_number":74,"box":{"x":117,"y":618,"width":738,"height":12}},{"id":"684a9986-26f3-4cd6-8e46-75d4527d63cb","block_type":"box","text":"risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":74,"box":{"x":117,"y":634,"width":684,"height":12}},{"id":"2b4c9064-4ec4-40f2-b522-0568ac6d2e01","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":74,"box":{"x":117,"y":658,"width":292,"height":12}},{"id":"30a6eb91-eab3-4664-b8db-f0826263b00b","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of","page_number":74,"box":{"x":410,"y":658,"width":450,"height":12}},{"id":"c227a1cf-87c5-4142-9ddf-63ef81df28a2","block_type":"box","text":"interest rate swaps and interest rate caps and floors. As described in further detail below, a Fund may","page_number":74,"box":{"x":117,"y":673,"width":755,"height":12}},{"id":"fa0c3bbb-a8e8-42f0-ad22-171c4584dbe1","block_type":"box","text":"enter into these transactions primarily to preserve a return or spread on a particular investment or","page_number":74,"box":{"x":116,"y":689,"width":724,"height":12}},{"id":"963a137f-c6e8-478b-9e0e-d9e69086bbcc","block_type":"box","text":"portion of its holdings, as a duration management technique, to protect against an increase in the price","page_number":74,"box":{"x":117,"y":704,"width":762,"height":12}},{"id":"4cd5ba3e-704c-46ff-b198-26335e85dfb5","block_type":"box","text":"of securities a Fund anticipates purchasing at a later date, or for speculation to increase returns.","page_number":74,"box":{"x":116,"y":720,"width":712,"height":12}},{"id":"b8cdd495-fc22-4eba-8310-75cec033bdfb","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted","page_number":74,"box":{"x":117,"y":752,"width":750,"height":12}},{"id":"19014dd5-8b1c-48a4-b713-91c2b2ae1fd0","block_type":"box","text":"for clearing to regulated clearinghouses. See “—Regulation of Derivatives—Dodd-Frank Regulations”","page_number":74,"box":{"x":116,"y":767,"width":752,"height":13}},{"id":"4539691d-ecbb-4d09-b4ed-985f307abd71","block_type":"box","text":"above. Other interest rate swaps are permitted, although not required, to be cleared. Most of the","page_number":74,"box":{"x":116,"y":783,"width":715,"height":12}},{"id":"c81551d6-b7ba-4da0-9021-efd6ad8c67dd","block_type":"box","text":"interest rate swaps entered into by the Funds are cleared. The Funds face counterparty risk with","page_number":74,"box":{"x":117,"y":798,"width":714,"height":13}},{"id":"8cce8709-7c36-4f73-b1d8-24f273ce3553","block_type":"box","text":"respect to the clearinghouse when entering into cleared interest rate swaps.","page_number":74,"box":{"x":117,"y":814,"width":561,"height":12}},{"id":"34047da8-cbbc-4d6b-bb22-5626bc7be53a","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest","page_number":74,"box":{"x":116,"y":846,"width":764,"height":12}},{"id":"1734186b-1431-4454-b3e8-f71354faa50f","block_type":"box","text":"rate swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared","page_number":74,"box":{"x":117,"y":862,"width":719,"height":12}},{"id":"f6898d12-9fca-43d8-9efe-28c452add65e","block_type":"box","text":"interest rate derivatives transactions are swap dealers and other creditworthy entities that have","page_number":74,"box":{"x":117,"y":878,"width":709,"height":11}},{"id":"c087e1fe-50aa-4fc2-b785-ab33239bfa52","block_type":"box","text":"II-24","page_number":74,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"bfc5c584-21c2-4e66-b7d8-8b16772c6e23","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":74,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"1a639887-d0b9-404d-bed4-68d4fcf05942","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support.","page_number":75,"box":{"x":116,"y":87,"width":746,"height":12}},{"id":"41e5cd94-23ed-436f-b320-dbb48eb7646f","block_type":"box","text":"If the Fund’s counterparty defaults on such a transaction, a Fund will have contractual remedies with","page_number":75,"box":{"x":117,"y":102,"width":749,"height":13}},{"id":"0181eabe-0857-4561-9542-4d879f7bd07c","block_type":"box","text":"respect to the transaction, but there can be no guarantee that the Fund will be successful in enforcing","page_number":75,"box":{"x":117,"y":118,"width":758,"height":12}},{"id":"bfcedb64-656d-4d4f-8d00-ae4104007235","block_type":"box","text":"such remedies. The market for interest rate swaps is relatively liquid in comparison with other similar","page_number":75,"box":{"x":116,"y":134,"width":751,"height":12}},{"id":"bd45a79c-b5d2-4654-8206-3b9da39f953e","block_type":"box","text":"instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":75,"box":{"x":117,"y":149,"width":732,"height":12}},{"id":"1c627b76-888f-4f5e-8abe-84f439629d68","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":75,"box":{"x":117,"y":165,"width":503,"height":11}},{"id":"119f8542-d715-4c8a-a52c-0d387d36a438","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a","page_number":75,"box":{"x":117,"y":196,"width":762,"height":12}},{"id":"337ef975-707a-4a38-9699-20128b3121a7","block_type":"box","text":"fixed or variable interest rate, index or asset in return for periodic payments from its counterparty based","page_number":75,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"ae2fcfda-5247-41c9-89a6-6d1c40acd43c","block_type":"box","text":"on a different fixed or variable interest rate, index or asset.","page_number":75,"box":{"x":116,"y":227,"width":439,"height":11}},{"id":"7ac81480-143c-4b4c-b362-72b3204122cc","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls","page_number":75,"box":{"x":116,"y":258,"width":746,"height":11}},{"id":"9fafae99-2a1b-46b1-9916-1c53aedb48f8","block_type":"box","text":"below a predetermined interest rate, to receive payments of interest on a notional principal amount","page_number":75,"box":{"x":117,"y":273,"width":736,"height":12}},{"id":"6ac4d64c-fc47-40f7-9b96-7d504b47bd8d","block_type":"box","text":"from the party selling such interest rate floor.","page_number":75,"box":{"x":116,"y":289,"width":337,"height":12}},{"id":"2b411d60-4a78-4faa-b512-8bd50cda88c4","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises","page_number":75,"box":{"x":116,"y":320,"width":746,"height":12}},{"id":"fbcf415c-8d6b-4387-b0bb-eb386f425ff3","block_type":"box","text":"above a predetermined interest rate, to receive payments of interest on a notional principal amount","page_number":75,"box":{"x":116,"y":335,"width":739,"height":12}},{"id":"48a8edcb-ee0c-46ad-b588-bdb99380ac3d","block_type":"box","text":"from the party selling such interest rate cap.","page_number":75,"box":{"x":116,"y":351,"width":331,"height":12}},{"id":"8e9a7987-5e90-41e4-8ab3-c4338a20f0f3","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":75,"box":{"x":116,"y":382,"width":764,"height":12}},{"id":"73383a56-cc45-48b0-8cd3-2a18c67661cb","block_type":"box","text":"commitments to pay or receive interest,","page_number":75,"box":{"x":116,"y":397,"width":298,"height":12}},{"id":"17198666-e630-4f18-9cb4-680afc430d26","block_type":"box","text":"e.g.","page_number":75,"box":{"x":415,"y":400,"width":26,"height":9}},{"id":"39cbc128-4745-492c-8d6f-966b217292bd","block_type":"box","text":", an exchange of fixed rate payments for floating rate","page_number":75,"box":{"x":444,"y":397,"width":396,"height":12}},{"id":"a7a3080c-52d1-45ea-a9a8-fd8ca9231630","block_type":"box","text":"payments. For example, if a Fund holds a mortgage-backed security with an interest rate that is reset","page_number":75,"box":{"x":117,"y":413,"width":755,"height":12}},{"id":"206cbde4-f989-4081-9fe4-e44fc44d36f1","block_type":"box","text":"only once each year, it may swap the right to receive interest at this fixed rate for the right to receive","page_number":75,"box":{"x":116,"y":428,"width":748,"height":12}},{"id":"5c664822-4986-4fc8-8226-3df37ff5152a","block_type":"box","text":"interest at a rate that is reset every week. This would enable a Fund to offset a decline in the value of","page_number":75,"box":{"x":117,"y":444,"width":755,"height":12}},{"id":"7a4fb3ad-db10-44f4-95e3-4c08d746a07e","block_type":"box","text":"the mortgage-backed security due to rising interest rates but would also limit its ability to benefit from","page_number":75,"box":{"x":116,"y":459,"width":753,"height":12}},{"id":"8cb80ed9-b11e-45b3-a3a0-8ce7bdfd213a","block_type":"box","text":"falling interest rates. Conversely, if a Fund holds a mortgage-backed security with an interest rate that","page_number":75,"box":{"x":116,"y":475,"width":761,"height":12}},{"id":"103517ef-d7ea-437d-a9d1-8080907e8d82","block_type":"box","text":"is reset every week and it would like to lock in what","page_number":75,"box":{"x":117,"y":490,"width":383,"height":12}},{"id":"9746fc0b-f064-41b7-80ba-7e008e528958","block_type":"box","text":"it believes to be a high interest rate for one year, it","page_number":75,"box":{"x":501,"y":490,"width":377,"height":12}},{"id":"369d3565-8461-4c9e-b9ae-c354aa8f8946","block_type":"box","text":"may swap the right to receive interest at this variable weekly rate for the right to receive interest at a","page_number":75,"box":{"x":117,"y":506,"width":746,"height":12}},{"id":"7c34fcc6-8f8f-429b-87af-d43d4186d722","block_type":"box","text":"rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to","page_number":75,"box":{"x":117,"y":521,"width":733,"height":12}},{"id":"b5ffcc18-aedd-4d7e-a4aa-9ce6b62c9933","block_type":"box","text":"falling interest rates and may permit the Fund to enhance its income through the positive differential","page_number":75,"box":{"x":116,"y":537,"width":745,"height":12}},{"id":"7b309cb6-a98e-41ed-9e05-9819f05c159a","block_type":"box","text":"between one week and one year interest rates, but would preclude it from taking full advantage of","page_number":75,"box":{"x":117,"y":552,"width":729,"height":12}},{"id":"1e8da4a0-4f6d-44d7-b106-0d95008a1216","block_type":"box","text":"rising interest rates.","page_number":75,"box":{"x":117,"y":568,"width":150,"height":12}},{"id":"0abf8a46-2116-453f-ae93-b1fb214ee246","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary","page_number":75,"box":{"x":117,"y":599,"width":746,"height":12}},{"id":"a42b83c9-83ae-4e56-9b8c-b8f8830b2b5e","block_type":"box","text":"income or, in certain circumstances, as long term capital gains to shareholders.","page_number":75,"box":{"x":117,"y":614,"width":593,"height":12}},{"id":"a9fa9648-2d4d-44b0-b5aa-d1155f31b302","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk,","page_number":75,"box":{"x":117,"y":645,"width":751,"height":12}},{"id":"42fc832d-1d4e-47c8-9ac0-cc9fe7151fc8","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":75,"box":{"x":117,"y":661,"width":538,"height":12}},{"id":"d68cbbbf-9194-4945-8ce4-54dbf728516c","block_type":"box","text":"Total Return Swaps.","page_number":75,"box":{"x":118,"y":692,"width":148,"height":12}},{"id":"065efb11-603f-40c3-a5b4-7dab715c9f8d","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic","page_number":75,"box":{"x":273,"y":692,"width":565,"height":12}},{"id":"666bc524-498e-423e-9615-f839071843b8","block_type":"box","text":"payments to the other party based on the return of the assets underlying the contract in exchange for","page_number":75,"box":{"x":117,"y":707,"width":750,"height":12}},{"id":"4f534f34-837d-46df-8fb4-c56ed84d8f10","block_type":"box","text":"periodic payments based on a fixed or variable interest rate or the total return from different underlying","page_number":75,"box":{"x":117,"y":723,"width":759,"height":12}},{"id":"5cb864ab-3a98-4c8f-8ce4-16efcd0b8382","block_type":"box","text":"assets. The return of the assets underlying the contract includes both the income generated by the","page_number":75,"box":{"x":116,"y":738,"width":732,"height":12}},{"id":"dd2efab4-110f-4ca2-b05b-3dea5b17c8a4","block_type":"box","text":"asset and the change in market value of the asset. The asset underlying the contract may include a","page_number":75,"box":{"x":116,"y":754,"width":737,"height":12}},{"id":"5c4af3b4-ebe2-4db5-b0f6-34fae9dbac89","block_type":"box","text":"specified security, basket of securities or securities indices. Total return swaps on a specified security,","page_number":75,"box":{"x":116,"y":769,"width":757,"height":12}},{"id":"c0b71644-6530-49c2-9123-b35f61814ea9","block_type":"box","text":"basket of securities or securities indices may sometimes be referred to as “contracts for difference.”","page_number":75,"box":{"x":117,"y":785,"width":738,"height":12}},{"id":"8d2d0c15-524a-4bc2-b900-25f47b395227","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking","page_number":75,"box":{"x":116,"y":816,"width":738,"height":12}},{"id":"3fd9d3da-3656-445c-ae91-c94ed236411a","block_type":"box","text":"physical custody of such security or investing directly in such market. Upon entering into a total return","page_number":75,"box":{"x":117,"y":831,"width":758,"height":12}},{"id":"e666dfab-3cdb-4e49-bccb-297af4bbda94","block_type":"box","text":"swap, a Fund is required to deposit initial margin but the parties do not exchange the notional amount.","page_number":75,"box":{"x":116,"y":847,"width":763,"height":12}},{"id":"26528512-9a6a-47f8-b896-c1df156858d2","block_type":"box","text":"As a result, total return swaps may effectively add leverage to the Fund’s portfolio because the Fund","page_number":75,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"8d6f0cf4-6681-4878-976a-2a87b75619e3","block_type":"box","text":"would be subject to investment exposure on the notional amount of the swap.","page_number":75,"box":{"x":116,"y":878,"width":580,"height":12}},{"id":"49f84bca-78b9-45ce-b59a-89ac88a69281","block_type":"box","text":"II-25","page_number":75,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"7c5c21c9-f50e-4d87-ace5-f19c32a6b8b2","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":75,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"4f30a28a-4fdd-4bf8-a998-da9756784904","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk","page_number":76,"box":{"x":116,"y":87,"width":743,"height":12}},{"id":"f04b1f41-18b5-4f2e-bcac-1c4f56936d57","block_type":"box","text":"and counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":76,"box":{"x":116,"y":102,"width":488,"height":13}},{"id":"28c4a8cf-ccd4-4d07-9189-ea663057560a","block_type":"box","text":"Options","page_number":76,"box":{"x":117,"y":143,"width":57,"height":12}},{"id":"b0deab46-52d2-42bb-a98e-07b18cf4890e","block_type":"box","text":".","page_number":76,"box":{"x":175,"y":151,"width":8,"height":1}},{"id":"fa3ad6fb-7039-4a70-a62a-4b912644c347","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":76,"box":{"x":117,"y":175,"width":337,"height":12}},{"id":"9cf42220-e554-4466-817b-607cd76d0a21","block_type":"box","text":"A Fund may engage in transactions in options on","page_number":76,"box":{"x":454,"y":175,"width":370,"height":12}},{"id":"74e276f1-0752-4355-bf11-a76e995f441b","block_type":"box","text":"individual securities, baskets of securities or securities indices, or particular measurements of value or","page_number":76,"box":{"x":117,"y":191,"width":761,"height":12}},{"id":"94fe1436-b4c6-4c86-94ef-475f51a61528","block_type":"box","text":"rates, such as an index of the price of treasury securities or an index representative of short-term","page_number":76,"box":{"x":117,"y":206,"width":724,"height":12}},{"id":"5337b470-6b8f-41d9-8c4b-205f427d03f8","block_type":"box","text":"interest rates. Such investments may be made on exchanges and in the OTC markets. In general,","page_number":76,"box":{"x":117,"y":222,"width":732,"height":12}},{"id":"b3ecc96e-7a1a-4a1b-a194-997e2bfd464e","block_type":"box","text":"exchange-traded options have standardized exercise prices and expiration dates and require the","page_number":76,"box":{"x":116,"y":237,"width":723,"height":12}},{"id":"b421e2c2-e69d-4ca3-9dd8-9a1ccb4a16cf","block_type":"box","text":"parties to post margin against their obligations, and the performance of the parties’ obligations in","page_number":76,"box":{"x":117,"y":253,"width":720,"height":12}},{"id":"97324dff-db86-4f73-a0f2-f505784470ad","block_type":"box","text":"connection with such options is guaranteed by the exchange or a related clearing corporation. OTC","page_number":76,"box":{"x":116,"y":268,"width":742,"height":12}},{"id":"42b4a55b-55ea-4cc3-a05c-fe41698aa4d6","block_type":"box","text":"options have more flexible terms negotiated between the buyer and the seller, but are subject to","page_number":76,"box":{"x":116,"y":284,"width":717,"height":12}},{"id":"40f5f2c2-b246-438f-8105-6f452e429297","block_type":"box","text":"greater credit risk. OTC options also involve greater illiquidity risk.","page_number":76,"box":{"x":116,"y":299,"width":493,"height":12}},{"id":"54552fcc-bace-449e-b366-93d31d89e29f","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in","page_number":76,"box":{"x":116,"y":331,"width":709,"height":12}},{"id":"bf422e03-4818-4b25-93b9-b531741298b2","block_type":"box","text":"different payment structures and/or expirations (commonly referred to as exotic options). For example,","page_number":76,"box":{"x":116,"y":347,"width":765,"height":12}},{"id":"8d2c9ebf-d3f3-4544-a305-62d833ec9992","block_type":"box","text":"barrier options are exotic options that can only be exercised (or automatically expire) if the price of the","page_number":76,"box":{"x":117,"y":362,"width":761,"height":12}},{"id":"4e406db1-a4e5-4795-9ffa-0c202e67af34","block_type":"box","text":"underlying asset reaches one or more predetermined levels on or before expiration. Binary options are","page_number":76,"box":{"x":117,"y":378,"width":765,"height":12}},{"id":"6e061d49-06f4-40f0-809c-f7ef04667e14","block_type":"box","text":"another example of exotic options which have a fixed all-or-nothing payout if one or more","page_number":76,"box":{"x":116,"y":393,"width":666,"height":12}},{"id":"b806a246-1ef9-46f6-a4c8-e91695f0df72","block_type":"box","text":"predetermined conditions are met. Exotic options are typically traded in OTC markets.","page_number":76,"box":{"x":117,"y":409,"width":641,"height":12}},{"id":"a5550225-2442-4284-bc83-e97869ed62b9","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example,","page_number":76,"box":{"x":116,"y":441,"width":770,"height":12}},{"id":"67aca80c-48b4-4a2d-af02-89fba34a2a09","block_type":"box","text":"there are significant differences between the securities and options markets that could result in an","page_number":76,"box":{"x":116,"y":457,"width":731,"height":12}},{"id":"55f69d48-e4e7-415e-9ea9-8795eb292aaa","block_type":"box","text":"imperfect correlation between these markets, causing a given transaction not to achieve its objectives.","page_number":76,"box":{"x":117,"y":472,"width":763,"height":12}},{"id":"a4034833-da7a-4a34-9fab-a4f4a80688d6","block_type":"box","text":"In addition, a liquid market for particular options, whether traded OTC or on a national securities","page_number":76,"box":{"x":117,"y":488,"width":716,"height":12}},{"id":"d542efd7-3cf6-47f2-b8b7-df0c2fdc5caf","block_type":"box","text":"exchange (“Exchange”) may be absent for reasons which include the following: there may be","page_number":76,"box":{"x":116,"y":503,"width":695,"height":12}},{"id":"c0101592-c9aa-447d-8aa0-0486354a144e","block_type":"box","text":"insufficient trading interest in certain options; restrictions may be imposed by an Exchange on opening","page_number":76,"box":{"x":117,"y":519,"width":763,"height":12}},{"id":"1c9fb564-8068-4d39-ae8e-59fb03dbb1ea","block_type":"box","text":"transactions or closing transactions or both; trading halts, suspensions or other restrictions may be","page_number":76,"box":{"x":116,"y":534,"width":737,"height":12}},{"id":"8973e123-8b44-4529-9402-8306a3222356","block_type":"box","text":"imposed with respect to particular classes or series of options or underlying securities; unusual or","page_number":76,"box":{"x":117,"y":550,"width":727,"height":12}},{"id":"4cea662d-2a5a-4106-9e48-9a0b36dd8a5d","block_type":"box","text":"unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an","page_number":76,"box":{"x":117,"y":565,"width":708,"height":12}},{"id":"e838bbc2-e2ab-4331-806a-de1eb58e5a3b","block_type":"box","text":"Exchange or the Options Clearing Corporation may not at all times be adequate to handle current","page_number":76,"box":{"x":117,"y":581,"width":728,"height":12}},{"id":"903ea760-842a-4b37-ad16-66413d5a4ce1","block_type":"box","text":"trading volume; or one or more Exchanges could, for economic or other reasons, decide or be","page_number":76,"box":{"x":116,"y":596,"width":703,"height":12}},{"id":"3cb2c455-98d9-42f2-9fbf-921d63ee6679","block_type":"box","text":"compelled at some future date to discontinue the trading of options (or a particular class or series of","page_number":76,"box":{"x":116,"y":612,"width":746,"height":12}},{"id":"b2d7014a-93a0-4d63-b8cf-6794b6bb4812","block_type":"box","text":"options), in which event the market on that Exchange (or in that class or series of options) would cease","page_number":76,"box":{"x":116,"y":627,"width":770,"height":12}},{"id":"caabe19b-4d57-4d0b-adf6-0fc6c0f21509","block_type":"box","text":"to exist, although outstanding options that had been issued by the Options Clearing Corporation as a","page_number":76,"box":{"x":116,"y":643,"width":753,"height":12}},{"id":"bc0d7dbf-0377-4d0c-8449-a14e3f9c023a","block_type":"box","text":"result of trades on that Exchange would continue to be exercisable in accordance with their terms.","page_number":76,"box":{"x":117,"y":658,"width":732,"height":12}},{"id":"e6705d9c-b178-42d2-a995-118991e74183","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or","page_number":76,"box":{"x":117,"y":690,"width":745,"height":12}},{"id":"42b8b33e-b3af-4d28-8c29-8cc338c8dc33","block_type":"box","text":"put options on the same asset that may be bought or written by a single investor, whether acting alone","page_number":76,"box":{"x":117,"y":706,"width":759,"height":12}},{"id":"66b0c2f7-3878-4e38-8c3c-af235d4e19e0","block_type":"box","text":"or in concert with others (regardless of whether such options are written on the same or different","page_number":76,"box":{"x":116,"y":721,"width":716,"height":12}},{"id":"2b33e93b-6b73-4b4a-b3c2-f5755884f465","block_type":"box","text":"exchanges or are held or written on one or more accounts or through one or more brokers). Under","page_number":76,"box":{"x":116,"y":737,"width":730,"height":12}},{"id":"ffa43b18-7059-4f88-b74a-3037b1d6afae","block_type":"box","text":"these limitations, option positions of all investment companies advised by the Manager are combined","page_number":76,"box":{"x":116,"y":752,"width":749,"height":12}},{"id":"20967aad-7dee-42f5-9a7c-30f192430f0f","block_type":"box","text":"for purposes of these limits. Pursuant to these limitations, an exchange may order the liquidation of","page_number":76,"box":{"x":116,"y":768,"width":736,"height":12}},{"id":"44c76b87-27eb-4fa0-9b36-82ba4e26f01d","block_type":"box","text":"positions and may impose other sanctions or restrictions. These position limits may restrict the number","page_number":76,"box":{"x":117,"y":783,"width":762,"height":12}},{"id":"b236b9c4-d88f-4e1a-a36f-de3cf13fc335","block_type":"box","text":"of listed options that a Fund may buy or sell.","page_number":76,"box":{"x":116,"y":799,"width":328,"height":12}},{"id":"6d3259c0-5876-429e-be11-aac443699cc1","block_type":"box","text":"Call Options.","page_number":76,"box":{"x":117,"y":831,"width":100,"height":12}},{"id":"e00a30b4-71f0-4359-8ca3-c3bd84824ee4","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in","page_number":76,"box":{"x":217,"y":831,"width":629,"height":12}},{"id":"bb1f70e5-93fb-4c58-97b5-0426501c0583","block_type":"box","text":"which it may invest. A purchased call option gives a Fund the right to buy, and obligates the seller to","page_number":76,"box":{"x":116,"y":847,"width":748,"height":12}},{"id":"4552e7bf-9d90-4d30-951a-cfbae5401184","block_type":"box","text":"sell, the underlying security at the exercise price at any time during the option period. A Fund also may","page_number":76,"box":{"x":116,"y":862,"width":767,"height":12}},{"id":"7bc21f40-993e-4364-80b9-a12eb5e20a5d","block_type":"box","text":"purchase and sell call options on indices. Index options are similar to options on securities except that,","page_number":76,"box":{"x":117,"y":878,"width":765,"height":11}},{"id":"a1d67ce4-0c40-4914-b034-c88c161b85aa","block_type":"box","text":"II-26","page_number":76,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c614fbeb-ddc5-4df0-8b20-da5ed6447bec","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":76,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"44e36866-1ff6-4ee2-8b81-a2999f39635b","block_type":"box","text":"rather than taking or making delivery of securities underlying the option at a specified price upon","page_number":77,"box":{"x":117,"y":87,"width":718,"height":12}},{"id":"d284f442-eca5-4499-95d2-725adab365c0","block_type":"box","text":"exercise, an index option gives the holder the right to receive cash upon exercise of the option if the","page_number":77,"box":{"x":116,"y":102,"width":745,"height":13}},{"id":"4b809309-73f9-4461-8568-acf1c458bfb3","block_type":"box","text":"level of the index upon which the option is based is greater than the exercise price of the option.","page_number":77,"box":{"x":117,"y":118,"width":716,"height":12}},{"id":"40c290ea-1b58-495f-8208-f8d2104ad768","block_type":"box","text":"A written call option is covered if a Fund holds a call on the same security or index as the call written","page_number":77,"box":{"x":116,"y":146,"width":750,"height":12}},{"id":"f8508efd-1214-4b70-9dda-c83977a835de","block_type":"box","text":"where the exercise price of the call held is (i) equal to or less than the exercise price of the call written,","page_number":77,"box":{"x":116,"y":161,"width":765,"height":13}},{"id":"3702088d-0ad4-46b8-85f2-60dddc280aaa","block_type":"box","text":"or (ii) greater than the exercise price of the call written provided the difference is maintained by the","page_number":77,"box":{"x":116,"y":177,"width":736,"height":12}},{"id":"0157a526-ca98-4962-8975-b7ed61b73bdb","block_type":"box","text":"Fund in assets which are not considered illiquid investments under the Funds’ Liquidity Program (as","page_number":77,"box":{"x":117,"y":192,"width":745,"height":13}},{"id":"b0358d0b-1ea8-43fd-817b-5813e05088b2","block_type":"box","text":"defined below) (“liquid assets”) designated on the Manager’s or the sub-adviser’s books and records to","page_number":77,"box":{"x":116,"y":208,"width":769,"height":12}},{"id":"3672028f-d5ae-49fc-b5c6-9ce51b58e789","block_type":"box","text":"the extent required by Commission guidelines.","page_number":77,"box":{"x":116,"y":223,"width":350,"height":13}},{"id":"d97eac5f-15e0-4a2c-8b93-2edd2366003f","block_type":"box","text":"A Fund may write (","page_number":77,"box":{"x":116,"y":251,"width":140,"height":12}},{"id":"6ab7b123-e9bd-479e-869b-cd268f3612b2","block_type":"box","text":"i.e.","page_number":77,"box":{"x":257,"y":251,"width":21,"height":10}},{"id":"c459d6e1-8c65-49d9-acbe-68f73920bd24","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest","page_number":77,"box":{"x":281,"y":251,"width":599,"height":12}},{"id":"0a7c94eb-ad7c-44e0-b2a9-9e7bb42d471d","block_type":"box","text":"and to enter into closing purchase transactions with respect to certain of such options. A covered call","page_number":77,"box":{"x":116,"y":267,"width":754,"height":12}},{"id":"f97c2151-0864-4161-a11f-db9dac80486d","block_type":"box","text":"option is an option in which a Fund, in return for a premium, gives another party a right to buy specified","page_number":77,"box":{"x":116,"y":282,"width":769,"height":12}},{"id":"17e7d4f1-3786-4e3f-92a8-e02e37a6e3ee","block_type":"box","text":"securities owned by the Fund at a specified future date and price set at the time of the contract. The","page_number":77,"box":{"x":116,"y":298,"width":747,"height":12}},{"id":"e5410c60-0bdb-400c-b9a5-2117b5dbec55","block_type":"box","text":"principal reason for writing call options is the attempt to realize, through the receipt of premiums, a","page_number":77,"box":{"x":117,"y":313,"width":733,"height":12}},{"id":"90acc810-cb0d-4cee-b13b-c1150294e4b7","block_type":"box","text":"greater return than would be realized on the securities alone. By writing covered call options, a Fund","page_number":77,"box":{"x":116,"y":329,"width":750,"height":12}},{"id":"c76d8dcc-ff47-4c5f-a973-4162fac878bd","block_type":"box","text":"gives up the opportunity, while the option is in effect, to profit from any price increase in the underlying","page_number":77,"box":{"x":116,"y":344,"width":763,"height":12}},{"id":"f9d64fb7-58af-49e6-a45c-d7eb4d721121","block_type":"box","text":"security above the option exercise price. In addition, a Fund’s ability to sell the underlying security will","page_number":77,"box":{"x":116,"y":360,"width":758,"height":12}},{"id":"a5337595-f321-4f6a-ac04-d80a26076208","block_type":"box","text":"be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":77,"box":{"x":117,"y":375,"width":738,"height":12}},{"id":"c6751ad3-358e-40a7-b8f7-381b57d59c04","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an","page_number":77,"box":{"x":116,"y":391,"width":748,"height":12}},{"id":"23c47553-3f00-42e3-af5b-cc24594ddc96","block_type":"box","text":"offsetting purchase of an identical option prior to the expiration of the option it has written. Covered call","page_number":77,"box":{"x":116,"y":406,"width":768,"height":12}},{"id":"279d22eb-da58-4c78-89a6-b0e2cfd365a2","block_type":"box","text":"options also serve as a partial hedge to the extent of the premium received against the price of the","page_number":77,"box":{"x":116,"y":422,"width":736,"height":12}},{"id":"c493f8e4-28bf-4cf5-8100-e2ac1ea7f95e","block_type":"box","text":"underlying security declining.","page_number":77,"box":{"x":117,"y":438,"width":219,"height":11}},{"id":"37885771-a95b-4027-8aac-f7c1d5457116","block_type":"box","text":"A Fund may write (","page_number":77,"box":{"x":116,"y":465,"width":140,"height":12}},{"id":"cea0fd1f-f238-4222-8b28-6ba862263321","block_type":"box","text":"i.e.","page_number":77,"box":{"x":257,"y":465,"width":21,"height":10}},{"id":"f78e1625-79a4-4f0d-be07-a93d57666fa0","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest","page_number":77,"box":{"x":281,"y":465,"width":590,"height":12}},{"id":"a99f1b88-2fd4-4741-844b-7907b7c60636","block_type":"box","text":"but that are not currently held by the Fund. The principal reason for writing uncovered call options is to","page_number":77,"box":{"x":117,"y":481,"width":763,"height":12}},{"id":"cd9b3e91-51db-4f9a-b07c-00c123fa58ce","block_type":"box","text":"realize income without committing capital to the ownership of the underlying securities or instruments.","page_number":77,"box":{"x":117,"y":496,"width":758,"height":12}},{"id":"1d9d6b26-2c1d-4821-8eb1-ccd397f548d4","block_type":"box","text":"When writing uncovered call options, a Fund must deposit and maintain sufficient margin with the","page_number":77,"box":{"x":116,"y":512,"width":727,"height":12}},{"id":"6a5d861c-a4fb-4e44-a3fd-56bddbab6230","block_type":"box","text":"broker-dealer through which it made the uncovered call option as collateral to ensure that the securities","page_number":77,"box":{"x":117,"y":527,"width":771,"height":12}},{"id":"e95693e8-eeca-4407-a1de-07fa8e816096","block_type":"box","text":"can be purchased for delivery if and when the option is exercised. During periods of declining","page_number":77,"box":{"x":116,"y":543,"width":697,"height":12}},{"id":"2d39a5b6-ab5b-4aa8-b3bc-48f94dbcc09d","block_type":"box","text":"securities prices or when prices are stable, writing uncovered calls can be a profitable strategy to","page_number":77,"box":{"x":116,"y":558,"width":724,"height":12}},{"id":"eba5f6e9-4ccc-4c04-b919-7db68b284ec6","block_type":"box","text":"increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls","page_number":77,"box":{"x":117,"y":574,"width":724,"height":12}},{"id":"0ba5f52b-0957-4d16-a4e7-e8e361f0d528","block_type":"box","text":"because there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls","page_number":77,"box":{"x":117,"y":589,"width":771,"height":12}},{"id":"b42eb06d-6dfa-400f-a470-1af2fa64b938","block_type":"box","text":"have speculative characteristics and the potential for loss is unlimited. When an uncovered call is","page_number":77,"box":{"x":117,"y":605,"width":725,"height":12}},{"id":"c6f96363-354e-4299-a02f-6c73c1b4e779","block_type":"box","text":"exercised, a Fund must purchase the underlying security to meet its call obligation. There is also a risk,","page_number":77,"box":{"x":116,"y":620,"width":771,"height":12}},{"id":"617495bb-6afa-48a9-8ffc-0412c9308963","block_type":"box","text":"especially with preferred and debt securities that lack sufficient liquidity, that the securities may not be","page_number":77,"box":{"x":116,"y":636,"width":760,"height":12}},{"id":"bf68d2c6-bb8a-4004-9a88-b551f38c7111","block_type":"box","text":"available for purchase. If the purchase price exceeds the exercise price, a Fund will lose the difference.","page_number":77,"box":{"x":116,"y":651,"width":772,"height":12}},{"id":"911cf6e1-8f1b-41c9-a835-9bc8f9ef9ad9","block_type":"box","text":"Put Options.","page_number":77,"box":{"x":116,"y":679,"width":91,"height":12}},{"id":"7d93ecc9-28fd-4f0c-a0b5-0c34502b5b8f","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its","page_number":77,"box":{"x":213,"y":679,"width":642,"height":12}},{"id":"6f0dd487-2e33-4ba0-b55e-93b518d507bf","block_type":"box","text":"securities or to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying","page_number":77,"box":{"x":116,"y":695,"width":764,"height":12}},{"id":"c1d004e1-edb5-4e7a-8983-c54305f6e7d2","block_type":"box","text":"securities or instruments at the exercise price, thus limiting the Fund’s risk of loss through a decline in","page_number":77,"box":{"x":116,"y":710,"width":754,"height":12}},{"id":"553620d7-d7e9-4e88-b968-88d38ec1e3c2","block_type":"box","text":"the market value of the securities or instruments until the put option expires. The amount of any","page_number":77,"box":{"x":116,"y":726,"width":709,"height":12}},{"id":"8260aa65-bb9a-4ebe-adab-a7e7d9d612f6","block_type":"box","text":"appreciation in the value of the underlying securities or instruments will be partially offset by the","page_number":77,"box":{"x":116,"y":741,"width":708,"height":12}},{"id":"c84e55d7-254b-42c1-b02d-8266999122e1","block_type":"box","text":"amount of the premium paid for the put option and any related transaction costs. Prior to its expiration,","page_number":77,"box":{"x":116,"y":757,"width":758,"height":12}},{"id":"032eb03c-b87d-4605-acfd-2fbb047bc3e3","block_type":"box","text":"a put option may be sold in a closing sale transaction and profit or loss from the sale will depend on","page_number":77,"box":{"x":116,"y":772,"width":737,"height":12}},{"id":"cb9aba04-d8f3-45f4-9194-8dd56a463c80","block_type":"box","text":"whether the amount received is more or less than the premium paid for the put option plus the related","page_number":77,"box":{"x":116,"y":788,"width":753,"height":12}},{"id":"878a8dda-8f61-409f-aa13-cb46fc1af3ee","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an","page_number":77,"box":{"x":116,"y":803,"width":719,"height":12}},{"id":"4b6e8837-b34d-4948-94cc-ebc52dbb488d","block_type":"box","text":"option by means of an offsetting sale of an identical option prior to the expiration of the option it has","page_number":77,"box":{"x":116,"y":819,"width":737,"height":12}},{"id":"3ba842d0-eb20-4d41-ac01-c40a44ff0050","block_type":"box","text":"purchased. A Fund also may purchase uncovered put options.","page_number":77,"box":{"x":117,"y":834,"width":467,"height":12}},{"id":"58be1092-aad5-44ee-b8bd-f5061f98e743","block_type":"box","text":"A Fund also may write (","page_number":77,"box":{"x":116,"y":862,"width":176,"height":12}},{"id":"11748188-b662-42a2-8db2-2ee94b16364a","block_type":"box","text":"i.e.","page_number":77,"box":{"x":293,"y":862,"width":20,"height":10}},{"id":"b7e60fbb-1fd3-45a1-9361-b7b1be6c646d","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held","page_number":77,"box":{"x":316,"y":862,"width":563,"height":12}},{"id":"7ac79a4b-265e-42a0-a82d-29f965259621","block_type":"box","text":"by the Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":77,"box":{"x":117,"y":878,"width":763,"height":12}},{"id":"5fa36758-615e-435c-ab8c-cf5d6b8a63f5","block_type":"box","text":"II-27","page_number":77,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2d0c8064-0bd7-488b-a943-247261e0552d","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":77,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"c2b4fb5c-077b-4efb-8bab-e772ca30e340","block_type":"box","text":"A Fund also may write (","page_number":78,"box":{"x":116,"y":87,"width":176,"height":12}},{"id":"2f3e878e-7ae6-4b57-8753-8da06b3f32d0","block_type":"box","text":"i.e.","page_number":78,"box":{"x":293,"y":87,"width":20,"height":10}},{"id":"24338c0d-d557-407a-addd-bcf00f784804","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may","page_number":78,"box":{"x":316,"y":87,"width":540,"height":12}},{"id":"aea7f0c7-b388-4df2-859c-fe051c271bf0","block_type":"box","text":"invest but with respect to which the Fund does not currently have a corresponding short position or has","page_number":78,"box":{"x":117,"y":103,"width":769,"height":12}},{"id":"c9fa1585-48d6-4518-bc82-b50d191eb895","block_type":"box","text":"not deposited as collateral cash equal to the exercise value of the put option with the broker-dealer","page_number":78,"box":{"x":117,"y":118,"width":737,"height":12}},{"id":"c1e51597-bc95-4061-a0f5-78c6760f85fa","block_type":"box","text":"through which it made the uncovered put option. The principal reason for writing uncovered put options","page_number":78,"box":{"x":116,"y":134,"width":769,"height":12}},{"id":"aba06ed2-e136-4b94-aea6-be7c8c018233","block_type":"box","text":"is to receive premium income and to acquire such securities or instruments at a net cost below the","page_number":78,"box":{"x":117,"y":149,"width":734,"height":12}},{"id":"8271dcef-3715-463e-9111-e87aef8a63c1","block_type":"box","text":"current market value. A Fund has the obligation to buy the securities or instruments at an agreed upon","page_number":78,"box":{"x":116,"y":165,"width":765,"height":12}},{"id":"69a68ce3-80ec-4851-bde5-2cd70a6b0c49","block_type":"box","text":"price if the price of the securities or instruments decreases below the exercise price. If the price of the","page_number":78,"box":{"x":117,"y":180,"width":759,"height":12}},{"id":"699ffa04-559b-49e4-8698-d399e74a9ba8","block_type":"box","text":"securities or instruments increases during the option period, the option will expire worthless and a","page_number":78,"box":{"x":116,"y":196,"width":729,"height":12}},{"id":"5a21bdda-e952-4773-8eb3-8c1dc673aee5","block_type":"box","text":"Fund will retain the premium and will not have to purchase the securities or instruments at the exercise","page_number":78,"box":{"x":117,"y":211,"width":767,"height":12}},{"id":"1aec739c-a7ed-4a0c-8b87-5711783b3593","block_type":"box","text":"price.","page_number":78,"box":{"x":117,"y":227,"width":45,"height":11}},{"id":"a389a035-2aff-4fde-9e8a-06375ebb3775","block_type":"box","text":"Options on Government National Mortgage Association (“GNMA”) Certificates.","page_number":78,"box":{"x":117,"y":258,"width":586,"height":12}},{"id":"8bc54cb0-8607-4647-8c05-551adb063980","block_type":"box","text":"The following","page_number":78,"box":{"x":704,"y":258,"width":103,"height":12}},{"id":"7956d675-a705-4c66-9941-e17796f5d3a7","block_type":"box","text":"information relates to the unique characteristics of options on GNMA Certificates. Since the remaining","page_number":78,"box":{"x":117,"y":273,"width":759,"height":12}},{"id":"6540f821-6ead-44f1-acdc-cd1714edc822","block_type":"box","text":"principal balance of GNMA Certificates declines each month as a result of mortgage payments, a","page_number":78,"box":{"x":117,"y":289,"width":725,"height":12}},{"id":"929469e3-cd8a-4ba7-9ff3-7a836a63a6a9","block_type":"box","text":"Fund, as a writer of a GNMA call holding GNMA Certificates as “cover” to satisfy its delivery obligation","page_number":78,"box":{"x":117,"y":304,"width":761,"height":12}},{"id":"e54b810a-f85c-490f-8af3-b3ed542ce433","block_type":"box","text":"in the event of exercise, may find that the GNMA Certificates it holds no longer have a sufficient","page_number":78,"box":{"x":117,"y":320,"width":714,"height":12}},{"id":"0fb98141-d4af-4c9f-929f-54d99ba01bb4","block_type":"box","text":"remaining principal balance for this purpose. Should this occur, a Fund will purchase additional GNMA","page_number":78,"box":{"x":117,"y":335,"width":763,"height":12}},{"id":"ccc40c3b-46c7-405f-942c-24cb368d4aa9","block_type":"box","text":"Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash market in order","page_number":78,"box":{"x":117,"y":351,"width":754,"height":12}},{"id":"a970b291-cdc5-49f0-b2dd-fa29b94ce7d4","block_type":"box","text":"to maintain its “cover.”","page_number":78,"box":{"x":116,"y":366,"width":170,"height":10}},{"id":"b7c11b87-6447-4060-9986-a74502b99a9c","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month","page_number":78,"box":{"x":116,"y":397,"width":764,"height":12}},{"id":"0006a3c0-943e-48af-b10d-786b63325e50","block_type":"box","text":"may cease to represent cover for the option in the event of a decline in the GNMA coupon rate at","page_number":78,"box":{"x":117,"y":413,"width":724,"height":12}},{"id":"bf068bfb-c8a2-49ff-8174-79ccf135a76a","block_type":"box","text":"which new pools are originated under the FHA/VA loan ceiling in effect at any given time. If this should","page_number":78,"box":{"x":116,"y":428,"width":765,"height":12}},{"id":"4ca0a568-00b2-4e46-998a-d8023cf626c8","block_type":"box","text":"occur, a Fund will no longer be covered, and the Fund will either enter into a closing purchase","page_number":78,"box":{"x":116,"y":444,"width":701,"height":12}},{"id":"8dcc0cf6-2a3a-4405-86dd-bc0628109c16","block_type":"box","text":"transaction or replace such Certificate with a certificate that represents cover. When a Fund closes its","page_number":78,"box":{"x":116,"y":459,"width":760,"height":12}},{"id":"0feb1a48-4e81-4aea-9790-ae255e31bb27","block_type":"box","text":"position or replaces such Certificate, it may realize an unanticipated loss and incur transaction costs.","page_number":78,"box":{"x":117,"y":475,"width":751,"height":12}},{"id":"bc611167-2ca2-4f68-8fbf-81d46bcdcded","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":78,"box":{"x":117,"y":506,"width":243,"height":12}},{"id":"d0d82ea9-dbcc-41d6-9ddb-ef4e4f537092","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to","page_number":78,"box":{"x":362,"y":506,"width":517,"height":12}},{"id":"0ff3df78-08f3-4095-8966-6d146a0870cd","block_type":"box","text":"enter into a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap","page_number":78,"box":{"x":116,"y":521,"width":750,"height":12}},{"id":"92727238-ab26-4eb7-84f4-95f7b0202364","block_type":"box","text":"agreement, at a designated future time on specified terms. A Fund may write (","page_number":78,"box":{"x":116,"y":537,"width":580,"height":12}},{"id":"16a626af-96af-4dfc-9a99-e0f7ab247a19","block_type":"box","text":"i.e.","page_number":78,"box":{"x":698,"y":537,"width":20,"height":9}},{"id":"b36569a8-f607-4db3-aec7-c82c8410f122","block_type":"box","text":", sell) and purchase","page_number":78,"box":{"x":721,"y":537,"width":150,"height":12}},{"id":"939f5132-9b3d-4e44-b2d6-db6a4a2ce0b7","block_type":"box","text":"put and call swaptions. Depending on the terms of the particular option agreement, a Fund will","page_number":78,"box":{"x":117,"y":552,"width":704,"height":12}},{"id":"a0bc922b-9a20-4809-a3d1-a16611c87c84","block_type":"box","text":"generally incur a greater degree of risk when it writes a swaption than it will incur when it purchases a","page_number":78,"box":{"x":116,"y":568,"width":758,"height":12}},{"id":"845cec1d-e9f0-4932-a475-c722093c5d99","block_type":"box","text":"swaption. When a Fund purchases a swaption, it risks losing only the amount of the premium it has","page_number":78,"box":{"x":116,"y":583,"width":741,"height":12}},{"id":"614679eb-75f0-4221-bfb0-348f1ff6f90d","block_type":"box","text":"paid should it decide to let the option expire unexercised. However, when a Fund writes a swaption,","page_number":78,"box":{"x":117,"y":599,"width":743,"height":12}},{"id":"eac4e507-0489-4ce4-a7ed-f189c8fcf367","block_type":"box","text":"upon exercise of the option the Fund will become obligated according to the terms of the underlying","page_number":78,"box":{"x":117,"y":614,"width":743,"height":12}},{"id":"90f24b83-76b5-467a-b919-34488724a117","block_type":"box","text":"agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":78,"box":{"x":116,"y":630,"width":754,"height":12}},{"id":"7784f9b9-a6cb-42cd-b175-1486511c932e","block_type":"box","text":"required, to be cleared.","page_number":78,"box":{"x":117,"y":645,"width":177,"height":12}},{"id":"d525dfcc-cd7c-4eb4-86bd-91e0b97f3ac6","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment","page_number":78,"box":{"x":116,"y":676,"width":765,"height":12}},{"id":"96829150-8658-4852-b212-61d39313c58c","block_type":"box","text":"or portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates","page_number":78,"box":{"x":116,"y":692,"width":767,"height":12}},{"id":"acf06758-e25a-4801-b865-bc8b36303dc8","block_type":"box","text":"purchasing at a later date. A Fund generally will use these transactions for hedging purposes, not for","page_number":78,"box":{"x":117,"y":707,"width":746,"height":12}},{"id":"067482af-693e-4bd0-aa6e-f910effbeb6a","block_type":"box","text":"speculation.","page_number":78,"box":{"x":116,"y":723,"width":88,"height":12}},{"id":"f7628677-1415-48b0-aee9-8d7aad6d7196","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “— Risk","page_number":78,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"35084536-931e-496d-b6bc-70f015cb6eec","block_type":"box","text":"Factors in Derivatives” above.","page_number":78,"box":{"x":117,"y":769,"width":220,"height":10}},{"id":"5e3fb079-35b7-4433-9534-e7102fc67f64","block_type":"box","text":"FLEX Options.","page_number":78,"box":{"x":116,"y":800,"width":107,"height":12}},{"id":"e57b0566-d595-433d-a6ae-7854b6702b6e","block_type":"box","text":"FLEX Options are customized option contracts available through national securities","page_number":78,"box":{"x":231,"y":800,"width":617,"height":12}},{"id":"3915385c-06f4-4de4-ac7a-358984976948","block_type":"box","text":"exchanges that are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX","page_number":78,"box":{"x":116,"y":816,"width":729,"height":12}},{"id":"e4b63120-81ce-439b-aabd-7348e032715c","block_type":"box","text":"Options are listed on a U.S. national securities exchange. FLEX Options provide investors with the","page_number":78,"box":{"x":116,"y":831,"width":736,"height":12}},{"id":"b164fca9-e63e-4230-a8c5-c7b52af2b774","block_type":"box","text":"ability to customize assets referenced by the options, exercise prices, exercise styles (i.e., American","page_number":78,"box":{"x":116,"y":847,"width":750,"height":12}},{"id":"3baab177-5af6-48fa-854b-bf6b5aadd31f","block_type":"box","text":"style, exercisable any time prior to the expiration date, or European-style, exercisable only on the","page_number":78,"box":{"x":116,"y":862,"width":726,"height":12}},{"id":"38abe7fa-663d-455b-93a1-730d9e6bdde0","block_type":"box","text":"option expiration date) and expiration dates, while achieving price discovery in competitive, transparent","page_number":78,"box":{"x":116,"y":878,"width":769,"height":12}},{"id":"f56e48fc-dc77-4143-a054-d5efb4889231","block_type":"box","text":"II-28","page_number":78,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2ac71074-4bba-44d4-8e9b-670a3ba764d5","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":78,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"9a2c7c8d-abee-4237-9306-97bc531d09f6","block_type":"box","text":"auctions markets and avoiding the counterparty exposure of OTC options positions. Each option","page_number":79,"box":{"x":116,"y":87,"width":719,"height":12}},{"id":"3fba4f8d-f9c0-47d4-9950-a1a0f76659a0","block_type":"box","text":"contract entitles the holder thereof to purchase (for the","page_number":79,"box":{"x":116,"y":102,"width":410,"height":13}},{"id":"2f2e2b1a-32b6-48b5-9c25-25fee5fc7b9a","block_type":"box","text":"call options) or sell (for the put options) shares","page_number":79,"box":{"x":527,"y":102,"width":349,"height":13}},{"id":"d6172218-f582-4065-b919-bb5c1daee7bb","block_type":"box","text":"of the reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options,","page_number":79,"box":{"x":116,"y":118,"width":772,"height":12}},{"id":"2a1a68db-da99-43ea-8410-d64603525987","block_type":"box","text":"including both purchased and written put and call options (as further described below). The FLEX","page_number":79,"box":{"x":117,"y":134,"width":726,"height":12}},{"id":"1f920a6d-f95a-4b8f-ba1b-48297fc55793","block_type":"box","text":"Options are all European style options, which means that they are exercisable at a predetermined","page_number":79,"box":{"x":116,"y":149,"width":730,"height":12}},{"id":"2ad43ed3-9312-494a-ac4e-70190cb4febb","block_type":"box","text":"specified price (the “strike price”) only on the FLEX Option’s expiration date.","page_number":79,"box":{"x":116,"y":165,"width":569,"height":12}},{"id":"ceb30b18-cc01-4477-9585-e4c3f4e7b9ad","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the","page_number":79,"box":{"x":116,"y":198,"width":752,"height":12}},{"id":"bf3456de-0608-4e96-a6b2-6e5a800163c6","block_type":"box","text":"“buyer for every seller and the seller for every buyer”, reducing counterparty risk for clearing members","page_number":79,"box":{"x":116,"y":213,"width":762,"height":12}},{"id":"d8576c61-96b1-4f4e-831d-b8009dd56b69","block_type":"box","text":"and options traders. Although guaranteed for settlement by the OCC, FLEX Options are still subject to","page_number":79,"box":{"x":116,"y":229,"width":762,"height":12}},{"id":"3a79f173-4df6-4d51-b032-bc6b73b26a38","block_type":"box","text":"counterparty risk with the OCC and subject to the risk that the OCC may fail to perform the settlement","page_number":79,"box":{"x":116,"y":244,"width":760,"height":12}},{"id":"4d61c43f-2e9f-44d5-8cfd-981443249464","block_type":"box","text":"of the FLEX Options due to bankruptcy or other adverse reasons. A Fund bears the risk that the OCC","page_number":79,"box":{"x":116,"y":260,"width":759,"height":12}},{"id":"102f56f2-32de-4e24-9a5d-03305627dd4b","block_type":"box","text":"will be unable or unwilling to perform its obligations under the FLEX Options contracts.","page_number":79,"box":{"x":116,"y":275,"width":646,"height":12}},{"id":"7be40b03-7f03-45f8-b54c-f3c58e86a71f","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the","page_number":79,"box":{"x":116,"y":308,"width":744,"height":13}},{"id":"aec19128-31cf-4b08-9b8c-e97820cd367e","block_type":"box","text":"FLEX Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and","page_number":79,"box":{"x":117,"y":324,"width":760,"height":12}},{"id":"a2f2eab4-d434-495a-8cc8-d5cb47edc863","block_type":"box","text":"rules: certain stock dividends or distributions, stock splits, reverse stock splits, rights offerings,","page_number":79,"box":{"x":117,"y":339,"width":702,"height":13}},{"id":"de81ecbd-28fc-4414-93f8-f4fe42c74f76","block_type":"box","text":"distributions, reorganizations, recapitalizations, or reclassifications with respect to an underlying","page_number":79,"box":{"x":116,"y":355,"width":715,"height":12}},{"id":"f8354f17-7a48-4949-82ec-7fc5647ba3a9","block_type":"box","text":"security, or a merger, consolidation, dissolution or liquidation of the issuer of the underlying security.","page_number":79,"box":{"x":116,"y":370,"width":748,"height":13}},{"id":"29500a78-9f3c-4c5e-8e73-6c60e7946712","block_type":"box","text":"According to the OCC’s by-laws, the nature and extent of any such adjustment is to be determined by","page_number":79,"box":{"x":116,"y":386,"width":759,"height":12}},{"id":"63becd21-4015-429c-920c-b22dbc334978","block_type":"box","text":"the OCC’s Securities Committee, in light of the circumstances known to it at the time such","page_number":79,"box":{"x":116,"y":401,"width":673,"height":13}},{"id":"3b5cbc82-937c-4cc3-9bd4-befc1d059c9c","block_type":"box","text":"determination is made, based on its judgment as to what is appropriate for the protection of investors","page_number":79,"box":{"x":116,"y":417,"width":754,"height":12}},{"id":"87c961a2-7ae0-411c-b4d7-a0d748446184","block_type":"box","text":"and the public interest, taking into account such factors as fairness to holders and writers (or","page_number":79,"box":{"x":116,"y":432,"width":691,"height":13}},{"id":"26415507-d3c3-4787-af18-29066ff8690e","block_type":"box","text":"purchasers and sellers) of the affected options, the maintenance of a fair and orderly market in the","page_number":79,"box":{"x":117,"y":448,"width":734,"height":12}},{"id":"c2c83207-fdd2-4280-a337-b3cdbbef50cc","block_type":"box","text":"affected options, consistency of interpretation and practice, efficiency of exercise settlement","page_number":79,"box":{"x":116,"y":463,"width":687,"height":13}},{"id":"e9c62ea4-cbee-4567-b2b2-781a03cfd89e","block_type":"box","text":"procedures, and the coordination with other clearing agencies of the clearance and settlement of","page_number":79,"box":{"x":117,"y":479,"width":721,"height":12}},{"id":"428b7960-41dc-409e-a6b5-3ad97b514570","block_type":"box","text":"transactions in the underlying interest.","page_number":79,"box":{"x":116,"y":495,"width":288,"height":12}},{"id":"e281eb5c-7181-40c5-9c1f-c3260dcfc5d7","block_type":"box","text":"Certain Considerations Regarding Options","page_number":79,"box":{"x":151,"y":519,"width":314,"height":12}},{"id":"33816940-7eee-4ba7-8682-3d127a6c334a","block_type":"box","text":". The FLEX Options in which each Fund may invest will","page_number":79,"box":{"x":467,"y":519,"width":414,"height":12}},{"id":"a747f8c7-5243-48f6-9982-528eef125bf0","block_type":"box","text":"be options on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a","page_number":79,"box":{"x":150,"y":534,"width":723,"height":12}},{"id":"85c918f2-8739-4387-b5ea-4496936e2b63","block_type":"box","text":"“Reference Asset”). As such, the value of a Fund’s FLEX Options will fluctuate with changes in the","page_number":79,"box":{"x":150,"y":550,"width":735,"height":12}},{"id":"1f1e294e-1403-449f-a8ac-f67e0544da60","block_type":"box","text":"value of the securities held by the ETF, and thus the ETF’s share price. In addition to the value of","page_number":79,"box":{"x":150,"y":565,"width":726,"height":12}},{"id":"bc8acdcd-6a12-4012-8afb-107b60f0eaac","block_type":"box","text":"the ETF, the value of an option, in general, will reflect, among other things, the time remaining until","page_number":79,"box":{"x":150,"y":581,"width":738,"height":12}},{"id":"17329a79-372d-43e1-95c3-b35f636d9213","block_type":"box","text":"expiration (the end of the Outcome Period), the relationship of the exercise price to the market","page_number":79,"box":{"x":150,"y":596,"width":704,"height":12}},{"id":"bc1dabb7-2c49-4530-8dca-3f1a78a7d85b","block_type":"box","text":"price of the Reference Asset, and general market conditions. Options that expire unexercised","page_number":79,"box":{"x":150,"y":612,"width":698,"height":12}},{"id":"263d0bd9-b4c6-4a2c-b720-a096ec927ba6","block_type":"box","text":"have no value.","page_number":79,"box":{"x":150,"y":628,"width":113,"height":9}},{"id":"d578b32e-a1f1-4445-97e3-1d6ed698189b","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase","page_number":79,"box":{"x":150,"y":652,"width":734,"height":12}},{"id":"f9432a3e-49c4-4f4a-9638-2fc35c7aaa06","block_type":"box","text":"(for a call option) or sell (for a put option) the Reference Asset at a predetermined specified price","page_number":79,"box":{"x":150,"y":667,"width":718,"height":12}},{"id":"1ac3805b-a963-4dcc-aaf2-a71ef9e741d9","block_type":"box","text":"(the “strike price”). When a Fund writes a call on the Reference Asset, it receives a premium and","page_number":79,"box":{"x":150,"y":683,"width":716,"height":12}},{"id":"87ba2c13-7448-4f5f-a1c4-fd678c71930b","block_type":"box","text":"agrees that the purchaser of the call, upon exercise of the call, will receive from the Fund the","page_number":79,"box":{"x":150,"y":698,"width":688,"height":12}},{"id":"7879ec1f-ef92-4384-ab36-0033263a784e","block_type":"box","text":"delivery of a specified number of shares of the ETF in exchange for the strike price. When a Fund","page_number":79,"box":{"x":150,"y":714,"width":724,"height":12}},{"id":"1a7e9a17-0784-4447-83ad-df9a07410398","block_type":"box","text":"buys a call on the Reference Asset, it pays a premium and has the same rights to such call as","page_number":79,"box":{"x":150,"y":729,"width":697,"height":12}},{"id":"8543ce56-efec-4e8d-bdaa-6ef2574f5a1b","block_type":"box","text":"indicated above. When a Fund buys a put on the Reference Asset, it pays a premium and has the","page_number":79,"box":{"x":150,"y":745,"width":725,"height":12}},{"id":"8db56ee6-6ce5-4479-a92d-b35752313e60","block_type":"box","text":"right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":79,"box":{"x":150,"y":760,"width":704,"height":12}},{"id":"7a932ab8-a2be-454c-9294-91688b709169","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the","page_number":79,"box":{"x":150,"y":776,"width":700,"height":12}},{"id":"19324a8f-a170-4923-a5ab-925a1e8a9d18","block_type":"box","text":"Reference Asset, it receives a premium and the purchaser of the put has the right to require the","page_number":79,"box":{"x":151,"y":791,"width":708,"height":12}},{"id":"b8935bef-643a-4b71-ab79-f47356be507d","block_type":"box","text":"Fund to deliver the specified number of shares of the ETF in exchange for the strike price.","page_number":79,"box":{"x":151,"y":807,"width":665,"height":12}},{"id":"fc999138-39ea-41e6-9538-c7b72105e69b","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may","page_number":79,"box":{"x":149,"y":831,"width":705,"height":12}},{"id":"bbf61dd4-1c30-4f75-b1b2-98146ef33b80","block_type":"box","text":"also utilize FLEX Options that are cash-settled. Cash-settled options give the holder the right to","page_number":79,"box":{"x":150,"y":847,"width":711,"height":12}},{"id":"c52762a8-5802-4125-8ac2-af8ea8f7da15","block_type":"box","text":"receive an amount (or owe an amount) of cash upon the exercise of the option. Gain or loss","page_number":79,"box":{"x":150,"y":862,"width":686,"height":12}},{"id":"ade22e62-b07e-4c20-b6fb-b493f4d0868b","block_type":"box","text":"depends on changes in the value of the ETF’s share price relative to the strike price for a given","page_number":79,"box":{"x":150,"y":878,"width":710,"height":12}},{"id":"1a3f4aee-8287-4b70-8a09-dac7d931c779","block_type":"box","text":"II-29","page_number":79,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"890a519d-94e3-47be-8863-fe89f4e2ffdc","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":79,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"fc0e2ea3-7478-4f85-a114-2b806b3dfd39","block_type":"box","text":"option contract. The amount of cash is equal to the difference between the closing price of the","page_number":80,"box":{"x":150,"y":87,"width":702,"height":12}},{"id":"4d513332-d5a1-4e42-a5e0-28dbbbce1f3d","block_type":"box","text":"ETF’s share price and the exercise price of the option contract times a specified multiple","page_number":80,"box":{"x":151,"y":102,"width":659,"height":12}},{"id":"40265487-f4bd-4b09-9279-1b0a8d5f549d","block_type":"box","text":"(“multiplier”), which determines the total value for each point of such difference.","page_number":80,"box":{"x":150,"y":118,"width":593,"height":12}},{"id":"9ec1dea5-a222-467a-9148-e9e2115ff483","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":80,"box":{"x":150,"y":141,"width":306,"height":12}},{"id":"a5b93167-4950-44e5-ad55-d19a53ceaa6e","block_type":"box","text":". If a Fund has purchased an option and exercises it","page_number":80,"box":{"x":458,"y":141,"width":382,"height":12}},{"id":"5246aefa-411c-485e-b8e1-0abcdd019f53","block_type":"box","text":"before the closing value for that day is available, it runs the risk that the level of the Reference Asset","page_number":80,"box":{"x":150,"y":157,"width":735,"height":12}},{"id":"94f2b9c9-1858-4256-83fa-4a9ede86b208","block_type":"box","text":"may subsequently change. If such a change causes the exercised option to fall out of the money,","page_number":80,"box":{"x":150,"y":172,"width":714,"height":12}},{"id":"047200d7-2625-453f-ade3-72e4521c7a7c","block_type":"box","text":"the applicable Fund will be required to pay the difference between the closing Reference Asset","page_number":80,"box":{"x":150,"y":188,"width":698,"height":12}},{"id":"d589de6a-fcb3-45c9-896c-b3754b1a3c53","block_type":"box","text":"value and the exercise price of the option (times the applicable multiplier) to the assigned writer.","page_number":80,"box":{"x":150,"y":203,"width":706,"height":12}},{"id":"9cf592f2-f815-4c77-9571-ef30d8d1f11e","block_type":"box","text":"Foreign Exchange Transactions.","page_number":80,"box":{"x":116,"y":242,"width":247,"height":12}},{"id":"aa2b3176-e922-4959-ac09-5e988a200997","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions","page_number":80,"box":{"x":116,"y":273,"width":731,"height":12}},{"id":"178aa4cb-3fe8-42f3-a45b-64bdfbbf42c9","block_type":"box","text":"(“FX forwards”) and currency swaps, purchase and sell currency options, currency futures and related","page_number":80,"box":{"x":117,"y":289,"width":760,"height":12}},{"id":"58d95c02-e9a0-4d86-91f4-aceb6d6b5ac2","block_type":"box","text":"options thereon (collectively, “Currency Instruments”) for purposes of hedging against the decline in the","page_number":80,"box":{"x":116,"y":304,"width":772,"height":12}},{"id":"30f4fc01-2ccc-4bc2-89a8-e22811fad9d8","block_type":"box","text":"value of currencies in which its portfolio holdings are denominated against the U.S. dollar or, with","page_number":80,"box":{"x":116,"y":320,"width":725,"height":12}},{"id":"229167ac-0d02-4f46-b619-90b76a3d7248","block_type":"box","text":"respect to certain Funds, to seek to enhance returns.","page_number":80,"box":{"x":117,"y":335,"width":397,"height":12}},{"id":"ee3b0b71-85be-4ae4-acd6-cd83c9072ec3","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities","page_number":80,"box":{"x":116,"y":366,"width":734,"height":12}},{"id":"b83cbce8-cddb-4ef0-a633-2bd258279312","block_type":"box","text":"owned by a Fund, sold by a Fund but not","page_number":80,"box":{"x":116,"y":382,"width":309,"height":12}},{"id":"900aec65-1392-405e-bc68-1552f7c6297d","block_type":"box","text":"yet delivered, or committed or anticipated to be purchased by","page_number":80,"box":{"x":426,"y":382,"width":460,"height":12}},{"id":"4cd8c3ab-f1bd-4945-b972-16ab10039c1e","block_type":"box","text":"a Fund. As an illustration, a Fund may use such techniques to hedge the stated value in U.S. dollars of","page_number":80,"box":{"x":116,"y":397,"width":768,"height":12}},{"id":"615abb7d-344e-4790-9bf5-812d0f502b36","block_type":"box","text":"an investment in a yen-denominated security. For example, the Fund may purchase a foreign currency","page_number":80,"box":{"x":116,"y":413,"width":767,"height":12}},{"id":"b38992c4-6901-4abb-8817-c23290d75e8d","block_type":"box","text":"put option enabling it to sell a specified amount of yen","page_number":80,"box":{"x":117,"y":428,"width":404,"height":12}},{"id":"48d3442a-b885-440f-acbe-2b2d2b3bb9ce","block_type":"box","text":"for dollars at a specified price by a future date.","page_number":80,"box":{"x":521,"y":428,"width":350,"height":12}},{"id":"6de5a273-a01f-4def-887f-3d705ff6175b","block_type":"box","text":"To the extent the hedge is successful, a loss in the value of the yen relative to the dollar will tend to be","page_number":80,"box":{"x":116,"y":444,"width":764,"height":12}},{"id":"dc43d3f4-c305-4234-95b3-5a9cdda6170d","block_type":"box","text":"offset by an increase in the value of the put option. To offset, in whole or in part, the cost of acquiring","page_number":80,"box":{"x":116,"y":459,"width":753,"height":12}},{"id":"c47f827d-7ed6-4dca-b8cd-8161b4d2ed70","block_type":"box","text":"such a put option, the Fund may also sell a call option which, if exercised, requires it to sell a specified","page_number":80,"box":{"x":116,"y":475,"width":764,"height":12}},{"id":"a79d7b82-2c58-462e-9d2c-94af0522366d","block_type":"box","text":"amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":80,"box":{"x":116,"y":490,"width":727,"height":12}},{"id":"eac08179-3d72-4594-b4a0-7af64cdb465b","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from","page_number":80,"box":{"x":116,"y":506,"width":767,"height":12}},{"id":"57698e6b-cdd5-4190-9d1b-5fb26a8b65b6","block_type":"box","text":"increases in the relative value of the yen to the dollar. “Straddles” of the type that may be used by a","page_number":80,"box":{"x":117,"y":521,"width":742,"height":12}},{"id":"2686853a-9aa3-4352-aa3f-87eb6a37dac8","block_type":"box","text":"Fund are considered hedging transactions. Certain Funds have a fundamental investment restriction","page_number":80,"box":{"x":117,"y":537,"width":749,"height":12}},{"id":"c42e9bb4-677e-4799-9634-163459e94c24","block_type":"box","text":"that restricts currency option strategies.","page_number":80,"box":{"x":116,"y":552,"width":298,"height":12}},{"id":"cba9b750-204e-4aba-ae46-c7bfa49646c1","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation","page_number":80,"box":{"x":117,"y":583,"width":737,"height":12}},{"id":"155810ed-bc53-4d0a-b8bd-6d2396b1584c","block_type":"box","text":"risk. A Fund’s use of Currency Instruments to effect hedging strategies is intended to reduce the","page_number":80,"box":{"x":117,"y":599,"width":718,"height":12}},{"id":"6ceb4aa1-3f88-480a-8a4f-7f8b68953c6c","block_type":"box","text":"volatility of the NAV of the Fund’s shares; however, the use of such hedging strategies will not prevent","page_number":80,"box":{"x":116,"y":614,"width":763,"height":12}},{"id":"fbee8b61-42ec-4980-8e32-aa082aad500e","block_type":"box","text":"the NAV of the Fund’s shares from fluctuating. Moreover, although Currency Instruments will be used","page_number":80,"box":{"x":116,"y":630,"width":757,"height":12}},{"id":"b77935ed-132d-4c9f-a03b-1dce451123a7","block_type":"box","text":"with the intention of hedging against adverse currency movements, transactions in Currency","page_number":80,"box":{"x":116,"y":645,"width":689,"height":12}},{"id":"fd03d15e-7be4-403c-a8b3-d54cc9f4e7fc","block_type":"box","text":"Instruments involve the risk that anticipated currency movements will not be accurately predicted and","page_number":80,"box":{"x":117,"y":661,"width":749,"height":12}},{"id":"9f3f686f-0d12-40f6-8c7d-90c8d450cd8c","block_type":"box","text":"that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges against","page_number":80,"box":{"x":116,"y":676,"width":701,"height":12}},{"id":"8d9906ce-3d72-4f54-affd-31f791293503","block_type":"box","text":"anticipated currency movements that do not occur, the Fund may realize losses and decrease its total","page_number":80,"box":{"x":116,"y":692,"width":755,"height":12}},{"id":"4492d220-6420-4ddc-b03c-b41f933eb71a","block_type":"box","text":"return. Furthermore, a Fund will only engage in hedging activities from time to time and may not be","page_number":80,"box":{"x":117,"y":707,"width":733,"height":12}},{"id":"9da5598e-447d-495b-989a-c5279dcb03e1","block_type":"box","text":"engaging in hedging activities when movements in currency exchange rates actually occur.","page_number":80,"box":{"x":116,"y":723,"width":674,"height":12}},{"id":"7d91d41c-ce12-4573-8878-6202492fe2a0","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign","page_number":80,"box":{"x":117,"y":754,"width":746,"height":12}},{"id":"675dcbd1-60a9-43b9-8921-f6e6dd2d7457","block_type":"box","text":"or domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified","page_number":80,"box":{"x":116,"y":769,"width":766,"height":12}},{"id":"f22c9cb9-31de-4ee0-8e2a-2fbfa8f2a820","block_type":"box","text":"amount of a particular currency. There are no limitations on daily price moves in such forward","page_number":80,"box":{"x":116,"y":785,"width":693,"height":12}},{"id":"c50fd570-a93f-4f0e-8e2f-40ed77465469","block_type":"box","text":"contracts, and banks and dealers are not required to continue to make markets in such contracts.","page_number":80,"box":{"x":116,"y":800,"width":722,"height":12}},{"id":"ce44e8ec-9ac0-40db-a31a-9b0bf291cdbd","block_type":"box","text":"There have been periods during which certain banks or dealers have refused to quote prices for such","page_number":80,"box":{"x":116,"y":816,"width":751,"height":12}},{"id":"baa317f8-2796-41b3-b603-e0e859db58de","block_type":"box","text":"forward contracts or have quoted prices with an unusually wide spread between the price at which the","page_number":80,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"65afa705-d267-444e-9eb4-f6a05809cac4","block_type":"box","text":"bank or dealer is prepared to buy and that at which it is prepared to sell. Governmental imposition of","page_number":80,"box":{"x":117,"y":847,"width":747,"height":12}},{"id":"26d1eb5c-2d28-4336-a8d8-a0dbdb9d52e2","block_type":"box","text":"currency controls might limit any such forward contract trading. With respect to its trading of forward","page_number":80,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"9faf560d-be54-4d5d-8ac3-439e4c3b92ac","block_type":"box","text":"contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a","page_number":80,"box":{"x":116,"y":878,"width":689,"height":12}},{"id":"0bcca5f6-5ac2-4c8f-83c4-4c2387fb3131","block_type":"box","text":"II-30","page_number":80,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"58ab9c44-064d-4635-87b1-d69083dab68d","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":80,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"6de83cf1-03e5-4df7-a935-314f2d4a935e","block_type":"box","text":"counterparty would deprive the Fund of any profit potential or force the Fund to cover its commitments","page_number":81,"box":{"x":116,"y":87,"width":762,"height":12}},{"id":"7d3f4c98-9926-4648-a8e8-cffc653881ed","block_type":"box","text":"for resale, if any, at the then market price and could result in a loss to the Fund.","page_number":81,"box":{"x":116,"y":102,"width":595,"height":13}},{"id":"18bc0f07-d89a-4fa0-a6dd-86e1ee2040b2","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if","page_number":81,"box":{"x":117,"y":134,"width":709,"height":12}},{"id":"3b6f96e1-7a4c-423f-92f0-01155e19f6e5","block_type":"box","text":"correctly anticipated, in the event that (i) the currency exchange rate movement is so generally","page_number":81,"box":{"x":116,"y":149,"width":707,"height":12}},{"id":"19fb18ce-78ad-455b-ba58-a7fd16398428","block_type":"box","text":"anticipated that the Fund is not able to enter into a hedging transaction at an effective price, or (ii) the","page_number":81,"box":{"x":116,"y":165,"width":757,"height":12}},{"id":"ed96188f-4c9a-45ff-8a6d-2c6eceab1238","block_type":"box","text":"currency exchange rate movement relates to a market with respect to which Currency Instruments are","page_number":81,"box":{"x":116,"y":180,"width":764,"height":12}},{"id":"fd2efd0c-f001-4b00-bab4-0c892127ffcc","block_type":"box","text":"not available and it is not possible to engage in effective foreign currency hedging. The cost to a Fund","page_number":81,"box":{"x":117,"y":196,"width":759,"height":12}},{"id":"927fd004-7208-49d9-b000-713ff3881bda","block_type":"box","text":"of engaging in foreign currency transactions varies with such factors as the currencies involved, the","page_number":81,"box":{"x":116,"y":211,"width":743,"height":12}},{"id":"ec3f09f2-b7d8-4870-9595-29fb4f3d2b6d","block_type":"box","text":"length of the contract period and the market conditions then prevailing. Since transactions in foreign","page_number":81,"box":{"x":117,"y":227,"width":744,"height":12}},{"id":"15de2a23-5c0c-4384-9298-ef59ca9ae583","block_type":"box","text":"currency exchange usually are conducted on a principal basis, no fees or commissions are involved.","page_number":81,"box":{"x":116,"y":242,"width":750,"height":12}},{"id":"467aba16-99e6-4fdf-93cc-1ad4dcc59970","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns","page_number":81,"box":{"x":116,"y":273,"width":765,"height":12}},{"id":"658ed002-dadd-462f-a15b-747f79978209","block_type":"box","text":"(including receivables for unsettled securities sales), or has committed to purchase or anticipates","page_number":81,"box":{"x":117,"y":289,"width":724,"height":12}},{"id":"f16561f4-62e1-4e6c-8b0f-43472f05110d","block_type":"box","text":"purchasing, which are denominated in such currency.","page_number":81,"box":{"x":117,"y":304,"width":401,"height":12}},{"id":"e492a066-46cc-4f3a-bbf4-9ec0817eb4a2","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":81,"box":{"x":117,"y":335,"width":271,"height":12}},{"id":"ec761f55-079a-41c6-99e9-9c515ce76ec6","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified","page_number":81,"box":{"x":390,"y":335,"width":470,"height":12}},{"id":"a6cacf6c-60a2-4e2c-b816-adaec7acf280","block_type":"box","text":"amount of a specified currency or multinational currency unit at a specified price and specified future","page_number":81,"box":{"x":116,"y":351,"width":750,"height":12}},{"id":"f70a3dd4-dd21-4fb8-9cdd-6dd8a4af3e10","block_type":"box","text":"date. Spot foreign exchange transactions are similar but are settled in the current, or “spot”, market. A","page_number":81,"box":{"x":116,"y":366,"width":761,"height":12}},{"id":"40cc8d5c-d070-4c10-b96d-a3ee33464a4a","block_type":"box","text":"Fund will enter into foreign exchange transactions for purposes of hedging either a specific transaction","page_number":81,"box":{"x":117,"y":382,"width":764,"height":12}},{"id":"5692df74-cc4f-4209-bba2-3453f59dac6d","block_type":"box","text":"or a portfolio position, or, with respect to certain Funds, to seek to enhance returns. FX forwards","page_number":81,"box":{"x":116,"y":397,"width":719,"height":12}},{"id":"142ee168-f2a7-4272-bd8e-d7b796aac239","block_type":"box","text":"involve substantial currency risk, credit risk and liquidity risk. A Fund may enter into a foreign exchange","page_number":81,"box":{"x":117,"y":413,"width":770,"height":12}},{"id":"f099b323-4aa8-4f48-8ea6-1fe6d4b2c3ab","block_type":"box","text":"transaction for purposes of hedging a specific transaction by, for example, purchasing a currency","page_number":81,"box":{"x":116,"y":428,"width":725,"height":12}},{"id":"d2d42ac2-5436-4d0a-a520-412e65e9f3e6","block_type":"box","text":"needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":81,"box":{"x":117,"y":444,"width":699,"height":12}},{"id":"c3b0830f-a1c5-4b2b-898b-27b78758aea3","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction","page_number":81,"box":{"x":116,"y":459,"width":754,"height":12}},{"id":"a35825e1-42c7-4923-a96f-7645e97c87f9","block_type":"box","text":"for purposes of hedging a portfolio position by selling forward a currency in which a portfolio position of","page_number":81,"box":{"x":116,"y":475,"width":767,"height":12}},{"id":"0b2c7ba6-4b1e-48f9-97f1-457156ac83af","block_type":"box","text":"the Fund is denominated or by purchasing a currency in which the Fund anticipates acquiring a","page_number":81,"box":{"x":116,"y":490,"width":711,"height":12}},{"id":"54e1e15c-c8f6-4756-abbc-98f03f823dad","block_type":"box","text":"portfolio position in the near future. A Fund may also hedge a currency by entering into a transaction in","page_number":81,"box":{"x":117,"y":506,"width":767,"height":12}},{"id":"fcf977ad-0434-4c10-9c5b-b0377f2236e3","block_type":"box","text":"a Currency Instrument denominated in a currency other than the currency being hedged (a “cross","page_number":81,"box":{"x":116,"y":521,"width":729,"height":12}},{"id":"3bc9c1f5-d304-4377-a907-5c3a4ce24cbb","block_type":"box","text":"hedge”). A Fund will only enter into a cross-hedge if the Manager believes that (i) there is a","page_number":81,"box":{"x":117,"y":537,"width":680,"height":12}},{"id":"871dc7d3-daae-4740-b5b7-5c02d3631169","block_type":"box","text":"demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":81,"box":{"x":116,"y":552,"width":761,"height":12}},{"id":"41933edc-a62f-4127-81de-856e07bd2220","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross","page_number":81,"box":{"x":116,"y":568,"width":722,"height":12}},{"id":"d9ab22ca-0f5c-4ce0-ad52-6b0979b115c2","block_type":"box","text":"hedge is denominated will be significantly more cost-effective or provide substantially greater liquidity","page_number":81,"box":{"x":117,"y":583,"width":755,"height":12}},{"id":"696e3fbb-7f11-4603-a01d-27e571011458","block_type":"box","text":"than executing a similar hedging transaction by means of the currency being hedged.","page_number":81,"box":{"x":116,"y":599,"width":638,"height":12}},{"id":"d6a0b3f7-d8c1-4fc4-8a94-1722dcf0a5ec","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on","page_number":81,"box":{"x":116,"y":630,"width":765,"height":12}},{"id":"dbd4cb76-27fd-485f-8def-1ac468608f3a","block_type":"box","text":"the value of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when","page_number":81,"box":{"x":116,"y":645,"width":747,"height":12}},{"id":"54f983cd-49f3-4b3f-a080-aa56735f433b","block_type":"box","text":"the currency to which the Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar.","page_number":81,"box":{"x":116,"y":661,"width":727,"height":12}},{"id":"503579cd-e700-4fc1-a22e-b85f020ff9b9","block_type":"box","text":"Proxy hedging entails entering into a forward contract to sell a currency whose changes in value are","page_number":81,"box":{"x":117,"y":676,"width":741,"height":12}},{"id":"7df61800-18b3-449d-b4ab-d90da7796e3f","block_type":"box","text":"generally considered to be linked to a currency or currencies in which some or all of the Fund’s","page_number":81,"box":{"x":116,"y":692,"width":704,"height":12}},{"id":"15c0c01f-59f5-4045-88ff-f72b5cad7d88","block_type":"box","text":"securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy hedging involves","page_number":81,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"052e536d-bf15-4200-a2b5-00197b075820","block_type":"box","text":"some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":81,"box":{"x":116,"y":723,"width":737,"height":12}},{"id":"8bd133ac-597a-4068-8438-d40233f3a353","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a","page_number":81,"box":{"x":116,"y":738,"width":717,"height":12}},{"id":"92b4b19f-afb4-4ee4-9c7c-6d4cc5ea4625","block_type":"box","text":"degree or in a direction that is not anticipated. In addition, there is the risk that the perceived linkage","page_number":81,"box":{"x":116,"y":754,"width":742,"height":12}},{"id":"71023ee8-3715-4f5a-9b8d-780ab9380d55","block_type":"box","text":"between various currencies may not be present, including during the particular time that a Fund is","page_number":81,"box":{"x":117,"y":769,"width":724,"height":12}},{"id":"508d22c6-3114-4060-8751-d6a89180b0b6","block_type":"box","text":"engaging in proxy hedging.","page_number":81,"box":{"x":116,"y":785,"width":200,"height":12}},{"id":"36c34f47-a393-4bf4-8514-6ad5728d3dd3","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more","page_number":81,"box":{"x":116,"y":816,"width":703,"height":12}},{"id":"eb69f40a-bc80-4aba-8e4b-f7c2c1a82677","block_type":"box","text":"currencies that are expected to decline in value relative to other currencies to which the Fund has or in","page_number":81,"box":{"x":116,"y":831,"width":766,"height":12}},{"id":"7602899d-715e-47a9-95ff-d3ad4b50475e","block_type":"box","text":"which the Fund expects to have portfolio exposure. For example, a Fund may hold both Canadian","page_number":81,"box":{"x":116,"y":847,"width":731,"height":12}},{"id":"76c1f2c5-6b0e-49e7-ab80-92c64acf073b","block_type":"box","text":"government bonds and Japanese government bonds, and the Manager or sub-adviser may believe","page_number":81,"box":{"x":116,"y":862,"width":741,"height":12}},{"id":"8094e968-47cf-4fe6-9e4e-94062eaf7ff3","block_type":"box","text":"that Canadian dollars will deteriorate against Japanese yen. The Fund would sell Canadian dollars to","page_number":81,"box":{"x":116,"y":878,"width":754,"height":12}},{"id":"ba0ee0f1-22d6-4ba8-80ed-d97854c78449","block_type":"box","text":"II-31","page_number":81,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"bad55e36-3611-4942-84b2-138033912f68","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":81,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"6375bfd5-efdc-4ea7-a5b1-f3cc5c8d5a10","block_type":"box","text":"reduce its exposure to that currency and buy Japanese yen. This strategy would be a hedge against a","page_number":82,"box":{"x":117,"y":87,"width":761,"height":12}},{"id":"d29e87fc-9c70-40a7-90fc-66d031ab325b","block_type":"box","text":"decline in the value of Canadian dollars, although it would expose the Fund to declines in the value of","page_number":82,"box":{"x":116,"y":102,"width":758,"height":13}},{"id":"68b25094-a1f9-4cfb-9173-0aae3c007de7","block_type":"box","text":"the Japanese yen relative to the U.S. dollar.","page_number":82,"box":{"x":116,"y":118,"width":331,"height":12}},{"id":"dbfb6113-0f12-46d1-bcbb-d5fc5e776351","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as","page_number":82,"box":{"x":116,"y":152,"width":690,"height":12}},{"id":"918d95e7-c084-4c62-883b-6ba67b6903c3","block_type":"box","text":"non-deliverable forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be","page_number":82,"box":{"x":117,"y":168,"width":748,"height":12}},{"id":"fda575a9-6039-4bec-b9a9-e9e014e99186","block_type":"box","text":"thinly traded or are denominated in non-convertible foreign currency, where the profit or loss at the","page_number":82,"box":{"x":116,"y":183,"width":736,"height":12}},{"id":"f5994075-d428-4d99-8107-086a9db718e0","block_type":"box","text":"time at the settlement date is calculated by taking the difference between the agreed upon exchange","page_number":82,"box":{"x":116,"y":199,"width":752,"height":12}},{"id":"d8f25807-7cad-4cbb-ab29-a56eb71cae1f","block_type":"box","text":"rate and the spot rate at the time of settlement, for an agreed upon notional amount of funds. All NDFs","page_number":82,"box":{"x":117,"y":214,"width":765,"height":12}},{"id":"1559074e-b867-45b8-9558-3646bc941b1b","block_type":"box","text":"have a fixing date and a settlement date. The fixing date is the date at which the difference between","page_number":82,"box":{"x":117,"y":230,"width":746,"height":12}},{"id":"193116cb-8f31-4eb3-aabc-33bf64277f6b","block_type":"box","text":"the prevailing market exchange rate and the agreed upon exchange rate is calculated. The settlement","page_number":82,"box":{"x":116,"y":245,"width":761,"height":12}},{"id":"abb5af7f-cd5c-4438-9142-c2771136fa77","block_type":"box","text":"date is the date by which the payment of the difference is due to the party receiving payment. NDFs","page_number":82,"box":{"x":116,"y":261,"width":745,"height":12}},{"id":"c0b0fbeb-6036-45a7-a89f-f2622e535090","block_type":"box","text":"are commonly quoted for time periods of one month up to two years, and are normally quoted and","page_number":82,"box":{"x":116,"y":276,"width":733,"height":12}},{"id":"49cb9360-11c9-4370-9cd0-0b5307a0cc42","block_type":"box","text":"settled in U.S. dollars. They are often used to gain exposure to and/or hedge exposure to foreign","page_number":82,"box":{"x":116,"y":292,"width":723,"height":12}},{"id":"1b42ceb7-c745-42ef-8597-4b1b260ede45","block_type":"box","text":"currencies that are not internationally traded.","page_number":82,"box":{"x":116,"y":307,"width":337,"height":12}},{"id":"d508011d-1467-4d61-af77-23b0a482658f","block_type":"box","text":"Currency Futures.","page_number":82,"box":{"x":117,"y":341,"width":132,"height":12}},{"id":"9f48bf24-7b99-4c45-8de8-9ceed31eddf7","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a","page_number":82,"box":{"x":250,"y":341,"width":626,"height":12}},{"id":"c88899c8-1af0-47ba-8c40-c5e2a6065987","block_type":"box","text":"currency through use of currency futures or options on currency futures. Currency futures are similar to","page_number":82,"box":{"x":116,"y":357,"width":769,"height":12}},{"id":"2a32b35e-3af4-4f40-8bad-858daeab1300","block_type":"box","text":"forward foreign exchange transactions except that futures are standardized, exchange-traded contracts","page_number":82,"box":{"x":116,"y":372,"width":772,"height":12}},{"id":"542042ca-125f-40c9-8f1a-47d5dc77c48e","block_type":"box","text":"while forward foreign exchange transactions are traded in the OTC market. Currency futures involve","page_number":82,"box":{"x":116,"y":388,"width":747,"height":12}},{"id":"e126e5b6-9ad5-4d52-b71d-f057fd53e413","block_type":"box","text":"substantial currency risk as well as the risks discussed above in “—Futures.”","page_number":82,"box":{"x":116,"y":403,"width":573,"height":12}},{"id":"dab9875b-2b16-418a-89ad-90a36491e027","block_type":"box","text":"Currency Options.","page_number":82,"box":{"x":117,"y":437,"width":133,"height":12}},{"id":"786736af-f0e7-4eee-a3b8-5f7795d58833","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a","page_number":82,"box":{"x":251,"y":437,"width":626,"height":12}},{"id":"e7a3a6c2-b386-4899-81bf-0ccee2e17ceb","block_type":"box","text":"currency through the use of currency options. Certain Funds have fundamental investment restrictions","page_number":82,"box":{"x":116,"y":453,"width":763,"height":12}},{"id":"19538d07-d8cf-454c-b1b6-561e83069091","block_type":"box","text":"that permit the purchase of currency options, but prohibit the writing of currency options. Currency","page_number":82,"box":{"x":116,"y":468,"width":732,"height":12}},{"id":"212c85a0-a37c-4bc9-b171-5d380b7ea155","block_type":"box","text":"options are similar to options on securities. For example, in consideration for an option premium the","page_number":82,"box":{"x":116,"y":484,"width":745,"height":12}},{"id":"8a47f252-3712-4d47-b639-7eab8db608ef","block_type":"box","text":"writer of a currency option is obligated to sell (in the case of a call option) or purchase (in the case of a","page_number":82,"box":{"x":116,"y":499,"width":765,"height":13}},{"id":"8b35ecf6-3ea3-449b-aad7-14757f8908df","block_type":"box","text":"put option) a specified amount of a specified currency on or before the expiration date for a specified","page_number":82,"box":{"x":117,"y":515,"width":750,"height":12}},{"id":"2f30ab56-10fc-4272-81ee-75b9ff5e7e39","block_type":"box","text":"amount of another currency. A Fund may engage in transactions in options on currencies either on","page_number":82,"box":{"x":116,"y":530,"width":737,"height":13}},{"id":"78e6ef66-2990-4a47-8f85-b8648eb6c2a6","block_type":"box","text":"exchanges or OTC markets. Such transactions in options may include exotic options on currencies,","page_number":82,"box":{"x":116,"y":546,"width":743,"height":12}},{"id":"62795295-75bf-46a4-9b4d-3263fee118ca","block_type":"box","text":"which are typically traded in OTC markets and have additional features that result in different payment","page_number":82,"box":{"x":116,"y":561,"width":763,"height":13}},{"id":"f7b1daf6-93f6-4203-bd38-b11fd12f8a10","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered","page_number":82,"box":{"x":116,"y":577,"width":771,"height":12}},{"id":"aec477cb-7025-4d00-8e10-29731f4f5e79","block_type":"box","text":"call options on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options","page_number":82,"box":{"x":116,"y":592,"width":752,"height":13}},{"id":"a60f3db0-1567-4fb6-98f4-7f865f0dabde","block_type":"box","text":"involve substantial currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":82,"box":{"x":117,"y":608,"width":651,"height":12}},{"id":"5e435da6-1383-4c77-9805-5e8fd278b5ff","block_type":"box","text":"Currency Swaps.","page_number":82,"box":{"x":117,"y":642,"width":131,"height":12}},{"id":"f55e1e1c-3fa6-4769-bdee-410c3ae002d5","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency","page_number":82,"box":{"x":248,"y":642,"width":557,"height":12}},{"id":"e97953a4-744e-42f7-ac70-735621c84819","block_type":"box","text":"fluctuations or to hedge portfolio positions. Currency swaps are transactions in which one currency is","page_number":82,"box":{"x":116,"y":658,"width":754,"height":12}},{"id":"e33d20fc-849e-4277-9357-df08c3ee7d27","block_type":"box","text":"simultaneously bought for a second currency on a spot basis and sold for the second currency on a","page_number":82,"box":{"x":116,"y":673,"width":737,"height":12}},{"id":"9f282e81-86e3-4b3f-a056-5765b963e9bd","block_type":"box","text":"forward basis. Currency swaps involve the exchange of the rights of a Fund and another party to make","page_number":82,"box":{"x":116,"y":689,"width":762,"height":12}},{"id":"19bb0235-094a-4017-9e22-ebb67ab53c3e","block_type":"box","text":"or receive payments in specified currencies, and typically require the delivery of the entire principal","page_number":82,"box":{"x":116,"y":704,"width":732,"height":12}},{"id":"0dd101d7-c235-4ff5-918d-207ea2ae3104","block_type":"box","text":"value of one designated currency in exchange for the other designated currency. As a result, the entire","page_number":82,"box":{"x":116,"y":720,"width":763,"height":12}},{"id":"a74a95da-ad6d-4888-b64a-8685d6a9db38","block_type":"box","text":"principal value of a currency swap is subject to the risk that the other party to the swap will default on","page_number":82,"box":{"x":117,"y":735,"width":747,"height":12}},{"id":"bf9fbd9b-d747-4551-8847-2f70e52de2bf","block_type":"box","text":"its contractual delivery obligations.","page_number":82,"box":{"x":117,"y":751,"width":254,"height":12}},{"id":"146eb3b3-5ed9-4fce-8b2f-b294012ccd54","block_type":"box","text":"Distressed Securities.","page_number":82,"box":{"x":116,"y":785,"width":174,"height":9}},{"id":"189344f7-7856-45b5-90a6-9a625e84c30a","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary","page_number":82,"box":{"x":296,"y":785,"width":565,"height":12}},{"id":"8d112ead-a9a4-4ca4-893f-eecc65004a8e","block_type":"box","text":"market, that are the subject of bankruptcy proceedings or otherwise in default or in risk of being in","page_number":82,"box":{"x":117,"y":800,"width":724,"height":12}},{"id":"4790d9db-0f01-468e-82a4-49c0f086b51c","block_type":"box","text":"default as to the repayment of principal and/or interest at the time of acquisition by the Fund or that are","page_number":82,"box":{"x":116,"y":816,"width":763,"height":12}},{"id":"aeaaabe1-b7ea-4b15-bb98-76cce833da78","block_type":"box","text":"rated in the lower rating categories by one or more nationally recognized statistical rating organizations","page_number":82,"box":{"x":117,"y":831,"width":768,"height":12}},{"id":"735c5c4b-f8a2-4a64-b1e2-45bdca1b062c","block_type":"box","text":"(for example, Ca or lower by Moody’s and CC or lower by S&P or Fitch) or, if unrated, are in the","page_number":82,"box":{"x":117,"y":847,"width":715,"height":12}},{"id":"0ad8b1ce-47f4-445a-9c22-6e378b8d3ca7","block_type":"box","text":"judgment of the Manager of equivalent quality (“Distressed Securities”). Investment in Distressed","page_number":82,"box":{"x":115,"y":862,"width":725,"height":12}},{"id":"a13ed24b-bab3-4572-aced-ab6b8ec91da0","block_type":"box","text":"Securities is speculative and involves significant risks.","page_number":82,"box":{"x":116,"y":878,"width":405,"height":12}},{"id":"625ef0b0-20d6-4a08-a42f-ecf666db6abf","block_type":"box","text":"II-32","page_number":82,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"6b7d3d32-3f2f-45ab-9848-288388b91db4","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":82,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"a9191344-bd7d-4565-9504-478a317c4ad2","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely","page_number":83,"box":{"x":116,"y":87,"width":745,"height":12}},{"id":"69f0328c-086e-4575-8d5a-104756f090cd","block_type":"box","text":"that the issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan","page_number":83,"box":{"x":116,"y":102,"width":760,"height":13}},{"id":"eb659fa4-badc-487a-ab59-b8311a3a3f03","block_type":"box","text":"of reorganization pursuant to which the Fund will receive new securities in return for the Distressed","page_number":83,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"c685b54f-b3f5-4788-b195-c3d385effc31","block_type":"box","text":"Securities. However, there can be no assurance that such an exchange offer will be made or that such","page_number":83,"box":{"x":116,"y":134,"width":766,"height":12}},{"id":"8456544e-b23d-48eb-984e-939a5109368e","block_type":"box","text":"a plan of reorganization will be adopted. In addition, a significant period of time may pass between the","page_number":83,"box":{"x":116,"y":149,"width":762,"height":12}},{"id":"e6a15a5c-52eb-4700-b159-e42d3704e70c","block_type":"box","text":"time at which a Fund makes its investment in Distressed Securities and the time that any such","page_number":83,"box":{"x":116,"y":165,"width":704,"height":12}},{"id":"24d9c990-a05b-41f7-905b-0bb5893b8b41","block_type":"box","text":"exchange offer or plan of reorganization is completed. During this period, it is unlikely that a Fund will","page_number":83,"box":{"x":116,"y":180,"width":756,"height":12}},{"id":"466797ae-2d9a-41b9-8873-4e72dc85967e","block_type":"box","text":"receive any interest payments on the Distressed Securities, the Fund will be subject to significant","page_number":83,"box":{"x":117,"y":196,"width":725,"height":12}},{"id":"cad625ed-26ee-4028-b00a-97964007af28","block_type":"box","text":"uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":83,"box":{"x":117,"y":211,"width":764,"height":12}},{"id":"f1a97133-764e-403f-bc37-778a3ba2a79c","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment.","page_number":83,"box":{"x":117,"y":227,"width":741,"height":12}},{"id":"8d4f8269-8237-4bb9-8877-1196df640964","block_type":"box","text":"Therefore, to the extent the Fund seeks capital appreciation through investment in distressed","page_number":83,"box":{"x":116,"y":242,"width":696,"height":12}},{"id":"ea5dba6c-a0c2-429a-81d5-f72de04a9f83","block_type":"box","text":"securities, the Fund’s ability to achieve current income for its shareholders may be diminished. The","page_number":83,"box":{"x":116,"y":258,"width":740,"height":12}},{"id":"37feaa09-6cb2-40ff-ba62-9926719f9d07","block_type":"box","text":"Fund also will be subject to significant uncertainty as to when and in what manner and for what value","page_number":83,"box":{"x":117,"y":273,"width":753,"height":12}},{"id":"171c2e1d-069c-4456-80d4-3638705aa893","block_type":"box","text":"the obligations evidenced by the distressed securities will eventually be satisfied (","page_number":83,"box":{"x":116,"y":289,"width":605,"height":12}},{"id":"e4d42895-229e-4437-9c4a-ec66ed9eb1b6","block_type":"box","text":"e.g.","page_number":83,"box":{"x":723,"y":291,"width":25,"height":10}},{"id":"792e20bd-1bba-4133-8dbd-5d1ce2242b9b","block_type":"box","text":", through a","page_number":83,"box":{"x":751,"y":289,"width":84,"height":12}},{"id":"fb5de48d-4391-4055-be51-3fd44953d698","block_type":"box","text":"liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the distressed","page_number":83,"box":{"x":117,"y":304,"width":756,"height":12}},{"id":"b4fc0ddb-bc20-4056-9248-90b58b900b3e","block_type":"box","text":"securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":83,"box":{"x":116,"y":320,"width":757,"height":12}},{"id":"4cde1dc6-262e-427b-8341-15202876ea67","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there","page_number":83,"box":{"x":117,"y":335,"width":754,"height":12}},{"id":"bbd6e105-5269-4348-a575-4da81e3fc92f","block_type":"box","text":"can be no assurance that the securities or other assets received by a Fund in connection with such","page_number":83,"box":{"x":116,"y":351,"width":740,"height":12}},{"id":"c3e30574-8c9c-44e3-af2c-7c29c7217314","block_type":"box","text":"exchange offer or plan of reorganization will not have a lower value or income potential than may have","page_number":83,"box":{"x":116,"y":366,"width":765,"height":12}},{"id":"bcc6b87e-6188-4371-831e-df747cbce23f","block_type":"box","text":"been anticipated when the investment was made or no value. Moreover, any securities received by a","page_number":83,"box":{"x":117,"y":382,"width":753,"height":12}},{"id":"e3851444-8d17-44ea-82cc-61bc558fb6d7","block_type":"box","text":"Fund upon completion of an exchange offer or plan of reorganization may be restricted as to resale.","page_number":83,"box":{"x":117,"y":397,"width":745,"height":12}},{"id":"0444e153-14bb-472f-8911-520a85c7cba2","block_type":"box","text":"Similarly, if a Fund participates in negotiations with respect to any exchange offer or plan of","page_number":83,"box":{"x":116,"y":413,"width":683,"height":12}},{"id":"15bd0316-50f7-493c-8aa3-02d7d5da025c","block_type":"box","text":"reorganization with respect to an issuer of Distressed Securities, the Fund may be restricted from","page_number":83,"box":{"x":117,"y":428,"width":726,"height":12}},{"id":"b5295381-64d5-4cea-a112-397f17d818ca","block_type":"box","text":"disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":83,"box":{"x":116,"y":444,"width":734,"height":12}},{"id":"03f0b1a1-86e2-4441-b27c-02c316d16c8d","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by","page_number":83,"box":{"x":117,"y":459,"width":752,"height":12}},{"id":"cfec9cdf-0f0c-4032-92df-93a1767b3ac8","block_type":"box","text":"an investor. The Fund, however, will not make investments for the purpose of exercising day-to-day","page_number":83,"box":{"x":116,"y":475,"width":744,"height":12}},{"id":"62134e17-93e3-42aa-b3b9-c29cf2a5ea81","block_type":"box","text":"management of any issuer’s affairs.","page_number":83,"box":{"x":117,"y":490,"width":269,"height":12}},{"id":"30ece42e-a9a5-478e-bea9-3c168c9eaeee","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":83,"box":{"x":116,"y":521,"width":472,"height":12}},{"id":"6a7590a4-5e1a-4bde-88fb-ba372d353045","block_type":"box","text":". Although a Fund does not seek to","page_number":83,"box":{"x":590,"y":521,"width":264,"height":12}},{"id":"4f56cc1a-cae0-4e81-97c7-7a2d023e1d0e","block_type":"box","text":"implement a specific sustainability objective, strategy or process unless disclosed in its Prospectus,","page_number":83,"box":{"x":117,"y":537,"width":741,"height":12}},{"id":"9f9f9b7f-f10a-48e9-9f23-4d8556e61492","block_type":"box","text":"Fund management will consider ESG factors as part of the investment process for the Fund. Fund","page_number":83,"box":{"x":117,"y":552,"width":733,"height":12}},{"id":"367154bb-f6f4-43ba-9f58-a30f174ca137","block_type":"box","text":"management views ESG integration as the practice of incorporating financially material ESG data or","page_number":83,"box":{"x":117,"y":568,"width":747,"height":12}},{"id":"8cc2b989-8dd0-467f-be7d-85f2fdd3051c","block_type":"box","text":"information into investment processes with the objective of enhancing risk-adjusted returns. These","page_number":83,"box":{"x":117,"y":583,"width":734,"height":12}},{"id":"4171ab6f-f68f-4e3f-9012-42400601c988","block_type":"box","text":"ESG considerations will vary depending on a Fund’s particular investment strategies and may include","page_number":83,"box":{"x":117,"y":599,"width":757,"height":12}},{"id":"4fafb805-687d-4c18-8e17-c26f8925189e","block_type":"box","text":"consideration of third-party research as well as consideration of proprietary BlackRock research across","page_number":83,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"22a48ea8-d8e8-4eb5-9c1f-956c887e749f","block_type":"box","text":"the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":83,"box":{"x":116,"y":630,"width":725,"height":12}},{"id":"b68659fc-c916-43d4-b531-b5604354837f","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be","page_number":83,"box":{"x":117,"y":645,"width":738,"height":12}},{"id":"150e66d5-cf29-4f11-997b-85e30d3e3371","block_type":"box","text":"relevant with respect to all issuers that are eligible for investment.","page_number":83,"box":{"x":117,"y":661,"width":484,"height":12}},{"id":"4d208630-bc27-46e1-b457-bf34b5401b57","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While","page_number":83,"box":{"x":117,"y":692,"width":764,"height":12}},{"id":"a9fd79f8-fae8-4d0e-a69c-c32b3ec89c78","block_type":"box","text":"Fund management views ESG considerations as having the potential to contribute to a Fund’s long","page_number":83,"box":{"x":117,"y":707,"width":740,"height":12}},{"id":"45e2027a-9d5e-43a5-b294-543b288efd2c","block_type":"box","text":"term performance, there is no guarantee that such results will be achieved.","page_number":83,"box":{"x":116,"y":723,"width":555,"height":12}},{"id":"ef334441-6eeb-49fd-8616-c1c0c843d6c4","block_type":"box","text":"Equity Securities.","page_number":83,"box":{"x":116,"y":754,"width":140,"height":12}},{"id":"18b89a9b-ec4d-47c8-aa68-a8bcca88c92d","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for","page_number":83,"box":{"x":263,"y":754,"width":618,"height":12}},{"id":"91610e64-fb5c-4ec2-bb70-45b084a1a9fa","block_type":"box","text":"certain Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants","page_number":83,"box":{"x":116,"y":769,"width":755,"height":12}},{"id":"49c01c9d-5c6d-4b53-bab0-08717ec9822a","block_type":"box","text":"and rights; equity interests in trusts; general and limited partnerships and limited liability companies;","page_number":83,"box":{"x":116,"y":785,"width":739,"height":12}},{"id":"97e10ec1-e398-45c5-a4dc-706e56b33313","block_type":"box","text":"and depositary receipts. Stock markets are volatile. The price of equity securities will fluctuate and can","page_number":83,"box":{"x":116,"y":800,"width":759,"height":12}},{"id":"3c31a6bf-3fc1-4663-b8ae-cdb762595457","block_type":"box","text":"decline and reduce the value of a portfolio investing in equities. The price of equity securities fluctuates","page_number":83,"box":{"x":116,"y":816,"width":763,"height":12}},{"id":"8f5847bc-c4ef-42ab-86a8-3254ec6948c6","block_type":"box","text":"based on changes in a company’s financial condition and overall market and economic conditions. The","page_number":83,"box":{"x":117,"y":831,"width":767,"height":12}},{"id":"9700d8f8-99ba-4194-aed1-cd4689b884e4","block_type":"box","text":"value of equity securities purchased by the Fund could decline if the financial condition of the","page_number":83,"box":{"x":116,"y":847,"width":695,"height":12}},{"id":"568db409-d11b-4977-804e-ec366e78bcac","block_type":"box","text":"companies the Fund invests in decline or if overall market and economic conditions deteriorate. They","page_number":83,"box":{"x":116,"y":862,"width":755,"height":12}},{"id":"3774ecf1-ec14-4fd8-8878-22e70c432c36","block_type":"box","text":"may also decline due to factors that affect a particular industry or industries, such as labor shortages or","page_number":83,"box":{"x":117,"y":878,"width":770,"height":12}},{"id":"42778042-3549-45c4-b9bd-ffea97f6a32e","block_type":"box","text":"II-33","page_number":83,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"8fca0c12-4ca6-47f4-8711-3f4f38a2d6b1","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":83,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"6b55b1c5-1dd3-4d29-9f9c-0b3561b9122d","block_type":"box","text":"increase in production costs and competitive conditions within an industry. In addition, they may","page_number":84,"box":{"x":117,"y":87,"width":714,"height":12}},{"id":"b11f6ef0-fdfa-4003-ab7e-fbe5f8e9d672","block_type":"box","text":"decline due to general market conditions that are not specifically related to a company or industry,","page_number":84,"box":{"x":116,"y":102,"width":732,"height":13}},{"id":"4eca6940-ab11-407b-9191-4a5b96d813a7","block_type":"box","text":"such as real or perceived adverse economic conditions, changes in the general outlook for corporate","page_number":84,"box":{"x":116,"y":118,"width":753,"height":12}},{"id":"a1ef2769-f3a4-4296-9095-a06f8427e68e","block_type":"box","text":"earnings, changes in interest or currency rates or generally adverse investor sentiment.","page_number":84,"box":{"x":116,"y":134,"width":654,"height":12}},{"id":"81ecc486-c703-419b-b684-726108a0f5a4","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public","page_number":84,"box":{"x":117,"y":165,"width":704,"height":12}},{"id":"0e65ce1c-f517-40b4-8c93-bde68051d5c3","block_type":"box","text":"offerings (“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for","page_number":84,"box":{"x":116,"y":180,"width":764,"height":12}},{"id":"08a90848-ea54-41b1-babf-6d77c8d714fb","block_type":"box","text":"certain Funds. There is no assurance that any Fund will have continued access to profitable IPOs and","page_number":84,"box":{"x":116,"y":196,"width":761,"height":12}},{"id":"67c1f419-b676-4ad6-ba8f-a4de47936cd1","block_type":"box","text":"therefore investors should not rely on these past gains as an indication of future performance. The","page_number":84,"box":{"x":116,"y":211,"width":734,"height":12}},{"id":"57c034dc-fcb9-4a6d-8508-e48f8248d78f","block_type":"box","text":"investment performance of a Fund during periods when it is unable to invest significantly or at all in","page_number":84,"box":{"x":117,"y":227,"width":738,"height":12}},{"id":"8c04a50a-0057-427b-b360-b2590c9a900d","block_type":"box","text":"IPOs may be lower than during periods when it is able to do so. In addition, as a Fund increases in","page_number":84,"box":{"x":117,"y":242,"width":736,"height":12}},{"id":"64ad8c39-0cef-47c8-a965-2e2a8185c8e3","block_type":"box","text":"size, the impact of IPOs on its performance will generally decrease. Securities issued in IPOs are","page_number":84,"box":{"x":116,"y":258,"width":727,"height":12}},{"id":"910f0382-df2b-485a-b117-0fbe95a8dce9","block_type":"box","text":"subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":84,"box":{"x":116,"y":273,"width":717,"height":12}},{"id":"0cdb91aa-6949-4cca-a26d-e0fe7630b31d","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be","page_number":84,"box":{"x":116,"y":289,"width":713,"height":12}},{"id":"c99f7eb4-124d-4f3d-9b97-f685b51c3920","block_type":"box","text":"available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile","page_number":84,"box":{"x":116,"y":304,"width":770,"height":12}},{"id":"f9c7851f-69e3-4f09-aa7c-ddac6cc6dbbd","block_type":"box","text":"or may decline shortly after the initial public offering.","page_number":84,"box":{"x":116,"y":320,"width":392,"height":12}},{"id":"956a20ea-3194-4650-a2a1-23b7fad09350","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These","page_number":84,"box":{"x":116,"y":351,"width":685,"height":12}},{"id":"51d634bc-a7ca-4cab-b0f9-e662436ad363","block_type":"box","text":"organizations will normally have more limited product lines, markets and financial resources and will be","page_number":84,"box":{"x":116,"y":366,"width":769,"height":12}},{"id":"2c77225e-6541-4089-af3e-4664532b3087","block_type":"box","text":"dependent upon a more limited management group than larger capitalized companies. In addition, it is","page_number":84,"box":{"x":116,"y":382,"width":764,"height":12}},{"id":"039b0edd-35f6-423a-ba7c-009a34247156","block_type":"box","text":"more difficult to get information on smaller companies, which tend to be less well known, have shorter","page_number":84,"box":{"x":117,"y":397,"width":758,"height":12}},{"id":"ffd732c5-6b9f-4616-b500-211f4a589a41","block_type":"box","text":"operating histories, do not have significant ownership by large investors and are followed by relatively","page_number":84,"box":{"x":116,"y":413,"width":758,"height":12}},{"id":"9764ad37-4cfb-44a7-a774-a5e96266a294","block_type":"box","text":"few securities analysts. The securities of smaller capitalized companies are often traded in the OTC","page_number":84,"box":{"x":116,"y":428,"width":744,"height":12}},{"id":"b79e860a-3d9f-415d-8269-cb3c40e360b0","block_type":"box","text":"markets and may have fewer market makers and wider price spreads. This may result in greater price","page_number":84,"box":{"x":117,"y":444,"width":760,"height":12}},{"id":"ac0b699d-20a6-49e2-a8ae-d9818be489af","block_type":"box","text":"movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":84,"box":{"x":117,"y":459,"width":743,"height":12}},{"id":"cc83084f-cfa4-4ba5-80d8-18fead2a332e","block_type":"box","text":"more established companies.","page_number":84,"box":{"x":117,"y":475,"width":222,"height":12}},{"id":"857c6329-4aa6-45a2-9457-ccee6958fdd2","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks","page_number":84,"box":{"x":117,"y":506,"width":693,"height":12}},{"id":"3db6b347-764e-48a4-88a3-d45f4ddceec1","block_type":"box","text":"associated with investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds","page_number":84,"box":{"x":116,"y":521,"width":754,"height":12}},{"id":"bef52d9d-619f-40d9-a569-971e5bbbd9c3","block_type":"box","text":"may also invest in shares of private companies, which are subject to the risks of “Illiquid Investments”","page_number":84,"box":{"x":117,"y":537,"width":756,"height":12}},{"id":"c18074c9-0e76-44da-b9b2-fe90ffee3f16","block_type":"box","text":"and “Restricted Securities” described below.","page_number":84,"box":{"x":116,"y":552,"width":334,"height":10}},{"id":"eb7b5e43-6cad-456f-9d69-4e49ded7f103","block_type":"box","text":"Real Estate-Related Securities.","page_number":84,"box":{"x":116,"y":583,"width":232,"height":10}},{"id":"20aa6f8c-e37e-4332-a1f5-551c0223d2fc","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may","page_number":84,"box":{"x":349,"y":583,"width":535,"height":12}},{"id":"945a85fb-141e-429e-92d4-03b1ee379b1f","block_type":"box","text":"invest in equity securities of issuers that are principally engaged in the real estate industry. Such","page_number":84,"box":{"x":117,"y":599,"width":719,"height":12}},{"id":"668e7c67-dde7-4bf4-888c-ee4baa524066","block_type":"box","text":"investments are subject to certain risks associated with the ownership of real estate and with the real","page_number":84,"box":{"x":117,"y":614,"width":753,"height":12}},{"id":"9f24272b-2289-40b7-a3a3-a9436320806a","block_type":"box","text":"estate industry in general. These risks include, among others: possible declines in the value of real","page_number":84,"box":{"x":116,"y":630,"width":738,"height":12}},{"id":"08167ab1-bce7-47db-b11d-5d25fbaba4b0","block_type":"box","text":"estate; risks related to general and local economic conditions; possible lack of availability of mortgage","page_number":84,"box":{"x":116,"y":645,"width":760,"height":12}},{"id":"203be5b7-22c4-4bb1-a460-a16ce5003816","block_type":"box","text":"funds or other limitations on access to capital; overbuilding; risks associated with leverage; market","page_number":84,"box":{"x":116,"y":661,"width":729,"height":12}},{"id":"bf6e9c6a-07af-4c63-a5fe-e53961174b8c","block_type":"box","text":"illiquidity; extended vacancies of properties; increase in competition, property taxes, capital","page_number":84,"box":{"x":117,"y":676,"width":673,"height":12}},{"id":"68cd5234-248e-43fa-adee-8334f75bb67f","block_type":"box","text":"expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":84,"box":{"x":116,"y":692,"width":760,"height":12}},{"id":"99b83754-9841-49d1-88a0-06a496507f91","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental","page_number":84,"box":{"x":117,"y":707,"width":740,"height":12}},{"id":"ad8bf2ee-6721-4e7d-b75c-5959f3971861","block_type":"box","text":"problems; tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured","page_number":84,"box":{"x":117,"y":723,"width":742,"height":12}},{"id":"bab8fc01-0b23-46fe-a9d7-2ce1fc790b8b","block_type":"box","text":"damages from floods, earthquakes or other natural disasters; limitations on and variations in rents,","page_number":84,"box":{"x":116,"y":738,"width":730,"height":12}},{"id":"41408d46-7402-42ca-884a-b6b187233183","block_type":"box","text":"including decreases in market rates for rents; investment in developments that are not completed or","page_number":84,"box":{"x":117,"y":754,"width":740,"height":12}},{"id":"60ee1283-1ae8-4058-bc60-c7c5c096b04c","block_type":"box","text":"that are subject to delays in completion; and changes in interest rates. To the extent that assets","page_number":84,"box":{"x":116,"y":769,"width":710,"height":12}},{"id":"790bd6ea-60c8-4f7e-8f53-e42b719c114a","block_type":"box","text":"underlying a Fund’s investments are concentrated geographically, by property type or in certain other","page_number":84,"box":{"x":117,"y":785,"width":750,"height":12}},{"id":"61129b44-d1fd-477c-b98e-9d76a9af8b99","block_type":"box","text":"respects, the Fund may be subject to certain of the foregoing risks to a greater extent. Investments by","page_number":84,"box":{"x":117,"y":800,"width":755,"height":12}},{"id":"cd415328-762c-4d2d-850d-8a56fbf825b5","block_type":"box","text":"a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":84,"box":{"x":116,"y":816,"width":750,"height":12}},{"id":"fd25825d-05c1-41b3-ad40-9dbf4cb4868a","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":84,"box":{"x":116,"y":831,"width":399,"height":12}},{"id":"10325824-d616-4d04-b238-a389bdef0d91","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as","page_number":84,"box":{"x":117,"y":862,"width":768,"height":12}},{"id":"ee16f3f3-67cf-4bd9-b0c8-82e1ba41c688","block_type":"box","text":"a result of a default on securities the Fund owns, the receipt of such income may adversely affect the","page_number":84,"box":{"x":116,"y":878,"width":755,"height":12}},{"id":"5bff9ac5-ca9e-4e10-b8d6-4ef4be1e2f49","block_type":"box","text":"II-34","page_number":84,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4b420595-8179-48a9-b3e8-0996b7423227","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":84,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"f82a3bb0-0dcf-4056-9fa1-6221dad86969","block_type":"box","text":"Fund’s ability to retain its tax status as a regulated investment company because of certain income","page_number":85,"box":{"x":117,"y":87,"width":737,"height":12}},{"id":"d8fb4964-ac16-4f7a-b5ea-08b895d47745","block_type":"box","text":"source requirements applicable to regulated investment companies under the Internal Revenue Code","page_number":85,"box":{"x":116,"y":102,"width":757,"height":13}},{"id":"03876bec-92f3-4be8-a460-c52b76f9d8fa","block_type":"box","text":"of 1986, as amended (the “Code”).","page_number":85,"box":{"x":116,"y":118,"width":263,"height":12}},{"id":"341316f7-4ea9-4024-97e4-8a260eba5e6f","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":85,"box":{"x":117,"y":151,"width":401,"height":12}},{"id":"0d009e09-9ddf-4baf-983c-d5f6bb1be728","block_type":"box","text":"Investment in smaller or emerging growth","page_number":85,"box":{"x":520,"y":151,"width":318,"height":12}},{"id":"6462ab3f-8c08-43ae-875b-350a29b7949e","block_type":"box","text":"companies involves greater risk than is customarily associated with investments in more established","page_number":85,"box":{"x":116,"y":167,"width":749,"height":12}},{"id":"ec507676-df1c-4b10-bebf-f71730a4cedc","block_type":"box","text":"companies. The securities of smaller or emerging growth companies may be subject to more abrupt or","page_number":85,"box":{"x":116,"y":182,"width":765,"height":12}},{"id":"ce8780e0-7a3d-44bd-b8e4-c661e3aae93e","block_type":"box","text":"erratic market movements than larger, more established companies or the market average in general.","page_number":85,"box":{"x":116,"y":198,"width":761,"height":12}},{"id":"52200601-55b3-4826-a429-62234d9a8d4c","block_type":"box","text":"These companies may have limited product lines, markets or financial resources, or they may be","page_number":85,"box":{"x":116,"y":213,"width":723,"height":12}},{"id":"cea41a84-9355-4416-824a-1a977dc85aaa","block_type":"box","text":"dependent on a limited management group.","page_number":85,"box":{"x":116,"y":229,"width":330,"height":12}},{"id":"d6b16458-7a80-4986-ab7d-35f2701957bf","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be","page_number":85,"box":{"x":117,"y":262,"width":727,"height":12}},{"id":"3156a44a-93ce-4864-9be1-4c9d99ce5895","block_type":"box","text":"considered speculative. Full development of these companies and trends frequently takes time.","page_number":85,"box":{"x":116,"y":277,"width":713,"height":12}},{"id":"2aba5acd-8a34-4a86-ad5d-8d7b9ba35e66","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional","page_number":85,"box":{"x":116,"y":310,"width":762,"height":12}},{"id":"3fce91e8-57ae-4aea-b3c8-6a4875015ef7","block_type":"box","text":"securities exchange and may not be traded every day or in the volume typical of trading on a national","page_number":85,"box":{"x":116,"y":325,"width":757,"height":12}},{"id":"6f67c5dd-eb71-4e65-91ae-7ae9f59a88c3","block_type":"box","text":"securities exchange. As a result, the disposition by a Fund of portfolio securities to meet redemptions","page_number":85,"box":{"x":116,"y":341,"width":756,"height":12}},{"id":"107d866e-9399-4be2-91f1-56bee755c7c6","block_type":"box","text":"or otherwise may require the Fund to make many small sales over a lengthy period of time, or to sell","page_number":85,"box":{"x":116,"y":356,"width":749,"height":12}},{"id":"7e93eb04-e168-48a9-abf1-b0f78501c698","block_type":"box","text":"these securities at a discount from market prices or during periods when, in Fund management’s","page_number":85,"box":{"x":116,"y":372,"width":722,"height":12}},{"id":"aac8e86f-1298-4739-8cf9-5e7c19af1e5d","block_type":"box","text":"judgment, such disposition is not desirable.","page_number":85,"box":{"x":115,"y":388,"width":326,"height":11}},{"id":"a834ae87-6074-47aa-9a60-d2d447cba194","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee","page_number":85,"box":{"x":116,"y":420,"width":714,"height":12}},{"id":"9b524776-621f-4775-b87d-5338790e0bc7","block_type":"box","text":"successful investment results. Careful initial selection is particularly important in this area as many new","page_number":85,"box":{"x":116,"y":436,"width":770,"height":12}},{"id":"81c80443-b2da-49c4-aa69-48e7c6c7de9e","block_type":"box","text":"enterprises have promise but lack certain of the fundamental factors necessary to prosper. Investing in","page_number":85,"box":{"x":116,"y":451,"width":767,"height":12}},{"id":"d48f5a4d-64ef-4a9c-a1df-3ec8f18ade53","block_type":"box","text":"small cap and emerging growth companies requires specialized research and analysis.","page_number":85,"box":{"x":116,"y":467,"width":651,"height":12}},{"id":"a4c01737-5965-4e8e-bb98-313c6c24856e","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into","page_number":85,"box":{"x":117,"y":500,"width":753,"height":12}},{"id":"22d0a3f8-4b34-482c-a25b-d6207790e86d","block_type":"box","text":"significant business enterprises. A Fund may invest in securities of small issuers in the relatively early","page_number":85,"box":{"x":116,"y":515,"width":759,"height":12}},{"id":"c97c1b33-e3a9-4b5c-a2bd-c78ddbc7eff9","block_type":"box","text":"stages of business development that have a new technology, a unique or proprietary product or","page_number":85,"box":{"x":116,"y":531,"width":714,"height":12}},{"id":"36c5da55-aa17-4af1-887a-84430b212c34","block_type":"box","text":"service, or a favorable market position.","page_number":85,"box":{"x":116,"y":546,"width":294,"height":12}},{"id":"f0e07522-e2d2-4009-8057-b00bd06aa4f6","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":85,"box":{"x":117,"y":579,"width":757,"height":12}},{"id":"11e24877-3f06-460f-9e9c-9829b65a890f","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying","page_number":85,"box":{"x":116,"y":595,"width":763,"height":12}},{"id":"b52b63d3-2078-4fe2-a949-ec4995d9d51c","block_type":"box","text":"stages of their business development. The market valuation of small cap issuers tends to fluctuate","page_number":85,"box":{"x":116,"y":610,"width":734,"height":12}},{"id":"be65b216-3c6c-4591-9160-2fe7af28c897","block_type":"box","text":"during economic or market cycles.","page_number":85,"box":{"x":116,"y":626,"width":260,"height":12}},{"id":"0c14a66b-82f2-48cb-8714-55a4b0e79024","block_type":"box","text":"Tracking Stocks.","page_number":85,"box":{"x":118,"y":659,"width":120,"height":12}},{"id":"439fd89d-7869-465a-b9fc-f61083b90ac8","block_type":"box","text":"A tracking stock is a separate class of common stock whose value is linked to a","page_number":85,"box":{"x":240,"y":659,"width":601,"height":12}},{"id":"109e7fd6-e876-4dac-b478-5dc593c5bb02","block_type":"box","text":"specific business unit or operating division within a larger company and is designed to “track” the","page_number":85,"box":{"x":116,"y":674,"width":718,"height":12}},{"id":"6359bdf5-43d7-4af7-8ab1-78ce363f6502","block_type":"box","text":"performance of such business unit or division. The tracking stock may pay dividends to shareholders","page_number":85,"box":{"x":117,"y":690,"width":746,"height":12}},{"id":"4192ebb4-91c3-4612-a38e-f39a5ac688c9","block_type":"box","text":"independent of the parent company. The parent company, rather than the business unit or division,","page_number":85,"box":{"x":117,"y":705,"width":733,"height":12}},{"id":"9ffc30c2-446c-497b-8976-5757f9987573","block_type":"box","text":"generally is the issuer of tracking stock. However, holders of the tracking stock may not have the same","page_number":85,"box":{"x":116,"y":721,"width":763,"height":12}},{"id":"8721f6de-0eaa-43e9-bb17-3fd1414a25b0","block_type":"box","text":"rights as holders of the company’s common stock.","page_number":85,"box":{"x":117,"y":736,"width":371,"height":12}},{"id":"3ca28ef9-6c2e-4ed4-97dd-5d59422031f9","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":85,"box":{"x":116,"y":769,"width":271,"height":12}},{"id":"408a396a-bd9a-400d-b33a-c7cbdd16e09c","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes","page_number":85,"box":{"x":394,"y":769,"width":453,"height":12}},{"id":"996a8e68-4347-4ba2-9552-efd50045cbeb","block_type":"box","text":"representing debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and","page_number":85,"box":{"x":117,"y":785,"width":765,"height":12}},{"id":"59266aeb-c29b-454c-a34e-7a1cfafea96a","block_type":"box","text":"ETFs. An ETN’s returns are based on the performance of one or more underlying assets, reference","page_number":85,"box":{"x":117,"y":800,"width":737,"height":12}},{"id":"5c5aca97-4386-47cc-a0a5-0a3a6bbb5d8c","block_type":"box","text":"rates or indexes, minus fees and expenses. Similar to ETFs, ETNs are listed on an exchange and","page_number":85,"box":{"x":117,"y":816,"width":724,"height":12}},{"id":"67454cf9-c561-4bad-9b79-1f44eaef9a9f","block_type":"box","text":"traded in the secondary market. However, unlike an ETF, an ETN can be held until the ETN’s maturity,","page_number":85,"box":{"x":116,"y":831,"width":767,"height":12}},{"id":"e466fbe2-a0a2-40b9-a0b1-bb59b0d04594","block_type":"box","text":"at which time the issuer will pay a return linked to the performance of the specific asset, index or rate","page_number":85,"box":{"x":116,"y":847,"width":753,"height":12}},{"id":"2b3e8fae-7ab1-4d39-b2ca-a2c90560b36f","block_type":"box","text":"(“reference instrument”) to which the ETN is linked minus certain fees. Unlike regular bonds, ETNs do","page_number":85,"box":{"x":117,"y":862,"width":758,"height":12}},{"id":"cf15e665-faa0-45bb-90eb-8aab3fad7332","block_type":"box","text":"not make periodic interest payments, and principal is not protected.","page_number":85,"box":{"x":117,"y":878,"width":503,"height":12}},{"id":"552fd3f9-427d-4e67-907d-8ddd06904709","block_type":"box","text":"II-35","page_number":85,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"9d855059-f3ae-4cd7-898c-f58067516c05","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":85,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"84a9aabd-1376-42f5-99cd-1a85a44d1a48","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and","page_number":86,"box":{"x":116,"y":87,"width":749,"height":12}},{"id":"fd5afab5-8752-42c2-abef-efa0c23cde31","block_type":"box","text":"demand for the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable","page_number":86,"box":{"x":116,"y":102,"width":736,"height":13}},{"id":"4d206e00-066f-4eae-ab0a-69f125992f3d","block_type":"box","text":"interest rates, the performance of the reference instrument, changes in the issuer’s credit rating and","page_number":86,"box":{"x":117,"y":118,"width":745,"height":12}},{"id":"3c857e36-c55b-48eb-9b68-065b1c5d7ebd","block_type":"box","text":"economic, legal, political or geographic events that affect the reference instrument. ETNs are subject to","page_number":86,"box":{"x":116,"y":134,"width":772,"height":12}},{"id":"f39970f2-c622-4ef5-b238-0262254f11bb","block_type":"box","text":"credit risk and the value of the ETN may drop due to a downgrade in an issuer’s credit rating, despite","page_number":86,"box":{"x":116,"y":149,"width":755,"height":12}},{"id":"c9a81659-7aa0-4253-a213-a21c9f338d2d","block_type":"box","text":"the underlying reference instrument remaining unchanged. When a Fund invests in ETNs, it will bear","page_number":86,"box":{"x":116,"y":165,"width":752,"height":12}},{"id":"7c5afa39-157c-4bc6-8b85-c3f03939949f","block_type":"box","text":"its proportionate share of any fees and expenses borne by the ETN.","page_number":86,"box":{"x":117,"y":180,"width":509,"height":12}},{"id":"fc51ebb0-00f6-450a-8524-92db8951c1a1","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference","page_number":86,"box":{"x":116,"y":212,"width":720,"height":12}},{"id":"f20e1867-fb34-451a-a45b-f131eb77bbb8","block_type":"box","text":"instrument. ETNs also incur certain expenses not incurred by their applicable reference instrument.","page_number":86,"box":{"x":117,"y":227,"width":740,"height":13}},{"id":"02804c38-493e-4af0-934a-5f8eaeae749d","block_type":"box","text":"Some ETNs that use leverage may, at times, be illiquid and","page_number":86,"box":{"x":116,"y":243,"width":446,"height":12}},{"id":"9f8938ad-f5cb-4fff-89cb-ac9f0d1984e0","block_type":"box","text":"may be difficult to purchase or sell at a fair","page_number":86,"box":{"x":563,"y":243,"width":319,"height":12}},{"id":"ad06d6d1-14ec-4ad9-a681-008e5bc339fc","block_type":"box","text":"price. Levered ETNs are subject to the same risk as other instruments that use leverage in any form.","page_number":86,"box":{"x":117,"y":259,"width":751,"height":12}},{"id":"3b291de9-d8a9-458c-a129-57499d28c561","block_type":"box","text":"While leverage allows for greater potential return, the potential for loss is also greater. Finally,","page_number":86,"box":{"x":116,"y":274,"width":700,"height":12}},{"id":"d1974590-1e3f-4064-b320-702132aa8774","block_type":"box","text":"additional losses may be incurred if the investment loses value because, in addition to the money lost","page_number":86,"box":{"x":116,"y":290,"width":757,"height":12}},{"id":"f65d8d4a-a1d5-4aa7-8401-75d007621fdf","block_type":"box","text":"on the investment, the loan still needs to be repaid.","page_number":86,"box":{"x":116,"y":305,"width":384,"height":12}},{"id":"b85436c1-dda5-413a-949c-b34b8dc4dd4f","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its","page_number":86,"box":{"x":117,"y":337,"width":685,"height":12}},{"id":"17210273-ddc0-4533-910c-82fa96f8135b","block_type":"box","text":"obligations, the value of the ETN may change due to a change in the issuer’s credit rating, despite no","page_number":86,"box":{"x":116,"y":352,"width":757,"height":13}},{"id":"1174a162-2896-4758-b2f3-f55c2c12fc01","block_type":"box","text":"change in the underlying reference instrument. The market value of ETN shares may differ from the","page_number":86,"box":{"x":116,"y":368,"width":744,"height":12}},{"id":"9bf99507-c082-4bc6-b4c1-6ecadec49f0d","block_type":"box","text":"value of the reference instrument. This difference in price may be due to the fact that the supply and","page_number":86,"box":{"x":116,"y":384,"width":748,"height":12}},{"id":"3b89d73c-fb7f-4847-a233-ac7853aa625e","block_type":"box","text":"demand in the market for ETN shares at any point in time is not always identical to the supply and","page_number":86,"box":{"x":116,"y":399,"width":732,"height":12}},{"id":"94fc5872-5fe8-48b5-b3cd-2af093c7de0e","block_type":"box","text":"demand in the market for the assets underlying the reference instrument that the ETN seeks to track.","page_number":86,"box":{"x":116,"y":415,"width":755,"height":12}},{"id":"f5e75f43-3ffd-45bc-b343-e5b29614d9fc","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally","page_number":86,"box":{"x":116,"y":447,"width":761,"height":12}},{"id":"b3a0d1ff-8baf-4a10-a847-b39f697188a0","block_type":"box","text":"meant to be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the","page_number":86,"box":{"x":117,"y":462,"width":728,"height":12}},{"id":"293c2ae3-0ef7-481f-a285-70c287121190","block_type":"box","text":"availability of a secondary market. An investor in an ETN could lose some or all of the amount","page_number":86,"box":{"x":116,"y":477,"width":701,"height":13}},{"id":"735c81eb-cae3-4cbf-8388-410ae171827b","block_type":"box","text":"invested.","page_number":86,"box":{"x":117,"y":493,"width":71,"height":10}},{"id":"c7191984-3833-4412-b71c-2ab89a2b13c6","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a","page_number":86,"box":{"x":117,"y":525,"width":739,"height":12}},{"id":"6efdfbd6-9aa8-48cc-9376-eabfe631d918","block_type":"box","text":"court may not uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and","page_number":86,"box":{"x":116,"y":540,"width":742,"height":13}},{"id":"af8c62ed-150e-4f24-833d-1d1f95c6b60f","block_type":"box","text":"character of income and gains derived by a Fund from investments in ETNs may be affected by future","page_number":86,"box":{"x":116,"y":556,"width":762,"height":12}},{"id":"472120ad-d0e1-44cb-a321-14d86fb99323","block_type":"box","text":"legislation.","page_number":86,"box":{"x":117,"y":572,"width":83,"height":12}},{"id":"5e77847f-baaa-40cf-b5ea-5c664fbdfb86","block_type":"box","text":"Foreign Investments.","page_number":86,"box":{"x":116,"y":604,"width":174,"height":12}},{"id":"3cbaf464-2ba7-41f3-a870-2e88caeb23ae","block_type":"box","text":"Foreign Investment Risks.","page_number":86,"box":{"x":116,"y":627,"width":193,"height":12}},{"id":"50eb843e-6f2e-4f3c-ab8b-7d74ecf84889","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from","page_number":86,"box":{"x":310,"y":627,"width":540,"height":12}},{"id":"22ca1c57-d2f0-4cf8-981a-2b30e8102abb","block_type":"box","text":"issuers located in emerging market countries. These securities may be denominated in U.S. dollars or","page_number":86,"box":{"x":117,"y":643,"width":760,"height":12}},{"id":"9f7573d0-7c0f-4899-a8b5-520dc8bbb0e6","block_type":"box","text":"in a foreign currency. Investing in foreign securities involves risks not typically associated with investing","page_number":86,"box":{"x":117,"y":658,"width":770,"height":12}},{"id":"6cc91c95-1c81-484d-a51a-75be202f169e","block_type":"box","text":"in securities of companies organized and operated in the United States that can increase the chances","page_number":86,"box":{"x":117,"y":674,"width":754,"height":12}},{"id":"fcf90692-096f-44cb-9232-9d297d912404","block_type":"box","text":"that a Fund will lose money.","page_number":86,"box":{"x":116,"y":689,"width":207,"height":12}},{"id":"75bd4bd7-56fd-416e-bad2-699c45d9f564","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be","page_number":86,"box":{"x":116,"y":721,"width":757,"height":12}},{"id":"4da653d4-8908-4784-be53-a043d0481b9b","block_type":"box","text":"foreign securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are","page_number":86,"box":{"x":116,"y":737,"width":761,"height":12}},{"id":"644266b2-72b0-4904-9fa5-0e4554cb26a7","block_type":"box","text":"conducted from the U.S., (ii) the company’s equity securities trade principally on a U.S. stock","page_number":86,"box":{"x":116,"y":752,"width":689,"height":12}},{"id":"a17ff10d-0555-4efe-bf77-da4c1605fe52","block_type":"box","text":"exchange, (iii) the company does a substantial amount of business in the U.S. or (iv) the issuer of","page_number":86,"box":{"x":116,"y":768,"width":725,"height":12}},{"id":"e2c4d81f-4d86-4f0d-817c-dad65b5caed9","block_type":"box","text":"securities is included in the Fund’s primary U.S. benchmark index.","page_number":86,"box":{"x":116,"y":783,"width":490,"height":12}},{"id":"d556ea7d-f94e-44a2-950d-083e9fd1fecf","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations","page_number":86,"box":{"x":117,"y":815,"width":721,"height":12}},{"id":"b1114b37-320a-45ff-a16b-80df9383212c","block_type":"box","text":"issued or guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities","page_number":86,"box":{"x":117,"y":831,"width":767,"height":12}},{"id":"118545e0-5a47-4664-9e80-c91a39949b0e","block_type":"box","text":"or political subdivisions, including a foreign state, province or municipality; (b) debt obligations of","page_number":86,"box":{"x":116,"y":846,"width":720,"height":12}},{"id":"ec3ab231-296e-47ca-acb4-0dca6c4014b0","block_type":"box","text":"supranational organizations; (c) debt obligations of foreign banks and bank holding companies;","page_number":86,"box":{"x":116,"y":862,"width":710,"height":12}},{"id":"520e1c65-e254-4871-a02a-fcb295fc656e","block_type":"box","text":"(d) debt obligations of domestic banks and corporations issued in foreign currencies; (e) debt","page_number":86,"box":{"x":117,"y":877,"width":694,"height":12}},{"id":"221d7f53-65a4-4412-9ff5-4ba40342978f","block_type":"box","text":"II-36","page_number":86,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c827b393-426d-4c8e-8237-c6a80e457e9e","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":86,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"4de8b872-61a4-4d7d-b666-ec4f6bdf00a3","block_type":"box","text":"obligations denominated in the Euro; and (f) foreign corporate debt securities and commercial paper.","page_number":87,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"9107e0af-0e78-48a7-9f7f-223a7f0377d9","block_type":"box","text":"Such securities may include loan participations and assignments, convertible securities and","page_number":87,"box":{"x":116,"y":102,"width":684,"height":13}},{"id":"c02fb5f8-8c81-40ad-8efd-a8c025bfdaf7","block_type":"box","text":"zero-coupon securities.","page_number":87,"box":{"x":116,"y":118,"width":178,"height":12}},{"id":"12677940-4923-47b0-acfd-cd391a781331","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign","page_number":87,"box":{"x":117,"y":149,"width":729,"height":12}},{"id":"9a32eae5-82b4-49e2-8b4a-87ca847584a2","block_type":"box","text":"withholding taxes.","page_number":87,"box":{"x":116,"y":165,"width":138,"height":12}},{"id":"97d56361-8e4a-4184-b394-aad870af308f","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign","page_number":87,"box":{"x":116,"y":196,"width":715,"height":12}},{"id":"1c25683d-4673-48a8-af61-567a65be2279","block_type":"box","text":"exchanges or in foreign markets that are closed when the securities exchange on which the Fund’s","page_number":87,"box":{"x":116,"y":211,"width":740,"height":12}},{"id":"4e5d54c1-bf28-4eeb-876a-bb3bdbc1007e","block_type":"box","text":"shares trade is open, there are likely to be deviations between the current price of such an underlying","page_number":87,"box":{"x":116,"y":227,"width":758,"height":12}},{"id":"c90189d8-787e-47e0-a466-338e086e26e3","block_type":"box","text":"security and the last quoted price for the underlying security (i.e., the Fund’s quote from the closed","page_number":87,"box":{"x":116,"y":242,"width":736,"height":12}},{"id":"5c7495bb-d401-47d7-94c5-c936fbce67fe","block_type":"box","text":"foreign market). The impact of a closed foreign market on a Fund is likely to be greater where a large","page_number":87,"box":{"x":116,"y":258,"width":755,"height":12}},{"id":"efd91b2e-e16e-4234-8360-8a9b5b5e9a50","block_type":"box","text":"portion of the Fund’s underlying securities or other instruments trade on that closed foreign market or","page_number":87,"box":{"x":117,"y":273,"width":754,"height":12}},{"id":"a959779d-df55-4535-ae43-df253bd117b8","block_type":"box","text":"when the foreign market is closed for unscheduled reasons. These deviations may result in premiums","page_number":87,"box":{"x":116,"y":289,"width":759,"height":12}},{"id":"dccf2da7-0274-41d7-a408-7f8fc088de50","block_type":"box","text":"or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":87,"box":{"x":116,"y":304,"width":718,"height":12}},{"id":"7b8c540d-357c-42a0-971d-d16c18b7503e","block_type":"box","text":"Foreign Market Risk.","page_number":87,"box":{"x":116,"y":335,"width":152,"height":12}},{"id":"987723c1-18b8-413c-aaa1-c193b7ed8f60","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more","page_number":87,"box":{"x":269,"y":335,"width":521,"height":12}},{"id":"993f869b-fc37-405e-a7bc-c31bbe79733d","block_type":"box","text":"diversification than a Fund that invests only in the United States because securities traded on foreign","page_number":87,"box":{"x":116,"y":351,"width":746,"height":12}},{"id":"285c9a21-b98a-4934-9751-8e3523bfd437","block_type":"box","text":"markets have often (though not always) performed differently from securities traded in the United","page_number":87,"box":{"x":117,"y":366,"width":715,"height":12}},{"id":"0cc0be58-e07a-46d3-aaf7-4bbf4b380beb","block_type":"box","text":"States. However, such investments often involve risks not present in U.S. investments that can increase","page_number":87,"box":{"x":116,"y":382,"width":769,"height":12}},{"id":"b099c038-e8fb-4bb8-855e-ef69dc114277","block_type":"box","text":"the chances that a Fund will lose money. In particular, a Fund is subject to the risk that, because there","page_number":87,"box":{"x":116,"y":397,"width":756,"height":12}},{"id":"e873aeba-09b5-4dbf-8ed5-9e22f021e204","block_type":"box","text":"are generally fewer investors on foreign exchanges and a smaller number of shares traded each day, it","page_number":87,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"19559efc-b2a9-4a9e-811a-c6e0ce182459","block_type":"box","text":"may be difficult for the Fund to buy and sell securities on those exchanges. In addition, prices of foreign","page_number":87,"box":{"x":117,"y":428,"width":763,"height":12}},{"id":"b8a85386-29d5-4788-92ec-2345fffbddce","block_type":"box","text":"securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":87,"box":{"x":116,"y":444,"width":719,"height":12}},{"id":"8375a5e1-15ac-412f-85f7-10ee83de6966","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of","page_number":87,"box":{"x":116,"y":459,"width":727,"height":12}},{"id":"80a8f326-cf90-4360-acb4-e9fc1f44a0ae","block_type":"box","text":"punitive taxes or tariffs. In addition, economic conditions, such as volatile currency exchange rates and","page_number":87,"box":{"x":117,"y":475,"width":759,"height":12}},{"id":"cafdc870-8553-4ba1-b579-326fbdd3f7d5","block_type":"box","text":"interest rates, political events, military action and other conditions may, without prior warning, lead to the","page_number":87,"box":{"x":117,"y":490,"width":770,"height":12}},{"id":"82407bdd-16c4-43c4-afdb-b52519b5b28e","block_type":"box","text":"governments of certain countries, or the U.S. Government with respect to certain countries, prohibiting","page_number":87,"box":{"x":116,"y":506,"width":756,"height":12}},{"id":"ea0d46f4-f0e0-437d-b586-cab0076ff2c1","block_type":"box","text":"or imposing substantial restrictions through capital controls and/or sanctions on foreign investing in the","page_number":87,"box":{"x":116,"y":521,"width":758,"height":12}},{"id":"e70e878b-0999-4aee-9a8b-26d532c416f0","block_type":"box","text":"capital markets or certain industries in those countries. Capital controls and/or sanctions may include","page_number":87,"box":{"x":116,"y":537,"width":746,"height":12}},{"id":"66547a70-4a37-4a8b-b859-8e0198387067","block_type":"box","text":"the prohibition of, or restrictions on, the ability to own or transfer currency, securities, derivatives or","page_number":87,"box":{"x":116,"y":552,"width":730,"height":12}},{"id":"f96907da-c6b4-4a8c-87ea-481a839577f3","block_type":"box","text":"other assets and may also include retaliatory actions of one government against another government,","page_number":87,"box":{"x":116,"y":568,"width":752,"height":12}},{"id":"9bcf9282-6aa2-4891-ab1e-c06a2f70c741","block_type":"box","text":"such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":87,"box":{"x":116,"y":583,"width":758,"height":12}},{"id":"d482a3da-202d-49c9-84e9-05a78d0646b8","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the","page_number":87,"box":{"x":116,"y":599,"width":738,"height":12}},{"id":"9f473b56-cca2-4c29-8b65-a63b1cc88f38","block_type":"box","text":"ability to transfer the Fund’s assets or income back into the United States, and could negatively impact","page_number":87,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"3982e94c-ee22-4bc4-9550-b38e32e28869","block_type":"box","text":"the value and/or liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the","page_number":87,"box":{"x":116,"y":630,"width":757,"height":12}},{"id":"8de8d13c-9f8c-431a-9076-76bf3c36e643","block_type":"box","text":"Fund to decline in value. Other potential foreign market risks include exchange controls, difficulties in","page_number":87,"box":{"x":117,"y":645,"width":745,"height":12}},{"id":"e5c0f72a-eec4-444c-b170-656de801d286","block_type":"box","text":"pricing securities, defaults on foreign government securities, difficulties in enforcing favorable legal","page_number":87,"box":{"x":117,"y":661,"width":722,"height":12}},{"id":"dd37acf1-591d-4058-99ff-f33c6c315e1f","block_type":"box","text":"judgments in foreign courts, and political and social conditions, such as diplomatic relations,","page_number":87,"box":{"x":115,"y":676,"width":674,"height":12}},{"id":"5d3ab319-ef99-4b75-8ec0-a2bbaecad287","block_type":"box","text":"confiscatory taxation, expropriation, limitation on the removal of funds or assets, or imposition of (or","page_number":87,"box":{"x":116,"y":692,"width":730,"height":12}},{"id":"c28bb8b4-45ac-4370-8113-e873f86a0631","block_type":"box","text":"change in) exchange control regulations. Legal remedies available to investors in certain foreign","page_number":87,"box":{"x":116,"y":707,"width":705,"height":12}},{"id":"96325ed2-544a-4e85-ac4c-971940116f1c","block_type":"box","text":"countries may be less extensive than those available to investors in the United States or other foreign","page_number":87,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"962ef0af-9451-4fde-8654-daf18c185860","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the","page_number":87,"box":{"x":116,"y":738,"width":746,"height":12}},{"id":"5324d7cd-fce2-48f2-8784-c6fd182481c7","block_type":"box","text":"United States or abroad could result in appreciation or depreciation of portfolio securities and could","page_number":87,"box":{"x":117,"y":754,"width":725,"height":12}},{"id":"fe201d0e-795b-43c4-9bd1-2de131321553","block_type":"box","text":"favorably or adversely affect a Fund’s operations.","page_number":87,"box":{"x":116,"y":769,"width":362,"height":12}},{"id":"6ce08b3d-a291-4cda-9f00-9695efcfc1d5","block_type":"box","text":"Foreign Economy Risk.","page_number":87,"box":{"x":116,"y":800,"width":172,"height":12}},{"id":"cd7f45d6-11b8-4058-a080-23e29f1360d1","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with","page_number":87,"box":{"x":295,"y":800,"width":579,"height":12}},{"id":"7c047a99-d7ab-4958-ae1f-1f03cc467a28","block_type":"box","text":"that of the United States with respect to such issues as growth of gross national product, reinvestment","page_number":87,"box":{"x":116,"y":816,"width":759,"height":12}},{"id":"647b6c85-0e16-430d-8cea-fd3e91d19905","block_type":"box","text":"of capital, resources, and balance of payments position. Certain such economies may rely heavily on","page_number":87,"box":{"x":116,"y":831,"width":754,"height":12}},{"id":"e8ed6440-28d8-412d-8bb4-90345d11fe53","block_type":"box","text":"particular industries or foreign capital and are more vulnerable to diplomatic developments, the","page_number":87,"box":{"x":117,"y":847,"width":707,"height":12}},{"id":"b1660862-e2b5-4ae3-90b3-73ae14f9b5c4","block_type":"box","text":"imposition of economic sanctions against a particular country or countries, changes in international","page_number":87,"box":{"x":117,"y":862,"width":737,"height":12}},{"id":"93325800-3b65-4540-868d-5e1cc4b1d51f","block_type":"box","text":"trading patterns, trade barriers, and other protectionist or retaliatory measures.","page_number":87,"box":{"x":116,"y":878,"width":589,"height":12}},{"id":"94ba6b1b-96eb-476c-9e27-71aab6259df8","block_type":"box","text":"II-37","page_number":87,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"a8dffa66-0c9a-4092-a4a9-3a15792dcba9","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":87,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"0662e0a3-c024-4cf5-8bcd-9053077e6ed7","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":88,"box":{"x":117,"y":87,"width":257,"height":12}},{"id":"acf53daf-53d9-4bac-97ed-77a2c7de046a","block_type":"box","text":"Because foreign securities generally are denominated and pay","page_number":88,"box":{"x":376,"y":87,"width":475,"height":12}},{"id":"c8a3c8ff-2fde-44ff-9e71-79803e9ad256","block_type":"box","text":"dividends or interest in foreign currencies, the value of a Fund that invests in foreign securities as","page_number":88,"box":{"x":116,"y":102,"width":727,"height":13}},{"id":"2f503a86-ffd2-48cd-baa6-405b75e178f0","block_type":"box","text":"measured in U.S. dollars will be affected favorably or unfavorably by changes in exchange rates.","page_number":88,"box":{"x":117,"y":118,"width":721,"height":12}},{"id":"26479cf3-f552-48c6-a1ba-45d032b0d114","block_type":"box","text":"Generally, when the U.S. dollar rises in value against a foreign currency, a security denominated in","page_number":88,"box":{"x":117,"y":134,"width":739,"height":12}},{"id":"b99606e0-85f2-49f6-b9e8-caed8d61427a","block_type":"box","text":"that currency loses value because the currency is worth fewer U.S. dollars. Conversely, when the U.S.","page_number":88,"box":{"x":116,"y":149,"width":765,"height":12}},{"id":"d775e335-3d46-4386-b334-91c24fb5d9a4","block_type":"box","text":"dollar decreases in value against a foreign currency, a security denominated in that currency gains","page_number":88,"box":{"x":116,"y":165,"width":737,"height":12}},{"id":"5347eb00-4847-4209-a2bf-b4802465ca38","block_type":"box","text":"value because the currency is worth more U.S. dollars. This risk, generally known as “currency risk,”","page_number":88,"box":{"x":116,"y":180,"width":749,"height":12}},{"id":"3f935aef-83d0-48de-af8e-776c4bc456af","block_type":"box","text":"means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will","page_number":88,"box":{"x":117,"y":196,"width":738,"height":12}},{"id":"b386155d-c9ac-4aad-bb00-5e1485a82d9c","block_type":"box","text":"increase those returns. Currency exchange rates can also be affected unpredictably by intervention by","page_number":88,"box":{"x":117,"y":211,"width":764,"height":12}},{"id":"808c38b8-21f6-4b29-a373-f8a5fbfd362c","block_type":"box","text":"U.S. or foreign governments or central banks, or the failure to intervene, or buy currency controls or","page_number":88,"box":{"x":117,"y":227,"width":743,"height":12}},{"id":"d6c74b78-2409-413f-8d6c-dbf77d9c509d","block_type":"box","text":"political developments in the United States or abroad.","page_number":88,"box":{"x":117,"y":242,"width":402,"height":12}},{"id":"ff499d6e-19e9-4b87-b8d6-14c674a52220","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":88,"box":{"x":117,"y":269,"width":487,"height":12}},{"id":"90677fb5-bba3-46cf-99c6-af2dfdd93619","block_type":"box","text":"Many foreign governments","page_number":88,"box":{"x":606,"y":269,"width":208,"height":12}},{"id":"88a122cb-4c7c-4f75-974e-d5a45113145b","block_type":"box","text":"supervise and regulate stock exchanges, brokers and the sale of securities less than does the United","page_number":88,"box":{"x":116,"y":285,"width":756,"height":12}},{"id":"e460bd5e-29ff-49d1-933d-72f940461b69","block_type":"box","text":"States. Some countries may not have laws to protect investors comparable to the U.S. securities laws.","page_number":88,"box":{"x":116,"y":300,"width":765,"height":12}},{"id":"25c728c2-3b8e-4ec8-a413-da3fcce24b57","block_type":"box","text":"For example, some foreign countries may have no laws or rules against insider trading. Insider trading","page_number":88,"box":{"x":117,"y":316,"width":762,"height":12}},{"id":"11d9684b-6371-41a5-a420-f8f48a973025","block_type":"box","text":"occurs when a person buys or sells a company’s securities based on nonpublic information about that","page_number":88,"box":{"x":116,"y":331,"width":760,"height":12}},{"id":"53647e64-fed0-4322-9558-58d0e1f3b4b2","block_type":"box","text":"company. Accounting standards in other countries are not necessarily the same as in the United","page_number":88,"box":{"x":116,"y":347,"width":719,"height":12}},{"id":"4a7330df-a52f-4c0d-b8dc-27ed7ab2786a","block_type":"box","text":"States. If the accounting standards in another country do not require as much detail as U.S. accounting","page_number":88,"box":{"x":116,"y":362,"width":771,"height":12}},{"id":"9efa6e8c-04f3-4ba1-b5be-118ce20d8514","block_type":"box","text":"standards, it may be harder for Fund management to completely and accurately determine a","page_number":88,"box":{"x":116,"y":378,"width":691,"height":12}},{"id":"3cb42b8b-648d-449c-97be-c81fde00948d","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past","page_number":88,"box":{"x":116,"y":393,"width":722,"height":12}},{"id":"2b1aa774-d896-43d6-9fa6-5e705a1d6714","block_type":"box","text":"imposed restrictions, through penalties and otherwise, on foreign investments by U.S. investors such","page_number":88,"box":{"x":117,"y":409,"width":752,"height":12}},{"id":"711bc100-037d-4181-9dd2-1052bf195321","block_type":"box","text":"as the Fund. If such restrictions should be reinstituted, it might become necessary for the Fund to","page_number":88,"box":{"x":116,"y":424,"width":727,"height":12}},{"id":"1ae9e861-8964-4f40-832b-99d6fae4870a","block_type":"box","text":"invest all or substantially all of its assets in U.S. securities. Also, brokerage commissions and other","page_number":88,"box":{"x":117,"y":440,"width":737,"height":12}},{"id":"feeda4e4-49c4-4b22-a7fd-8fecd937403d","block_type":"box","text":"costs of buying or selling securities often are higher in foreign countries than they are in the United","page_number":88,"box":{"x":116,"y":455,"width":736,"height":12}},{"id":"1658a610-faf9-4c69-b961-ee810b75c476","block_type":"box","text":"States. This reduces the amount the Fund can earn on its investments.","page_number":88,"box":{"x":116,"y":471,"width":532,"height":9}},{"id":"acb8a43c-222f-4bd4-85d6-95ca6104658f","block_type":"box","text":"Certain Risks of Holding Fund Assets Outside the United States.","page_number":88,"box":{"x":117,"y":498,"width":477,"height":12}},{"id":"a46d40af-d250-469c-a254-aecd4ee0a861","block_type":"box","text":"A Fund generally holds its foreign","page_number":88,"box":{"x":596,"y":498,"width":259,"height":12}},{"id":"6d0785e7-e606-49c8-a26a-9ccc435ac823","block_type":"box","text":"securities and cash in foreign banks and securities depositories. Some foreign banks and securities","page_number":88,"box":{"x":116,"y":513,"width":743,"height":12}},{"id":"a8f6e336-2248-438b-8915-380bf0afdc67","block_type":"box","text":"depositories may be recently organized or new to the foreign custody business. In addition, there may","page_number":88,"box":{"x":116,"y":529,"width":760,"height":12}},{"id":"944f94a0-30ec-4e91-ab82-965a37b0540e","block_type":"box","text":"be limited or no regulatory oversight over their operations. Also, the laws of certain countries may put","page_number":88,"box":{"x":117,"y":544,"width":754,"height":12}},{"id":"10969580-d5bd-4cc1-ae0a-9faf30ffe337","block_type":"box","text":"limits on a Fund’s ability to recover its assets if a foreign bank or depository or issuer of a security or","page_number":88,"box":{"x":117,"y":560,"width":747,"height":12}},{"id":"aaa0507d-e9d8-4896-b784-8ffc988eee45","block_type":"box","text":"any of their agents goes bankrupt. In addition, it is often more expensive for a Fund to buy, sell and","page_number":88,"box":{"x":116,"y":575,"width":741,"height":12}},{"id":"6cf09b45-9212-4fc0-9191-ea9e0e2d6a6f","block_type":"box","text":"hold securities in certain foreign markets than in the United States. The increased expense of investing","page_number":88,"box":{"x":117,"y":591,"width":768,"height":12}},{"id":"05ec8add-288f-4956-9a97-870830f1999b","block_type":"box","text":"in foreign markets reduces the amount a Fund can earn on its investments and typically results in a","page_number":88,"box":{"x":117,"y":606,"width":741,"height":12}},{"id":"a1a5f9e9-0863-4d2c-bb1c-8a5841e7f2ab","block_type":"box","text":"higher operating expense ratio for the Fund as compared to investment companies that invest only in","page_number":88,"box":{"x":117,"y":622,"width":754,"height":12}},{"id":"115e91cb-820e-44c2-9b23-48ac98d67e83","block_type":"box","text":"the United States.","page_number":88,"box":{"x":116,"y":637,"width":138,"height":10}},{"id":"b712eda7-e0cf-427e-903e-a99939db110f","block_type":"box","text":"Publicly Available Information.","page_number":88,"box":{"x":116,"y":665,"width":222,"height":12}},{"id":"ed62298e-e3f1-4064-856f-a87950b7670b","block_type":"box","text":"In general, less information is publicly available with respect to foreign","page_number":88,"box":{"x":346,"y":665,"width":518,"height":12}},{"id":"1b6c8314-053a-4dd7-8e31-338e26f6a99e","block_type":"box","text":"issuers than is available with respect to U.S. companies. Most foreign companies are also not subject","page_number":88,"box":{"x":117,"y":680,"width":753,"height":12}},{"id":"c783347d-56a5-470d-8eeb-b5bdbb6f326f","block_type":"box","text":"to the uniform accounting and financial reporting requirements applicable to issuers in the United","page_number":88,"box":{"x":116,"y":696,"width":717,"height":12}},{"id":"2f991abb-c10a-4efd-9f48-204b76bb8a7f","block_type":"box","text":"States. While the volume of transactions effected on foreign stock exchanges has increased in recent","page_number":88,"box":{"x":116,"y":711,"width":753,"height":12}},{"id":"5535012a-2898-4f70-b5e2-399c51ff6d98","block_type":"box","text":"years, it remains appreciably below that of the New York Stock Exchange. Accordingly, a Fund’s","page_number":88,"box":{"x":116,"y":727,"width":716,"height":12}},{"id":"c1e08949-425f-4699-87e4-846384d02a22","block_type":"box","text":"foreign investments may be less liquid than, and their prices may be more volatile than, comparable","page_number":88,"box":{"x":116,"y":742,"width":740,"height":12}},{"id":"c9fb9417-699b-41c1-ae9d-422898989a3b","block_type":"box","text":"investments in securities in U.S. companies. In addition, there is generally less government supervision","page_number":88,"box":{"x":117,"y":758,"width":765,"height":12}},{"id":"80b9f458-ed16-4ef8-912b-741be7009c30","block_type":"box","text":"and regulation of securities exchanges, brokers and issuers in foreign countries than in the United","page_number":88,"box":{"x":116,"y":773,"width":726,"height":12}},{"id":"e8b58011-06ed-4495-9da9-7fe22fc62add","block_type":"box","text":"States.","page_number":88,"box":{"x":116,"y":789,"width":51,"height":9}},{"id":"8a0ad374-5df3-4c88-93e3-5cd2a0e683cb","block_type":"box","text":"Settlement Risk.","page_number":88,"box":{"x":117,"y":816,"width":120,"height":9}},{"id":"580e4909-d228-4512-a2cd-e67232ed260f","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly","page_number":88,"box":{"x":244,"y":816,"width":606,"height":12}},{"id":"fce8b6e6-a9a2-4604-af2a-7aa9a78750e9","block_type":"box","text":"from those in the United States. Supervisory authorities may also be unable to apply standards which","page_number":88,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"b8664797-5796-42a7-9684-e03050412c8f","block_type":"box","text":"are comparable with those in the United States. Foreign settlement procedures and trade regulations","page_number":88,"box":{"x":116,"y":847,"width":754,"height":12}},{"id":"405f7234-ad68-455b-8fe8-169aa0e89ba0","block_type":"box","text":"also may involve certain risks (such as delays in payment for or delivery of securities) not typically","page_number":88,"box":{"x":116,"y":862,"width":731,"height":12}},{"id":"841c4f3c-d801-4027-9324-a28c6773c95f","block_type":"box","text":"generated by the settlement of U.S. investments.","page_number":88,"box":{"x":116,"y":878,"width":369,"height":12}},{"id":"7d340d46-905d-4d8d-b8df-2d6b1e97bf37","block_type":"box","text":"II-38","page_number":88,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f8db7825-5e92-4908-8977-18734ccd8dc9","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":88,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"750bcc30-7f41-4a69-b3c1-ad45786b4159","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable,","page_number":89,"box":{"x":117,"y":87,"width":710,"height":12}},{"id":"1e0b0ca3-825b-4ee9-90a8-94a24b1868b6","block_type":"box","text":"increasing the risk of delayed settlements or losses of security certificates in markets that still rely on","page_number":89,"box":{"x":117,"y":102,"width":750,"height":13}},{"id":"237cef46-8349-46b7-bf6a-99d81a7db063","block_type":"box","text":"physical settlement. Settlements in certain foreign countries at times have not kept pace with the","page_number":89,"box":{"x":117,"y":118,"width":720,"height":12}},{"id":"ffd27b14-dda3-4c64-9b76-7dd1145ab2f8","block_type":"box","text":"number of securities transactions; these problems may make it difficult for a Fund to carry out","page_number":89,"box":{"x":117,"y":134,"width":698,"height":12}},{"id":"891f5be5-cc46-4ee5-9b98-960d0e41cf20","block_type":"box","text":"transactions. If a Fund cannot settle or is delayed in settling a purchase of securities, it may miss","page_number":89,"box":{"x":116,"y":149,"width":723,"height":12}},{"id":"2f429386-c309-42d6-b1f5-a0c921129ec8","block_type":"box","text":"attractive investment opportunities and certain of its assets may be uninvested with no return earned","page_number":89,"box":{"x":116,"y":165,"width":751,"height":12}},{"id":"0a436bd7-b4d4-49f0-aa40-08e4de8a57d5","block_type":"box","text":"thereon for some period. If a Fund cannot settle or is delayed in settling a sale of securities, it may lose","page_number":89,"box":{"x":116,"y":180,"width":769,"height":12}},{"id":"79773233-f485-4d82-b7f6-081582b5fa1d","block_type":"box","text":"money if the value of the security then declines or, if it has contracted to sell the security to another","page_number":89,"box":{"x":117,"y":196,"width":739,"height":12}},{"id":"52a2a879-c51d-4d55-a9e0-257ae337d8ca","block_type":"box","text":"party, the Fund could be liable to that party for any losses incurred.","page_number":89,"box":{"x":117,"y":211,"width":501,"height":12}},{"id":"bd0500c2-63b5-4a06-a18c-ae7476208cd2","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing","page_number":89,"box":{"x":117,"y":242,"width":720,"height":12}},{"id":"220cebc5-2745-4efe-8cdf-1ee12c86db4d","block_type":"box","text":"claims may arise in respect of securities held by or to be transferred to a Fund. Compensation","page_number":89,"box":{"x":116,"y":258,"width":703,"height":12}},{"id":"21bf81fa-7e36-4738-aab8-4de07743cb98","block_type":"box","text":"schemes may not exist or may otherwise be limited or inadequate to meet the Fund’s claims in case of","page_number":89,"box":{"x":116,"y":273,"width":766,"height":12}},{"id":"f0e70bb6-0a22-4466-b994-0a5df814905b","block_type":"box","text":"such event.","page_number":89,"box":{"x":116,"y":289,"width":90,"height":9}},{"id":"500a709f-d41c-4728-a203-39c49c7b4ea3","block_type":"box","text":"Sovereign Debt.","page_number":89,"box":{"x":117,"y":320,"width":118,"height":12}},{"id":"b80c1efc-fe28-4d40-93d1-caf3a9925c9f","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental","page_number":89,"box":{"x":236,"y":320,"width":616,"height":12}},{"id":"50f12778-5ac6-44d4-88c1-a37b843b9456","block_type":"box","text":"entity that controls the repayment of sovereign debt may not be able or willing to repay the principal","page_number":89,"box":{"x":116,"y":335,"width":743,"height":12}},{"id":"b2215d93-5e40-4e4c-b65f-24716936d1f7","block_type":"box","text":"and/or interest when due in accordance with the terms of such debt. A governmental entity’s","page_number":89,"box":{"x":116,"y":351,"width":689,"height":12}},{"id":"99e4ad5a-657c-419c-b17c-3cac9368693b","block_type":"box","text":"willingness or ability to repay principal and interest due in a timely manner may be affected by, among","page_number":89,"box":{"x":116,"y":366,"width":761,"height":12}},{"id":"d1b1700c-0171-481c-835c-a6f479ffe893","block_type":"box","text":"other factors, its cash flow situation, the extent of its foreign reserves, the availability of sufficient","page_number":89,"box":{"x":116,"y":382,"width":721,"height":12}},{"id":"3d010f10-b377-45a4-b204-95a38905a9e4","block_type":"box","text":"foreign exchange on the date a payment is due, the relative size of the debt service burden to the","page_number":89,"box":{"x":116,"y":397,"width":728,"height":12}},{"id":"8724c40f-c8fb-4db8-a74b-f7c03adc7944","block_type":"box","text":"economy as a whole, the governmental entity’s policy towards the International Monetary Fund and the","page_number":89,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"2c64790c-5ad0-4c81-aaad-3bf77219b644","block_type":"box","text":"political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":89,"box":{"x":117,"y":428,"width":764,"height":12}},{"id":"b7481961-8707-4a78-82b4-79ba06ac7ced","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others","page_number":89,"box":{"x":116,"y":444,"width":738,"height":12}},{"id":"64119c56-944c-4d8a-be9a-88372051b11e","block_type":"box","text":"abroad to reduce principal and interest arrearages on their debt. The commitment on the part of these","page_number":89,"box":{"x":116,"y":459,"width":761,"height":12}},{"id":"3fb42d37-0dfa-4662-bf53-ec91944fab5b","block_type":"box","text":"governments, agencies and others to make such disbursements may be conditioned on the","page_number":89,"box":{"x":116,"y":475,"width":684,"height":12}},{"id":"fc9b7e5a-3377-4a4d-9ece-1029c7179c97","block_type":"box","text":"implementation of economic reforms and/or economic performance and the timely service of such","page_number":89,"box":{"x":117,"y":490,"width":730,"height":12}},{"id":"36f13859-c8d9-4b11-996e-1b7c52ddd454","block_type":"box","text":"debtor’s obligations. Failure to implement such reforms, achieve such levels of economic performance","page_number":89,"box":{"x":116,"y":506,"width":763,"height":12}},{"id":"7fc76a95-6611-46df-b8b3-474b72caade1","block_type":"box","text":"or repay principal or interest when due may result in the cancellation of such third parties’","page_number":89,"box":{"x":116,"y":521,"width":668,"height":12}},{"id":"7014705b-b918-4aaa-a404-54cb6467a049","block_type":"box","text":"commitments to lend funds to the governmental entity, which may further impair such debtor’s ability or","page_number":89,"box":{"x":116,"y":537,"width":769,"height":12}},{"id":"f06c8cd9-4cbd-440f-9d6c-86618599e132","block_type":"box","text":"willingness to timely service its debts. Consequently, governmental entities may default on their","page_number":89,"box":{"x":116,"y":552,"width":713,"height":12}},{"id":"a09ce4e2-8a40-4847-a021-1af5bb1b2cfe","block_type":"box","text":"sovereign debt.","page_number":89,"box":{"x":116,"y":568,"width":119,"height":12}},{"id":"b9831d91-f5cc-4622-9b16-a763a09c09e7","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to","page_number":89,"box":{"x":117,"y":599,"width":730,"height":12}},{"id":"bcadf1de-f5cb-40df-aec8-60db356efbdc","block_type":"box","text":"extend further loans to governmental entities. In the event of a default by a governmental entity, there","page_number":89,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"570579f4-eff6-44ab-9e01-d32ea3f7b5e8","block_type":"box","text":"may be few or no effective legal remedies for collecting on such debt.","page_number":89,"box":{"x":117,"y":630,"width":519,"height":12}},{"id":"0b540f4a-1044-48a6-8b9a-e09b603a353f","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":89,"box":{"x":118,"y":661,"width":230,"height":12}},{"id":"c93f99ca-6a97-4a03-982a-a123db90717c","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on","page_number":89,"box":{"x":349,"y":661,"width":469,"height":12}},{"id":"2ebaea9c-e131-4294-bf58-5be8d2b6787e","block_type":"box","text":"dividend and interest income (if any) received from issuers in certain countries and capital gains on the","page_number":89,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"8d60fab2-fa0e-47ec-8158-c3ed064887f3","block_type":"box","text":"disposition of stocks or securities where such withholding tax reclaim is possible. Whether or when a","page_number":89,"box":{"x":116,"y":692,"width":745,"height":12}},{"id":"ab848779-fa19-468f-8da7-b1b75e8a2a1c","block_type":"box","text":"Fund will receive a withholding tax refund is within the control of the tax authorities in such countries.","page_number":89,"box":{"x":117,"y":707,"width":745,"height":12}},{"id":"3988af47-03de-4183-8dce-77b0d6547f14","block_type":"box","text":"Where a Fund expects to recover withholding taxes, the net asset value of the Fund generally includes","page_number":89,"box":{"x":116,"y":723,"width":762,"height":12}},{"id":"5864aa84-d740-4382-8079-716a3eb29d3c","block_type":"box","text":"accruals for such tax refunds. Each Fund regularly evaluates the probability of recovery. If the","page_number":89,"box":{"x":116,"y":738,"width":696,"height":12}},{"id":"137c8475-7658-4d92-8ee9-a28a483d78a8","block_type":"box","text":"likelihood of recovery materially decreases, due to, for example, a change in tax regulation or approach","page_number":89,"box":{"x":117,"y":754,"width":765,"height":12}},{"id":"0ed71e80-04fd-4ca5-b04b-5bfb0f8b347d","block_type":"box","text":"in the foreign country, accruals in a Fund’s net asset value for such refunds may be written down","page_number":89,"box":{"x":117,"y":769,"width":716,"height":12}},{"id":"109d38a7-9f72-435a-9fdc-7ec7d575ef49","block_type":"box","text":"partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the","page_number":89,"box":{"x":117,"y":785,"width":755,"height":12}},{"id":"ac586f27-adfd-4bd7-a5a2-38ba0676ec75","block_type":"box","text":"time an accrual is written down will bear the impact of the resulting reduction in net asset value","page_number":89,"box":{"x":116,"y":800,"width":703,"height":12}},{"id":"0bcc4e2d-1f3d-4a72-8f50-785f2d557b66","block_type":"box","text":"regardless of whether they were shareholders during the accrual period. Conversely, if a Fund receives","page_number":89,"box":{"x":117,"y":816,"width":765,"height":12}},{"id":"4389afb4-847e-47cb-97a8-7c2ad9afb9d1","block_type":"box","text":"a tax refund that has not been previously accrued, shareholders in the Fund at the time of the","page_number":89,"box":{"x":116,"y":831,"width":699,"height":12}},{"id":"f0a3d582-d04d-4897-847f-407ec508aab1","block_type":"box","text":"successful recovery will benefit from the resulting increase in the Fund’s net asset value. Shareholders","page_number":89,"box":{"x":116,"y":847,"width":767,"height":12}},{"id":"c4200ef5-6276-4fbe-a8ca-ef837bb53950","block_type":"box","text":"who sold their shares prior to such time will not benefit from such increase in the Fund’s net asset","page_number":89,"box":{"x":116,"y":862,"width":730,"height":12}},{"id":"77e3aeb3-ea60-4dfc-9412-b61067b05f6f","block_type":"box","text":"value.","page_number":89,"box":{"x":116,"y":878,"width":49,"height":9}},{"id":"e9ca47e1-a2fe-412f-9e8e-b623736ad268","block_type":"box","text":"II-39","page_number":89,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"5fb1bb88-3cdc-4324-90c7-81a2e99e9545","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":89,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"3539a07e-c541-4781-b254-06bf0fec6333","block_type":"box","text":"U.S. Economic Trading Partners Risk.","page_number":90,"box":{"x":117,"y":87,"width":287,"height":12}},{"id":"c50e3ad0-a56f-4f05-abb5-2c6f785f481b","block_type":"box","text":"The United States is a significant, and in some cases the most","page_number":90,"box":{"x":404,"y":87,"width":469,"height":12}},{"id":"f339c805-c6a7-40da-86a9-8a4b63adb844","block_type":"box","text":"significant, trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a","page_number":90,"box":{"x":116,"y":102,"width":762,"height":13}},{"id":"5995619a-6a71-472a-8d81-66a3fe5b8432","block_type":"box","text":"result, economic conditions of such countries may be particularly affected by changes in the U.S.","page_number":90,"box":{"x":117,"y":118,"width":723,"height":12}},{"id":"10da5c21-5f59-4195-8158-0817c9c0eb74","block_type":"box","text":"economy. A decrease in U.S. imports or exports, new trade and financial regulations or tariffs, changes","page_number":90,"box":{"x":116,"y":134,"width":770,"height":12}},{"id":"25ed3a8b-8b6d-4ce7-9082-9e84ab4385fb","block_type":"box","text":"in the U.S. dollar exchange rate or an economic slowdown in the United States may have a material","page_number":90,"box":{"x":117,"y":149,"width":745,"height":12}},{"id":"f8ee57b0-5372-4e6c-ba88-60106efefadf","block_type":"box","text":"adverse effect on a country’s economic conditions and, as a result, securities to which the Fund has","page_number":90,"box":{"x":116,"y":165,"width":746,"height":12}},{"id":"bed68e00-4dc4-4f0a-b6bb-9bb9ab7def0b","block_type":"box","text":"exposure. Circumstances could arise that could prevent the timely payment of interest or principal on","page_number":90,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"1a2ad57c-074b-411c-9a8d-70be18fa03b5","block_type":"box","text":"U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result","page_number":90,"box":{"x":117,"y":196,"width":760,"height":12}},{"id":"2c291adf-1c71-46bf-90d2-aebfad0d4239","block_type":"box","text":"in substantial negative consequences for the U.S. economy and the global financial system.","page_number":90,"box":{"x":117,"y":211,"width":685,"height":12}},{"id":"6f5e0ae2-a292-493d-9186-1cd2243ae3a9","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including","page_number":90,"box":{"x":116,"y":238,"width":745,"height":12}},{"id":"28de6daa-b576-4de4-8256-f7038fad546c","block_type":"box","text":"traditional allies, such as certain European countries, and historical adversaries, such as North Korea,","page_number":90,"box":{"x":116,"y":254,"width":761,"height":12}},{"id":"ee9591c4-f815-40c4-b5aa-8125e3085afc","block_type":"box","text":"Iran, China and Russia. If these relations were to worsen, it could adversely affect U.S. issuers as well","page_number":90,"box":{"x":117,"y":269,"width":763,"height":12}},{"id":"67b229b5-ff39-4e7d-9493-7a826ff70f76","block_type":"box","text":"as non-U.S. issuers that rely on the United States for trade. The United States has also experienced","page_number":90,"box":{"x":116,"y":285,"width":748,"height":12}},{"id":"591f9c89-16e8-4bc5-be5d-3de6ad92783b","block_type":"box","text":"increased internal unrest and discord. If these trends were to continue, it may have an adverse impact","page_number":90,"box":{"x":117,"y":300,"width":761,"height":12}},{"id":"7bbd7512-9653-4b37-ab14-38df6898f493","block_type":"box","text":"on the U.S. economy and many of the issuers in which a Fund may invest.","page_number":90,"box":{"x":116,"y":316,"width":557,"height":12}},{"id":"25892589-4824-418d-aa5f-7ab8a23ca6eb","block_type":"box","text":"Funding Agreements.","page_number":90,"box":{"x":116,"y":343,"width":171,"height":12}},{"id":"1ef541de-38fa-4c28-98b2-7a3c782d8bdf","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar","page_number":90,"box":{"x":289,"y":343,"width":561,"height":12}},{"id":"b768b712-d16c-40b9-b21e-70812fb8bb68","block_type":"box","text":"funding agreements. In connection with these investments, a Fund makes cash contributions to a","page_number":90,"box":{"x":116,"y":358,"width":727,"height":12}},{"id":"e849dc3d-46f7-4651-a021-b237cff3be80","block_type":"box","text":"deposit fund of an insurance company’s general account. The insurance company then credits to the","page_number":90,"box":{"x":116,"y":374,"width":753,"height":12}},{"id":"76519559-992b-45fe-8bcc-74c9de7c293e","block_type":"box","text":"Fund on a monthly basis guaranteed interest, which is based on an index. The funding agreements","page_number":90,"box":{"x":117,"y":389,"width":740,"height":12}},{"id":"5f45b227-03a2-4e0f-bc97-a2d49d4adf8b","block_type":"box","text":"provide that this guaranteed interest will not be less than a certain minimum rate. The purchase price","page_number":90,"box":{"x":117,"y":405,"width":753,"height":12}},{"id":"9319c893-a699-4c63-989f-45268aa80fc0","block_type":"box","text":"paid for a funding agreement becomes part of the general assets of the insurance company, and the","page_number":90,"box":{"x":117,"y":420,"width":749,"height":12}},{"id":"0e3c7487-e084-4b15-887a-5c3aec52d761","block_type":"box","text":"contract is paid from the general assets of the insurance company. Generally, funding agreements are","page_number":90,"box":{"x":116,"y":436,"width":764,"height":12}},{"id":"2f3bd38d-f194-4b5d-a885-5c22937eb9d9","block_type":"box","text":"not assignable or transferable without the permission of the issuing insurance companies, and an","page_number":90,"box":{"x":117,"y":451,"width":726,"height":12}},{"id":"0bccc29e-118b-499f-81bd-a26da903f987","block_type":"box","text":"active secondary market in some funding agreements does not currently exist.","page_number":90,"box":{"x":116,"y":467,"width":586,"height":12}},{"id":"a7c50b2f-4635-4994-afb1-3f3873aed083","block_type":"box","text":"Guarantees","page_number":90,"box":{"x":117,"y":494,"width":91,"height":10}},{"id":"50481184-aaaf-48e5-a470-b1c98e004436","block_type":"box","text":".","page_number":90,"box":{"x":209,"y":502,"width":3,"height":1}},{"id":"83611099-1500-4075-bdf9-b2479ca73c2c","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate","page_number":90,"box":{"x":213,"y":494,"width":660,"height":12}},{"id":"98fe62ae-0c7b-495f-a1f9-71da54d0149e","block_type":"box","text":"from the issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will","page_number":90,"box":{"x":116,"y":509,"width":771,"height":13}},{"id":"6602c2e4-f189-47ea-9a17-7f56845f01ac","block_type":"box","text":"fulfill an issuer’s payment obligations under a security if the issuer is unable to do so.","page_number":90,"box":{"x":116,"y":525,"width":634,"height":12}},{"id":"8dc6c137-c450-48bf-b2b0-e5b2f851bdb7","block_type":"box","text":"Illiquid Investments.","page_number":90,"box":{"x":116,"y":552,"width":166,"height":12}},{"id":"b56c55b3-7ed1-4aa8-97d8-c9057329ffc9","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the","page_number":90,"box":{"x":284,"y":552,"width":557,"height":12}},{"id":"1a366ce0-8bf8-4711-961c-cfd5edb885e1","block_type":"box","text":"acquisition, a Fund would have invested more than 15% of its net assets in illiquid investments. An","page_number":90,"box":{"x":116,"y":568,"width":737,"height":12}},{"id":"14c85326-f349-4548-9eab-1567f0fe6547","block_type":"box","text":"illiquid investment is any investment that a Fund reasonably expects cannot be sold or disposed of in","page_number":90,"box":{"x":117,"y":583,"width":753,"height":12}},{"id":"de6a9486-b9e1-4334-8ad2-ca6a60955d2b","block_type":"box","text":"current market conditions in seven calendar days or less without the sale or disposition significantly","page_number":90,"box":{"x":116,"y":599,"width":742,"height":12}},{"id":"7c8066b8-6761-4bd2-bfd0-768a5053b696","block_type":"box","text":"changing the market value of the investment. Liquid investments may become illiquid after purchase by","page_number":90,"box":{"x":116,"y":614,"width":771,"height":12}},{"id":"242c6b01-a79e-40a0-bd03-54c60793d6a9","block_type":"box","text":"a Fund, particularly during periods of market turmoil. There can be no assurance that a security or","page_number":90,"box":{"x":116,"y":630,"width":733,"height":12}},{"id":"2c4dc502-09df-4858-bfa6-3da29e2da3d9","block_type":"box","text":"instrument that is deemed to be liquid when purchased will continue to be liquid for as long as it is held","page_number":90,"box":{"x":117,"y":645,"width":766,"height":12}},{"id":"70a61ff3-e387-4580-b211-ae4b29d54638","block_type":"box","text":"by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":90,"box":{"x":117,"y":661,"width":725,"height":12}},{"id":"f324de24-d0d4-4e8a-8518-1aac55b7cf10","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce","page_number":90,"box":{"x":117,"y":676,"width":742,"height":12}},{"id":"a5270e20-8ae8-4b84-a3a0-dc5192219cbe","block_type":"box","text":"the returns of the Fund because it may be difficult to sell the illiquid investments at an advantageous","page_number":90,"box":{"x":116,"y":692,"width":743,"height":12}},{"id":"ee862a66-2343-4ed3-abee-a010a0be413b","block_type":"box","text":"time or price. In addition, if a Fund is limited in its ability to dispose of illiquid investments during","page_number":90,"box":{"x":116,"y":707,"width":708,"height":12}},{"id":"b66de790-15dc-4bf6-b6b6-75b645ccd5c6","block_type":"box","text":"periods when shareholders are redeeming or selling their shares or the Fund’s net assets otherwise","page_number":90,"box":{"x":117,"y":723,"width":739,"height":12}},{"id":"062e8e95-559a-442b-9432-952750e2d800","block_type":"box","text":"shrink, the Fund will need to dispose of liquid securities to meet redemption requests and illiquid","page_number":90,"box":{"x":116,"y":738,"width":712,"height":12}},{"id":"119947c2-8206-42ee-9287-76709d26541c","block_type":"box","text":"securities will become a larger portion of the Fund’s holdings. If illiquid investments exceed 15% of a","page_number":90,"box":{"x":116,"y":754,"width":745,"height":12}},{"id":"e336d4e5-7853-436b-ac6c-57f54aba5a9e","block_type":"box","text":"Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as defined below)","page_number":90,"box":{"x":117,"y":769,"width":749,"height":12}},{"id":"e22b1ac9-dc7e-45f8-892b-7f87d42fdd02","block_type":"box","text":"will require that certain remedial actions be taken.","page_number":90,"box":{"x":116,"y":785,"width":368,"height":12}},{"id":"f5006d17-7673-463e-9368-6949770368c4","block_type":"box","text":"Illiquid investments may trade at a discount from","page_number":90,"box":{"x":491,"y":785,"width":358,"height":12}},{"id":"4e6ade03-78fa-4a57-a3b0-8d2b50b496fe","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the","page_number":90,"box":{"x":116,"y":800,"width":742,"height":12}},{"id":"a348b2c4-f042-40ca-acfb-c9c42190846d","block_type":"box","text":"ability of the Fund to dispose of its investments in a timely fashion and for a fair price as well as its","page_number":90,"box":{"x":116,"y":816,"width":728,"height":12}},{"id":"75d33d3d-90bc-4c49-9cf4-c1bf261d1eb4","block_type":"box","text":"ability to take advantage of market opportunities. The risks associated with illiquidity will be particularly","page_number":90,"box":{"x":116,"y":831,"width":765,"height":12}},{"id":"a7c1062d-9e59-4baa-bb6d-b0a134b1a544","block_type":"box","text":"acute where a Fund’s operations require cash, such as when the Fund redeems shares or pays","page_number":90,"box":{"x":116,"y":847,"width":715,"height":12}},{"id":"b56b7c63-f6f1-45d2-819e-1a53fd391e92","block_type":"box","text":"dividends, and could result in the Fund borrowing to meet short-term cash requirements or incurring","page_number":90,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"998fa95b-f956-4ead-9278-a4063cf73fa9","block_type":"box","text":"capital losses on the sale of illiquid investments.","page_number":90,"box":{"x":116,"y":878,"width":362,"height":12}},{"id":"9dba1aa0-25d7-4fa4-9e4a-8386b751d9dc","block_type":"box","text":"II-40","page_number":90,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2d26375b-6f76-46c2-bc61-fdd55378baad","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":90,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"2a3a3932-580e-4939-826a-65115b2b0f85","block_type":"box","text":"Index Funds","page_number":91,"box":{"x":116,"y":87,"width":99,"height":10}},{"id":"86117931-e9eb-4a50-afef-71e40eca0603","block_type":"box","text":".","page_number":91,"box":{"x":216,"y":95,"width":2,"height":1}},{"id":"39bbd4b4-23db-4704-8c1e-76e6b26932c8","block_type":"box","text":"Cash Flows; Expenses.","page_number":91,"box":{"x":117,"y":111,"width":173,"height":12}},{"id":"0690d559-ba52-4b8e-a919-8444116c0410","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some","page_number":91,"box":{"x":291,"y":111,"width":573,"height":12}},{"id":"a614f466-84db-4244-b57a-edb94bb082c0","block_type":"box","text":"extent on the Manager’s ability to manage cash flow (primarily from purchases and redemptions and","page_number":91,"box":{"x":116,"y":127,"width":749,"height":12}},{"id":"93b4155f-11a8-41ec-8a5e-264a6a24b1de","block_type":"box","text":"distributions from the Fund’s investments). The Manager will make investment changes to a Fund’s","page_number":91,"box":{"x":116,"y":142,"width":742,"height":12}},{"id":"efeb7ea1-b0dd-4979-a7f6-a1cd2918a611","block_type":"box","text":"portfolio to accommodate cash flow while continuing to seek to replicate the total return of the Fund’s","page_number":91,"box":{"x":117,"y":158,"width":753,"height":12}},{"id":"7287c8d7-d41c-4451-9a33-458cf4090de5","block_type":"box","text":"target index. Investors should also be aware that the investment performance of each index is a","page_number":91,"box":{"x":116,"y":173,"width":716,"height":12}},{"id":"d2f2f37e-210d-47bc-891f-b190b5b40ad4","block_type":"box","text":"hypothetical number which does not take into account brokerage commissions and other transaction","page_number":91,"box":{"x":117,"y":189,"width":749,"height":12}},{"id":"a93f852f-8559-4d75-a4cf-27d2956fe8d4","block_type":"box","text":"costs, custody and other costs of investing, and any incremental operating costs (","page_number":91,"box":{"x":116,"y":204,"width":606,"height":12}},{"id":"26fbafaf-f621-490e-8486-608f0579f94a","block_type":"box","text":"e.g.","page_number":91,"box":{"x":723,"y":207,"width":26,"height":9}},{"id":"52353601-47d8-4210-9479-0832b6656585","block_type":"box","text":", transfer agency","page_number":91,"box":{"x":752,"y":204,"width":129,"height":12}},{"id":"2b41f737-776a-47f6-b97b-761cdec17adf","block_type":"box","text":"and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to replicate the","page_number":91,"box":{"x":116,"y":220,"width":757,"height":12}},{"id":"dfa69407-ee32-4868-9524-57b9a7fc300f","block_type":"box","text":"total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":91,"box":{"x":116,"y":235,"width":706,"height":12}},{"id":"bddea69f-27ca-4e42-aefc-dfca0bfdb4f1","block_type":"box","text":"particular security as an investment.","page_number":91,"box":{"x":117,"y":251,"width":272,"height":12}},{"id":"5604aacf-d235-4e8e-8ed9-6f030b665a33","block_type":"box","text":"Tracking Error Risk","page_number":91,"box":{"x":118,"y":284,"width":142,"height":12}},{"id":"438a0d65-eb20-4dbf-bc09-22d6db33d9fc","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s","page_number":91,"box":{"x":260,"y":284,"width":586,"height":12}},{"id":"e8e0f6a4-c303-4939-9853-ca4942e1f4be","block_type":"box","text":"performance from that of the Underlying Index. Tracking error may occur because of differences","page_number":91,"box":{"x":117,"y":300,"width":711,"height":12}},{"id":"c35945db-5c74-4b29-923c-429e6c64b914","block_type":"box","text":"between the securities and other instruments held in the Fund’s portfolio and those included in the","page_number":91,"box":{"x":117,"y":315,"width":725,"height":12}},{"id":"ba77e3e6-2535-473a-91f9-8393f035a02f","block_type":"box","text":"Underlying Index, pricing differences (including, as applicable, differences between a security’s price at","page_number":91,"box":{"x":117,"y":331,"width":762,"height":12}},{"id":"b358587d-97a0-4d24-a6e8-094bdf040a09","block_type":"box","text":"the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s net","page_number":91,"box":{"x":116,"y":346,"width":757,"height":12}},{"id":"fcef3804-eb03-402d-adc8-f39433b8423a","block_type":"box","text":"asset value), differences in transaction costs incurred by the Fund, the Fund’s holding of uninvested","page_number":91,"box":{"x":116,"y":362,"width":739,"height":12}},{"id":"729562b0-419e-4db1-9c8f-521d3f91c672","block_type":"box","text":"cash, differences in timing of the accrual of or the valuation of dividends or other distributions, interest,","page_number":91,"box":{"x":116,"y":377,"width":756,"height":12}},{"id":"a160268e-faad-41fe-9292-4ad8974257df","block_type":"box","text":"the requirements to maintain pass-through tax treatment, portfolio transactions carried out to minimize","page_number":91,"box":{"x":116,"y":393,"width":757,"height":12}},{"id":"c8888864-ba32-42ee-aa94-fd03182d317c","block_type":"box","text":"the distribution of capital gains to shareholders, changes to the Underlying Index or the costs to the","page_number":91,"box":{"x":116,"y":408,"width":733,"height":12}},{"id":"ff8b9f5d-1e0b-4aa3-a0e8-ec69f0d6fcc8","block_type":"box","text":"Fund of complying with various new or existing regulatory requirements. These risks may be heightened","page_number":91,"box":{"x":117,"y":424,"width":770,"height":12}},{"id":"41373993-473f-4b5a-b5f0-12b9c2ab5b6b","block_type":"box","text":"during times of increased market volatility or other unusual market conditions. In addition, tracking error","page_number":91,"box":{"x":116,"y":439,"width":765,"height":12}},{"id":"3a9fa3e3-b7a9-4bd4-9d80-f1a7ca7094dc","block_type":"box","text":"may result because the Fund incurs fees and expenses, while the Underlying Index does not.","page_number":91,"box":{"x":117,"y":455,"width":690,"height":12}},{"id":"fda1bdbd-35c8-4bae-bf2e-36e8d5169932","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may","page_number":91,"box":{"x":116,"y":488,"width":758,"height":12}},{"id":"7f7fb03b-3377-4e9e-b189-a95b08d2aae2","block_type":"box","text":"conduct an analysis on such issuer’s securities to identify and screen for outlier high risk behavior","page_number":91,"box":{"x":116,"y":503,"width":729,"height":12}},{"id":"caf1b4dd-11e9-4c06-9f53-feef203468eb","block_type":"box","text":"(such as rapid or unusual price growth that does not appear to be supported by publicly available","page_number":91,"box":{"x":117,"y":519,"width":724,"height":12}},{"id":"3b71372d-40f4-4f4f-bf7e-72c56f03a793","block_type":"box","text":"information on the business and assets of the issuer, unusual or significant short interest or lending","page_number":91,"box":{"x":117,"y":534,"width":740,"height":12}},{"id":"ca30f63f-397a-4297-b4ff-c21d91d71c8a","block_type":"box","text":"activity, negative sentiment, suspended trading or incorrect free-float calculations, which could be","page_number":91,"box":{"x":116,"y":550,"width":728,"height":12}},{"id":"2d972ce8-31be-4793-8a85-8cc6761990fc","block_type":"box","text":"indicators of possible irregularities, miscalculations or even fraud). 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FTSE has no obligation to take the needs of any particular Fund or its","page_number":93,"box":{"x":116,"y":428,"width":694,"height":12}},{"id":"784a9777-f8a7-42c7-a795-905f0ea8f051","block_type":"box","text":"participants or any other product or person into consideration in determining, composing or calculating","page_number":93,"box":{"x":117,"y":444,"width":762,"height":12}},{"id":"cec45f93-735c-458f-8bbc-f89425f320ba","block_type":"box","text":"the FTSE Index.","page_number":93,"box":{"x":116,"y":459,"width":126,"height":10}},{"id":"7604b753-e4c4-4724-842e-fdceb2c06a86","block_type":"box","text":"Bloomberg Indexes.","page_number":93,"box":{"x":116,"y":490,"width":148,"height":12}},{"id":"f7d9d5d7-1889-4e2f-8ea6-af40c08d437b","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with","page_number":93,"box":{"x":265,"y":490,"width":592,"height":12}},{"id":"c7eef2f1-287f-4bab-9243-6268d347a221","block_type":"box","text":"Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”). Bloomberg is not responsible for","page_number":93,"box":{"x":117,"y":506,"width":754,"height":12}},{"id":"8df3beeb-8637-4dbd-be37-1e03e98343e2","block_type":"box","text":"nor has it reviewed any Fund nor any associated literature or publications, and Bloomberg makes no","page_number":93,"box":{"x":117,"y":521,"width":750,"height":12}},{"id":"43e30185-d47c-4d74-838f-e4fcd08874eb","block_type":"box","text":"representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.","page_number":93,"box":{"x":117,"y":537,"width":740,"height":12}},{"id":"565b44a3-4dc9-4cb6-a4b4-e05cb16c4931","block_type":"box","text":"Bloomberg reserves the right, at any time and without notice, to alter, amend, terminate or in any way","page_number":93,"box":{"x":117,"y":568,"width":757,"height":12}},{"id":"805cfc52-78cc-4d12-8540-62ec05c27b86","block_type":"box","text":"change a Bloomberg Index. 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ICE has no obligation to take the needs of any particular Fund or its participants or","page_number":93,"box":{"x":116,"y":769,"width":761,"height":12}},{"id":"eb7ba610-e285-4cbe-85a3-75f7fe9c90fe","block_type":"box","text":"any other product or person into consideration in determining, composing or calculating an ICE BofA","page_number":93,"box":{"x":116,"y":785,"width":745,"height":12}},{"id":"049de035-b750-4cf2-886a-abc7840155ed","block_type":"box","text":"Index.","page_number":93,"box":{"x":117,"y":800,"width":43,"height":10}},{"id":"7fd847f8-3116-4dee-b88b-4f5ca2b7971c","block_type":"box","text":"Indexed and Inverse Securities.","page_number":93,"box":{"x":116,"y":831,"width":250,"height":10}},{"id":"f9c4cf53-be65-4634-80cf-725d6ef59910","block_type":"box","text":"A Fund may invest in securities that provide a potential return based","page_number":93,"box":{"x":367,"y":831,"width":517,"height":12}},{"id":"c3ecb6cb-d140-4e1d-833f-90d0f44b2aa6","block_type":"box","text":"on a particular index of value or interest rates. 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Inverse floaters are securities the potential of which is inversely related","page_number":94,"box":{"x":117,"y":475,"width":768,"height":12}},{"id":"6f48f0d3-3681-4460-ad42-b422d189d62e","block_type":"box","text":"to changes in interest rates. In general, the return on inverse floaters will decrease when short-term","page_number":94,"box":{"x":116,"y":490,"width":743,"height":12}},{"id":"d3cddc36-ed96-469c-8ddb-0e85db023999","block_type":"box","text":"interest rates increase and increase when short-term rates decrease. Municipal tender option bonds,","page_number":94,"box":{"x":117,"y":506,"width":751,"height":12}},{"id":"7873c0a4-2577-43b3-b6cf-a7fcac8b5f48","block_type":"box","text":"both taxable and tax-exempt, which may include inverse floating rate debt instruments, (including","page_number":94,"box":{"x":117,"y":521,"width":725,"height":12}},{"id":"a55d761d-d043-44bb-aa0d-df0c5c66e842","block_type":"box","text":"residual interests thereon) are excluded from this 10% limitation.","page_number":94,"box":{"x":117,"y":537,"width":483,"height":12}},{"id":"afd7c408-7dd5-447f-a88f-59c4e25c5976","block_type":"box","text":"Inflation Risk.","page_number":94,"box":{"x":116,"y":568,"width":109,"height":9}},{"id":"1bfab9f2-4a0b-407d-83c0-6b22fc958048","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the","page_number":94,"box":{"x":226,"y":568,"width":627,"height":12}},{"id":"a3ca6b7f-597d-46eb-abd1-5498fc0a4a87","block_type":"box","text":"present value of assets or income from investments will be less in the future as inflation decreases the","page_number":94,"box":{"x":117,"y":583,"width":763,"height":12}},{"id":"fcf794ff-c56a-44a6-9a32-d158edbadd88","block_type":"box","text":"value of money. As inflation increases, the present value of a Fund’s assets can decline as can the","page_number":94,"box":{"x":116,"y":599,"width":739,"height":12}},{"id":"f46813f8-ae83-4d31-9586-8e948de5b9ce","block_type":"box","text":"value of a Fund’s distributions. Inflation rates may change frequently and significantly due to a number","page_number":94,"box":{"x":116,"y":614,"width":764,"height":12}},{"id":"fcd2975f-b6e8-4c90-82cd-f168c0a81ea0","block_type":"box","text":"of potential factors, including, among others, unexpected economic shifts or changes in fiscal or","page_number":94,"box":{"x":116,"y":630,"width":716,"height":12}},{"id":"ff092108-7308-4bcf-932e-963627019c8e","block_type":"box","text":"monetary policies.","page_number":94,"box":{"x":117,"y":645,"width":139,"height":12}},{"id":"74cc9263-2782-4d93-a53d-2229b1d76e1c","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":94,"box":{"x":116,"y":676,"width":275,"height":12}},{"id":"b841455a-1960-40a6-bbd5-fbceb2d63b4a","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued","page_number":94,"box":{"x":397,"y":676,"width":451,"height":12}},{"id":"704e7859-4250-49c8-b304-d30ff47c5d25","block_type":"box","text":"stocks trade in the secondary market are affected by the performance of the stock market overall. If","page_number":94,"box":{"x":116,"y":692,"width":739,"height":12}},{"id":"9e05e950-9e45-47a0-bf81-e190a568ddcd","block_type":"box","text":"IPOs are brought to the market, availability may be limited and a Fund may not be able to buy any","page_number":94,"box":{"x":117,"y":707,"width":727,"height":12}},{"id":"b4704342-1b53-40c2-8f42-2ca7cfb29b16","block_type":"box","text":"shares at the offering price, or if it is able to buy shares, it may not be able to buy as many shares at","page_number":94,"box":{"x":116,"y":723,"width":744,"height":12}},{"id":"aa896b4a-b89b-4c13-836e-4de4648327ac","block_type":"box","text":"the offering price as it would like. In addition, the prices of securities involved in IPOs are often subject","page_number":94,"box":{"x":116,"y":738,"width":758,"height":12}},{"id":"acc98907-d039-4914-93ae-992344ca3188","block_type":"box","text":"to greater and more unpredictable price changes than more established stocks. IPOs have the","page_number":94,"box":{"x":116,"y":754,"width":701,"height":12}},{"id":"d9384d71-0ab8-40e7-b0d8-6398497091f6","block_type":"box","text":"potential to produce substantial gains. A Fund may hold shares from an IPO for only a short period of","page_number":94,"box":{"x":117,"y":769,"width":751,"height":12}},{"id":"05945dda-12fb-4da8-b0bd-1b06deca05de","block_type":"box","text":"time given possible price volatility. This may result in increased portfolio turnover and expenses, such","page_number":94,"box":{"x":116,"y":785,"width":752,"height":12}},{"id":"8e4821f0-d8a4-4d34-854c-cdfef8e63595","block_type":"box","text":"as commissions and transaction costs, and potentially result in taxable gains that the Fund will","page_number":94,"box":{"x":116,"y":800,"width":699,"height":12}},{"id":"f56b9011-bd94-4797-a400-d933691bb100","block_type":"box","text":"subsequently distribute to shareholders. There is no assurance that any Fund will have access to","page_number":94,"box":{"x":116,"y":816,"width":720,"height":12}},{"id":"c992f36e-f8f0-4d28-9466-828531d74b50","block_type":"box","text":"profitable IPOs and therefore investors should not rely on any past gains from IPOs as an indication of","page_number":94,"box":{"x":117,"y":831,"width":763,"height":12}},{"id":"023e8565-70d0-457d-8abb-2fd78f1cf877","block_type":"box","text":"future performance. The investment performance of a Fund during periods when it is unable to invest","page_number":94,"box":{"x":116,"y":847,"width":755,"height":12}},{"id":"d83f03c9-f8a1-44c3-838a-9c839357bc94","block_type":"box","text":"significantly or at all in IPOs may be lower than during periods when it is able to do so. In addition, as a","page_number":94,"box":{"x":116,"y":862,"width":769,"height":12}},{"id":"3939d08e-5ace-478d-8b56-e415dcdb6ce1","block_type":"box","text":"Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":94,"box":{"x":117,"y":878,"width":721,"height":12}},{"id":"90da607a-5da1-441e-ad48-2c6afe345265","block_type":"box","text":"II-44","page_number":94,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"3de2f7a1-e993-4dae-abde-203c4a253f52","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":94,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"ccbde635-b8e7-40ad-ad31-ed251babafb9","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market","page_number":95,"box":{"x":117,"y":87,"width":743,"height":12}},{"id":"e2c01a57-e40b-41ff-8fbf-b63f24862e00","block_type":"box","text":"capitalizations. Securities issued in IPOs have no trading history, and information about the companies","page_number":95,"box":{"x":116,"y":102,"width":768,"height":13}},{"id":"2c726c4c-c7d3-4592-8b43-0ca1485bffc0","block_type":"box","text":"may be available for very limited periods.","page_number":95,"box":{"x":117,"y":118,"width":308,"height":12}},{"id":"09d51dcb-025b-47b8-a0b0-2b45dba2aaca","block_type":"box","text":"Investment in Emerging Markets.","page_number":95,"box":{"x":116,"y":157,"width":268,"height":12}},{"id":"1160411f-8699-4712-aff2-8ff6e7a3f975","block_type":"box","text":"General","page_number":95,"box":{"x":117,"y":180,"width":59,"height":10}},{"id":"03d83d0d-9f0b-4a67-9953-0527108589a5","block_type":"box","text":".","page_number":95,"box":{"x":177,"y":188,"width":8,"height":1}},{"id":"edddb958-5c71-422c-bc99-dffeadd9f466","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging","page_number":95,"box":{"x":117,"y":211,"width":727,"height":12}},{"id":"84acacb9-fff5-46a0-9883-b079b48dce90","block_type":"box","text":"capital markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital","page_number":95,"box":{"x":116,"y":227,"width":765,"height":12}},{"id":"dfb20c70-4936-4f01-93dd-411aac59802f","block_type":"box","text":"market is any country that is (i) generally recognized to be an emerging market country by the","page_number":95,"box":{"x":117,"y":242,"width":700,"height":12}},{"id":"e382dd07-983b-47e8-8c27-15ef67395424","block_type":"box","text":"international financial community, such as the International Finance Corporation, or","page_number":95,"box":{"x":117,"y":258,"width":617,"height":12}},{"id":"b7c311df-a6e0-4221-b47b-aa62c14e6828","block_type":"box","text":"determined by the","page_number":95,"box":{"x":739,"y":258,"width":139,"height":12}},{"id":"ab48c440-bea9-404c-807b-090620b1ae77","block_type":"box","text":"World Bank to have a low, middle or middle upper income economy; (ii) classified by the United","page_number":95,"box":{"x":116,"y":273,"width":714,"height":12}},{"id":"f7e3ff72-e9a3-44c9-99b6-eb24b32e4ebc","block_type":"box","text":"Nations or its authorities to be developing; and/or (iii) included in a broad-based index that is generally","page_number":95,"box":{"x":117,"y":289,"width":762,"height":12}},{"id":"8314e0fb-ddc8-4cf1-96ad-c1a33aad81dd","block_type":"box","text":"representative of emerging markets. Countries with emerging markets can be found in regions such as","page_number":95,"box":{"x":117,"y":304,"width":766,"height":12}},{"id":"9639f142-9f14-4b83-b5b1-a837cd1b6c32","block_type":"box","text":"Asia, Latin America, Eastern Europe and Africa.","page_number":95,"box":{"x":116,"y":320,"width":361,"height":12}},{"id":"99cd426c-9152-4799-af53-6c1e4d4895da","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve","page_number":95,"box":{"x":117,"y":351,"width":743,"height":12}},{"id":"c5080e91-8d10-4042-b589-d606d89f82f2","block_type":"box","text":"certain additional risks that do not generally apply to investments in securities of issuers in more","page_number":95,"box":{"x":116,"y":366,"width":717,"height":12}},{"id":"d0721e08-319a-4385-ad48-9541965df355","block_type":"box","text":"developed capital markets, such as (i) low or non-existent trading volume, resulting in market illiquidity","page_number":95,"box":{"x":116,"y":382,"width":763,"height":12}},{"id":"867a1f57-1572-4d97-8930-1bd447d25f30","block_type":"box","text":"and increased volatility in prices for such securities, as compared to securities of comparable issuers in","page_number":95,"box":{"x":116,"y":397,"width":771,"height":12}},{"id":"8b8d7688-01e2-4115-a73b-6b40613eff61","block_type":"box","text":"more developed capital markets; (ii) uncertain national policies and social, political and economic","page_number":95,"box":{"x":117,"y":413,"width":723,"height":12}},{"id":"e97be86d-5695-4ba0-8f58-3a5d47251a29","block_type":"box","text":"instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of","page_number":95,"box":{"x":117,"y":428,"width":718,"height":12}},{"id":"c7c63f41-3d5a-4c81-95f7-be99a34d390e","block_type":"box","text":"inflation or unfavorable diplomatic developments; (iii) possible fluctuations in exchange rates, differing","page_number":95,"box":{"x":117,"y":444,"width":758,"height":12}},{"id":"e073cd95-c968-4242-bcc9-c37a8b595644","block_type":"box","text":"legal systems and the existence or possible imposition of exchange controls, custodial restrictions or","page_number":95,"box":{"x":117,"y":459,"width":750,"height":12}},{"id":"5e568d7f-b9b5-4c0c-9ece-431cb632dd80","block_type":"box","text":"other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":95,"box":{"x":116,"y":475,"width":741,"height":12}},{"id":"d987c5eb-e384-4441-b747-484ead9b73a8","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers","page_number":95,"box":{"x":117,"y":490,"width":754,"height":12}},{"id":"0851ddfe-07b6-4a95-8688-3a1c3e3b5769","block_type":"box","text":"or industries deemed sensitive to national interests; and (v) the lack or relatively early development of","page_number":95,"box":{"x":116,"y":506,"width":759,"height":12}},{"id":"91d5fa18-1e7b-412e-892b-2a64ab71453b","block_type":"box","text":"legal structures governing private and foreign investments and private property. In addition to","page_number":95,"box":{"x":117,"y":521,"width":695,"height":12}},{"id":"6e8433d4-7d7f-4b84-9c89-1e7fff900136","block_type":"box","text":"withholding taxes on investment income, some countries with emerging markets may impose","page_number":95,"box":{"x":116,"y":537,"width":695,"height":12}},{"id":"1c4d4b82-12ac-4fd1-a375-ce1a9a7a7b60","block_type":"box","text":"differential capital gains taxes on foreign investors.","page_number":95,"box":{"x":116,"y":552,"width":381,"height":12}},{"id":"ee07819b-a23f-4ecd-8651-c6a3e8f01604","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant","page_number":95,"box":{"x":117,"y":583,"width":699,"height":12}},{"id":"df304836-151f-4929-8889-389811b4f551","block_type":"box","text":"evolution and rapid development, and these countries may lack the social, political and economic","page_number":95,"box":{"x":116,"y":599,"width":726,"height":12}},{"id":"f12588bc-8eb3-4a42-8a8c-98317d9ba56f","block_type":"box","text":"stability characteristic of more developed countries. In such a dynamic environment, there can be no","page_number":95,"box":{"x":116,"y":614,"width":750,"height":12}},{"id":"8b99debc-3d21-44e3-9e85-8a39dbdee119","block_type":"box","text":"assurance that any or all of these capital markets will continue to present viable investment","page_number":95,"box":{"x":116,"y":630,"width":681,"height":12}},{"id":"15656e98-be0e-4fa7-aae9-60570394c1a8","block_type":"box","text":"opportunities for a Fund. In the past, governments of such nations have expropriated substantial","page_number":95,"box":{"x":116,"y":645,"width":719,"height":12}},{"id":"c0b045a3-0595-4ca8-8be5-fb19c92b37f1","block_type":"box","text":"amounts of private property, and most claims of the property owners have never been fully settled.","page_number":95,"box":{"x":116,"y":661,"width":730,"height":12}},{"id":"e8b65d7d-e4c2-40be-874f-4be5ee871709","block_type":"box","text":"There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":95,"box":{"x":116,"y":676,"width":747,"height":12}},{"id":"f8a0a0b3-d9fb-4b32-afa6-663fb6baa0fe","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks","page_number":95,"box":{"x":117,"y":692,"width":694,"height":9}},{"id":"913a8551-9475-46d6-8fe0-ebf079336ac9","block_type":"box","text":"described above, including the risks of nationalization or expropriation of assets, may be heightened. In","page_number":95,"box":{"x":116,"y":707,"width":766,"height":12}},{"id":"cf7f9ac1-a324-4c27-9aa0-c21000d15ff4","block_type":"box","text":"addition, unanticipated political or social developments may affect the value of investments in these","page_number":95,"box":{"x":116,"y":723,"width":737,"height":12}},{"id":"5dc66ec1-12ca-4e76-a95d-7651d2c12e36","block_type":"box","text":"countries and the availability to a Fund of additional investments. The small size and inexperience of","page_number":95,"box":{"x":116,"y":738,"width":746,"height":12}},{"id":"8234a08d-ea50-497f-afe8-d068d65ec328","block_type":"box","text":"the securities markets in certain of these countries and the limited volume of trading in securities in","page_number":95,"box":{"x":116,"y":754,"width":732,"height":12}},{"id":"987a0d98-9f2f-43eb-8a96-43b90a1644ed","block_type":"box","text":"these countries may make investments in the countries illiquid and more volatile than investments in","page_number":95,"box":{"x":116,"y":769,"width":742,"height":12}},{"id":"7b3f9ec3-a593-4964-9fb1-17a918f44570","block_type":"box","text":"more established markets.","page_number":95,"box":{"x":117,"y":785,"width":195,"height":9}},{"id":"245e0dcc-7e0c-4541-8bda-76fd9c3efe36","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be","page_number":95,"box":{"x":116,"y":816,"width":765,"height":12}},{"id":"8a233b6b-8091-4fed-8ba3-588b62568e2f","block_type":"box","text":"available about issuers in more developed capital markets, and such issuers may not be subject to","page_number":95,"box":{"x":116,"y":831,"width":737,"height":12}},{"id":"4743971f-05b8-4f0c-972d-b3a26aac956d","block_type":"box","text":"accounting, auditing and financial reporting standards and requirements comparable to those to which","page_number":95,"box":{"x":116,"y":847,"width":762,"height":12}},{"id":"ecc0bb97-c5f6-46ca-953a-4568723600f4","block_type":"box","text":"U.S. companies are subject. In certain countries with emerging capital markets, reporting standards","page_number":95,"box":{"x":117,"y":862,"width":743,"height":12}},{"id":"89f84a1e-2d78-4de4-aee4-d7ccf82bbbf0","block_type":"box","text":"vary widely. As a result, traditional investment measurements used in the United States, such as price/","page_number":95,"box":{"x":116,"y":878,"width":762,"height":12}},{"id":"38ec7d67-de07-44c8-9ffd-779950a89b70","block_type":"box","text":"II-45","page_number":95,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"39503136-811f-4620-8e7f-8a245690e021","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":95,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"4b08e776-e868-482f-83d3-3fcbd3aae4cb","block_type":"box","text":"earnings ratios, may not be applicable. Emerging market securities may be substantially less liquid","page_number":96,"box":{"x":116,"y":87,"width":737,"height":12}},{"id":"b545e1d0-7872-433f-b8ba-178e86c6a88a","block_type":"box","text":"than, and more volatile than, those of mature markets, and company shares may be held by a limited","page_number":96,"box":{"x":116,"y":102,"width":755,"height":13}},{"id":"cd1de054-6c68-486f-ab60-aeaedc672816","block_type":"box","text":"number of persons. This may adversely affect the timing and pricing of the Fund’s acquisition or","page_number":96,"box":{"x":117,"y":118,"width":715,"height":12}},{"id":"6364e0e3-7df5-428a-8743-e1937c757677","block_type":"box","text":"disposal of securities.","page_number":96,"box":{"x":116,"y":134,"width":165,"height":11}},{"id":"b47731c4-f9a2-48c9-9ea7-a615f4b18874","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks","page_number":96,"box":{"x":117,"y":165,"width":746,"height":12}},{"id":"e272f38e-53b8-4a40-bb93-bdead6b6ce6d","block_type":"box","text":"than those in developed markets, in part because a Fund will need to use brokers and counterparties","page_number":96,"box":{"x":116,"y":180,"width":755,"height":12}},{"id":"809edb89-61f1-4e9c-bc0f-72ea584b9523","block_type":"box","text":"that are less well capitalized, and custody and registration of assets in some countries may be","page_number":96,"box":{"x":116,"y":196,"width":703,"height":12}},{"id":"7a8556d7-2985-4e9a-b8b8-3db1aa8faeb8","block_type":"box","text":"unreliable. The possibility of fraud, negligence, undue influence being exerted by the issuer or refusal","page_number":96,"box":{"x":117,"y":211,"width":754,"height":12}},{"id":"428317ab-e987-4b68-a8fa-122147ddb129","block_type":"box","text":"to recognize ownership exists in some emerging markets, and, along with other factors, could result in","page_number":96,"box":{"x":116,"y":227,"width":762,"height":12}},{"id":"96f7531f-4ae3-41c5-a920-e744a2c4311b","block_type":"box","text":"ownership registration being completely lost. A Fund would absorb any loss resulting from such","page_number":96,"box":{"x":116,"y":242,"width":712,"height":12}},{"id":"27f46fc3-1c72-44f4-8307-3f2e93fda856","block_type":"box","text":"registration problems and may have no successful claim for compensation.","page_number":96,"box":{"x":117,"y":258,"width":560,"height":12}},{"id":"2cfb0bc1-c975-4467-bb3f-89f1c5eff9f4","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging","page_number":96,"box":{"x":117,"y":289,"width":755,"height":12}},{"id":"5cfa71c6-07b2-4f8e-aaad-d24065e4c28b","block_type":"box","text":"market countries may be on either a currency hedged or unhedged basis, and the Funds may hold","page_number":96,"box":{"x":117,"y":304,"width":735,"height":12}},{"id":"f5a3d687-051e-417a-b94d-df4d57ce31e7","block_type":"box","text":"from time to time various foreign currencies pending investment or conversion into U.S. dollars. Some","page_number":96,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"bb51b5c8-96b4-4dfa-a0a9-06efad076698","block_type":"box","text":"of these instruments may have the characteristics of futures contracts. In addition, certain Funds may","page_number":96,"box":{"x":116,"y":335,"width":757,"height":12}},{"id":"175bc29e-a8b4-4aa9-b4e1-4d937ad200d4","block_type":"box","text":"engage in foreign currency exchange transactions to seek to protect against changes in the level of","page_number":96,"box":{"x":116,"y":351,"width":742,"height":12}},{"id":"168e2e7d-b1e4-4405-b01a-3cf522ef2e3c","block_type":"box","text":"future exchange rates which would adversely affect the Fund’s performance. These investments and","page_number":96,"box":{"x":116,"y":366,"width":752,"height":12}},{"id":"5f236496-bf5f-454e-ba01-b3a62907fbbf","block_type":"box","text":"transactions involving foreign securities, currencies, options (including options that relate to foreign","page_number":96,"box":{"x":116,"y":382,"width":738,"height":12}},{"id":"12a32e44-e0be-4860-ad52-a15b521726f5","block_type":"box","text":"currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":96,"box":{"x":116,"y":397,"width":619,"height":12}},{"id":"031e548a-d902-4e8c-87b3-0ce61fd8f33c","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":96,"box":{"x":116,"y":428,"width":328,"height":12}},{"id":"f19c8f15-c0e6-4a6b-91ae-51cae67e4acd","block_type":"box","text":"In addition to the risks of foreign investing and the risks of","page_number":96,"box":{"x":445,"y":428,"width":432,"height":12}},{"id":"8fdb2f37-e919-4cee-9787-78d97848022f","block_type":"box","text":"investing in developing markets, the developing market Asia-Pacific countries in which a Fund may","page_number":96,"box":{"x":117,"y":444,"width":738,"height":12}},{"id":"5e1d4d0c-603d-4e00-a4e4-3422b8e2c5e9","block_type":"box","text":"invest are subject to certain additional or specific risks. Certain Funds may make substantial","page_number":96,"box":{"x":117,"y":459,"width":687,"height":12}},{"id":"493dac3f-c896-481f-a5af-1388e19d29e8","block_type":"box","text":"investments in Asia-Pacific countries. In many of these markets, there is a high concentration of market","page_number":96,"box":{"x":117,"y":475,"width":771,"height":12}},{"id":"d008857e-f71e-48dd-9e63-be04f7e8c1c1","block_type":"box","text":"capitalization and trading volume in a small number of issuers representing a limited number of","page_number":96,"box":{"x":116,"y":490,"width":710,"height":12}},{"id":"a1732e34-a047-419c-bee0-c21c343dd0f3","block_type":"box","text":"industries, as well as a high concentration of investors and financial intermediaries. Many of these","page_number":96,"box":{"x":117,"y":506,"width":730,"height":12}},{"id":"ce9305b6-562e-4626-a344-63bd044dbe5a","block_type":"box","text":"markets also may be affected by developments with respect to more established markets in the region","page_number":96,"box":{"x":117,"y":521,"width":763,"height":12}},{"id":"573fc165-5143-4d00-b25f-e3ae1340c5a3","block_type":"box","text":"such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are","page_number":96,"box":{"x":116,"y":537,"width":739,"height":12}},{"id":"748d0a4a-6dd6-4552-b897-362c2389a153","block_type":"box","text":"fewer in number and less well capitalized than brokers in the United States. These factors, combined","page_number":96,"box":{"x":116,"y":552,"width":754,"height":12}},{"id":"2fa90473-1ed2-4087-939d-1d4f9ec11fbc","block_type":"box","text":"with the U.S. regulatory requirements for open-end investment companies and the restrictions on","page_number":96,"box":{"x":116,"y":568,"width":725,"height":12}},{"id":"10da71d9-03c5-4757-8147-2ef92283a7f9","block_type":"box","text":"foreign investment discussed below, result in potentially fewer investment opportunities for a Fund and","page_number":96,"box":{"x":116,"y":583,"width":766,"height":12}},{"id":"bd744362-e10f-46cb-b2c7-d0d801d2b541","block_type":"box","text":"may have an adverse impact on the investment performance of the Fund.","page_number":96,"box":{"x":117,"y":599,"width":550,"height":12}},{"id":"e593556f-73c3-447a-a7c2-86bc250924c0","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic,","page_number":96,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"c3abd459-6754-47c3-8afb-fe0f90e6479d","block_type":"box","text":"political and social instability than is the case in the United States and Western European countries.","page_number":96,"box":{"x":117,"y":645,"width":743,"height":12}},{"id":"c07ea21e-df93-49f6-9d05-e03383636f58","block_type":"box","text":"Such instability may result from, among other things: (i) authoritarian governments or military","page_number":96,"box":{"x":116,"y":661,"width":688,"height":12}},{"id":"9ed384b8-ca9c-4f79-9ecf-edf88ff29c46","block_type":"box","text":"involvement in political and economic decision-making, including changes in government through","page_number":96,"box":{"x":117,"y":676,"width":718,"height":12}},{"id":"a0f86447-b09a-4063-8284-90f0101f3590","block_type":"box","text":"extra-constitutional means; (ii) popular unrest associated with demands for improved political,","page_number":96,"box":{"x":116,"y":692,"width":692,"height":12}},{"id":"1c36ce8b-ee4b-4636-8ab0-a9aa53f7ca1b","block_type":"box","text":"economic and social conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring","page_number":96,"box":{"x":116,"y":707,"width":704,"height":12}},{"id":"0c456028-c084-46cc-83b3-8f87b5d1bd1b","block_type":"box","text":"countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of such","page_number":96,"box":{"x":116,"y":723,"width":763,"height":12}},{"id":"16445637-a3cd-4536-b592-1c0b7290dd4f","block_type":"box","text":"countries, such as Indonesia, have a substantial role in regulating and supervising the economy.","page_number":96,"box":{"x":116,"y":738,"width":714,"height":12}},{"id":"00644c5a-e1e5-4fde-ab45-f5c7811b4516","block_type":"box","text":"Another risk common to most such countries is that the economy is heavily export oriented and,","page_number":96,"box":{"x":116,"y":754,"width":710,"height":12}},{"id":"87ec9fc8-51e2-4adf-a38d-4ddbcc809121","block_type":"box","text":"accordingly, is dependent upon international trade. The existence of overburdened infrastructure and","page_number":96,"box":{"x":116,"y":769,"width":748,"height":12}},{"id":"fa7eb764-65b9-48eb-a930-6420664f26cf","block_type":"box","text":"obsolete financial systems also presents risks in certain countries, as do environmental problems.","page_number":96,"box":{"x":116,"y":785,"width":724,"height":12}},{"id":"bc33894d-638f-4e88-8c77-6d3cdc299743","block_type":"box","text":"Certain economies also depend to a significant degree upon exports of primary commodities and,","page_number":96,"box":{"x":117,"y":800,"width":721,"height":12}},{"id":"97ee29b9-9f7c-4ee1-8cb7-f0fc56d508f6","block_type":"box","text":"therefore, are vulnerable to changes in commodity prices that, in turn, may be affected by a variety of","page_number":96,"box":{"x":116,"y":816,"width":752,"height":12}},{"id":"99861fa2-7070-4b73-85c7-980a94585b82","block_type":"box","text":"factors.","page_number":96,"box":{"x":116,"y":831,"width":60,"height":10}},{"id":"45366d30-08a5-4d90-8e0d-49d31e04823d","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse","page_number":96,"box":{"x":116,"y":862,"width":722,"height":12}},{"id":"32ff4722-0d46-45e9-8338-7ab53c93ae61","block_type":"box","text":"impact on the Fund. For example, while the potential liability of a shareholder in a U.S. corporation with","page_number":96,"box":{"x":117,"y":878,"width":769,"height":12}},{"id":"e0cc4a97-d858-4c14-9718-e0c3525685c7","block_type":"box","text":"II-46","page_number":96,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d5725af2-1c9e-4ecc-a17a-89072844d6e7","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":96,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"2509c4d3-8457-4f98-9a79-52ed7caea7cd","block_type":"box","text":"respect to acts of the corporation is generally limited to the amount of the shareholder’s investment, the","page_number":97,"box":{"x":117,"y":87,"width":771,"height":12}},{"id":"73934481-d1ea-4bf0-8e83-776e2ebf52c3","block_type":"box","text":"notion of limited liability is less clear in certain emerging market Asia-Pacific countries. Similarly, the","page_number":97,"box":{"x":117,"y":102,"width":744,"height":13}},{"id":"d242f7f7-17cb-4639-9a42-a4378fe014d6","block_type":"box","text":"rights of investors in developing market Asia-Pacific companies may be more limited than those of","page_number":97,"box":{"x":117,"y":118,"width":732,"height":12}},{"id":"26f0bb5e-8187-4be2-b5c0-836493e0d015","block_type":"box","text":"shareholders of U.S. corporations. It may be difficult or impossible to obtain and/or enforce a judgment","page_number":97,"box":{"x":116,"y":134,"width":765,"height":12}},{"id":"7eabf769-00ef-46c2-be49-cab3b7c85f5f","block_type":"box","text":"in a developing market Asia-Pacific country.","page_number":97,"box":{"x":117,"y":149,"width":330,"height":12}},{"id":"c4dd965a-e6c0-4cad-9b0d-29f085f85934","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to","page_number":97,"box":{"x":117,"y":180,"width":714,"height":12}},{"id":"bd119993-9546-49c3-aa63-526a768a5d58","block_type":"box","text":"exercise substantial influence over many aspects of the private sector. In certain cases, the","page_number":97,"box":{"x":116,"y":196,"width":683,"height":12}},{"id":"325b5f16-7dfa-4fa2-b0c6-03a5dd81bdad","block_type":"box","text":"government owns or controls many companies, including the largest in the country. Accordingly,","page_number":97,"box":{"x":116,"y":211,"width":718,"height":12}},{"id":"3bb19170-10ed-44ea-a6b9-1686802ad953","block_type":"box","text":"government actions in the future could have a significant effect on economic conditions in developing","page_number":97,"box":{"x":116,"y":227,"width":755,"height":12}},{"id":"291b2e8d-4db1-4856-8e33-99eb69e5c4a6","block_type":"box","text":"market Asia-Pacific countries, which could affect private sector companies and a Fund itself, as well as","page_number":97,"box":{"x":117,"y":242,"width":768,"height":12}},{"id":"9505a919-00a3-43ff-bafd-0d940c4a5dc2","block_type":"box","text":"the value of securities in the Fund’s portfolio. In addition, economic statistics of developing market","page_number":97,"box":{"x":116,"y":258,"width":731,"height":12}},{"id":"66038af3-276f-4e21-84bc-e1f2c9c8b2ae","block_type":"box","text":"Asia-Pacific countries may be less reliable than economic statistics of more developed nations.","page_number":97,"box":{"x":116,"y":273,"width":710,"height":12}},{"id":"42562352-ec93-4f92-bd5e-01d5db49be73","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific","page_number":97,"box":{"x":117,"y":304,"width":741,"height":12}},{"id":"b648d77c-170a-41a2-85b1-b562f4f74923","block_type":"box","text":"issuers and the possibility that such issuers may not be subject to the same accounting, auditing and","page_number":97,"box":{"x":117,"y":320,"width":752,"height":12}},{"id":"ff815144-1b45-4579-b7e1-4b73504a54cc","block_type":"box","text":"financial reporting standards as U.S. companies, inflation accounting rules in some developing market","page_number":97,"box":{"x":116,"y":335,"width":762,"height":12}},{"id":"396f3a44-0ca9-4a73-ad47-38d6422dc3d7","block_type":"box","text":"Asia-Pacific countries require companies that keep accounting records in the local currency, for both","page_number":97,"box":{"x":116,"y":351,"width":750,"height":12}},{"id":"ba8b1e66-1561-4da5-8d26-756117a67ace","block_type":"box","text":"tax and accounting purposes, to restate certain assets and liabilities on the company’s balance sheet","page_number":97,"box":{"x":116,"y":366,"width":755,"height":12}},{"id":"9f62be3c-56fb-4cb3-9c57-5023f16bfea3","block_type":"box","text":"in order to express items in terms of currency of constant purchasing power. Inflation accounting may","page_number":97,"box":{"x":117,"y":382,"width":756,"height":12}},{"id":"48505f95-6f79-40d2-972b-f05bb75340bc","block_type":"box","text":"indirectly generate losses or profits for certain developing market Asia-Pacific companies.","page_number":97,"box":{"x":117,"y":397,"width":669,"height":12}},{"id":"b5c1454e-07bb-4a7b-ba1c-cf95e2b2bfe1","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia","page_number":97,"box":{"x":116,"y":428,"width":762,"height":12}},{"id":"227b8815-785b-4c31-b8e0-06fe6e07f9fb","block_type":"box","text":"Pacific countries, which may result in the Fund incurring additional costs and delays in providing","page_number":97,"box":{"x":117,"y":444,"width":716,"height":12}},{"id":"a86764b4-eb9d-4a5e-bf49-e4e9ba7db9b4","block_type":"box","text":"transportation and custody services for such securities outside such countries.","page_number":97,"box":{"x":116,"y":459,"width":586,"height":12}},{"id":"1bfb84c8-6c3d-4f2f-a399-de621a492511","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially","page_number":97,"box":{"x":117,"y":490,"width":738,"height":12}},{"id":"05870de5-4170-48d2-a27c-343aa470fd6b","block_type":"box","text":"large debtors to commercial banks and foreign governments.","page_number":97,"box":{"x":117,"y":506,"width":456,"height":12}},{"id":"13ecc3b0-cc6d-429c-af5d-dee1b59f5548","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and","page_number":97,"box":{"x":117,"y":537,"width":705,"height":12}},{"id":"a317669d-2061-42ac-bb82-af4dbe33e1e1","block_type":"box","text":"negative impact on a Fund’s investment portfolio and, in the longer term, could impair the ability of","page_number":97,"box":{"x":117,"y":552,"width":732,"height":12}},{"id":"c30aa0f5-8c1f-4145-a46c-730e78fda4d8","block_type":"box","text":"issuers in which the Fund invests to conduct their businesses in the manner normally conducted.","page_number":97,"box":{"x":117,"y":568,"width":722,"height":12}},{"id":"974b6128-29dd-46af-ba4c-c4aaa9f091b3","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may","page_number":97,"box":{"x":117,"y":599,"width":766,"height":12}},{"id":"6c31e5d7-bb80-4cf2-b818-611df5dc4723","block_type":"box","text":"not be practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may","page_number":97,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"a1dd5bce-0ad0-4a11-a9b0-a1e7a6cc9d79","block_type":"box","text":"invest in countries in which foreign investors, including management of the Fund, have had no or","page_number":97,"box":{"x":117,"y":630,"width":722,"height":12}},{"id":"f68ae52f-d326-45a0-b086-972f2f0c4808","block_type":"box","text":"limited prior experience.","page_number":97,"box":{"x":117,"y":645,"width":182,"height":12}},{"id":"2fedf463-708d-4fb0-921e-4f44fcd9bd4f","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":97,"box":{"x":116,"y":676,"width":458,"height":12}},{"id":"f13d3214-6f10-482e-ace9-78fcd33e604f","block_type":"box","text":"Some developing Asia-Pacific countries","page_number":97,"box":{"x":581,"y":676,"width":294,"height":12}},{"id":"9ef25371-fe5b-44dd-b561-1d2fb56fb8ab","block_type":"box","text":"prohibit or impose substantial restrictions on investments in their capital markets, particularly their","page_number":97,"box":{"x":117,"y":692,"width":723,"height":12}},{"id":"91c075d4-8d9b-4605-a6ee-d5c92bd6c05f","block_type":"box","text":"equity markets, by foreign entities such as a Fund. As illustrations, certain countries may require","page_number":97,"box":{"x":116,"y":707,"width":714,"height":12}},{"id":"c4a820c0-5ed9-426c-bf25-704652e93481","block_type":"box","text":"governmental approval prior to investments by foreign persons or limit the amount of investment by","page_number":97,"box":{"x":116,"y":723,"width":736,"height":12}},{"id":"a7d6be42-4ded-47ae-b49f-6e01ea82d163","block_type":"box","text":"foreign persons in a particular company or limit the investment by foreign persons to only a specific","page_number":97,"box":{"x":116,"y":738,"width":735,"height":12}},{"id":"28cae24a-8a45-4c5b-9238-a99719968b7a","block_type":"box","text":"class of securities of a company which may have less advantageous terms (including price and","page_number":97,"box":{"x":116,"y":754,"width":705,"height":12}},{"id":"04702cd4-f9be-45c4-8e1c-770654b8df40","block_type":"box","text":"shareholder rights) than securities of the company available for purchase by nationals. There can be","page_number":97,"box":{"x":116,"y":769,"width":745,"height":12}},{"id":"120717e7-c2ce-496d-b452-7200bf876f45","block_type":"box","text":"no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In","page_number":97,"box":{"x":117,"y":785,"width":762,"height":12}},{"id":"dd764962-5653-4ff5-a7cb-01b19b3aa644","block_type":"box","text":"addition, changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of","page_number":97,"box":{"x":116,"y":800,"width":765,"height":12}},{"id":"dc360c7f-7dbb-4997-8e02-9d17641a8465","block_type":"box","text":"such securities may have an adverse effect on the value of such shares. Certain countries may restrict","page_number":97,"box":{"x":116,"y":816,"width":761,"height":12}},{"id":"f06fa20a-f22a-46a2-bc03-067a0ff334af","block_type":"box","text":"investment opportunities in issuers or industries deemed important to national interests.","page_number":97,"box":{"x":117,"y":831,"width":654,"height":12}},{"id":"fd55ee8e-2594-4de8-957c-61b01e1ebc60","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific","page_number":97,"box":{"x":116,"y":862,"width":729,"height":12}},{"id":"831dc301-0644-4076-83d1-e84718356211","block_type":"box","text":"countries, as well as limitations on such investments, also may have an adverse impact on the","page_number":97,"box":{"x":116,"y":878,"width":705,"height":12}},{"id":"0e65376a-cf61-4a7e-9b7f-bd38eaecdd67","block_type":"box","text":"II-47","page_number":97,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"241abbcf-417a-47c2-9504-002dec94c087","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":97,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"49cc5dce-b960-42c9-a036-871229d52a3d","block_type":"box","text":"operations of a Fund. For example, a Fund may be required in certain of such countries to invest","page_number":98,"box":{"x":116,"y":87,"width":722,"height":12}},{"id":"23b0a1d0-cf40-4fa3-92db-92ec80e8fd43","block_type":"box","text":"initially through a local broker or other entity and then have the shares purchased re-registered in the","page_number":98,"box":{"x":117,"y":103,"width":753,"height":12}},{"id":"a7fbb8a9-671a-4ecf-8f46-6d0a3f9bda96","block_type":"box","text":"name of the Fund. Re-registration may in some instances not be able to occur on a timely basis,","page_number":98,"box":{"x":117,"y":118,"width":718,"height":12}},{"id":"8c5238e8-2f20-4590-a001-3fa8ac6217d7","block_type":"box","text":"resulting in a delay during which a Fund may be denied certain of its rights as an investor, including","page_number":98,"box":{"x":117,"y":134,"width":742,"height":12}},{"id":"5661c97e-f97b-422a-9dea-162fd84530ef","block_type":"box","text":"rights as to dividends or to be made aware of certain corporate actions. There also may be instances","page_number":98,"box":{"x":117,"y":149,"width":753,"height":12}},{"id":"c5fff0d0-ec86-4e32-b6e4-5524209fd6a3","block_type":"box","text":"where a Fund places a purchase order but is subsequently informed, at the time of re-registration, that","page_number":98,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"3e59c4c7-61fc-4965-bd09-39a7cbd581f5","block_type":"box","text":"the permissible allocation of the investment to foreign investors has been filled, depriving the Fund of","page_number":98,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"680ed910-22ac-4b31-bfcf-2842e11dc0a3","block_type":"box","text":"the ability to make its desired investment at that time.","page_number":98,"box":{"x":116,"y":196,"width":400,"height":12}},{"id":"f2702d81-d370-469a-bffb-e9fd3d6351f1","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate","page_number":98,"box":{"x":116,"y":227,"width":714,"height":12}},{"id":"64f2e479-fc8e-45df-b57e-a1c6084860ae","block_type":"box","text":"investment income, capital or the proceeds of sales of securities by foreign investors. A Fund could be","page_number":98,"box":{"x":117,"y":242,"width":763,"height":12}},{"id":"2df28a38-76df-43f9-bc88-b351aaeaa396","block_type":"box","text":"adversely affected by delays in, or a refusal to grant, any required governmental approval for","page_number":98,"box":{"x":116,"y":258,"width":693,"height":12}},{"id":"52a4e5f3-5d34-437e-af21-3a6d368605dd","block_type":"box","text":"repatriation of capital, as well as by the application to the Fund of any restrictions on investments. It is","page_number":98,"box":{"x":117,"y":273,"width":759,"height":12}},{"id":"c679f399-1ec2-48ac-ae0c-d6905bf6110e","block_type":"box","text":"possible that certain countries may impose currency controls or other restrictions relating to their","page_number":98,"box":{"x":117,"y":289,"width":719,"height":12}},{"id":"1beb766d-9cbc-4b35-8a2b-bfbb2bba5ac0","block_type":"box","text":"currencies or to securities of issuers in those countries. To the extent that such restrictions have the","page_number":98,"box":{"x":116,"y":304,"width":746,"height":10}},{"id":"095e352e-3d8d-4255-9e73-469700ea8252","block_type":"box","text":"effect of making certain investments illiquid, securities may not be available for sale to meet","page_number":98,"box":{"x":116,"y":320,"width":685,"height":12}},{"id":"d4afff5b-ae28-4665-9414-80855a87cf0f","block_type":"box","text":"redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":98,"box":{"x":117,"y":335,"width":770,"height":12}},{"id":"b1117ecd-d1b9-4048-99ae-095d7287a01f","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the","page_number":98,"box":{"x":116,"y":351,"width":763,"height":12}},{"id":"3afb8503-51d1-45f4-b6d6-3731901e5d91","block_type":"box","text":"Fund’s assets that may be used to meet redemptions may be further decreased. Even where there is","page_number":98,"box":{"x":117,"y":366,"width":754,"height":12}},{"id":"65b63657-f697-4bfd-bbf9-0a93be52e92b","block_type":"box","text":"no outright restriction on repatriation of capital, the mechanics of repatriation may affect certain aspects","page_number":98,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"41a229dd-9cd0-4df9-beff-a112b4e7dcc5","block_type":"box","text":"of the operations of a Fund (for example, if funds may be withdrawn only in certain currencies and/or","page_number":98,"box":{"x":116,"y":397,"width":751,"height":12}},{"id":"d3d50546-71a9-4a25-b74e-9b9d0b8c0f5f","block_type":"box","text":"only at an exchange rate established by the government).","page_number":98,"box":{"x":116,"y":413,"width":433,"height":12}},{"id":"910732e9-68b3-4671-af9a-4d3e9bd89017","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have","page_number":98,"box":{"x":117,"y":444,"width":763,"height":12}},{"id":"42c96886-71cd-48f6-bb44-0c0b67b549a9","block_type":"box","text":"actively traded securities available for investment. The Investment Company Act restricts a Fund’s","page_number":98,"box":{"x":116,"y":459,"width":734,"height":12}},{"id":"d04259c3-dfef-4877-bfad-8a7f7526c227","block_type":"box","text":"investments in any equity securities of an issuer that, in its most recent fiscal year, derived more than","page_number":98,"box":{"x":117,"y":475,"width":755,"height":12}},{"id":"534a7431-4d1f-4260-9b64-0464b9071bf3","block_type":"box","text":"15% of its revenues from “securities related activities,” as defined by the rules thereunder. These","page_number":98,"box":{"x":118,"y":490,"width":722,"height":12}},{"id":"ad8aa00f-b274-47d6-990f-705592959f3e","block_type":"box","text":"provisions may restrict a Fund’s investments in certain foreign banks and other financial institutions.","page_number":98,"box":{"x":117,"y":506,"width":744,"height":12}},{"id":"9924c201-a590-4920-b0c2-51305ce77320","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant","page_number":98,"box":{"x":117,"y":537,"width":699,"height":12}},{"id":"66387ba0-4f81-4014-93c0-db961dadf885","block_type":"box","text":"evolution and rapid development, and these countries may lack the social, political and economic","page_number":98,"box":{"x":116,"y":552,"width":726,"height":12}},{"id":"d0c0f13a-2291-453c-82c7-4df08343399f","block_type":"box","text":"stability characteristic of more developed countries. Some of these countries may have in the past","page_number":98,"box":{"x":116,"y":568,"width":732,"height":12}},{"id":"608e3ccc-152d-4135-a9d1-d3f921473ffe","block_type":"box","text":"failed to recognize private property rights and have at times nationalized or expropriated the assets of","page_number":98,"box":{"x":116,"y":583,"width":759,"height":12}},{"id":"2568dd91-9cac-4f1d-a320-695cf1ac144c","block_type":"box","text":"private companies. As a result the risks described above, including the risks of nationalization or","page_number":98,"box":{"x":117,"y":599,"width":718,"height":12}},{"id":"72e89573-ff99-41ff-a753-bf68aa2214e2","block_type":"box","text":"expropriation of assets, may be heightened. In addition, unanticipated political or social developments","page_number":98,"box":{"x":116,"y":614,"width":760,"height":12}},{"id":"26c1d8af-7775-4700-aa50-3bc0a20ef0a6","block_type":"box","text":"may affect the value of investments in these countries and the availability to a Fund of additional","page_number":98,"box":{"x":117,"y":630,"width":718,"height":12}},{"id":"e4d81d05-0af7-40c3-98b0-fa70bdf86810","block_type":"box","text":"investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":98,"box":{"x":117,"y":645,"width":770,"height":12}},{"id":"f6999b01-f66a-4654-ae05-a3044038bf59","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make","page_number":98,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"6deb7875-a300-4221-a100-300785e214c7","block_type":"box","text":"investments in the countries illiquid and more volatile than investments in Japan or most Western","page_number":98,"box":{"x":117,"y":676,"width":719,"height":12}},{"id":"b387902c-ef64-48ae-a3f5-7455791f1e26","block_type":"box","text":"European countries. There may be little financial or accounting information available with respect to","page_number":98,"box":{"x":117,"y":692,"width":736,"height":12}},{"id":"472a8ccc-74f3-4abc-8614-88b10d4e6dcd","block_type":"box","text":"issuers located in certain emerging market countries, and it may be difficult to assess the value or","page_number":98,"box":{"x":117,"y":707,"width":724,"height":12}},{"id":"99c65623-68c1-4b02-92d0-991d9bdd50e4","block_type":"box","text":"prospects of an investment in such issuers.","page_number":98,"box":{"x":117,"y":723,"width":319,"height":12}},{"id":"790728ef-5c6d-4eff-b6a1-ed43767fad97","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be","page_number":98,"box":{"x":116,"y":754,"width":723,"height":12}},{"id":"e6c63258-c7b5-4d61-929c-e6dd99e3d108","block_type":"box","text":"higher than those of Funds investing primarily in domestic securities. The costs attributable to investing","page_number":98,"box":{"x":117,"y":769,"width":763,"height":12}},{"id":"a98eabe7-f0ff-4f26-b53f-a3239b0cab9b","block_type":"box","text":"abroad are usually higher for several reasons, such as the higher cost of custody of foreign securities,","page_number":98,"box":{"x":116,"y":785,"width":755,"height":12}},{"id":"c13e3909-67a5-4e7b-a93f-d4ad3bcb244b","block_type":"box","text":"higher commissions paid on comparable transactions on foreign markets and additional costs arising","page_number":98,"box":{"x":117,"y":800,"width":746,"height":12}},{"id":"48f29477-d93d-4be3-9ecf-421c68250da8","block_type":"box","text":"from delays in settlements of transactions involving foreign securities.","page_number":98,"box":{"x":116,"y":816,"width":515,"height":12}},{"id":"96e90e36-b49f-4a51-ada9-3010eba45eec","block_type":"box","text":"Risks of Investments in Russia.","page_number":98,"box":{"x":116,"y":847,"width":232,"height":9}},{"id":"736fab5b-4249-4aea-bb92-bc2b86d9822e","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by","page_number":98,"box":{"x":350,"y":847,"width":482,"height":12}},{"id":"1dad0ee7-934f-4d06-a646-5b3d2049b31a","block_type":"box","text":"companies located in Russia. The Russian securities market suffers from a variety of problems","page_number":98,"box":{"x":116,"y":862,"width":709,"height":12}},{"id":"307052f7-5544-47e6-bb2e-f3639fab992e","block_type":"box","text":"described above in “Investment in Emerging Markets” not encountered in more developed markets.","page_number":98,"box":{"x":116,"y":878,"width":742,"height":12}},{"id":"be46be11-4768-4db4-9be1-0f8333361df3","block_type":"box","text":"II-48","page_number":98,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c26e82b7-d892-4caa-a21c-a4c4f9c4d0f3","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":98,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"8d8a490b-29e2-486b-81ca-631af71ad9bd","block_type":"box","text":"The Russian securities market is relatively new, and a substantial portion of securities transactions in","page_number":99,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"e7c312e9-20e5-4a75-a1e4-30310528b51f","block_type":"box","text":"Russia are privately negotiated outside of stock exchanges. The inexperience of the Russian securities","page_number":99,"box":{"x":117,"y":102,"width":769,"height":13}},{"id":"09b615d4-b509-4b78-9997-8c29e2d0a951","block_type":"box","text":"market and the limited volume of trading in securities in the market may make obtaining accurate","page_number":99,"box":{"x":117,"y":118,"width":723,"height":12}},{"id":"8c247762-3fde-4767-99b6-b84a14f09030","block_type":"box","text":"prices on portfolio securities from independent sources more difficult than in more developed markets.","page_number":99,"box":{"x":117,"y":134,"width":761,"height":11}},{"id":"b537c1b9-f611-46c2-960d-f353e5e8a951","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and","page_number":99,"box":{"x":117,"y":165,"width":639,"height":12}},{"id":"2f6cd9fd-aabd-4c38-87c3-0d7a88851819","block_type":"box","text":"telecommunication systems, settlement, clearing and registration of securities transactions are subject","page_number":99,"box":{"x":116,"y":180,"width":764,"height":12}},{"id":"59e354a2-8238-4e8a-b252-3ab9459d19df","block_type":"box","text":"to additional risks. Prior to 2013, there was no central registration system for equity share registration","page_number":99,"box":{"x":116,"y":196,"width":756,"height":12}},{"id":"819ed0ee-27b0-465e-8f90-bc0f86162cd4","block_type":"box","text":"in Russia and registration was carried out either by the issuers themselves or by registrars located","page_number":99,"box":{"x":117,"y":211,"width":733,"height":12}},{"id":"55c8c511-8713-49ac-8f8b-a8a7c179b897","block_type":"box","text":"throughout Russia. These registrars may not have been subject to effective state supervision or","page_number":99,"box":{"x":116,"y":227,"width":715,"height":12}},{"id":"0bf885d1-2049-45cd-b47f-7ac94f60110d","block_type":"box","text":"licensed with any governmental entity. In 2013, Russia established the National Settlement Depository","page_number":99,"box":{"x":117,"y":242,"width":764,"height":12}},{"id":"94e9c3ef-d898-4605-9113-6d307da8b141","block_type":"box","text":"(“NSD”) as a recognized central securities depository, and title to Russian equities held through the","page_number":99,"box":{"x":117,"y":258,"width":740,"height":12}},{"id":"29382bb1-2290-4731-a0c3-15a148e04113","block_type":"box","text":"NSD is now based on the records of the NSD and not on the records of the local registrars. Although","page_number":99,"box":{"x":117,"y":273,"width":751,"height":12}},{"id":"4e26e3db-3369-40fa-a8c9-fa8b7e56b71f","block_type":"box","text":"the implementation of the NSD has enhanced the efficiency and transparency of the Russian securities","page_number":99,"box":{"x":116,"y":289,"width":770,"height":12}},{"id":"f4c3a3f9-15b1-4181-9839-818fb355024b","block_type":"box","text":"market, loss still can occur. Additionally, issuers and registrars remain prominent in the validation and","page_number":99,"box":{"x":117,"y":304,"width":757,"height":12}},{"id":"91db9ba2-b329-494c-86a7-edcb737620de","block_type":"box","text":"approval of documentation requirements for corporate action processing in Russia, and, because the","page_number":99,"box":{"x":116,"y":320,"width":754,"height":12}},{"id":"82fd012e-20a1-4898-889d-40ad0db11c22","block_type":"box","text":"documentation requirements and approval criteria vary between registrars and issuers, there remain","page_number":99,"box":{"x":116,"y":335,"width":749,"height":12}},{"id":"c6270aec-ae13-4321-9ef0-81cb83d20dc2","block_type":"box","text":"inconsistent market standards in the Russian market with respect to the completion and submission of","page_number":99,"box":{"x":117,"y":351,"width":762,"height":12}},{"id":"dacd04b4-8e7a-4c8d-a8dd-1462356557b5","block_type":"box","text":"corporate action elections. To the extent that a Fund suffers a loss relating to title or corporate actions","page_number":99,"box":{"x":116,"y":366,"width":761,"height":12}},{"id":"bf790e8b-5173-4d09-af9d-6d7aefacbdd1","block_type":"box","text":"relating to its portfolio securities, it may be difficult for the Fund to enforce its rights or otherwise","page_number":99,"box":{"x":117,"y":382,"width":713,"height":12}},{"id":"a95eeba2-df59-4737-bd20-a5c93a43ba77","block_type":"box","text":"remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":99,"box":{"x":117,"y":397,"width":731,"height":12}},{"id":"ad907bef-0132-469f-ae79-9dd71600dbff","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held","page_number":99,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"91b014ba-9d86-4ee3-a5b2-91c72c5f7b13","block_type":"box","text":"on behalf of their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments","page_number":99,"box":{"x":116,"y":428,"width":770,"height":12}},{"id":"78e9787a-1802-48f0-a57e-b4eb83dfef9a","block_type":"box","text":"in Russia.","page_number":99,"box":{"x":117,"y":444,"width":77,"height":9}},{"id":"09486be4-2021-46d8-94c4-711484cf1120","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military","page_number":99,"box":{"x":117,"y":475,"width":708,"height":12}},{"id":"d260bebb-628f-4a2b-8861-a2d70f892091","block_type":"box","text":"measures, as it did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia","page_number":99,"box":{"x":117,"y":490,"width":735,"height":12}},{"id":"e912714e-11d2-4ba5-847e-c7aa6b070b00","block_type":"box","text":"launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the","page_number":99,"box":{"x":117,"y":506,"width":720,"height":12}},{"id":"fe8021fb-6947-45c0-8938-d1af2c40858b","block_type":"box","text":"military action, resulting sanctions and resulting future market disruptions, including declines in its","page_number":99,"box":{"x":117,"y":521,"width":727,"height":12}},{"id":"3e4bb762-a8da-4c70-93e9-275a288ab4ed","block_type":"box","text":"stock markets and the value of the ruble against the U.S. dollar, are impossible to predict. Any such","page_number":99,"box":{"x":116,"y":537,"width":744,"height":12}},{"id":"c11e3f91-1081-446d-ba22-2f15fbee1249","block_type":"box","text":"disruptions caused by Russian military action or other actions (including cyberattacks and espionage)","page_number":99,"box":{"x":116,"y":552,"width":757,"height":12}},{"id":"fbfba3cd-ffeb-495b-8b20-49a587887a7b","block_type":"box","text":"or resulting actual and threatened responses to such activity, including purchasing and financing","page_number":99,"box":{"x":116,"y":568,"width":720,"height":12}},{"id":"79915ebe-0d7b-4d33-8dc4-d135c583b184","block_type":"box","text":"restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or","page_number":99,"box":{"x":117,"y":583,"width":685,"height":12}},{"id":"32bad4e4-6bab-4d79-b469-7f211f05733e","block_type":"box","text":"cyberattacks on the Russian government, Russian companies or Russian individuals, including","page_number":99,"box":{"x":116,"y":599,"width":710,"height":12}},{"id":"67c3b5b7-7255-4011-b641-867be2691a93","block_type":"box","text":"politicians, may impact Russia’s economy and Russian issuers of securities in which the Fund invests.","page_number":99,"box":{"x":117,"y":614,"width":763,"height":12}},{"id":"02864050-5e72-4b44-b37d-23c4732acf99","block_type":"box","text":"Actual and threatened responses to such activity, including purchasing restrictions, sanctions, tariffs or","page_number":99,"box":{"x":116,"y":630,"width":766,"height":12}},{"id":"b9f1cd9c-6824-4a1b-bb38-1bc4ae268dab","block_type":"box","text":"cyberattacks on the Russian government or Russian companies, may impact Russia’s economy and","page_number":99,"box":{"x":116,"y":645,"width":750,"height":12}},{"id":"780e32e2-ef1e-452e-b955-533bd2ec2ab0","block_type":"box","text":"Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":99,"box":{"x":117,"y":661,"width":720,"height":12}},{"id":"ad393110-5a1b-4528-af40-e36dca026af5","block_type":"box","text":"military action may also impact the markets for certain Russian commodities, such as oil and natural","page_number":99,"box":{"x":117,"y":676,"width":741,"height":12}},{"id":"9bf8b5e9-07fd-4c58-88fd-1e3c9e145653","block_type":"box","text":"gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":99,"box":{"x":116,"y":692,"width":752,"height":12}},{"id":"5d26ad23-c67b-41b8-a6e8-718ee3ced76f","block_type":"box","text":"sectors globally.","page_number":99,"box":{"x":116,"y":707,"width":119,"height":12}},{"id":"5dbdf806-5a37-4bcd-9d59-ced6945292ed","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”)","page_number":99,"box":{"x":117,"y":738,"width":735,"height":12}},{"id":"1bce6c73-4ac1-47e8-8e0e-8e0241763295","block_type":"box","text":"have imposed economic sanctions, which can consist of prohibiting certain securities trades, certain","page_number":99,"box":{"x":117,"y":754,"width":739,"height":12}},{"id":"182a40c3-9626-4306-be89-e73e149f3048","block_type":"box","text":"private transactions in the energy sector, asset freezes and prohibition of all business, against certain","page_number":99,"box":{"x":117,"y":769,"width":751,"height":12}},{"id":"44b829bc-542e-4c5e-8b12-5b4830d230ec","block_type":"box","text":"Russian individuals, including politicians, and Russian corporate and banking entities. The Sanctioning","page_number":99,"box":{"x":117,"y":785,"width":760,"height":12}},{"id":"d9a695c7-b3b4-4d30-b8fe-d729b4455b06","block_type":"box","text":"Bodies, or others, could also institute broader sanctions on Russia, including banning Russia from","page_number":99,"box":{"x":117,"y":800,"width":725,"height":12}},{"id":"ec974448-2066-43e5-9407-fe77c84cefd7","block_type":"box","text":"global payments systems that facilitate cross-border payments. These sanctions, or even the threat of","page_number":99,"box":{"x":116,"y":816,"width":758,"height":12}},{"id":"ff4064da-33ae-4fea-843e-4322996741fd","block_type":"box","text":"further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening","page_number":99,"box":{"x":116,"y":831,"width":769,"height":12}},{"id":"6a91d52c-435f-47a6-8db3-0f2423910b96","block_type":"box","text":"of the ruble or other adverse consequences to the Russian economy. These sanctions have resulted","page_number":99,"box":{"x":116,"y":847,"width":752,"height":12}},{"id":"c3e981cb-8225-4a4e-87c8-9b503aacd7d6","block_type":"box","text":"and may continue to result in the immediate freeze of Russian securities and/or funds invested in","page_number":99,"box":{"x":116,"y":862,"width":725,"height":12}},{"id":"c97e7177-f182-4ac5-a4b4-1fe84cb77e3c","block_type":"box","text":"prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities and/or","page_number":99,"box":{"x":117,"y":878,"width":757,"height":12}},{"id":"4aa7f3fc-9a30-4b7f-b08a-b95c98e4d56f","block_type":"box","text":"II-49","page_number":99,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ea573936-0e37-42fc-b0fd-ec56ed87e325","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":99,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"a37443b2-8301-4356-8322-1bdf9a636045","block_type":"box","text":"assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":100,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"b68edb75-c3e7-4d7c-ab4a-09142415ce62","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":100,"box":{"x":116,"y":102,"width":435,"height":13}},{"id":"108a0fcf-0822-4e6b-8c41-870e6ece80d0","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":100,"box":{"x":116,"y":134,"width":253,"height":12}},{"id":"eaa61885-c0db-4fbf-9da2-b4c1ca78b88e","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi","page_number":100,"box":{"x":371,"y":134,"width":497,"height":12}},{"id":"a7dddf11-4404-42a7-91ff-0a797d21d6b4","block_type":"box","text":"Arabian issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian","page_number":100,"box":{"x":116,"y":149,"width":757,"height":12}},{"id":"68a22e3d-7f70-40c2-9990-a4e4de833f27","block_type":"box","text":"government at any time, and unforeseen risks could materialize due to foreign ownership in such","page_number":100,"box":{"x":116,"y":165,"width":724,"height":12}},{"id":"9fda0251-0c69-43a1-8e95-94357b9a3ce2","block_type":"box","text":"securities. In addition, the Capital Market Authority (“CMA”) places investment limitations on the","page_number":100,"box":{"x":116,"y":180,"width":715,"height":12}},{"id":"625011d6-746d-40ca-b903-213d521ff105","block_type":"box","text":"ownership of Saudi Arabian issuers by foreign investors, including a limitation on a Fund’s ownership","page_number":100,"box":{"x":116,"y":196,"width":753,"height":12}},{"id":"397b9565-f6b8-4b97-9c87-c1f37f302a79","block_type":"box","text":"of any single issuer listed on the Saudi Arabian Stock Exchange, which may prevent a Fund from","page_number":100,"box":{"x":116,"y":211,"width":726,"height":12}},{"id":"40cb0072-cff6-4b21-9878-0439d73735b3","block_type":"box","text":"investing in accordance with its strategy and contribute to tracking error against the Underlying Index.","page_number":100,"box":{"x":117,"y":227,"width":757,"height":12}},{"id":"e6b42a43-cb0c-4264-b395-c7a42944ba17","block_type":"box","text":"These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":100,"box":{"x":116,"y":242,"width":710,"height":12}},{"id":"c999fc58-e3ff-4cde-9dc7-659dd79cabb7","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain","page_number":100,"box":{"x":116,"y":258,"width":756,"height":12}},{"id":"caefe2dd-2834-47c1-9944-2a1e23d23cb4","block_type":"box","text":"or maintain any such licenses or approvals and may not be able to buy and sell securities at full value.","page_number":100,"box":{"x":116,"y":273,"width":763,"height":12}},{"id":"200b9074-c40b-4220-a81b-0d0a44b25bd5","block_type":"box","text":"Major disruptions or regulatory changes could occur in the Saudi Arabian market, any of which could","page_number":100,"box":{"x":117,"y":289,"width":750,"height":12}},{"id":"99d62e51-6350-488a-9062-6e9bbad6832e","block_type":"box","text":"negatively impact a Fund. These risks may be exacerbated, compared to more developed markets,","page_number":100,"box":{"x":117,"y":304,"width":741,"height":12}},{"id":"e8cb04ec-0933-4484-ad6b-0a165d3daeb0","block_type":"box","text":"given the limited history of foreign investment in the Saudi Arabian market. Investments in","page_number":100,"box":{"x":116,"y":320,"width":672,"height":12}},{"id":"cee9a9ac-9e55-4f78-97a8-4613a66824b8","block_type":"box","text":"Saudi Arabia may also be subject to loss due to expropriation or nationalization of assets and property","page_number":100,"box":{"x":116,"y":335,"width":764,"height":12}},{"id":"7e7f68e4-99d3-4a95-b1b9-1ea7c5245d82","block_type":"box","text":"or the imposition of restrictions on additional foreign investments and repatriation of capital. Such","page_number":100,"box":{"x":116,"y":351,"width":725,"height":12}},{"id":"23b496ff-58d0-4554-b0b7-f3d9100e6a57","block_type":"box","text":"heightened risks may include, among others, restrictions on and government intervention in","page_number":100,"box":{"x":117,"y":366,"width":683,"height":12}},{"id":"75d89816-d3fb-4359-90a3-64ea4a508cf8","block_type":"box","text":"international trade, confiscatory taxation, political instability, including authoritarian and/or military","page_number":100,"box":{"x":117,"y":382,"width":724,"height":12}},{"id":"995f61a5-a868-45ad-9dc7-b24db28a80d4","block_type":"box","text":"involvement in governmental decision making, armed conflict, crime and instability as a result of","page_number":100,"box":{"x":117,"y":397,"width":715,"height":12}},{"id":"8ea2f157-3bf2-401b-978b-d82d6ec42bef","block_type":"box","text":"religious, ethnic and/or socioeconomic unrest. Saudi Arabia has privatized, or has begun the process","page_number":100,"box":{"x":117,"y":413,"width":754,"height":12}},{"id":"f7d24224-69b1-4014-9174-3856f41da0ac","block_type":"box","text":"of privatizing, certain entities and industries. Newly privatized companies may face strong competition","page_number":100,"box":{"x":116,"y":428,"width":759,"height":12}},{"id":"f7d96f43-672a-4c96-8adc-1f35c2e5f7a4","block_type":"box","text":"from government-sponsored competitors that have not been privatized. In some instances, investors in","page_number":100,"box":{"x":116,"y":444,"width":768,"height":12}},{"id":"1dfee712-cc72-4792-9acc-d737c9766c7e","block_type":"box","text":"newly privatized entities have suffered losses due to the inability of the newly privatized entities to","page_number":100,"box":{"x":117,"y":459,"width":728,"height":12}},{"id":"9390d4e0-fc1c-4565-b650-9ccbf026d4cb","block_type":"box","text":"adjust quickly to a competitive environment or changing regulatory and legal standards or, in some","page_number":100,"box":{"x":116,"y":475,"width":737,"height":12}},{"id":"717dc0f3-cc76-4eea-9a39-982566f5db81","block_type":"box","text":"cases, due to re-nationalization of such privatized entities. There is no assurance that similar losses","page_number":100,"box":{"x":116,"y":490,"width":745,"height":12}},{"id":"664b59f1-17b8-45af-a870-dab6f4ab5aa5","block_type":"box","text":"will not recur. Further, under income tax laws imposed by the Department of Zakat and Income Tax,","page_number":100,"box":{"x":116,"y":506,"width":747,"height":12}},{"id":"195a6cb0-fdd4-4930-a385-d11c76e3b3e3","block_type":"box","text":"dividends paid by a Saudi Arabian company to foreign stockholders are generally subject to a 5%","page_number":100,"box":{"x":116,"y":521,"width":727,"height":12}},{"id":"18662083-080c-4e86-9d98-25b936af441f","block_type":"box","text":"withholding tax (different tax rates may apply pursuant to an applicable treaty). Saudi Arabia is highly","page_number":100,"box":{"x":116,"y":537,"width":754,"height":12}},{"id":"7972e909-f298-4155-b1a9-7bad2e624c3a","block_type":"box","text":"reliant on income from the sale of petroleum and trade with other countries involved in the sale of","page_number":100,"box":{"x":117,"y":552,"width":725,"height":12}},{"id":"7d7cccc0-b3f0-4ddf-b8b3-b5959047e2b6","block_type":"box","text":"petroleum, and its economy is therefore vulnerable to changes in foreign currency values and the","page_number":100,"box":{"x":117,"y":568,"width":726,"height":12}},{"id":"fc871648-8a3a-4a3f-91af-d703d3ded02c","block_type":"box","text":"market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":100,"box":{"x":117,"y":583,"width":741,"height":12}},{"id":"78a09d56-9c78-479f-9b1d-6dd16c2265fc","block_type":"box","text":"impacted.","page_number":100,"box":{"x":117,"y":599,"width":76,"height":12}},{"id":"bb5e95bf-4e70-4057-ab27-26513a908e8a","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial","page_number":100,"box":{"x":117,"y":630,"width":701,"height":12}},{"id":"baaf35b2-f180-47e0-b80d-be3b42335336","block_type":"box","text":"influence over many aspects of the private sector. Although liberalization in the wider economy is","page_number":100,"box":{"x":117,"y":645,"width":724,"height":12}},{"id":"1d6c30b7-bce4-40f2-937b-34d6acf5fc89","block_type":"box","text":"underway, in many areas it has lagged significantly: restrictions on foreign ownership persist, and the","page_number":100,"box":{"x":117,"y":661,"width":749,"height":12}},{"id":"d3d0edc6-803d-494c-be04-801d564bbcd3","block_type":"box","text":"government has an ownership stake in many key industries. The situation is exacerbated by the fact","page_number":100,"box":{"x":116,"y":676,"width":743,"height":12}},{"id":"6986b807-ccf0-4e4c-a23a-81862b85a9ca","block_type":"box","text":"that Saudi Arabia is governed by an absolute monarchy. Saudi Arabia has historically experienced","page_number":100,"box":{"x":116,"y":692,"width":729,"height":12}},{"id":"69ca4217-b89d-4fcf-a11d-9d9391e2c69d","block_type":"box","text":"strained relations with economic partners worldwide, including other countries in the Middle East due to","page_number":100,"box":{"x":116,"y":707,"width":766,"height":12}},{"id":"03863c48-528f-4d3b-ae97-3f0768c427a4","block_type":"box","text":"geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security, including","page_number":100,"box":{"x":116,"y":723,"width":737,"height":12}},{"id":"2ccb406d-c877-4c72-885b-31c61280b2ad","block_type":"box","text":"terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":100,"box":{"x":116,"y":738,"width":752,"height":12}},{"id":"31689723-2c54-4f34-b592-009b90aa9e4a","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions","page_number":100,"box":{"x":117,"y":754,"width":761,"height":12}},{"id":"d29fba14-14ca-4475-8e6b-4f49425bf7cf","block_type":"box","text":"in Saudi Arabia, which could affect private sector companies and a Fund, as well as the value of","page_number":100,"box":{"x":117,"y":769,"width":713,"height":12}},{"id":"fe20ef7c-c295-41dc-a013-c0aa79101a36","block_type":"box","text":"securities in a Fund’s portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian","page_number":100,"box":{"x":116,"y":785,"width":759,"height":12}},{"id":"07fc55ff-257c-4d78-b08b-cde397a77483","block_type":"box","text":"corporate entities, or even the threat of sanctions, may result in the decline of the value and liquidity of","page_number":100,"box":{"x":116,"y":800,"width":760,"height":12}},{"id":"d0fd196d-9a5b-4c8d-bbe5-d7535502e5b0","block_type":"box","text":"Saudi Arabian securities, a weakening of the Saudi riyal or other adverse consequences to the Saudi","page_number":100,"box":{"x":116,"y":816,"width":749,"height":12}},{"id":"ade23dff-a42a-4e12-830f-1da9e860a880","block_type":"box","text":"Arabian economy. In addition, Saudi Arabia’s economy relies heavily on cheap, foreign labor, and","page_number":100,"box":{"x":116,"y":831,"width":729,"height":12}},{"id":"d0f28695-a447-40fb-8b79-723a40286512","block_type":"box","text":"changes in the availability of this labor supply could have an adverse effect on the economy.","page_number":100,"box":{"x":116,"y":847,"width":690,"height":12}},{"id":"38279759-3ffb-4a93-be04-24c2ccef72b3","block_type":"box","text":"II-50","page_number":100,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d9b176f9-3538-4b74-af07-093b2a0f72bb","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":100,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"bc95804f-2e44-4ce3-857a-20492f26581e","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a","page_number":101,"box":{"x":116,"y":87,"width":730,"height":12}},{"id":"d6e39d2a-c413-40cd-99d6-db34ab9d70fc","block_type":"box","text":"result, securities markets in Saudi Arabia are subject to greater risks associated with market volatility,","page_number":101,"box":{"x":117,"y":102,"width":757,"height":13}},{"id":"dca6ebbd-276c-4f19-b35c-16a610364ebc","block_type":"box","text":"lower market capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations,","page_number":101,"box":{"x":117,"y":118,"width":705,"height":12}},{"id":"c427b931-61ff-44b5-b0ff-65e08615fa00","block_type":"box","text":"uncertainty regarding the existence of trading markets, governmental control and heavy regulation of","page_number":101,"box":{"x":117,"y":134,"width":751,"height":12}},{"id":"31c2bca8-6780-436d-9351-da6b6f618a2d","block_type":"box","text":"labor and industry. Shares of certain Saudi Arabian companies tend to trade less frequently than those","page_number":101,"box":{"x":117,"y":149,"width":766,"height":12}},{"id":"cbc14a6d-e508-43e7-b0df-b7a3de043190","block_type":"box","text":"of companies on exchanges in more developed markets. Such infrequent trading may adversely affect","page_number":101,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"3e7af76d-2bfa-4e81-9bb1-3a506ef9f791","block_type":"box","text":"the pricing of these securities and a Fund’s ability to sell these securities in the future. Current","page_number":101,"box":{"x":116,"y":180,"width":701,"height":12}},{"id":"e0c01f68-6e23-4d7f-ae90-4626742561be","block_type":"box","text":"regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":101,"box":{"x":117,"y":196,"width":733,"height":12}},{"id":"01624d03-a609-4d62-8c97-1570cccc75d9","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a","page_number":101,"box":{"x":116,"y":211,"width":767,"height":12}},{"id":"1b064aec-57d9-4651-9de2-19af72289968","block_type":"box","text":"Fund than is typically the case for investment managers.","page_number":101,"box":{"x":117,"y":227,"width":424,"height":12}},{"id":"5c3e07df-b8fe-495e-9ba2-8623643926d5","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically","page_number":101,"box":{"x":116,"y":258,"width":687,"height":12}},{"id":"8514a845-8314-496d-a032-4c5a7a3071df","block_type":"box","text":"experienced political instability, and there remains the possibility that the stability will not hold in the","page_number":101,"box":{"x":116,"y":273,"width":741,"height":12}},{"id":"e2f8083c-81ba-4f80-9c0f-cebb01c8efcc","block_type":"box","text":"future or that instability in the larger Middle East region could adversely impact the economy of Saudi","page_number":101,"box":{"x":116,"y":289,"width":755,"height":12}},{"id":"95f74683-628f-4cac-9ccf-06ec88b43e53","block_type":"box","text":"Arabia. Instability may be caused by military developments, government interventions in the","page_number":101,"box":{"x":116,"y":304,"width":686,"height":12}},{"id":"7352a12e-316d-42e7-ab9e-f951a227e52f","block_type":"box","text":"marketplace, terrorism, extremist attitudes, attempted social or political reforms, religious differences,","page_number":101,"box":{"x":117,"y":320,"width":755,"height":12}},{"id":"5018ad87-8f19-4f5e-9057-f394a79df768","block_type":"box","text":"or other factors. Additionally, anti-Western views held by certain groups in the Middle East may","page_number":101,"box":{"x":116,"y":335,"width":710,"height":12}},{"id":"36889d84-31c4-4c78-a271-2d53d386cb2b","block_type":"box","text":"influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":101,"box":{"x":117,"y":351,"width":740,"height":12}},{"id":"cb57d1ec-4c20-4274-8daf-f84e82d29c69","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S.","page_number":101,"box":{"x":116,"y":366,"width":768,"height":12}},{"id":"8fea424e-2436-4e1f-a269-5844c2fdccb1","block_type":"box","text":"is a significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi","page_number":101,"box":{"x":117,"y":382,"width":760,"height":12}},{"id":"e928b9fb-fad2-42bb-b19a-a53f4c2f699d","block_type":"box","text":"Arabia. As a result, economic conditions of Saudi Arabia may be particularly affected by changes in the","page_number":101,"box":{"x":116,"y":397,"width":771,"height":12}},{"id":"5ba825d2-40e2-4e22-b99c-53abe2925565","block_type":"box","text":"U.S. economy. A decrease in U.S. imports or exports, new trade and financial regulations or tariffs,","page_number":101,"box":{"x":117,"y":413,"width":738,"height":12}},{"id":"05f68535-14df-456b-ab88-eecb5be011f2","block_type":"box","text":"changes in the U.S. dollar exchange rate or an economic slowdown in the U.S. may have a material","page_number":101,"box":{"x":116,"y":428,"width":746,"height":12}},{"id":"c4b2eca1-69bc-4891-ae28-db8f3bf3ffaf","block_type":"box","text":"adverse effect on the economic conditions of Saudi Arabia and, as a result, securities to which the","page_number":101,"box":{"x":116,"y":444,"width":733,"height":11}},{"id":"693d0108-5aee-480f-a6a2-32cdf73e6974","block_type":"box","text":"Fund has exposure. Political instability in North Africa and the larger Middle East region has caused","page_number":101,"box":{"x":117,"y":459,"width":743,"height":12}},{"id":"3f8cf354-b176-4b64-aef4-3bb2ff827029","block_type":"box","text":"significant disruptions to many industries. Continued political and social unrest in these areas may","page_number":101,"box":{"x":116,"y":475,"width":732,"height":12}},{"id":"f928e76a-6fa5-4ac1-80b3-82a64ec8ce7b","block_type":"box","text":"negatively affect the value of securities in a Fund’s portfolio.","page_number":101,"box":{"x":117,"y":490,"width":449,"height":12}},{"id":"3eea2e64-592c-49f0-b405-446aac5b6c56","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to","page_number":101,"box":{"x":117,"y":521,"width":731,"height":12}},{"id":"318ca760-bbb4-44a2-9733-2fbb44ca4e1f","block_type":"box","text":"sanctions and/or embargoes imposed by the U.S. Government and the United Nations and/or countries","page_number":101,"box":{"x":116,"y":537,"width":772,"height":12}},{"id":"93cf3fb9-3ca8-4bd6-a480-5e7394a5f233","block_type":"box","text":"identified by the U.S. Government as state sponsors of terrorism. As a result, an issuer may sustain","page_number":101,"box":{"x":117,"y":552,"width":744,"height":12}},{"id":"5fbfdd23-e812-47e9-93ee-556c923f0917","block_type":"box","text":"damage to its reputation if it is identified as an issuer which operates in, or has dealings with, such","page_number":101,"box":{"x":116,"y":568,"width":734,"height":12}},{"id":"0cd70e65-7294-45a6-bb14-0cb757680aaa","block_type":"box","text":"countries. A Fund, as an investor in such issuers will be indirectly subject to those risks.","page_number":101,"box":{"x":116,"y":583,"width":655,"height":12}},{"id":"ce5afe9b-1965-43ac-88b7-3c0eb23fc232","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":101,"box":{"x":116,"y":614,"width":237,"height":12}},{"id":"232ba388-0e8f-4734-b1c2-36fa15d3c189","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory,","page_number":101,"box":{"x":354,"y":614,"width":493,"height":12}},{"id":"c4cf2ab4-9ba6-4c18-ba2a-183db6b0a74b","block_type":"box","text":"political, currency, security, expropriation and/or nationalization of assets and economic risk specific to","page_number":101,"box":{"x":117,"y":630,"width":764,"height":12}},{"id":"ea48e4de-4d1e-47d1-b2ba-eab60ade73c0","block_type":"box","text":"Venezuela. Venezuela is extremely well endowed with natural resources, including oil and natural gas,","page_number":101,"box":{"x":116,"y":645,"width":765,"height":12}},{"id":"d5c7d5ac-5c52-4a5d-b5d8-72686ee2d387","block_type":"box","text":"and its economy is heavily dependent on export of natural resources to key trading partners. Any act of","page_number":101,"box":{"x":116,"y":661,"width":766,"height":12}},{"id":"ab8dc87a-6cb9-4b47-8b9a-63552b99fa51","block_type":"box","text":"terrorism, an armed conflict or a breakdown of a key trading relationship that disrupts the production or","page_number":101,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"603ecbce-b5a5-4fb8-b2e0-3491d8c512bb","block_type":"box","text":"export of natural resources will likely negatively affect the Venezuelan economy. The government","page_number":101,"box":{"x":116,"y":692,"width":723,"height":12}},{"id":"ab02b591-9f57-4124-88c4-ba5677efb21f","block_type":"box","text":"continues to control key sectors of the economy, including upstream oil and gas production, and has","page_number":101,"box":{"x":116,"y":707,"width":744,"height":12}},{"id":"0cc47b66-eeca-4865-bbe8-e4675edf1c0e","block_type":"box","text":"sought to increase its role in key sectors, such as telecommunications and steel. Meanwhile,","page_number":101,"box":{"x":116,"y":723,"width":686,"height":12}},{"id":"c9dcfc3f-b680-4c56-9566-28857be233a3","block_type":"box","text":"ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":101,"box":{"x":116,"y":738,"width":747,"height":12}},{"id":"b96ee3ae-bf78-4b27-851c-3a2a5acf8ea3","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues","page_number":101,"box":{"x":116,"y":754,"width":741,"height":12}},{"id":"382fa9e6-61f1-4b5c-9e40-42287858893f","block_type":"box","text":"between the governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions,","page_number":101,"box":{"x":117,"y":769,"width":725,"height":12}},{"id":"792b4db4-8fb5-44fa-bb1a-c9a9ce5a147f","block_type":"box","text":"which consist of asset freezes and sectoral sanctions, on certain Venezuelan individuals and","page_number":101,"box":{"x":116,"y":785,"width":687,"height":11}},{"id":"d21e7dd4-ec16-4865-90c2-1748bbc0c544","block_type":"box","text":"Venezuelan corporate entities, and on the Venezuelan government. The U.S. could also institute","page_number":101,"box":{"x":116,"y":800,"width":717,"height":12}},{"id":"de680c13-894c-4ba5-9fc7-a2b7d5ac7f03","block_type":"box","text":"broader sanctions on Venezuela. The U.S. has also taken military action against Venezuela in an effort","page_number":101,"box":{"x":117,"y":816,"width":764,"height":12}},{"id":"a3849eb5-dc62-477e-a370-de698308a13a","block_type":"box","text":"to effect regime change. Military action, sanctions, or even the threat of further military action and","page_number":101,"box":{"x":116,"y":831,"width":727,"height":12}},{"id":"20c2bc61-3270-4a5e-901c-1e7752766398","block_type":"box","text":"sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a weakening of","page_number":101,"box":{"x":116,"y":847,"width":762,"height":12}},{"id":"81139c1e-1d37-437b-a825-28d8cf152672","block_type":"box","text":"the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":101,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"a878828b-73df-40fc-aad4-b8be868a68c2","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions","page_number":101,"box":{"x":116,"y":878,"width":732,"height":12}},{"id":"6b8c6c44-ffa7-43b1-8a09-f63d51615e61","block_type":"box","text":"II-51","page_number":101,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"97814515-ae02-4078-b694-ea3f38bfb75b","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":101,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"8055aef3-cf68-423c-8c2b-a0c64cb760b2","block_type":"box","text":"against Venezuela may in the future be imposed by the U.S. or other countries. These factors, among","page_number":102,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"414c6315-0e9e-4c2a-933b-29e277d9eed5","block_type":"box","text":"others, can have a negative impact on a Fund’s investments.","page_number":102,"box":{"x":116,"y":103,"width":457,"height":12}},{"id":"02f21a28-42d2-4e19-8a06-ca3262485a64","block_type":"box","text":"Brady Bonds.","page_number":102,"box":{"x":116,"y":135,"width":97,"height":12}},{"id":"6a75f0d7-bf36-45a3-9bda-be96bbc28653","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may","page_number":102,"box":{"x":215,"y":135,"width":661,"height":12}},{"id":"514480da-6139-48ac-95e3-42c4135034f4","block_type":"box","text":"include emerging market governmental debt obligati","page_number":102,"box":{"x":117,"y":151,"width":376,"height":11}},{"id":"7f57d07c-1490-43cf-9a11-f968efb0a724","block_type":"box","text":"ons commonly referred to as Brady Bonds. Brady","page_number":102,"box":{"x":494,"y":150,"width":364,"height":12}},{"id":"c71a6aac-12af-4486-ba78-7d360789876e","block_type":"box","text":"Bonds are securities created through the exchange of existing commercial bank loans to sovereign","page_number":102,"box":{"x":117,"y":166,"width":722,"height":12}},{"id":"e4af5467-9b91-431a-830a-816a8d508bd6","block_type":"box","text":"entities for new obligations in connection with debt","page_number":102,"box":{"x":116,"y":181,"width":365,"height":12}},{"id":"497b5222-dc4b-4df7-882c-e35eef785b08","block_type":"box","text":"t restructurings under a debt restructuring plan","page_number":102,"box":{"x":481,"y":182,"width":338,"height":11}},{"id":"f0315cb8-fc34-41f6-843e-f98f4dbaeb4b","block_type":"box","text":"introduced by former U.S. Secretary of the Treasury,","page_number":102,"box":{"x":117,"y":197,"width":380,"height":12}},{"id":"791820e1-1559-43af-a625-3eaf349d3c74","block_type":"box","text":"Nicholas F. Brady (the “Brady Plan”). Brady Plan","page_number":102,"box":{"x":498,"y":197,"width":364,"height":12}},{"id":"ad11c034-e122-4273-af27-9d8ea524521c","block_type":"box","text":"debt restructurings have been implemented in a number of","page_number":102,"box":{"x":116,"y":212,"width":427,"height":12}},{"id":"823e8470-cccc-4214-8069-649ee83906af","block_type":"box","text":"f countries, including: Argentina, Bolivia, Brazil,","page_number":102,"box":{"x":542,"y":213,"width":342,"height":11}},{"id":"d52a34be-dbbd-4b0b-94fc-8fbf6261aa60","block_type":"box","text":"Bulgaria, Costa Rica, the Dominican Republic, Ecuado","page_number":102,"box":{"x":117,"y":228,"width":396,"height":12}},{"id":"ec725d3d-d7f3-48d6-805a-4d4a25b2fab4","block_type":"box","text":"r, Jordan, Mexico, Niger, Nigeria, Panama, Peru,","page_number":102,"box":{"x":515,"y":228,"width":359,"height":12}},{"id":"55cb442f-5c62-4495-af0c-0349ac2b1521","block_type":"box","text":"the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early 2000s, certain","page_number":102,"box":{"x":116,"y":244,"width":707,"height":11}},{"id":"55e29a6f-2c1d-4c62-99c3-e43c78bca4ad","block_type":"box","text":"countries began retiring their Brady Bonds, includi","page_number":102,"box":{"x":116,"y":259,"width":361,"height":12}},{"id":"5c4d0c3e-e8e3-497b-9f35-f19cf597e0c1","block_type":"box","text":"ng Brazil, Colombia, Mexico, the Philippines, and","page_number":102,"box":{"x":480,"y":259,"width":360,"height":12}},{"id":"400ae99e-2dd4-40d2-a585-29c7e6f195f3","block_type":"box","text":"Venezuela.","page_number":102,"box":{"x":116,"y":275,"width":87,"height":9}},{"id":"0eac4ee9-c4fd-49ac-8808-b802b0d57305","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the","page_number":102,"box":{"x":117,"y":307,"width":758,"height":12}},{"id":"9e56588c-4da1-4666-88d7-f79bb7c8aa60","block_type":"box","text":"U.S. dollar) and are actively traded in the OTC secondary market. Brady Bonds are not considered to","page_number":102,"box":{"x":117,"y":322,"width":762,"height":12}},{"id":"f157065a-35bc-4c11-8400-5930efcbe8a6","block_type":"box","text":"be U.S. Government Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be","page_number":102,"box":{"x":117,"y":338,"width":754,"height":12}},{"id":"97c76e59-d5b6-4168-8669-94a9b6cc57a9","block_type":"box","text":"fixed rate par bonds or floating rate discount bonds, are generally collateralized in full as to principal","page_number":102,"box":{"x":116,"y":353,"width":751,"height":12}},{"id":"455e5eff-0c36-4c09-a4a0-4b584cc28463","block_type":"box","text":"by U.S. Treasury zero-coupon bonds having the same maturity as the Brady Bonds. Interest","page_number":102,"box":{"x":117,"y":369,"width":694,"height":12}},{"id":"9d51ddcb-1bf7-4257-945c-a1bcd5bff804","block_type":"box","text":"payments on these Brady Bonds generally are collateralized on a one-year or longer rolling-forward","page_number":102,"box":{"x":117,"y":384,"width":749,"height":12}},{"id":"ef253119-9f7a-4331-a8fd-957f72a58870","block_type":"box","text":"basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal to at least one","page_number":102,"box":{"x":117,"y":400,"width":753,"height":12}},{"id":"e7240930-50b9-47b8-a097-72cd16baf51c","block_type":"box","text":"year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":102,"box":{"x":116,"y":415,"width":754,"height":12}},{"id":"75b0eae5-a737-4377-a99c-56417a41534b","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals","page_number":102,"box":{"x":117,"y":431,"width":767,"height":12}},{"id":"f083f09a-168d-4df8-a05d-fad02b66f31d","block_type":"box","text":"thereafter. Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances,","page_number":102,"box":{"x":116,"y":446,"width":747,"height":12}},{"id":"a9ce64e5-d85a-4010-8075-07b8f8248c3d","block_type":"box","text":"which in effect constitute supplemental interest payments but generally are not collateralized. Brady","page_number":102,"box":{"x":116,"y":462,"width":751,"height":12}},{"id":"fcc4ba27-21a6-4168-9e28-c11471450762","block_type":"box","text":"Bonds are often viewed as having three or four valuation components: (i) the collateralized repayment","page_number":102,"box":{"x":117,"y":477,"width":767,"height":12}},{"id":"1a56e9b1-bba8-4a9b-a2cb-5efd11d836a8","block_type":"box","text":"of principal at final maturity; (ii) the collateralized interest payments; (iii) the uncollateralized interest","page_number":102,"box":{"x":116,"y":493,"width":749,"height":12}},{"id":"7b238cda-2c27-4a8e-92e7-44c208b4461a","block_type":"box","text":"payments; and (iv) any uncollateralized repayment of principal at maturity (the uncollateralized","page_number":102,"box":{"x":117,"y":508,"width":710,"height":12}},{"id":"0301a3f4-b37a-4c7f-abe2-0b0a533418f8","block_type":"box","text":"amounts constitute the “residual risk”).","page_number":102,"box":{"x":116,"y":524,"width":292,"height":12}},{"id":"58e159cc-fd7e-4631-8eaa-71da670b97e2","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign","page_number":102,"box":{"x":117,"y":556,"width":695,"height":12}},{"id":"28ce524c-d4e7-4c38-a242-088783e9f5dd","block_type":"box","text":"securities, including the history of defaults with respect to commercial bank loans by public and private","page_number":102,"box":{"x":116,"y":572,"width":765,"height":12}},{"id":"390d7975-f6bc-4c3a-9822-96443e16cb7d","block_type":"box","text":"entities of countries issuing Brady Bonds. In light of the residual risk of Brady Bonds and, among other","page_number":102,"box":{"x":116,"y":587,"width":764,"height":12}},{"id":"2abb4370-6cf0-4ebf-9596-bcf02b1b9d3e","block_type":"box","text":"factors, the history of defaults, investments in Brady Bonds are considered speculative. There can be","page_number":102,"box":{"x":116,"y":603,"width":756,"height":12}},{"id":"a4e59dd1-e8b0-4734-ab78-0a28c92227b3","block_type":"box","text":"no assurance that Brady Bonds in which the Funds may invest will not be subject to restructuring","page_number":102,"box":{"x":117,"y":618,"width":723,"height":12}},{"id":"a59209f3-14a8-4a6b-80ce-5ebe75d3dd91","block_type":"box","text":"arrangements or to requests for new credit, which may cause the Funds to suffer a loss of interest or","page_number":102,"box":{"x":116,"y":634,"width":752,"height":12}},{"id":"00ec038b-24be-4f9f-9197-c0ab2d33dba8","block_type":"box","text":"principal on any of its holdings.","page_number":102,"box":{"x":117,"y":649,"width":234,"height":12}},{"id":"66606cf3-46b9-47de-adb2-e10431c1ac27","block_type":"box","text":"China Investments Risk.","page_number":102,"box":{"x":117,"y":682,"width":178,"height":9}},{"id":"a493cc12-3bff-4237-8df1-61908baeb417","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the","page_number":102,"box":{"x":117,"y":705,"width":729,"height":13}},{"id":"07b123a7-05d3-492c-b9e4-b1fa96440149","block_type":"box","text":"“PRC”), including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and","page_number":102,"box":{"x":116,"y":721,"width":758,"height":12}},{"id":"afeb004d-f118-48e8-904a-c313e4981c64","block_type":"box","text":"special considerations not typically associated with investing in the U.S. securities markets. Such","page_number":102,"box":{"x":116,"y":736,"width":719,"height":13}},{"id":"332eeb32-5a08-4af9-a36e-b5cc11efe43a","block_type":"box","text":"heightened risks include, among others, an authoritarian government, popular unrest associated with","page_number":102,"box":{"x":117,"y":752,"width":747,"height":12}},{"id":"2ed080ac-45a6-4e60-ba34-4c9bf3f2fd57","block_type":"box","text":"demands for improved political, economic and social conditions, the impact of regional conflict on the","page_number":102,"box":{"x":116,"y":767,"width":748,"height":13}},{"id":"9eda3b68-34ef-4a4d-8c51-454b6ad57123","block_type":"box","text":"economy and hostile relations with other countries.","page_number":102,"box":{"x":116,"y":783,"width":376,"height":12}},{"id":"fd44531e-f711-4066-8d30-3c15da89b008","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could","page_number":102,"box":{"x":117,"y":815,"width":723,"height":12}},{"id":"2c82a9cc-ea18-4ec4-aae5-a35c48e95701","block_type":"box","text":"disrupt economic development. The Chinese economy is vulnerable to the long-running disagreements","page_number":102,"box":{"x":116,"y":831,"width":769,"height":12}},{"id":"bf61667c-4ddf-4182-ab44-d2b619e0a428","block_type":"box","text":"and religious and nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been","page_number":102,"box":{"x":116,"y":846,"width":758,"height":12}},{"id":"db142338-6a26-4de4-9292-5498149847fc","block_type":"box","text":"tensions between the Chinese government and many people in Hong Kong who perceive China as","page_number":102,"box":{"x":116,"y":862,"width":738,"height":12}},{"id":"c067722f-1529-4887-85f1-25d7887861cc","block_type":"box","text":"tightening control over Hong Kong’s semi-autonomous liberal political, economic, legal, and social","page_number":102,"box":{"x":116,"y":878,"width":731,"height":11}},{"id":"8439ca18-9990-49b0-9e4a-beb26b2ebf91","block_type":"box","text":"II-52","page_number":102,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"59160345-a0bb-480e-a551-15b74ab3bac7","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":102,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"84db95a8-739b-4305-95dd-3b48520d57c8","block_type":"box","text":"framework. Protests and unrest have increased tensions even further. Due to the interconnected","page_number":103,"box":{"x":116,"y":87,"width":721,"height":10}},{"id":"2353cb91-bb04-4e90-91a2-d5c0b2c2681b","block_type":"box","text":"nature of the Hong Kong and Chinese economies, this instability in Hong Kong may cause uncertainty","page_number":103,"box":{"x":117,"y":102,"width":761,"height":13}},{"id":"31f79aec-9a5d-43a1-a750-bb5725a0a2ba","block_type":"box","text":"in the Hong Kong and Chinese markets. China has a complex territorial dispute regarding the","page_number":103,"box":{"x":117,"y":118,"width":697,"height":12}},{"id":"05a75a63-25a2-4106-8094-830b7a075646","block_type":"box","text":"sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":103,"box":{"x":116,"y":134,"width":767,"height":12}},{"id":"76ea03d2-f0f9-42f6-bab3-d6ea88ddc053","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse","page_number":103,"box":{"x":116,"y":149,"width":772,"height":12}},{"id":"f1630cc4-46ec-4ab1-bce6-f134f54f7e56","block_type":"box","text":"impact on the value of the Fund’s investments in China or Taiwan, may cause a suspension in a","page_number":103,"box":{"x":117,"y":165,"width":717,"height":12}},{"id":"f25daf1e-0708-4a99-a9c7-4f21b6cdb076","block_type":"box","text":"Fund’s ability to trade in certain securities or other assets or may otherwise make such investments","page_number":103,"box":{"x":117,"y":180,"width":742,"height":12}},{"id":"8fb890b5-bbfa-488f-b87a-6ce6b513281f","block_type":"box","text":"impracticable or impossible. Any escalation of hostility between China and Taiwan would likely have a","page_number":103,"box":{"x":117,"y":196,"width":759,"height":12}},{"id":"fe148a7f-eb8a-4609-a071-9f79fe76adf8","block_type":"box","text":"significant adverse impact on the value of the Fund’s investments in both countries and the region. In","page_number":103,"box":{"x":116,"y":211,"width":755,"height":12}},{"id":"fbb207ed-45f1-43e7-87e7-de25a21b11b6","block_type":"box","text":"addition, China has strained international relations with Japan, India, the Philippines and other","page_number":103,"box":{"x":116,"y":227,"width":703,"height":11}},{"id":"fed5e248-6bc9-439b-95c2-d911d72706d1","block_type":"box","text":"neighbors due to territorial disputes, historical animosities and other defense concerns. Frictions","page_number":103,"box":{"x":117,"y":242,"width":717,"height":12}},{"id":"d997d5fd-0202-4d47-aa63-91b7b263e3af","block_type":"box","text":"between China and the Philippines in the South China Sea pose a risk of escalation potentially leading","page_number":103,"box":{"x":117,"y":258,"width":765,"height":12}},{"id":"7efab8f2-a0bd-4c1e-bac9-e4d77e378a0f","block_type":"box","text":"to military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks","page_number":103,"box":{"x":116,"y":273,"width":752,"height":12}},{"id":"e5aa33ec-8383-47f9-9c90-6b3ba2487b84","block_type":"box","text":"against foreign companies and foreign governments. Actual and threatened responses to such activity","page_number":103,"box":{"x":116,"y":289,"width":763,"height":12}},{"id":"8d54bb9d-133a-4d49-8c41-9be97c81f7ac","block_type":"box","text":"and strained international relations, including purchasing restrictions, sanctions, tariffs or cyberattacks","page_number":103,"box":{"x":116,"y":304,"width":760,"height":12}},{"id":"c1325579-bfdc-4004-af75-9a0861261736","block_type":"box","text":"on the Chinese government or Chinese companies, may impact China’s economy and Chinese issuers","page_number":103,"box":{"x":116,"y":320,"width":769,"height":12}},{"id":"6037cc08-8c62-421d-a3d6-8312155e4d82","block_type":"box","text":"of securities in which a Fund invests. China could be affected by military events on the Korean","page_number":103,"box":{"x":116,"y":335,"width":705,"height":12}},{"id":"1423a9b8-86c7-4843-8001-fffa0044721d","block_type":"box","text":"peninsula or internal instability within North Korea. These situations may cause uncertainty in the","page_number":103,"box":{"x":117,"y":351,"width":723,"height":12}},{"id":"1ba10c03-abff-4304-a0b4-6ec1104a06f7","block_type":"box","text":"Chinese market and may adversely affect the performance of the Chinese economy.","page_number":103,"box":{"x":117,"y":366,"width":631,"height":12}},{"id":"c7ba75c5-ed2e-4fd5-808d-ba3ae87986cd","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy,","page_number":103,"box":{"x":116,"y":393,"width":712,"height":12}},{"id":"63798af0-e500-4c22-a713-c9b1c3bb2dbc","block_type":"box","text":"promote foreign investment in the economy, reduce government control of the economy and develop","page_number":103,"box":{"x":117,"y":409,"width":752,"height":12}},{"id":"b89c95fc-3486-4d47-b0ed-db2215d3af6b","block_type":"box","text":"market mechanisms. However, the Chinese government still exercises substantial influence over many","page_number":103,"box":{"x":117,"y":424,"width":768,"height":12}},{"id":"f4fb9743-a12a-4191-8b47-3d904bab7f16","block_type":"box","text":"aspects of the private sector and may own or control many companies. Chinese companies, such as","page_number":103,"box":{"x":116,"y":440,"width":751,"height":12}},{"id":"435c9eba-cdce-412b-96fe-ceb75bc68eb3","block_type":"box","text":"those in the financial services or technology sectors, and potentially other sectors in the future, are","page_number":103,"box":{"x":116,"y":455,"width":736,"height":12}},{"id":"81337bdd-4188-4b8c-bf3a-7eda6906e16b","block_type":"box","text":"subject to the risk that Chinese authorities can intervene in their operations and structure. The Chinese","page_number":103,"box":{"x":116,"y":471,"width":769,"height":12}},{"id":"fbf0ccb2-b5f2-48e0-8c16-3b624190be3e","block_type":"box","text":"government continues to maintain a major role in economic policymaking and investing in China","page_number":103,"box":{"x":116,"y":486,"width":717,"height":12}},{"id":"ad7f1de5-b204-436d-b6a5-4b32c76da930","block_type":"box","text":"involves risk of loss due to expropriation, nationalization, confiscation of assets and property or the","page_number":103,"box":{"x":117,"y":502,"width":736,"height":12}},{"id":"d1519c74-a876-453b-9f4c-242a8fb2cf0a","block_type":"box","text":"imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":103,"box":{"x":117,"y":517,"width":647,"height":12}},{"id":"51dcb42e-6319-4eb0-bff6-7cf044a08a32","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of","page_number":103,"box":{"x":116,"y":544,"width":764,"height":12}},{"id":"25772d2a-1fe5-4f93-b32e-f4a386b8baaf","block_type":"box","text":"trading restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks.","page_number":103,"box":{"x":116,"y":560,"width":761,"height":12}},{"id":"6590c714-7a4d-4b2c-83fc-e151304be4c7","block_type":"box","text":"This may affect market price and liquidity of these stocks, and may have an unpredictable impact on","page_number":103,"box":{"x":116,"y":575,"width":748,"height":12}},{"id":"2addc629-7fdb-42e7-ba0a-a48daab90626","block_type":"box","text":"the investment activities of the Funds. Furthermore, such market interventions may have a negative","page_number":103,"box":{"x":116,"y":591,"width":745,"height":12}},{"id":"788ebbb8-f9e5-4230-82f1-61960fde65c5","block_type":"box","text":"impact on market sentiment which may in turn affect the performance of the securities markets and as","page_number":103,"box":{"x":117,"y":606,"width":762,"height":12}},{"id":"e9aba3ef-b03a-47b8-ba14-1b59322425a8","block_type":"box","text":"a result the performance of the Funds.","page_number":103,"box":{"x":116,"y":622,"width":290,"height":12}},{"id":"351f7687-98fb-4a19-abaa-e449959011b0","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of","page_number":103,"box":{"x":117,"y":649,"width":749,"height":12}},{"id":"2c13261c-3eab-48a9-9bee-98aaf39b9542","block_type":"box","text":"investors, brokers and other participants than in the United States. Accordingly, issuers of securities in","page_number":103,"box":{"x":117,"y":665,"width":757,"height":12}},{"id":"01592fb9-fa94-44b6-80fb-e09500fdc0fa","block_type":"box","text":"China, including Chinese companies that are listed on U.S. exchanges, are not subject to the same","page_number":103,"box":{"x":117,"y":680,"width":735,"height":12}},{"id":"9bae618a-b674-42ae-a7c2-d8f40403c479","block_type":"box","text":"degree of regulation as are U.S. issuers with respect to such matters as insider trading rules, tender","page_number":103,"box":{"x":116,"y":696,"width":742,"height":12}},{"id":"ea8e31e1-72ed-4cff-a7bb-2a29d7a86e97","block_type":"box","text":"offer regulation, accounting standards or auditor oversight, stockholder proxy requirements and the","page_number":103,"box":{"x":116,"y":711,"width":735,"height":12}},{"id":"52bfe64e-fb65-4e36-b729-2dbafa4feb2b","block_type":"box","text":"requirements mandating timely and accurate disclosure of information. Securities markets in China are","page_number":103,"box":{"x":117,"y":727,"width":761,"height":12}},{"id":"5415a0b0-bd5d-4028-915d-c80962622fb6","block_type":"box","text":"in the process of change and further development. This may lead to trading volatility, difficulty in the","page_number":103,"box":{"x":117,"y":742,"width":738,"height":12}},{"id":"bd4fd726-c483-4d08-a7dd-72dace4f94d1","block_type":"box","text":"settlement and recording of transactions and difficulty in interpreting and applying the relevant","page_number":103,"box":{"x":116,"y":758,"width":697,"height":12}},{"id":"b5b9de47-1fd2-4bab-9d4f-3a108973fd50","block_type":"box","text":"regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":103,"box":{"x":117,"y":773,"width":750,"height":12}},{"id":"f081f045-2d1a-468b-b985-a23cd57c7a1e","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In","page_number":103,"box":{"x":116,"y":789,"width":743,"height":12}},{"id":"367234c0-f587-4454-89f9-b355f95205cc","block_type":"box","text":"particular, there is a risk that a Fund may not be recognized as the owner of securities that are held on","page_number":103,"box":{"x":117,"y":804,"width":759,"height":12}},{"id":"80eccbc6-1d0d-41d6-828a-20f6a18b613e","block_type":"box","text":"behalf of the Fund by a sub-custodian.","page_number":103,"box":{"x":117,"y":820,"width":284,"height":12}},{"id":"11327f1b-c2f6-4e99-a8ea-617a55c0c047","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or","page_number":103,"box":{"x":116,"y":847,"width":707,"height":12}},{"id":"0d617af1-9659-45ab-b6d6-cde0f800e807","block_type":"box","text":"litigation against Chinese companies, and shareholders may have limited legal remedies. The Funds","page_number":103,"box":{"x":117,"y":862,"width":751,"height":12}},{"id":"18835fd6-e454-43a9-b702-34089cb091c9","block_type":"box","text":"do not select investments based on investor protection considerations.","page_number":103,"box":{"x":116,"y":878,"width":528,"height":12}},{"id":"338c0c90-fab5-4fee-88b5-a0ec7f1ef90b","block_type":"box","text":"II-53","page_number":103,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"cccbf81c-dbb2-4766-ae2f-c2b110a3a3f3","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":103,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"8b5fe8d9-af43-4e71-927d-ae5b693237e2","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company","page_number":104,"box":{"x":116,"y":87,"width":689,"height":12}},{"id":"52201cc5-8569-4c5b-8993-eaceb99f792c","block_type":"box","text":"Accounting Oversight Board (“PCAOB”) from inspecting the audit work and practices of accounting","page_number":104,"box":{"x":116,"y":102,"width":738,"height":13}},{"id":"09e5021a-7ebe-4bd6-8411-f2baafb995cb","block_type":"box","text":"firms in mainland China and Hong Kong for compliance with U.S. law and professional standards. On","page_number":104,"box":{"x":116,"y":118,"width":756,"height":12}},{"id":"7d7df852-bcc6-4cf2-95af-762f97086b57","block_type":"box","text":"August 26, 2022, the PCAOB signed a Statement of Protocol with the China Securities Regulatory","page_number":104,"box":{"x":116,"y":134,"width":734,"height":12}},{"id":"195e7a53-28c9-494b-96dd-1c725d6811b1","block_type":"box","text":"Commission and the Ministry of Finance of the PRC, which marked the first step toward opening","page_number":104,"box":{"x":117,"y":149,"width":719,"height":12}},{"id":"30ee81a7-b83d-41a5-8a67-2a1de7d1d90d","block_type":"box","text":"access for the PCAOB to inspect and investigate registered public accounting firms headquartered in","page_number":104,"box":{"x":116,"y":165,"width":755,"height":12}},{"id":"de0d9893-4b7b-438b-8f7f-46c84b3b68a2","block_type":"box","text":"mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":104,"box":{"x":117,"y":180,"width":672,"height":12}},{"id":"00ecd67f-4bce-4373-b4a0-fa9899bcf45e","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested.","page_number":104,"box":{"x":116,"y":196,"width":767,"height":12}},{"id":"c59cf69c-3d1f-474b-a7ee-fb234dac61e2","block_type":"box","text":"Audits performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be","page_number":104,"box":{"x":116,"y":211,"width":747,"height":12}},{"id":"82a19c36-39af-40fe-ab27-5166b076ea9d","block_type":"box","text":"less reliable than those performed by firms subject to PCAOB inspection. Accordingly, information","page_number":104,"box":{"x":117,"y":227,"width":730,"height":12}},{"id":"1b230401-9609-45e5-a7a9-72426fae7959","block_type":"box","text":"about the Chinese securities in which the Funds invest may be less reliable or complete. Under","page_number":104,"box":{"x":116,"y":242,"width":712,"height":12}},{"id":"bf572038-09ab-49d1-881d-77c01fd31303","block_type":"box","text":"amendments to the Sarbanes-Oxley Act enacted in December 2020, which requires that the PCAOB","page_number":104,"box":{"x":116,"y":258,"width":752,"height":12}},{"id":"54a9d60b-ee52-470e-a63f-0d3b81dbb3e1","block_type":"box","text":"be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer, Chinese companies with","page_number":104,"box":{"x":117,"y":273,"width":743,"height":12}},{"id":"492bddd3-3d68-4482-a5a3-3db5ed616458","block_type":"box","text":"securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the accounting","page_number":104,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"3906d864-8266-4ce6-8e85-b0f7e4289ecc","block_type":"box","text":"firm.","page_number":104,"box":{"x":116,"y":304,"width":37,"height":9}},{"id":"f20fdebd-72d1-4d45-972e-74bb3723e979","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange","page_number":104,"box":{"x":116,"y":335,"width":763,"height":12}},{"id":"c3fd5769-7d65-464c-b45f-9f8420b47cd0","block_type":"box","text":"control policies and repatriation restrictions imposed by the Chinese government. The imposition of","page_number":104,"box":{"x":116,"y":351,"width":740,"height":12}},{"id":"172cc918-e4ce-494d-86ac-7309d37de23d","block_type":"box","text":"currency controls may negatively impact performance and liquidity of the Funds as capital may become","page_number":104,"box":{"x":116,"y":366,"width":772,"height":12}},{"id":"a363ed70-e206-4d4e-8529-1059365c5ef9","block_type":"box","text":"trapped in the PRC. The Funds could be adversely affected by delays in, or a refusal to grant, any","page_number":104,"box":{"x":116,"y":382,"width":732,"height":12}},{"id":"c2081371-3a24-46df-9f94-6805a3d6e476","block_type":"box","text":"required governmental approval for repatriation of capital, as well as by the application to the Funds of","page_number":104,"box":{"x":117,"y":397,"width":762,"height":12}},{"id":"8425888d-5d93-4e9d-9376-544984f94f57","block_type":"box","text":"any restrictions on investments. 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The U.S. also bans imports of goods produced in certain","page_number":105,"box":{"x":116,"y":380,"width":755,"height":12}},{"id":"f2c30a56-e2e3-4ae0-8f83-0772566aac41","block_type":"box","text":"regions of China or by certain Chinese companies due to concerns about forced labor. Such","page_number":105,"box":{"x":117,"y":395,"width":688,"height":12}},{"id":"ca7c997b-936e-4531-9547-88c695e76bf6","block_type":"box","text":"restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any","page_number":105,"box":{"x":117,"y":411,"width":767,"height":12}},{"id":"ffb55b70-19cd-4198-9906-dc067617c77d","block_type":"box","text":"action that targets Chinese financial markets or securities exchanges could interfere with orderly","page_number":105,"box":{"x":116,"y":426,"width":719,"height":12}},{"id":"abd96e5b-6781-4d33-b832-aeb3ceba3f86","block_type":"box","text":"trading, delay settlement or cause market disruptions. Certain companies may be subject to economic","page_number":105,"box":{"x":116,"y":442,"width":762,"height":12}},{"id":"64b4f628-e667-4754-8ff1-9dfc23c5a777","block_type":"box","text":"or trade restrictions (but not investment restrictions) imposed by the U.S. or other governments due to","page_number":105,"box":{"x":116,"y":457,"width":761,"height":12}},{"id":"82e9020f-cfda-46e8-bf9a-d60915ef6a1d","block_type":"box","text":"national security, human rights or other concerns of such government. 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The interpretation, applicability and enforcement","page_number":105,"box":{"x":487,"y":533,"width":386,"height":12}},{"id":"dcf93210-86db-4802-a73f-3fe8f9f5be82","block_type":"box","text":"of such laws by PRC tax authorities are not as c","page_number":105,"box":{"x":116,"y":549,"width":341,"height":12}},{"id":"13228af5-9e5c-4d33-bf2d-fc917de3e098","block_type":"box","text":"onsistent and transparent as those of more developed","page_number":105,"box":{"x":458,"y":549,"width":389,"height":12}},{"id":"65e15ec1-be8e-418a-88c9-dd13a5e7c6e7","block_type":"box","text":"nations, and may vary over time and from region to","page_number":105,"box":{"x":117,"y":564,"width":362,"height":12}},{"id":"f3f173b4-b5f1-48a1-890c-955aa6fedd99","block_type":"box","text":"region. The application and enforcement of PRC tax","page_number":105,"box":{"x":479,"y":564,"width":380,"height":12}},{"id":"be6c39a1-25ff-430b-a062-1a4bf0071550","block_type":"box","text":"rules could have a significant adverse effect on a Fund and","page_number":105,"box":{"x":117,"y":580,"width":423,"height":12}},{"id":"42c120e7-2725-41de-852c-88eba6c39d6b","block_type":"box","text":"its investors, particularly in relation to capital","page_number":105,"box":{"x":541,"y":580,"width":316,"height":12}},{"id":"4e73de94-4fbb-4a1a-a5ca-232aeb0f4fab","block_type":"box","text":"gains withholding tax imposed upon non-residents. In","page_number":105,"box":{"x":116,"y":595,"width":383,"height":12}},{"id":"afa728b2-a63f-481c-bf15-614e0dd9d333","block_type":"box","text":"addition, the accounting, auditing and financial","page_number":105,"box":{"x":500,"y":595,"width":333,"height":12}},{"id":"112a0ffe-ce95-4aa2-af17-dde7058c2190","block_type":"box","text":"reporting standards and practices applicable to Chinese companies may be less rigorous, and may result in","page_number":105,"box":{"x":117,"y":611,"width":767,"height":12}},{"id":"12614f3c-580e-4fb7-be66-a00d3c93d086","block_type":"box","text":"significant differences between financial stat","page_number":105,"box":{"x":116,"y":626,"width":313,"height":12}},{"id":"1bb56ddf-d117-43e8-b3d1-7c6729d425b8","block_type":"box","text":"ements prepared in accordance with PRC accounting","page_number":105,"box":{"x":429,"y":626,"width":385,"height":12}},{"id":"44c884b3-9a75-49df-9685-f52d8f8641e4","block_type":"box","text":"standards and practice and those prepared in acco","page_number":105,"box":{"x":116,"y":642,"width":362,"height":12}},{"id":"e3ac276e-6550-47d5-91ce-cd0471117a8d","block_type":"box","text":"rdance with international accounting standards.","page_number":105,"box":{"x":479,"y":642,"width":340,"height":12}},{"id":"16f465bf-7387-47ac-9543-724e25935ae3","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the","page_number":105,"box":{"x":117,"y":671,"width":762,"height":12}},{"id":"8a139a10-ce64-469c-a532-2cd325950b6d","block_type":"box","text":"country may be subject to other public health threats, infectious illnesses, diseases or similar issues in","page_number":105,"box":{"x":116,"y":686,"width":757,"height":13}},{"id":"33a93282-a68b-4002-836b-70929aab9b53","block_type":"box","text":"the future. Any spread of an infectious illness, public health threat or similar issue could reduce","page_number":105,"box":{"x":116,"y":702,"width":704,"height":12}},{"id":"974d8073-5e56-4497-9206-617f4595f597","block_type":"box","text":"consumer demand or economic output, result in market closures, travel restrictions or quarantines, and","page_number":105,"box":{"x":116,"y":718,"width":764,"height":11}},{"id":"f229efe1-ba64-4660-b05e-08c4db424603","block_type":"box","text":"generally have a significant impact on the Chinese economy, which in turn could adversely affect a","page_number":105,"box":{"x":116,"y":733,"width":732,"height":12}},{"id":"e7bda4b0-8e42-47c6-a8a2-d5ddc5974f33","block_type":"box","text":"Fund’s investments.","page_number":105,"box":{"x":117,"y":749,"width":147,"height":9}},{"id":"255cc7c4-f417-4917-9d9f-55c068e1420f","block_type":"box","text":"Risk of Investing through Stock Connect","page_number":105,"box":{"x":116,"y":778,"width":300,"height":12}},{"id":"850c50e7-3357-484a-853a-eb805b33a17a","block_type":"box","text":".","page_number":105,"box":{"x":417,"y":786,"width":1,"height":1}},{"id":"50086e97-2070-487b-8281-9a7198644222","block_type":"box","text":"General.","page_number":105,"box":{"x":117,"y":800,"width":62,"height":10}},{"id":"96d2d15d-33ac-41c0-8af7-17825eec896f","block_type":"box","text":"China A-shares are equity securities of companies domiciled in China that trade on Chinese","page_number":105,"box":{"x":186,"y":800,"width":681,"height":12}},{"id":"ce14a8e0-57e2-4ddd-bab8-991a5a8a532f","block_type":"box","text":"stock exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange","page_number":105,"box":{"x":116,"y":816,"width":718,"height":12}},{"id":"50b76780-2915-4474-870f-5800f3fb08a2","block_type":"box","text":"(“SZSE”) and the Beijing Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the","page_number":105,"box":{"x":117,"y":831,"width":761,"height":12}},{"id":"1540c4b1-9780-4363-825b-463d7f535d5b","block_type":"box","text":"SSE and SZSE is not permitted, other than pursuant to available exceptions, such as through a","page_number":105,"box":{"x":116,"y":847,"width":713,"height":12}},{"id":"73a60937-1e7c-479a-ab84-512b626507a8","block_type":"box","text":"qualified foreign investor approved pursuant to the relevant mainland China laws and regulations as","page_number":105,"box":{"x":116,"y":862,"width":745,"height":12}},{"id":"9ee3d6d0-c719-42b1-bf4b-3792adfe30d3","block_type":"box","text":"may be promulgated and/or amended from time to time (“QFI”).","page_number":105,"box":{"x":117,"y":878,"width":474,"height":12}},{"id":"a014ae68-e2cf-4d8b-bb93-1b9e5a41b3e7","block_type":"box","text":"II-55","page_number":105,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"7eb4050c-295b-48ac-aab9-0acb9ca03a93","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":105,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"3bbfd2b2-3e48-4b8c-8665-d7b74f894578","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE","page_number":106,"box":{"x":117,"y":87,"width":728,"height":12}},{"id":"12869d50-8972-4db2-8a68-9b15689e2035","block_type":"box","text":"(“Stock Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect","page_number":106,"box":{"x":117,"y":102,"width":711,"height":13}},{"id":"1ca8954a-e5b6-4f88-810a-2f78cde89da7","block_type":"box","text":"program or the Shenzhen-Hong Kong Stock Connect program, as applicable (each, a “Stock Connect”","page_number":106,"box":{"x":117,"y":118,"width":764,"height":12}},{"id":"bb705a41-cefd-40d7-bdf7-512d7dd87d8e","block_type":"box","text":"and collectively, “Stock Connects”). Each Stock Connect is a securities trading and clearing links","page_number":106,"box":{"x":116,"y":134,"width":722,"height":12}},{"id":"27dc43ac-053b-4126-b32c-a56b7088aab5","block_type":"box","text":"program established by The Stock Exchange of Hong Kong Limited (“SEHK”), the Hong Kong","page_number":106,"box":{"x":117,"y":149,"width":699,"height":12}},{"id":"2089395f-8ddc-4352-b26a-75050f3f36ad","block_type":"box","text":"Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable, and China","page_number":106,"box":{"x":116,"y":165,"width":700,"height":12}},{"id":"49846602-326b-4008-ae9c-f143254a97a6","block_type":"box","text":"Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":106,"box":{"x":116,"y":180,"width":753,"height":12}},{"id":"69dfd9f4-c0b4-4344-8715-b006639c5216","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on","page_number":106,"box":{"x":117,"y":196,"width":761,"height":12}},{"id":"cc3f0e59-5b3c-46a1-a73b-caf08709439f","block_type":"box","text":"each market through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock","page_number":106,"box":{"x":116,"y":211,"width":746,"height":12}},{"id":"f28d7f6d-1189-4c44-b007-30a2a7a053e3","block_type":"box","text":"Connect Securities listed on the SSE or SZSE, as applicable, would be effectuated through its Hong","page_number":106,"box":{"x":117,"y":227,"width":747,"height":12}},{"id":"4989cb87-8f1d-4240-a680-fcf9e3fc8bba","block_type":"box","text":"Kong broker and a securities trading service company established by SEHK.","page_number":106,"box":{"x":117,"y":242,"width":572,"height":12}},{"id":"0d5276dc-3166-4600-a6d2-9ab5325f56c0","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock","page_number":106,"box":{"x":116,"y":273,"width":703,"height":12}},{"id":"02b542b8-61cf-478e-82c5-9f0f07aaa020","block_type":"box","text":"Connect, trading through a Stock Connect’s Northbound Trading Link is subject to daily investment","page_number":106,"box":{"x":117,"y":289,"width":738,"height":12}},{"id":"ed487cf7-dbc6-4f3a-82c5-31068274d7a5","block_type":"box","text":"quota limitations which require that buy orders for Stock Connect Securities be rejected once the daily","page_number":106,"box":{"x":116,"y":304,"width":761,"height":12}},{"id":"a4087949-9a35-42ed-9186-59acc61772c9","block_type":"box","text":"quota is exceeded (although a Fund will be permitted to sell their Stock Connect Securities regardless","page_number":106,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"7ade7776-5661-41c2-9e01-1e0499023f2a","block_type":"box","text":"of the quota). These limitations may restrict a Fund from investing in Stock Connect Securities on a","page_number":106,"box":{"x":116,"y":335,"width":741,"height":12}},{"id":"62b521c3-5efc-4069-8551-4a66ff98197f","block_type":"box","text":"timely basis, which could affect the Fund’s ability to effectively pursue its investment strategy.","page_number":106,"box":{"x":116,"y":351,"width":698,"height":12}},{"id":"5df753bb-92f1-43b0-901e-2f4285c36437","block_type":"box","text":"Investment quotas are also subject to change. Investment in Stock Connect Securities through a Stock","page_number":106,"box":{"x":117,"y":366,"width":767,"height":12}},{"id":"842db071-b6e8-49fb-a0a1-868dd4848000","block_type":"box","text":"Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund.","page_number":106,"box":{"x":117,"y":382,"width":741,"height":12}},{"id":"740ce714-b3ee-441b-8d0e-b980e962cf19","block_type":"box","text":"Stock Connect Securities purchased through Stock Connects generally may not be sold or otherwise","page_number":106,"box":{"x":116,"y":397,"width":753,"height":12}},{"id":"14a847ed-6bc6-496d-81c9-fef0491b3f34","block_type":"box","text":"transferred other than through Stock Connects in accordance with applicable rules. For example, the","page_number":106,"box":{"x":116,"y":413,"width":752,"height":12}},{"id":"445b1c97-5d43-461c-ae45-029fc0d5f3ad","block_type":"box","text":"PRC regulations require that in order for an investor to sell any Stock Connect Securities on a certain","page_number":106,"box":{"x":117,"y":428,"width":755,"height":12}},{"id":"849c6378-1efb-4ef9-bf2f-bf4a0c51efca","block_type":"box","text":"trading day, there must be sufficient Stock Connect Securities in the investor’s account before the","page_number":106,"box":{"x":116,"y":444,"width":730,"height":12}},{"id":"cadbe2e6-9895-4d59-be52-33b5b60ab923","block_type":"box","text":"market opens on that day. If there are insufficient Stock Connect Securities in the investor’s account,","page_number":106,"box":{"x":117,"y":459,"width":751,"height":12}},{"id":"3cf02e5d-cff9-4e3e-bc68-35694962f015","block_type":"box","text":"the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries out pre-trade checking","page_number":106,"box":{"x":116,"y":475,"width":765,"height":12}},{"id":"4d87951e-39bd-49c1-81e3-3f9a8f0c5809","block_type":"box","text":"on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market (“SZSE","page_number":106,"box":{"x":116,"y":490,"width":746,"height":12}},{"id":"5e3569df-0616-4ad7-a0ee-a9e3d304e23e","block_type":"box","text":"Securities”) of its participants (i.e., stock brokers) to ensure that this requirement is satisfied. While","page_number":106,"box":{"x":116,"y":506,"width":736,"height":12}},{"id":"86bd9f1f-1f13-4f7e-a69e-eac0f1afd55f","block_type":"box","text":"shares must be designated as eligible to be traded under a Stock Connect, those shares may also lose","page_number":106,"box":{"x":116,"y":521,"width":770,"height":12}},{"id":"7b2d74fa-095a-4f17-9b37-6b4ffe6326b1","block_type":"box","text":"such designation, and if this occurs, such shares may be sold but cannot be purchased through a","page_number":106,"box":{"x":116,"y":537,"width":728,"height":12}},{"id":"0498cead-823e-438a-a7d7-61f14be57cdd","block_type":"box","text":"Stock Connect. In addition, Stock Connects will only operate on days when both the Chinese and Hong","page_number":106,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"f30fd7e9-9732-44be-b1d2-993de5d6e020","block_type":"box","text":"Kong markets are open for trading, and banking services are available in both markets on the","page_number":106,"box":{"x":117,"y":568,"width":698,"height":12}},{"id":"74b047d6-6264-45e3-aa7c-45685e44c6ed","block_type":"box","text":"corresponding settlement days. Therefore, an investment in Stock Connect Securities through a Stock","page_number":106,"box":{"x":116,"y":583,"width":763,"height":12}},{"id":"edd5e47a-2e8c-41ea-9aad-899c450a6346","block_type":"box","text":"Connect may subject a Fund to a risk of price fluctuations on days when the Chinese market is open,","page_number":106,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"733e054c-62e0-4e0c-8e0e-1ced698745c8","block_type":"box","text":"but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on the Stock","page_number":106,"box":{"x":117,"y":614,"width":745,"height":12}},{"id":"2ad648df-9928-4227-a2e3-b71f985114f0","block_type":"box","text":"Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will","page_number":106,"box":{"x":117,"y":630,"width":746,"height":12}},{"id":"a60f3953-0c1d-4431-b2dd-5d683199b2b1","block_type":"box","text":"only be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock","page_number":106,"box":{"x":116,"y":645,"width":763,"height":12}},{"id":"fcf3d9e1-0a1b-4c42-a546-27f0b7cbe8c1","block_type":"box","text":"Connect Securities must be settled in RMB, investors must have timely access to a reliable supply of","page_number":106,"box":{"x":117,"y":661,"width":748,"height":12}},{"id":"abb84b11-8472-449c-b2dc-4ffab3cdd715","block_type":"box","text":"offshore RMB, which cannot be guaranteed. There is also no assurance that RMB will not be subject to","page_number":106,"box":{"x":116,"y":676,"width":765,"height":12}},{"id":"ac8af266-d153-45a1-8d07-e93f0af61550","block_type":"box","text":"devaluation. Any devaluation of RMB could adversely affect a Fund’s investments. If a Fund holds a","page_number":106,"box":{"x":116,"y":692,"width":741,"height":12}},{"id":"73066ddf-5a49-4171-bb1b-5257d8b1b083","block_type":"box","text":"class of shares denominated in a local currency other than RMB, the Fund will be exposed to currency","page_number":106,"box":{"x":116,"y":707,"width":760,"height":12}},{"id":"017524ed-7baf-4771-bb00-e8dc087a8f08","block_type":"box","text":"exchange risk if the Fund converts the local currency into RMB for investments in Stock Connect","page_number":106,"box":{"x":116,"y":723,"width":717,"height":12}},{"id":"ea5d4ba7-f09f-4b35-8fb6-6676ecce2143","block_type":"box","text":"Securities. A Fund may also incur conversion costs.","page_number":106,"box":{"x":116,"y":738,"width":384,"height":12}},{"id":"1521b929-3796-4b68-b3eb-4ba0581541ca","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held","page_number":106,"box":{"x":116,"y":769,"width":716,"height":12}},{"id":"6f77163e-86f9-4a33-9590-5bc3c61e2b57","block_type":"box","text":"through HKSCC as nominee on behalf of investors. The precise nature and rights of a Fund as the","page_number":106,"box":{"x":116,"y":785,"width":731,"height":12}},{"id":"3aa556c9-2af9-4511-be54-8d1b289858f4","block_type":"box","text":"beneficial owner of the SSE Securities or SZSE Securities through HKSCC as nominee is not well","page_number":106,"box":{"x":117,"y":800,"width":725,"height":12}},{"id":"28c71870-bc52-4bf7-b2ae-1949f197c46c","block_type":"box","text":"defined under the PRC laws. There is a lack of a clear definition of, and distinction between, legal","page_number":106,"box":{"x":116,"y":816,"width":722,"height":12}},{"id":"9abcaac6-4139-4d4b-ba8f-89a9d3460688","block_type":"box","text":"ownership and beneficial ownership under the PRC laws and there have been few cases involving a","page_number":106,"box":{"x":116,"y":831,"width":748,"height":12}},{"id":"9d538e2b-4236-4485-87b4-c48dc3e8e105","block_type":"box","text":"nominee account structure in the PRC courts. The exact nature and methods of enforcement of the","page_number":106,"box":{"x":117,"y":847,"width":740,"height":9}},{"id":"40703d5a-1051-4faa-b2cc-287a4756cf23","block_type":"box","text":"rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that HKSCC","page_number":106,"box":{"x":117,"y":862,"width":757,"height":12}},{"id":"962be1a6-a11f-41cb-93b4-5b37e5de22da","block_type":"box","text":"becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or","page_number":106,"box":{"x":117,"y":878,"width":743,"height":12}},{"id":"3d434a3d-7933-487c-9e9e-aa3511bce56c","block_type":"box","text":"II-56","page_number":106,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4c8158f5-1ad8-4076-8805-019a69c3c905","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":106,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"9971838d-5c68-496a-aa89-bd75dd05eeb2","block_type":"box","text":"SZSE Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the","page_number":107,"box":{"x":116,"y":87,"width":754,"height":12}},{"id":"d5e2a52f-4fbc-45d2-ad84-71dd63befb4e","block_type":"box","text":"general assets of HKSCC available for general distribution to its creditors. Notwithstanding the fact that","page_number":107,"box":{"x":116,"y":102,"width":770,"height":13}},{"id":"410125e9-9ea9-49d4-b0ee-1bcd9eb6c529","block_type":"box","text":"HKSCC does not claim proprietary interests in the SSE Securities or SZSE Securities held in its","page_number":107,"box":{"x":117,"y":118,"width":714,"height":12}},{"id":"c55f18f4-431d-463a-9c32-69e6a31241f2","block_type":"box","text":"omnibus stock account in the CSDCC, the CSDCC as the share registrar for SSE- or SZSE-listed","page_number":107,"box":{"x":116,"y":134,"width":729,"height":12}},{"id":"56fa9d5f-7ab2-4592-944a-c34ff8ec2b01","block_type":"box","text":"companies will still treat HKSCC as one of the shareholders when it handles corporate actions in","page_number":107,"box":{"x":116,"y":149,"width":722,"height":12}},{"id":"8d45fd6d-6c44-44af-90d2-b51393225c00","block_type":"box","text":"respect of such SSE Securities or SZSE Securities. HKSCC monitors the corporate actions affecting","page_number":107,"box":{"x":117,"y":165,"width":749,"height":12}},{"id":"9e0a7026-d43f-48f1-866b-9c08113c514d","block_type":"box","text":"SSE Securities and SZSE Securities and keeps participants of Central Clearing and Settlement","page_number":107,"box":{"x":116,"y":180,"width":712,"height":12}},{"id":"91cbc638-272f-4020-9bce-2a3faab470de","block_type":"box","text":"System (“CCASS”) informed of all such corporate actions that require CCASS participants to take","page_number":107,"box":{"x":116,"y":196,"width":729,"height":12}},{"id":"98df6d0e-41c5-4f13-877a-841b47890f47","block_type":"box","text":"steps in order to participate in them. Investors may only exercise their voting rights by providing their","page_number":107,"box":{"x":116,"y":211,"width":750,"height":12}},{"id":"0204253e-b523-421c-aae7-93300c2a1078","block_type":"box","text":"voting instructions to HKSCC through participants of CCASS. All voting instructions from CCASS","page_number":107,"box":{"x":116,"y":227,"width":724,"height":12}},{"id":"305d7a66-4262-4f6e-909b-034f9da79dc9","block_type":"box","text":"participants will be consolidated by HKSCC, who will then submit a combined single voting instruction","page_number":107,"box":{"x":117,"y":242,"width":757,"height":12}},{"id":"b83d7829-eba5-4697-adbf-a516ab693c1b","block_type":"box","text":"to the relevant SSE- or SZSE-listed company. As a result, a Fund may suffer difficulties or delays in","page_number":107,"box":{"x":116,"y":258,"width":745,"height":12}},{"id":"6924d201-7c3a-4640-a497-c8c9c04d3fc8","block_type":"box","text":"enforcing its rights in SSE Securities or SZSE Securities.","page_number":107,"box":{"x":116,"y":273,"width":427,"height":12}},{"id":"71fcf788-e6fb-40dd-afb7-05c243092cda","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any","page_number":107,"box":{"x":117,"y":304,"width":728,"height":12}},{"id":"eb605fff-8c38-4829-8d8c-93abe2907353","block_type":"box","text":"nationality who suffer pecuniary losses as a result of default of a licensed intermediary or authorized","page_number":107,"box":{"x":117,"y":320,"width":747,"height":12}},{"id":"5427f32c-6723-4362-9500-22aed6394149","block_type":"box","text":"financial institution in relation to exchange-traded products in Hong Kong. For defaults occurring on or","page_number":107,"box":{"x":116,"y":335,"width":760,"height":12}},{"id":"8fa69797-1aaf-443a-b125-7ed46c673d18","block_type":"box","text":"after January 1, 2020, Hong Kong’s Investor Compensation Fund covers investors’ losses in relation to","page_number":107,"box":{"x":116,"y":351,"width":769,"height":12}},{"id":"956edb20-eca6-4c78-abad-4c5b00555233","block_type":"box","text":"securities (i) that are traded on the SSE or the SZSE and (ii) in respect of which an order for sale or","page_number":107,"box":{"x":116,"y":366,"width":743,"height":12}},{"id":"0f59c3b4-f2da-497d-9f84-8743fb4271b0","block_type":"box","text":"purchase is permitted to be routed through the Northbound Trading Link of a Stock Connect. On the","page_number":107,"box":{"x":117,"y":382,"width":746,"height":12}},{"id":"ab025998-bd2d-4a18-aa3f-e95cc6f1c6c1","block_type":"box","text":"other hand, since a Fund carries out Northbound trading through securities brokers in Hong Kong but","page_number":107,"box":{"x":116,"y":397,"width":756,"height":12}},{"id":"1d1f4387-c629-4d65-a99e-96fce65a1334","block_type":"box","text":"not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the PRC.","page_number":107,"box":{"x":117,"y":413,"width":722,"height":12}},{"id":"1fce4ecc-cc48-4b48-b2b9-93c39ed16603","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information","page_number":107,"box":{"x":117,"y":444,"width":737,"height":12}},{"id":"eb95ab7b-9b35-4635-bf99-8a6e7977e5a6","block_type":"box","text":"technology capability, risk management and other requirements as may be specified by the relevant","page_number":107,"box":{"x":116,"y":459,"width":746,"height":12}},{"id":"03e72281-8846-43c8-9ae2-4148717b6fe6","block_type":"box","text":"exchange and/or clearing house. Further, the “connectivity” in Stock Connects requires routing of","page_number":107,"box":{"x":116,"y":475,"width":725,"height":12}},{"id":"7afafb22-f927-418f-bcd3-2d249f17294c","block_type":"box","text":"orders across the border of Hong Kong and the PRC. This requires the development of new","page_number":107,"box":{"x":116,"y":490,"width":687,"height":12}},{"id":"1f51dc2c-fb56-4a8a-9910-c09113b52dc7","block_type":"box","text":"information technology systems on the part of SEHK and exchange participants. There is no assurance","page_number":107,"box":{"x":117,"y":506,"width":771,"height":12}},{"id":"d0972d85-72e8-4d5b-9a7f-fb0b99399c40","block_type":"box","text":"that the systems of SEHK and market participants will function properly or will continue to be adapted","page_number":107,"box":{"x":116,"y":521,"width":757,"height":12}},{"id":"8db574be-64f9-491f-a17c-85c0040d6d01","block_type":"box","text":"to changes and developments in both markets. In the event that the relevant systems fail to function","page_number":107,"box":{"x":116,"y":537,"width":747,"height":12}},{"id":"1d6dedb7-1ca3-4465-9f46-5b53b13860f5","block_type":"box","text":"properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":107,"box":{"x":117,"y":552,"width":667,"height":12}},{"id":"29e42902-7783-4e36-b057-bbacdcb2e577","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the","page_number":107,"box":{"x":116,"y":583,"width":656,"height":12}},{"id":"09c21c81-2ec6-4e1d-9f6c-d94eaf517cd4","block_type":"box","text":"Shenzhen-Hong Kong Stock Connect program launched in December 2016. Each program does not","page_number":107,"box":{"x":116,"y":599,"width":751,"height":12}},{"id":"63140a04-8d98-4644-966c-07ee2dd1deb1","block_type":"box","text":"have an extensive operating history. New or revised regulations may be issued from time to time by the","page_number":107,"box":{"x":117,"y":614,"width":771,"height":12}},{"id":"4b17f769-a2ff-4847-a01c-6f411510cca3","block_type":"box","text":"regulators and stock exchanges in China and Hong Kong in connection with operations, legal","page_number":107,"box":{"x":117,"y":630,"width":695,"height":12}},{"id":"656dcb13-44ba-483d-97b2-9751cd8871b1","block_type":"box","text":"enforcement and cross-border trades under Stock Connects. In addition, there can be no assurance","page_number":107,"box":{"x":116,"y":645,"width":748,"height":11}},{"id":"df25d2e5-39dc-4bbb-8c2c-d754280f4ceb","block_type":"box","text":"that Stock Connect will not be discontinued. A Fund may be adversely affected as a result of such","page_number":107,"box":{"x":116,"y":661,"width":726,"height":12}},{"id":"25d67692-ab34-4daa-8e1f-1a819bb95d76","block_type":"box","text":"changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":107,"box":{"x":116,"y":676,"width":709,"height":12}},{"id":"45aca7a9-739c-4ed4-bdaf-5f205b5202bb","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the","page_number":107,"box":{"x":116,"y":692,"width":722,"height":12}},{"id":"0d8e53a5-4ffd-43eb-be29-bc56ade1aafd","block_type":"box","text":"relevant systems fail to function properly, trading in both markets through Stock Connects could be","page_number":107,"box":{"x":117,"y":707,"width":732,"height":12}},{"id":"319abf78-4ee9-43c9-b02c-f600048dd80c","block_type":"box","text":"disrupted and a Fund’s ability to achieve its investment objective may be adversely affected. In","page_number":107,"box":{"x":116,"y":723,"width":702,"height":12}},{"id":"5068b185-8e95-4b0c-afef-60b1aa42454d","block_type":"box","text":"addition, a Fund’s investments in Stock Connect Securities through Stock Connects are generally","page_number":107,"box":{"x":116,"y":738,"width":724,"height":12}},{"id":"a1ba33f0-db4c-4f34-bde8-f7553a12b8b2","block_type":"box","text":"subject to Chinese securities regulations and listing rules, among other restrictions. Further, different","page_number":107,"box":{"x":116,"y":754,"width":746,"height":12}},{"id":"f6f7faaa-7625-49cc-8888-b42cf2bfe2df","block_type":"box","text":"fees, costs and taxes are imposed on foreign investors acquiring Stock Connect Securities through","page_number":107,"box":{"x":116,"y":769,"width":733,"height":12}},{"id":"22f86131-1b4c-403a-916b-a5670069dbfd","block_type":"box","text":"Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":107,"box":{"x":116,"y":785,"width":722,"height":12}},{"id":"4d5a2062-4197-438c-972e-5830fab35995","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":107,"box":{"x":116,"y":800,"width":618,"height":12}},{"id":"9c9d9543-2170-45a4-9c06-57b8e1832dd1","block_type":"box","text":"Suspension Risk","page_number":107,"box":{"x":117,"y":831,"width":125,"height":12}},{"id":"e28ed2e8-a1e7-4db3-964f-a747a2edb38a","block_type":"box","text":". SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at","page_number":107,"box":{"x":242,"y":831,"width":634,"height":12}},{"id":"6648e798-d7f9-40d5-9ca3-59e8273186c3","block_type":"box","text":"times when the relevant SSE Securities and SZSE Securities may be sold or purchased on the","page_number":107,"box":{"x":116,"y":847,"width":709,"height":12}},{"id":"985d4c88-3238-4c09-ada6-5fcbae68a324","block_type":"box","text":"relevant Chinese stock exchange. The SSE Securities and SZSE Securities markets have a higher","page_number":107,"box":{"x":117,"y":862,"width":738,"height":12}},{"id":"bf59cfa0-8716-452d-b0d3-07674f885ada","block_type":"box","text":"propensity for trading suspensions than many other global equity markets. Each of the SEHK, SSE and","page_number":107,"box":{"x":117,"y":878,"width":771,"height":12}},{"id":"8d814bd2-31c4-4216-8f1b-06aa96400c58","block_type":"box","text":"II-57","page_number":107,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"282e270d-7fe2-442c-80c8-6d51e6195979","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":107,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"67522ec5-b0a3-4be1-a674-cd72f68d980e","block_type":"box","text":"SZSE reserves the right to suspend trading of SSE Securities and SZSE Securities purchased on the","page_number":108,"box":{"x":116,"y":87,"width":756,"height":12}},{"id":"195eabbf-1d8e-437a-b128-4aea9e5c194a","block_type":"box","text":"Stock Connects if necessary for ensuring an orderly and fair market and ensuring that risks are","page_number":108,"box":{"x":116,"y":102,"width":710,"height":13}},{"id":"bae39007-58c0-4e75-9f5c-a941c58c3fec","block_type":"box","text":"managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":108,"box":{"x":117,"y":118,"width":724,"height":12}},{"id":"b7bd1b22-cfac-4ede-a2c4-40f5d559dcf9","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit","page_number":108,"box":{"x":117,"y":134,"width":727,"height":12}},{"id":"1a1626bc-76ce-4b95-9549-acb7b001f079","block_type":"box","text":"breakers” and other measures to halt or suspend Northbound trading. Where a suspension in the","page_number":108,"box":{"x":117,"y":149,"width":725,"height":12}},{"id":"e74a30bb-330b-4a32-83ef-86cda61735c4","block_type":"box","text":"Northbound trading through Stock Connect is effected, the Fund’s ability to access the PRC market will","page_number":108,"box":{"x":117,"y":165,"width":769,"height":12}},{"id":"af8567a7-651a-49b0-8c90-c508af5f5fab","block_type":"box","text":"be adversely affected. Trading suspensions in certain stocks could lead to greater market execution","page_number":108,"box":{"x":117,"y":180,"width":745,"height":12}},{"id":"e8fac73d-cb2f-4527-aebd-4a5135391156","block_type":"box","text":"risk and costs for a Fund. The SSE and SZSE currently","page_number":108,"box":{"x":117,"y":196,"width":415,"height":12}},{"id":"1d03503c-2a49-446e-980d-b3016db3a936","block_type":"box","text":"apply a daily price limit, generally set at 10%,","page_number":108,"box":{"x":533,"y":196,"width":340,"height":12}},{"id":"a3ea89fc-8016-450e-8f44-bb0a13fe713d","block_type":"box","text":"of the amount of fluctuation permitted in the prices of the relevant SSE Securities and SZSE Securities","page_number":108,"box":{"x":116,"y":211,"width":766,"height":12}},{"id":"0e95aba6-1bf8-4a9b-85a8-5bd150903e35","block_type":"box","text":"during a single trading day. The daily price limit refers to price movements only and does not restrict","page_number":108,"box":{"x":116,"y":227,"width":747,"height":12}},{"id":"f12bf4b8-102b-478c-8ed4-6309ec125760","block_type":"box","text":"trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":108,"box":{"x":116,"y":242,"width":744,"height":12}},{"id":"4182b831-381c-4ebe-90b8-104a1e55185d","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":108,"box":{"x":116,"y":258,"width":598,"height":12}},{"id":"2a23505d-feb0-408e-bfca-03a865b8a085","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect","page_number":108,"box":{"x":116,"y":289,"width":567,"height":12}},{"id":"4d1f2e67-16e6-45a1-8997-59b8950ea857","block_type":"box","text":". A Fund may invest","page_number":108,"box":{"x":683,"y":289,"width":152,"height":12}},{"id":"d577b600-102b-438d-9258-8d3f37df90a4","block_type":"box","text":"directly in the domestic bond market in the PRC (the “China Interbank Bond Market”) through the","page_number":108,"box":{"x":116,"y":304,"width":724,"height":12}},{"id":"3805a5c3-536f-4a3a-b29f-ab13c7be0554","block_type":"box","text":"northbound trading of Bond Connect (“Bond Connect”). Bond Connect is an initiative launched in July","page_number":108,"box":{"x":117,"y":320,"width":755,"height":12}},{"id":"e5149bc8-9500-4ff4-b4ab-cd79e49028f1","block_type":"box","text":"2017 for mutual bond market access between the PRC and Hong Kong, established by the China","page_number":108,"box":{"x":116,"y":335,"width":729,"height":12}},{"id":"d74fe67b-059f-4828-b8ba-7b4f0ed12117","block_type":"box","text":"Foreign Exchange Trade System & National Interbank Funding Centre (“CFETS”), China Central","page_number":108,"box":{"x":117,"y":351,"width":722,"height":12}},{"id":"4fdcfae8-edf3-4f63-b08e-8164415c4037","block_type":"box","text":"Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”), Hong Kong Exchanges","page_number":108,"box":{"x":117,"y":366,"width":752,"height":12}},{"id":"fe48b29a-7ed7-4578-9fd3-2d2543fce260","block_type":"box","text":"and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":108,"box":{"x":116,"y":382,"width":699,"height":12}},{"id":"ea7b98ce-af18-4798-ae60-92d0a170b673","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the","page_number":108,"box":{"x":117,"y":397,"width":738,"height":12}},{"id":"0ae16208-f7e4-4ce8-a174-a5a40d6e43b7","block_type":"box","text":"China Interbank Bond Market through Bond Connect. Eligible foreign investors may submit trade","page_number":108,"box":{"x":117,"y":413,"width":721,"height":12}},{"id":"b292168d-d23f-48ec-9fce-e431ff91821f","block_type":"box","text":"requests for bonds circulated in the China Interbank Bond Market through offshore electronic bond","page_number":108,"box":{"x":117,"y":428,"width":735,"height":12}},{"id":"dc4a891c-b653-45c3-af3e-cffb303fa594","block_type":"box","text":"trading platforms (such as Tradeweb), which will in turn transmit their requests for quotation to CFETS.","page_number":108,"box":{"x":116,"y":444,"width":768,"height":12}},{"id":"c731a531-b5b5-4b74-8adb-d5022ccd7848","block_type":"box","text":"CFETS will send the requests for quotation to a number of approved onshore dealers (including market","page_number":108,"box":{"x":117,"y":459,"width":770,"height":12}},{"id":"75b88dad-9d5c-41f5-ade4-df299a493802","block_type":"box","text":"makers and others engaged in the market making business) in the PRC. The approved onshore","page_number":108,"box":{"x":117,"y":475,"width":715,"height":12}},{"id":"4814e9be-b826-4410-8ed8-e408eeec8a3c","block_type":"box","text":"dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their responses to","page_number":108,"box":{"x":116,"y":490,"width":765,"height":12}},{"id":"4fbd6285-b1ad-441c-b208-0a814bec6ee5","block_type":"box","text":"those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":108,"box":{"x":116,"y":506,"width":759,"height":12}},{"id":"c4cbd59f-1677-460c-a7fe-1db968b80e31","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":108,"box":{"x":116,"y":521,"width":603,"height":12}},{"id":"a28cc68b-9bfc-48fd-a999-060ac120a465","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect","page_number":108,"box":{"x":116,"y":552,"width":761,"height":12}},{"id":"38055ea9-cbd4-4e41-9e4b-1f75ea53b6ee","block_type":"box","text":"will be effected through the settlement and custody link between CMU, as an offshore custody agent,","page_number":108,"box":{"x":116,"y":568,"width":755,"height":12}},{"id":"9728472a-5a86-4723-8996-4d0c7b1c35f4","block_type":"box","text":"and CDCC and SCH, as onshore custodians and clearing institutions in the PRC. Under the settlement","page_number":108,"box":{"x":116,"y":583,"width":768,"height":12}},{"id":"546c7e41-167b-4e9d-b0e1-0d760fde4cc3","block_type":"box","text":"link, CDCC or SCH will effect gross settlement of confirmed trades onshore and CMU will process","page_number":108,"box":{"x":117,"y":599,"width":730,"height":12}},{"id":"1f8c5293-2a23-4791-a9eb-1437667e0c8a","block_type":"box","text":"bond settlement instructions from CMU members on behalf of eligible foreign investors in accordance","page_number":108,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"d73200da-c909-43e8-ab9b-455b2c45d278","block_type":"box","text":"with its relevant rules. Since the introduction in August 2018 of delivery versus payment (DVP)","page_number":108,"box":{"x":116,"y":630,"width":705,"height":12}},{"id":"3a5cb5dd-6fa8-4d68-8ad8-9108980207e8","block_type":"box","text":"settlement in respect of Bond Connect, the movement of cash and securities is carried out","page_number":108,"box":{"x":116,"y":645,"width":675,"height":12}},{"id":"c8ebf9a0-4776-4349-be8b-6fc0ab342576","block_type":"box","text":"simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":108,"box":{"x":116,"y":661,"width":738,"height":12}},{"id":"61867c18-940f-4cfb-89a4-1062a8c5f1dc","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee","page_number":108,"box":{"x":116,"y":676,"width":754,"height":12}},{"id":"72690916-614d-4456-aac3-d0543bebce9d","block_type":"box","text":"accounts with the onshore custody agent recognized by the People’s Bank of China (i.e., CDCC and","page_number":108,"box":{"x":116,"y":692,"width":744,"height":12}},{"id":"da9b9f45-530f-4116-98b6-0ea3c8460ae1","block_type":"box","text":"SCH). All bonds traded by eligible foreign investors through Bond Connect will be registered in the","page_number":108,"box":{"x":116,"y":707,"width":729,"height":12}},{"id":"60281085-6235-48be-b024-8ad3d8e41545","block_type":"box","text":"name of CMU, which will hold such bonds as a nominee owner. Therefore, a Fund will be exposed to","page_number":108,"box":{"x":117,"y":723,"width":748,"height":12}},{"id":"85780ba9-f78b-4dae-9e9f-5e1f9e82e5d8","block_type":"box","text":"custody risks with respect to CMU. In the remote event of a CDCC or SCH default, CMU’s liabilities in","page_number":108,"box":{"x":116,"y":738,"width":754,"height":12}},{"id":"e74d0a29-11de-4da9-8ac0-dcac99347e2a","block_type":"box","text":"Bond Connect bonds under its market contracts with clearing participants will be limited to assisting","page_number":108,"box":{"x":117,"y":754,"width":736,"height":12}},{"id":"52447e5a-68f9-4b63-a80b-b749533cc66a","block_type":"box","text":"clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer delay in the","page_number":108,"box":{"x":116,"y":769,"width":753,"height":12}},{"id":"dd279db6-d0f3-4fcf-a16e-534f90f34545","block_type":"box","text":"recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":108,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"859b5170-f30d-45ae-a648-194081f9748f","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by","page_number":108,"box":{"x":116,"y":800,"width":733,"height":12}},{"id":"c6cec48e-482a-486c-ab3d-23332da240ee","block_type":"box","text":"third parties, including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or","page_number":108,"box":{"x":116,"y":816,"width":723,"height":12}},{"id":"dd647a23-8f98-4c05-9b31-b6e81520e238","block_type":"box","text":"errors on the part of such third parties.","page_number":108,"box":{"x":116,"y":831,"width":290,"height":12}},{"id":"cc3dfa1c-8e66-45e5-a390-6e02506b8b44","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China","page_number":108,"box":{"x":116,"y":862,"width":720,"height":12}},{"id":"8e141946-bca5-472f-9512-8841c24e04b2","block_type":"box","text":"Interbank Bond Market through CMU as nominee is not well-defined under PRC law. There is a lack of","page_number":108,"box":{"x":117,"y":878,"width":765,"height":12}},{"id":"46bf2db5-1acc-414b-aab3-1ce0de2cc072","block_type":"box","text":"II-58","page_number":108,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"3b166a7a-590a-4864-b8ea-bc2dc5284dc5","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":108,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"2ef8b8bf-831b-45f0-ac59-3637ae98bd51","block_type":"box","text":"a clear definition of, and distinction between, legal ownership and beneficial ownership under PRC law","page_number":109,"box":{"x":116,"y":87,"width":765,"height":12}},{"id":"06462836-1f60-4c12-ae4e-2f146fd865ea","block_type":"box","text":"and there have been few cases involving a nominee account structure in the PRC courts. The exact","page_number":109,"box":{"x":116,"y":102,"width":745,"height":13}},{"id":"28121a57-1825-4358-8837-e86cdb7d76a0","block_type":"box","text":"nature and methods of enforcement of the rights and interests of a Fund under PRC law are also","page_number":109,"box":{"x":117,"y":118,"width":722,"height":12}},{"id":"baa33851-58dd-4f96-8060-e4598957792b","block_type":"box","text":"uncertain.","page_number":109,"box":{"x":117,"y":134,"width":77,"height":9}},{"id":"91d4d56c-edd9-490c-88cd-438c4bd53620","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China","page_number":109,"box":{"x":117,"y":164,"width":750,"height":12}},{"id":"6dfab3d0-086b-4cb6-b8c9-dacfb6791732","block_type":"box","text":"Interbank Bond Market may result in prices of certain bonds traded on such market fluctuating","page_number":109,"box":{"x":117,"y":179,"width":702,"height":12}},{"id":"1b517d49-a9b4-4cd4-b4fd-0a25b82609db","block_type":"box","text":"significantly. A Fund investing in such market is therefore subject to liquidity and volatility risks. The","page_number":109,"box":{"x":116,"y":194,"width":742,"height":12}},{"id":"a5c9e1bc-913a-4f66-b7b4-5d91c59312a3","block_type":"box","text":"bid-ask spreads of the prices of such securities may be large, and a Fund may therefore incur","page_number":109,"box":{"x":117,"y":209,"width":700,"height":12}},{"id":"cff2eb39-1284-4ebb-a5a0-2575b095fb0b","block_type":"box","text":"significant costs and may suffer losses when selling such investments. The bonds traded in the China","page_number":109,"box":{"x":116,"y":224,"width":759,"height":12}},{"id":"42d17875-473f-4761-ba2c-62604d9a75e9","block_type":"box","text":"Interbank Bond Market may be difficult or impossible to sell, which may impact a Fund’s ability to","page_number":109,"box":{"x":117,"y":239,"width":722,"height":12}},{"id":"39b4e625-42be-4861-a20f-49440cafe4af","block_type":"box","text":"acquire or dispose of such securities at their expected prices.","page_number":109,"box":{"x":116,"y":254,"width":460,"height":12}},{"id":"69b5779f-d0a2-4b8e-a9b4-cfcf684db26b","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks.","page_number":109,"box":{"x":117,"y":284,"width":766,"height":12}},{"id":"e226abe8-3c6a-4f81-8783-879f67e04be7","block_type":"box","text":"The relevant rules and regulations are subject to change, which may have potential retrospective","page_number":109,"box":{"x":116,"y":299,"width":724,"height":12}},{"id":"09367a20-e75b-4cb2-9319-5fabf127ab92","block_type":"box","text":"effect, and there can be no assurance that Bond Connect will not be discontinued or abolished.","page_number":109,"box":{"x":116,"y":314,"width":711,"height":11}},{"id":"bcf24810-ac4e-464e-8b1a-8678cf746817","block_type":"box","text":"Furthermore, the securities regimes and legal systems of China and Hong Kong differ significantly and","page_number":109,"box":{"x":117,"y":329,"width":764,"height":12}},{"id":"60728296-2f7f-405e-88e1-b72164feab77","block_type":"box","text":"issues may arise based on these differences. In the event that the relevant authorities suspend","page_number":109,"box":{"x":117,"y":344,"width":709,"height":12}},{"id":"1de7390c-d2d8-4b26-9c51-5e34b16a9641","block_type":"box","text":"account opening or trading on the China Interbank Bond Market, a Fund’s ability to invest in the China","page_number":109,"box":{"x":116,"y":359,"width":762,"height":12}},{"id":"013007e6-394f-4ef8-a3d4-98139c973747","block_type":"box","text":"Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability to","page_number":109,"box":{"x":117,"y":374,"width":716,"height":12}},{"id":"4b14f614-9493-4d2f-a5d9-d9daa71bff24","block_type":"box","text":"achieve its investment objective will be negatively affected and, after exhausting other trading","page_number":109,"box":{"x":116,"y":389,"width":699,"height":12}},{"id":"a1b2b88b-80c8-48e3-81d7-07ae1cc9e2a6","block_type":"box","text":"alternatives, the Fund may suffer substantial losses as a result. Further, if Bond Connect is not","page_number":109,"box":{"x":116,"y":404,"width":707,"height":12}},{"id":"5131f3c0-e4d7-4854-bcaa-f65aeb106624","block_type":"box","text":"operating, a Fund may not be able to acquire or dispose of bonds through Bond Connect in a timely","page_number":109,"box":{"x":116,"y":419,"width":745,"height":12}},{"id":"d4e088b4-d841-4e99-93e8-6f846dca18f4","block_type":"box","text":"manner, which could adversely affect the Fund’s performance.","page_number":109,"box":{"x":117,"y":434,"width":467,"height":12}},{"id":"9c6b71e6-0357-43ed-8fe2-99f6f06c2c73","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and","page_number":109,"box":{"x":116,"y":464,"width":687,"height":12}},{"id":"31db0a8e-3b7e-4862-bfcf-ff9fb5f279b0","block_type":"box","text":"operational systems. There is no assurance that such systems will function properly or will continue to","page_number":109,"box":{"x":116,"y":479,"width":761,"height":12}},{"id":"c401346a-ca91-4348-8560-9705bb1a945f","block_type":"box","text":"be adapted to changes and developments in the market. In the event that the relevant systems fail to","page_number":109,"box":{"x":117,"y":494,"width":753,"height":12}},{"id":"8e8bb7e3-f183-4b99-acb0-84ae349126fb","block_type":"box","text":"function properly, trading through Bond Connect may be disrupted. A Fund’s ability to trade through","page_number":109,"box":{"x":116,"y":509,"width":744,"height":12}},{"id":"ddd642a6-afb4-4b7a-adfb-0b7bfec61ae8","block_type":"box","text":"Bond Connect (and hence to pursue its investment strategy) may therefore be adversely affected. In","page_number":109,"box":{"x":117,"y":524,"width":749,"height":12}},{"id":"536d2831-2aaf-4e60-b62c-b40a8558972c","block_type":"box","text":"addition, where a Fund invests in the China Interbank Bond Market through Bond Connect, it may be","page_number":109,"box":{"x":116,"y":539,"width":753,"height":12}},{"id":"ab147943-4fba-4907-86ca-8dac1a1458b7","block_type":"box","text":"subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":109,"box":{"x":116,"y":554,"width":607,"height":12}},{"id":"59cbe078-4c7c-4cf9-b4d5-13eee62e6276","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not","page_number":109,"box":{"x":117,"y":584,"width":746,"height":12}},{"id":"1522a298-f9f1-4a1b-966e-278ef3464408","block_type":"box","text":"freely convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed","page_number":109,"box":{"x":116,"y":599,"width":740,"height":12}},{"id":"a30faac6-2474-4c85-8185-3309c6676cab","block_type":"box","text":"that investors will have timely access to a reliable supply of RMB.","page_number":109,"box":{"x":116,"y":614,"width":490,"height":12}},{"id":"5ad3ebca-8fc8-4636-934a-98096116f6ab","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk.","page_number":109,"box":{"x":118,"y":645,"width":309,"height":12}},{"id":"11e90cae-41e0-413a-aadf-8fd5ee14d103","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends","page_number":109,"box":{"x":116,"y":667,"width":760,"height":12}},{"id":"f156a77d-bd89-496f-88b9-73f20add1647","block_type":"box","text":"and interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is","page_number":109,"box":{"x":116,"y":682,"width":755,"height":12}},{"id":"9f1d1f8e-990c-4187-a775-fc15d15d6e30","block_type":"box","text":"reduced under an applicable tax treaty. From a technical perspective, withholding income tax is also","page_number":109,"box":{"x":117,"y":697,"width":733,"height":12}},{"id":"d90e0f36-6a2f-44b3-9e39-244f5cd6019e","block_type":"box","text":"applicable to capital gains realized by foreign investors on the disposal of PRC equity interests.","page_number":109,"box":{"x":116,"y":712,"width":697,"height":12}},{"id":"2ed9d798-ec5c-48ac-a0cd-357707793a8d","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":109,"box":{"x":116,"y":742,"width":729,"height":12}},{"id":"9ddabe4a-834e-4862-9924-ed654c92ac97","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“Mo","page_number":109,"box":{"x":116,"y":772,"width":375,"height":12}},{"id":"44c60a9c-2efa-4991-bca9-a609b32d3cdc","block_type":"box","text":"F”), China Securities Regulatory Commission and the","page_number":109,"box":{"x":493,"y":772,"width":379,"height":12}},{"id":"861e8d7c-12a0-4fd1-a0a5-ad63a9687280","block_type":"box","text":"State Taxation Administration (“STA”), acting with St","page_number":109,"box":{"x":116,"y":787,"width":372,"height":12}},{"id":"efa4f806-f45a-4688-9751-5d905ae29cb1","block_type":"box","text":"ate Council’s approval, jointly released Circular 79,","page_number":109,"box":{"x":489,"y":787,"width":359,"height":12}},{"id":"049debda-4768-4eb8-a1dc-4f13a423dbbf","block_type":"box","text":"which temporarily exempts Qualified Foreign Instit","page_number":109,"box":{"x":116,"y":802,"width":356,"height":12}},{"id":"5416ae2e-488a-427e-a983-5f55ef75f5ab","block_type":"box","text":"utional Investors (“QFIIs”) and Renminbi Qualified","page_number":109,"box":{"x":473,"y":802,"width":352,"height":12}},{"id":"aa6ab69c-94d0-4037-bdc9-7425e480842b","block_type":"box","text":"Foreign Institutional Investors (“RQFIIs”) from tax on","page_number":109,"box":{"x":117,"y":817,"width":369,"height":12}},{"id":"5a25bcb8-3890-4fce-8fc7-e1d0762fea55","block_type":"box","text":"capital gains derived from the trading of shares and","page_number":109,"box":{"x":492,"y":817,"width":365,"height":12}},{"id":"bf881f12-4942-47fb-89ac-2db9357704d5","block_type":"box","text":"other equity interest investments on or after No","page_number":109,"box":{"x":116,"y":832,"width":334,"height":12}},{"id":"79bea2dc-c5a3-4131-9b2d-c6038cd85ede","block_type":"box","text":"vember 17, 2014. Subsequently, Circulars 81 and 127 were","page_number":109,"box":{"x":450,"y":832,"width":429,"height":12}},{"id":"952e7537-066c-40b8-9bc3-f6f1d1b98a1c","block_type":"box","text":"issued to temporarily exempt tax on capital gains der","page_number":109,"box":{"x":117,"y":847,"width":375,"height":12}},{"id":"9388c67a-1255-441f-9532-fc37f434eae2","block_type":"box","text":"ived from trading of equity securities of companies","page_number":109,"box":{"x":493,"y":847,"width":361,"height":12}},{"id":"0b36348f-7857-4d26-a336-4a662735773d","block_type":"box","text":"domiciled in the PRC that trade on Chinese stock exchanges (“A-Shares”) through the Shanghai-Hong","page_number":109,"box":{"x":116,"y":862,"width":734,"height":12}},{"id":"af302cf7-a524-4875-8f88-c83da7b89308","block_type":"box","text":"Kong Stock Connect program or the Shenzhen-Hong Kong Stock Connect program, as applicable (each, a","page_number":109,"box":{"x":117,"y":877,"width":764,"height":12}},{"id":"baee3658-24c8-4ca3-85c3-47d040b38f7b","block_type":"box","text":"II-59","page_number":109,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4c612f51-7142-4a2b-aa2a-15dca258e7eb","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":109,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"1088ebcb-2670-4550-b93d-7d0aac21573d","block_type":"box","text":"“Stock Connect” and collectively, “Stock Connects”). The dur","page_number":110,"box":{"x":116,"y":86,"width":431,"height":13}},{"id":"b39be5cf-b258-4ce2-bfef-efce751b4cda","block_type":"box","text":"ation of the temporary exemptions is not stated","page_number":110,"box":{"x":548,"y":86,"width":338,"height":13}},{"id":"0dbff7dc-35e8-471e-b5be-890fc21ce56e","block_type":"box","text":"in the circulars and is subject to termination by","page_number":110,"box":{"x":117,"y":102,"width":328,"height":12}},{"id":"046fcfba-9cbc-4dab-9a56-9338ceb44315","block_type":"box","text":"the PRC tax authorities w","page_number":110,"box":{"x":445,"y":101,"width":175,"height":10}},{"id":"e3f4b74f-adf6-478f-947c-7145963c21db","block_type":"box","text":"with or without notice.","page_number":110,"box":{"x":620,"y":102,"width":159,"height":9}},{"id":"a32f22da-c7b8-43f6-a80d-4c6967b84b8c","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":110,"box":{"x":116,"y":133,"width":766,"height":12}},{"id":"768164d0-1841-4ed2-8f4d-5065e1796507","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds","page_number":110,"box":{"x":117,"y":148,"width":742,"height":12}},{"id":"e25bf059-10f2-4262-9a2c-c9080d034dfe","block_type":"box","text":"derived from the PRC bond market from November 7, 2018 to November 6, 2021. On November 22,","page_number":110,"box":{"x":116,"y":163,"width":727,"height":11}},{"id":"8de715ee-ba3f-4e3b-b42d-1310111fc1cd","block_type":"box","text":"2021, the MoF and STA issued Public Notice 34 to extend the temporary exemption from November 7,","page_number":110,"box":{"x":116,"y":178,"width":743,"height":12}},{"id":"2214f560-a779-4107-9ba7-4179f052b830","block_type":"box","text":"2021 to December 31, 2025. On January 15, 2026, it was announced via Public Notice No. 5 of 2026 that","page_number":110,"box":{"x":116,"y":193,"width":762,"height":12}},{"id":"c5f75862-f424-422d-a2ce-dd58849674d2","block_type":"box","text":"the exemption was extended through December 31, 2027.","page_number":110,"box":{"x":116,"y":208,"width":424,"height":12}},{"id":"e87e8c2f-be11-4878-babe-29896de48033","block_type":"box","text":"Value Added Tax (“VAT”) Risk","page_number":110,"box":{"x":118,"y":239,"width":225,"height":13}},{"id":"8db2fb56-3070-44c0-8616-082fe7465381","block_type":"box","text":"k — From May 1, 2016, VAT applies to certain income derived by the","page_number":110,"box":{"x":342,"y":240,"width":511,"height":12}},{"id":"ed1c3e2f-321a-4e2f-ba5a-5349e2fade52","block_type":"box","text":"Fund, including PRC sourced interest income on non-government bonds and trading gains.","page_number":110,"box":{"x":117,"y":255,"width":681,"height":12}},{"id":"202a9c04-e06c-438d-999e-796af1b275e3","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":110,"box":{"x":116,"y":286,"width":735,"height":12}},{"id":"c5465fac-5191-4774-93b8-14fe5ff563d0","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares","page_number":110,"box":{"x":116,"y":317,"width":741,"height":13}},{"id":"bf5fc884-6ab7-4bfc-a2cf-2baecd4a8a7a","block_type":"box","text":"traded on the Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":110,"box":{"x":116,"y":332,"width":699,"height":10}},{"id":"94300d89-6c1d-45a9-bc06-9805f3658589","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign","page_number":110,"box":{"x":116,"y":364,"width":694,"height":12}},{"id":"b44df9f3-72ab-4431-8a76-44fec9ae427a","block_type":"box","text":"institutional investors are temporarily exempt from VAT with respect to interest income on bonds","page_number":110,"box":{"x":117,"y":379,"width":718,"height":12}},{"id":"847e1a0c-0040-4620-a54a-cf7bc0d78923","block_type":"box","text":"derived from the PRC bond market from November 7, 2018 to November 6, 2021. On November 22,","page_number":110,"box":{"x":116,"y":394,"width":750,"height":11}},{"id":"eb1c03bb-86d8-4794-a181-976fc50a42fa","block_type":"box","text":"2021, the MoF and STA jointly issued Public Notice 34 to extend the temporary exemption from","page_number":110,"box":{"x":116,"y":409,"width":714,"height":12}},{"id":"08f63d8d-67e7-4d6f-ba47-262ecdbff39d","block_type":"box","text":"November 7, 2021 to December 31, 2025. However, on July 31, 2025, the MoF and STA jointly issued","page_number":110,"box":{"x":117,"y":424,"width":764,"height":12}},{"id":"a41c842c-28a0-4148-9d0f-2f67f80e4c8c","block_type":"box","text":"Public Notice No 4 of 2025, stating that VAT will apply with respect to interest income derived from","page_number":110,"box":{"x":117,"y":439,"width":735,"height":12}},{"id":"ea7c47f5-9fd5-43bf-83c9-1c224ddd53b9","block_type":"box","text":"treasury bonds, local government bonds and financial bonds issued on or after August 8, 2025. It is","page_number":110,"box":{"x":116,"y":454,"width":742,"height":12}},{"id":"5fe8bf8d-235a-4cfb-99fd-1a7010181003","block_type":"box","text":"understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption for","page_number":110,"box":{"x":117,"y":469,"width":739,"height":12}},{"id":"24a66870-abc5-40e0-b294-29b5e00621db","block_type":"box","text":"foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":110,"box":{"x":116,"y":484,"width":668,"height":12}},{"id":"c49d3ef8-b257-46c1-a37e-4389ab79d824","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement","page_number":110,"box":{"x":116,"y":515,"width":754,"height":12}},{"id":"3fc9cb8d-d0f6-42b9-b3eb-e70efe9daefc","block_type":"box","text":"by the PRC tax authorities may result in a loss which could be material to the Fund. There is a risk the","page_number":110,"box":{"x":117,"y":530,"width":761,"height":12}},{"id":"1898648c-2891-4574-8417-21ec055d4314","block_type":"box","text":"PRC tax authorities may withdraw the temporary tax exemptions in the future and seek to collect taxes","page_number":110,"box":{"x":117,"y":545,"width":765,"height":12}},{"id":"2e24c08c-ff00-476d-b505-ebd92e577789","block_type":"box","text":"realized on the sale of A-Shares or PRC sourced interest income on non-government bonds received","page_number":110,"box":{"x":117,"y":560,"width":756,"height":12}},{"id":"a9659acf-bfcf-49ed-9b0a-36d573d9bd68","block_type":"box","text":"by the Fund without giving any prior notice. If the temporary tax exemptions are withdrawn, any taxes","page_number":110,"box":{"x":117,"y":575,"width":755,"height":12}},{"id":"2a326700-065b-40d7-866e-26f7081d29fe","block_type":"box","text":"may be directly borne by or indirectly passed on to the Fund and may result in a substantial impact to","page_number":110,"box":{"x":117,"y":590,"width":755,"height":12}},{"id":"0c07df0f-9f7f-434f-aac2-497419cf3a85","block_type":"box","text":"its net asset value. As with any net asset value adjustment, investors may be advantaged or","page_number":110,"box":{"x":117,"y":605,"width":687,"height":12}},{"id":"95ae8410-3ed0-4950-83d7-739966afaf72","block_type":"box","text":"disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":110,"box":{"x":116,"y":620,"width":763,"height":12}},{"id":"ea662a09-7973-4829-8471-985b41121295","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":110,"box":{"x":116,"y":635,"width":494,"height":12}},{"id":"262c6f13-2edb-47ad-8c2b-e815c99d6d76","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from","page_number":110,"box":{"x":117,"y":666,"width":752,"height":12}},{"id":"5b40d88a-ea61-4953-af0f-287c4f82d47b","block_type":"box","text":"time to time, make a provision for potential tax liabilities if in its opinion such provision is warranted or","page_number":110,"box":{"x":116,"y":681,"width":751,"height":12}},{"id":"a1329835-f9cb-4fe8-a6dc-5ce9077f0e49","block_type":"box","text":"as further clarified by the PRC in notifications.","page_number":110,"box":{"x":116,"y":696,"width":339,"height":12}},{"id":"99173a1e-7cd0-452e-9eb3-be869b3dd0b5","block_type":"box","text":"Investment in Other Investment Companies.","page_number":110,"box":{"x":116,"y":727,"width":350,"height":12}},{"id":"718c25c6-c5ce-4ebd-b93a-de26b190cb17","block_type":"box","text":"Each Fund may, subject to applicable law, invest in","page_number":110,"box":{"x":474,"y":727,"width":378,"height":12}},{"id":"366ec37e-4d52-4b9e-97a9-6d03ca189148","block_type":"box","text":"other investment companies (including investment companies managed by BlackRock and its","page_number":110,"box":{"x":116,"y":742,"width":694,"height":12}},{"id":"7f15a6b4-a449-43a0-9fb2-237c2bbef0fc","block_type":"box","text":"affiliates), including money market funds and ETFs, which are typically open-end funds or unit","page_number":110,"box":{"x":116,"y":757,"width":697,"height":12}},{"id":"ee0cfd27-7b8e-4dc4-9f9b-a2b266562a60","block_type":"box","text":"investment trusts listed on a stock exchange. Under Section 12(d)(1)(A) of the Investment Company","page_number":110,"box":{"x":117,"y":772,"width":743,"height":12}},{"id":"7d2be500-3443-47e2-acad-264acf6ae327","block_type":"box","text":"Act, however, a Fund may invest up to 10% of its total assets in securities of other investment","page_number":110,"box":{"x":116,"y":787,"width":696,"height":12}},{"id":"4b0c04f8-0d39-470b-9915-e15b1943de2b","block_type":"box","text":"companies (measured at the time of such investment). In addition, under Section 12(d)(1)(A) of the","page_number":110,"box":{"x":116,"y":802,"width":734,"height":12}},{"id":"044fc487-1f8f-448e-902f-0fec1db8df79","block_type":"box","text":"Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":110,"box":{"x":117,"y":817,"width":698,"height":12}},{"id":"b0f4de0b-f534-4f9d-9df8-f78661f52346","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such","page_number":110,"box":{"x":116,"y":832,"width":745,"height":12}},{"id":"af3a1e1c-983c-47ba-af68-5919a91893c7","block_type":"box","text":"investment company and a Fund may not invest in another investment company if such investment","page_number":110,"box":{"x":117,"y":847,"width":739,"height":12}},{"id":"ba0f5dbf-97cd-47d5-bddb-bb5aacede7b1","block_type":"box","text":"would cause more than 5% of the value of the Fund’s total assets to be invested in securities of such","page_number":110,"box":{"x":116,"y":862,"width":753,"height":10}},{"id":"b29d65c1-bd39-4bfc-997d-76065ae5f340","block_type":"box","text":"investment company. (These limits do not restrict a Feeder Fund from investing all of its assets in","page_number":110,"box":{"x":117,"y":877,"width":727,"height":12}},{"id":"baddcd86-3691-4090-a4e8-9eb1f63592f2","block_type":"box","text":"II-60","page_number":110,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"03fe2a7c-cefc-44cd-b1cb-f4798868b11d","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":110,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"8265d794-7c79-4845-a62d-6c257bd84b32","block_type":"box","text":"shares of its Master Portfolio.) In addition to the restrictions on investing in other investment companies","page_number":111,"box":{"x":116,"y":86,"width":771,"height":13}},{"id":"c8904039-1daf-4e58-b285-1d26a0a8dc07","block_type":"box","text":"discussed above, under Section 12(d)(1)(C) of the Investment Company Act a Fund may not invest in","page_number":111,"box":{"x":116,"y":101,"width":759,"height":13}},{"id":"af629310-16a9-4f8c-bd11-db1a11e45481","block_type":"box","text":"a registered closed-end investment company if such investment would cause the Fund and other","page_number":111,"box":{"x":116,"y":116,"width":724,"height":13}},{"id":"ed0aaa8d-1070-4928-863a-1d13441528c4","block_type":"box","text":"BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock","page_number":111,"box":{"x":117,"y":131,"width":760,"height":13}},{"id":"3ad03976-28c8-43fe-afd5-d83193a8901e","block_type":"box","text":"of such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company","page_number":111,"box":{"x":116,"y":146,"width":761,"height":13}},{"id":"85398f7a-8369-4641-9f96-5ccf681ba807","block_type":"box","text":"Act, these percentage limitations do not apply to investments in affiliated investment companies,","page_number":111,"box":{"x":116,"y":161,"width":719,"height":13}},{"id":"ddbd6493-dccc-4ec7-926c-e3d880b5bad0","block_type":"box","text":"including ETFs, subject to certain conditions. In addition, a Fund may be able to rely on certain rules","page_number":111,"box":{"x":117,"y":177,"width":747,"height":12}},{"id":"f17c2284-333a-47df-909b-570b1459a0ab","block_type":"box","text":"under the Investment Company Act to invest in shares of money market funds or other investment","page_number":111,"box":{"x":117,"y":191,"width":733,"height":12}},{"id":"3916fbbe-4af5-4df0-99cd-80568102f4b7","block_type":"box","text":"companies beyond the statutory limits noted above, but subject to certain conditions.","page_number":111,"box":{"x":116,"y":207,"width":633,"height":11}},{"id":"71c3fc38-66c7-4599-be80-1b79a533ab0a","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and","page_number":111,"box":{"x":116,"y":238,"width":723,"height":11}},{"id":"4577488b-0221-4a5c-8ef6-a3f5920b8b97","block_type":"box","text":"selection risk.","page_number":111,"box":{"x":116,"y":253,"width":106,"height":9}},{"id":"16eedd89-cae3-43f7-91c8-5311cfd7a2aa","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an","page_number":111,"box":{"x":116,"y":284,"width":740,"height":12}},{"id":"2bb5404b-5e1f-4b18-88a8-e4afc76ed712","block_type":"box","text":"exchange may at times be acquired at market prices representing premiums to their NAVs. In addition,","page_number":111,"box":{"x":116,"y":300,"width":767,"height":12}},{"id":"cf9d7b7f-d85a-45f3-af53-fd969013bc4d","block_type":"box","text":"investment companies held by a Fund that trade on an exchange could trade at a discount from NAV,","page_number":111,"box":{"x":117,"y":315,"width":758,"height":12}},{"id":"3aba6b97-62ff-4c95-a2ed-07a61ef518a9","block_type":"box","text":"and such discount could increase while the Fund holds the shares. If the market price of shares of an","page_number":111,"box":{"x":116,"y":330,"width":756,"height":12}},{"id":"1b1468ac-0ce3-4c3a-8f9e-2d1ff41a25fb","block_type":"box","text":"exchange-traded investment company decreases below the price that the Fund paid for the shares and","page_number":111,"box":{"x":116,"y":346,"width":771,"height":12}},{"id":"a5a2dc33-da3a-4938-9696-4d3c086bdf25","block_type":"box","text":"the Fund were to sell its shares of such investment company at a time when the market price is lower","page_number":111,"box":{"x":116,"y":361,"width":757,"height":13}},{"id":"7559e574-4f3c-4d3b-a85e-c5d23574ca13","block_type":"box","text":"than the price at which it purchased the shares, the Fund would experience a loss.","page_number":111,"box":{"x":116,"y":377,"width":617,"height":12}},{"id":"a1344bca-8839-4d16-ad9d-580075839577","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment","page_number":111,"box":{"x":117,"y":408,"width":698,"height":12}},{"id":"bf17f829-fee8-4681-a2ec-44eab3fd60f3","block_type":"box","text":"companies, shareholders would bear both their proportionate share of expenses in the Fund and,","page_number":111,"box":{"x":116,"y":423,"width":727,"height":12}},{"id":"23179af4-0b9e-46ad-83cf-cf154c4661d8","block_type":"box","text":"indirectly, the expenses of such investment companies. Such expenses, both at the Fund level and","page_number":111,"box":{"x":117,"y":439,"width":739,"height":12}},{"id":"7a4efd0e-05b0-402a-9658-f79ed13078d1","block_type":"box","text":"acquired investment company level, would include management and advisory fees, unless such fees","page_number":111,"box":{"x":116,"y":454,"width":753,"height":13}},{"id":"1b434f3e-ec1e-4237-9799-8908b4fa99dc","block_type":"box","text":"have been waived by BlackRock. Please see the relevant Fund’s Prospectus to determine whether any","page_number":111,"box":{"x":117,"y":470,"width":769,"height":12}},{"id":"f6f2508e-242f-4101-b15e-2cb14ad92aaf","block_type":"box","text":"such management and advisory fees have been waived by BlackRock. Investments by a Fund in","page_number":111,"box":{"x":116,"y":485,"width":724,"height":13}},{"id":"47e7ba50-3fff-44c8-9f93-e52eb4813281","block_type":"box","text":"wholly owned investment entities created under the laws of certain countries will not be deemed an","page_number":111,"box":{"x":116,"y":501,"width":740,"height":12}},{"id":"0c2983b3-d34a-464e-9351-9ca8fbd84aa2","block_type":"box","text":"investment in other investment companies. Pursuant to guidance issued by the staff of the","page_number":111,"box":{"x":117,"y":516,"width":674,"height":13}},{"id":"f3f5dac8-b96b-4777-87bb-d085e2d0a4ae","block_type":"box","text":"Commission, fees and expenses of money market funds used for the investment of cash collateral","page_number":111,"box":{"x":117,"y":532,"width":733,"height":12}},{"id":"f37c2979-4808-4c6b-8327-631084d3f0c3","block_type":"box","text":"received in connection with loans of Fund securities are not treated as “acquired fund fees and","page_number":111,"box":{"x":117,"y":547,"width":706,"height":12}},{"id":"efaa3353-6c19-4345-a3b8-591f355b966f","block_type":"box","text":"expenses,” which are fees and expenses charged by other investment companies and pooled","page_number":111,"box":{"x":116,"y":563,"width":701,"height":12}},{"id":"34b0c24a-4da4-4aa5-8ae7-d638e48eda33","block_type":"box","text":"investment vehicles in which a Fund invests a portion of its assets.","page_number":111,"box":{"x":117,"y":578,"width":498,"height":12}},{"id":"791a4959-bf43-4f61-a795-fb18a020cc58","block_type":"box","text":"To the extent shares of a Fund are held by another f","page_number":111,"box":{"x":116,"y":609,"width":380,"height":13}},{"id":"c50a7a19-c068-4a4b-bd4a-f92f942175a3","block_type":"box","text":"und, the ability of the Fund it","page_number":111,"box":{"x":497,"y":609,"width":205,"height":13}},{"id":"13cb0e18-142e-4fc2-8d35-aaa1d5d62cc5","block_type":"box","text":"self to purchase other","page_number":111,"box":{"x":702,"y":609,"width":163,"height":12}},{"id":"983ea3e1-6822-4a8b-9217-6a179717c854","block_type":"box","text":"funds may be limited. In addition, a fund-of-funds (","page_number":111,"box":{"x":116,"y":625,"width":365,"height":12}},{"id":"12ec8c9f-58d0-4698-8e09-957e738abef3","block_type":"box","text":"e.g.","page_number":111,"box":{"x":482,"y":628,"width":25,"height":9}},{"id":"6365cb6f-84d0-421d-8f69-41fba8c88b41","block_type":"box","text":", an investment company that seeks to meet its","page_number":111,"box":{"x":510,"y":625,"width":347,"height":12}},{"id":"b1607214-4b91-413a-aa99-5b4ba2ea3d5c","block_type":"box","text":"investment objective by investing significantly in","page_number":111,"box":{"x":117,"y":640,"width":350,"height":13}},{"id":"54cc0750-1b07-42a1-8d29-e85529d9f98f","block_type":"box","text":"other investment companies)","page_number":111,"box":{"x":468,"y":640,"width":215,"height":13}},{"id":"c6cca2d2-e3f4-4701-9b48-9cce5d7a0062","block_type":"box","text":"may be limited in its ability","page_number":111,"box":{"x":684,"y":641,"width":195,"height":12}},{"id":"b58ee22a-a9d3-4847-9218-b38cc2c14855","block_type":"box","text":"to purchase underlying funds if such underlying f","page_number":111,"box":{"x":116,"y":656,"width":353,"height":12}},{"id":"a43e0bb8-6685-46bb-8911-5deb219719c0","block_type":"box","text":"unds themselves own shares of underlying funds.","page_number":111,"box":{"x":470,"y":656,"width":364,"height":12}},{"id":"dffea610-9181-47ff-8d22-391c29f11454","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate","page_number":111,"box":{"x":116,"y":687,"width":710,"height":12}},{"id":"8aa1e5c2-1208-4f47-9a95-69b143c1ea03","block_type":"box","text":"indirect foreign investment in developing countries, and certain of such countries, such as Thailand,","page_number":111,"box":{"x":117,"y":702,"width":736,"height":13}},{"id":"307f7cda-a838-4274-91b2-0ee3a8d672a1","block_type":"box","text":"South Korea, Chile and Brazil, have specifically authorized such funds. There also are investment","page_number":111,"box":{"x":116,"y":718,"width":725,"height":12}},{"id":"82d4577e-818f-48d9-ba85-170af2dca011","block_type":"box","text":"opportunities in certain of such countries in pooled vehicles that resemble open-end investment","page_number":111,"box":{"x":116,"y":734,"width":708,"height":11}},{"id":"7537d2fd-98a7-46a2-a6c5-ce94ef287948","block_type":"box","text":"companies. The restrictions on investments in securities of investment companies set forth above may","page_number":111,"box":{"x":116,"y":749,"width":760,"height":12}},{"id":"3be37862-4aa2-4906-a509-0adf8f571e43","block_type":"box","text":"limit opportunities for a Fund to invest indirectly in certain developing countries.","page_number":111,"box":{"x":117,"y":765,"width":585,"height":12}},{"id":"63247b0f-d746-454c-afb1-2ab5ca2032f7","block_type":"box","text":"Issuer Insolvency Risk.","page_number":111,"box":{"x":116,"y":796,"width":185,"height":12}},{"id":"f9d64b25-5982-44b5-9be2-d43bbace6382","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled","page_number":111,"box":{"x":307,"y":796,"width":532,"height":12}},{"id":"64349bdc-5971-4dba-831d-bf3bb953e9f8","block_type":"box","text":"issuers involves a high degree of credit and market risk, which may be heightened during an economic","page_number":111,"box":{"x":117,"y":811,"width":761,"height":12}},{"id":"787b94e2-cdfc-441d-af7e-30bce4a05a01","block_type":"box","text":"downturn or recession. Should an issuer of securities held by a Fund become involved in a bankruptcy","page_number":111,"box":{"x":116,"y":827,"width":765,"height":12}},{"id":"6946457c-1f0f-49a3-ae99-36fd71168765","block_type":"box","text":"proceeding, reorganization or financial restructuring, a wide variety of considerations make an","page_number":111,"box":{"x":117,"y":842,"width":700,"height":12}},{"id":"64e2143b-97f6-4d58-9a83-5da014547328","block_type":"box","text":"evaluation of the outcome of the Fund’s exposure to the issuer uncertain.","page_number":111,"box":{"x":116,"y":858,"width":548,"height":12}},{"id":"7e67c50a-d3ca-4492-bab1-212b87c2e79d","block_type":"box","text":"II-61","page_number":111,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"d83a3f2d-6488-4ffa-ba35-b653e95ac32f","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":111,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"8ca8582e-02b5-4107-bc80-6e8f3633352b","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that","page_number":112,"box":{"x":117,"y":87,"width":769,"height":12}},{"id":"e7cdb4bc-45d7-46e6-ad28-9b0b21c5308e","block_type":"box","text":"a Fund will receive any interest payments on the securities of the issuer. A Fund will be subject to","page_number":112,"box":{"x":116,"y":102,"width":728,"height":13}},{"id":"2a794499-ad24-41d7-8de8-1c0bf36e5929","block_type":"box","text":"significant uncertainty as to whether the reorganization or restructuring will be completed, and the Fund","page_number":112,"box":{"x":116,"y":118,"width":772,"height":12}},{"id":"339b2edf-721d-4d7b-8549-eb6a5f19e2db","block_type":"box","text":"may bear certain extraordinary expenses to protect and recover its investment. A Fund will also be","page_number":112,"box":{"x":117,"y":134,"width":735,"height":12}},{"id":"3a29db4b-9b96-495e-88ee-2318476da25d","block_type":"box","text":"subject to significant uncertainty as to when and in what manner and for what value the obligations","page_number":112,"box":{"x":116,"y":149,"width":737,"height":12}},{"id":"ba7cdbfb-15c5-42cf-a6a2-8b61f17908ea","block_type":"box","text":"evidenced by the securities of the issuer held by the Fund will eventually be satisfied.","page_number":112,"box":{"x":116,"y":165,"width":637,"height":12}},{"id":"64ae46ac-dc01-455d-8e29-80d859e3ea48","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer","page_number":112,"box":{"x":117,"y":196,"width":741,"height":12}},{"id":"bb954e4d-0bb7-4327-a5d5-67d73d8d24fb","block_type":"box","text":"held by the Fund, there can be no assurance that the securities or other assets received by a Fund in","page_number":112,"box":{"x":117,"y":211,"width":748,"height":12}},{"id":"68f226ba-7118-4f95-8960-752f7fa41b78","block_type":"box","text":"connection with such plan of reorganization or restructuring will not have a lower value or income","page_number":112,"box":{"x":116,"y":227,"width":717,"height":12}},{"id":"180b26ba-feb0-4576-b6c4-acdf3b62ea90","block_type":"box","text":"potential than may have been anticipated or no value. A Fund may be unable to enforce its claims or","page_number":112,"box":{"x":117,"y":242,"width":742,"height":12}},{"id":"6e4963f9-3964-4d62-bf19-68f686b34244","block_type":"box","text":"rights in any collateral or may have its claims or security interest in any collateral challenged, disallowed","page_number":112,"box":{"x":117,"y":258,"width":767,"height":12}},{"id":"3e76575c-31d2-44d3-96c7-5abece4c8ed0","block_type":"box","text":"or subordinated to the claims or security interests of other creditors. In addition, amendments to the U.S.","page_number":112,"box":{"x":116,"y":273,"width":772,"height":12}},{"id":"ef4ce15f-1bcf-45ec-a54f-f1d246d876a5","block_type":"box","text":"Bankruptcy Code or other relevant laws could alter the expected outcome or introduce greater","page_number":112,"box":{"x":117,"y":289,"width":695,"height":12}},{"id":"ec3342c8-18dd-42dd-b6cd-de60ece4dbde","block_type":"box","text":"uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":112,"box":{"x":117,"y":304,"width":716,"height":12}},{"id":"ec7900ff-2332-48c1-a3f6-612de6190198","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be","page_number":112,"box":{"x":117,"y":320,"width":716,"height":12}},{"id":"6927f643-467c-4233-b643-422fa85e0e4c","block_type":"box","text":"re-characterized or a Fund may receive different securities or other assets, including equity securities.","page_number":112,"box":{"x":117,"y":335,"width":752,"height":12}},{"id":"d0207827-3006-4f93-9931-137528f49363","block_type":"box","text":"These types of equity securities include, but are not limited to: common stock; preferred stock (including","page_number":112,"box":{"x":116,"y":351,"width":768,"height":12}},{"id":"b29d4a17-1843-4a38-adf0-57ae7976908b","block_type":"box","text":"convertible preferred stock); bonds, notes and debentures convertible into common or preferred stock;","page_number":112,"box":{"x":116,"y":366,"width":756,"height":12}},{"id":"58f2bf45-c8af-4dfd-97b3-e417323d5960","block_type":"box","text":"stock purchase warrants and rights; equity interests in trusts; and depositary receipts. Equity securities","page_number":112,"box":{"x":116,"y":382,"width":759,"height":12}},{"id":"97e7ca3c-2a18-4ab9-be35-ce2fd432918e","block_type":"box","text":"are subject to changes in value, and their value may be more volatile than those of other asset classes.","page_number":112,"box":{"x":116,"y":397,"width":764,"height":12}},{"id":"4e77e630-0256-40fd-9691-d9694e9aa11f","block_type":"box","text":"Holders of equity securities are subject to more risk than holders of debt securities because the status of","page_number":112,"box":{"x":117,"y":413,"width":771,"height":12}},{"id":"031df764-f10d-4e5f-81d8-2f0cb4d557c4","block_type":"box","text":"equity holders is subordinate to debtholders in an issuer’s capital structure. The value of equity","page_number":112,"box":{"x":116,"y":428,"width":701,"height":12}},{"id":"bef23751-aba8-4acf-88b1-ea4039a947cb","block_type":"box","text":"securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":112,"box":{"x":116,"y":444,"width":721,"height":12}},{"id":"86100b9b-94e8-4f7e-bff8-727ab68d2806","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":112,"box":{"x":116,"y":459,"width":764,"height":12}},{"id":"baba2874-50e5-4e7c-bd88-12a13252bcbd","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding,","page_number":112,"box":{"x":116,"y":490,"width":681,"height":12}},{"id":"8fb2a1b9-fac7-45ee-8e2b-c9a6b11dff73","block_type":"box","text":"reorganization or financial restructuring, the Fund may also be subject to additional risks associated with","page_number":112,"box":{"x":117,"y":506,"width":770,"height":12}},{"id":"21d30971-b566-47d4-a592-0fcfcc345675","block_type":"box","text":"the assets received. One example of assets that a Fund could receive is an interest in one or more","page_number":112,"box":{"x":116,"y":521,"width":730,"height":12}},{"id":"c1923acb-91ac-40b3-bdab-4abe82cc7c7f","block_type":"box","text":"loans made to the issuer as part of a workout agreed to by a consortium of lienholders and creditors of","page_number":112,"box":{"x":117,"y":537,"width":756,"height":12}},{"id":"bcc2d438-8c69-46da-88cf-9818e38910b1","block_type":"box","text":"the issuer. A Fund may receive such interests in loans to the extent permitted by the Investment","page_number":112,"box":{"x":116,"y":552,"width":710,"height":12}},{"id":"ac32f587-73f8-47b8-ab51-26c7086ff93c","block_type":"box","text":"Company Act.","page_number":112,"box":{"x":117,"y":568,"width":108,"height":12}},{"id":"bf82d915-b343-4992-986e-6bc5456382bb","block_type":"box","text":"Securities or other assets received in a reorganization","page_number":112,"box":{"x":116,"y":599,"width":387,"height":12}},{"id":"e3e1b417-6836-4c84-8a7a-8b4bc08c80e7","block_type":"box","text":"or restructuring typically entail a higher degree of risk","page_number":112,"box":{"x":503,"y":599,"width":380,"height":12}},{"id":"0aae3059-cb11-47dc-9fd9-de07d56e1026","block_type":"box","text":"than investments in securities of issuers that","page_number":112,"box":{"x":116,"y":614,"width":319,"height":10}},{"id":"8e45e3a6-e01b-4dd6-b26b-01a0806297ef","block_type":"box","text":"have not undergone a reorganization or restructuring and may","page_number":112,"box":{"x":436,"y":614,"width":446,"height":12}},{"id":"3563deef-6893-4110-8523-270ead4b841e","block_type":"box","text":"be subject to heavy selling or downward pricing pre","page_number":112,"box":{"x":117,"y":630,"width":363,"height":12}},{"id":"bd41b5cb-d21f-4a87-a89c-8a67f314f88d","block_type":"box","text":"ssure after completion of the reorganization or","page_number":112,"box":{"x":481,"y":630,"width":332,"height":12}},{"id":"737a5cd3-1b03-4e7f-8596-82545c9c02f9","block_type":"box","text":"restructuring. The post-reorganization/restructuring assets","page_number":112,"box":{"x":117,"y":645,"width":411,"height":12}},{"id":"280abb49-9e0a-444f-89b6-10211ca34756","block_type":"box","text":"and securities may also be illiquid and difficult to","page_number":112,"box":{"x":528,"y":645,"width":351,"height":12}},{"id":"f9a527b4-00c5-45cb-9a5c-50500f713ee4","block_type":"box","text":"sell or value. If a Fund participates in negotiations with","page_number":112,"box":{"x":116,"y":661,"width":384,"height":12}},{"id":"31792295-216a-4fd4-9999-d2e8a454e317","block_type":"box","text":"respect to a plan of reorganization or restructuring","page_number":112,"box":{"x":506,"y":661,"width":353,"height":12}},{"id":"b0e97731-ea06-475d-abf6-9738df31c6f6","block_type":"box","text":"with respect to securities of the issuer held by a","page_number":112,"box":{"x":116,"y":676,"width":336,"height":12}},{"id":"a205fbd2-73cf-4160-8727-75d896e296a6","block_type":"box","text":"Fund, the Fund also may be restricted from disposing such","page_number":112,"box":{"x":458,"y":676,"width":417,"height":12}},{"id":"0f6a6a22-5a8b-4b6f-ac5a-9ce172cb88f7","block_type":"box","text":"securities for a period of time. If a Fund becomes involved in such proceedings, the Fund may have more","page_number":112,"box":{"x":116,"y":692,"width":747,"height":12}},{"id":"8d9eaad1-76d2-451b-b873-0970846a683c","block_type":"box","text":"active participation in the affairs of the iss","page_number":112,"box":{"x":116,"y":707,"width":292,"height":12}},{"id":"3a042741-871f-4d52-b710-37dd91a068cb","block_type":"box","text":"uer than that assumed generally by an investor.","page_number":112,"box":{"x":409,"y":707,"width":337,"height":12}},{"id":"cb18ce90-eccf-4712-8912-68c90fbeff1d","block_type":"box","text":"Lease Obligations.","page_number":112,"box":{"x":116,"y":738,"width":148,"height":12}},{"id":"7b4fea10-ef26-4d81-929a-d94be66fd444","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase","page_number":112,"box":{"x":270,"y":738,"width":571,"height":12}},{"id":"9670f1d2-55c2-443e-b26c-8b3d9904145c","block_type":"box","text":"contract, or a conditional sales contract (“lease obligations”). The Manager will monitor the credit","page_number":112,"box":{"x":116,"y":754,"width":716,"height":12}},{"id":"ea20cc1d-5c11-485b-985b-8336cafa8766","block_type":"box","text":"standing of each borrower and each entity providing credit support and/or a put option relating to lease","page_number":112,"box":{"x":116,"y":769,"width":761,"height":12}},{"id":"418920d4-72ff-4038-a268-c81f804d3e0e","block_type":"box","text":"obligations.","page_number":112,"box":{"x":116,"y":785,"width":83,"height":12}},{"id":"e8a10473-1764-401f-a0b3-f9624517c04d","block_type":"box","text":"Life Settlement Investments.","page_number":112,"box":{"x":116,"y":816,"width":227,"height":9}},{"id":"af13ffb4-e0b2-4d02-a0f3-f55de0834484","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties,","page_number":112,"box":{"x":349,"y":816,"width":514,"height":12}},{"id":"ed6e315e-0e9f-447b-be9e-a66ee454d937","block_type":"box","text":"such as the Fund, of existing life insurance contracts for more than their cash surrender value but less","page_number":112,"box":{"x":116,"y":831,"width":763,"height":12}},{"id":"f4797bb5-d86f-47fd-a2bb-395d6f5b2373","block_type":"box","text":"than the net benefits to be paid under the policies. When a Fund acquires such a contract, it pays the","page_number":112,"box":{"x":116,"y":847,"width":756,"height":12}},{"id":"4e8c47bd-f0d4-458e-833a-a99dddf8f5dc","block_type":"box","text":"policy premiums in return for the expected receipt of the net benefit as the beneficiary under the policy.","page_number":112,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"4a5ab03e-71ac-46e8-b3ad-c0e67ef4763a","block_type":"box","text":"Investments in these contracts involve certain risks, including liquidity risk, credit risk of the insurance","page_number":112,"box":{"x":117,"y":878,"width":756,"height":12}},{"id":"09ad4472-d30f-4a76-86be-f6d2c0dcf55f","block_type":"box","text":"II-62","page_number":112,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"a8f4aee4-c335-4665-93d6-4f05389d6483","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":112,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"d148feef-439c-42da-91a4-14bfdcf1ca98","block_type":"box","text":"company, and inaccurate estimations of life expectancy of the insured individuals (viators). These","page_number":113,"box":{"x":116,"y":87,"width":729,"height":12}},{"id":"1d478a08-f2ed-4cba-948d-9246d9bfaa57","block_type":"box","text":"policies may be considered illiquid because they are bought and sold in a secondary market through","page_number":113,"box":{"x":117,"y":103,"width":748,"height":12}},{"id":"860f99f6-3596-44f9-be20-9036b8b17817","block_type":"box","text":"life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a policy, the Fund","page_number":113,"box":{"x":117,"y":118,"width":760,"height":12}},{"id":"894ee6f5-6168-4c36-980e-37db9c37b95e","block_type":"box","text":"may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":113,"box":{"x":117,"y":134,"width":708,"height":12}},{"id":"fe1fdd71-b7ac-4566-a009-29aa30dcfeb8","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund","page_number":113,"box":{"x":117,"y":149,"width":758,"height":12}},{"id":"2dc441f9-3efe-42f4-ac40-1b7576d5b2ce","block_type":"box","text":"may encounter losses on its investments if there is an inaccurate estimation of the life expectancies of","page_number":113,"box":{"x":117,"y":165,"width":761,"height":12}},{"id":"52cfd891-e183-4a5f-807a-0e993a95b9a7","block_type":"box","text":"viators. A Fund intends to reduce this life expectancy risk by investing only in contracts where the life","page_number":113,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"90099097-486d-4cdf-8428-7d2dd8155218","block_type":"box","text":"expectancy was reviewed by an experienced actuary, as well as by diversifying its investments across","page_number":113,"box":{"x":116,"y":196,"width":763,"height":12}},{"id":"4513420b-316f-43cb-b20f-87e450db0ce4","block_type":"box","text":"viators of varying ages and medical profiles. In addition, it is unclear whether the income from life","page_number":113,"box":{"x":116,"y":211,"width":725,"height":12}},{"id":"83081ed4-7031-40fe-8004-821118fd19b4","block_type":"box","text":"settlements is qualifying income for purposes of the IRS 90% gross income test a Fund must satisfy","page_number":113,"box":{"x":116,"y":227,"width":746,"height":12}},{"id":"e42ee655-2450-4d2a-a9e8-b2784ffb6ff7","block_type":"box","text":"each year to qualify as a regulated investment company. A Fund intends to monitor its investments to","page_number":113,"box":{"x":116,"y":242,"width":758,"height":12}},{"id":"ded17100-6bda-4ec2-8f56-822f63c34190","block_type":"box","text":"ensure that the Fund remains qualified as a regulated investment company.","page_number":113,"box":{"x":116,"y":258,"width":567,"height":12}},{"id":"edc1723c-a1ba-493a-a6cb-31e76bab4bf8","block_type":"box","text":"Liquidity Risk Management.","page_number":113,"box":{"x":116,"y":289,"width":221,"height":12}},{"id":"01ec3364-853b-4349-917c-ea64d98b29c6","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”)","page_number":113,"box":{"x":338,"y":289,"width":517,"height":12}},{"id":"ee7f3159-2adf-43d6-b744-03b3354e4dab","block_type":"box","text":"requires open-end funds, such as the Funds, to adopt a liquidity risk management program and","page_number":113,"box":{"x":117,"y":304,"width":712,"height":12}},{"id":"7aa38b73-49fe-4b88-b051-2c1e5d49cb7e","block_type":"box","text":"enhance disclosures regarding fund liquidity. As required by the Liquidity Rule, the Funds have","page_number":113,"box":{"x":116,"y":320,"width":709,"height":12}},{"id":"1533eddb-b52b-4252-9df8-c4fa117b1614","block_type":"box","text":"implemented a liquidity risk management program (the “Liquidity Program”), and the Boards of","page_number":113,"box":{"x":117,"y":335,"width":704,"height":12}},{"id":"945403e8-8939-4249-b41f-58268aeecf96","block_type":"box","text":"Directors of the Funds, including a majority of the independent Directors, have appointed the Manager","page_number":113,"box":{"x":117,"y":351,"width":762,"height":12}},{"id":"ac87891f-fb1b-48e1-a885-d4dcb40e1eff","block_type":"box","text":"as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity Program, the","page_number":113,"box":{"x":116,"y":366,"width":745,"height":12}},{"id":"c725f326-8b29-482e-b110-9aa7af4fa4fc","block_type":"box","text":"Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":113,"box":{"x":117,"y":382,"width":746,"height":12}},{"id":"50704699-e8b1-49f1-9865-6ed40fccef41","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid","page_number":113,"box":{"x":117,"y":397,"width":750,"height":12}},{"id":"11382133-c9a1-4456-aafa-97c762746f52","block_type":"box","text":"investment” or “illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund","page_number":113,"box":{"x":117,"y":413,"width":736,"height":12}},{"id":"516cc2d0-f896-46dc-9bb9-5e5263074851","block_type":"box","text":"could not meet requests to redeem shares issued by the Fund without significant dilution of the","page_number":113,"box":{"x":116,"y":428,"width":709,"height":12}},{"id":"23f7f245-fa36-4981-a8a5-93a00dc7eefd","block_type":"box","text":"remaining investors’ interests in the Fund. The liquidity of a Fund’s portfolio investments is determined","page_number":113,"box":{"x":117,"y":444,"width":762,"height":12}},{"id":"fc35cbb0-d14f-456d-a1fc-eee8ea4b101e","block_type":"box","text":"based on relevant market, trading and investment-specific considerations under the Liquidity Program.","page_number":113,"box":{"x":117,"y":459,"width":764,"height":12}},{"id":"87da252c-5a76-46c1-9adf-f8cc67c107b3","block_type":"box","text":"To the extent that an investment is deemed to be an illiquid investment or a less liquid investment, a","page_number":113,"box":{"x":116,"y":475,"width":747,"height":12}},{"id":"0521a309-245d-4789-b9f6-d8632188555d","block_type":"box","text":"Fund can expect to be exposed to greater liquidity risk.","page_number":113,"box":{"x":117,"y":490,"width":411,"height":12}},{"id":"ce56646f-fd63-4788-bb2a-dbcfd1566d69","block_type":"box","text":"Master Limited Partnerships.","page_number":113,"box":{"x":116,"y":521,"width":230,"height":12}},{"id":"fcab5c8b-ebe5-474e-b403-6e7e5849e63c","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships","page_number":113,"box":{"x":347,"y":521,"width":538,"height":12}},{"id":"09c17673-e46b-48d3-b239-7ec4ce56754a","block_type":"box","text":"(“MLPs”) which are limited partnerships or limited liability companies taxable as partnerships. MLPs","page_number":113,"box":{"x":117,"y":537,"width":741,"height":12}},{"id":"af771de0-0a99-4575-b5a1-1fa1229d0721","block_type":"box","text":"may derive income and gains from the exploration, development, mining or production, processing,","page_number":113,"box":{"x":117,"y":552,"width":739,"height":12}},{"id":"f2fea6c3-71d0-4b14-a34a-2f0c697f7a1b","block_type":"box","text":"refining, transportation (including pipelines transporting gas, oil, or products thereof), or the marketing","page_number":113,"box":{"x":117,"y":568,"width":758,"height":12}},{"id":"2e2c4a12-6259-4929-9ed1-aa6649ee30ea","block_type":"box","text":"of any mineral or natural resources. MLPs generally have two classes of owners, the general partner","page_number":113,"box":{"x":116,"y":583,"width":752,"height":12}},{"id":"b489d4cc-91fc-4184-83fb-c545c307c7e9","block_type":"box","text":"and limited partners. When investing in an MLP, a Fund intends to purchase publicly traded common","page_number":113,"box":{"x":116,"y":599,"width":753,"height":12}},{"id":"1125c40b-a900-432d-810f-872ca51ebdae","block_type":"box","text":"units issued to limited partners of the MLP. The general partner is typically owned by a major energy","page_number":113,"box":{"x":117,"y":614,"width":749,"height":12}},{"id":"81809469-e361-4636-b734-f3fc607d0f35","block_type":"box","text":"company, an investment fund, the direct management of the MLP or is an entity owned by one or more","page_number":113,"box":{"x":116,"y":630,"width":769,"height":12}},{"id":"61444064-72c8-48f7-b90e-d5df95291b3a","block_type":"box","text":"of such parties. The general partner may be structured as a private or publicly traded corporation or","page_number":113,"box":{"x":116,"y":645,"width":744,"height":12}},{"id":"28baf7d6-16de-4ad6-9934-9a87b64afde1","block_type":"box","text":"other entity. The general partner typically controls the operations and management of the MLP through","page_number":113,"box":{"x":116,"y":661,"width":762,"height":12}},{"id":"38f9405d-6987-45d2-859c-a704cfc71719","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and","page_number":113,"box":{"x":116,"y":676,"width":683,"height":12}},{"id":"a331c197-046e-4d87-b7fa-b6c24aeafea6","block_type":"box","text":"subordinated units. Limited partners own the remainder of the partnership, through ownership of","page_number":113,"box":{"x":116,"y":692,"width":714,"height":12}},{"id":"687501af-3e9f-4fca-8a56-34e179d36c39","block_type":"box","text":"common units, and have a limited role in the partnership’s operations and management.","page_number":113,"box":{"x":116,"y":707,"width":652,"height":12}},{"id":"ee21f445-6207-4b6c-9d0f-dfdee5c741a8","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to","page_number":113,"box":{"x":117,"y":738,"width":764,"height":12}},{"id":"6b72829d-7c1a-469e-8c7c-794261da0241","block_type":"box","text":"receive quarterly cash distributions up to an established minimum amount (“minimum quarterly","page_number":113,"box":{"x":117,"y":754,"width":701,"height":12}},{"id":"5a572440-becb-417f-a884-7ab6ca47bb00","block_type":"box","text":"distributions” or “MQD”). Common and general partner interests also accrue arrearages in distributions","page_number":113,"box":{"x":116,"y":769,"width":762,"height":12}},{"id":"da27d93c-805c-4ad9-80ea-32307cd011b9","block_type":"box","text":"to the extent the MQD is not paid. Once common and general partner interests have been paid,","page_number":113,"box":{"x":116,"y":785,"width":708,"height":12}},{"id":"0a76744a-77df-40df-8553-ce0335ad8a37","block_type":"box","text":"subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue","page_number":113,"box":{"x":116,"y":800,"width":750,"height":12}},{"id":"09567eca-d369-4586-a142-64818c62c560","block_type":"box","text":"arrearages. Distributable cash in excess of the MQD paid to both common and subordinated units is","page_number":113,"box":{"x":116,"y":816,"width":743,"height":12}},{"id":"6d326998-b381-40a7-9668-34a86f0c15b2","block_type":"box","text":"distributed to both common and subordinated units generally on a pro rata basis. The general partner","page_number":113,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"228b4184-1667-4cea-8a7f-7ca1b6ab592c","block_type":"box","text":"is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":113,"box":{"x":117,"y":847,"width":712,"height":12}},{"id":"33fc7d76-7cd6-4fa5-a6a6-e92f4b9792d4","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the","page_number":113,"box":{"x":117,"y":862,"width":751,"height":12}},{"id":"aaadfa46-28f7-4197-8f48-d58b4880a697","block_type":"box","text":"general partner increases cash distributions to the limited partners, the general partner receives an","page_number":113,"box":{"x":116,"y":878,"width":739,"height":12}},{"id":"3c02fafd-6ef4-44b9-be17-cc978e778496","block_type":"box","text":"II-63","page_number":113,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"eb174047-b65e-4806-9aa2-d0d9706dbaf8","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":113,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"7bf256a7-c211-41fe-a93f-37b259ef0a83","block_type":"box","text":"increasingly higher percentage of the incremental cash distributions. A common arrangement provides","page_number":114,"box":{"x":117,"y":87,"width":764,"height":12}},{"id":"83743861-6ce4-4774-9e19-b414a61410e9","block_type":"box","text":"that the general partner can reach a tier where it receives 50% of every incremental dollar paid to","page_number":114,"box":{"x":116,"y":102,"width":727,"height":13}},{"id":"5ea1430c-26c4-4317-9a05-907c06f66100","block_type":"box","text":"common and subordinated unit holders. These incentive distributions encourage the general partner to","page_number":114,"box":{"x":116,"y":118,"width":767,"height":12}},{"id":"c968386c-0c2a-469b-b989-d40c47fd4fbb","block_type":"box","text":"streamline costs, increase capital expenditures and acquire assets in order to increase the","page_number":114,"box":{"x":116,"y":134,"width":676,"height":11}},{"id":"adeb2ab2-87e0-4816-9396-9b3ee8fd9e7a","block_type":"box","text":"partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers. Such","page_number":114,"box":{"x":117,"y":149,"width":736,"height":12}},{"id":"f7ad1bfa-85d7-4533-8ab6-f8ccf29b7075","block_type":"box","text":"results benefit all security holders of the MLP.","page_number":114,"box":{"x":117,"y":165,"width":343,"height":12}},{"id":"c473bd28-1efe-4114-b5da-6aa16c9c6a01","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and","page_number":114,"box":{"x":117,"y":196,"width":748,"height":11}},{"id":"5c79a7e6-aec7-4828-9469-4ed1516fc0bc","block_type":"box","text":"traded on U.S. securities exchanges, with their value fluctuating predominantly based on prevailing","page_number":114,"box":{"x":116,"y":211,"width":739,"height":12}},{"id":"61113529-ccd4-42d4-8b64-4c9eee4b3a45","block_type":"box","text":"market conditions and the success of the MLP. Certain Funds intend to purchase common units in","page_number":114,"box":{"x":117,"y":227,"width":733,"height":11}},{"id":"0f38a375-d801-4317-9fe8-171b21801a35","block_type":"box","text":"market transactions. Unlike owners of common stock of a corporation, owners of common units have","page_number":114,"box":{"x":117,"y":242,"width":752,"height":12}},{"id":"5e68b8ef-b5e8-400f-ad1f-b22b1ec03fe9","block_type":"box","text":"limited voting rights and have no ability to annually elect directors. In the event of liquidation, common","page_number":114,"box":{"x":117,"y":258,"width":758,"height":12}},{"id":"d1ba9821-2db1-4fab-92c4-f7777cbb6952","block_type":"box","text":"units have preference over subordinated units, but not over debt or preferred units, to the remaining","page_number":114,"box":{"x":117,"y":273,"width":744,"height":12}},{"id":"4b15d908-a517-41e7-9009-fd1dd6f4dba9","block_type":"box","text":"assets of the MLP.","page_number":114,"box":{"x":116,"y":289,"width":144,"height":9}},{"id":"25b16cd3-9267-442c-b373-f10da263a820","block_type":"box","text":"Merger Transaction Risk.","page_number":114,"box":{"x":116,"y":320,"width":200,"height":12}},{"id":"da31a8ca-e233-47e6-9bdd-6020c37c0834","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger","page_number":114,"box":{"x":317,"y":320,"width":531,"height":12}},{"id":"d7a7939f-6b39-4f78-b8c1-bc2f7b7aa5f5","block_type":"box","text":"transaction prior to the consummation of such transaction. In that circumstance, a Fund would expect","page_number":114,"box":{"x":116,"y":335,"width":757,"height":12}},{"id":"33f2e905-7054-45f5-a923-e7bb4acdd163","block_type":"box","text":"to receive an amount (whether in cash, stock of the acquiring company or a combination of both) in","page_number":114,"box":{"x":116,"y":351,"width":740,"height":12}},{"id":"9685afbf-fdcf-48e9-ac01-27d123ec4462","block_type":"box","text":"excess of the purchase price paid by the Fund for the target company’s stock. However, a Fund is","page_number":114,"box":{"x":116,"y":366,"width":733,"height":12}},{"id":"bed1c831-59ec-4fa5-8bec-7faec81acddb","block_type":"box","text":"subject to the risk that the merger transaction may be canceled, delayed or restructured, in which case","page_number":114,"box":{"x":116,"y":382,"width":766,"height":12}},{"id":"3a58d19a-8138-42e8-8d75-fb643f3cbe0b","block_type":"box","text":"a Fund’s holding of the target company’s stock may not result in any profit for the Fund and may lose","page_number":114,"box":{"x":116,"y":397,"width":754,"height":12}},{"id":"4aaef499-2ea5-4530-82ce-15bad16af004","block_type":"box","text":"significant value.","page_number":114,"box":{"x":116,"y":413,"width":129,"height":12}},{"id":"7fd3ccc4-8e65-4a32-b544-d792b84f4844","block_type":"box","text":"Money Market Obligations of Domestic Banks,","page_number":114,"box":{"x":116,"y":444,"width":355,"height":12}},{"id":"c245061f-74f1-438c-970f-c223e4ad56ea","block_type":"box","text":"Foreign Banks and Foreign Branches of U.S. Banks.","page_number":114,"box":{"x":472,"y":444,"width":404,"height":12}},{"id":"a6dd900e-0007-48c9-b7c8-cb0fef91f7b6","block_type":"box","text":"Certain Funds may purchase bank obligations, such as","page_number":114,"box":{"x":117,"y":459,"width":396,"height":12}},{"id":"8129ab5f-6e5c-4f88-bf6a-da1b491dd4f7","block_type":"box","text":"certificates of deposit, notes, bankers’ acceptances","page_number":114,"box":{"x":513,"y":459,"width":367,"height":12}},{"id":"12f792f5-bcc2-4302-bd50-ce940dbded7b","block_type":"box","text":"and time deposits, including instruments issued or suppo","page_number":114,"box":{"x":116,"y":475,"width":403,"height":12}},{"id":"aa25d16c-c816-41f4-923c-a4f0a3941e62","block_type":"box","text":"rted by the credit of U.S. or foreign banks or","page_number":114,"box":{"x":521,"y":475,"width":315,"height":12}},{"id":"4efa32bc-536f-4e92-bb15-3d57028385de","block_type":"box","text":"savings institutions having total assets at the time","page_number":114,"box":{"x":116,"y":490,"width":356,"height":12}},{"id":"68747579-c694-4514-adc5-9afbae700112","block_type":"box","text":"of purchase in excess of $1 billion. These obligations may","page_number":114,"box":{"x":472,"y":489,"width":415,"height":13}},{"id":"c1dec194-9b48-46ab-9835-13abcdf4deb8","block_type":"box","text":"be general obligations of the parent bank","page_number":114,"box":{"x":117,"y":506,"width":290,"height":12}},{"id":"6d88e380-7261-4381-a47a-e2005275331e","block_type":"box","text":"k or may be limited to the issuing branch or subsidiary by the terms","page_number":114,"box":{"x":407,"y":506,"width":473,"height":12}},{"id":"b757dd0c-2161-44e0-954a-a338dea0a130","block_type":"box","text":"of a specific obligation or by gov","page_number":114,"box":{"x":116,"y":521,"width":228,"height":12}},{"id":"d496ee12-b8cf-4364-8b0e-73b4717fcc4d","block_type":"box","text":"ernment regulation. The assets of","page_number":114,"box":{"x":344,"y":521,"width":244,"height":12}},{"id":"0e7923e0-9d3a-4a3f-ac86-62f3968497f6","block_type":"box","text":"a bank or savings institution will be","page_number":114,"box":{"x":588,"y":521,"width":251,"height":12}},{"id":"cbf4b12b-d68d-46c6-b2b2-8b39d87c7a29","block_type":"box","text":"deemed to include the assets of its domestic and fore","page_number":114,"box":{"x":116,"y":537,"width":380,"height":9}},{"id":"2db4e355-3f6a-4550-b41a-8f6630eae576","block_type":"box","text":"ign branches for purposes of a Fund’s investment","page_number":114,"box":{"x":497,"y":537,"width":356,"height":12}},{"id":"509750e7-5e57-446f-864a-104b0d9c5efe","block_type":"box","text":"policies. Investments in short-term bank obligations","page_number":114,"box":{"x":117,"y":552,"width":368,"height":12}},{"id":"a122e84a-fee6-4bf9-a225-ba515452e904","block_type":"box","text":"may include obligations of foreign banks and domestic","page_number":114,"box":{"x":485,"y":552,"width":390,"height":12}},{"id":"64a9801f-ad80-4d4d-bd88-f3ec2a74e955","block_type":"box","text":"branches of foreign banks, and also foreign branches of domestic banks.","page_number":114,"box":{"x":117,"y":568,"width":521,"height":12}},{"id":"5ce6af76-6744-448e-9c13-81576871e6d0","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of","page_number":114,"box":{"x":116,"y":599,"width":727,"height":12}},{"id":"34d4dcd8-c232-41e4-ae8b-8f0b5ff6eb3f","block_type":"box","text":"domestic or foreign corporations and banks, and may acquire commercial obligations issued by","page_number":114,"box":{"x":116,"y":614,"width":713,"height":12}},{"id":"619ba5f7-16a7-4c5c-a5f8-253b640fa7f7","block_type":"box","text":"Canadian corporations and Canadian counterparts of U.S. corporations, as well as Europaper, which is","page_number":114,"box":{"x":117,"y":630,"width":769,"height":12}},{"id":"8c3591e6-cdcc-4162-92c4-76a95ebd7731","block_type":"box","text":"U.S. dollar-denominated commercial paper of a foreign issuer.","page_number":114,"box":{"x":117,"y":645,"width":466,"height":12}},{"id":"16f07c55-2234-4ed1-bbdd-5b06e86ba652","block_type":"box","text":"Money Market Securities.","page_number":114,"box":{"x":116,"y":676,"width":201,"height":12}},{"id":"59a0195f-7e7c-4808-b460-9d491a75f3d0","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S.","page_number":114,"box":{"x":323,"y":676,"width":553,"height":12}},{"id":"278b0e1b-0aee-4b0a-bcbe-671d9efe3314","block_type":"box","text":"dollar-denominated instruments, such as government, bank, commercial and other obligations that are","page_number":114,"box":{"x":116,"y":692,"width":760,"height":12}},{"id":"037b00bb-f046-4107-a295-2a1f71ac2138","block_type":"box","text":"available in the money markets. In particular, the Funds may invest in:","page_number":114,"box":{"x":116,"y":707,"width":519,"height":12}},{"id":"da6b6914-a011-4159-8cc7-b119076be930","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks","page_number":114,"box":{"x":150,"y":738,"width":729,"height":12}},{"id":"271f9b9b-1ead-4fd1-a8d8-e893759270a3","block_type":"box","text":"or savings institutions with total assets in excess of $1 billion (including obligations of foreign","page_number":114,"box":{"x":184,"y":753,"width":684,"height":13}},{"id":"4780d2b0-d7d8-4394-8c45-6c67ce34d1f8","block_type":"box","text":"branches of such banks);","page_number":114,"box":{"x":184,"y":769,"width":186,"height":12}},{"id":"bdba746d-168c-4a56-ae8c-f7092277df7c","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign","page_number":114,"box":{"x":150,"y":792,"width":728,"height":13}},{"id":"1cc5fdc3-f2ec-4a7d-a752-f1b2fd9666a4","block_type":"box","text":"corporations and other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2","page_number":114,"box":{"x":184,"y":808,"width":686,"height":12}},{"id":"d769a6c9-61df-4099-9c17-86682f29f760","block_type":"box","text":"or higher by Moody’s or F-2 or higher by Fitch, as well as high quality corporate bonds rated","page_number":114,"box":{"x":184,"y":824,"width":681,"height":12}},{"id":"fc8d6fd7-1ec5-4aba-9bf7-5948680683b0","block_type":"box","text":"(at the time of purchase) A or higher by those rating agencies;","page_number":114,"box":{"x":184,"y":839,"width":465,"height":12}},{"id":"c089e236-78e2-4586-9528-7977e5bb53a2","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments","page_number":114,"box":{"x":150,"y":862,"width":726,"height":12}},{"id":"ccc8b73e-8ec1-4b70-9e18-5bb00b4459fb","block_type":"box","text":"described in (b) above as determined by the Fund’s Manager;","page_number":114,"box":{"x":184,"y":878,"width":463,"height":12}},{"id":"c74e5038-3b7d-4bc0-9710-8cd946f105d0","block_type":"box","text":"II-64","page_number":114,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"6cb1080e-d492-4f11-a720-2e7cf2b13eb9","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":114,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"0e1596e3-1d6d-48a5-b97f-b23f1461577d","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment","page_number":115,"box":{"x":150,"y":87,"width":730,"height":12}},{"id":"2dcebf51-c78a-4796-9751-2c77f6a3249e","block_type":"box","text":"purchase obligations and credit card receivables);","page_number":115,"box":{"x":184,"y":102,"width":374,"height":13}},{"id":"57387ae4-eaa9-466c-8a88-df9d5ef7c634","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its","page_number":115,"box":{"x":150,"y":126,"width":722,"height":12}},{"id":"65e2afe9-b701-4365-8b90-a554c9277a6a","block_type":"box","text":"agencies or authorities and related custodial receipts;","page_number":115,"box":{"x":184,"y":141,"width":401,"height":12}},{"id":"0e7df269-fac3-4ca6-95d6-2b19f8535840","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political","page_number":115,"box":{"x":150,"y":165,"width":719,"height":12}},{"id":"f88f78b0-d9aa-46ad-ba68-5c65265c9b07","block_type":"box","text":"subdivisions, agencies or authorities;","page_number":115,"box":{"x":184,"y":180,"width":279,"height":12}},{"id":"3312c436-cb46-45f6-88a2-b1c6a8da064e","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":115,"box":{"x":150,"y":203,"width":561,"height":12}},{"id":"084bdc89-564c-4a76-b7e1-8a54f8549e9b","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":115,"box":{"x":150,"y":227,"width":560,"height":12}},{"id":"adb261d6-44a8-4062-a743-49b75ba7ae84","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":115,"box":{"x":150,"y":250,"width":469,"height":12}},{"id":"bca95baf-5390-4eb2-a611-f6f45fe95667","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S.","page_number":115,"box":{"x":150,"y":273,"width":736,"height":12}},{"id":"1e1cc588-f105-4c89-a9d5-13c17bc2c031","block_type":"box","text":"Government or one of its agencies or authorities or which otherwise depend directly or","page_number":115,"box":{"x":184,"y":289,"width":646,"height":12}},{"id":"26cb5a95-2575-478c-abb6-be1f54de2dc0","block_type":"box","text":"indirectly on the credit of the United States;","page_number":115,"box":{"x":184,"y":304,"width":325,"height":12}},{"id":"4ed3fdda-c3e5-42ac-9dc0-a654d102a97f","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or","page_number":115,"box":{"x":150,"y":327,"width":730,"height":12}},{"id":"7e44a161-0ad9-43d7-86e6-19b6a938d5f0","block_type":"box","text":"higher by Moody’s, SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":115,"box":{"x":184,"y":343,"width":563,"height":12}},{"id":"915dfb6b-a266-45ad-ac4b-c312136d95ee","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by","page_number":115,"box":{"x":150,"y":366,"width":675,"height":12}},{"id":"abef5219-0e36-4b9d-9853-d2f8c174a5e0","block_type":"box","text":"Moody’s, A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":115,"box":{"x":184,"y":382,"width":428,"height":12}},{"id":"494ad9c2-e41d-4fb5-b182-b0c4e9fce1d3","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":115,"box":{"x":150,"y":405,"width":488,"height":12}},{"id":"b84b6bb1-e967-488e-8556-d49d72891bad","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments","page_number":115,"box":{"x":150,"y":428,"width":713,"height":12}},{"id":"64a4ea67-cbda-4453-b6f8-a290fe476f62","block_type":"box","text":"described above, as determined by the Fund’s Manager under guidelines established by the","page_number":115,"box":{"x":184,"y":444,"width":688,"height":12}},{"id":"e6133564-38f5-45e4-86a3-693d7c6f78e0","block_type":"box","text":"Board; and","page_number":115,"box":{"x":184,"y":459,"width":86,"height":11}},{"id":"98f12ace-633d-45d1-afd5-280e764464ee","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S.","page_number":115,"box":{"x":150,"y":482,"width":693,"height":12}},{"id":"7ef3f4b9-fcff-45af-bf64-6a50ee3e19bb","block_type":"box","text":"Government or an agency or instrumentality thereof or which otherwise depend directly or","page_number":115,"box":{"x":184,"y":498,"width":671,"height":12}},{"id":"1e0a40bb-6658-4146-bd11-8491215de5c3","block_type":"box","text":"indirectly on the credit of the United States.","page_number":115,"box":{"x":184,"y":513,"width":325,"height":12}},{"id":"cd986d4a-8562-4ccb-9585-39c58fbb2339","block_type":"box","text":"Mortgage-Related Securities.","page_number":115,"box":{"x":116,"y":544,"width":236,"height":12}},{"id":"e45b4f37-00e5-45dc-9cdb-697f2b731177","block_type":"box","text":"Mortgage-Backed Securities.","page_number":115,"box":{"x":116,"y":568,"width":214,"height":12}},{"id":"453d2f16-746c-4ae3-adce-e3e8f386fd9a","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in","page_number":115,"box":{"x":332,"y":568,"width":544,"height":12}},{"id":"cb345551-7564-48bb-ae0e-01b0d97f0ec6","block_type":"box","text":"which payments of both principal and interest on the securities are generally made monthly, in effect","page_number":115,"box":{"x":116,"y":583,"width":749,"height":12}},{"id":"a8393749-f6a7-4b0d-a3ff-71c9ccf24622","block_type":"box","text":"“passing through” monthly payments made by borrowers on the residential or commercial mortgage","page_number":115,"box":{"x":116,"y":599,"width":745,"height":12}},{"id":"63760c0f-ca6e-4a72-83af-6462caf25d96","block_type":"box","text":"loans that underlie the securities (net of any fees paid to the issuer or guarantor of the securities).","page_number":115,"box":{"x":117,"y":614,"width":728,"height":12}},{"id":"0d8f935c-746a-4479-89a0-3550080d4011","block_type":"box","text":"Mortgage-backed securities differ from other forms of debt securities, which normally provide for","page_number":115,"box":{"x":117,"y":630,"width":718,"height":12}},{"id":"493aa0c7-44fa-44a7-a4cf-8e9e317a11c1","block_type":"box","text":"periodic payment of interest in fixed amounts with principal payments at maturity or specified call","page_number":115,"box":{"x":117,"y":645,"width":721,"height":12}},{"id":"2e4bff37-db9d-45e6-a895-70432afc9768","block_type":"box","text":"dates.","page_number":115,"box":{"x":116,"y":661,"width":44,"height":9}},{"id":"591087b0-53f5-4a75-b94f-146dc0329c5e","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate","page_number":115,"box":{"x":117,"y":692,"width":731,"height":12}},{"id":"ff619c5e-d41a-48b3-bca6-32e346f54403","block_type":"box","text":"securities; that is, they may lose value if the value of the underlying real estate to which a pool of","page_number":115,"box":{"x":116,"y":707,"width":718,"height":12}},{"id":"3d2d20e8-656c-4209-8fbc-c39d73f10c6f","block_type":"box","text":"mortgages relates declines. In addition, investments in mortgage-backed securities involve certain","page_number":115,"box":{"x":117,"y":723,"width":726,"height":12}},{"id":"315c85de-2161-4ced-bf4c-4522c89fc093","block_type":"box","text":"specific risks. These risks include the failure of a party to meet its commitments under the related","page_number":115,"box":{"x":116,"y":738,"width":720,"height":12}},{"id":"68e01305-7014-4abe-8e10-b0f9f97496b7","block_type":"box","text":"operative documents, adverse interest rate changes and the effects of prepayments on mortgage cash","page_number":115,"box":{"x":116,"y":754,"width":762,"height":12}},{"id":"c03d941c-c073-4aa5-a82f-5959abe16914","block_type":"box","text":"flows. Mortgage-backed securities are “pass-through” securities, meaning that principal and interest","page_number":115,"box":{"x":116,"y":769,"width":740,"height":12}},{"id":"d6faa851-7ac7-4326-8f3c-ba73c98159a9","block_type":"box","text":"payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":115,"box":{"x":117,"y":785,"width":687,"height":12}},{"id":"9b8b09f0-0876-4bb6-b04f-06c9629501a5","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly","page_number":115,"box":{"x":116,"y":800,"width":720,"height":12}},{"id":"2b3cc9fa-a3cd-4771-80f9-52647a3c1642","block_type":"box","text":"sensitive to changes in prevailing interest rates, and, like other fixed income investments, the ability of","page_number":115,"box":{"x":116,"y":816,"width":757,"height":12}},{"id":"04eb24b1-956c-46ca-8622-5dbc1d0eec89","block_type":"box","text":"a Fund to utilize these instruments successfully may depend in part upon the ability of the Manager to","page_number":115,"box":{"x":116,"y":831,"width":760,"height":12}},{"id":"c95cdbf1-2ba5-4618-a5b3-8cd028690856","block_type":"box","text":"forecast interest rates and other economic factors correctly. The value of mortgage-backed securities,","page_number":115,"box":{"x":116,"y":847,"width":761,"height":12}},{"id":"f99e34ff-53fe-490e-ae87-0d5e8e4430d1","block_type":"box","text":"like that of traditional fixed-income securities, typically increases when interest rates fall and decreases","page_number":115,"box":{"x":117,"y":862,"width":768,"height":12}},{"id":"9293f6c1-1401-4769-8b61-5cec32b112d5","block_type":"box","text":"when interest rates rise. However, mortgage-backed securities differ from traditional fixed-income","page_number":115,"box":{"x":116,"y":878,"width":729,"height":12}},{"id":"84f571b9-26d6-4c9f-99d5-c2e6e81e0d08","block_type":"box","text":"II-65","page_number":115,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2ab8660f-ef34-4f88-b1a7-886ab5407b2a","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":115,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"514b2f59-711a-484a-b38f-36b2aa308868","block_type":"box","text":"securities because of their potential for prepayment without penalty. The price paid by a Fund for its","page_number":116,"box":{"x":116,"y":87,"width":745,"height":12}},{"id":"695e4b71-68f2-4dcb-978b-2ebaef3ac991","block_type":"box","text":"mortgage-backed securities, the yield the Fund expects to receive from such securities and the","page_number":116,"box":{"x":117,"y":102,"width":709,"height":13}},{"id":"1c51c4ae-e19d-42f7-b8e1-df230af1b32e","block_type":"box","text":"weighted average life of the securities are based on a number of factors, including the anticipated rate","page_number":116,"box":{"x":116,"y":118,"width":762,"height":12}},{"id":"fcac1535-2227-43ca-be53-7dfb511e961d","block_type":"box","text":"of prepayment of the underlying mortgages. In a period of declining interest rates, borrowers may","page_number":116,"box":{"x":116,"y":134,"width":727,"height":12}},{"id":"031cc200-a622-4120-8951-7b9f2ad2f7c9","block_type":"box","text":"prepay the underlying mortgages more quickly than anticipated, thereby reducing the yield to maturity","page_number":116,"box":{"x":117,"y":149,"width":757,"height":12}},{"id":"63f13d85-b46a-4ef1-ad18-44dabb031eea","block_type":"box","text":"and the average life of the mortgage-backed securities. Moreover, when a Fund reinvests the proceeds","page_number":116,"box":{"x":116,"y":165,"width":772,"height":12}},{"id":"23ca9020-a48d-4f82-bfbe-b92cf933b571","block_type":"box","text":"of a prepayment in these circumstances, it will likely receive a rate of interest that is lower than the rate","page_number":116,"box":{"x":116,"y":180,"width":769,"height":12}},{"id":"7f4990de-e9fb-45db-ae15-72fc39dfd25a","block_type":"box","text":"on the security that was prepaid.","page_number":116,"box":{"x":116,"y":196,"width":247,"height":12}},{"id":"87c343fa-d88f-45d2-a19e-a7f096204af0","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures","page_number":116,"box":{"x":116,"y":227,"width":766,"height":12}},{"id":"6360ef8a-5f05-4745-b6dd-c02dadb6d3e5","block_type":"box","text":"and principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such","page_number":116,"box":{"x":116,"y":242,"width":758,"height":12}},{"id":"68703dd2-c675-42bb-8a85-20a83add6b88","block_type":"box","text":"securities at a discount, both scheduled payments of principal and unscheduled prepayments will","page_number":116,"box":{"x":116,"y":258,"width":726,"height":12}},{"id":"e7a183e7-bbfd-4c4c-89ab-a6fae0b82d8b","block_type":"box","text":"increase current and total returns and will accelerate the recognition of income, which, when distributed","page_number":116,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"e92c2aae-ad6b-439e-a6ba-1ad9214b649f","block_type":"box","text":"to shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of","page_number":116,"box":{"x":116,"y":289,"width":762,"height":12}},{"id":"a43515f9-0665-4f77-b5f8-a49e01ebaa44","block_type":"box","text":"the underlying mortgages may occur at a slower than expected rate, creating maturity extension risk.","page_number":116,"box":{"x":116,"y":304,"width":753,"height":12}},{"id":"0e5ae99c-5dac-47d3-9e3b-fb949c0eb1b2","block_type":"box","text":"This particular risk may effectively change a security that was considered short- or intermediate-term at","page_number":116,"box":{"x":116,"y":320,"width":771,"height":12}},{"id":"5d9a9b21-19cb-4265-9298-031b63dc0ec9","block_type":"box","text":"the time of purchase into a long-term security. Since the value of long-term securities generally","page_number":116,"box":{"x":116,"y":335,"width":709,"height":12}},{"id":"46770e4b-1ed2-466d-98de-546cb5d1e2df","block_type":"box","text":"fluctuates more widely in response to changes in interest rates than that of shorter-term securities,","page_number":116,"box":{"x":116,"y":351,"width":736,"height":12}},{"id":"58fbdd8d-6ee1-40d8-83dd-2d2820ce623d","block_type":"box","text":"maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":116,"box":{"x":117,"y":366,"width":769,"height":12}},{"id":"39e915c1-e43e-4e27-ade3-418c75e941ef","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities","page_number":116,"box":{"x":117,"y":382,"width":740,"height":12}},{"id":"a2dcd9b4-0c8c-4999-b6d8-de8e0cf56b4b","block_type":"box","text":"notwithstanding any direct or indirect governmental or agency guarantee.","page_number":116,"box":{"x":117,"y":397,"width":547,"height":12}},{"id":"c7534391-fb8a-4a50-adea-fc8bcf5578e2","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S.","page_number":116,"box":{"x":116,"y":428,"width":725,"height":12}},{"id":"89d81bb1-bad9-4d16-950f-492fdc49be89","block_type":"box","text":"Government or one of its agencies or instrumentalities, such as the Government National Mortgage","page_number":116,"box":{"x":117,"y":444,"width":742,"height":12}},{"id":"af38040e-e6db-476d-858c-330b719720e9","block_type":"box","text":"Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”) and the Federal","page_number":116,"box":{"x":116,"y":459,"width":770,"height":12}},{"id":"6d73bb8b-4a33-4718-839b-120b21c804eb","block_type":"box","text":"Home Loan Mortgage Corporation (“Freddie Mac”); (2) those issued by private issuers that represent","page_number":116,"box":{"x":117,"y":475,"width":753,"height":12}},{"id":"b8ede33f-9a31-40b9-812f-7eca53a066cc","block_type":"box","text":"an interest in or are collateralized by pass-through securities issued or guaranteed by the U.S.","page_number":116,"box":{"x":116,"y":490,"width":704,"height":12}},{"id":"77fa6d7b-b5d6-4049-9813-21752c4c434f","block_type":"box","text":"Government or one of its agencies or instrumentalities; and (3) those issued by private issuers that","page_number":116,"box":{"x":117,"y":506,"width":737,"height":12}},{"id":"8eadb5bf-05a1-4f41-a544-ef32b5e2fff4","block_type":"box","text":"represent an interest in or are collateralized by whole mortgage loans or pass-through securities","page_number":116,"box":{"x":117,"y":521,"width":717,"height":12}},{"id":"42ef14dc-1a4d-4401-9705-bf8ba3ac50ab","block_type":"box","text":"without a government guarantee but that usually have some form of private credit enhancement.","page_number":116,"box":{"x":116,"y":537,"width":720,"height":12}},{"id":"86e836e8-1687-457f-942a-c2b7829b10ac","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and","page_number":116,"box":{"x":117,"y":568,"width":736,"height":12}},{"id":"02026362-120c-4e05-8377-95a5fda036a4","block_type":"box","text":"Urban Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S.","page_number":116,"box":{"x":117,"y":583,"width":741,"height":12}},{"id":"5f123b6d-d3bd-44e9-aa1f-765362b6257b","block_type":"box","text":"Government, the timely payment of principal and interest on securities issued by the institutions","page_number":116,"box":{"x":117,"y":599,"width":713,"height":12}},{"id":"f9e3e900-9f1a-4786-9896-d691b252d8cd","block_type":"box","text":"approved by Ginnie Mae (such as savings and loan institutions, commercial banks and mortgage","page_number":116,"box":{"x":116,"y":614,"width":725,"height":12}},{"id":"7b316da1-2a0c-4d73-b31d-f86dad8c3136","block_type":"box","text":"banks), and backed by pools of Federal Housing Administration (“FHA”)-insured or Veterans’","page_number":116,"box":{"x":117,"y":630,"width":693,"height":12}},{"id":"6ba0742c-b3ae-4006-8709-8b6df69c69d1","block_type":"box","text":"Administration (“VA”)-guaranteed mortgages. Pass-through certificates guaranteed by Ginnie Mae","page_number":116,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"80226dc5-8308-4cb6-a125-5069562e1ae2","block_type":"box","text":"(such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely payment of","page_number":116,"box":{"x":117,"y":661,"width":707,"height":12}},{"id":"bb7f2ff4-1e2c-4eb5-a333-fbe7366afb2f","block_type":"box","text":"principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the","page_number":116,"box":{"x":117,"y":676,"width":720,"height":12}},{"id":"ecc79cdb-6434-40a1-99cf-be3435b3b92e","block_type":"box","text":"United States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow","page_number":116,"box":{"x":117,"y":692,"width":729,"height":12}},{"id":"75c49c26-4aec-4caf-9fb3-a8c2a875a9ff","block_type":"box","text":"funds from the U.S. Treasury Department to make payments under its guarantee. Mortgage-related","page_number":116,"box":{"x":116,"y":707,"width":737,"height":12}},{"id":"26975e4b-ac99-4532-96fa-e3431eb55634","block_type":"box","text":"securities issued by Fannie Mae include Fannie Mae guaranteed Mortgage Pass-Through Certificates","page_number":116,"box":{"x":116,"y":723,"width":756,"height":12}},{"id":"d51a4277-c852-40ab-8a06-fa6d053300bb","block_type":"box","text":"(also known as “Fannie Maes”), which are guaranteed as to timely payment of principal and interest by","page_number":116,"box":{"x":117,"y":738,"width":761,"height":12}},{"id":"da5f8f80-166f-43be-baf7-860a63db521c","block_type":"box","text":"Fannie Mae. They are not backed by or entitled to the full faith and credit of the United States, but are","page_number":116,"box":{"x":117,"y":754,"width":754,"height":12}},{"id":"de6151f1-4d2a-4239-9601-45e6405a705c","block_type":"box","text":"supported by the right of Fannie Mae to borrow from the U.S. Treasury Department. Fannie Mae was","page_number":116,"box":{"x":116,"y":769,"width":750,"height":12}},{"id":"fc6ce636-33fa-4e6e-af73-0a63e87ba672","block_type":"box","text":"established as a federal agency in 1938 and in 1968 was chartered by Congress as a private","page_number":116,"box":{"x":116,"y":785,"width":690,"height":12}},{"id":"cb332019-9fa3-437c-ae2e-e9cb5aaf5636","block_type":"box","text":"shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":116,"box":{"x":116,"y":800,"width":760,"height":12}},{"id":"809f1040-4660-428f-824c-68cb02369b59","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a","page_number":116,"box":{"x":117,"y":816,"width":697,"height":12}},{"id":"30585106-dbf4-4fd8-8b29-ed967543b852","block_type":"box","text":"stockholder-owned corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by","page_number":116,"box":{"x":116,"y":831,"width":750,"height":12}},{"id":"6a4951c6-e6ee-4ae5-bbae-c4e40b4809b5","block_type":"box","text":"the United States or by any Federal Home Loan Banks and do not constitute a debt or obligation of the","page_number":116,"box":{"x":116,"y":847,"width":768,"height":12}},{"id":"0ce5ffdc-6027-404e-a555-6fad83281480","block_type":"box","text":"United States or of any Federal Home Loan Bank. Freddie Macs entitle the holder to timely payment of","page_number":116,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"bef7c015-1e48-4e3f-a998-14625e395be5","block_type":"box","text":"interest, which is guaranteed by Freddie Mac. Freddie Mac guarantees either ultimate collection or","page_number":116,"box":{"x":117,"y":878,"width":735,"height":12}},{"id":"cc1335b8-6441-4172-8b86-9e50705dd767","block_type":"box","text":"II-66","page_number":116,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"6a08e32a-7e20-4681-9112-f31e3870e8e6","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":116,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"9adb4f93-a83b-4597-a6ba-a863f39509d6","block_type":"box","text":"timely payment of all principal payments on the underlying mortgage loans. While Freddie Mac","page_number":117,"box":{"x":116,"y":87,"width":707,"height":12}},{"id":"d0e32f49-e3a4-46b6-8f24-1842ca3192a6","block_type":"box","text":"generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due on","page_number":117,"box":{"x":116,"y":102,"width":753,"height":13}},{"id":"db6f7db0-e12c-422f-af24-fe8a9b7185fd","block_type":"box","text":"account of its guarantee of ultimate payment of principal at any time after default on an underlying","page_number":117,"box":{"x":116,"y":118,"width":732,"height":12}},{"id":"a145376c-9f86-4035-a841-09ecce5aedce","block_type":"box","text":"mortgage, but in no event later than one year after it becomes payable.","page_number":117,"box":{"x":117,"y":134,"width":532,"height":12}},{"id":"564bd94f-6472-4de6-8672-1e8da123b17c","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and","page_number":117,"box":{"x":117,"y":168,"width":730,"height":12}},{"id":"d1bdf8f4-ffdd-465b-b567-b80794b1b199","block_type":"box","text":"Freddie Mac mortgage pass-through securities and are issued by originators of and investors in","page_number":117,"box":{"x":117,"y":183,"width":714,"height":12}},{"id":"854e1680-b386-45f1-87e6-b8c988baad1f","block_type":"box","text":"mortgage loans, including depository institutions, mortgage banks, investment banks and special","page_number":117,"box":{"x":117,"y":199,"width":722,"height":12}},{"id":"8a1c1673-c2ea-4c4e-96ca-7d030ba4101e","block_type":"box","text":"purpose subsidiaries of the foregoing.","page_number":117,"box":{"x":117,"y":214,"width":284,"height":12}},{"id":"525cfd84-897c-45b9-9e8e-9d976aeeafb4","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than","page_number":117,"box":{"x":117,"y":248,"width":747,"height":12}},{"id":"748278ea-8f94-4cac-b53e-56440f6f60b3","block_type":"box","text":"government and government-related pools because there are no direct or indirect government or","page_number":117,"box":{"x":116,"y":264,"width":723,"height":12}},{"id":"351d3483-e059-440e-a8c9-72cb90d14c2c","block_type":"box","text":"agency guarantees of payments in the private pools. However, timely payment of interest and principal","page_number":117,"box":{"x":116,"y":279,"width":767,"height":12}},{"id":"f6ca3ad3-ca93-47d7-96c1-12130298d00c","block_type":"box","text":"of these pools may be supported by various forms of insurance or guarantees, including individual","page_number":117,"box":{"x":116,"y":295,"width":732,"height":12}},{"id":"e25fba3f-accf-43e9-8b9b-e6cf4b8d79ec","block_type":"box","text":"loan, title, pool and hazard insurance and letters of credit. The insurance and guarantees are issued by","page_number":117,"box":{"x":117,"y":310,"width":769,"height":12}},{"id":"e4d68217-2f87-4a63-91c6-35883041ebe2","block_type":"box","text":"governmental entities, private insurers and the mortgage poolers. The insurance and guarantees and","page_number":117,"box":{"x":116,"y":326,"width":756,"height":12}},{"id":"e2452a35-4da8-48a1-bb98-1bd9a0e40be5","block_type":"box","text":"the creditworthiness of the issuers thereof will be considered in determining whether a mortgage","page_number":117,"box":{"x":116,"y":341,"width":720,"height":12}},{"id":"056749b5-4676-4a6e-9fff-3bb4f5e1a009","block_type":"box","text":"related security meets a Fund’s investment quality standards. There can be no assurance that the","page_number":117,"box":{"x":117,"y":357,"width":731,"height":12}},{"id":"3ef03181-a24d-49bc-9049-8ac1546ec1d1","block_type":"box","text":"private insurers or guarantors can meet their obligations under the insurance policies or guarantee","page_number":117,"box":{"x":117,"y":372,"width":734,"height":12}},{"id":"5fd53476-0f1d-49bf-b1c9-7d9d07919c2b","block_type":"box","text":"arrangements. Private mortgage pass-through securities may be bought without insurance or","page_number":117,"box":{"x":116,"y":388,"width":696,"height":12}},{"id":"a9243492-46ba-4b8f-bb98-2ba73e57c8e9","block_type":"box","text":"guarantees if, through an examination of the loan experience and practices of the originator/servicers","page_number":117,"box":{"x":116,"y":403,"width":756,"height":12}},{"id":"28d29027-38e4-4f13-82de-ec117b4aeb2e","block_type":"box","text":"and poolers, the Manager determines that the securities meet a Fund’s quality standards. Any","page_number":117,"box":{"x":116,"y":419,"width":703,"height":12}},{"id":"97d4ab97-33a8-4eba-a4b3-0523befb37d7","block_type":"box","text":"mortgage-related securities that are issued by private issuers have some exposure to subprime loans","page_number":117,"box":{"x":117,"y":434,"width":757,"height":12}},{"id":"f784eafb-3c2f-4fb7-92c6-e560568ca2c8","block_type":"box","text":"as well as to the mortgage and credit markets generally.","page_number":117,"box":{"x":116,"y":450,"width":422,"height":12}},{"id":"52527fae-7b10-441b-9eb0-0ab47f87dffd","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the","page_number":117,"box":{"x":117,"y":484,"width":707,"height":12}},{"id":"ca19c200-918b-4ad1-b66d-b2ec0ac08846","block_type":"box","text":"underwriting requirements for the underlying mortgages that are applicable to those mortgage-related","page_number":117,"box":{"x":117,"y":499,"width":757,"height":13}},{"id":"f67c9793-5c3a-4f07-8383-3f051cbc2579","block_type":"box","text":"securities that have a government or government-sponsored entity guarantee. As a result, the","page_number":117,"box":{"x":116,"y":515,"width":702,"height":12}},{"id":"e42e6f9e-3497-41c9-9c71-1aacbbfdea6d","block_type":"box","text":"mortgage loans underlying private mortgage-related securities may, and frequently do, have less","page_number":117,"box":{"x":117,"y":530,"width":722,"height":13}},{"id":"37b70d27-1adc-44bf-91ed-2d45f6d357d4","block_type":"box","text":"favorable collateral, credit risk or other underwriting characteristics than government or government","page_number":117,"box":{"x":116,"y":546,"width":743,"height":12}},{"id":"3801e045-8ace-480b-ae8c-f6181ac6ebe5","block_type":"box","text":"sponsored mortgage-related securities and have wider variances in a number of terms including","page_number":117,"box":{"x":116,"y":561,"width":717,"height":13}},{"id":"930692d4-5443-4479-bb50-e448d4fb15d3","block_type":"box","text":"interest rate, term, size, purpose and borrower characteristics. Privately issued pools more frequently","page_number":117,"box":{"x":117,"y":577,"width":755,"height":12}},{"id":"e563427d-c44d-42ab-8203-5724f6e7b927","block_type":"box","text":"include second mortgages, high loan-to-value mortgages and manufactured housing loans. The","page_number":117,"box":{"x":117,"y":592,"width":714,"height":13}},{"id":"aa5c758d-e4b1-42d8-80a9-04ec25664854","block_type":"box","text":"coupon rates and maturities of the underlying mortgage loans in a private-label mortgage-related","page_number":117,"box":{"x":116,"y":608,"width":723,"height":12}},{"id":"2e5dea1d-3a6e-459f-a903-755e9b7cebc1","block_type":"box","text":"securities pool may vary to a greater extent than those included in a government guaranteed pool, and","page_number":117,"box":{"x":116,"y":624,"width":766,"height":12}},{"id":"93477a5d-6b7c-49c0-a3c5-d2813e810451","block_type":"box","text":"the pool may include subprime mortgage loans. Subprime loans refer to loans made to borrowers with","page_number":117,"box":{"x":116,"y":639,"width":762,"height":12}},{"id":"d71ac79b-72c6-4fed-a33d-5cff2ee8f941","block_type":"box","text":"weakened credit histories or with a lower capacity to make timely payments on their loans. For these","page_number":117,"box":{"x":116,"y":655,"width":751,"height":12}},{"id":"131a5d57-08e7-4144-b73e-07e3e927e88b","block_type":"box","text":"reasons, the loans underlying these securities have had in many cases higher default rates than those","page_number":117,"box":{"x":117,"y":670,"width":758,"height":12}},{"id":"187cf0cd-5b35-488c-b550-26ef98de8ba4","block_type":"box","text":"loans that meet government underwriting requirements.","page_number":117,"box":{"x":117,"y":686,"width":410,"height":12}},{"id":"d59553e6-8d95-4daf-9ef8-4d3a5d11309f","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools","page_number":117,"box":{"x":116,"y":720,"width":753,"height":12}},{"id":"2d2493b7-5d81-4a42-acc4-6e2cc644459a","block_type":"box","text":"that contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting","page_number":117,"box":{"x":116,"y":735,"width":740,"height":12}},{"id":"bf08c5ec-7605-4418-9604-3fbddbdfa504","block_type":"box","text":"mortgage loan repayments may include a general economic turndown, high unemployment, a general","page_number":117,"box":{"x":117,"y":751,"width":754,"height":12}},{"id":"687623e5-dad4-48ef-ad8e-7bc4abf14933","block_type":"box","text":"slowdown in the real estate market, a drop in the market prices of real estate, or an increase in interest","page_number":117,"box":{"x":116,"y":766,"width":763,"height":12}},{"id":"764c03e1-482e-44b2-962f-b72bbdaad507","block_type":"box","text":"rates resulting in higher mortgage payments by holders of adjustable rate mortgages.","page_number":117,"box":{"x":117,"y":782,"width":631,"height":12}},{"id":"2cb7fc7e-603e-4a0f-abb2-87a9e82a5a80","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited","page_number":117,"box":{"x":117,"y":816,"width":761,"height":12}},{"id":"01199f9f-27bd-42aa-ad3e-58bd6e3f8b7c","block_type":"box","text":"market for the securities, especially when there is a perceived weakness in the mortgage and real","page_number":117,"box":{"x":117,"y":831,"width":729,"height":12}},{"id":"79ba8d21-6c83-41d0-ac5b-4006cd9a4237","block_type":"box","text":"estate market sectors. Without an active trading market, mortgage-related securities held in a Fund’s","page_number":117,"box":{"x":116,"y":847,"width":753,"height":12}},{"id":"75dbf921-3647-4c5a-8d5e-1ccc4f4948ad","block_type":"box","text":"portfolio may be particularly difficult to value because of the complexities involved in assessing the","page_number":117,"box":{"x":117,"y":862,"width":734,"height":12}},{"id":"fc9ce8c0-da21-4a85-a93e-d1c155e67859","block_type":"box","text":"value of the underlying mortgage loans.","page_number":117,"box":{"x":116,"y":878,"width":299,"height":12}},{"id":"a281f767-c375-4b9b-bce4-d4fe74c4eed1","block_type":"box","text":"II-67","page_number":117,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"19064d3c-db4c-46a5-a8b6-3c5d46631caa","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":117,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"263ca915-1fc3-439a-93db-088857d2e7c9","block_type":"box","text":"Collateralized Mortgage Obligations (“CMOs”).","page_number":118,"box":{"x":117,"y":87,"width":343,"height":12}},{"id":"21574465-7017-4d27-b289-04afb343a20a","block_type":"box","text":"CMOs are debt obligations collateralized by residential","page_number":118,"box":{"x":462,"y":87,"width":415,"height":12}},{"id":"187ff416-2666-42b4-943e-42302538c7a0","block_type":"box","text":"or commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest","page_number":118,"box":{"x":116,"y":103,"width":762,"height":12}},{"id":"c48b4a78-09c3-4024-acaa-a3198860617d","block_type":"box","text":"and prepaid principal are generally paid monthly. CMOs may be collateralized by whole mortgage","page_number":118,"box":{"x":116,"y":118,"width":729,"height":12}},{"id":"dcc35a64-21b2-40c0-ac85-e0efd4fea133","block_type":"box","text":"loans or private mortgage pass-through securities but are more typically collateralized by portfolios of","page_number":118,"box":{"x":117,"y":134,"width":755,"height":12}},{"id":"937ffc5c-6cb3-4795-b1ea-a66ee70f29c2","block_type":"box","text":"mortgage pass-through securities guaranteed by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer","page_number":118,"box":{"x":117,"y":149,"width":765,"height":12}},{"id":"6777b365-afbf-4359-b534-1908a1eeb73b","block_type":"box","text":"of a series of CMOs may elect to be treated as a Real Estate Mortgage Investment Conduit (“REMIC”).","page_number":118,"box":{"x":116,"y":165,"width":769,"height":12}},{"id":"393c069e-882b-4182-bdb1-8cde7a63af76","block_type":"box","text":"All future references to CMOs also include REMICs.","page_number":118,"box":{"x":116,"y":180,"width":392,"height":10}},{"id":"eaebad24-d68e-4f25-8090-b5613bfead78","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific","page_number":118,"box":{"x":117,"y":211,"width":746,"height":12}},{"id":"000094c0-7283-4193-825b-0c5d206aecfd","block_type":"box","text":"adjustable or fixed interest rate, and bearing a different stated maturity date and each must be fully","page_number":118,"box":{"x":116,"y":227,"width":738,"height":12}},{"id":"a898e038-2ad8-4199-8411-1d3939239d93","block_type":"box","text":"retired no later than its final distribution date. Actual maturity and average life will depend upon the","page_number":118,"box":{"x":117,"y":242,"width":734,"height":12}},{"id":"0e5af1bf-53a8-46a2-a7b4-b355fa94c5da","block_type":"box","text":"prepayment experience of the collateral, which is ordinarily unrelated to the stated maturity date.","page_number":118,"box":{"x":117,"y":258,"width":719,"height":12}},{"id":"f33d321b-1904-4cae-9e23-219bfb4a45a4","block_type":"box","text":"CMOs often provide for a modified form of call protection through a de facto breakdown of the","page_number":118,"box":{"x":117,"y":273,"width":700,"height":12}},{"id":"c2665137-5e6b-4850-886e-5f61d8f26687","block_type":"box","text":"underlying pool of mortgages according to how quickly the loans are repaid. Monthly payment of","page_number":118,"box":{"x":117,"y":289,"width":718,"height":12}},{"id":"01fb9aae-2682-493d-8d90-d77c5b00b365","block_type":"box","text":"principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":118,"box":{"x":117,"y":304,"width":740,"height":12}},{"id":"bf10e086-68bc-4aae-a587-8fe71cdd9908","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually","page_number":118,"box":{"x":117,"y":320,"width":729,"height":12}},{"id":"692f5ad4-5ebc-4e1d-b7fc-406776d12691","block_type":"box","text":"receive principal only after the first class has been retired. An investor may be partially protected","page_number":118,"box":{"x":117,"y":335,"width":719,"height":12}},{"id":"432707f9-0376-4f5a-9680-8628e34fc8f5","block_type":"box","text":"against a sooner than desired return of principal because of the sequential payments.","page_number":118,"box":{"x":116,"y":351,"width":640,"height":12}},{"id":"e135ac96-14b9-447c-83d2-f9c85b4da7fe","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":118,"box":{"x":117,"y":382,"width":755,"height":12}},{"id":"d47bfbb2-565c-4f53-b980-5e66beeb4fef","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by","page_number":118,"box":{"x":117,"y":397,"width":771,"height":12}},{"id":"b4d60ad9-753b-4fe6-87f0-25a5d2bfbc84","block_type":"box","text":"the Investment Company Act on investments by a Fund in other investment companies. In addition, in","page_number":118,"box":{"x":116,"y":413,"width":761,"height":12}},{"id":"4872a2cd-7006-4d5b-bfad-83910da878d5","block_type":"box","text":"reliance on an earlier Commission interpretation, a Fund’s investments in certain other qualifying","page_number":118,"box":{"x":117,"y":428,"width":721,"height":12}},{"id":"b0acb1fe-3d50-4044-a563-acad1fb9848b","block_type":"box","text":"CMOs, which cannot or do not rely on the rule, are also not subject to the limitation of the Investment","page_number":118,"box":{"x":117,"y":444,"width":753,"height":12}},{"id":"4633aad1-2c6d-4d07-9f5c-c2c3c9ce2176","block_type":"box","text":"Company Act on acquiring interests in other investment companies. In order to be able to rely on the","page_number":118,"box":{"x":117,"y":459,"width":750,"height":12}},{"id":"41d78cc3-c54f-4fa8-86f1-00110a368ce7","block_type":"box","text":"Commission’s interpretation, these CMOs must be unmanaged, fixed asset issuers, that: (1) invest","page_number":118,"box":{"x":117,"y":475,"width":736,"height":12}},{"id":"9c2c1e55-0ce3-47e4-920d-43ea4f24eadc","block_type":"box","text":"primarily in mortgage-backed securities; (2) do not issue redeemable securities; (3) operate under","page_number":118,"box":{"x":117,"y":490,"width":730,"height":12}},{"id":"37ab449b-c99a-4f30-91fa-f8feedaef47c","block_type":"box","text":"general exemptive orders exempting them from all provisions of the Investment Company Act; and","page_number":118,"box":{"x":116,"y":506,"width":736,"height":12}},{"id":"9c5a5a9a-460d-454b-8ab5-667a4ba80682","block_type":"box","text":"(4) are not registered or regulated under the Investment Company Act as investment companies. To","page_number":118,"box":{"x":117,"y":521,"width":748,"height":12}},{"id":"5263a846-fa34-4736-8409-e89622697543","block_type":"box","text":"the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above","page_number":118,"box":{"x":116,"y":537,"width":674,"height":12}},{"id":"ec1eabd4-484e-4ec8-bf4c-2339370d74e8","block_type":"box","text":"requirements, the Fund may not invest more than 10% of its assets in all such entities and may not","page_number":118,"box":{"x":117,"y":552,"width":738,"height":12}},{"id":"f2ca5365-5f39-4bca-bb57-5c4873a6ad7c","block_type":"box","text":"acquire more than 3% of the voting securities of any single such entity.","page_number":118,"box":{"x":116,"y":568,"width":530,"height":12}},{"id":"92531e7e-a0cd-432b-97e1-bb711a878824","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating","page_number":118,"box":{"x":116,"y":599,"width":765,"height":12}},{"id":"e281bd3a-5dba-4f0d-90ca-ab26e0b55e9a","block_type":"box","text":"rate CMOs. Parallel pay CMOs are structured to provide payments of principal on each payment date","page_number":118,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"8280b387-b53d-471e-895b-4aa3b758c38a","block_type":"box","text":"to more than one class, concurrently on a proportionate or disproportionate basis. These simultaneous","page_number":118,"box":{"x":116,"y":630,"width":766,"height":12}},{"id":"eff6ea54-e565-429a-914a-7dc008d06375","block_type":"box","text":"payments are taken into account in calculating the final distribution date of each class. Sequential pay","page_number":118,"box":{"x":117,"y":645,"width":759,"height":12}},{"id":"8263071d-852c-4eaa-8f56-b2bc54eb1124","block_type":"box","text":"CMOs generally pay principal to only one class at a time while paying interest to several classes. A","page_number":118,"box":{"x":117,"y":661,"width":734,"height":12}},{"id":"7fd6320e-d655-49d9-9892-04fc55eb657b","block_type":"box","text":"wide variety of REMIC Certificates may be issued in the parallel pay or sequential pay structures.","page_number":118,"box":{"x":116,"y":676,"width":719,"height":12}},{"id":"b4eda33c-29a9-47a0-b126-5d7fa21ac5c2","block_type":"box","text":"These securities include accrual certificates (also known as “Z-Bonds”), which only accrue interest at a","page_number":118,"box":{"x":116,"y":692,"width":761,"height":12}},{"id":"c092f565-2a64-4121-bbe2-55af4a403fbf","block_type":"box","text":"specified rate until all other certificates having an earlier final distribution date have been retired and","page_number":118,"box":{"x":116,"y":707,"width":740,"height":12}},{"id":"ff0ab740-5e3f-4428-bcf5-7750d506f7f8","block_type":"box","text":"are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose","page_number":118,"box":{"x":116,"y":723,"width":712,"height":12}},{"id":"cf4481ed-ecc3-480d-b939-a54ed8de18af","block_type":"box","text":"coupon rate fluctuates according to some formula related to an existing market index or rate. Typical","page_number":118,"box":{"x":116,"y":738,"width":745,"height":12}},{"id":"eecc4ddf-a504-4730-8e86-4f3d2e566940","block_type":"box","text":"indices would include the eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and","page_number":118,"box":{"x":117,"y":754,"width":753,"height":12}},{"id":"01876d6b-06fc-4db8-ae51-cc589111053c","block_type":"box","text":"ten-year Treasury yields.","page_number":118,"box":{"x":116,"y":769,"width":184,"height":12}},{"id":"3a96d47c-9cc8-4e06-baa2-27b1cc12b4db","block_type":"box","text":"Classes of CMOs also include planned amortization","page_number":118,"box":{"x":117,"y":800,"width":375,"height":12}},{"id":"c01c693a-0e55-41e3-8dee-b729ee600cd0","block_type":"box","text":"classes (“PACs”) and targeted amortization classes","page_number":118,"box":{"x":498,"y":800,"width":373,"height":12}},{"id":"2078c2c2-fb15-4f83-a511-13b66b2920bb","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a s","page_number":118,"box":{"x":117,"y":816,"width":402,"height":12}},{"id":"f898cda0-7752-4a1c-966f-f00593f90279","block_type":"box","text":"pecified amount of principal on each payment","page_number":118,"box":{"x":521,"y":816,"width":330,"height":12}},{"id":"c93a53df-bb1e-4c46-82db-7fc64488f2dd","block_type":"box","text":"date. The scheduled principal payments for PAC Certifi","page_number":118,"box":{"x":116,"y":831,"width":399,"height":12}},{"id":"6a1f9484-84f0-4f35-b42d-a55c5bd5168a","block_type":"box","text":"cates generally have the highest priority on each","page_number":118,"box":{"x":517,"y":831,"width":357,"height":12}},{"id":"5f8e2af9-4e47-48bd-a70b-5a3a13cdfd85","block_type":"box","text":"payment date after interest due has been paid to all","page_number":118,"box":{"x":117,"y":847,"width":378,"height":12}},{"id":"a30cd123-d32f-4cd8-ae28-719194f4bc6c","block_type":"box","text":"classes entitled to receive interest currently.","page_number":118,"box":{"x":496,"y":847,"width":323,"height":12}},{"id":"465604dc-36c0-41b6-be72-d4427f5ecc83","block_type":"box","text":"Shortfalls, if any, are added to the amount payabl","page_number":118,"box":{"x":116,"y":862,"width":357,"height":12}},{"id":"84c8c447-b563-4cca-83c8-df7f786762e6","block_type":"box","text":"e on the next payment date. The PAC Certificate","page_number":118,"box":{"x":475,"y":862,"width":358,"height":12}},{"id":"f4e5020b-832d-4a8c-ad6d-24eb5d899e8a","block_type":"box","text":"payment schedule is taken into account in calculating t","page_number":118,"box":{"x":117,"y":878,"width":391,"height":12}},{"id":"cfd48556-3626-47e4-9db5-3beed5c8d97d","block_type":"box","text":"the final distribution date of each class of PAC. In","page_number":118,"box":{"x":508,"y":878,"width":363,"height":9}},{"id":"f9f596f1-94b6-4f42-9d9d-3985703ccd04","block_type":"box","text":"II-68","page_number":118,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"7146324e-b3d0-422a-a8cb-0ab2950a4cf4","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":118,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"81c5821a-2cdf-49a8-a721-bf46ea337c29","block_type":"box","text":"order to create PAC tranches, one or more tranches gener","page_number":119,"box":{"x":116,"y":87,"width":426,"height":12}},{"id":"8238cebb-295f-4327-8d68-86983a987b8c","block_type":"box","text":"ally must be created that absorb most of the","page_number":119,"box":{"x":542,"y":87,"width":325,"height":12}},{"id":"60b92bef-1657-4d42-83c5-115a4e1c37ba","block_type":"box","text":"volatility in the underlying mortgage assets. These","page_number":119,"box":{"x":116,"y":103,"width":369,"height":12}},{"id":"9f542acb-8bba-4a78-aa34-48cc7a6350e4","block_type":"box","text":"tranches (often called “supports” or “companion”","page_number":119,"box":{"x":485,"y":102,"width":356,"height":13}},{"id":"896dd7e0-f7b1-43ed-b6b6-bac8ad9e3d38","block_type":"box","text":"tranches) tend to have market prices and yields t","page_number":119,"box":{"x":116,"y":118,"width":350,"height":12}},{"id":"7d0ea9f7-17d2-40d6-844d-bbec2e60ae6d","block_type":"box","text":"that are more volatile than the PAC classes.","page_number":119,"box":{"x":466,"y":118,"width":325,"height":10}},{"id":"6e08a0ef-1333-4ac6-a46f-aca1b213f7e9","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each","page_number":119,"box":{"x":116,"y":149,"width":745,"height":12}},{"id":"ded5e806-4212-4973-8c65-c2028531c6a1","block_type":"box","text":"payment date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however,","page_number":119,"box":{"x":117,"y":165,"width":738,"height":12}},{"id":"7d28f2ed-e98c-468d-b5c9-29ed4a6775b3","block_type":"box","text":"remains in effect as long as prepayment rates on the underlying mortgages do not exceed certain","page_number":119,"box":{"x":117,"y":180,"width":728,"height":12}},{"id":"ff741531-0c3d-4717-877a-938146aed11a","block_type":"box","text":"ranges. In contrast, a TAC provides investors with protection, to a certain level, against either faster","page_number":119,"box":{"x":117,"y":196,"width":743,"height":12}},{"id":"498366b5-c9ed-4c4e-bbab-98ac52038260","block_type":"box","text":"than expected or slower than expected prepayment rates, but not both. TACs thus provide more cash","page_number":119,"box":{"x":116,"y":211,"width":759,"height":12}},{"id":"c5e0f75a-ad82-4b79-8708-104058b72f39","block_type":"box","text":"flow stability than a regular sequential paying class, but less than a PAC. TACs also tend to have","page_number":119,"box":{"x":116,"y":227,"width":725,"height":12}},{"id":"8fe39f1f-eda5-47fd-897e-2331aa0a10ca","block_type":"box","text":"market prices and yields that are more volatile than PACs.","page_number":119,"box":{"x":117,"y":242,"width":437,"height":12}},{"id":"dfc63734-428d-4c07-9e60-4211fece22ef","block_type":"box","text":"Adjustable Rate Mortgage Securities.","page_number":119,"box":{"x":115,"y":273,"width":277,"height":12}},{"id":"e9c25f62-4139-4a8f-a457-4e0812e267d1","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through","page_number":119,"box":{"x":393,"y":273,"width":479,"height":12}},{"id":"096926d1-804e-4efb-90ae-406b75398479","block_type":"box","text":"securities collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for","page_number":119,"box":{"x":116,"y":289,"width":706,"height":12}},{"id":"206e77a8-9b2e-4841-a6c2-2416427951dd","block_type":"box","text":"inclusion in a mortgage pool generally provide for a fixed initial mortgage interest rate for a set number","page_number":119,"box":{"x":117,"y":304,"width":764,"height":12}},{"id":"aa00d8d6-3265-42de-aaf0-c12eb5f38062","block_type":"box","text":"of scheduled monthly payments. After that schedule of payments has been completed, the interest","page_number":119,"box":{"x":116,"y":320,"width":736,"height":12}},{"id":"cdeaa050-5b17-44b9-8369-0fea6d665d18","block_type":"box","text":"rates are subject to periodic adjustment based on changes to a designated benchmark index.","page_number":119,"box":{"x":117,"y":335,"width":697,"height":12}},{"id":"3a9725aa-6345-4edf-87ab-0940955c5c35","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary","page_number":119,"box":{"x":116,"y":366,"width":741,"height":12}},{"id":"13944662-d0fa-49fb-9e6e-3984059d4182","block_type":"box","text":"over the lifetime of the security. In addition, certain ARMs provide for additional limitations on the","page_number":119,"box":{"x":116,"y":382,"width":722,"height":12}},{"id":"cf38465a-31a4-47f2-9ea7-c0f640de6009","block_type":"box","text":"maximum amount by which the mortgage interest rate may adjust for any single adjustment period. In","page_number":119,"box":{"x":117,"y":397,"width":758,"height":12}},{"id":"665514ed-94c4-453b-93e6-e8999ce88127","block_type":"box","text":"the event that market rates of interest rise more rapidly to levels above that of the ARM’s maximum","page_number":119,"box":{"x":116,"y":413,"width":741,"height":12}},{"id":"7fe411f0-e201-4256-8ae9-f2c4ce78a74c","block_type":"box","text":"rate, the ARM’s coupon may represent a below market rate of interest. In these circumstances, the","page_number":119,"box":{"x":117,"y":428,"width":737,"height":12}},{"id":"3437c39b-fe11-45fe-913b-3b010638110d","block_type":"box","text":"market value of the ARM security will likely have fallen.","page_number":119,"box":{"x":117,"y":444,"width":412,"height":12}},{"id":"f4b735a7-54f0-4178-a590-3a9a263a1452","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a","page_number":119,"box":{"x":117,"y":475,"width":728,"height":12}},{"id":"4d5324ac-7720-4e9a-98f3-a98109d55443","block_type":"box","text":"monthly payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is","page_number":119,"box":{"x":117,"y":490,"width":754,"height":12}},{"id":"53fc7e66-170d-4df3-8898-d94cefe418fb","block_type":"box","text":"added to the principal balance of the mortgage loan, which is repaid through future monthly payments.","page_number":119,"box":{"x":116,"y":506,"width":764,"height":12}},{"id":"b98ac063-1ec5-4dd4-a04a-39dca7e8d308","block_type":"box","text":"If the monthly payment for such an instrument exceeds the sum of the interest accrued at the","page_number":119,"box":{"x":117,"y":521,"width":695,"height":12}},{"id":"6c0ff8f5-b8e5-4090-bd47-cec076548bcb","block_type":"box","text":"applicable mortgage interest rate and the principal payment required at such point to amortize the","page_number":119,"box":{"x":116,"y":537,"width":730,"height":12}},{"id":"99d50cc4-4406-49c9-b208-9943279406d1","block_type":"box","text":"outstanding principal balance over the remaining term of the loan, the excess is then used to reduce","page_number":119,"box":{"x":116,"y":552,"width":748,"height":12}},{"id":"34d32bd6-f3f3-4a8b-82fb-604390723de3","block_type":"box","text":"the outstanding principal balance of the ARM.","page_number":119,"box":{"x":116,"y":568,"width":344,"height":12}},{"id":"81172bd6-9ce7-4719-97d6-a6bbbaf9068c","block_type":"box","text":"CMO Residuals.","page_number":119,"box":{"x":117,"y":599,"width":120,"height":9}},{"id":"e28f19d1-945b-4188-8a73-b67649fe4ddb","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or","page_number":119,"box":{"x":238,"y":599,"width":546,"height":12}},{"id":"3a4f40c0-ea72-4232-b29c-0320b393dd78","block_type":"box","text":"instrumentalities of the U.S. Government or by private originators of, or investors in, mortgage loans,","page_number":119,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"d722ceb6-fe90-4d44-be4d-aa518ff43f95","block_type":"box","text":"including savings and loan associations, homebuilders, mortgage banks, commercial banks,","page_number":119,"box":{"x":117,"y":630,"width":688,"height":12}},{"id":"0fca28f6-5594-4478-9527-389179844bd1","block_type":"box","text":"investment banks, and special purpose entities of the foregoing. The cash flow generated by the","page_number":119,"box":{"x":117,"y":645,"width":718,"height":12}},{"id":"d2192441-9db1-417c-b9d3-8ac8d181bad8","block_type":"box","text":"mortgage assets underlying a series of CMOs is applied first to make required payments of principal","page_number":119,"box":{"x":117,"y":661,"width":742,"height":12}},{"id":"a42b100c-2895-43a0-9a41-d1304de15232","block_type":"box","text":"and interest on the CMOs and second to pay the related administrative expenses and any","page_number":119,"box":{"x":116,"y":676,"width":668,"height":12}},{"id":"0a0abca7-bfe6-4d9b-ac53-272d56f8325b","block_type":"box","text":"management fees of the issuer. The residual in a CMO structure generally represents the interest in","page_number":119,"box":{"x":117,"y":692,"width":740,"height":12}},{"id":"a3bda5a9-17b6-4bc8-80b2-09ef66d25046","block_type":"box","text":"any excess cash flow remaining after making the foregoing payments. Each payment of such excess","page_number":119,"box":{"x":116,"y":707,"width":748,"height":12}},{"id":"1b9e6f22-f5dd-4cc7-adbb-c078568336cd","block_type":"box","text":"cash flow to a holder of the related CMO residual represents income and/or a return of capital. The","page_number":119,"box":{"x":116,"y":723,"width":733,"height":12}},{"id":"a0ba902e-6782-4cf8-9dc1-4fdcb40b0216","block_type":"box","text":"amount of residual cash flow resulting from a CMO will depend on, among other things, the","page_number":119,"box":{"x":116,"y":738,"width":676,"height":12}},{"id":"a9e07d6b-b657-4e27-9ee7-b8880870a455","block_type":"box","text":"characteristics of the mortgage assets, the coupon rate of each class of CMO, prevailing interest rates,","page_number":119,"box":{"x":116,"y":754,"width":762,"height":12}},{"id":"12789979-1ab8-4653-b3b4-ff280e01ad10","block_type":"box","text":"the amount of administrative expenses and the prepayment experience on the mortgage assets. In","page_number":119,"box":{"x":116,"y":769,"width":732,"height":12}},{"id":"a1dd65d3-03dc-459b-8d31-1815e332e1d0","block_type":"box","text":"part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the related","page_number":119,"box":{"x":117,"y":785,"width":743,"height":12}},{"id":"06f63447-2746-47f1-a974-16ea4c82cdbb","block_type":"box","text":"underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":119,"box":{"x":117,"y":800,"width":764,"height":12}},{"id":"6e533f72-5125-449f-928f-0cfdbe7d63c9","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate,","page_number":119,"box":{"x":116,"y":816,"width":739,"height":12}},{"id":"d9e27945-967b-4d72-86f6-11e7fc7a48bf","block_type":"box","text":"the yield to maturity on the related CMO residual will also be extremely sensitive to changes in the","page_number":119,"box":{"x":116,"y":831,"width":733,"height":12}},{"id":"a557d852-a8f9-4421-81ff-1309e230fe83","block_type":"box","text":"level of the index upon which interest rate adjustments are based. In certain circumstances, a Fund","page_number":119,"box":{"x":117,"y":847,"width":741,"height":12}},{"id":"c9b93e99-ae52-4ef2-ab87-7111340f9362","block_type":"box","text":"may fail to recoup fully its initial investment in a CMO residual.","page_number":119,"box":{"x":117,"y":862,"width":466,"height":12}},{"id":"075241c2-76aa-43ab-adb3-2cf562cbd69f","block_type":"box","text":"II-69","page_number":119,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"052bfd00-45a4-4deb-994f-7801208fefbd","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":119,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"072ee0b2-ecdc-4ae1-861f-adc545d1981b","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more","page_number":120,"box":{"x":117,"y":87,"width":709,"height":12}},{"id":"77026c15-98c8-403b-a93a-7f1a7f8ad1a9","block_type":"box","text":"investment banking firms acting as brokers or dealers. Transactions in CMO residuals are generally","page_number":120,"box":{"x":117,"y":102,"width":744,"height":13}},{"id":"af915689-afe5-4626-916f-34dd718c3af6","block_type":"box","text":"completed only after careful review of the characteristics of the securities in question. In addition, CMO","page_number":120,"box":{"x":116,"y":118,"width":768,"height":12}},{"id":"6acae5b9-5827-4220-8102-1c9a671e8ca8","block_type":"box","text":"residuals may or, pursuant to an exemption therefrom, may not have been registered under the","page_number":120,"box":{"x":117,"y":134,"width":711,"height":12}},{"id":"ab04432b-4ff8-4d60-b3f8-3cb8ab092a18","block_type":"box","text":"Securities Act. Residual interests generally are junior to, and may be significantly more volatile than,","page_number":120,"box":{"x":116,"y":149,"width":748,"height":12}},{"id":"ff03cbec-bbf4-43d4-a833-3997500f5fc5","block_type":"box","text":"“regular” CMO and REMIC interests. CMO residuals, whether or not registered under the Securities","page_number":120,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"037d2ff6-d2a3-466e-aef6-3a658865e0dd","block_type":"box","text":"Act, may be subject to certain restrictions on transferability.","page_number":120,"box":{"x":116,"y":180,"width":444,"height":12}},{"id":"988af663-24b8-4b39-80d6-eef5e8dd29e2","block_type":"box","text":"Stripped Mortgage-Backed Securities.","page_number":120,"box":{"x":117,"y":207,"width":280,"height":12}},{"id":"bd994229-f232-4bfb-9b23-5bcf4712fcab","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities","page_number":120,"box":{"x":399,"y":207,"width":443,"height":12}},{"id":"8d5108c7-b100-41ac-8f41-3fface92cccf","block_type":"box","text":"(“SMBSs”) issued by agencies or instrumentalities of the United States. SMBSs are derivative multi","page_number":120,"box":{"x":117,"y":223,"width":740,"height":12}},{"id":"f26b9f57-32a1-451b-8d95-9d1b94f5ead2","block_type":"box","text":"class mortgage-backed securities. SMBS arrangements commonly involve two classes of securities","page_number":120,"box":{"x":116,"y":238,"width":744,"height":12}},{"id":"a8eb02ba-83ba-45e4-be34-0515fe2a98a6","block_type":"box","text":"that receive different proportions of the interest and principal distributions on a pool of mortgage","page_number":120,"box":{"x":116,"y":254,"width":716,"height":12}},{"id":"7c301632-f615-49a8-a079-60e8ae845010","block_type":"box","text":"assets. A common variety of SMBS is where one class (the principal only or PO class) receives some","page_number":120,"box":{"x":116,"y":269,"width":759,"height":12}},{"id":"b5b69aa1-4382-4640-990b-4b2820ea3df0","block_type":"box","text":"of the interest and most of the principal from the underlying assets, while the other class (the interest","page_number":120,"box":{"x":116,"y":285,"width":752,"height":12}},{"id":"048018c6-2884-4960-8516-cd784768c8b4","block_type":"box","text":"only or IO class) receives most of the interest and the remainder of the principal. In the most extreme","page_number":120,"box":{"x":116,"y":300,"width":755,"height":12}},{"id":"afe97de6-8ffd-4d06-bf8f-7af1e625147e","block_type":"box","text":"case, the IO class receives all of the interest, while","page_number":120,"box":{"x":116,"y":316,"width":382,"height":11}},{"id":"d2ca5933-b1d0-4340-bfc1-c476da90b178","block_type":"box","text":"the PO class receives all of the principal. While a","page_number":120,"box":{"x":498,"y":316,"width":368,"height":12}},{"id":"01836184-c652-46f8-b2b4-5cef92c260a8","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO","page_number":120,"box":{"x":117,"y":331,"width":758,"height":12}},{"id":"066cff23-f8ba-415b-85df-4f62348151be","block_type":"box","text":"class. The yield to maturity of an IO class is extremely sensitive to the rate of principal payments","page_number":120,"box":{"x":116,"y":347,"width":720,"height":12}},{"id":"14f1114d-1c27-4240-b208-9ef65f25e95e","block_type":"box","text":"(including prepayments) on the related underlying assets, and a rapid rate of principal prepayments in","page_number":120,"box":{"x":117,"y":362,"width":759,"height":12}},{"id":"f80ad707-a880-467a-9051-8e40e6797679","block_type":"box","text":"excess of that considered in pricing the securities will have a material adverse effect on an IO","page_number":120,"box":{"x":116,"y":378,"width":699,"height":12}},{"id":"59399a6d-d38f-49f6-8e1c-f5537f9d99fb","block_type":"box","text":"security’s yield to maturity. If the underlying mortgage assets experience greater than anticipated","page_number":120,"box":{"x":116,"y":393,"width":724,"height":12}},{"id":"490ec4e4-8947-468c-a9b0-19f275800d46","block_type":"box","text":"payments of principal, a Fund may fail to recoup fully its initial investment in IOs. In addition, there are","page_number":120,"box":{"x":117,"y":409,"width":760,"height":12}},{"id":"a5d7abbd-d57f-4935-95ec-c68b3229f1ac","block_type":"box","text":"certain types of IOs that represent the interest portion of a particular class as opposed to the interest","page_number":120,"box":{"x":116,"y":424,"width":751,"height":12}},{"id":"4f33aaa4-32b8-43b0-8a13-3bb1fa4a37c2","block_type":"box","text":"portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":120,"box":{"x":117,"y":440,"width":768,"height":12}},{"id":"0c8e5030-c107-45e8-b44a-f43f4e81ec41","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above","page_number":120,"box":{"x":117,"y":455,"width":733,"height":12}},{"id":"68e268da-3b20-42e7-aefa-06d5f3ffe411","block_type":"box","text":"factors, a Fund generally will purchase IOs only as a component of so called “synthetic” securities. This","page_number":120,"box":{"x":116,"y":471,"width":772,"height":12}},{"id":"45536246-1680-4b0b-af5b-35872b50e8fc","block_type":"box","text":"means that purchases of IOs will be matched with certain purchases of other securities, such as POs,","page_number":120,"box":{"x":117,"y":486,"width":759,"height":12}},{"id":"5267d7d7-371c-42d0-8ca1-ee96c222b02c","block_type":"box","text":"inverse floating rate CMOs or fixed rate securities; as interest rates fall, presenting a greater risk of","page_number":120,"box":{"x":117,"y":502,"width":737,"height":12}},{"id":"4b1429fc-ce8a-45c6-9f47-b19b08a7d4e2","block_type":"box","text":"unanticipated prepayments of principal, the negative effect on a Fund because of its holdings of IOs","page_number":120,"box":{"x":117,"y":517,"width":744,"height":12}},{"id":"4e863abf-5639-47f5-b706-bdfe748d0a4c","block_type":"box","text":"should be diminished somewhat because of the increased yield on the inverse floating rate CMOs or","page_number":120,"box":{"x":116,"y":533,"width":751,"height":12}},{"id":"da12a468-a049-4ac4-a143-a3cb3c3d3b34","block_type":"box","text":"the increased appreciation on the POs or fixed rate securities.","page_number":120,"box":{"x":116,"y":548,"width":465,"height":12}},{"id":"63c72efc-4dcb-4291-a00c-7a6fbccf08e8","block_type":"box","text":"Tiered Index Bonds.","page_number":120,"box":{"x":118,"y":576,"width":147,"height":9}},{"id":"9548cd37-e5b1-4960-bca1-a585277096b7","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on","page_number":120,"box":{"x":266,"y":575,"width":612,"height":12}},{"id":"7093de81-eea8-426a-8412-ec115da4aba2","block_type":"box","text":"a tiered index bond is tied to a specified index or","page_number":120,"box":{"x":116,"y":591,"width":365,"height":12}},{"id":"9982eed2-d4f2-4011-b758-a6718617b977","block_type":"box","text":"market rate. So long as this index or market rate is","page_number":120,"box":{"x":482,"y":591,"width":380,"height":12}},{"id":"d02ab2ea-d6e9-47ec-a8ba-f46a39dea822","block_type":"box","text":"below a predetermined “strike” rate, the interest rate on the tiered index bond remains fixed. If,","page_number":120,"box":{"x":117,"y":606,"width":704,"height":12}},{"id":"a1d716d8-ca13-4105-84e3-8e6db4a3f8fd","block_type":"box","text":"however, the specified index or market rate rises above the “strike” rate, the interest rate of the tiered","page_number":120,"box":{"x":117,"y":622,"width":754,"height":12}},{"id":"6147f377-c4c1-42c4-a494-28147ee766a0","block_type":"box","text":"index bond will decrease. Thus, under these circumstances, the interest rate on a tiered index bond,","page_number":120,"box":{"x":117,"y":638,"width":747,"height":11}},{"id":"d1b255f9-3a6e-4492-970a-563e11bde17b","block_type":"box","text":"like an inverse floater, will move in the opposite direction of prevailing interest rates, with the result that","page_number":120,"box":{"x":117,"y":653,"width":767,"height":12}},{"id":"5a907e90-b2bf-4d95-9789-9a394d72a5dc","block_type":"box","text":"the price of the tiered index bond may be considerably more volatile than that of a fixed-rate bond.","page_number":120,"box":{"x":116,"y":668,"width":727,"height":12}},{"id":"310e7037-f778-4f71-8b2f-5f955e0ddbd1","block_type":"box","text":"TBA Commitments.","page_number":120,"box":{"x":118,"y":696,"width":142,"height":9}},{"id":"770c216c-2809-4dc4-a588-e2f6e6561221","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA","page_number":120,"box":{"x":267,"y":696,"width":573,"height":12}},{"id":"fa2db8f0-2f87-4632-95fe-0e8916cfa3bf","block_type":"box","text":"commitments are forward agreements for the purchase or sale of securities, including mortgage","page_number":120,"box":{"x":116,"y":711,"width":716,"height":12}},{"id":"5fd9e53c-fd8a-45ed-8a63-35ac185fb207","block_type":"box","text":"backed securities for a fixed price, with payment and delivery on an agreed upon future settlement","page_number":120,"box":{"x":117,"y":727,"width":728,"height":12}},{"id":"a6f1b387-004f-43db-8da5-74194378d193","block_type":"box","text":"date. The specific securities to be delivered are not identified at the trade date. However, delivered","page_number":120,"box":{"x":116,"y":742,"width":731,"height":12}},{"id":"61de87b9-2c98-4a48-88a7-11ce489089c4","block_type":"box","text":"securities must meet specified terms, including issuer, rate and mortgage terms. When the Fund enters","page_number":120,"box":{"x":116,"y":758,"width":767,"height":12}},{"id":"c8a4b5ad-8069-46bf-b700-76b419da6329","block_type":"box","text":"into a TBA commitment for the sale of mortgage-backed securities for a fixed price, with payment and","page_number":120,"box":{"x":117,"y":773,"width":752,"height":12}},{"id":"d8f26cb3-fcdd-42bc-afab-9b1292a9a6ff","block_type":"box","text":"delivery on an agreed upon future settlement date (which may be referred to as having a short position","page_number":120,"box":{"x":116,"y":789,"width":761,"height":12}},{"id":"a4366f83-5a08-40f2-b458-14f018436ef4","block_type":"box","text":"in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":120,"box":{"x":117,"y":804,"width":707,"height":12}},{"id":"5b97e3c4-c795-45b8-89bd-966f72f6ed25","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":120,"box":{"x":117,"y":820,"width":733,"height":12}},{"id":"54e8313b-d463-46f9-acfd-84e097247404","block_type":"box","text":"Commitments” below.","page_number":120,"box":{"x":117,"y":835,"width":166,"height":10}},{"id":"0a1361cc-0a3a-4f5f-9104-9e5de84a8a6a","block_type":"box","text":"Mortgage Dollar Rolls.","page_number":120,"box":{"x":116,"y":862,"width":164,"height":12}},{"id":"332c2b60-0a3b-4271-9c9f-75dd42d37233","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll","page_number":120,"box":{"x":282,"y":862,"width":562,"height":12}},{"id":"d9d1db9d-96cd-46e0-86f3-a758a8d588e7","block_type":"box","text":"transaction, a Fund sells mortgage-backed securities for delivery in the current month and","page_number":120,"box":{"x":116,"y":878,"width":673,"height":12}},{"id":"4458281b-2ab5-4bb1-86f7-a87ea018fa53","block_type":"box","text":"II-70","page_number":120,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c6b72e7a-9e59-464a-a031-9bba54e38ba7","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":120,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"2b9b1b82-22c4-4e1c-8b29-cffb9c9e90a2","block_type":"box","text":"simultaneously contracts to repurchase substantially similar securities on a specified future date. The","page_number":121,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"033feea5-a363-4ae8-b111-5853a70cd16f","block_type":"box","text":"securities that are repurchased will bear the same interest rate and a similar maturity as those sold, but","page_number":121,"box":{"x":116,"y":103,"width":771,"height":12}},{"id":"d6964ed7-08d3-4d93-9869-683239df9ee9","block_type":"box","text":"pools of mortgages collateralizing those securities may have different prepayment histories than those","page_number":121,"box":{"x":117,"y":118,"width":762,"height":12}},{"id":"b2770307-4ac0-4b08-b6e9-c036c0ca27a2","block_type":"box","text":"sold. During the period between the sale and repurchase, a Fund will not be entitled to receive interest","page_number":121,"box":{"x":116,"y":134,"width":765,"height":12}},{"id":"65dbb3f1-f07a-4c48-9776-65aa3e47fa30","block_type":"box","text":"and principal payments on the securities sold. Proceeds of the sale will be invested in additional","page_number":121,"box":{"x":116,"y":149,"width":716,"height":12}},{"id":"b752bbba-55f7-4a72-8c1b-b5637203d5d8","block_type":"box","text":"instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":121,"box":{"x":117,"y":165,"width":762,"height":12}},{"id":"b9e5b6b2-cc3a-4723-8d81-9f1fec9a060d","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been","page_number":121,"box":{"x":116,"y":180,"width":757,"height":12}},{"id":"8187bf1e-3eae-40f9-8e8b-1569002df4d2","block_type":"box","text":"realized on the securities sold as part of the dollar roll, the use of this technique will diminish the","page_number":121,"box":{"x":117,"y":196,"width":715,"height":11}},{"id":"fb1e92a7-a9d4-49e4-9bcf-efa0da73216e","block_type":"box","text":"investment performance of a Fund compared with what the performance would have been without the","page_number":121,"box":{"x":117,"y":211,"width":759,"height":12}},{"id":"6558856f-628e-4501-9d01-671a0864c3a3","block_type":"box","text":"use of dollar rolls.","page_number":121,"box":{"x":117,"y":227,"width":135,"height":9}},{"id":"96cb1eff-4556-4c66-942c-6624909ce670","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and","page_number":121,"box":{"x":117,"y":255,"width":760,"height":12}},{"id":"c9cc1d1a-3780-426b-97fa-f9cede77ea77","block_type":"box","text":"a subsequent purchase or sale of a substantially similar security in the forward market. Transactions in","page_number":121,"box":{"x":116,"y":270,"width":767,"height":12}},{"id":"b0187271-ac6a-4868-a1e4-0551ede9b76d","block_type":"box","text":"mortgage dollar rolls may increase trading costs and portfolio turnover.","page_number":121,"box":{"x":117,"y":286,"width":529,"height":12}},{"id":"c4764661-3c5f-414f-bf52-38e4b531b226","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes","page_number":121,"box":{"x":117,"y":314,"width":738,"height":12}},{"id":"9a2ef9fb-287d-4754-b862-599b08762636","block_type":"box","text":"insolvent, a Fund’s use of the proceeds of the current sale portion of the transaction may be restricted","page_number":121,"box":{"x":117,"y":330,"width":760,"height":12}},{"id":"94860e9f-b8f8-414a-a816-488219654f0e","block_type":"box","text":"pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s","page_number":121,"box":{"x":117,"y":345,"width":738,"height":12}},{"id":"913e2cab-f17d-4072-bbd0-b9be1ddb0da5","block_type":"box","text":"obligation to purchase the similar securities in the forward transaction.","page_number":121,"box":{"x":116,"y":361,"width":525,"height":12}},{"id":"60dc9e04-8337-4036-b309-15156a68326d","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar","page_number":121,"box":{"x":116,"y":389,"width":750,"height":12}},{"id":"4abdf7bf-d3a1-4e77-b61e-336cd2133534","block_type":"box","text":"rolls may depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar","page_number":121,"box":{"x":117,"y":405,"width":765,"height":12}},{"id":"e1c8cb93-90fa-444f-84e1-f6757a458f92","block_type":"box","text":"rolls involve the risk that the market value of the securities subject to a Fund’s forward purchase","page_number":121,"box":{"x":117,"y":420,"width":716,"height":12}},{"id":"da2cea29-f951-44c6-90eb-8bc75053f6b8","block_type":"box","text":"commitment may decline below, or the market value of the securities subject to a Fund’s forward sale","page_number":121,"box":{"x":116,"y":436,"width":758,"height":12}},{"id":"d0c4151f-3f47-4f67-a011-aef8fc1141a7","block_type":"box","text":"commitment may increase above, the exercise price of the forward commitment. Dollar rolls are","page_number":121,"box":{"x":116,"y":451,"width":715,"height":12}},{"id":"651bce7f-d65f-41ee-a370-92ba625d56ca","block_type":"box","text":"speculative techniques that can be deemed to involve leverage. There is no assurance that dollar rolls","page_number":121,"box":{"x":116,"y":467,"width":763,"height":12}},{"id":"45fb3e03-00ff-4cf1-bc5e-6fae28ab7d0d","block_type":"box","text":"can be successfully employed.","page_number":121,"box":{"x":116,"y":482,"width":233,"height":12}},{"id":"3f55aa0d-87e1-4e48-a496-4b162c1bb47d","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward","page_number":121,"box":{"x":117,"y":511,"width":740,"height":12}},{"id":"af27e3c1-6ebb-42c0-8b63-ddc63cab2202","block_type":"box","text":"settling securities (e.g., dollar rolls and firm and standby commitments, including TBA commitments)","page_number":121,"box":{"x":116,"y":526,"width":748,"height":12}},{"id":"c7de964a-35b6-4de2-ba59-7168a4046ca4","block_type":"box","text":"and non-standard settlement cycle securities notwithstanding the limitation on the issuance of senior","page_number":121,"box":{"x":116,"y":542,"width":750,"height":12}},{"id":"be916846-60b8-44eb-9d72-f6753b359022","block_type":"box","text":"securities in Section 18 of the Investment Company Act, provided that the transaction meets the","page_number":121,"box":{"x":116,"y":557,"width":718,"height":12}},{"id":"ec6d5f5a-0f71-4cb1-b0f4-fc4a7906b360","block_type":"box","text":"Delayed-Settlement Securities Provision (as defined below under “—When-Issued Securities, Delayed","page_number":121,"box":{"x":117,"y":573,"width":764,"height":12}},{"id":"83f616fc-e65b-4f93-9460-b4d1fbc765c6","block_type":"box","text":"Delivery Securities and Forward Commitments”). If a when-issued, forward-settling or non-standard","page_number":121,"box":{"x":117,"y":588,"width":742,"height":12}},{"id":"29684d7b-28eb-4ae3-898f-16a7f93cea6f","block_type":"box","text":"settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then it is","page_number":121,"box":{"x":116,"y":604,"width":715,"height":12}},{"id":"b43547e1-8f16-4ee4-8a78-19134740f0af","block_type":"box","text":"treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives—Regulation of","page_number":121,"box":{"x":116,"y":619,"width":669,"height":12}},{"id":"9dcc28ab-00a6-4a2d-8b32-22e1c11fb894","block_type":"box","text":"Derivatives—Rule 18f-4 under the Investment Company Act” above.","page_number":121,"box":{"x":117,"y":635,"width":511,"height":12}},{"id":"d8905cac-2d8c-4d58-bdc2-f77d234e0c15","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":121,"box":{"x":117,"y":663,"width":270,"height":12}},{"id":"0abdae4c-247a-45af-a5b0-6502507464ea","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities.","page_number":121,"box":{"x":394,"y":663,"width":438,"height":12}},{"id":"a47570eb-5ade-4633-b900-36619200f4dd","block_type":"box","text":"These securities are derivative interest-only mortgage securities structured off home equity loan","page_number":121,"box":{"x":116,"y":678,"width":711,"height":13}},{"id":"e10b7370-40b7-4d55-8108-800d271010d4","block_type":"box","text":"transactions. NIM securities receive any “excess” interest computed after paying coupon costs,","page_number":121,"box":{"x":116,"y":694,"width":704,"height":12}},{"id":"ea1c6ece-068b-4e76-84f5-46ce47357586","block_type":"box","text":"servicing costs and fees and any credit losses associated with the underlying pool of home equity","page_number":121,"box":{"x":116,"y":709,"width":724,"height":13}},{"id":"e7c6c451-ec78-4e3e-a06d-0724c606ef92","block_type":"box","text":"loans. Like traditional stripped mortgage-backed securities, the yield to maturity on a NIM security is","page_number":121,"box":{"x":117,"y":725,"width":740,"height":12}},{"id":"aaf5245b-cb96-44a1-b718-37d25a5943bb","block_type":"box","text":"sensitive not only to changes in prevailing interest rates but also to the rate of principal payments","page_number":121,"box":{"x":116,"y":740,"width":720,"height":13}},{"id":"34fd8605-f957-4d43-bf86-68ba297d07b4","block_type":"box","text":"(including prepayments) on the underlying home equity loans. NIM securities are highly sensitive to","page_number":121,"box":{"x":117,"y":756,"width":735,"height":12}},{"id":"7901c186-0762-4fd1-b649-ff6fd220868f","block_type":"box","text":"credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":121,"box":{"x":116,"y":772,"width":651,"height":12}},{"id":"34607a7c-b7ac-47b6-90a2-cd59ed9e4a34","block_type":"box","text":"Municipal Investments.","page_number":121,"box":{"x":116,"y":800,"width":184,"height":12}},{"id":"e437eb4e-babb-4231-889a-23abb7b525bc","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states,","page_number":121,"box":{"x":307,"y":800,"width":533,"height":12}},{"id":"982e6bdb-324c-41bf-9b87-885466367b06","block_type":"box","text":"territories and possessions of the United States and the District of Columbia and their political","page_number":121,"box":{"x":116,"y":815,"width":694,"height":12}},{"id":"fbfaa259-91af-4d8e-81a1-3e5afcfbd1ed","block_type":"box","text":"subdivisions, agencies and instrumentalities, the payments from which, in the opinion of bond counsel","page_number":121,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"fbef97f1-3e5b-4e2c-ad22-e770e5980541","block_type":"box","text":"to the issuer, are excludable from gross income for U.S. federal income tax purposes (“Municipal","page_number":121,"box":{"x":116,"y":846,"width":723,"height":12}},{"id":"ce40d4ee-239d-419c-8644-959e73dcd0e1","block_type":"box","text":"Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that pay interest","page_number":121,"box":{"x":117,"y":862,"width":691,"height":12}},{"id":"f1d878de-80c2-4da4-beae-1064b65d08d7","block_type":"box","text":"excludable from gross income for purposes of state and local income taxes of the designated state","page_number":121,"box":{"x":116,"y":877,"width":737,"height":12}},{"id":"ea43468b-68e7-48f7-b223-1c63b5ae5ec9","block_type":"box","text":"II-71","page_number":121,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"55255e40-8f9c-4d23-889d-1bb41e428d6b","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":121,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"7512bf2d-6bc9-44d7-94b4-3ff0bee3dfe9","block_type":"box","text":"and/or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated","page_number":122,"box":{"x":116,"y":87,"width":744,"height":12}},{"id":"d1f8981d-3677-4a35-829e-e1a1d8c92266","block_type":"box","text":"state (“State Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on","page_number":122,"box":{"x":116,"y":102,"width":762,"height":13}},{"id":"f56352bc-58ed-47fc-96d4-8d59aefa1778","block_type":"box","text":"behalf of a state or territory or by an agency or instrumentality thereof, if the Manager believes such","page_number":122,"box":{"x":117,"y":118,"width":743,"height":12}},{"id":"e8fa853c-7491-44d0-b42a-71776ffd2cdc","block_type":"box","text":"securities to pay interest excludable from gross income for purposes of U.S. federal income tax and","page_number":122,"box":{"x":116,"y":134,"width":744,"height":12}},{"id":"ddcca47c-d3f7-4670-9863-7563510f7c91","block_type":"box","text":"state and local income taxes of the designated state and/or state and local personal property taxes of","page_number":122,"box":{"x":116,"y":149,"width":757,"height":12}},{"id":"7d4e9575-7c7b-49ee-bde0-7ab1ccd79b25","block_type":"box","text":"the designated state (“Non-Municipal Tax-Exempt Securities”). Non-Municipal Tax-Exempt Securities","page_number":122,"box":{"x":116,"y":165,"width":756,"height":12}},{"id":"80b6fb03-2674-4637-9cf5-994f6b078d2e","block_type":"box","text":"could include trust certificates or other instruments evidencing interest in one or more long-term","page_number":122,"box":{"x":116,"y":180,"width":714,"height":12}},{"id":"a0dce36e-b8f6-435a-b69a-b444ae73d0f3","block_type":"box","text":"municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":122,"box":{"x":117,"y":196,"width":765,"height":12}},{"id":"21906e22-5206-4e48-9013-238bea269989","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by","page_number":122,"box":{"x":117,"y":211,"width":760,"height":12}},{"id":"1b9bb865-fe13-452c-a339-47bb6014f1d0","block_type":"box","text":"applicable law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income","page_number":122,"box":{"x":116,"y":227,"width":754,"height":12}},{"id":"02eaac10-4c12-410b-98da-36fcb7cf8e75","block_type":"box","text":"for U.S. federal income tax purposes will be considered “Municipal Bonds” for purposes of a Municipal","page_number":122,"box":{"x":116,"y":242,"width":762,"height":12}},{"id":"29f69bd3-1418-48ae-8065-a4ebc5740f73","block_type":"box","text":"Fund’s investment objective and policies. Non-Municipal Tax-Exempt Securities that pay interest","page_number":122,"box":{"x":117,"y":258,"width":720,"height":12}},{"id":"602e2c66-bc73-4cc9-ac81-c6ad783bcfc1","block_type":"box","text":"excludable from gross income for purposes of U.S. federal income tax and state and local income","page_number":122,"box":{"x":116,"y":273,"width":730,"height":12}},{"id":"c0bd3097-fabe-4683-ac9e-41ed676e60e2","block_type":"box","text":"taxes of a designated state and/or allow the value of a Fund’s shares to be exempt from state and local","page_number":122,"box":{"x":116,"y":289,"width":771,"height":12}},{"id":"d96e96df-b979-41d4-bd91-7258714ba136","block_type":"box","text":"personal property taxes of that state will be considered “State Municipal Bonds” for purposes of the","page_number":122,"box":{"x":117,"y":304,"width":739,"height":12}},{"id":"522e2695-149e-417b-8b0f-abe045e0b6ef","block_type":"box","text":"investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":122,"box":{"x":117,"y":320,"width":724,"height":12}},{"id":"9587ebcb-88da-48e5-9f08-3c7f7b1974dc","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond","page_number":122,"box":{"x":117,"y":335,"width":724,"height":12}},{"id":"f4a758b6-70c1-42e8-9f40-e4d07b9af108","block_type":"box","text":"Fund.","page_number":122,"box":{"x":117,"y":351,"width":46,"height":9}},{"id":"36668eeb-5c64-446e-a4eb-488bd675119c","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":122,"box":{"x":116,"y":380,"width":519,"height":12}},{"id":"e4dbe873-0998-45fb-92e4-983ba5201198","block_type":"box","text":"The risks and special","page_number":122,"box":{"x":636,"y":380,"width":168,"height":12}},{"id":"2f7f64c4-dd47-4179-bb93-5dc24f35b840","block_type":"box","text":"considerations involved in investment in Municipal Bonds vary with the types of instruments being","page_number":122,"box":{"x":116,"y":395,"width":729,"height":12}},{"id":"161e4a8b-f335-47db-9fc7-88458e41d516","block_type":"box","text":"acquired. Investments in Non-Municipal Tax-Exempt Securities may present similar risks, depending","page_number":122,"box":{"x":116,"y":411,"width":751,"height":12}},{"id":"7e1e7234-900d-4158-804a-efa3530f8058","block_type":"box","text":"on the particular product. Certain municipal instruments in which a Fund may invest may be","page_number":122,"box":{"x":116,"y":426,"width":685,"height":12}},{"id":"cf321480-8b09-42c2-8b5c-29c81604d514","block_type":"box","text":"characterized as derivatives.","page_number":122,"box":{"x":116,"y":442,"width":218,"height":9}},{"id":"6715a59a-c6c8-49ce-9e41-e5312ef6913c","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a","page_number":122,"box":{"x":116,"y":471,"width":768,"height":12}},{"id":"b101c92e-9daf-452e-a248-aed38833bcff","block_type":"box","text":"result of legislation or litigation, including legislation or litigation that changes the taxation of Municipal","page_number":122,"box":{"x":117,"y":487,"width":757,"height":12}},{"id":"707c35c8-57ba-4898-aa43-a4516bd0afbe","block_type":"box","text":"Bonds or the rights of Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are","page_number":122,"box":{"x":117,"y":502,"width":764,"height":12}},{"id":"b89947d3-0540-42e6-aea3-eab7b94ab35b","block_type":"box","text":"rare and certain provisions of the U.S. Bankruptcy Code governing such bankruptcies are unclear.","page_number":122,"box":{"x":117,"y":518,"width":732,"height":12}},{"id":"2237e036-2988-497d-a53a-d38daa1f26e7","block_type":"box","text":"Further, the application of state law to Municipal Bond issuers could produce varying results among the","page_number":122,"box":{"x":117,"y":533,"width":770,"height":12}},{"id":"890bedbe-8050-4dc3-979e-de206a67f346","block_type":"box","text":"states or among Municipal Bond issuers within a state. These uncertainties could have a significant","page_number":122,"box":{"x":116,"y":549,"width":742,"height":12}},{"id":"9fec133f-12e4-4ba9-93d5-430fa603060c","block_type":"box","text":"impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":122,"box":{"x":117,"y":564,"width":513,"height":12}},{"id":"d6f6af1e-3bed-42ad-9253-7c89c7a278f1","block_type":"box","text":"Description of Municipal Bonds.","page_number":122,"box":{"x":116,"y":593,"width":240,"height":12}},{"id":"60e3b77b-b491-4fc2-9b68-323e68a71f2e","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including","page_number":122,"box":{"x":117,"y":616,"width":757,"height":12}},{"id":"9b047cc4-2f17-4e34-960c-d6d7a88f1419","block_type":"box","text":"the construction of a wide range of public facilities, refunding of outstanding obligations and obtaining","page_number":122,"box":{"x":116,"y":631,"width":756,"height":12}},{"id":"f397425d-5722-4c74-992d-8ae193788baa","block_type":"box","text":"funds for general operating expenses and loans to other public institutions and facilities. In addition,","page_number":122,"box":{"x":116,"y":647,"width":744,"height":12}},{"id":"0ff0fec8-fdef-45da-ab59-64df169aeeb3","block_type":"box","text":"certain types of bonds are issued by or on behalf of public authorities to finance various privately","page_number":122,"box":{"x":116,"y":662,"width":716,"height":12}},{"id":"812dfa5f-677e-4026-9608-e4dc1536991c","block_type":"box","text":"owned or operated facilities, including certain facilities for the local furnishing of electric energy or gas,","page_number":122,"box":{"x":116,"y":678,"width":757,"height":12}},{"id":"0b2fddca-d702-4bf7-a148-d5a37c87a6d3","block_type":"box","text":"sewage facilities, solid waste disposal facilities and other specialized facilities. Such obligations are","page_number":122,"box":{"x":116,"y":693,"width":735,"height":12}},{"id":"1d349160-957e-4e9b-9615-5c737d787f88","block_type":"box","text":"included within the term Municipal Bonds if the interest paid thereon is excluded from gross income for","page_number":122,"box":{"x":117,"y":709,"width":760,"height":12}},{"id":"f889803b-f2ec-44c9-a693-66fb29ba9436","block_type":"box","text":"U.S. federal income tax purposes and any applicable state and local taxes. Other types of private","page_number":122,"box":{"x":117,"y":724,"width":721,"height":12}},{"id":"07dfd68e-6d85-427d-80d6-ffe945bc3e4a","block_type":"box","text":"activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":122,"box":{"x":116,"y":740,"width":722,"height":12}},{"id":"d82b741f-2817-4220-a45d-654eddfedc3a","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the","page_number":122,"box":{"x":117,"y":755,"width":727,"height":12}},{"id":"6570ca81-b6f1-444c-a0f2-5c8d376c8762","block_type":"box","text":"current U.S. federal tax laws place substantial limitations on the size of such issues. The interest on","page_number":122,"box":{"x":116,"y":771,"width":739,"height":12}},{"id":"53515ef0-5133-4f2c-9ca4-904ceeea5c6a","block_type":"box","text":"Municipal Bonds may bear a fixed rate or be payable at a variable or floating rate. The two principal","page_number":122,"box":{"x":117,"y":786,"width":736,"height":12}},{"id":"fadd4234-bff4-4d18-b5ca-486d006465d8","block_type":"box","text":"classifications of Municipal Bonds are “general obligation” and “revenue” or “special obligation” bonds,","page_number":122,"box":{"x":116,"y":802,"width":756,"height":12}},{"id":"fbd65d3c-d640-4f69-8c44-1dec85cfdd8a","block_type":"box","text":"which latter category includes private activity bonds (“PABs”) (or “industrial development bonds” under","page_number":122,"box":{"x":116,"y":817,"width":760,"height":12}},{"id":"725644c6-b20a-45c7-adf7-a632ba71f729","block_type":"box","text":"pre-1986 law).","page_number":122,"box":{"x":117,"y":833,"width":111,"height":12}},{"id":"87e9fbb8-8e1b-431e-958d-b2a34388ca64","block_type":"box","text":"General Obligation Bonds.","page_number":122,"box":{"x":117,"y":862,"width":194,"height":12}},{"id":"6589ffb6-870e-4c56-a2c9-a807a2c70495","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith,","page_number":122,"box":{"x":313,"y":862,"width":565,"height":12}},{"id":"d7bcb3b4-3e3d-42b9-87f8-91d7d2959fb1","block_type":"box","text":"credit and taxing power for the payment of principal and interest. The taxing power of any","page_number":122,"box":{"x":116,"y":878,"width":668,"height":12}},{"id":"10223b09-e266-4492-8dcb-5ceb275e4c93","block_type":"box","text":"II-72","page_number":122,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"919344f0-cd5e-4e05-a12a-97e19fa4cbb3","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":122,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"e8aea730-9b93-413b-b894-367e7ac83008","block_type":"box","text":"governmental entity may be limited, however, by provisions of its state constitution or laws, and an","page_number":123,"box":{"x":116,"y":87,"width":735,"height":12}},{"id":"4b56ace1-2821-4aa0-b83b-f9e2c415b580","block_type":"box","text":"entity’s creditworthiness will depend on many factors, including potential erosion of its tax base due to","page_number":123,"box":{"x":116,"y":102,"width":760,"height":13}},{"id":"f21b3b3b-1570-4c33-bf20-da15916cce3b","block_type":"box","text":"population declines, natural disasters, declines in the state’s industrial base or inability to attract new","page_number":123,"box":{"x":117,"y":118,"width":750,"height":12}},{"id":"9508ca32-1988-4cca-9fcc-f986bd86d165","block_type":"box","text":"industries, economic limits on the ability to tax without eroding the tax base, state legislative proposals","page_number":123,"box":{"x":117,"y":134,"width":762,"height":12}},{"id":"82e993c3-0be1-4b31-9bb0-19a56d514ac7","block_type":"box","text":"or voter initiatives to limit ad valorem real property taxes and the extent to which the entity relies on","page_number":123,"box":{"x":116,"y":149,"width":740,"height":12}},{"id":"aa4cca21-7628-4755-a8b0-bd1dfeae8925","block_type":"box","text":"federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":123,"box":{"x":116,"y":165,"width":738,"height":12}},{"id":"58102c59-c722-4799-823a-451bb9f2c057","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest","page_number":123,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"c78ffe97-0546-4a96-9802-c317ed26065f","block_type":"box","text":"and the repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":123,"box":{"x":116,"y":196,"width":717,"height":12}},{"id":"5000dedd-16b6-4672-ad2d-dc1f26bc3e5d","block_type":"box","text":"Revenue Bonds.","page_number":123,"box":{"x":116,"y":227,"width":122,"height":9}},{"id":"56b94338-1116-4370-a762-09aee32cc756","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility","page_number":123,"box":{"x":240,"y":227,"width":634,"height":12}},{"id":"d9b0c6a0-188d-4e63-a592-76dfc0501d1e","block_type":"box","text":"or class of facilities or, in some cases, from the proceeds of a special excise tax or other specific","page_number":123,"box":{"x":116,"y":242,"width":720,"height":12}},{"id":"6b76f3d0-4f62-4d9a-8a16-a8ca22c0ffe6","block_type":"box","text":"revenue source such as payments from the user of the facility being financed; accordingly, the timely","page_number":123,"box":{"x":117,"y":258,"width":752,"height":12}},{"id":"c4c42275-b88d-4bde-b0fb-8aad4977093e","block_type":"box","text":"payment of interest and the repayment of principal in accordance with the terms of the revenue or","page_number":123,"box":{"x":117,"y":273,"width":729,"height":12}},{"id":"813cdcab-b582-4bd2-83fd-06c5de5bd51e","block_type":"box","text":"special obligation bond is a function of the economic viability of such facility or such revenue source.","page_number":123,"box":{"x":116,"y":289,"width":749,"height":12}},{"id":"aebc7a17-c56e-45e1-96d0-2f425fc5a9ad","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi","page_number":123,"box":{"x":117,"y":320,"width":730,"height":12}},{"id":"85ed8ca5-a0c4-4807-8cdf-9a90d7f0b5c4","block_type":"box","text":"family housing involve special risks in addition to those associated with municipal bonds generally,","page_number":123,"box":{"x":116,"y":335,"width":735,"height":12}},{"id":"dbf6b7fe-a3b0-40a7-a520-25367cee3acd","block_type":"box","text":"including that the underlying properties may not generate sufficient income to pay expenses and","page_number":123,"box":{"x":117,"y":351,"width":718,"height":12}},{"id":"e5fb175f-e0c1-4a33-ae5f-42ee3c92488d","block_type":"box","text":"interest costs. Such bonds are generally non-recourse against the property owner, may be junior to the","page_number":123,"box":{"x":117,"y":366,"width":768,"height":12}},{"id":"b830a148-fb1e-4dbc-91b9-f2cdeb45119a","block_type":"box","text":"rights of others with an interest in the properties, may pay interest that changes based in part on the","page_number":123,"box":{"x":117,"y":382,"width":746,"height":12}},{"id":"75778243-c29e-4d56-a37a-35ae8fc16d6d","block_type":"box","text":"financial performance of the property, may be prepayable without penalty and may be used to finance","page_number":123,"box":{"x":116,"y":397,"width":760,"height":12}},{"id":"3279fc4e-3a0e-464c-99c1-4f66eeb5e083","block_type":"box","text":"the construction of housing developments which, until completed and rented, do not generate income","page_number":123,"box":{"x":116,"y":413,"width":757,"height":12}},{"id":"24b3a302-2e53-4497-9e9e-d8bd9eddf8bc","block_type":"box","text":"to pay interest. Increases in interest rates payable on senior obligations may make it more difficult for","page_number":123,"box":{"x":116,"y":428,"width":755,"height":12}},{"id":"68421b10-fd35-43bc-908e-4388ff575a9d","block_type":"box","text":"issuers to meet payment obligations on subordinated bonds.","page_number":123,"box":{"x":117,"y":444,"width":452,"height":12}},{"id":"300de5e2-a1f8-4d8c-bde5-5470f85de97e","block_type":"box","text":"PABs.","page_number":123,"box":{"x":116,"y":475,"width":45,"height":9}},{"id":"ac22122f-daf7-477d-8d7a-301bda42f58e","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public","page_number":123,"box":{"x":162,"y":475,"width":666,"height":12}},{"id":"f90d2c74-99b1-4ec3-b4c6-8f8cc0e7413b","block_type":"box","text":"authorities to provide funds, usually through a loan or lease arrangement, to a private entity for the","page_number":123,"box":{"x":116,"y":490,"width":735,"height":12}},{"id":"89904ac8-c3e4-4f4a-9071-0743ae9ca81d","block_type":"box","text":"purpose of financing construction or improvement of a facility to be used by the entity. Such bonds are","page_number":123,"box":{"x":117,"y":506,"width":762,"height":12}},{"id":"3b98eb54-4900-46a9-8fb7-ad0813c644fb","block_type":"box","text":"secured primarily by revenues derived from loan repayments or lease payments due from the entity,","page_number":123,"box":{"x":116,"y":521,"width":747,"height":12}},{"id":"6e62558a-0a68-4fb6-8c37-082d9b8e0753","block_type":"box","text":"which may or may not be guaranteed by a parent company or otherwise secured. PABs generally are","page_number":123,"box":{"x":116,"y":537,"width":758,"height":12}},{"id":"18a9cf6a-21f1-49ee-ab18-47c5758a3e4d","block_type":"box","text":"not secured by a pledge of the taxing power of the issuer of such bonds. Therefore, an investor should","page_number":123,"box":{"x":117,"y":552,"width":764,"height":12}},{"id":"3f16a966-9e7b-421a-b557-734ef01d23f8","block_type":"box","text":"understand that repayment of such bonds generally depends on the revenues of a private entity and be","page_number":123,"box":{"x":117,"y":568,"width":771,"height":12}},{"id":"c9617cfa-3fff-497e-ade3-492aef415459","block_type":"box","text":"aware of the risks that such an investment may entail. The continued ability of an entity to generate","page_number":123,"box":{"x":116,"y":583,"width":741,"height":12}},{"id":"8d0af5f8-7c17-4b21-970f-7dd7a421acbb","block_type":"box","text":"sufficient revenues for the payment of principal and interest on such bonds will be affected by many","page_number":123,"box":{"x":116,"y":599,"width":744,"height":12}},{"id":"87f61fcc-9ed3-41ad-ab9f-10c6338def05","block_type":"box","text":"factors including the size of the entity, its capital structure, demand for its products or services,","page_number":123,"box":{"x":116,"y":614,"width":707,"height":12}},{"id":"a41dbb3c-e74a-43a5-8260-fa02a96e5869","block_type":"box","text":"competition, general economic conditions, government regulation and the entity’s dependence on","page_number":123,"box":{"x":116,"y":630,"width":728,"height":12}},{"id":"9c2ff600-3b32-4f9a-a5a9-79a07e84c772","block_type":"box","text":"revenues for the operation of the particular facility being financed.","page_number":123,"box":{"x":117,"y":645,"width":491,"height":12}},{"id":"7cfaa5cc-298a-4206-abd1-c43f863df8ef","block_type":"box","text":"Moral Obligation Bonds.","page_number":123,"box":{"x":116,"y":676,"width":178,"height":12}},{"id":"118635f9-d5ab-4fed-93f0-b0d0e715aa38","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public","page_number":123,"box":{"x":301,"y":676,"width":523,"height":12}},{"id":"76d5245f-4982-41a3-925f-b8331e127d9a","block_type":"box","text":"authorities. If an issuer of moral obligation bonds is unable to meet its obligations, the repayment of","page_number":123,"box":{"x":116,"y":692,"width":738,"height":12}},{"id":"65e3448a-64b9-4689-a432-761187c79d2d","block_type":"box","text":"such bonds becomes a moral commitment but not a legal obligation of the state or municipality that","page_number":123,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"331607f7-8457-4afd-bc52-cef93749829a","block_type":"box","text":"created the special purpose public authority that issued the bonds.","page_number":123,"box":{"x":116,"y":723,"width":492,"height":12}},{"id":"eb669286-7e9b-41a0-888c-9ea04d31bb2b","block_type":"box","text":"Municipal Notes.","page_number":123,"box":{"x":116,"y":754,"width":122,"height":12}},{"id":"161321cb-c847-4e46-9ca8-70725da2fd1c","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim","page_number":123,"box":{"x":246,"y":754,"width":636,"height":12}},{"id":"6778a59d-8b42-412a-b6fa-77e566f01bf5","block_type":"box","text":"financing in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the","page_number":123,"box":{"x":116,"y":769,"width":737,"height":12}},{"id":"b61b4532-67b8-4ef0-ba7d-f6b1d2bb7591","block_type":"box","text":"anticipated proceeds, repayment on the note may be delayed or the note may not be fully repaid, and a","page_number":123,"box":{"x":116,"y":785,"width":766,"height":12}},{"id":"b918f837-803a-47f0-a069-6f7ad44c1c32","block_type":"box","text":"Fund may lose money.","page_number":123,"box":{"x":117,"y":800,"width":167,"height":12}},{"id":"418b34bd-e240-4390-a151-420de277998a","block_type":"box","text":"Municipal Commercial Paper.","page_number":123,"box":{"x":116,"y":831,"width":218,"height":12}},{"id":"9e5dfd81-14ba-4b99-be82-79e7c9e9e141","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet","page_number":123,"box":{"x":335,"y":831,"width":539,"height":12}},{"id":"ab3b216f-04e8-428c-aa29-b00fb3fac7ea","block_type":"box","text":"short-term financing needs. The lack of security presents some risk of loss to a Fund since, in the","page_number":123,"box":{"x":116,"y":847,"width":728,"height":12}},{"id":"5a088554-0635-428f-a1b3-5e9a8f8195bd","block_type":"box","text":"event of an issuer’s bankruptcy, unsecured creditors are repaid only after the secured creditors out of","page_number":123,"box":{"x":116,"y":862,"width":757,"height":12}},{"id":"7644723a-61fa-4c22-a019-d79349862806","block_type":"box","text":"the assets, if any, that remain.","page_number":123,"box":{"x":116,"y":878,"width":229,"height":12}},{"id":"8d494f88-963f-4aa9-b6b0-ded87ab24349","block_type":"box","text":"II-73","page_number":123,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"b0327d13-2ded-4f32-966b-2300d91ac77b","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":123,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"f18aec82-127a-47aa-92bd-709d45654866","block_type":"box","text":"Municipal Lease Obligations.","page_number":124,"box":{"x":116,"y":87,"width":213,"height":12}},{"id":"a93203dc-5b55-4b41-89b1-95120208285f","block_type":"box","text":"Also included within the general category of Municipal Bonds are","page_number":124,"box":{"x":331,"y":87,"width":491,"height":12}},{"id":"7bff82b4-49eb-4f62-b7b2-dd07ba02771e","block_type":"box","text":"certificates of participation (“COPs”) issued by government authorities or entities to finance the","page_number":124,"box":{"x":116,"y":102,"width":706,"height":13}},{"id":"63b18591-f38a-4cc8-a630-25a0ac84c89d","block_type":"box","text":"acquisition or construction of equipment, land and/or facilities. The COPs represent participations in a","page_number":124,"box":{"x":116,"y":118,"width":758,"height":12}},{"id":"b1e29ee5-5d0e-43cc-9432-211a506c7a28","block_type":"box","text":"lease, an installment purchase contract or a conditional sales contract (hereinafter collectively called","page_number":124,"box":{"x":117,"y":134,"width":748,"height":12}},{"id":"92585852-d555-4b2b-acb7-cc8c85d668f2","block_type":"box","text":"“lease obligations”) relating to such equipment, land or facilities. Municipal leases, like other municipal","page_number":124,"box":{"x":116,"y":149,"width":761,"height":12}},{"id":"52eede46-eb07-46c7-afcc-3294dac4f51b","block_type":"box","text":"debt obligations, are subject to the risk of non-payment. Although lease obligations do not constitute","page_number":124,"box":{"x":116,"y":165,"width":747,"height":12}},{"id":"4b86fbee-8320-4a36-9ba5-4a75f1335fd9","block_type":"box","text":"general obligations of the issuer for which the issuer’s unlimited taxing power is pledged, a lease","page_number":124,"box":{"x":116,"y":180,"width":721,"height":12}},{"id":"63109e64-b30d-4935-995c-26dda640907e","block_type":"box","text":"obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":124,"box":{"x":116,"y":196,"width":716,"height":12}},{"id":"0b001dab-bda8-4f95-9de0-05fbfd9b32da","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain","page_number":124,"box":{"x":117,"y":211,"width":631,"height":12}},{"id":"b639e121-810f-4443-bb42-4b70a3c1f016","block_type":"box","text":"“non-appropriation” clauses, which provide that the issuer has no obligation to make lease or","page_number":124,"box":{"x":116,"y":227,"width":693,"height":12}},{"id":"d32de32e-2ba9-498a-b78f-88f3d7b6e307","block_type":"box","text":"installment purchase payments in future years unless money is appropriated for such purpose on a","page_number":124,"box":{"x":117,"y":242,"width":739,"height":12}},{"id":"f9fdaeec-ae2d-4362-8797-58714dc753d1","block_type":"box","text":"yearly basis. Although “non-appropriation” lease obligations are secured by the leased property,","page_number":124,"box":{"x":116,"y":258,"width":716,"height":12}},{"id":"c05a5e5a-f681-4362-9425-336cc42ba0f7","block_type":"box","text":"disposition of the property in the event of foreclosure might prove difficult. These securities represent a","page_number":124,"box":{"x":116,"y":273,"width":767,"height":12}},{"id":"42103152-14fd-4f19-a924-cba4df4965a3","block_type":"box","text":"type of financing that has not yet developed the depth of marketability associated with more","page_number":124,"box":{"x":116,"y":289,"width":685,"height":12}},{"id":"4c9660f2-5681-44a7-aa22-f19b1a856b21","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":124,"box":{"x":116,"y":304,"width":596,"height":12}},{"id":"1d489959-6950-481d-a3ba-1fc1f0d98336","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in","page_number":124,"box":{"x":116,"y":335,"width":769,"height":12}},{"id":"38173873-5c6f-42c2-b8fd-beb6015920b2","block_type":"box","text":"general economic downturns and as relative governmental cost burdens are allocated and reallocated","page_number":124,"box":{"x":116,"y":351,"width":762,"height":12}},{"id":"8be03abc-fdfe-48a8-9464-620241eacbe4","block_type":"box","text":"among federal, state and local governmental units. Such non-payment would result in a reduction of","page_number":124,"box":{"x":116,"y":366,"width":746,"height":12}},{"id":"a1fb8f90-55dd-4d31-a30e-14a4f4a266f2","block_type":"box","text":"income to a Fund and could result in a","page_number":124,"box":{"x":117,"y":382,"width":289,"height":9}},{"id":"df044553-0e89-40ce-bd84-e5f4033cef74","block_type":"box","text":"reduction in the value of the municipal lease experiencing","page_number":124,"box":{"x":407,"y":382,"width":431,"height":12}},{"id":"2ae7bb7f-6861-4f65-972d-f68abbb60eae","block_type":"box","text":"non-payment and a potential decrease in the NAV of a Fund. Issuers of municipal securities might","page_number":124,"box":{"x":117,"y":397,"width":731,"height":12}},{"id":"643561c6-a89d-4123-b4ba-59917f73ee66","block_type":"box","text":"seek protection under the bankruptcy laws. In the event of bankruptcy of such an issuer, a Fund could","page_number":124,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"bdd83cf4-eba1-4daf-a719-98016713e99b","block_type":"box","text":"experience delays and limitations with respect to the collection of principal and interest on such","page_number":124,"box":{"x":116,"y":428,"width":711,"height":12}},{"id":"6ab9d7de-8779-42a1-a16a-b7e2c4a0094f","block_type":"box","text":"municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest","page_number":124,"box":{"x":117,"y":444,"width":755,"height":12}},{"id":"f01b1f55-fc76-4de1-9a41-bb72f8668515","block_type":"box","text":"to which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might","page_number":124,"box":{"x":116,"y":459,"width":740,"height":12}},{"id":"d50f9669-0175-4c5b-b70a-498fe6b10fd0","block_type":"box","text":"take possession of and manage the assets securing the issuer’s obligations on such securities, which","page_number":124,"box":{"x":116,"y":475,"width":758,"height":12}},{"id":"fa2c1e11-d396-4b0c-b837-caad843b8942","block_type":"box","text":"may increase a Fund’s operating expenses and adversely affect the NAV of a Fund. When the lease","page_number":124,"box":{"x":117,"y":490,"width":749,"height":12}},{"id":"3ddb408a-f7d4-499a-ae10-9499b16052aa","block_type":"box","text":"contains a non-appropriation clause, however, the failure to pay would not be a default and a Fund","page_number":124,"box":{"x":116,"y":506,"width":737,"height":12}},{"id":"21710b08-ed0e-4965-a0dd-49d17715d3a8","block_type":"box","text":"would not have the right to take possession of the assets. Any income derived from a Fund’s","page_number":124,"box":{"x":116,"y":521,"width":692,"height":12}},{"id":"8db0d91a-2a73-4784-8512-a0eeec574df5","block_type":"box","text":"ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s intention to qualify","page_number":124,"box":{"x":116,"y":537,"width":765,"height":12}},{"id":"699c904b-c4af-401e-b7d4-9ae5282901a3","block_type":"box","text":"as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":124,"box":{"x":116,"y":552,"width":717,"height":12}},{"id":"099f0ef7-486d-47da-82ac-0322a37d70a0","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a","page_number":124,"box":{"x":116,"y":568,"width":765,"height":12}},{"id":"f142dc2e-753e-4de9-bc6f-0d2916b133e8","block_type":"box","text":"Fund is subject to certain limitations on its investments and on the nature of its income.","page_number":124,"box":{"x":117,"y":583,"width":650,"height":12}},{"id":"ae89cd53-229f-46b9-a155-cbcce4ec4999","block_type":"box","text":"Tender Option Bonds.","page_number":124,"box":{"x":118,"y":614,"width":161,"height":12}},{"id":"f24ce0ef-43f4-4f6b-b6ba-cb00d048ac07","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option","page_number":124,"box":{"x":280,"y":614,"width":596,"height":12}},{"id":"15e6533f-0ec8-4d89-8a00-10e3a58dae50","block_type":"box","text":"bonds (“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in","page_number":124,"box":{"x":117,"y":630,"width":736,"height":12}},{"id":"b14185aa-0868-4c73-bdaf-5f72ec6fcc13","block_type":"box","text":"which the Funds will invest pay interest or income that, in the opinion of counsel to the issuer, is","page_number":124,"box":{"x":116,"y":645,"width":715,"height":12}},{"id":"b4f37828-8e5c-4b28-b24e-083a618f1438","block_type":"box","text":"exempt from regular U.S. federal income tax. BlackRock will not conduct its own analysis of the tax","page_number":124,"box":{"x":116,"y":661,"width":735,"height":12}},{"id":"d0b84153-5829-4426-b476-ba022e8fff20","block_type":"box","text":"status of the interest or income paid by TOB Residuals held by the Funds, but will rely on the opinion of","page_number":124,"box":{"x":116,"y":676,"width":767,"height":12}},{"id":"26edb781-1c0b-4707-aa7f-8d99e38ac812","block_type":"box","text":"counsel to the issuer. Although volatile, TOB Residuals typically offer the potential for yields exceeding","page_number":124,"box":{"x":116,"y":692,"width":761,"height":12}},{"id":"a7502a3f-3510-4b10-bd75-71e0513984b4","block_type":"box","text":"the yields available on fixed rate Municipal Bonds with comparable credit quality. The Funds may","page_number":124,"box":{"x":116,"y":707,"width":720,"height":12}},{"id":"533e2cef-a91a-4ea9-a6c0-efdd36ec8810","block_type":"box","text":"invest in TOB Residuals for the purpose of using economic leverage.","page_number":124,"box":{"x":117,"y":723,"width":509,"height":12}},{"id":"cafa7060-e71d-44a4-832d-e9dd7c5a9aa0","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of","page_number":124,"box":{"x":116,"y":754,"width":719,"height":12}},{"id":"418ea123-3b6d-4584-825a-7e31f074b4e2","block_type":"box","text":"holding Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically","page_number":124,"box":{"x":117,"y":769,"width":719,"height":12}},{"id":"2b1f9451-5ad9-4506-82d9-8f13dd6e1c25","block_type":"box","text":"issues two classes of beneficial interests: short-term floating rate interests (“TOB Floaters”), which are","page_number":124,"box":{"x":117,"y":785,"width":756,"height":12}},{"id":"fbcc9bc3-2741-4621-913d-177764c881ee","block_type":"box","text":"sold to third-party investors, and TOB Residuals, which are generally issued to the fund(s) that","page_number":124,"box":{"x":116,"y":800,"width":701,"height":12}},{"id":"201d67ea-7779-48ef-bfd9-95032b7801f7","block_type":"box","text":"transferred Municipal Bonds to the TOB Trust. The Funds may invest in both TOB Floaters and TOB","page_number":124,"box":{"x":116,"y":816,"width":745,"height":12}},{"id":"4de85b0d-a2a2-4938-afe1-6eb669b099ea","block_type":"box","text":"Residuals. TOB Floaters may have first priority on the cash flow from the Municipal Bonds held by the","page_number":124,"box":{"x":117,"y":831,"width":759,"height":12}},{"id":"072cd6b9-0467-4478-960c-68d7ada2d2ff","block_type":"box","text":"TOB Trust and are enhanced with a liquidity support arrangement from a third-party Liquidity Provider","page_number":124,"box":{"x":116,"y":847,"width":760,"height":12}},{"id":"523c617b-29af-46ee-8e52-0fa5f479331a","block_type":"box","text":"(defined below) which allows holders to tender their position at par (plus accrued interest). A Fund, as","page_number":124,"box":{"x":117,"y":862,"width":758,"height":12}},{"id":"4a637fe7-96ea-4319-9fc3-77ceb9dab1be","block_type":"box","text":"a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes","page_number":124,"box":{"x":116,"y":878,"width":759,"height":12}},{"id":"1bbc7766-e787-443b-b625-b095e05da39b","block_type":"box","text":"II-74","page_number":124,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"eea13eb8-ee24-4546-ac58-ffa3d716e0b8","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":124,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"433ee87a-b5d4-4fa0-939d-c1a78c9daac3","block_type":"box","text":"the Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the","page_number":125,"box":{"x":116,"y":87,"width":757,"height":12}},{"id":"6661cffb-da29-487b-b6fa-f713a960f983","block_type":"box","text":"TOB Floaters, less certain transaction costs, and typically will invest the cash to purchase additional","page_number":125,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"71055a81-9d47-4ab9-af54-b817ea275f46","block_type":"box","text":"Municipal Bonds or other investments permitted by its investment policies. If a Fund ever purchases all","page_number":125,"box":{"x":117,"y":118,"width":767,"height":12}},{"id":"da6c4c1f-348c-4d91-83b3-15a7e7384f54","block_type":"box","text":"or a portion of the TOB Floaters sold by the TOB Trust, it may surrender those TOB Floaters together","page_number":125,"box":{"x":116,"y":134,"width":758,"height":12}},{"id":"4d69a5e1-d9bf-4ca4-a843-c6b99a7ade9c","block_type":"box","text":"with a proportionate amount of TOB Residuals to the TOB Trust in exchange for a proportionate","page_number":125,"box":{"x":116,"y":149,"width":717,"height":12}},{"id":"7e76eff2-cdbe-465d-8ea1-6651f26a328e","block_type":"box","text":"amount of the Municipal Bonds owned by the TOB Trust.","page_number":125,"box":{"x":116,"y":165,"width":427,"height":12}},{"id":"8831b1b5-ade7-4706-96ee-16afc0e812e7","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has","page_number":125,"box":{"x":116,"y":196,"width":767,"height":12}},{"id":"a588cb97-a21d-4d69-96e7-42428123f8fd","block_type":"box","text":"contributed Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust,","page_number":125,"box":{"x":116,"y":211,"width":752,"height":12}},{"id":"53cd063b-3b3a-4cf9-adca-856e4d172a1e","block_type":"box","text":"the economic rights and obligations under the TOB Residual will generally be shared among the funds","page_number":125,"box":{"x":116,"y":227,"width":764,"height":12}},{"id":"5a595be3-28bf-4159-a3fb-2193c900413d","block_type":"box","text":"ratably in proportion to their participation in the TOB Trust.","page_number":125,"box":{"x":117,"y":242,"width":437,"height":12}},{"id":"abfa5430-8ec2-4f12-8420-7a623c434101","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typi","page_number":125,"box":{"x":116,"y":273,"width":380,"height":12}},{"id":"3f2897cf-32d4-4afb-9510-987db4e84879","block_type":"box","text":"cally are high grade Municipal Bonds. In certain","page_number":125,"box":{"x":497,"y":273,"width":350,"height":12}},{"id":"a2bc417a-2323-430c-9ce5-c0a11c704a5c","block_type":"box","text":"cases, when Municipal Bonds transferred are lowe","page_number":125,"box":{"x":116,"y":289,"width":367,"height":12}},{"id":"8204a9b0-c439-4d46-b3f7-5d756614d4a5","block_type":"box","text":"r grade Municipal Bonds, the TOB Trust transaction","page_number":125,"box":{"x":485,"y":289,"width":379,"height":12}},{"id":"78348888-3ac5-42c6-b0af-f8b890493902","block_type":"box","text":"includes a credit enhancement feature that provides fo","page_number":125,"box":{"x":117,"y":304,"width":395,"height":12}},{"id":"91994cbd-368c-469a-befa-c0a0253657a5","block_type":"box","text":"r the timely payment of principal and interest on","page_number":125,"box":{"x":513,"y":304,"width":349,"height":12}},{"id":"86f92b4c-077b-44ff-a91c-81f534ecd937","block_type":"box","text":"the bonds to the TOB Trust by a credit enhancement","page_number":125,"box":{"x":116,"y":320,"width":388,"height":12}},{"id":"dea3c175-fc25-46fa-a679-dcde0415825a","block_type":"box","text":"provider. The TOB Trust would be responsible for","page_number":125,"box":{"x":505,"y":320,"width":364,"height":12}},{"id":"96ed4b31-2af2-4ca0-b458-676e52a604cf","block_type":"box","text":"the payment of the credit enhancem","page_number":125,"box":{"x":116,"y":335,"width":262,"height":12}},{"id":"99a32cf2-af76-40dd-99cd-54a07832b177","block_type":"box","text":"ent fee and a Fund, as a TOB Residual holder, would be responsible","page_number":125,"box":{"x":379,"y":335,"width":504,"height":12}},{"id":"266ab108-ac2e-428f-ac4f-0442ef73a639","block_type":"box","text":"for reimbursement of any payments of principal","page_number":125,"box":{"x":116,"y":351,"width":348,"height":12}},{"id":"377b89d2-62b5-40b0-ba7e-32dbd33adc8a","block_type":"box","text":"and interest made by the credit enhancement provider.","page_number":125,"box":{"x":464,"y":351,"width":403,"height":12}},{"id":"c441d066-523b-46ab-ab2e-992b5dc0b1f7","block_type":"box","text":"The TOB Residuals held by a Fund generally provide t","page_number":125,"box":{"x":116,"y":382,"width":396,"height":12}},{"id":"b8a31796-ca83-4a1f-9602-6f4890c34f50","block_type":"box","text":"he Fund with the right to cause the holders of a","page_number":125,"box":{"x":513,"y":382,"width":346,"height":12}},{"id":"00ea0800-8d53-430d-9596-945d1022b548","block_type":"box","text":"proportional share of the TOB Floaters","page_number":125,"box":{"x":117,"y":397,"width":284,"height":12}},{"id":"a9b7c281-fd72-47eb-a989-bb1a9be8da8a","block_type":"box","text":"to tender their notes to the TOB Trust at par plus accrued interest.","page_number":125,"box":{"x":401,"y":397,"width":485,"height":12}},{"id":"148f9961-515d-436d-ad0c-da7df6763829","block_type":"box","text":"Thereafter, the Fund may withdraw a corresponding share","page_number":125,"box":{"x":116,"y":413,"width":428,"height":12}},{"id":"1cd3c959-ed9b-44ff-acbd-f526a3bf70b7","block_type":"box","text":"of the Municipal Bonds from the TOB Trust.","page_number":125,"box":{"x":545,"y":413,"width":321,"height":12}},{"id":"0c22c67c-68f3-4bcc-bf9e-bf73418f173a","block_type":"box","text":"This transaction, in effect, creates exposure for the Fund","page_number":125,"box":{"x":116,"y":428,"width":416,"height":12}},{"id":"910e9386-5f50-4a83-873d-320725ab408e","block_type":"box","text":"to the entire return of the Municipal Bonds in the","page_number":125,"box":{"x":532,"y":428,"width":355,"height":12}},{"id":"ef341cfc-2598-4379-927e-2f850a785ebb","block_type":"box","text":"TOB Trust, with a net cash investment by the Fund that","page_number":125,"box":{"x":116,"y":444,"width":403,"height":12}},{"id":"34c68b4c-9608-4dbf-ab80-7207fb2f84b6","block_type":"box","text":"t is less than the value of the Municipal Bonds in","page_number":125,"box":{"x":519,"y":444,"width":351,"height":12}},{"id":"5aa9f525-3b81-4658-a878-c0b3c7433c21","block_type":"box","text":"the TOB Trust. This multiplies the positive or negative","page_number":125,"box":{"x":116,"y":459,"width":395,"height":12}},{"id":"9186270d-3f9c-4507-a15f-c3c828599b7e","block_type":"box","text":"impact of the Municipal Bonds’ return within the","page_number":125,"box":{"x":512,"y":459,"width":348,"height":12}},{"id":"b9cb89cd-5bd3-41bc-a71e-cb9ee35d8fe3","block_type":"box","text":"Fund (thereby creating leverage). The leverage within a","page_number":125,"box":{"x":117,"y":475,"width":408,"height":12}},{"id":"f9daa2cd-d5f3-4421-a5af-0235cf8833e8","block_type":"box","text":"TOB Trust depends on the value of the Municipal","page_number":125,"box":{"x":525,"y":475,"width":362,"height":12}},{"id":"a1105db8-0c63-439b-b398-425649a61695","block_type":"box","text":"Bonds deposited in the TOB Trust relative to","page_number":125,"box":{"x":117,"y":490,"width":327,"height":12}},{"id":"bd81e35c-ed3c-42f0-8de4-cc6eea20bf0f","block_type":"box","text":"the value of the TOB Floaters it issues.","page_number":125,"box":{"x":444,"y":490,"width":288,"height":10}},{"id":"a6913369-5c78-44f4-80ba-22e8d390eaa5","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly","page_number":125,"box":{"x":116,"y":521,"width":762,"height":12}},{"id":"3f3d32e1-ed84-4dfd-a06d-0c12fc6a2f02","block_type":"box","text":"leveraged if the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of","page_number":125,"box":{"x":117,"y":537,"width":765,"height":12}},{"id":"4a50d004-2982-407d-afcb-a09f90d67583","block_type":"box","text":"the principal amount of the Municipal Bonds owned by the TOB Trust.","page_number":125,"box":{"x":116,"y":552,"width":523,"height":12}},{"id":"9cedb96e-9d0c-401d-9f80-e5b01a670981","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option","page_number":125,"box":{"x":116,"y":583,"width":757,"height":12}},{"id":"4ad7efc5-5349-41ca-ae64-d43d97df55c5","block_type":"box","text":"termination events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust","page_number":125,"box":{"x":116,"y":599,"width":768,"height":12}},{"id":"7804b24f-06c1-4e9f-91d5-c0c947def722","block_type":"box","text":"agreements. TOTEs include the bankruptcy or default of the issuer of the Municipal Bonds held in the","page_number":125,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"66f3e6e4-6415-4d6c-be62-832dd49460ae","block_type":"box","text":"TOB Trust, a substantial downgrade in the credit quality of the issuer of the Municipal Bonds held in","page_number":125,"box":{"x":116,"y":630,"width":744,"height":12}},{"id":"86e64f65-e384-4918-9c0b-e7bd49496149","block_type":"box","text":"the TOB Trust, failure of any scheduled payment of principal or interest on the Municipal Bonds, and a","page_number":125,"box":{"x":116,"y":645,"width":763,"height":12}},{"id":"4210e8c7-da61-426a-9e6e-c1c5c7e9afd7","block_type":"box","text":"judgment or ruling that interest on the Municipal Bonds is subject to U.S. federal income taxation.","page_number":125,"box":{"x":115,"y":661,"width":721,"height":12}},{"id":"412a7907-8bb7-438d-a046-75a281e29b6e","block_type":"box","text":"MTEs may include, among other things, a failed remarketing of the TOB Floaters, the inability of the","page_number":125,"box":{"x":117,"y":676,"width":739,"height":12}},{"id":"d6633cd2-3483-4a29-8c3d-a8ced866d3a0","block_type":"box","text":"TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":125,"box":{"x":116,"y":692,"width":760,"height":12}},{"id":"7bb0a543-d5be-4dd2-a6df-23cab4700be8","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a","page_number":125,"box":{"x":116,"y":707,"width":729,"height":12}},{"id":"c7238dfe-67cd-419d-871b-90fc7d609c29","block_type":"box","text":"TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee","page_number":125,"box":{"x":116,"y":723,"width":752,"height":12}},{"id":"d3a16624-0988-4683-afb2-158609a162c0","block_type":"box","text":"of the TOB Trust, the remarketing agent of the TOB Floaters and the Liquidity Provider (defined","page_number":125,"box":{"x":116,"y":738,"width":708,"height":12}},{"id":"31b4e3c0-4a4b-4f60-a60d-e41d524a08a0","block_type":"box","text":"below). In the case of an MTE, after the payment of fees, the holders of the TOB Floaters would be","page_number":125,"box":{"x":117,"y":754,"width":734,"height":12}},{"id":"e76aca1c-38b4-47ae-a5dc-dd5f4da27baf","block_type":"box","text":"paid senior to the TOB Residual holders (","page_number":125,"box":{"x":117,"y":769,"width":307,"height":12}},{"id":"6a50dff7-bd0f-4614-a6b7-90715cd306d7","block_type":"box","text":"i.e.","page_number":125,"box":{"x":425,"y":769,"width":20,"height":10}},{"id":"084acfb3-5a8d-4e5a-a51d-ac48aa56ad73","block_type":"box","text":", the Fund). In contrast, in the case of a TOTE, after","page_number":125,"box":{"x":448,"y":769,"width":385,"height":12}},{"id":"8a6ce867-6587-4032-bfd6-e1a8ffaf49c5","block_type":"box","text":"payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro rata in","page_number":125,"box":{"x":117,"y":785,"width":753,"height":12}},{"id":"f18d2e8a-24c9-4862-8711-45074889641c","block_type":"box","text":"proportion to the respective face values of their certificates.","page_number":125,"box":{"x":117,"y":800,"width":437,"height":12}},{"id":"a9afe1d6-3db1-45b2-92f1-5048c788b2df","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically","page_number":125,"box":{"x":116,"y":831,"width":769,"height":12}},{"id":"31b52b90-d43a-4608-90e7-6b358c07ba7d","block_type":"box","text":"supported by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity","page_number":125,"box":{"x":116,"y":847,"width":766,"height":12}},{"id":"79ade580-26ec-4ef8-a049-6fa6cfb183c5","block_type":"box","text":"Provider”) that allows the holders of the TOB Floaters to tender their TOB Floaters in exchange for","page_number":125,"box":{"x":117,"y":862,"width":734,"height":12}},{"id":"9758bbb2-054c-43f1-b010-d2e4e46584c9","block_type":"box","text":"payment of par plus accrued interest on any business day (subject to the non-occurrence of a TOTE","page_number":125,"box":{"x":117,"y":878,"width":748,"height":12}},{"id":"329302bc-b1e3-4446-a007-1a22c354231b","block_type":"box","text":"II-75","page_number":125,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"9fa5e9eb-21ba-4ba2-a491-522024b0d12d","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":125,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"34473138-2032-43ad-a49a-357e8b84ce72","block_type":"box","text":"described above). Depending on the structure of the TOB Trust, the Liquidity Provider may purchase","page_number":126,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"70c428df-e613-48e1-9b5c-708fcef69405","block_type":"box","text":"the tendered TOB Floaters, or the TOB Trust may draw upon a loan from the Liquidity Provider to","page_number":126,"box":{"x":116,"y":102,"width":728,"height":13}},{"id":"6d0f21f7-341d-4c3a-88cf-dd710ff9ae63","block_type":"box","text":"purchase the tendered TOB Floaters.","page_number":126,"box":{"x":117,"y":118,"width":281,"height":12}},{"id":"dc67887a-b366-4d6a-b7e0-686ee2b50ced","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to","page_number":126,"box":{"x":116,"y":149,"width":758,"height":12}},{"id":"3efd509d-14f1-48a2-8c01-a484da64b0d1","block_type":"box","text":"make a payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion","page_number":126,"box":{"x":117,"y":165,"width":753,"height":12}},{"id":"926f8bc2-1611-4fbc-8a83-c1a7ac517978","block_type":"box","text":"of the Municipal Bonds held in the TOB Trust and then fund the balance, if any, of the amount owed","page_number":126,"box":{"x":116,"y":180,"width":746,"height":12}},{"id":"9796e3b6-801e-4b5d-b235-fb0af80a7a0e","block_type":"box","text":"under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in","page_number":126,"box":{"x":117,"y":196,"width":760,"height":12}},{"id":"5d264465-bcf6-4803-a84d-e89610728aaf","block_type":"box","text":"a TOB Trust on a recourse basis, it will typically enter into a reimbursement agreement with the","page_number":126,"box":{"x":116,"y":211,"width":712,"height":12}},{"id":"e87224bf-16d0-4177-9d70-8f7662c7394a","block_type":"box","text":"Liquidity Provider pursuant to which the Fund is required to reimburse the Liquidity Provider the","page_number":126,"box":{"x":117,"y":227,"width":712,"height":12}},{"id":"2679ef36-af5a-4ee5-9443-458b9aef073c","block_type":"box","text":"amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust, the Fund","page_number":126,"box":{"x":116,"y":242,"width":759,"height":12}},{"id":"c04af496-e1ca-419d-9cde-c09b43eb6903","block_type":"box","text":"will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":126,"box":{"x":116,"y":258,"width":751,"height":12}},{"id":"dd095fa6-4d19-4cbf-81f4-2991f60f55e4","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their","page_number":126,"box":{"x":117,"y":273,"width":678,"height":12}},{"id":"b0f2f68f-5746-4e00-8c2e-5186b1a5a0a0","block_type":"box","text":"participation in the TOB Trust.","page_number":126,"box":{"x":117,"y":289,"width":227,"height":12}},{"id":"a2c82636-c63e-463f-a6b6-7d32a0d142a2","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are","page_number":126,"box":{"x":117,"y":320,"width":682,"height":12}},{"id":"b8b9a199-bcde-458f-a1ae-ce9b7de6ade8","block_type":"box","text":"investments of the Fund and are presented on the Fund’s Schedule of Investments and outstanding","page_number":126,"box":{"x":117,"y":335,"width":745,"height":12}},{"id":"ebf51793-8859-4d99-b5b1-f583b6058be0","block_type":"box","text":"TOB Floaters issued by a TOB Trust are presented as liabilities in the Fund’s Statement of Assets and","page_number":126,"box":{"x":116,"y":351,"width":765,"height":12}},{"id":"20e66de8-cc6f-440c-8c62-1a952748acda","block_type":"box","text":"Liabilities. Interest income from the underlying Municipal Bonds is recorded by a Fund on an accrual","page_number":126,"box":{"x":117,"y":366,"width":747,"height":12}},{"id":"a2cace39-498a-4bc0-a1e7-6ac667913262","block_type":"box","text":"basis. Interest expense incurred on the","page_number":126,"box":{"x":117,"y":382,"width":288,"height":12}},{"id":"7485bdd8-ccc6-4c24-a830-05d5088fdaef","block_type":"box","text":"TOB Floaters and other expenses related to remarketing,","page_number":126,"box":{"x":409,"y":382,"width":430,"height":12}},{"id":"bd478b37-5eef-40ce-b3b0-661fdfceb3ed","block_type":"box","text":"administration, trustee and other services to a TOB Trust are reported as expenses of a Fund. In","page_number":126,"box":{"x":116,"y":397,"width":722,"height":12}},{"id":"6abea555-ec87-4df1-a3ef-0cd8a2622190","block_type":"box","text":"addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented","page_number":126,"box":{"x":116,"y":413,"width":757,"height":12}},{"id":"1334af18-b954-46a8-8995-b93c68d6acf5","block_type":"box","text":"as loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s","page_number":126,"box":{"x":116,"y":428,"width":721,"height":10}},{"id":"3734d19a-bec2-4290-9faa-d9d9e9b8f9b0","block_type":"box","text":"assets.","page_number":126,"box":{"x":116,"y":444,"width":58,"height":9}},{"id":"2058beac-6b34-42e3-9d63-a83894cfbb55","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal","page_number":126,"box":{"x":117,"y":475,"width":765,"height":12}},{"id":"a1d3ae1b-3925-45f3-92aa-f1d006b118ab","block_type":"box","text":"Bonds with maturities or remarketing provisions that are comparable in duration to the periodic interval","page_number":126,"box":{"x":117,"y":490,"width":764,"height":12}},{"id":"731b3832-ed62-4338-9b4f-ccd3ca73b555","block_type":"box","text":"of the tender option. Since the tender option feature has a shorter term than the final maturity or first","page_number":126,"box":{"x":116,"y":506,"width":748,"height":12}},{"id":"08a3fe5e-dd1e-446b-9e94-afba5d6453d9","block_type":"box","text":"call date of the underlying Municipal Bonds deposited in the TOB Trust, the holder of the TOB Floaters","page_number":126,"box":{"x":116,"y":521,"width":766,"height":12}},{"id":"a9eb94db-dcb5-445c-b0c8-bf24395ce11f","block_type":"box","text":"relies upon the terms of the agreement with the financial institution furnishing the liquidity facility as","page_number":126,"box":{"x":117,"y":537,"width":738,"height":12}},{"id":"af003fc4-4d0e-4579-9dac-b4ddd3e1c07d","block_type":"box","text":"well as the credit strength of that institution. The risk associated with TOB Floaters, however, may be","page_number":126,"box":{"x":116,"y":552,"width":754,"height":12}},{"id":"4c59275e-23f4-4efd-9075-da6d40fc45b0","block_type":"box","text":"increased in the current market environment as a result of recent downgrades to the credit ratings, and","page_number":126,"box":{"x":117,"y":568,"width":767,"height":12}},{"id":"c9e6f332-bf51-49cf-bb18-42e5286ab9a6","block_type":"box","text":"thus the perceived reliability and creditworthiness, of many major financial institutions, some of which","page_number":126,"box":{"x":116,"y":583,"width":755,"height":12}},{"id":"96412cad-c214-4eed-8f6d-1badd3c89ede","block_type":"box","text":"sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":126,"box":{"x":116,"y":599,"width":763,"height":12}},{"id":"23c8df1e-a981-405a-9e96-b3335b325b9c","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":126,"box":{"x":117,"y":614,"width":633,"height":12}},{"id":"e0424afa-3d37-4a34-b525-31638e4dc719","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions,","page_number":126,"box":{"x":117,"y":645,"width":727,"height":12}},{"id":"71455ae5-d03e-459f-a216-f464f27cee47","block_type":"box","text":"reverse repurchase agreements and similar financing transactions (e.g., borrowed bonds)","page_number":126,"box":{"x":117,"y":661,"width":650,"height":12}},{"id":"e905b485-36fe-472f-ad82-6b20551e0019","block_type":"box","text":"notwithstanding the limitation","page_number":126,"box":{"x":117,"y":676,"width":209,"height":12}},{"id":"481982f9-fd35-4e28-9095-cdae0323538a","block_type":"box","text":"on the issuance of senior securities in Section 18 of the Investment","page_number":126,"box":{"x":332,"y":676,"width":487,"height":10}},{"id":"06483f4c-276c-4008-95fe-ffb3991e8f0e","block_type":"box","text":"Company Act, provided that the Fund either (i) comp","page_number":126,"box":{"x":117,"y":692,"width":381,"height":12}},{"id":"e9ec96d0-c893-4ef8-ad4f-2b9854c54597","block_type":"box","text":"lies with the 300% asset coverage ratio with respect","page_number":126,"box":{"x":499,"y":692,"width":377,"height":12}},{"id":"4da4472a-4280-494a-a5c4-83012aa1291f","block_type":"box","text":"to such transactions and any other borrowings in t","page_number":126,"box":{"x":116,"y":707,"width":363,"height":12}},{"id":"d94ddd39-fc29-4364-a301-2b01eeaed49d","block_type":"box","text":"he aggregate, or (ii) treats such transactions as","page_number":126,"box":{"x":480,"y":707,"width":342,"height":12}},{"id":"93289c23-3671-44ae-bcd8-f554bfa7225e","block_type":"box","text":"Derivatives Transactions under Rule 18f-4. See “—","page_number":126,"box":{"x":117,"y":723,"width":372,"height":9}},{"id":"bc2fbc12-8859-4ce1-bd5f-c7d02ec665e3","block_type":"box","text":"Derivatives—Regulation of Derivatives—Rule 18f-4","page_number":126,"box":{"x":489,"y":723,"width":372,"height":12}},{"id":"6ebca16f-b781-40e5-984d-5e9211a1a48e","block_type":"box","text":"under the Investment Company Act” above.","page_number":126,"box":{"x":117,"y":738,"width":316,"height":12}},{"id":"d4084753-7b94-49a6-b0d2-37ed28fa4ebb","block_type":"box","text":"Developments in the TOB Trust Market","page_number":126,"box":{"x":116,"y":769,"width":292,"height":12}},{"id":"6fe88253-6af3-4dbb-95d0-550d441a125b","block_type":"box","text":". In response to the restrictions imposed by section 619 of the","page_number":126,"box":{"x":409,"y":769,"width":457,"height":12}},{"id":"6dbf1669-5e54-4cba-90d9-25f1d2c24215","block_type":"box","text":"Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”), market participants","page_number":126,"box":{"x":117,"y":785,"width":761,"height":12}},{"id":"ec57d962-68d9-4a46-b64e-7a6587c3caee","block_type":"box","text":"have developed a structure for TOB Trusts designed to ensure that no banking entity is sponsoring the","page_number":126,"box":{"x":117,"y":800,"width":761,"height":12}},{"id":"63bc9393-a71a-47e0-9bf7-8205f9446402","block_type":"box","text":"TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will establish, structure and “sponsor”","page_number":126,"box":{"x":116,"y":816,"width":760,"height":12}},{"id":"882a7028-4ae8-4cdb-b939-d3aaac51c8c9","block_type":"box","text":"the TOB Trusts in which it holds TOB Residuals. In such a structure, certain responsibilities that","page_number":126,"box":{"x":116,"y":831,"width":715,"height":12}},{"id":"76869aa2-e882-4ee2-a198-79a4409f433b","block_type":"box","text":"previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund may","page_number":126,"box":{"x":117,"y":847,"width":740,"height":12}},{"id":"f9d0acc5-8bc5-43e1-88ce-23fd8ef83f55","block_type":"box","text":"utilize service providers in meeting these responsibilities. It is possible that regulators could take","page_number":126,"box":{"x":117,"y":862,"width":717,"height":12}},{"id":"9e76ccd5-b786-4705-b35f-49ff966b28c4","block_type":"box","text":"positions that could limit the market for such structured TOB Trust transactions or a Fund’s ability to","page_number":126,"box":{"x":117,"y":878,"width":744,"height":12}},{"id":"16398273-c2c7-4084-bccf-0d8433fc694b","block_type":"box","text":"II-76","page_number":126,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"370d3a6e-825a-4e87-b6ac-d256b9be01a8","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":126,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"9f642b95-069e-4434-9171-cdac82d465d6","block_type":"box","text":"hold TOB Residuals. Under this TOB Trust structure, a Fund has certain additional duties and","page_number":127,"box":{"x":117,"y":87,"width":699,"height":11}},{"id":"413f8761-981f-4ec4-ae9a-50506d3ac520","block_type":"box","text":"responsibilities, which may give rise to certain additional risks including","page_number":127,"box":{"x":117,"y":103,"width":525,"height":12}},{"id":"63228d8c-4d91-4d6b-be56-fef7771a9d57","block_type":"box","text":",","page_number":127,"box":{"x":643,"y":111,"width":3,"height":3}},{"id":"7cc6a76d-caaf-42a4-b23d-87624cc785b8","block_type":"box","text":"but not limited to, compliance,","page_number":127,"box":{"x":648,"y":103,"width":232,"height":11}},{"id":"e2e8283f-3bd7-4c7f-990b-bce88ac0baf7","block_type":"box","text":"securities law and operational risks.","page_number":127,"box":{"x":116,"y":118,"width":270,"height":12}},{"id":"6f07c8c4-15eb-462f-8fda-dab411d72f8b","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers,","page_number":127,"box":{"x":117,"y":149,"width":724,"height":12}},{"id":"49d2b9f7-ad4b-407a-87d0-2697cea13f91","block_type":"box","text":"trustees, and remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual","page_number":127,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"8ed722b2-f644-4060-9aca-2d3454640ea5","block_type":"box","text":"holder. Similar to the traditional tender option bond structure, a Fund deposits Municipal Bonds into the","page_number":127,"box":{"x":117,"y":180,"width":768,"height":12}},{"id":"dae49d66-ad33-4fce-ae6b-093faf4691c9","block_type":"box","text":"TOB Trust in exchange for TOB Residuals, the TOB Trust then issues and sells TOB Floaters to third","page_number":127,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"0b627792-16b3-4d24-bd29-381e407601f6","block_type":"box","text":"party investors, and the proceeds of the sale of the TOB Floaters is distributed to such TOB Residual","page_number":127,"box":{"x":117,"y":211,"width":754,"height":12}},{"id":"fa088a3e-c885-4eed-8ae7-3df86e3abd7c","block_type":"box","text":"holders (","page_number":127,"box":{"x":117,"y":227,"width":64,"height":12}},{"id":"41ad0c6d-4500-4268-a0e0-34f7fac885a5","block_type":"box","text":"i.e.","page_number":127,"box":{"x":182,"y":227,"width":20,"height":9}},{"id":"ca0ff0a2-0369-410f-8478-634201bea244","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be supported by a remarketing agent and","page_number":127,"box":{"x":205,"y":227,"width":671,"height":12}},{"id":"04d9a6e8-58d6-4d0a-adcf-39823e9cfaee","block_type":"box","text":"a liquidity facility. However, the remarketing agent does not purchase tendered TOB Floaters for its","page_number":127,"box":{"x":116,"y":242,"width":740,"height":12}},{"id":"97f77de6-1799-4520-898e-1e0d581dd1d9","block_type":"box","text":"own account in the event of a failed remarketing, which may increase the likelihood that a TOB Trust","page_number":127,"box":{"x":116,"y":258,"width":751,"height":12}},{"id":"a1379863-0766-43db-a27c-70a0372eefb9","block_type":"box","text":"will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of","page_number":127,"box":{"x":116,"y":273,"width":772,"height":12}},{"id":"884593eb-1569-4c48-8cae-23477b41abe6","block_type":"box","text":"a failed remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the","page_number":127,"box":{"x":116,"y":289,"width":745,"height":12}},{"id":"ec953f28-4271-4833-90bc-e8a58b5e3248","block_type":"box","text":"TOB Trust the proceeds of which would be used by the TOB Trust to purchase the tendered TOB","page_number":127,"box":{"x":116,"y":304,"width":728,"height":12}},{"id":"cf2ef8d9-682e-46f6-b1f0-3ef646a720d0","block_type":"box","text":"Floaters. The Liquidity Provider is not obligated to advance such a loan. The TOB Trust would be the","page_number":127,"box":{"x":117,"y":320,"width":753,"height":12}},{"id":"963d17db-8fb1-4d2f-88cc-706bba2581c6","block_type":"box","text":"borrower with respect to any such loan. Any loans made by a Liquidity Provider will be secured by the","page_number":127,"box":{"x":117,"y":335,"width":758,"height":12}},{"id":"05afb6e0-94c0-4680-a0b6-7e091f1acf25","block_type":"box","text":"purchased TOB Floaters held by the TOB Trust.","page_number":127,"box":{"x":117,"y":351,"width":361,"height":12}},{"id":"de2ce86c-2fd8-4b31-987a-5806aa957e86","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals","page_number":127,"box":{"x":116,"y":382,"width":769,"height":12}},{"id":"769f0f3c-e668-4e71-b598-0b320e87aeb5","block_type":"box","text":"or recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would","page_number":127,"box":{"x":116,"y":397,"width":735,"height":12}},{"id":"cbda7f01-852d-44ab-9cba-14019bb042d5","block_type":"box","text":"generally be no contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB","page_number":127,"box":{"x":116,"y":413,"width":718,"height":12}},{"id":"8d860d77-70eb-4794-aff9-68d35a1e1617","block_type":"box","text":"Residual. However, as described above, a Fund would bear the risk of loss with respect to any","page_number":127,"box":{"x":117,"y":428,"width":706,"height":12}},{"id":"2eb16045-3189-4e98-b767-807eac836fe7","block_type":"box","text":"Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":127,"box":{"x":117,"y":444,"width":421,"height":12}},{"id":"71598e0e-f7b3-4651-bded-88b38c3a5357","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for","page_number":127,"box":{"x":116,"y":475,"width":730,"height":12}},{"id":"85e53a6f-3287-46d2-86ab-680a4594910e","block_type":"box","text":"securitizations (the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention","page_number":127,"box":{"x":116,"y":490,"width":753,"height":12}},{"id":"5894c7f0-7230-465a-ad20-4a1977957dbe","block_type":"box","text":"Rules require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets","page_number":127,"box":{"x":117,"y":506,"width":771,"height":12}},{"id":"2ccdb1f2-8702-4ff6-9ca3-a21d32cec251","block_type":"box","text":"supporting the TOB Trust’s Municipal Bonds. The Risk Retention Rules may adversely affect the","page_number":127,"box":{"x":116,"y":521,"width":721,"height":12}},{"id":"e997450c-60d6-42d7-983b-c7fa2a3c9cf6","block_type":"box","text":"Fund’s ability to engage in TOB Trust transactions or increase the costs of such transactions in certain","page_number":127,"box":{"x":117,"y":537,"width":764,"height":12}},{"id":"79bb05ce-e723-4b93-94b2-5b07c6a1a76c","block_type":"box","text":"circumstances.","page_number":127,"box":{"x":116,"y":552,"width":117,"height":10}},{"id":"d18f8c6d-52fb-450a-926e-2a28ab8799b4","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":127,"box":{"x":116,"y":583,"width":763,"height":12}},{"id":"7cbcbee7-ddb2-46dc-bf63-84981b0b63a0","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through","page_number":127,"box":{"x":117,"y":599,"width":729,"height":12}},{"id":"176c50f3-f4f7-494f-aca1-9099d331b98d","block_type":"box","text":"reduced demand for and liquidity of municipal bonds and increased financing costs for municipal","page_number":127,"box":{"x":117,"y":614,"width":719,"height":12}},{"id":"4ac005b0-4fb8-442c-8c8d-84c6f78753fe","block_type":"box","text":"issuers. Any such developments could adversely affect the Funds. The ultimate impact of these rules","page_number":127,"box":{"x":117,"y":630,"width":754,"height":12}},{"id":"de9b1e0d-bd3a-4577-a3e2-87aa170624b7","block_type":"box","text":"on the TOB market and the overall municipal market is not yet certain.","page_number":127,"box":{"x":116,"y":645,"width":520,"height":12}},{"id":"9248b8a8-f085-4771-96dc-5acaaa76ca63","block_type":"box","text":"Yields.","page_number":127,"box":{"x":118,"y":676,"width":47,"height":10}},{"id":"db92af59-075a-43e8-86db-f90497f4c3b3","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general","page_number":127,"box":{"x":171,"y":676,"width":639,"height":12}},{"id":"1f6101c3-4349-41c2-9a44-942aaf49ff3d","block_type":"box","text":"condition of the money market and of the municipal bond market, the size of a particular offering, the","page_number":127,"box":{"x":116,"y":692,"width":746,"height":12}},{"id":"bbd6c5b5-6357-4dcd-8922-f595d360d616","block_type":"box","text":"financial condition of the issuer, the maturity of the obligation and the rating of the issue. The ability of","page_number":127,"box":{"x":116,"y":707,"width":754,"height":12}},{"id":"a572c058-41a2-4c86-8f35-9bd0e6652bb1","block_type":"box","text":"a Fund to achieve its investment objective is also dependent on the continuing ability of the issuers of","page_number":127,"box":{"x":116,"y":723,"width":753,"height":12}},{"id":"8dffee16-70e1-41d2-bfeb-4bffb8b71b54","block_type":"box","text":"the securities in which the Fund invests to meet their obligations for the payment of interest and","page_number":127,"box":{"x":116,"y":738,"width":708,"height":12}},{"id":"e2adac4d-8579-43ab-a6fa-43630bfe2326","block_type":"box","text":"principal when due. There are variations in the risks involved in holding Municipal Bonds, both within a","page_number":127,"box":{"x":117,"y":754,"width":757,"height":12}},{"id":"648e9f90-f3bc-4336-804d-bfc5010ce61f","block_type":"box","text":"particular classification and between classifications, depending on numerous factors. Furthermore, the","page_number":127,"box":{"x":117,"y":769,"width":758,"height":12}},{"id":"b8b1392e-516f-4e32-a865-3d817170afd1","block_type":"box","text":"rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal Bonds may be","page_number":127,"box":{"x":117,"y":785,"width":753,"height":12}},{"id":"ec883684-b071-4982-8b2f-db97b2c33bb1","block_type":"box","text":"subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights of","page_number":127,"box":{"x":116,"y":800,"width":763,"height":12}},{"id":"594b54d8-a146-466e-a1f5-97f79b88fe18","block_type":"box","text":"creditors generally and to general equitable principles, which may limit the enforcement of certain","page_number":127,"box":{"x":116,"y":816,"width":721,"height":12}},{"id":"f44657fd-46ff-4090-ab94-487299b51694","block_type":"box","text":"remedies.","page_number":127,"box":{"x":117,"y":831,"width":77,"height":10}},{"id":"96eefbca-2ba7-4b2f-afc2-943c96b76108","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":127,"box":{"x":118,"y":862,"width":344,"height":12}},{"id":"4caa84aa-3d8e-4ad6-b7fa-db21c9b3b0da","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a","page_number":127,"box":{"x":464,"y":862,"width":374,"height":12}},{"id":"09b1868d-3a7b-43d1-b3d3-f50a46b40542","block_type":"box","text":"floating or variable interest rate adjustment formula and a right of demand on the part of the holder","page_number":127,"box":{"x":116,"y":878,"width":736,"height":12}},{"id":"f433a5a8-fade-4ce4-bd35-03f9b9f2e7cf","block_type":"box","text":"II-77","page_number":127,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"68190c8a-f589-4eb1-9963-65bd07886c82","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":127,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"56358182-f833-490d-9b0f-923ebec46d51","block_type":"box","text":"thereof to receive payment of the unpaid principal balance plus accrued interest upon a short notice","page_number":128,"box":{"x":116,"y":87,"width":745,"height":12}},{"id":"9b1076f0-f649-4dfd-959e-606521f294ee","block_type":"box","text":"period not to exceed seven days.","page_number":128,"box":{"x":117,"y":103,"width":250,"height":12}},{"id":"e765ebef-fcfc-43b5-afc7-a2a700381fcf","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be","page_number":128,"box":{"x":116,"y":134,"width":768,"height":12}},{"id":"472ac567-dc22-49e6-b057-a17d5b32a565","block_type":"box","text":"honored. The interest rates are adjustable at periodic intervals to some prevailing market rate for","page_number":128,"box":{"x":117,"y":149,"width":721,"height":12}},{"id":"bac55b62-d571-43ed-8011-c59c261ca7c6","block_type":"box","text":"similar investments, such adjustment formula being calculated to maintain the market rate of the","page_number":128,"box":{"x":116,"y":165,"width":718,"height":12}},{"id":"20242d29-21b7-445f-be95-1e60f0b5ddaf","block_type":"box","text":"VRDOs at approximately the par value of the VRDOs on the adjustment date. The adjustments","page_number":128,"box":{"x":116,"y":180,"width":710,"height":12}},{"id":"11d6fd60-95d4-4aaa-bdba-effb5c31dd37","block_type":"box","text":"typically are based upon the Securities Industry and Financial Markets Association (“SIFMA”) Index.","page_number":128,"box":{"x":116,"y":196,"width":746,"height":12}},{"id":"ecbbd9e9-a9a6-4c7c-9d52-cb183d77dcf7","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate","page_number":128,"box":{"x":117,"y":227,"width":751,"height":12}},{"id":"657ce792-003a-48c5-9c8e-c9e270e4b5f8","block_type":"box","text":"securities. During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its","page_number":128,"box":{"x":116,"y":242,"width":746,"height":12}},{"id":"5513c02f-bffe-4565-9a06-c486bf6baea1","block_type":"box","text":"shareholders will forego the opportunity for capital appreciation. During periods of rising interest rates,","page_number":128,"box":{"x":116,"y":258,"width":761,"height":12}},{"id":"18571aa2-aff9-48bb-bdee-822db1c1c1f9","block_type":"box","text":"however, a Fund’s yield on a VRDO will increase and the Fund’s shareholders will have a reduced risk","page_number":128,"box":{"x":117,"y":273,"width":764,"height":12}},{"id":"0a0a96c9-22e8-45f1-9cb1-26b61c438fca","block_type":"box","text":"of capital depreciation.","page_number":128,"box":{"x":116,"y":289,"width":173,"height":12}},{"id":"199128d4-a9e4-4e99-a206-8ec275444fc8","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":128,"box":{"x":118,"y":320,"width":488,"height":12}},{"id":"cd40c184-b511-46ea-812b-b06e27490c3b","block_type":"box","text":"The Municipal Funds and certain","page_number":128,"box":{"x":608,"y":320,"width":253,"height":12}},{"id":"23643e43-722a-49eb-9eb9-00a6449f7725","block_type":"box","text":"other funds deal in financial futures contracts based on a long-term municipal bond index developed by","page_number":128,"box":{"x":116,"y":335,"width":770,"height":12}},{"id":"605c6c63-91d8-449c-b66e-6f72cfb9b414","block_type":"box","text":"the Chicago Board of Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal","page_number":128,"box":{"x":116,"y":351,"width":761,"height":12}},{"id":"d2ab2c1c-8e98-4be5-a2c1-ae345c591db2","block_type":"box","text":"Bond Index is comprised of 40 long-term, actively traded tax-exempt municipal revenue and general","page_number":128,"box":{"x":117,"y":366,"width":746,"height":12}},{"id":"2f669673-addd-47d5-aac7-d6e0f09f3a5b","block_type":"box","text":"obligation bonds. Each bond included in the Municipal Bond Index must be rated A or higher by","page_number":128,"box":{"x":116,"y":382,"width":712,"height":12}},{"id":"88275d34-f308-459e-bb68-738dd2bef2c8","block_type":"box","text":"Moody’s or S&P and must have a remaining maturity of 19 years or more. Twice a month new issues","page_number":128,"box":{"x":117,"y":397,"width":754,"height":12}},{"id":"f4da7a28-010a-4fea-b67a-634c159c68e3","block_type":"box","text":"satisfying the eligibility requirements are added to, and an equal number of old issues are deleted from,","page_number":128,"box":{"x":116,"y":413,"width":771,"height":12}},{"id":"754dac60-5fb9-40aa-98d1-87294eedad7e","block_type":"box","text":"the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":128,"box":{"x":116,"y":428,"width":734,"height":12}},{"id":"cf9e5b57-30f9-47ff-8c47-5dd55c83835d","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six","page_number":128,"box":{"x":116,"y":444,"width":670,"height":12}},{"id":"5c5e16cb-e79f-41f0-8752-20c9d04c46b5","block_type":"box","text":"dealer-to-dealer brokers.","page_number":128,"box":{"x":116,"y":459,"width":189,"height":10}},{"id":"be01be86-7cd3-46de-873f-662af2f9e501","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the","page_number":128,"box":{"x":116,"y":490,"width":760,"height":12}},{"id":"6b6f5942-6783-43d5-ac36-34d0640abac5","block_type":"box","text":"CBT assures performance under futures contracts through a clearing corporation, a nonprofit","page_number":128,"box":{"x":117,"y":506,"width":694,"height":12}},{"id":"b09da805-1cc5-4438-a647-1aed558bd042","block_type":"box","text":"organization managed by the exchange membership that is also responsible for handling daily","page_number":128,"box":{"x":116,"y":521,"width":704,"height":12}},{"id":"84eced4c-b49b-498f-ab1e-54e4bd407ebe","block_type":"box","text":"accounting of deposits or withdrawals of margin.","page_number":128,"box":{"x":116,"y":537,"width":364,"height":12}},{"id":"98bf9a84-0266-4666-855e-e05f735bcadb","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial","page_number":128,"box":{"x":116,"y":568,"width":735,"height":12}},{"id":"a5522441-5c18-4b0d-a4f8-7b69d11173a1","block_type":"box","text":"futures contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s","page_number":128,"box":{"x":116,"y":583,"width":741,"height":12}},{"id":"eeadb765-f1c2-4601-aa54-1fe9af9f840a","block_type":"box","text":"ability to hedge effectively all or a portion of the value of its Municipal Bonds through the use of such","page_number":128,"box":{"x":116,"y":599,"width":749,"height":12}},{"id":"13a0a750-1f3c-4e27-80e2-c1c184b0e4dc","block_type":"box","text":"financial futures contracts will depend in part on the degree to which price movements in the index","page_number":128,"box":{"x":116,"y":614,"width":734,"height":12}},{"id":"6ec7843b-7dc1-49de-be7a-74a621123f19","block_type":"box","text":"underlying the financial futures contract correlate with the price movements of the Municipal Bonds","page_number":128,"box":{"x":117,"y":630,"width":737,"height":12}},{"id":"69e61e3f-43fa-41d7-a7ef-d308f453b8dc","block_type":"box","text":"held by the Fund. The correlation may be affected by disparities in the average maturity, ratings,","page_number":128,"box":{"x":117,"y":645,"width":718,"height":12}},{"id":"dbfd6e14-432b-4e6c-abb7-80d895630553","block_type":"box","text":"geographical mix or structure of a Municipal Fund’s investments as compared to those comprising the","page_number":128,"box":{"x":116,"y":661,"width":755,"height":12}},{"id":"6e0b0458-fd6d-4faa-a9c9-bd69c16c500c","block_type":"box","text":"Municipal Bond Index and general economic or political factors. In addition, the correlation between","page_number":128,"box":{"x":117,"y":676,"width":736,"height":12}},{"id":"740b0a24-9d16-4b38-8d58-0c99377c5947","block_type":"box","text":"movements in the value of the Municipal Bond Index may be subject to change over time as additions","page_number":128,"box":{"x":117,"y":692,"width":753,"height":12}},{"id":"0bbc3788-96de-493d-bf96-1dda0ad6113a","block_type":"box","text":"to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":128,"box":{"x":116,"y":707,"width":725,"height":12}},{"id":"76dcfb38-738f-46ce-9b14-65fbda641467","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be","page_number":128,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"e7065a4d-a06e-4a06-be2e-65055ac2d6ae","block_type":"box","text":"adversely affected by similar factors and the risk of imperfect correlation between movements in the","page_number":128,"box":{"x":116,"y":738,"width":740,"height":12}},{"id":"55d7defb-b1eb-434f-a6fe-17956a7a80c0","block_type":"box","text":"prices of such futures contracts and the prices of Municipal Bonds held by a Municipal Fund may be","page_number":128,"box":{"x":117,"y":754,"width":740,"height":12}},{"id":"03204e13-c88e-4416-9cb0-d125d1208938","block_type":"box","text":"greater. Municipal Bond Index futures contracts were approved for trading in 1985. Trading in such","page_number":128,"box":{"x":116,"y":769,"width":732,"height":12}},{"id":"5da84d13-2f8c-4650-ad14-8af7a959ba7a","block_type":"box","text":"futures contracts may tend to be less liquid than trading in other futures contracts. The trading of","page_number":128,"box":{"x":116,"y":785,"width":716,"height":12}},{"id":"b5cb1aec-23f7-408a-8af8-144017776a7a","block_type":"box","text":"futures contracts also is subject to certain market risks, such as inadequate trading activity, which","page_number":128,"box":{"x":116,"y":800,"width":723,"height":12}},{"id":"c89b44f8-63e2-4af4-92f5-6f9206c905ff","block_type":"box","text":"could at times make it difficult or impossible to liquidate existing positions.","page_number":128,"box":{"x":116,"y":816,"width":545,"height":12}},{"id":"1c8716f1-48ad-4541-ac7e-4de340a2ccb0","block_type":"box","text":"Call Rights.","page_number":128,"box":{"x":117,"y":847,"width":83,"height":12}},{"id":"57a6e579-f387-4cf4-9652-f40228898b9e","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such","page_number":128,"box":{"x":202,"y":847,"width":626,"height":12}},{"id":"3ad6f53e-3dc7-44e8-b9b8-8a4b95bb193a","block_type":"box","text":"Municipal Bond for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may","page_number":128,"box":{"x":117,"y":862,"width":711,"height":12}},{"id":"788bfa9e-faf4-4f30-9e68-1e9aca2e4a6f","block_type":"box","text":"exercise such right to require a mandatory tender for the purchase of related Municipal Bonds, subject","page_number":128,"box":{"x":116,"y":878,"width":763,"height":12}},{"id":"8dbfefa6-a9ee-44dc-8c34-72297aac4131","block_type":"box","text":"II-78","page_number":128,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"78d26474-5d9c-4a6f-9acd-6e1886523125","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":128,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"25602da0-ba78-458e-829a-a69e29e47798","block_type":"box","text":"to certain conditions. A Call Right that is not exercised prior to maturity of the related Municipal Bond","page_number":129,"box":{"x":116,"y":87,"width":751,"height":12}},{"id":"88902404-a9be-4349-b3aa-8fbe63722e7c","block_type":"box","text":"will expire without value. The economic effect of holding both the Call Right and the related Municipal","page_number":129,"box":{"x":116,"y":102,"width":756,"height":13}},{"id":"d4d8d2d8-9f48-491b-8d4b-a318f6fba8b1","block_type":"box","text":"Bond is identical to holding a Municipal Bond as a non-callable security. Certain investments in such","page_number":129,"box":{"x":117,"y":118,"width":748,"height":12}},{"id":"d58c6998-4277-44bb-aa52-c802626581eb","block_type":"box","text":"obligations may be illiquid.","page_number":129,"box":{"x":116,"y":134,"width":201,"height":12}},{"id":"12e61b8b-c3f7-4732-9a11-13d198495338","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":129,"box":{"x":116,"y":165,"width":323,"height":11}},{"id":"a204701b-2b9d-49f2-8f02-288a177970fd","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":129,"box":{"x":440,"y":165,"width":439,"height":12}},{"id":"415d75e8-f101-4c03-b22b-5230eff142e7","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such","page_number":129,"box":{"x":116,"y":180,"width":772,"height":12}},{"id":"7e86c481-45d9-46e7-9025-f9bdcb05fd6c","block_type":"box","text":"as Municipal Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial","page_number":129,"box":{"x":116,"y":196,"width":769,"height":12}},{"id":"971af2eb-49f6-4c91-aa96-81997c469854","block_type":"box","text":"Markets Association Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters","page_number":129,"box":{"x":117,"y":211,"width":758,"height":12}},{"id":"9c233201-14fc-496a-8698-814b1c727d2a","block_type":"box","text":"into these transactions, the Fund expects to do so primarily to preserve a return or spread on a","page_number":129,"box":{"x":117,"y":227,"width":708,"height":12}},{"id":"156c7ff4-25ed-4e5a-877d-235a506b6a70","block_type":"box","text":"particular investment or portion of its portfolio or to protect against any increase in the price of","page_number":129,"box":{"x":117,"y":242,"width":699,"height":12}},{"id":"8125f17f-cc86-452d-8685-dbf9e34d644c","block_type":"box","text":"securities the Fund anticipates purchasing at a later date. A Fund intends to use these transactions","page_number":129,"box":{"x":116,"y":258,"width":741,"height":12}},{"id":"7b6a7fee-5839-475d-b3fc-f6a109f23063","block_type":"box","text":"primarily as a hedge rather than as a speculative investment. However, a Fund also may invest in","page_number":129,"box":{"x":117,"y":273,"width":729,"height":12}},{"id":"9865a53f-8b30-4a08-904a-d3d5a715735f","block_type":"box","text":"MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for","page_number":129,"box":{"x":117,"y":289,"width":704,"height":12}},{"id":"9eb206dd-7ae3-4416-ba99-5c7ed1843d76","block_type":"box","text":"example, during periods of steep interest rate yield curves (","page_number":129,"box":{"x":116,"y":304,"width":441,"height":12}},{"id":"54cec02f-cf35-4b30-98e9-0fb566fb5130","block_type":"box","text":"i.e.","page_number":129,"box":{"x":558,"y":304,"width":20,"height":10}},{"id":"7810d11e-20d4-415b-b199-c5a41ac1cb88","block_type":"box","text":", wide differences between short-term","page_number":129,"box":{"x":581,"y":304,"width":284,"height":11}},{"id":"131b8123-54de-4d92-9d4f-498e6398d641","block_type":"box","text":"and long-term interest rates).","page_number":129,"box":{"x":116,"y":320,"width":221,"height":12}},{"id":"36f449b2-70df-4f99-8432-a7ea9834fda0","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund","page_number":129,"box":{"x":116,"y":351,"width":747,"height":12}},{"id":"e14ec180-9a52-49cd-a699-6d9fe44a6e77","block_type":"box","text":"exchanges with another party their respective commitments to pay or receive interest (","page_number":129,"box":{"x":116,"y":366,"width":642,"height":12}},{"id":"e82e706e-e464-4d0d-a820-d8a9b51cc6d7","block_type":"box","text":"e.g.","page_number":129,"box":{"x":760,"y":369,"width":25,"height":9}},{"id":"a795c691-99fa-4662-b7e9-2843e085f956","block_type":"box","text":", an","page_number":129,"box":{"x":788,"y":369,"width":32,"height":8}},{"id":"eabb55cb-b4a6-4985-a9ee-1afcd89eec6a","block_type":"box","text":"exchange of fixed rate payments for floating rate payments linked to the SIFMA Municipal Swap","page_number":129,"box":{"x":116,"y":382,"width":717,"height":12}},{"id":"9930264e-a445-4932-abe6-5c8d97846092","block_type":"box","text":"Index). Because the underlying index is a tax-exempt index, SIFMA Swaps may reduce cross-market","page_number":129,"box":{"x":117,"y":397,"width":755,"height":12}},{"id":"31f6f25c-cf76-43ac-8280-177e160c7cf1","block_type":"box","text":"risks incurred by a Fund and increase a Fund’s ability to hedge effectively. SIFMA Swaps are typically","page_number":129,"box":{"x":117,"y":413,"width":760,"height":12}},{"id":"d556d1b0-53fc-4e5e-b513-2072eb475965","block_type":"box","text":"quoted for the entire yield curve, beginning with a seven day floating rate index out to 30 years. The","page_number":129,"box":{"x":116,"y":428,"width":745,"height":12}},{"id":"eacae592-f50b-4956-80b5-5f6539fec5ff","block_type":"box","text":"duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond with","page_number":129,"box":{"x":116,"y":444,"width":747,"height":12}},{"id":"fe9caf67-fd5d-4b87-90f3-b004541bcc5c","block_type":"box","text":"the same attributes as the swap (","page_number":129,"box":{"x":116,"y":459,"width":247,"height":12}},{"id":"9c9f6dd1-9587-4856-a005-04d0368ddfd6","block_type":"box","text":"e.g.","page_number":129,"box":{"x":365,"y":462,"width":25,"height":9}},{"id":"014f090d-59cc-4e00-a0e3-e49ea461ac51","block_type":"box","text":", coupon, maturity, call feature).","page_number":129,"box":{"x":393,"y":459,"width":240,"height":12}},{"id":"823a486c-97fa-43a7-9dc8-f53cab9b6614","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap","page_number":129,"box":{"x":116,"y":490,"width":727,"height":12}},{"id":"490ef350-1184-4e85-83c9-64b991a0d5d3","block_type":"box","text":"permits a Fund to lock in a specified municipal interest rate for a portion of its portfolio to preserve a","page_number":129,"box":{"x":117,"y":506,"width":744,"height":12}},{"id":"fded85c2-1011-4c57-8c99-5f3c241c2ebf","block_type":"box","text":"return on a particular investment or a portion of its portfolio as a duration management technique or to","page_number":129,"box":{"x":117,"y":521,"width":761,"height":12}},{"id":"2042c962-8b0b-439b-bf46-eef892428b32","block_type":"box","text":"protect against any increase in the price of securities to be purchased at a later date. By using an MMD","page_number":129,"box":{"x":117,"y":537,"width":771,"height":12}},{"id":"482a2ad8-e04a-40b7-9012-ac06c5304b09","block_type":"box","text":"Swap, a Fund can create a synthetic long or short position, allowing the Fund to select the most","page_number":129,"box":{"x":116,"y":552,"width":715,"height":12}},{"id":"5b1cad12-fe4f-4822-b433-1984596a5d1f","block_type":"box","text":"attractive part of the yield curve. An MMD Swap is a contract between a Fund and an MMD Swap","page_number":129,"box":{"x":116,"y":568,"width":729,"height":12}},{"id":"c851b512-eea8-4bc7-92cf-2c22bed26f4a","block_type":"box","text":"provider pursuant to which the parties agree to make payments to each other on a notional amount,","page_number":129,"box":{"x":117,"y":583,"width":744,"height":12}},{"id":"a4ced98f-fc3e-42c5-9148-a11adaf49684","block_type":"box","text":"contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or below a","page_number":129,"box":{"x":116,"y":599,"width":769,"height":12}},{"id":"0eaa4bac-4d0c-4564-b14e-528b3e255c06","block_type":"box","text":"specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and","page_number":129,"box":{"x":116,"y":614,"width":754,"height":12}},{"id":"1328d418-8f8e-4c1d-9c9d-74cbf5b26e3e","block_type":"box","text":"the Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration","page_number":129,"box":{"x":116,"y":630,"width":763,"height":12}},{"id":"df343d19-024f-4d88-9e46-dad83d2ed41b","block_type":"box","text":"date, the counterparty to the contract will make a payment to the Fund equal to the specified level","page_number":129,"box":{"x":116,"y":645,"width":730,"height":12}},{"id":"767d7a67-d172-4385-9317-3c74c89351c7","block_type":"box","text":"minus the actual level, multiplied by the notional amount of the contract. If the Municipal Market Data","page_number":129,"box":{"x":117,"y":661,"width":746,"height":12}},{"id":"a6ca69f5-99a0-4d5b-b651-9063ffe9979f","block_type":"box","text":"AAA General Obligation Scale is above the specified level on the expiration date, a Fund will make a","page_number":129,"box":{"x":116,"y":676,"width":746,"height":12}},{"id":"e7be1f4b-a28c-40ae-a19d-0abc6780f9c2","block_type":"box","text":"payment to the counterparty equal to the actual level minus the specified level, multiplied by the","page_number":129,"box":{"x":117,"y":692,"width":708,"height":12}},{"id":"d4d22a84-8432-49fc-9185-7fbf5b6d7bc7","block_type":"box","text":"notional amount of the contract.","page_number":129,"box":{"x":117,"y":707,"width":233,"height":10}},{"id":"a92e935e-466f-494c-bcc8-29b94d26dbcd","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps,","page_number":129,"box":{"x":117,"y":738,"width":438,"height":12}},{"id":"478cd3b3-1e76-407b-8af5-095b7dc4a0f3","block_type":"box","text":"there is a risk that municipal yields will","page_number":129,"box":{"x":561,"y":738,"width":283,"height":12}},{"id":"2a76fbf3-40ad-46c5-a9cf-24082a3cdcae","block_type":"box","text":"move in the opposite direction than anticipated by a Fund, which would cause the Fund to make","page_number":129,"box":{"x":117,"y":754,"width":711,"height":12}},{"id":"2f00dacf-a2f7-4d9d-9452-57ff7ba8f301","block_type":"box","text":"payments to its counterparty in the transaction that could adversely affect the Fund’s performance.","page_number":129,"box":{"x":117,"y":769,"width":729,"height":12}},{"id":"7b199590-7a40-43cd-8028-21cf2ddf6313","block_type":"box","text":"Insured Municipal Bonds.","page_number":129,"box":{"x":117,"y":800,"width":186,"height":12}},{"id":"a03467c6-1d9f-4797-bd07-2bbaaf485156","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees","page_number":129,"box":{"x":310,"y":800,"width":555,"height":12}},{"id":"02099f81-e62a-4712-bc85-438765c0be1f","block_type":"box","text":"that interest payments on the bond will be made on time and the principal will be repaid when the bond","page_number":129,"box":{"x":116,"y":816,"width":762,"height":12}},{"id":"5fde4289-63f4-4f55-9fdf-3e1a5cd1598b","block_type":"box","text":"matures. Either the issuer of the bond or the Fund purchases the insurance. Insurance is expected to","page_number":129,"box":{"x":117,"y":831,"width":755,"height":12}},{"id":"b8f3ac08-b518-4da9-b57f-5fab56b4cb5d","block_type":"box","text":"protect the Fund against losses caused by a bond issuer’s failure to make interest or principal","page_number":129,"box":{"x":117,"y":847,"width":699,"height":12}},{"id":"f227f429-89fd-4e5f-8d4f-9cc3ebbc745c","block_type":"box","text":"payments. However, insurance does not protect the Fund or its shareholders against losses caused by","page_number":129,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"af4e1d79-afc9-458c-95ac-6fb49e836ccc","block_type":"box","text":"declines in a bond’s market value. Also, the Fund cannot be certain that any insurance company does","page_number":129,"box":{"x":116,"y":878,"width":761,"height":12}},{"id":"930f17eb-6ad2-497c-83af-4ad788f6cf3f","block_type":"box","text":"II-79","page_number":129,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"278093e8-2f72-4eeb-85d0-7dfff1f3fc61","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":129,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"98b4d630-1618-4629-83a8-b72966b84740","block_type":"box","text":"not make these payments. In addition, if the Fund purchases the insurance, it may pay the premiums,","page_number":130,"box":{"x":117,"y":87,"width":758,"height":12}},{"id":"e470c8b0-25ec-4f3f-9f3a-854baba183b7","block_type":"box","text":"which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims","page_number":130,"box":{"x":116,"y":103,"width":721,"height":12}},{"id":"7bd5205f-fc90-45e7-ba78-d045f2c0c63d","block_type":"box","text":"paying ability, financial strength, or equivalent ratings of at least investment grade. However, if","page_number":130,"box":{"x":117,"y":118,"width":703,"height":12}},{"id":"ab369610-25ac-45aa-8965-b05d9791c351","block_type":"box","text":"insurance from insurers with these ratings is not available, the Fund may use insurance companies","page_number":130,"box":{"x":117,"y":134,"width":739,"height":12}},{"id":"4025d683-5581-4f34-b2bf-bb2c7354a0c1","block_type":"box","text":"with lower ratings or stop purchasing insurance or insured bonds. If a bond’s insurer fails to fulfill its","page_number":130,"box":{"x":116,"y":149,"width":742,"height":12}},{"id":"3df5e0aa-6e0b-4265-8eee-9f5365bd4412","block_type":"box","text":"obligations or loses its credit rating, the value of the bond could drop.","page_number":130,"box":{"x":116,"y":165,"width":517,"height":12}},{"id":"e579cd45-b337-4524-8ff8-7e7de92baa30","block_type":"box","text":"Build America Bonds.","page_number":130,"box":{"x":116,"y":196,"width":159,"height":9}},{"id":"609361da-c25c-4b7c-ab21-63ad7d8527b7","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S.","page_number":130,"box":{"x":276,"y":196,"width":604,"height":12}},{"id":"faca5c30-dd44-47aa-9f9b-c20363f40f41","block_type":"box","text":"federal income tax credit; however, the issuer of a Build America Bond may instead elect to receive a","page_number":130,"box":{"x":116,"y":211,"width":756,"height":12}},{"id":"f5f039a0-ac10-4cfd-a7da-b022dea15875","block_type":"box","text":"cash payment directly from the federal government in lieu of holders such as the fund receiving a tax","page_number":130,"box":{"x":116,"y":227,"width":752,"height":12}},{"id":"c6465bca-8d3c-4376-a99b-426442c8a597","block_type":"box","text":"credit. The interest on Build America Bonds is taxable for U.S. federal income tax purposes. If the Fund","page_number":130,"box":{"x":116,"y":242,"width":772,"height":12}},{"id":"b1f27c66-307b-4209-9435-76a82ec052a3","block_type":"box","text":"does receive tax credits from Build America Bonds or other tax credit bonds on one or more specified","page_number":130,"box":{"x":116,"y":258,"width":757,"height":11}},{"id":"fc561bb2-089c-48cc-82af-0e606cabd445","block_type":"box","text":"dates during the fund’s taxable year, and the Fund satisfies the minimum distribution requirement, the","page_number":130,"box":{"x":116,"y":273,"width":760,"height":12}},{"id":"e5894981-59dc-4eff-a35d-9b5f801f1ed6","block_type":"box","text":"Fund may elect for U.S. federal income tax purposes to pass through to shareholders tax credits","page_number":130,"box":{"x":117,"y":289,"width":719,"height":12}},{"id":"dc237ce0-be75-4856-a61d-642a22b3342c","block_type":"box","text":"otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond is defined in","page_number":130,"box":{"x":116,"y":304,"width":770,"height":12}},{"id":"3937c9cd-a255-40de-abfb-5c6ae25d0bf6","block_type":"box","text":"the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":130,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"2beac965-54d0-4a58-ad34-268b9eb42f9f","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy","page_number":130,"box":{"x":116,"y":335,"width":729,"height":12}},{"id":"2f21085f-f45f-46bd-9ef9-874e6a95b800","block_type":"box","text":"bond, each of which must meet certain requirements specified in the Code), a “Build America Bond”","page_number":130,"box":{"x":117,"y":351,"width":744,"height":12}},{"id":"35e0bc95-b3c9-4339-82c3-073a113f956c","block_type":"box","text":"(which includes certain qualified bonds issued before January 1, 2011) or certain other specified","page_number":130,"box":{"x":117,"y":366,"width":717,"height":12}},{"id":"6a589674-2ba7-4861-aaf7-f7800e9d9a69","block_type":"box","text":"bonds. If the Fund were to so elect, a shareholder would be required to include in income and would be","page_number":130,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"68a25660-e5ad-4921-89b5-0bb59b8b8b37","block_type":"box","text":"entitled to claim as a tax credit an amount equal to a proportionate share of such credits, and such","page_number":130,"box":{"x":116,"y":397,"width":735,"height":12}},{"id":"d93fe9ee-4b65-40ab-aa79-b133168417a1","block_type":"box","text":"amount would be subject to withholding provisions of the Code. Certain limitations may apply on the","page_number":130,"box":{"x":116,"y":413,"width":746,"height":12}},{"id":"f6e82297-834a-436c-9e1f-f33f1dcee646","block_type":"box","text":"extent to which the credit may be claimed.","page_number":130,"box":{"x":116,"y":428,"width":318,"height":12}},{"id":"78b0178c-7558-4f66-892b-80962caed2be","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":130,"box":{"x":118,"y":459,"width":263,"height":12}},{"id":"2a117b29-0663-43cf-92aa-7f0478610649","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which","page_number":130,"box":{"x":382,"y":459,"width":494,"height":12}},{"id":"1d21341e-21f8-44e1-b1c4-5f9590c3aec6","block_type":"box","text":"may be in the form of tender option bonds, variable rate demand obligations, participations, beneficial","page_number":130,"box":{"x":117,"y":475,"width":757,"height":12}},{"id":"5c7bacb0-b170-4d54-a45d-bf4e9c405984","block_type":"box","text":"interests in a trust, partnership interests or other forms. These investments are described in greater","page_number":130,"box":{"x":117,"y":490,"width":741,"height":12}},{"id":"9a06c291-ce6f-47f1-af73-22d1b35711ae","block_type":"box","text":"detail above in this section. Some of the structures used by certain Funds include interests in long-term","page_number":130,"box":{"x":116,"y":506,"width":771,"height":12}},{"id":"7afca94b-cc13-498a-9a11-17bc9a3fa289","block_type":"box","text":"fixed-rate municipal debt obligations, held by a trustee or custodian, that are coupled with tender","page_number":130,"box":{"x":116,"y":521,"width":720,"height":12}},{"id":"10d9f8a1-b477-4077-86c0-b05d71e424c9","block_type":"box","text":"option, demand and other features when the tax-exempt municipal investments are created. Together,","page_number":130,"box":{"x":116,"y":537,"width":764,"height":12}},{"id":"866df987-f8ce-4c88-b3dc-d5217bdea917","block_type":"box","text":"these features entitle the holder of the interest to tender (or put) the underlying municipal debt","page_number":130,"box":{"x":116,"y":552,"width":701,"height":12}},{"id":"a428375a-7c5a-402c-98b0-c20605fe7d6a","block_type":"box","text":"obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":130,"box":{"x":116,"y":568,"width":667,"height":12}},{"id":"af739087-f7b9-4a3b-a593-49f55a2c3042","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to","page_number":130,"box":{"x":117,"y":599,"width":745,"height":12}},{"id":"4a680fff-96d9-4d80-87af-04ed44fd764c","block_type":"box","text":"receive specific future interest payments, principal payments, or both, on the underlying securities held","page_number":130,"box":{"x":117,"y":614,"width":766,"height":12}},{"id":"d59b22ee-388e-44b2-a2d0-60a6dc2b0c09","block_type":"box","text":"by the custodian. Under such arrangements, the holder of the custodial receipt has the option to tender","page_number":130,"box":{"x":117,"y":630,"width":769,"height":12}},{"id":"b8038b00-e320-4116-ab40-11c2eff6c94a","block_type":"box","text":"the underlying securities at their face value to the sponsor (","page_number":130,"box":{"x":116,"y":645,"width":440,"height":12}},{"id":"6119fd0d-3589-4323-bb56-e9c241c9e55b","block_type":"box","text":"e.g.","page_number":130,"box":{"x":557,"y":648,"width":26,"height":9}},{"id":"bc0aee19-716d-4618-881d-39acf458ecfa","block_type":"box","text":", a Fund, or a bank or broker-dealer or","page_number":130,"box":{"x":586,"y":645,"width":289,"height":11}},{"id":"99bb8633-23c4-4963-b6b3-b4dd0ef1f7f6","block_type":"box","text":"other financial institution), which is paid periodic fees equal to the difference between the securities’","page_number":130,"box":{"x":116,"y":661,"width":738,"height":12}},{"id":"73acc737-90ee-4a8e-be19-3def289f3f18","block_type":"box","text":"fixed coupon rate and the rate that would cause the securities, coupled with the tender option, to trade","page_number":130,"box":{"x":116,"y":676,"width":758,"height":12}},{"id":"ab7a8a66-677a-4879-8462-1e53c00eec64","block_type":"box","text":"at par on the date of a rate adjustment.","page_number":130,"box":{"x":116,"y":692,"width":289,"height":12}},{"id":"2e1ea4b1-0ae9-4617-ae89-981cd3ed052d","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the","page_number":130,"box":{"x":116,"y":723,"width":747,"height":12}},{"id":"3ade72bc-cd90-4eb0-ac0c-da69ed720823","block_type":"box","text":"Fund’s participation bears to the total principal amount of the Municipal Bond, and typically provides for","page_number":130,"box":{"x":117,"y":738,"width":764,"height":12}},{"id":"8638ce48-f438-4518-9048-57c71fead118","block_type":"box","text":"a repurchase feature for all or any part of the full principal amount of the participation interest, plus","page_number":130,"box":{"x":116,"y":754,"width":729,"height":12}},{"id":"7cc332e1-27f4-4a0f-89c1-5217a078dbff","block_type":"box","text":"accrued interest. Trusts and partnerships are typically used to convert long-term fixed rate high quality","page_number":130,"box":{"x":116,"y":769,"width":759,"height":12}},{"id":"13119e1b-5485-4d11-ba6d-1668adf141f0","block_type":"box","text":"bonds of a single state or municipal issuer into variable or floating rate demand instruments.","page_number":130,"box":{"x":117,"y":785,"width":680,"height":12}},{"id":"8cc4d699-d7ab-43c8-a531-f29ed07e84fb","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt","page_number":130,"box":{"x":116,"y":816,"width":741,"height":12}},{"id":"ae20d4e5-1a78-419a-bb78-a697206fea69","block_type":"box","text":"obligations which give the holder the right to receive payment of principal subject to the conditions","page_number":130,"box":{"x":116,"y":831,"width":731,"height":12}},{"id":"c9ca6c67-a2f0-4e7e-b9f9-e778f5599819","block_type":"box","text":"described above. The IRS has not ruled on whether the interest received on tax-exempt municipal","page_number":130,"box":{"x":116,"y":847,"width":732,"height":12}},{"id":"e6b67ace-2927-49f4-bc0d-f66bc0182482","block_type":"box","text":"investments in the form of participation interests or custodial receipts is tax-exempt, and accordingly,","page_number":130,"box":{"x":117,"y":862,"width":751,"height":12}},{"id":"ab9d4bb8-a61a-408f-8f96-c40541eb219b","block_type":"box","text":"purchases of any such interests or receipts are based on the opinions of counsel to the sponsors of","page_number":130,"box":{"x":117,"y":878,"width":742,"height":12}},{"id":"6e0a5588-8ba2-4b61-abf0-c5d7592ab6a5","block_type":"box","text":"II-80","page_number":130,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"1bfa1740-1f79-446a-a524-10a65993eea0","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":130,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"b33e81e1-d501-4aae-9984-c52cda3ecf7e","block_type":"box","text":"such derivative securities. Neither a Fund nor its investment adviser or sub-advisers will review the","page_number":131,"box":{"x":116,"y":87,"width":738,"height":10}},{"id":"9242d479-84a4-4121-b4c0-30d0a8d8e13b","block_type":"box","text":"proceedings related to the creation of any tax-exempt municipal investments or the basis for such","page_number":131,"box":{"x":117,"y":102,"width":728,"height":13}},{"id":"f031e316-80da-43c9-9423-0488428763fd","block_type":"box","text":"opinions.","page_number":131,"box":{"x":116,"y":118,"width":72,"height":12}},{"id":"9c714609-dd3b-4c78-9441-8ac4abe4bded","block_type":"box","text":"Operational and Technology Risks.","page_number":131,"box":{"x":117,"y":146,"width":279,"height":12}},{"id":"db083640-6a55-499d-a3c1-decbc20ff6a8","block_type":"box","text":"The Fund and the entities with which it interacts directly or","page_number":131,"box":{"x":397,"y":146,"width":442,"height":12}},{"id":"f0da2f07-de70-46fe-afeb-55aa7bd5b904","block_type":"box","text":"indirectly are susceptible to operational and technology risks, including those related to human errors,","page_number":131,"box":{"x":117,"y":162,"width":758,"height":12}},{"id":"049f7e9e-9d10-4ccb-af3d-e58d8e987895","block_type":"box","text":"processing errors, communication errors, systems failures, cybersecurity incidents, and the use of","page_number":131,"box":{"x":117,"y":177,"width":731,"height":12}},{"id":"d47c1f1e-d66c-49bf-975b-a5dd5011f5eb","block_type":"box","text":"artificial intelligence and machine learning (“AI”), which may result in losses for the Fund and its","page_number":131,"box":{"x":116,"y":192,"width":713,"height":13}},{"id":"b2313f37-95ef-4c0f-8d16-41c50d23fa76","block_type":"box","text":"shareholders or impair the Fund’s operations. These entities include, but are not limited to, the Fund’s","page_number":131,"box":{"x":116,"y":208,"width":760,"height":12}},{"id":"2183c7ad-d3ec-4787-a9d8-14ca97b94f65","block_type":"box","text":"adviser, administrator, distributor, other service providers (e.g., index and benchmark providers,","page_number":131,"box":{"x":116,"y":223,"width":716,"height":13}},{"id":"a04992d8-ff56-4764-af92-0e75a1795871","block_type":"box","text":"accountants, custodians, and transfer agents), financial intermediaries, counterparties, market makers,","page_number":131,"box":{"x":116,"y":239,"width":768,"height":12}},{"id":"e04bc8d5-00c2-422b-871f-76509e3074fa","block_type":"box","text":"Authorized Participants, listing exchanges, other financial market operators, and governmental","page_number":131,"box":{"x":116,"y":254,"width":706,"height":13}},{"id":"e74c9201-e55d-4083-9cc4-40228102672b","block_type":"box","text":"authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":131,"box":{"x":116,"y":270,"width":748,"height":12}},{"id":"bedde049-b37c-4473-bd9c-2ae22553fb95","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s","page_number":131,"box":{"x":116,"y":285,"width":711,"height":13}},{"id":"58e5920a-061c-48c3-85a1-01faf010f3aa","block_type":"box","text":"investments in such issuers to lose value. The Fund may incur substantial costs in order to mitigate","page_number":131,"box":{"x":117,"y":301,"width":741,"height":12}},{"id":"8c383680-f5e7-431a-8963-09f7615708b6","block_type":"box","text":"operational and technology risks.","page_number":131,"box":{"x":116,"y":317,"width":250,"height":12}},{"id":"87b73c85-758c-42af-8ac8-b38b0aa86d9c","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in","page_number":131,"box":{"x":117,"y":344,"width":754,"height":12}},{"id":"baf0bc06-a572-4fba-b462-9fb6da192fc3","block_type":"box","text":"which the Fund invests, the Fund or any of its service providers. They include, but are not limited to,","page_number":131,"box":{"x":116,"y":360,"width":746,"height":12}},{"id":"28d31187-c64b-40ad-8a78-813cf1287977","block_type":"box","text":"gaining unauthorized access to systems, misappropriating assets or sensitive information, corrupting or","page_number":131,"box":{"x":116,"y":375,"width":772,"height":12}},{"id":"35fde2b9-9046-4fd2-81ae-54755fa9b2b6","block_type":"box","text":"destroying data, and causing operational disruption. Geopolitical tension may increase the scale and","page_number":131,"box":{"x":116,"y":391,"width":751,"height":12}},{"id":"c3bbd9a9-14f6-4304-889d-ce12cd92b6bd","block_type":"box","text":"sophistication of deliberate attacks, particularly those from nation states or from entities with nation","page_number":131,"box":{"x":116,"y":406,"width":738,"height":12}},{"id":"ab2b519c-782e-4566-abdc-99bfbe9c685a","block_type":"box","text":"state backing. Cybersecurity incidents may result in any of the following: financial losses; interference","page_number":131,"box":{"x":116,"y":422,"width":757,"height":12}},{"id":"de1328f8-0407-48d9-b3be-eeaacd86c4af","block_type":"box","text":"with the Fund’s ability to calculate its NAV; disclosure of confidential information; impediments to","page_number":131,"box":{"x":116,"y":437,"width":721,"height":12}},{"id":"c4e33e64-4870-4dcb-a920-cb5290dec5f7","block_type":"box","text":"trading; submission of erroneous trades by the Fund or erroneous subscription or redemption orders;","page_number":131,"box":{"x":116,"y":453,"width":754,"height":12}},{"id":"515dd769-e025-449e-bebe-536dde4f0393","block_type":"box","text":"the inability of the Fund or its service providers to transact business; violations of applicable privacy","page_number":131,"box":{"x":116,"y":468,"width":743,"height":12}},{"id":"e11dcf08-22ed-483d-82bd-e09fe0e38298","block_type":"box","text":"and other laws; regulatory fines; penalties; reputational damage; reimbursement or other compensation","page_number":131,"box":{"x":116,"y":484,"width":772,"height":12}},{"id":"1a5aa228-c3a8-4cd5-b8ec-28c50a8c725a","block_type":"box","text":"costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":131,"box":{"x":116,"y":500,"width":735,"height":12}},{"id":"021a66a3-a8e7-4999-87e6-87a108a52151","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of","page_number":131,"box":{"x":117,"y":515,"width":766,"height":12}},{"id":"2a997c1f-e2d0-4dc2-94b8-1694c405635b","block_type":"box","text":"Fund shares, and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete.","page_number":131,"box":{"x":117,"y":530,"width":761,"height":13}},{"id":"ba150f8a-d6bc-42ae-a871-55ed04e9f8be","block_type":"box","text":"Power outages, natural disasters, equipment malfunctions and processing errors that threaten","page_number":131,"box":{"x":117,"y":546,"width":702,"height":12}},{"id":"8166d013-89e5-4955-bb6f-0aabc413acbb","block_type":"box","text":"information and technology systems relied upon by the Fund or its service providers, as well as market","page_number":131,"box":{"x":117,"y":561,"width":766,"height":13}},{"id":"b2f9f91e-d39a-4035-965d-c9037bb199ee","block_type":"box","text":"events that occur at a pace that overloads these systems, may also disrupt business operations or","page_number":131,"box":{"x":116,"y":577,"width":735,"height":12}},{"id":"f57a0e61-6986-4c85-afa6-80be0647bd9e","block_type":"box","text":"impact critical data. Recent advances in AI technology pose risks to the Fund and its portfolio","page_number":131,"box":{"x":117,"y":592,"width":696,"height":13}},{"id":"ffb61fbe-b354-4e36-a598-68a9300fdef5","block_type":"box","text":"investments. These advancements could harm the Fund and its portfolio investments by reducing the","page_number":131,"box":{"x":117,"y":608,"width":756,"height":12}},{"id":"1ee57d28-fc6d-49fc-a2d0-fe1d61440073","block_type":"box","text":"demand for both the technology and software offerings of the Fund’s portfolio investments.","page_number":131,"box":{"x":116,"y":623,"width":677,"height":13}},{"id":"55d5133d-6e8e-430a-80da-e85f27c15832","block_type":"box","text":"Additionally, these advancements could significantly disrupt the Fund’s portfolio investments and","page_number":131,"box":{"x":116,"y":639,"width":722,"height":12}},{"id":"73b3c9d9-bfa7-4b7c-bd6e-cf23dfef5bab","block_type":"box","text":"subject them to increased competition, which could have a material adverse effect on business,","page_number":131,"box":{"x":116,"y":654,"width":714,"height":13}},{"id":"f4c71cb5-a70f-4ae7-9a86-083a4838920b","block_type":"box","text":"financial condition, and results of operations. AI technology advancements, including efficiency","page_number":131,"box":{"x":116,"y":670,"width":703,"height":12}},{"id":"ba5e5cde-3ecf-439d-a179-30a042902cf8","block_type":"box","text":"improvements, without related increases in the adoption and development of such technologies, could","page_number":131,"box":{"x":117,"y":685,"width":755,"height":13}},{"id":"67b90b2a-905d-48d2-8dd0-b897065de9a2","block_type":"box","text":"also negatively impact demand for, and the valuation of, digital infrastructure assets.","page_number":131,"box":{"x":116,"y":701,"width":624,"height":12}},{"id":"d396aff8-765c-4ba1-b498-7143b85fdcdd","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party","page_number":131,"box":{"x":116,"y":729,"width":727,"height":12}},{"id":"c4922b04-af23-4839-a8b3-f9db7d0afe82","block_type":"box","text":"service providers or any counterparties, whether or not known to the Fund, also use AI technology in","page_number":131,"box":{"x":116,"y":745,"width":745,"height":11}},{"id":"de26158a-fb0a-4e0d-a576-de14ef7fceb1","block_type":"box","text":"their business activities. The Fund and its service providers may not be in a position to control the use","page_number":131,"box":{"x":116,"y":760,"width":756,"height":12}},{"id":"7e7874fc-1656-4adf-b9ff-2b90cb8e8c2d","block_type":"box","text":"of AI technology in third-party products or services.","page_number":131,"box":{"x":116,"y":775,"width":377,"height":12}},{"id":"436ebc76-77c2-4d21-af41-cfb49c3e307f","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable","page_number":131,"box":{"x":117,"y":803,"width":745,"height":12}},{"id":"3b8bea57-7c8f-42c8-8993-ea248722f5b1","block_type":"box","text":"policies, contractual or other obligations or restrictions, resulting in such confidential information","page_number":131,"box":{"x":117,"y":819,"width":708,"height":12}},{"id":"8fca6682-fdba-43ab-8454-eac92920600f","block_type":"box","text":"becoming accessible by other third-party AI technology applications and users.","page_number":131,"box":{"x":117,"y":834,"width":589,"height":12}},{"id":"f4b2cfcc-0f42-4ea1-b864-649e5f39a8cd","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and","page_number":131,"box":{"x":117,"y":862,"width":706,"height":12}},{"id":"018d9f76-2ade-4cde-b2a7-0355f49b84e8","block_type":"box","text":"analysis of large amounts of data, may incorporate biased or inaccurate data, and it is not possible or","page_number":131,"box":{"x":116,"y":878,"width":757,"height":12}},{"id":"353d6668-15c9-4500-b5d2-17b173d07305","block_type":"box","text":"II-81","page_number":131,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"520ada85-b379-4de9-9889-375418c339d2","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":131,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"7b23c4d5-d013-4ee7-a3d5-62fb95ceac88","block_type":"box","text":"practicable to incorporate all relevant data into the models that AI technology utilizes to operate.","page_number":132,"box":{"x":117,"y":87,"width":715,"height":12}},{"id":"bd4b8c04-8f11-4610-9db9-76670523161d","block_type":"box","text":"Certain data in such models will inevitably contain a degree of inaccuracy and error, or could otherwise","page_number":132,"box":{"x":117,"y":102,"width":768,"height":13}},{"id":"2ab99882-6b99-497c-b3d2-d90133c6a63e","block_type":"box","text":"be inadequate or flawed, which would be likely to degrade the effectiveness of AI technology. 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The Fund and its adviser seek to reduce these risks through","page_number":132,"box":{"x":116,"y":552,"width":706,"height":12}},{"id":"2663916a-f90f-4ba5-89f7-53d79a7e6f02","block_type":"box","text":"controls, procedures and oversight, including establishing business continuity plans and risk","page_number":132,"box":{"x":116,"y":568,"width":687,"height":12}},{"id":"430490d3-6527-44ab-9a58-02fd537bffa0","block_type":"box","text":"management systems. 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Regulators continue to develop new rules and standards","page_number":132,"box":{"x":117,"y":723,"width":742,"height":12}},{"id":"522551bd-1b3a-42dc-98a6-4cce92b5623f","block_type":"box","text":"related to cybersecurity and data protection. Compliance with evolving regulations can be demanding","page_number":132,"box":{"x":117,"y":738,"width":750,"height":12}},{"id":"8f0a101e-df54-4094-8fd0-3005d4ee1316","block_type":"box","text":"and costly, requiring substantial resources to monitor and implement required changes.","page_number":132,"box":{"x":116,"y":754,"width":647,"height":12}},{"id":"8c723da3-c1b3-41f0-bc22-017634e138c8","block_type":"box","text":"Participation Notes.","page_number":132,"box":{"x":116,"y":785,"width":157,"height":12}},{"id":"45fe1fe1-1465-4104-99c3-bdab96f20498","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that","page_number":132,"box":{"x":279,"y":785,"width":586,"height":12}},{"id":"eb1b1301-572c-4a89-a40f-7ac17c48a04f","block_type":"box","text":"entitle the Fund to a return measured by the change in value of an identified underlying security or","page_number":132,"box":{"x":116,"y":800,"width":729,"height":12}},{"id":"ecec20e0-b824-4c67-b0bc-71d1f42e4e15","block_type":"box","text":"basket of securities (collectively, the “underlying security”). Participation notes are typically used when","page_number":132,"box":{"x":117,"y":816,"width":755,"height":12}},{"id":"3647f9af-9e81-40b6-88dd-e80fbb1894df","block_type":"box","text":"a direct investment in the underlying security is restricted due to country-specific regulations.","page_number":132,"box":{"x":116,"y":831,"width":692,"height":12}},{"id":"447daddf-a310-4659-95a7-44002d3e8b6c","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note","page_number":132,"box":{"x":116,"y":862,"width":766,"height":12}},{"id":"868c1b26-d7ce-40c3-841b-4bfb490866a3","block_type":"box","text":"is not the same as investment in the constituent shares of the company. A participation note represents","page_number":132,"box":{"x":117,"y":878,"width":771,"height":12}},{"id":"3f1fbaf8-ae79-4fca-9d30-1085a3dd32cf","block_type":"box","text":"II-82","page_number":132,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"fe41e6b6-610a-4e8e-9bd9-7ed004a7fe2c","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":132,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"ed424e05-741e-4647-806a-0c35fdbf11cb","block_type":"box","text":"only an obligation of the issuer to provide the Fund the economic performance equivalent to holding","page_number":133,"box":{"x":116,"y":87,"width":744,"height":12}},{"id":"91ce63f6-4712-4d59-a7db-48f00dacffa3","block_type":"box","text":"shares of an underlying security. A participation note does not provide any beneficial or equitable","page_number":133,"box":{"x":116,"y":102,"width":725,"height":13}},{"id":"228e917d-fe34-41f8-b80a-eea541c781fc","block_type":"box","text":"entitlement or interest in the relevant underlying security. In other words, shares of the underlying","page_number":133,"box":{"x":116,"y":118,"width":727,"height":12}},{"id":"303340c6-a241-4553-9810-ceca6da2f17e","block_type":"box","text":"security are not in any way owned by the Fund. However, each participation note synthetically","page_number":133,"box":{"x":116,"y":134,"width":702,"height":12}},{"id":"511cbf16-9443-47ab-b54f-95c874276168","block_type":"box","text":"replicates the economic benefit of holding shares in the underlying security. Because a participation","page_number":133,"box":{"x":117,"y":149,"width":743,"height":12}},{"id":"ae0f5c7d-c2ce-4281-86d0-1fbe686b502d","block_type":"box","text":"note is an obligation of the issuer, rather than a direct investment in shares of the underlying security, a","page_number":133,"box":{"x":117,"y":165,"width":770,"height":12}},{"id":"afec8cb3-a380-40b8-ad4d-01aa5ff88f20","block_type":"box","text":"Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to","page_number":133,"box":{"x":117,"y":180,"width":745,"height":12}},{"id":"708c3b47-41c9-4ad7-883d-33c6ef7abdc5","block_type":"box","text":"perform its obligations. A Fund attempts to mitigate that risk by purchasing only from issuers","page_number":133,"box":{"x":117,"y":196,"width":689,"height":12}},{"id":"1500570d-bb55-4f7f-b5f7-bbed70c14fc8","block_type":"box","text":"determined to be creditworthy.","page_number":133,"box":{"x":116,"y":211,"width":231,"height":12}},{"id":"16a3aebc-2735-4441-98f6-d33d0860919c","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge","page_number":133,"box":{"x":116,"y":242,"width":755,"height":12}},{"id":"b0c2973b-f149-4ebf-9727-cec3fd967cb9","block_type":"box","text":"its obligation. A Fund may, but is not required to, purchase credit protection against the default of the","page_number":133,"box":{"x":117,"y":258,"width":752,"height":12}},{"id":"052b2b63-d8a5-4102-bad7-3e5855d66ff2","block_type":"box","text":"issuer. When the participation note expires or a Fund exercises the participation note and closes its","page_number":133,"box":{"x":117,"y":273,"width":742,"height":12}},{"id":"b79dea96-b18a-4b76-a085-d2f900906483","block_type":"box","text":"position, the Fund receives a payment that is based upon the then-current value of the underlying","page_number":133,"box":{"x":117,"y":289,"width":728,"height":12}},{"id":"04b82d84-a992-4890-a316-1c7455c61481","block_type":"box","text":"security converted into U.S. dollars (less transaction costs). The price, performance and liquidity of a","page_number":133,"box":{"x":116,"y":304,"width":751,"height":12}},{"id":"e19c485c-4dcb-408b-8dff-cfeaf98623c0","block_type":"box","text":"participation note are all linked directly to the underlying security. A Fund’s ability to redeem or","page_number":133,"box":{"x":117,"y":320,"width":704,"height":12}},{"id":"e56faecf-8549-4850-9458-7008a112277d","block_type":"box","text":"exercise a participation note generally is dependent on the liquidity in the local trading market for the","page_number":133,"box":{"x":116,"y":335,"width":750,"height":12}},{"id":"892d4323-f87e-42f0-aed0-4b392ef615f1","block_type":"box","text":"security underlying the participation note.","page_number":133,"box":{"x":116,"y":351,"width":310,"height":12}},{"id":"432ef471-93f8-4331-aa5e-b84af356d51c","block_type":"box","text":"Portfolio Turnover Rates.","page_number":133,"box":{"x":116,"y":382,"width":201,"height":9}},{"id":"3d23444c-663f-4d9d-8a84-2cadea3b10f2","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale","page_number":133,"box":{"x":318,"y":382,"width":569,"height":12}},{"id":"71275c8d-07f0-4f62-9d4a-ed84bca6963d","block_type":"box","text":"or purchase when the Manager believes investment considerations warrant such sale or purchase.","page_number":133,"box":{"x":116,"y":397,"width":738,"height":12}},{"id":"a4dec6ba-bfe5-401d-8194-5c92dfc74bd6","block_type":"box","text":"Although certain Funds will use an approach to investing that is largely a passive, indexing approach,","page_number":133,"box":{"x":116,"y":413,"width":756,"height":12}},{"id":"0230ef6a-1cd7-407a-aaf3-0c8fe959ae1c","block_type":"box","text":"such Funds may engage in a substantial number of portfolio transactions. With respect to these Funds,","page_number":133,"box":{"x":116,"y":428,"width":770,"height":12}},{"id":"c8126c1f-0199-4459-9c77-53c8bd29dbdc","block_type":"box","text":"the rate of portfolio turnover will be a limiting factor when the Manager considers whether to purchase","page_number":133,"box":{"x":116,"y":444,"width":759,"height":12}},{"id":"5631f64b-e497-4176-b2f1-d07ad87b7d50","block_type":"box","text":"or sell securities for a Fund only to the extent that the Manager will consider the impact of transaction","page_number":133,"box":{"x":116,"y":459,"width":756,"height":12}},{"id":"2d5d0360-208c-45c3-9d1d-2b170f184d8a","block_type":"box","text":"costs on a Fund’s tracking error. Portfolio turnover may vary greatly from year to year as well as within","page_number":133,"box":{"x":116,"y":475,"width":765,"height":12}},{"id":"5c867a15-ead8-4fa3-862e-5f6dab784c71","block_type":"box","text":"a particular year. High portfolio turnover (","page_number":133,"box":{"x":116,"y":490,"width":305,"height":12}},{"id":"993feb1f-a674-45cb-9acb-1c88a332c8ab","block_type":"box","text":"i.e.","page_number":133,"box":{"x":422,"y":490,"width":21,"height":10}},{"id":"bdd18d57-b6f1-4fcd-be2c-fa94b6ae2448","block_type":"box","text":", 100% or more) may result in increased transaction costs","page_number":133,"box":{"x":446,"y":490,"width":433,"height":12}},{"id":"82fb86ae-f6f5-4748-bef8-4e6005a53f52","block_type":"box","text":"to a Fund, including brokerage commissions, dealer mark-ups and other transaction costs on the sale","page_number":133,"box":{"x":116,"y":506,"width":759,"height":12}},{"id":"e6a54dda-1a90-49f1-a4a4-6a30088bb09d","block_type":"box","text":"of the securities and reinvestment in other securities. 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These effects of higher than normal portfolio turnover may adversely affect a","page_number":133,"box":{"x":116,"y":552,"width":761,"height":12}},{"id":"b6d81078-c72b-483d-9273-d68dd4b8160d","block_type":"box","text":"Fund’s performance.","page_number":133,"box":{"x":117,"y":568,"width":158,"height":12}},{"id":"75fe8ab0-a0b4-405b-a925-1201c8654648","block_type":"box","text":"Preferred Stock.","page_number":133,"box":{"x":116,"y":599,"width":126,"height":9}},{"id":"91fba7ea-532f-48b1-b40a-eed6f2636e38","block_type":"box","text":"Certain Funds may invest in preferred sto","page_number":133,"box":{"x":243,"y":599,"width":306,"height":12}},{"id":"79d24474-4b6c-4396-94a4-8925cbb47ef2","block_type":"box","text":"cks. Preferred stock has a preference over","page_number":133,"box":{"x":550,"y":599,"width":314,"height":12}},{"id":"854e09f1-85d8-4f2a-8671-27c08d8cb58e","block_type":"box","text":"common stock in liquidation (and generally dividends","page_number":133,"box":{"x":116,"y":614,"width":384,"height":12}},{"id":"003082fb-b2f8-4e49-abf9-bc50ecf332d3","block_type":"box","text":"as well) but is subordinated to bond holders and","page_number":133,"box":{"x":501,"y":614,"width":358,"height":12}},{"id":"bcee723c-00bd-46cc-a758-a95f60a849ed","block_type":"box","text":"other creditors in all respects. As a general rule, t","page_number":133,"box":{"x":116,"y":630,"width":357,"height":12}},{"id":"0f65fa46-5d01-4579-9231-d438e289ac29","block_type":"box","text":"he market value of preferred stock with a fixed dividend","page_number":133,"box":{"x":474,"y":630,"width":406,"height":12}},{"id":"9e2043c6-8d07-41f4-af52-f2596a3860b5","block_type":"box","text":"rate and no conversion element varies inversely with","page_number":133,"box":{"x":117,"y":645,"width":386,"height":12}},{"id":"01e5d729-4f95-47c7-9a65-b6dda1df7d56","block_type":"box","text":"interest rates and perceived credit risk, while the","page_number":133,"box":{"x":504,"y":645,"width":355,"height":12}},{"id":"248b61cc-54e7-4e13-a3db-bb90c939b97e","block_type":"box","text":"market price of convertible preferred stock generally","page_number":133,"box":{"x":117,"y":661,"width":377,"height":12}},{"id":"6448346d-1b1a-48b0-85f0-83f12554d369","block_type":"box","text":"also reflects some element of conversion value.","page_number":133,"box":{"x":499,"y":661,"width":345,"height":9}},{"id":"ff1c4e18-825a-4db0-9788-61713be3919a","block_type":"box","text":"Because preferred stock is junior to debt securities","page_number":133,"box":{"x":117,"y":676,"width":367,"height":12}},{"id":"b13222c9-a69e-4571-b131-2c01699bafbf","block_type":"box","text":"and other obligations of the issuer, deterioration in the","page_number":133,"box":{"x":489,"y":676,"width":391,"height":12}},{"id":"9c4b6974-8331-407a-8e21-51058c5d14c4","block_type":"box","text":"credit quality of the issuer will cause greater changes in","page_number":133,"box":{"x":116,"y":692,"width":402,"height":12}},{"id":"7b980c88-f575-4dc2-8b81-959232f84e3d","block_type":"box","text":"the value of a preferred stock than in a more","page_number":133,"box":{"x":523,"y":692,"width":323,"height":12}},{"id":"1adfdb3f-3ee5-4d65-974c-3c57fba36073","block_type":"box","text":"senior debt security with similar stated yield characte","page_number":133,"box":{"x":116,"y":707,"width":383,"height":12}},{"id":"e74a4db7-b4cb-4779-a8f3-d0a47a19a634","block_type":"box","text":"ristics. Unlike interest payments on debt securities,","page_number":133,"box":{"x":500,"y":707,"width":367,"height":12}},{"id":"7aa13e04-de88-4f49-953e-604a9eaf5ae9","block_type":"box","text":"preferred stock dividends are payable only if declared by","page_number":133,"box":{"x":117,"y":723,"width":410,"height":12}},{"id":"b58c4180-5e68-46f3-a894-f2a7c9e53754","block_type":"box","text":"the issuer’s board of di","page_number":133,"box":{"x":532,"y":723,"width":164,"height":9}},{"id":"27d614a8-6523-4635-9219-0ba4e385c371","block_type":"box","text":"rectors. Preferred stock","page_number":133,"box":{"x":698,"y":723,"width":170,"height":9}},{"id":"8374cf27-dd1c-4452-82af-e0ca16cec1f6","block_type":"box","text":"also may be subject to optional or mandatory redemption provisions.","page_number":133,"box":{"x":116,"y":738,"width":496,"height":12}},{"id":"21ca0a2e-f61a-4adc-abe0-43e4888e8539","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":133,"box":{"x":118,"y":769,"width":224,"height":12}},{"id":"082b32bd-eb4f-4aab-a4f4-0838a0efe17a","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment","page_number":133,"box":{"x":350,"y":769,"width":497,"height":12}},{"id":"93f52437-83ab-4fea-8273-442168f6caa8","block_type":"box","text":"funds that pay dividends that are exempt from regular U.S. federal income tax. Such funds in turn","page_number":133,"box":{"x":116,"y":785,"width":722,"height":12}},{"id":"a30f393a-e9c8-43cc-b1d8-0056d326b558","block_type":"box","text":"invest in municipal bonds and other assets that pay interest or make distributions that are exempt from","page_number":133,"box":{"x":117,"y":800,"width":759,"height":12}},{"id":"abb4ce01-5ea4-4f19-b9bf-a81683ea1f7c","block_type":"box","text":"regular U.S. federal income tax, such as revenue bonds issued by state or local agencies to fund the","page_number":133,"box":{"x":117,"y":816,"width":746,"height":12}},{"id":"6016043a-0fdb-4862-992c-cd1b98000e98","block_type":"box","text":"development of low-income, multi-family housing. Investment in such tax-exempt preferred shares","page_number":133,"box":{"x":116,"y":831,"width":733,"height":12}},{"id":"c25bce3b-2f93-4f45-b16b-3bab1764b514","block_type":"box","text":"involves many of the same issues as investing in other investment companies. These investments also","page_number":133,"box":{"x":117,"y":847,"width":768,"height":12}},{"id":"568241b2-8e14-4fae-9594-ef456d5c165c","block_type":"box","text":"have additional risks, including illiquid investments risk, the absence of regulation governing","page_number":133,"box":{"x":117,"y":862,"width":685,"height":12}},{"id":"741ec60e-73c0-4a8a-bf53-016ad0e04c9b","block_type":"box","text":"investment practices, capital structure and leverage, affiliated transactions and other matters, and","page_number":133,"box":{"x":117,"y":878,"width":729,"height":12}},{"id":"6a8dfa6f-ab35-4ff1-96ba-23ffb41beae5","block_type":"box","text":"II-83","page_number":133,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f04e17a8-db99-48bf-ac98-34d8a7dc2da8","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":133,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"589c0e10-e913-4607-bf73-d3fdddc5c0c7","block_type":"box","text":"concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat","page_number":134,"box":{"x":116,"y":87,"width":740,"height":12}},{"id":"ef97fc5d-71b0-49f9-bfc6-bab60e8225a8","block_type":"box","text":"investments in tax-exempt preferred shares as investments in municipal bonds.","page_number":134,"box":{"x":117,"y":102,"width":593,"height":12}},{"id":"33196aad-9672-478a-8c71-d41fc8a39229","block_type":"box","text":"Trust Preferred Securities.","page_number":134,"box":{"x":118,"y":134,"width":193,"height":9}},{"id":"7aec7f19-a0a6-44f5-aeb4-7ed83b35fbc9","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred","page_number":134,"box":{"x":312,"y":134,"width":525,"height":12}},{"id":"78f552a7-60a5-4121-abfb-98571ec0701a","block_type":"box","text":"securities are typically issued by corporations, generally in the form of interest bearing notes with","page_number":134,"box":{"x":116,"y":149,"width":724,"height":12}},{"id":"c3fe6e8b-498b-428d-950b-ee08358fbd20","block_type":"box","text":"preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the","page_number":134,"box":{"x":117,"y":165,"width":751,"height":12}},{"id":"ecfeaa2e-c99e-4063-a2de-7369cd126005","block_type":"box","text":"form of beneficial interests in subordinated debentures or similarly structured securities. The trust","page_number":134,"box":{"x":116,"y":180,"width":726,"height":12}},{"id":"98ed278c-7281-4c71-bc94-8f314abe5eea","block_type":"box","text":"preferred securities market consists of both fixed and adjustable coupon rate securities that are either","page_number":134,"box":{"x":117,"y":196,"width":758,"height":12}},{"id":"24d1b913-37f5-4843-a892-295d359abfe8","block_type":"box","text":"perpetual in nature or have stated maturity dates.","page_number":134,"box":{"x":117,"y":211,"width":370,"height":12}},{"id":"f98c8ae8-62f9-4fe4-aa78-6306d3203402","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit","page_number":134,"box":{"x":116,"y":242,"width":748,"height":12}},{"id":"99005bf0-2da9-4e99-b400-d0a4f12e9cba","block_type":"box","text":"from a guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition,","page_number":134,"box":{"x":116,"y":258,"width":771,"height":12}},{"id":"99333866-cdd3-41ba-9cac-0e811c77b2e6","block_type":"box","text":"trust preferred securities typically permit an issuer to defer the payment of income for five years or","page_number":134,"box":{"x":116,"y":273,"width":733,"height":12}},{"id":"a4fd8bd4-d892-47d7-ad68-82a80e22f890","block_type":"box","text":"more without triggering an event of default. Because of their subordinated position in the capital","page_number":134,"box":{"x":117,"y":289,"width":713,"height":12}},{"id":"63eda890-addb-4c67-afb5-31a9c98dc837","block_type":"box","text":"structure of an issuer, the ability to defer payments for extended periods of time without default","page_number":134,"box":{"x":116,"y":304,"width":708,"height":12}},{"id":"da067ec0-c0cc-4e91-9ce6-b6c2e341c4de","block_type":"box","text":"consequences to the issuer, and certain other features (such as restrictions on common dividend","page_number":134,"box":{"x":116,"y":320,"width":725,"height":12}},{"id":"61942f30-1656-4f70-a0be-43a619f80516","block_type":"box","text":"payments by the issuer or ultimate guarantor when full cumulative payments on the trust preferred","page_number":134,"box":{"x":117,"y":335,"width":733,"height":12}},{"id":"aa708612-7902-40e5-acd4-3e0b33fb2ffd","block_type":"box","text":"securities have not been made), these trust preferred securities are often treated as close substitutes","page_number":134,"box":{"x":116,"y":351,"width":756,"height":12}},{"id":"b20162d3-2dd2-497d-9150-f91471d7b7e7","block_type":"box","text":"for traditional preferred securities, both by issuers and investors.","page_number":134,"box":{"x":116,"y":366,"width":483,"height":12}},{"id":"9df2a5e8-39d7-48ed-827a-35575c699653","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":134,"box":{"x":116,"y":397,"width":740,"height":12}},{"id":"249fd90a-8a5f-445e-aa79-dacca8937f18","block_type":"box","text":"®","page_number":134,"box":{"x":857,"y":396,"width":9,"height":7}},{"id":"517f8795-460f-4e14-9e76-a99b7d5f96ed","block_type":"box","text":"”);","page_number":134,"box":{"x":867,"y":397,"width":20,"height":12}},{"id":"89ce0f7a-56a4-485e-8810-761675bac686","block_type":"box","text":"monthly income preferred securities (“MIPS","page_number":134,"box":{"x":117,"y":413,"width":322,"height":12}},{"id":"7e124d14-ce3f-4a87-b7ae-41e95948ab3d","block_type":"box","text":"®","page_number":134,"box":{"x":439,"y":412,"width":10,"height":7}},{"id":"977e8ca6-009f-4f63-84c8-565840c9599f","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":134,"box":{"x":449,"y":413,"width":330,"height":12}},{"id":"56cae60b-547d-468e-9eca-39ef959aae55","block_type":"box","text":"®","page_number":134,"box":{"x":780,"y":412,"width":9,"height":7}},{"id":"3456a978-5eb0-4452-bc4b-8304cb3ce9b2","block_type":"box","text":"” ); quarterly","page_number":134,"box":{"x":790,"y":413,"width":95,"height":12}},{"id":"7ed21c59-ee0f-4636-884b-0ea742dc2848","block_type":"box","text":"income debt securities (“QUIDS","page_number":134,"box":{"x":117,"y":428,"width":234,"height":12}},{"id":"d8060802-0c45-442b-82f5-96a4eed0e108","block_type":"box","text":"®","page_number":134,"box":{"x":352,"y":427,"width":10,"height":7}},{"id":"237505e9-90f4-48a2-9d6c-52de679d39c3","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":134,"box":{"x":362,"y":428,"width":361,"height":12}},{"id":"8997730a-29d9-41b1-b12c-8615d6eb37e3","block_type":"box","text":"SM","page_number":134,"box":{"x":724,"y":428,"width":16,"height":6}},{"id":"d7420842-2011-47fa-9959-4269567e2ff0","block_type":"box","text":"”); corporate trust","page_number":134,"box":{"x":741,"y":428,"width":133,"height":12}},{"id":"31d477b3-dad1-45d9-b168-0277e956250d","block_type":"box","text":"securities (“CORTS","page_number":134,"box":{"x":116,"y":444,"width":145,"height":12}},{"id":"e02ca26b-cbb7-4422-99e1-208ce1db4da6","block_type":"box","text":"®","page_number":134,"box":{"x":262,"y":443,"width":9,"height":7}},{"id":"c0cfea2b-7d78-4ab5-baf6-69e5556774a8","block_type":"box","text":"”); public income notes (“PINES","page_number":134,"box":{"x":271,"y":444,"width":235,"height":12}},{"id":"9e1fa8cc-91dd-4782-aaf4-959b427dc006","block_type":"box","text":"®","page_number":134,"box":{"x":507,"y":443,"width":9,"height":7}},{"id":"3b1c230a-097b-47cf-90c9-b5612127888f","block_type":"box","text":"”); and other trust preferred securities.","page_number":134,"box":{"x":517,"y":444,"width":287,"height":12}},{"id":"46223fee-20fc-4397-b7e3-fd69d1cb6bfe","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in","page_number":134,"box":{"x":116,"y":475,"width":766,"height":12}},{"id":"cf3690af-3dd7-42dc-8dfd-9b7d6b778b9d","block_type":"box","text":"nature. In certain instances, a final maturity date may be extended and/or the final payment of principal","page_number":134,"box":{"x":117,"y":490,"width":767,"height":12}},{"id":"f0f98c51-1724-4cda-8d5e-84dd4b85d6ef","block_type":"box","text":"may be deferred at the issuer’s option for a specified time without default. No redemption can typically","page_number":134,"box":{"x":117,"y":506,"width":760,"height":12}},{"id":"9e4809be-3c88-4155-8f31-f1b766f0b4b3","block_type":"box","text":"take place unless all cumulative payment obligations have been met, although issuers may be able to","page_number":134,"box":{"x":116,"y":521,"width":758,"height":12}},{"id":"96db3d1a-de81-4f43-b035-191d64e6593b","block_type":"box","text":"engage in open-market repurchases without regard to whether all payments have been paid.","page_number":134,"box":{"x":116,"y":537,"width":693,"height":12}},{"id":"1be49cab-4f56-4cec-8232-ee44c66b422a","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by","page_number":134,"box":{"x":117,"y":568,"width":737,"height":12}},{"id":"a7db8042-379f-4ad8-b391-efe89f57b775","block_type":"box","text":"operating companies and are not a direct obligation of an operating company. At the time the trust or","page_number":134,"box":{"x":116,"y":583,"width":752,"height":12}},{"id":"377b5fb0-1dff-49b0-a357-11ff3a455913","block_type":"box","text":"special purpose entity sells such preferred securities to investors, it purchases debt of the operating","page_number":134,"box":{"x":116,"y":599,"width":745,"height":12}},{"id":"e936f158-dc63-4c8b-a211-132efb7df6f7","block_type":"box","text":"company (with terms comparable to those of the trust or special purpose entity securities), which","page_number":134,"box":{"x":116,"y":614,"width":722,"height":12}},{"id":"66260800-2a2f-46c8-950f-1020f22027f9","block_type":"box","text":"enables the operating company to deduct for tax purposes the interest paid on the debt held by the","page_number":134,"box":{"x":116,"y":630,"width":739,"height":12}},{"id":"5ce03162-a99f-48c1-bb34-554bbdbbf8cb","block_type":"box","text":"trust or special purpose entity. The trust or special purpose entity is generally required to be treated as","page_number":134,"box":{"x":116,"y":645,"width":765,"height":12}},{"id":"4271a58d-3619-4609-b3cc-244622af9293","block_type":"box","text":"transparent for U.S. federal income tax purposes such that the holders of the trust preferred securities","page_number":134,"box":{"x":116,"y":661,"width":757,"height":12}},{"id":"86bba159-9601-475f-b2f1-2649c2fe79f9","block_type":"box","text":"are treated as owning beneficial interests in the underlying debt of the operating company. Accordingly,","page_number":134,"box":{"x":116,"y":676,"width":765,"height":12}},{"id":"d00a76c2-a1b2-48b1-9882-54333795862d","block_type":"box","text":"payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":134,"box":{"x":117,"y":692,"width":757,"height":12}},{"id":"9be2a6a8-c79d-4761-8769-90c0eeca6707","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating","page_number":134,"box":{"x":117,"y":707,"width":727,"height":12}},{"id":"aa438ac5-7211-426b-a7f7-b013b582a26b","block_type":"box","text":"company’s debt and would have priority with respect to the operating company’s earnings and profits","page_number":134,"box":{"x":116,"y":723,"width":748,"height":12}},{"id":"62bf43ca-c24b-4811-8116-5f30f04c354e","block_type":"box","text":"over the operating company’s common shareholders but would typically be subordinated to other","page_number":134,"box":{"x":116,"y":738,"width":720,"height":12}},{"id":"50a2fad6-07a8-43c8-af6d-14643cb84206","block_type":"box","text":"classes of the operating company’s debt. Typically, a preferred share has a rating that is slightly below","page_number":134,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"205c82a0-a4ce-4c41-9c7d-c3d2c763fe2b","block_type":"box","text":"that of its corresponding operating company’s senior debt securities.","page_number":134,"box":{"x":116,"y":769,"width":506,"height":12}},{"id":"ae3016c2-1262-46b8-8a16-ec9835d9bded","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":134,"box":{"x":116,"y":800,"width":324,"height":12}},{"id":"bcb33df4-1224-4d50-baf5-7a3eab2b7fb9","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in","page_number":134,"box":{"x":448,"y":800,"width":417,"height":12}},{"id":"6790c8c3-710f-403a-91f4-469541c8ada0","block_type":"box","text":"shares of REITs. REITs possess certain risks which differ from an investment in common stocks.","page_number":134,"box":{"x":116,"y":816,"width":718,"height":12}},{"id":"d07e0e8f-2fb9-4f5b-9343-e394234db038","block_type":"box","text":"REITs are financial vehicles that pool investor’s capital to purchase or finance real estate. REITs may","page_number":134,"box":{"x":117,"y":831,"width":756,"height":12}},{"id":"a4511afe-0e2b-46ed-845e-8f59d791dccb","block_type":"box","text":"concentrate their investments in specific geographic areas or in specific property types,","page_number":134,"box":{"x":116,"y":847,"width":652,"height":12}},{"id":"97308491-7ff8-4b44-af1b-ff4fb428827b","block_type":"box","text":"i.e.","page_number":134,"box":{"x":768,"y":847,"width":21,"height":9}},{"id":"e89f8faa-9e74-4e8f-9ced-5b58c8058018","block_type":"box","text":", hotels,","page_number":134,"box":{"x":792,"y":847,"width":62,"height":11}},{"id":"f04a3202-3376-4897-8d56-24cdd47027f1","block_type":"box","text":"shopping malls, residential complexes and office buildings.","page_number":134,"box":{"x":116,"y":862,"width":441,"height":12}},{"id":"62c2ee8b-d738-4a17-803f-21172af808f8","block_type":"box","text":"II-84","page_number":134,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"47883442-0473-4db9-98db-db98a56044f0","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":134,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"e51432c5-25b2-41f0-acc0-7d3dda34d619","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will","page_number":135,"box":{"x":117,"y":87,"width":752,"height":12}},{"id":"33b2458b-55d5-4948-9eb2-c32810785204","block_type":"box","text":"bear its proportionate share of the costs of the REITs’ operations. There are three general categories","page_number":135,"box":{"x":117,"y":102,"width":754,"height":13}},{"id":"37f4ef6a-1861-4cfd-9748-38a0b26f96f6","block_type":"box","text":"of REITs: Equity REITs, Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee","page_number":135,"box":{"x":116,"y":118,"width":763,"height":12}},{"id":"69c9560e-0292-475c-966f-ee0d24d90383","block_type":"box","text":"ownership or leasehold ownership of real property, which derive most of their income from rents.","page_number":135,"box":{"x":116,"y":134,"width":721,"height":12}},{"id":"65b97338-ecce-4ed0-a5e6-1b28569fa3a4","block_type":"box","text":"Mortgage REITs invest mostly in mortgages on real estate, which may secure construction,","page_number":135,"box":{"x":117,"y":149,"width":681,"height":12}},{"id":"cb57d70f-e325-45e9-b980-cc0f630ef033","block_type":"box","text":"development or long-term loans; the main source of their income is mortgage interest payments.","page_number":135,"box":{"x":116,"y":165,"width":720,"height":12}},{"id":"7698c4c5-0dad-460f-b673-984db095f389","block_type":"box","text":"Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":135,"box":{"x":117,"y":180,"width":541,"height":12}},{"id":"2d361382-78cc-4cbf-8adf-697290a87c5c","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in","page_number":135,"box":{"x":117,"y":211,"width":749,"height":12}},{"id":"7ab9accb-880d-47fe-8803-89a508452975","block_type":"box","text":"the real estate industry in general. The market value of REIT shares and the ability of the REITs to","page_number":135,"box":{"x":116,"y":227,"width":735,"height":12}},{"id":"adc8cd8c-bbf1-4e1f-b63e-40dbd164e875","block_type":"box","text":"distribute income may be adversely affected by several factors, including rising interest rates, changes","page_number":135,"box":{"x":116,"y":242,"width":765,"height":12}},{"id":"7d980542-0c3d-4a5d-af60-a5e47bcc28be","block_type":"box","text":"in the national, state and local economic climate and real estate conditions, occupancy and rental","page_number":135,"box":{"x":117,"y":258,"width":727,"height":12}},{"id":"a8d7d809-3aac-42d5-a831-5b6dfe12c0cd","block_type":"box","text":"rates, perceptions of prospective tenants of the safety, convenience and attractiveness of the","page_number":135,"box":{"x":117,"y":273,"width":695,"height":12}},{"id":"de2607ee-b1d3-4727-9ebf-ba6fcf676f2a","block_type":"box","text":"properties, the ability of the owners to provide adequate management, maintenance and insurance, the","page_number":135,"box":{"x":117,"y":289,"width":770,"height":12}},{"id":"230b91d6-c3e8-495b-b162-8ca9976b5287","block_type":"box","text":"cost of complying with the Americans with Disabilities Act, increased competition from new properties,","page_number":135,"box":{"x":116,"y":304,"width":761,"height":12}},{"id":"72ec156f-352d-459c-8a07-d821c28330d9","block_type":"box","text":"the impact of present or future environmental legislation and compliance with environmental laws,","page_number":135,"box":{"x":116,"y":320,"width":729,"height":12}},{"id":"96581ebc-096b-4205-9e3a-642f85e12997","block_type":"box","text":"failing to maintain their exemptions from registration under the Investment Company Act, changes in","page_number":135,"box":{"x":116,"y":335,"width":749,"height":12}},{"id":"b7d14e2f-e0e5-48c9-97bc-9379ae1d1066","block_type":"box","text":"real estate taxes and other operating expenses, adverse changes in governmental rules and fiscal","page_number":135,"box":{"x":117,"y":351,"width":733,"height":12}},{"id":"7f467690-df38-4441-b2e9-ce1017942fd2","block_type":"box","text":"policies, adverse changes in zoning laws and other factors beyond the control of the issuers of the","page_number":135,"box":{"x":117,"y":366,"width":733,"height":12}},{"id":"1efbbca4-51dd-455a-8fbb-41ff9592b13c","block_type":"box","text":"REITs. To the extent that assets underlying a REIT are concentrated geographically, by property type,","page_number":135,"box":{"x":117,"y":382,"width":762,"height":12}},{"id":"6ccb3bbc-2f3f-482a-8060-0d7ec8c38cd2","block_type":"box","text":"or in certain other respects, these risks may be heightened.","page_number":135,"box":{"x":116,"y":397,"width":446,"height":12}},{"id":"125d121e-6e69-4bde-a373-9ace4015d289","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or","page_number":135,"box":{"x":117,"y":428,"width":761,"height":12}},{"id":"daa837a4-8ef4-45fb-baab-28b39bb5a163","block_type":"box","text":"return of capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating","page_number":135,"box":{"x":117,"y":444,"width":760,"height":12}},{"id":"fcea01b0-1f09-4c3e-ad7e-34b2ee0b9e84","block_type":"box","text":"companies, to the extent application of the Fund’s investment strategy results in the Fund investing in","page_number":135,"box":{"x":116,"y":459,"width":758,"height":12}},{"id":"60480400-9a74-44a3-9796-d85bbad4f7bf","block_type":"box","text":"REIT shares, the percentage of the Fund’s dividend income received from REIT shares will likely","page_number":135,"box":{"x":117,"y":475,"width":722,"height":12}},{"id":"86a19a3c-27c1-405d-b638-4f1cdb03879b","block_type":"box","text":"exceed the percentage of the Fund’s portfolio which is comprised of REIT shares. Ordinary REIT","page_number":135,"box":{"x":116,"y":490,"width":723,"height":12}},{"id":"f5d7fd46-4f7e-4537-b097-64fb200a182e","block_type":"box","text":"dividends received by the Fund and distributed to the Fund’s shareholders will generally be taxable as","page_number":135,"box":{"x":116,"y":506,"width":762,"height":12}},{"id":"41f25ad9-dc2c-49b3-8d7b-e77c4e6b6254","block_type":"box","text":"ordinary income and will not constitute “qualified dividend income.” However, a non-corporate taxpayer","page_number":135,"box":{"x":116,"y":521,"width":768,"height":12}},{"id":"42574aae-237a-40fb-b394-b182faf075c8","block_type":"box","text":"who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for ordinary","page_number":135,"box":{"x":116,"y":537,"width":757,"height":12}},{"id":"ecf0f10c-990e-4af4-b9b0-40d91df1a7ce","block_type":"box","text":"REIT dividends, and a regulated investment company may report dividends as eligible for this","page_number":135,"box":{"x":117,"y":552,"width":698,"height":12}},{"id":"6d25ff74-0beb-4019-9646-bc40571beb70","block_type":"box","text":"deduction to the extent the regulated investment company’s income is derived from ordinary REIT","page_number":135,"box":{"x":116,"y":568,"width":731,"height":12}},{"id":"389edeb5-c61d-4989-951c-658c27c23d44","block_type":"box","text":"dividends (reduced by allocable regulated investment company expenses). A shareholder may treat","page_number":135,"box":{"x":116,"y":583,"width":745,"height":12}},{"id":"708a65bc-23de-4fff-a96b-e6fa689691a2","block_type":"box","text":"the dividends as such provided the regulated investment company and the shareholder satisfy","page_number":135,"box":{"x":116,"y":599,"width":704,"height":12}},{"id":"69c7733b-d517-4632-b61f-bdcf8507e7b2","block_type":"box","text":"applicable holding period requirements.","page_number":135,"box":{"x":116,"y":614,"width":298,"height":12}},{"id":"30054eba-f586-4401-95cb-7a7375a1985e","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may","page_number":135,"box":{"x":117,"y":645,"width":728,"height":12}},{"id":"dd8b306a-676f-4728-a237-8bc58cf96ffe","block_type":"box","text":"cause REIT investors to demand a higher annual yield, which may, in turn, cause a decline in the","page_number":135,"box":{"x":116,"y":661,"width":720,"height":12}},{"id":"9d83a0e7-d49b-49ab-895f-01c45ea09c7c","block_type":"box","text":"market price of the equity securities issued by a REIT. Rising interest rates also generally increase the","page_number":135,"box":{"x":117,"y":676,"width":759,"height":12}},{"id":"11e65bd8-5c3c-4956-8b29-00a51d1d2c7f","block_type":"box","text":"costs of obtaining financing, which could cause the value of a Fund’s REIT investments to decline.","page_number":135,"box":{"x":116,"y":692,"width":728,"height":12}},{"id":"adbe0d46-80ab-4f26-90da-70c43201791d","block_type":"box","text":"During periods when interest rates are declining, mortgages are often refinanced. Refinancing may","page_number":135,"box":{"x":117,"y":707,"width":733,"height":12}},{"id":"9286ec9e-1331-4612-b991-db40ca997f2d","block_type":"box","text":"reduce the yield on investments in mortgage REITs. In addition, since REITs depend on payment","page_number":135,"box":{"x":117,"y":723,"width":721,"height":12}},{"id":"c9da0695-eca9-4faf-afab-edd9c6fe1f3a","block_type":"box","text":"under their mortgage loans and leases to generate cash to make distributions to their shareholders,","page_number":135,"box":{"x":117,"y":738,"width":737,"height":12}},{"id":"544215a5-7158-447e-b61f-e4a101ee7c0e","block_type":"box","text":"investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":135,"box":{"x":117,"y":754,"width":706,"height":12}},{"id":"a69b5358-8ffd-4b39-9519-de254125925d","block_type":"box","text":"Investing in certain REITs, which often have small mark","page_number":135,"box":{"x":117,"y":785,"width":403,"height":12}},{"id":"d2c0bf80-2a9d-4515-a7db-3ab45acd9157","block_type":"box","text":"et capitalizations, may also involve the same risks","page_number":135,"box":{"x":521,"y":785,"width":361,"height":12}},{"id":"33e78f19-0b54-465d-90c4-c806ed3bc567","block_type":"box","text":"as investing in other small capitalization compani","page_number":135,"box":{"x":116,"y":800,"width":354,"height":12}},{"id":"393f6733-2c78-4cb6-ac6d-bdf782283886","block_type":"box","text":"es. REITs may have limited financial resources and their","page_number":135,"box":{"x":472,"y":800,"width":410,"height":12}},{"id":"652ea127-d212-41ad-ae86-677afaed5dba","block_type":"box","text":"securities may trade less frequently and in limited volu","page_number":135,"box":{"x":116,"y":816,"width":393,"height":12}},{"id":"2c7ba720-2904-4c52-860b-7f3b76762c81","block_type":"box","text":"me and may be subject to more abrupt or erratic","page_number":135,"box":{"x":511,"y":816,"width":350,"height":12}},{"id":"6b506291-98ac-4f45-a200-6c71a630f4c6","block_type":"box","text":"price movements than larger company securities. Histo","page_number":135,"box":{"x":117,"y":831,"width":399,"height":12}},{"id":"b6c34cbd-d79f-46e2-bbb7-185acd888c28","block_type":"box","text":"rically, small capitalization stocks, such as REITs,","page_number":135,"box":{"x":518,"y":831,"width":364,"height":12}},{"id":"f4c738d2-6e9f-4183-a335-cbd2c19169c0","block_type":"box","text":"have been more volatile in price than the larger c","page_number":135,"box":{"x":117,"y":847,"width":354,"height":12}},{"id":"005270d1-e9ee-4614-a2f7-aacd48f1ba09","block_type":"box","text":"apitalization stocks such as those included in the S&P","page_number":135,"box":{"x":472,"y":847,"width":396,"height":12}},{"id":"fb7ffa4a-0a04-4ec6-b7e1-114db10d879e","block_type":"box","text":"500 Index. The management of a REIT may be subject to","page_number":135,"box":{"x":116,"y":862,"width":423,"height":12}},{"id":"2d0af45a-3af4-4f99-a197-e7492ff3462b","block_type":"box","text":"conflicts of interest with respect to the","page_number":135,"box":{"x":540,"y":862,"width":278,"height":12}},{"id":"85d3953d-b2c9-46cb-9d3b-3f58bd169955","block_type":"box","text":"operation of the business of the REIT and may be involved","page_number":135,"box":{"x":116,"y":878,"width":432,"height":12}},{"id":"f5f8511f-c702-413c-b81d-fddda82c48b7","block_type":"box","text":"in real estate activities competitive with the","page_number":135,"box":{"x":549,"y":878,"width":314,"height":12}},{"id":"5c30eec8-0e36-4309-975d-b896f6bdbc02","block_type":"box","text":"II-85","page_number":135,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d38c7d08-1b53-48ed-85f1-6b7ced58016c","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":135,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"770f463a-aea3-4fb7-a2a0-3f1926a489b6","block_type":"box","text":"REIT. REITs may own properties through joint ventures","page_number":136,"box":{"x":117,"y":87,"width":407,"height":12}},{"id":"b8cd2bb9-b14c-482f-a745-9b32e60b63be","block_type":"box","text":"or in other circumstances in which the REIT may","page_number":136,"box":{"x":525,"y":87,"width":357,"height":12}},{"id":"d87b7914-f535-497d-8f79-0b784110843b","block_type":"box","text":"not have control over its investments. REITs","page_number":136,"box":{"x":117,"y":103,"width":320,"height":9}},{"id":"508fe79a-9376-428b-8df6-a22d6df2367e","block_type":"box","text":"may incur significant amounts of leverage.","page_number":136,"box":{"x":438,"y":102,"width":316,"height":13}},{"id":"25153b4b-b4d7-4492-976b-5e20e8b7edd9","block_type":"box","text":"Market Risks/Recent Market Events","page_number":136,"box":{"x":116,"y":134,"width":283,"height":9}},{"id":"2ef03ffd-1752-40b3-abad-3d43249478bc","block_type":"box","text":". Securities may decline in value due to factors affecting","page_number":136,"box":{"x":401,"y":134,"width":418,"height":12}},{"id":"66167000-7b18-42f1-ad5d-3313007ff21d","block_type":"box","text":"securities markets generally or particular industries represented in the markets. The value of a security","page_number":136,"box":{"x":116,"y":149,"width":767,"height":12}},{"id":"5a1ae02b-efa0-4960-a5d2-4168fe4966ea","block_type":"box","text":"may decline due to general market conditions, economic trends or events that are not specifically","page_number":136,"box":{"x":117,"y":165,"width":725,"height":12}},{"id":"95b3b497-141a-4a4e-94b9-3e257b095a09","block_type":"box","text":"related to a company or to factors that affect a particular industry or industries, or factors that affect a","page_number":136,"box":{"x":117,"y":180,"width":754,"height":12}},{"id":"aa924915-3d6e-4007-b935-492912237a05","block_type":"box","text":"particular issuer or issuers, exchange, country, group of countries, region, market, industry, group of","page_number":136,"box":{"x":117,"y":196,"width":748,"height":12}},{"id":"fd4f6c75-8c45-4262-a624-8b7043ffb5e1","block_type":"box","text":"industries, sector or asset class. The success of a Fund’s activities could be affected by interest rates,","page_number":136,"box":{"x":117,"y":211,"width":761,"height":12}},{"id":"3b0ed0d2-6cf3-440c-ad11-99adec76ae81","block_type":"box","text":"availability of credit, inflation rates, economic uncertainty, changes in laws, trade barriers, economic","page_number":136,"box":{"x":116,"y":227,"width":744,"height":12}},{"id":"7292e04a-2ef8-400b-be99-36d8748d2b83","block_type":"box","text":"sanctions, currency exchange controls, and local, regional or global events such as war, acts of","page_number":136,"box":{"x":116,"y":242,"width":714,"height":12}},{"id":"5d33e8d0-ad86-4c5e-a2e0-6497edda0cfe","block_type":"box","text":"terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":136,"box":{"x":116,"y":258,"width":744,"height":11}},{"id":"434e079f-d32f-476f-b784-24893d776d26","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments.","page_number":136,"box":{"x":117,"y":273,"width":730,"height":12}},{"id":"653b2f2f-75c4-49cd-8ae3-c91d0e4fe1ef","block_type":"box","text":"During a general economic downturn in the securities markets, multiple asset classes may be","page_number":136,"box":{"x":117,"y":289,"width":698,"height":12}},{"id":"8eb306c5-3af6-4bdb-a560-ffa0c1379373","block_type":"box","text":"negatively affected. These factors may affect the level and volatility of securities prices and the liquidity","page_number":136,"box":{"x":117,"y":304,"width":768,"height":12}},{"id":"17a37d21-ae7c-4100-82fc-8a4377c42e1b","block_type":"box","text":"of a Fund’s investments, which could impair the Fund’s profitability or result in losses. A Fund may","page_number":136,"box":{"x":116,"y":320,"width":734,"height":12}},{"id":"6b475c76-03d8-4597-9dc1-b9350be1b24f","block_type":"box","text":"maintain substantial trading positions that can be adversely affected by the level of volatility in the","page_number":136,"box":{"x":117,"y":335,"width":728,"height":12}},{"id":"f6eec3e2-36cd-4ff1-a080-71b5fed81389","block_type":"box","text":"financial markets; the larger the positions, the greater the potential for loss. Unpredictable or unstable","page_number":136,"box":{"x":116,"y":351,"width":758,"height":12}},{"id":"9c5fe5e8-c083-49e6-aab3-e6b68c50179f","block_type":"box","text":"market conditions may result in reduced opportunities to find suitable investments to deploy capital or","page_number":136,"box":{"x":117,"y":366,"width":756,"height":12}},{"id":"8748a66d-d713-4a0a-b2bf-2b6cdd3697d8","block_type":"box","text":"make it more difficult to exit and realize value","page_number":136,"box":{"x":117,"y":382,"width":339,"height":9}},{"id":"8e4399f7-de8f-4f78-9d76-0066e62a647c","block_type":"box","text":"from a Fund’s existing investments. It is important to","page_number":136,"box":{"x":456,"y":382,"width":394,"height":12}},{"id":"279d567b-b829-4264-b3b8-63e62df87fdd","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions","page_number":136,"box":{"x":117,"y":397,"width":754,"height":12}},{"id":"1ef78bd3-a183-4255-b602-5553c82966d5","block_type":"box","text":"and there can be no assurance that a Fund will not suffer material adverse effects from broad and","page_number":136,"box":{"x":116,"y":413,"width":732,"height":9}},{"id":"c2c05ba4-1aae-4081-aca4-d58fa6b9594a","block_type":"box","text":"rapid changes in market conditions.","page_number":136,"box":{"x":117,"y":428,"width":268,"height":12}},{"id":"d5561aed-5517-4b2d-a7cb-cd460d5e28d0","block_type":"box","text":"Periods of unusually high volatility in the financial","page_number":136,"box":{"x":117,"y":459,"width":359,"height":12}},{"id":"f4fd6006-6a8e-4aba-815e-6b7039c3b2db","block_type":"box","text":"markets and restrictive credit conditions, sometimes","page_number":136,"box":{"x":477,"y":459,"width":381,"height":11}},{"id":"b1ee8bac-e0e4-48e2-a8af-309c956c675e","block_type":"box","text":"limited to a particular sector or a geography, can o","page_number":136,"box":{"x":117,"y":475,"width":364,"height":12}},{"id":"24a40fca-6d9f-43f8-83d0-553e25ac3700","block_type":"box","text":"ccur. Some countries, including the United States,","page_number":136,"box":{"x":482,"y":475,"width":368,"height":12}},{"id":"1e05c4cc-3c22-4437-866c-4c4b25c37e31","block_type":"box","text":"have adopted and/or are considering the adoption of more","page_number":136,"box":{"x":117,"y":490,"width":422,"height":12}},{"id":"d5031a40-4749-4a45-8c6a-611b9ff2bbf0","block_type":"box","text":"protectionist trade policies, a move away from","page_number":136,"box":{"x":539,"y":490,"width":344,"height":12}},{"id":"fc1987b6-2f06-402d-97f7-b6bf823bed40","block_type":"box","text":"the tighter financial industry regulations that follow","page_number":136,"box":{"x":116,"y":506,"width":363,"height":12}},{"id":"3b969ea0-ae44-4461-904d-77b9e7c3d7c0","block_type":"box","text":"ed the financial crisis of","page_number":136,"box":{"x":480,"y":506,"width":174,"height":9}},{"id":"5ca23b78-b302-40f6-8b06-fe42b46d4966","block_type":"box","text":"2008, and/or substantially","page_number":136,"box":{"x":654,"y":506,"width":192,"height":12}},{"id":"03cbb16f-4f98-4eec-b10a-eb250d2927a1","block_type":"box","text":"reducing corporate taxes. The exact shape of these","page_number":136,"box":{"x":117,"y":521,"width":379,"height":12}},{"id":"d477431c-0a46-477e-8184-c613b9bf6407","block_type":"box","text":"policies is still being considered, but the equity and","page_number":136,"box":{"x":497,"y":521,"width":372,"height":12}},{"id":"70b1b72c-9d4d-4787-917d-6fa571ef493f","block_type":"box","text":"debt markets may react strongly to expectations of c","page_number":136,"box":{"x":116,"y":537,"width":381,"height":12}},{"id":"7bef69f5-4a75-4539-8a55-1908a55422a3","block_type":"box","text":"hange, which could increase volatility, especially if","page_number":136,"box":{"x":498,"y":537,"width":367,"height":12}},{"id":"27964799-4111-4bf1-9ea2-53ff200bbe20","block_type":"box","text":"the market’s expectations are not borne out. A rise in","page_number":136,"box":{"x":116,"y":552,"width":384,"height":12}},{"id":"1128f4d2-00a7-4665-8636-868e17846239","block_type":"box","text":"protectionist trade policies, and the possibility of","page_number":136,"box":{"x":501,"y":552,"width":357,"height":12}},{"id":"6f6236da-65c8-4b6d-9d13-c4fb1c57a6bb","block_type":"box","text":"changes to some international trade agreements, coul","page_number":136,"box":{"x":116,"y":568,"width":392,"height":12}},{"id":"a7ea8d8b-6b1a-43cf-b1f1-1118744f0d46","block_type":"box","text":"d affect the economies of many nations in ways","page_number":136,"box":{"x":509,"y":568,"width":350,"height":12}},{"id":"3851ebca-830f-4752-908b-a3af430b1a7c","block_type":"box","text":"that cannot necessarily be foreseen at the present","page_number":136,"box":{"x":116,"y":583,"width":370,"height":12}},{"id":"97899c65-cae4-41e1-b2a0-d084771da2c7","block_type":"box","text":"time. In addition, geopolitical and other risks, including","page_number":136,"box":{"x":486,"y":583,"width":398,"height":12}},{"id":"b378fcc3-96de-40d7-9bee-229bc2c970df","block_type":"box","text":"environmental and public health, may add to instability in world economies and markets generally.","page_number":136,"box":{"x":116,"y":599,"width":716,"height":12}},{"id":"b8e49b90-ad81-43cd-936c-ddd7717f1cb8","block_type":"box","text":"Economies and financial markets throughout the world","page_number":136,"box":{"x":117,"y":614,"width":400,"height":12}},{"id":"ed36ef58-41c6-41bf-a6e4-80def9b36134","block_type":"box","text":"are increasingly interconnected. As a result,","page_number":136,"box":{"x":517,"y":614,"width":323,"height":12}},{"id":"527f4544-e926-4244-8c67-6584f1840cb3","block_type":"box","text":"whether or not a Fund invests in securities of issuers","page_number":136,"box":{"x":116,"y":630,"width":388,"height":9}},{"id":"3719d35b-dc88-4e92-bc3c-a26f24add724","block_type":"box","text":"located in or with significant exposure to countries","page_number":136,"box":{"x":504,"y":630,"width":367,"height":12}},{"id":"69032b32-eee4-4d17-b04d-9f68da04a333","block_type":"box","text":"experiencing economic, political and/or financial di","page_number":136,"box":{"x":116,"y":645,"width":364,"height":12}},{"id":"8a1fb1de-1626-4186-9568-7ee436725de9","block_type":"box","text":"fficulties, the value and liquidity of the Fund’s","page_number":136,"box":{"x":481,"y":645,"width":330,"height":12}},{"id":"f40cb8f5-13e8-4099-aac5-052fb872ac04","block_type":"box","text":"investments may be negatively affected by such events.","page_number":136,"box":{"x":117,"y":661,"width":405,"height":12}},{"id":"a8c049bf-039a-4dcf-8e2f-6dd75c2fdebf","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments","page_number":136,"box":{"x":117,"y":692,"width":757,"height":12}},{"id":"ed894bfb-ae7c-4eb1-a31d-0357fb2ae194","block_type":"box","text":"in which the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future","page_number":136,"box":{"x":117,"y":707,"width":745,"height":12}},{"id":"04dc9519-96fc-4a0f-a168-b56f2d6430e4","block_type":"box","text":"legislation or regulation or other governmental actions could limit or preclude the Fund’s abilities to","page_number":136,"box":{"x":117,"y":723,"width":729,"height":12}},{"id":"f76bffb4-ef09-499b-9856-811be26d5357","block_type":"box","text":"achieve its investment objectives or otherwise adversely impact an investment in the Fund. Recent","page_number":136,"box":{"x":116,"y":738,"width":733,"height":12}},{"id":"aa45b767-feac-4767-bab3-827725ba9460","block_type":"box","text":"policy initiatives undertaken by the U.S. government have the potential to impact international relations,","page_number":136,"box":{"x":117,"y":754,"width":764,"height":12}},{"id":"616d8d04-0f2f-42a0-9044-0a7bad9dcb2a","block_type":"box","text":"trade agreements and the overall regulatory environment in ways that could create uncertainty and","page_number":136,"box":{"x":116,"y":769,"width":732,"height":12}},{"id":"c729a8e5-7d09-4a61-b881-296f4182c1ee","block_type":"box","text":"instability in domestic and global markets, and could adversely affect the investment performance of","page_number":136,"box":{"x":117,"y":785,"width":742,"height":12}},{"id":"61ef1cc9-50b8-420a-951c-c0d1b4bb41d2","block_type":"box","text":"the Fund. In particular, actions taken by the U.S. government in respect of international trade relations","page_number":136,"box":{"x":116,"y":800,"width":757,"height":12}},{"id":"3c5f6392-134f-4f88-bfde-e53a0085bc27","block_type":"box","text":"could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":136,"box":{"x":116,"y":816,"width":734,"height":12}},{"id":"34ffae65-b1c5-43d0-a9dc-0b9ff7857f39","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events","page_number":136,"box":{"x":116,"y":831,"width":744,"height":12}},{"id":"861c4501-a9ac-4c1b-8778-85314d8333a0","block_type":"box","text":"within the United States, including a contentious domestic political environment, changes in political","page_number":136,"box":{"x":116,"y":847,"width":743,"height":12}},{"id":"21463c95-26b8-4c2c-82f3-1ba5a369f7a8","block_type":"box","text":"party control of one or more branches of the U.S. Government, the U.S. Government’s inability at times","page_number":136,"box":{"x":117,"y":862,"width":770,"height":12}},{"id":"3e10614e-d9ad-436d-8203-2c1b45f0a7df","block_type":"box","text":"to agree on a long-term budget and deficit reduction plan, the threat of a U.S. Government shutdown,","page_number":136,"box":{"x":116,"y":878,"width":757,"height":12}},{"id":"3c33b51f-8175-428c-8b2f-f12428b13aa5","block_type":"box","text":"II-86","page_number":136,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"a0796fe4-8840-40f4-bb9a-247d9db0a9c5","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":136,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"ff4faacc-add4-46ac-8000-904a61ed6a01","block_type":"box","text":"and disagreements over, or threats not to increase, the U.S. Government’s borrowing limit (or “debt","page_number":137,"box":{"x":116,"y":87,"width":742,"height":12}},{"id":"aba4b73f-72e7-4eb5-9ada-4857bae0adc7","block_type":"box","text":"ceiling”), as well as political and diplomatic events abroad, may affect investor and consumer","page_number":137,"box":{"x":116,"y":102,"width":694,"height":13}},{"id":"8a0cd1c0-6799-4af0-849b-f25e1e8aa310","block_type":"box","text":"confidence and may adversely impact financial markets and the broader economy, perhaps suddenly","page_number":137,"box":{"x":116,"y":118,"width":756,"height":12}},{"id":"96783887-3020-457c-986a-c2d75d163cb4","block_type":"box","text":"and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or","page_number":137,"box":{"x":116,"y":134,"width":713,"height":12}},{"id":"4904ee0b-0c3d-4994-8456-c21d5794ed2e","block_type":"box","text":"concerns about the U.S. Government’s credit quality in general, could have a substantial negative","page_number":137,"box":{"x":116,"y":149,"width":730,"height":12}},{"id":"6158ffd4-bd25-4fb9-ab0f-b5d8ab71a1a5","block_type":"box","text":"effect on the U.S. and global economies. For example, concerns about the U.S. Government’s credit","page_number":137,"box":{"x":116,"y":165,"width":751,"height":12}},{"id":"644404e9-ba43-4805-acc1-f968110f6a3b","block_type":"box","text":"quality may cause increased volatility in the stock and bond markets, higher interest rates, reduced","page_number":137,"box":{"x":116,"y":180,"width":739,"height":12}},{"id":"d9150e55-77c8-4776-b03e-77f897c8615d","block_type":"box","text":"prices and liquidity of U.S. Treasury securities, and/or increased costs of various kinds of debt.","page_number":137,"box":{"x":117,"y":196,"width":706,"height":12}},{"id":"25430d1a-ba74-4eb2-ad5f-c43ce835872e","block_type":"box","text":"Moreover, although the U.S. Government has honored its credit obligations, there remains a possibility","page_number":137,"box":{"x":117,"y":211,"width":766,"height":12}},{"id":"263266f9-eb74-4715-9842-303bf25d4e3e","block_type":"box","text":"that the United States could default on its obligations. The consequences of such an unprecedented","page_number":137,"box":{"x":116,"y":227,"width":747,"height":12}},{"id":"42d488e0-f7b9-414a-916f-5f27783e3ad0","block_type":"box","text":"event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":137,"box":{"x":116,"y":242,"width":716,"height":12}},{"id":"700ba558-be1f-4e8b-b872-f29aff475346","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the","page_number":137,"box":{"x":116,"y":258,"width":723,"height":12}},{"id":"663aa975-bf02-48bb-bbcb-54ed5e14c16a","block_type":"box","text":"Fund’s investments.","page_number":137,"box":{"x":117,"y":273,"width":153,"height":10}},{"id":"f26bbc47-b30a-413f-bf0a-2df4d8a820d4","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures,","page_number":137,"box":{"x":116,"y":300,"width":761,"height":12}},{"id":"ce36e6fd-6348-43b8-967e-63a1c11d7a1e","block_type":"box","text":"declines in global financial markets, higher default rates, supply chain disruptions, and a substantial","page_number":137,"box":{"x":116,"y":316,"width":743,"height":12}},{"id":"831249ba-5b86-4bc9-a3aa-029b18af63ed","block_type":"box","text":"economic downturn in economies throughout the world. The impact of this coronavirus, and other","page_number":137,"box":{"x":116,"y":331,"width":727,"height":12}},{"id":"cc110b1f-bab3-4dfb-b6f5-d06a522ac67e","block_type":"box","text":"epidemics and pandemics that may arise in the future, could affect the economies of many nations,","page_number":137,"box":{"x":116,"y":347,"width":741,"height":12}},{"id":"89ef7ef9-b23e-4a8c-be76-c805353c5b03","block_type":"box","text":"individual companies and the market in general in ways that cannot necessarily be foreseen at the","page_number":137,"box":{"x":117,"y":362,"width":733,"height":12}},{"id":"c3ef873e-953e-4b43-82d0-4b9b75dff856","block_type":"box","text":"present time. These health crises may be short term or long term, and may exacerbate other pre","page_number":137,"box":{"x":117,"y":378,"width":721,"height":12}},{"id":"61efe9e7-120b-4414-abad-f85e5afc353d","block_type":"box","text":"existing political, social and economic risks, disrupt normal market conditions and operations, and","page_number":137,"box":{"x":116,"y":393,"width":729,"height":12}},{"id":"e3d863f4-019a-4b96-b800-28801442600f","block_type":"box","text":"negatively impact performance. In addition, the impact of infectious diseases in emerging developing or","page_number":137,"box":{"x":117,"y":409,"width":771,"height":12}},{"id":"a79c7634-fe57-4fa8-994d-a069cf2779b7","block_type":"box","text":"emerging market countries may be greater due to less established health care systems.","page_number":137,"box":{"x":116,"y":424,"width":657,"height":12}},{"id":"4f379501-2fd6-49be-842d-dbf405834886","block_type":"box","text":"Legal and Regulatory Risks","page_number":137,"box":{"x":116,"y":451,"width":205,"height":12}},{"id":"0f9ade31-5d8f-4c89-ac33-6916e1521321","block_type":"box","text":". The Manager is part of a larger firm with multiple business lines active in","page_number":137,"box":{"x":323,"y":451,"width":550,"height":12}},{"id":"64a61013-616d-43c1-b889-c47ea70fb482","block_type":"box","text":"multiple jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some","page_number":137,"box":{"x":117,"y":467,"width":753,"height":12}},{"id":"0c447082-4827-44c3-bef7-5704e4813763","block_type":"box","text":"of which are new and evolving. As a result, the Funds and the Manager and its affiliates are subject to","page_number":137,"box":{"x":116,"y":482,"width":761,"height":12}},{"id":"8709bd5c-8362-4634-b68f-1e16d062941e","block_type":"box","text":"extensive and sophisticated legal, tax and regulatory risks, including changing laws and regulations,","page_number":137,"box":{"x":116,"y":498,"width":746,"height":12}},{"id":"b07652c9-35b5-4249-b74a-841c2fc0d475","block_type":"box","text":"developing interpretations of such laws and regulations, as well as existing laws, and increased","page_number":137,"box":{"x":116,"y":513,"width":712,"height":12}},{"id":"2af7ca89-8911-4591-9454-3c4cdcd5f801","block_type":"box","text":"scrutiny by regulators and law enforcement authorities. Unexpected economic, political, regulatory and","page_number":137,"box":{"x":116,"y":529,"width":766,"height":12}},{"id":"a8cc36a8-1e3e-4f69-9751-05c0c26bd6c8","block_type":"box","text":"diplomatic events within the United States and abroad can trigger new and complex regulations that","page_number":137,"box":{"x":116,"y":544,"width":745,"height":12}},{"id":"6174a05a-6bf9-4365-9e40-816410149d23","block_type":"box","text":"the Manager and/or the Funds may need to comply with. The implementation of changes to comply","page_number":137,"box":{"x":116,"y":560,"width":742,"height":12}},{"id":"379c7927-4c8f-4c12-9245-19944c227b97","block_type":"box","text":"with current and/or new regulations applicable to the Funds and/or the Manager could have a material","page_number":137,"box":{"x":116,"y":576,"width":761,"height":11}},{"id":"e50955c0-7f76-4fca-a60c-6ffcd07cc63d","block_type":"box","text":"adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit","page_number":137,"box":{"x":116,"y":591,"width":712,"height":12}},{"id":"c9db0ecd-1c91-431a-8e1a-ec0826cefd8b","block_type":"box","text":"margins, reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":137,"box":{"x":117,"y":606,"width":762,"height":12}},{"id":"1df7be12-ed48-48cf-802b-f2eccd2c39aa","block_type":"box","text":"Tariff and Trade Policy Risks","page_number":137,"box":{"x":118,"y":634,"width":213,"height":12}},{"id":"2ecb5b73-014e-4684-b303-a40fd0827cad","block_type":"box","text":". Some countries, including the U.S., have adopted more protectionist","page_number":137,"box":{"x":332,"y":634,"width":521,"height":12}},{"id":"9f8bf433-0b29-4bfa-9608-0d77b1329d2c","block_type":"box","text":"trade policies. The U.S. government recently altered its approach to international trade policy, resulting","page_number":137,"box":{"x":116,"y":649,"width":768,"height":12}},{"id":"160c2375-b0cd-44a0-afc8-7ef78dcf9e41","block_type":"box","text":"in significant impacts on international trade relations, certain tax and immigration policies, and other","page_number":137,"box":{"x":117,"y":665,"width":738,"height":12}},{"id":"495c2891-52cd-4727-a72f-5d7ac6d12bab","block_type":"box","text":"aspects of the national and international political and financial landscape. The rise in protectionist trade","page_number":137,"box":{"x":116,"y":680,"width":764,"height":12}},{"id":"ee1c0917-8f31-48ea-990d-7cf6c78410cd","block_type":"box","text":"policies, slowing economic growth, changes to some major international trade agreements, risks","page_number":137,"box":{"x":117,"y":696,"width":713,"height":12}},{"id":"a25c81eb-dac2-496b-967a-75b94f1450f2","block_type":"box","text":"associated with trade agreements between the U.S. and the European Union, and the risks associated","page_number":137,"box":{"x":116,"y":711,"width":761,"height":12}},{"id":"d5a2b07e-c976-4290-b0fd-a6d520a76583","block_type":"box","text":"with trade negotiations between the U.S. and China, could affect the economies of many nations in","page_number":137,"box":{"x":116,"y":727,"width":733,"height":12}},{"id":"151beb11-38d4-48c1-831f-39772f57bd7c","block_type":"box","text":"ways that cannot necessarily be foreseen at the present time.","page_number":137,"box":{"x":116,"y":742,"width":456,"height":12}},{"id":"a51721d3-b1b8-4c87-9c5c-51d4476f9da5","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together","page_number":137,"box":{"x":117,"y":769,"width":754,"height":12}},{"id":"9c8b34bf-7a92-4002-99d4-4d8f1178e9d0","block_type":"box","text":"with any future downturns in the global economy resulting therefrom, could adversely affect the","page_number":137,"box":{"x":116,"y":785,"width":705,"height":12}},{"id":"b47c905c-1de1-4b93-9c58-ce3a5813c6ff","block_type":"box","text":"financial performance of a Fund and its investments. Trade policy may be an ongoing source of","page_number":137,"box":{"x":116,"y":800,"width":709,"height":12}},{"id":"14814438-cd10-4ed6-9627-86f0f54119fe","block_type":"box","text":"instability, potentially resulting in significant currency fluctuations and/or having other adverse effects","page_number":137,"box":{"x":117,"y":816,"width":745,"height":12}},{"id":"9bb48b49-2f09-4f79-a05c-b03c82ebf336","block_type":"box","text":"on international markets, international trade agreements, and/or other existing cross-border","page_number":137,"box":{"x":116,"y":831,"width":683,"height":12}},{"id":"3a24f326-2518-4f3f-94f5-3bdc70e17ea1","block_type":"box","text":"cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or otherwise). To the extent","page_number":137,"box":{"x":116,"y":847,"width":771,"height":12}},{"id":"9eb542ea-8f63-4635-8f95-997789a4cc11","block_type":"box","text":"trade disputes escalate globally, there could be additional significant impacts on the sectors or","page_number":137,"box":{"x":116,"y":862,"width":704,"height":12}},{"id":"7bcd7d0f-6979-4a38-a5d8-847ed806efa1","block_type":"box","text":"industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":137,"box":{"x":117,"y":878,"width":709,"height":12}},{"id":"9ffdca7d-855a-4c81-a44a-5f62437f5e1c","block_type":"box","text":"II-87","page_number":137,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"8fdfc5ca-9a66-4466-af2d-2b30126cf8ea","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":137,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"c479f912-e1fb-404b-b398-e09d09646d39","block_type":"box","text":"Geographic Risks","page_number":138,"box":{"x":117,"y":87,"width":131,"height":12}},{"id":"58fb466d-e5e7-4635-b9e8-2a43dba9dc86","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise","page_number":138,"box":{"x":250,"y":87,"width":621,"height":12}},{"id":"70494ff9-6dea-4c37-bc50-fe9ee7d043e5","block_type":"box","text":"connected to, parts of the world affected by natural disasters such as severe heat, earthquakes,","page_number":138,"box":{"x":116,"y":102,"width":717,"height":13}},{"id":"2d145def-e517-4747-b62e-42c035164cb3","block_type":"box","text":"tornadoes, volcanic eruptions, wildfires, droughts, floods, hurricanes or tsunamis, and are economically","page_number":138,"box":{"x":116,"y":118,"width":771,"height":12}},{"id":"4beaa383-4083-4774-89d8-8229b6c9ce91","block_type":"box","text":"sensitive to environmental events. In addition, issuers may be impacted by security concerns with","page_number":138,"box":{"x":116,"y":134,"width":729,"height":12}},{"id":"c192e3b6-0dc5-4453-8677-3233d93b11a7","block_type":"box","text":"respect to a country or region, such as war and other types of conflict, terrorism, strained international","page_number":138,"box":{"x":117,"y":149,"width":760,"height":12}},{"id":"2106655e-9183-4eca-8f23-17e647ba640f","block_type":"box","text":"relations and territorial disputes. Any of these events may adversely affect the issuers, markets and","page_number":138,"box":{"x":117,"y":165,"width":742,"height":12}},{"id":"2d9ecc9c-f63a-4555-8589-9f93944ece8d","block_type":"box","text":"economies to which a Fund is exposed, which may adversely affect the value of the Fund.","page_number":138,"box":{"x":116,"y":180,"width":673,"height":12}},{"id":"6fefd3ce-9c2e-4b89-aec2-efc69a547e8d","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":138,"box":{"x":116,"y":211,"width":275,"height":12}},{"id":"1a114cb5-6d56-4876-9d84-b959d278b96f","block_type":"box","text":"The London Interbank Offered Rate (“LIBOR”) had historically","page_number":138,"box":{"x":393,"y":211,"width":469,"height":12}},{"id":"cc3d9298-db63-4b57-8390-ef288a973b49","block_type":"box","text":"been used extensively in the U.S. and globally as a “benchmark” or “reference rate” for various","page_number":138,"box":{"x":117,"y":227,"width":707,"height":12}},{"id":"6e87a1f1-ca6c-441a-92ad-fc7a89fd3cba","block_type":"box","text":"commercial and financial contracts, including corporate and municipal bonds, bank loans, asset","page_number":138,"box":{"x":116,"y":242,"width":714,"height":12}},{"id":"965a9c00-20e0-4aca-8755-1e30ed76c942","block_type":"box","text":"backed and mortgage-related securities, interest rate swaps and other derivatives. Instruments in","page_number":138,"box":{"x":117,"y":258,"width":726,"height":12}},{"id":"4304d5cc-edcb-4d8f-b00d-967f31dde624","block_type":"box","text":"which a Fund may have historically paid interest at floating rates based on LIBOR or may have been","page_number":138,"box":{"x":116,"y":273,"width":750,"height":12}},{"id":"a2887914-bc3f-4814-b252-9a6df60e6324","block_type":"box","text":"subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a","page_number":138,"box":{"x":116,"y":289,"width":742,"height":12}},{"id":"63448ea1-2b42-4da0-9485-9bee112d3e5b","block_type":"box","text":"Fund invests may have also historically obtained financing at floating rates based on LIBOR. In","page_number":138,"box":{"x":117,"y":304,"width":709,"height":12}},{"id":"c193f2f6-92d8-4c6f-80a6-84b5bec26fcb","block_type":"box","text":"connection with the global transition away from LIBOR led by regulators and market participants as a","page_number":138,"box":{"x":116,"y":320,"width":754,"height":12}},{"id":"25e63426-db18-4b03-a5c1-d40bb80fea5b","block_type":"box","text":"result of benchmark reforms, LIBOR was last published on a representative basis at the end of June","page_number":138,"box":{"x":117,"y":335,"width":748,"height":12}},{"id":"6ac686bc-3520-44ee-ba89-d9d597d2e725","block_type":"box","text":"2023. Alternative reference rates to LIBOR have been established in most major currencies and","page_number":138,"box":{"x":116,"y":351,"width":717,"height":12}},{"id":"cda026cc-adc0-4f9b-83b5-484cc8ebf746","block_type":"box","text":"markets in these alternative rates are continuing to develop (","page_number":138,"box":{"x":117,"y":366,"width":449,"height":12}},{"id":"09c7372c-5901-4a7b-9bdc-e29927fa333d","block_type":"box","text":"e.g.","page_number":138,"box":{"x":568,"y":369,"width":25,"height":9}},{"id":"e40b31a1-4867-4ac7-8c8c-fd9747445ab6","block_type":"box","text":", the Secured Overnight Financing","page_number":138,"box":{"x":596,"y":366,"width":259,"height":12}},{"id":"769be48d-af89-41a2-b9cf-440441e3350f","block_type":"box","text":"Rate (“SOFR”) for USD-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual","page_number":138,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"cb097f76-a2b5-409c-915c-f8ccb0ad7af9","block_type":"box","text":"risks associated with the transition may remain that may impact markets or particular investments and,","page_number":138,"box":{"x":117,"y":397,"width":765,"height":12}},{"id":"ed5e44d8-ed9d-4c38-94a2-ba87b2fe9c81","block_type":"box","text":"as such, the full impact of the transition on the Funds or the financial instruments in which the Funds","page_number":138,"box":{"x":116,"y":413,"width":749,"height":12}},{"id":"f68b1a47-06c6-46a2-b452-fd3cb6aa6e6e","block_type":"box","text":"invest cannot yet be fully determined.","page_number":138,"box":{"x":117,"y":428,"width":281,"height":12}},{"id":"e273f319-ae40-4c3c-8461-c0bf41e22c9c","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of","page_number":138,"box":{"x":116,"y":459,"width":400,"height":10}},{"id":"5d0a01cb-12d7-4e32-9153-e6bd740df1e0","block_type":"box","text":"f borrowing funds overnight in transactions that are","page_number":138,"box":{"x":515,"y":459,"width":370,"height":12}},{"id":"4d9035b5-2a65-42a3-97f0-ad8bc03d34f3","block_type":"box","text":"collateralized by U.S. Treasury securities . SOFR","page_number":138,"box":{"x":116,"y":475,"width":357,"height":12}},{"id":"e02ec0f9-aac5-4d52-bdcb-3ac452f39e65","block_type":"box","text":"R is calculated based on transaction-level repo data","page_number":138,"box":{"x":473,"y":475,"width":370,"height":12}},{"id":"6e18b357-ecf0-4512-a1dc-ef604dc272df","block_type":"box","text":"collected from various sources. For each trading day,","page_number":138,"box":{"x":116,"y":490,"width":391,"height":12}},{"id":"48800bcf-2f9c-43ba-9db1-d875b50d521f","block_type":"box","text":"SOFR is calculated as a volume-weighted median","page_number":138,"box":{"x":508,"y":490,"width":368,"height":12}},{"id":"484b750c-3c4c-4fda-b505-1a8f2bc69016","block_type":"box","text":"rate derived from such data. Because SOFR is a financing rate based on overnight secured funding","page_number":138,"box":{"x":117,"y":506,"width":728,"height":12}},{"id":"0bcba7cb-465b-45ae-84f2-7b198c44b6d2","block_type":"box","text":"transactions, it differs fundamentally from LIBOR.","page_number":138,"box":{"x":116,"y":521,"width":357,"height":12}},{"id":"553003f0-3ded-45a9-86da-a9b38126e9a6","block_type":"box","text":"LIBOR is intended to be an unsecured rate that","page_number":138,"box":{"x":474,"y":521,"width":354,"height":10}},{"id":"d4193acc-adcc-4538-be12-a4c10ea5699c","block_type":"box","text":"represents interbank funding costs for different short-term","page_number":138,"box":{"x":117,"y":537,"width":422,"height":12}},{"id":"16857235-11fd-4bf5-8252-caf286a59162","block_type":"box","text":"maturities or tenors. It is a forward-looking rate","page_number":138,"box":{"x":540,"y":537,"width":343,"height":12}},{"id":"04e688ed-5f3c-4d9c-bd2c-2ad62ac33532","block_type":"box","text":"reflecting expectations regarding interest rates for the applicable tenor. Thus, LIBOR is intended to be","page_number":138,"box":{"x":117,"y":552,"width":742,"height":12}},{"id":"760450aa-35d0-479f-945a-dec9db1aabc4","block_type":"box","text":"sensitive, in certain respects, to bank credit risk and to","page_number":138,"box":{"x":116,"y":568,"width":394,"height":12}},{"id":"9da57fbd-cac8-4b2e-a28f-b1b267152612","block_type":"box","text":"term interest rate risk.","page_number":138,"box":{"x":510,"y":568,"width":169,"height":9}},{"id":"1c22e1b9-eae9-44ae-93dc-dfca5ba997fb","block_type":"box","text":"In contrast, SOFR is a","page_number":138,"box":{"x":680,"y":568,"width":165,"height":11}},{"id":"14dc8a78-c5db-4b1a-9ec8-fab69b814915","block_type":"box","text":"secured overnight rate reflecting the credit of U.S. Tr","page_number":138,"box":{"x":116,"y":583,"width":382,"height":12}},{"id":"d645c02f-c67a-49e9-95e5-7cc9ae98aafe","block_type":"box","text":"easury securities as collateral. Thus, it is largely","page_number":138,"box":{"x":498,"y":583,"width":352,"height":12}},{"id":"931d5ce9-79f7-43fc-9499-59ff6176a183","block_type":"box","text":"insensitive to credit-risk considerations and to short-te","page_number":138,"box":{"x":117,"y":599,"width":390,"height":9}},{"id":"664d9f2a-4f91-4087-8b06-5cfff63d0b10","block_type":"box","text":"rm interest rate risks. SOFR is a transaction-based","page_number":138,"box":{"x":509,"y":599,"width":373,"height":9}},{"id":"f5257800-4591-4ca4-bd0d-ac926ae73956","block_type":"box","text":"rate, and it has been more volatile than other benchmark","page_number":138,"box":{"x":117,"y":614,"width":416,"height":11}},{"id":"41224808-0a98-4222-b8ed-e102b6d3b909","block_type":"box","text":"or market rates, such as three-month LIBOR,","page_number":138,"box":{"x":534,"y":614,"width":333,"height":11}},{"id":"022cae6f-facd-4ff9-b9c4-0ee3af07a81b","block_type":"box","text":"during certain periods. For these reasons, among other","page_number":138,"box":{"x":116,"y":630,"width":402,"height":12}},{"id":"4b0a837c-fd96-4a41-a39f-56536c4af386","block_type":"box","text":"s, there is no assurance that SOFR, or rates","page_number":138,"box":{"x":518,"y":630,"width":326,"height":11}},{"id":"180bd5fd-940b-4f98-abab-26161c7452a2","block_type":"box","text":"derived from SOFR, will perform in the same or simila","page_number":138,"box":{"x":116,"y":645,"width":390,"height":12}},{"id":"ef652fbb-e717-4156-a1b3-948e217682db","block_type":"box","text":"r way as LIBOR would have performed at any time,","page_number":138,"box":{"x":507,"y":645,"width":377,"height":12}},{"id":"9c16d6ab-6b6e-4ae0-a37a-55c97a1727a6","block_type":"box","text":"and there is no assurance that SOFR-based rates will","page_number":138,"box":{"x":116,"y":661,"width":389,"height":9}},{"id":"e0d60e1d-9add-46d1-bbf5-0b4f27210b28","block_type":"box","text":"be a suitable substitute for LIBOR. SOFR has a","page_number":138,"box":{"x":512,"y":661,"width":345,"height":9}},{"id":"3db66d4f-c112-441c-bf66-b1a535c95138","block_type":"box","text":"relatively limited history, having been first published","page_number":138,"box":{"x":117,"y":676,"width":372,"height":12}},{"id":"dd12607c-ef46-404c-aea6-e115ba93a9fc","block_type":"box","text":"in April 2018. The future performance of SOFR, and","page_number":138,"box":{"x":495,"y":676,"width":377,"height":12}},{"id":"fc4e4bc0-6351-4d3a-a00a-26837d36ab3a","block_type":"box","text":"SOFR-based reference rates, cannot be predicted bas","page_number":138,"box":{"x":116,"y":692,"width":396,"height":12}},{"id":"142be7c3-55ff-4adf-9e6a-05ead4f31bf1","block_type":"box","text":"ed on SOFR’s history or otherwise. Levels of","page_number":138,"box":{"x":513,"y":692,"width":326,"height":12}},{"id":"b2264b43-dbe9-4104-bd66-c71e2899b22e","block_type":"box","text":"SOFR in the future may bear little or no relation to hi","page_number":138,"box":{"x":116,"y":707,"width":379,"height":12}},{"id":"bed6da24-e969-4090-a1c3-8fb868f96ae4","block_type":"box","text":"storical levels of SOFR,","page_number":138,"box":{"x":496,"y":707,"width":170,"height":11}},{"id":"b8d40504-2972-473f-a469-a1d2fb345d8b","block_type":"box","text":"LIBOR or other rates. There","page_number":138,"box":{"x":673,"y":707,"width":203,"height":10}},{"id":"92814fdf-4edd-4dd8-84ca-a6dfd40c7673","block_type":"box","text":"can also be no assurance that SOFR will not be discont","page_number":138,"box":{"x":116,"y":723,"width":404,"height":9}},{"id":"a99f0e04-f154-4b22-a419-db2437899048","block_type":"box","text":"inued or fundamentally alter","page_number":138,"box":{"x":521,"y":723,"width":202,"height":12}},{"id":"185f1b86-5793-41f8-95c6-68bcc43a629d","block_type":"box","text":"ed in a manner that is","page_number":138,"box":{"x":724,"y":723,"width":157,"height":9}},{"id":"0f87c60c-7e8d-4ab4-b32d-ba00e201816f","block_type":"box","text":"materially adverse to the interests of the Fund.","page_number":138,"box":{"x":117,"y":738,"width":336,"height":12}},{"id":"cdaceafe-fc42-4721-b135-7d2afb0bdf45","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have","page_number":138,"box":{"x":117,"y":769,"width":763,"height":12}},{"id":"cb3ede92-f357-4c80-99a8-dce06aea8540","block_type":"box","text":"been the subject of ongoing national and international regulatory reform, including under the European","page_number":138,"box":{"x":117,"y":785,"width":759,"height":12}},{"id":"a2b85aab-ad78-4694-b12c-5df3245713bc","block_type":"box","text":"Union (“EU”) regulation on indices used as benchmarks in financial instruments and financial contracts","page_number":138,"box":{"x":117,"y":800,"width":759,"height":12}},{"id":"3f344a7e-652d-4f04-997a-8b3112c4beec","block_type":"box","text":"(known as the “Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United","page_number":138,"box":{"x":117,"y":816,"width":748,"height":12}},{"id":"74df301e-5870-4496-8b36-9fb08e1a708e","block_type":"box","text":"Kingdom (“UK”) law by virtue of the EU (Withdrawal) Act 2018 (as amended), subject to amendments","page_number":138,"box":{"x":117,"y":831,"width":756,"height":12}},{"id":"9eceb3b4-35cc-4eda-bab2-f12b32c8c137","block_type":"box","text":"made by the Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (SI","page_number":138,"box":{"x":117,"y":847,"width":733,"height":12}},{"id":"04374fc2-49d2-4034-9608-20664cc47272","block_type":"box","text":"2019/657) and other statutory instruments. Following the implementation of these reforms, the manner","page_number":138,"box":{"x":116,"y":862,"width":765,"height":12}},{"id":"13952408-2d2e-4287-8aac-c216f0f1d446","block_type":"box","text":"of administration of benchmarks has changed and may further change in the future, with the result that","page_number":138,"box":{"x":116,"y":878,"width":766,"height":12}},{"id":"4f37d72b-94ae-4457-ba44-cbcaf7c41ab2","block_type":"box","text":"II-88","page_number":138,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"601f7bc1-42e8-40a6-9a23-bed71aa9b918","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":138,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"05e93ed3-a808-4b52-ad39-c4ee718d9cd8","block_type":"box","text":"relevant benchmarks may perform differently than in the past, the use of benchmarks that are not","page_number":139,"box":{"x":117,"y":87,"width":726,"height":12}},{"id":"abe4e4da-73e9-4793-a99e-c22d357b1ec2","block_type":"box","text":"compliant with the new standards by certain supervised entities may be restricted, and certain","page_number":139,"box":{"x":116,"y":103,"width":702,"height":12}},{"id":"fd9d9ad0-037e-40a8-97b2-e341ea2b7226","block_type":"box","text":"benchmarks may be eliminated entirely. Such changes could cause increased market volatility and","page_number":139,"box":{"x":117,"y":118,"width":737,"height":12}},{"id":"ab4527f7-a8c0-4e97-9622-dc3bcb09574d","block_type":"box","text":"disruptions in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally,","page_number":139,"box":{"x":116,"y":134,"width":749,"height":12}},{"id":"c1e686d8-497b-4e28-90e5-c53721bb1175","block_type":"box","text":"there could be other consequences which cannot be predicted.","page_number":139,"box":{"x":116,"y":149,"width":472,"height":12}},{"id":"53c71729-05b2-47aa-a93a-aca9d63bb5a7","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":139,"box":{"x":116,"y":179,"width":479,"height":12}},{"id":"d3d2cc8a-5d04-47b7-a85b-02467147ed12","block_type":"box","text":"Under repurchase agreements and","page_number":139,"box":{"x":597,"y":180,"width":264,"height":11}},{"id":"26f83010-dd06-4f89-bc3f-ff7a19a5cc74","block_type":"box","text":"purchase and sale contracts, the other party agrees, upon entering into the contract with a Fund, to","page_number":139,"box":{"x":117,"y":194,"width":740,"height":12}},{"id":"5614c167-7e88-4a16-a273-2b471569eb19","block_type":"box","text":"repurchase a security sold to the Fund at a mutually agreed-upon time and price in a specified","page_number":139,"box":{"x":117,"y":209,"width":703,"height":12}},{"id":"f3356010-2a73-404d-8d54-fa4cf4388093","block_type":"box","text":"currency, thereby determining the yield during the term of the agreement.","page_number":139,"box":{"x":116,"y":224,"width":549,"height":12}},{"id":"0e76f63a-77e1-453a-aba6-4bcfea98d0b6","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements","page_number":139,"box":{"x":116,"y":254,"width":751,"height":12}},{"id":"5393f93f-d730-40a9-beff-39ed8899e9fc","block_type":"box","text":"stipulate that securities are owned by the Fund and the purchaser receives any interest on the security","page_number":139,"box":{"x":116,"y":269,"width":766,"height":12}},{"id":"69d7a8bc-9f9a-40a7-b198-acfbf14f4416","block_type":"box","text":"paid during the period. In the case of repurchase agreements, the prices at which the trades are","page_number":139,"box":{"x":117,"y":284,"width":717,"height":12}},{"id":"ca5011ff-a549-4d16-b824-41e8526f8bc9","block_type":"box","text":"conducted do not reflect accrued interest on the underlying obligation; whereas, in the case of","page_number":139,"box":{"x":116,"y":299,"width":701,"height":12}},{"id":"077ee9fb-eceb-4471-a57a-27563bc17509","block_type":"box","text":"purchase and sale contracts, the prices take into account accrued interest. A Fund may enter into","page_number":139,"box":{"x":117,"y":314,"width":728,"height":12}},{"id":"5fb371f1-e24c-4c1c-a251-e46b33356d30","block_type":"box","text":"“tri-party” repurchase agreements. In “tri-party” repurchase agreements, an unaffiliated third-party","page_number":139,"box":{"x":116,"y":329,"width":729,"height":12}},{"id":"6947146c-2ce4-428c-b4e5-67294ae4c502","block_type":"box","text":"custodian maintains accounts to hold collateral for the Fund and its counterparties and, therefore, the","page_number":139,"box":{"x":116,"y":343,"width":756,"height":12}},{"id":"e53f5e4d-7003-4329-aada-e7f2a3607209","block_type":"box","text":"Fund may be subject to the credit risk of those custodians.","page_number":139,"box":{"x":117,"y":358,"width":438,"height":12}},{"id":"8d307b7e-82e3-4f4e-8376-14f88a2fdef3","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate","page_number":139,"box":{"x":116,"y":389,"width":758,"height":12}},{"id":"3a3ae806-ec25-410d-bccd-4d2881218c4c","block_type":"box","text":"of return insulated from market fluctuations during the term of the agreement, although such return","page_number":139,"box":{"x":116,"y":405,"width":737,"height":12}},{"id":"f6678c1e-4608-4af6-9411-a014e3833906","block_type":"box","text":"may be affected by currency fluctuations. However, in the event of a default under a repurchase","page_number":139,"box":{"x":117,"y":420,"width":716,"height":12}},{"id":"718be650-06d1-4d9b-b68b-58dc846850e3","block_type":"box","text":"agreement or under a purchase and sale contract, instead of the contractual fixed rate, the rate of","page_number":139,"box":{"x":116,"y":436,"width":730,"height":12}},{"id":"c7934fea-329f-4bd1-b7dd-2b32f8a9fa40","block_type":"box","text":"return to the Fund would be dependent upon intervening fluctuations of the market values of the","page_number":139,"box":{"x":117,"y":451,"width":716,"height":12}},{"id":"cc18dee0-2d62-48ba-add8-bb3cc22185f7","block_type":"box","text":"securities underlying the contract and the accrued interest on those securities. In such event, the Fund","page_number":139,"box":{"x":116,"y":467,"width":766,"height":12}},{"id":"76662bde-4840-46ad-8420-92a2902f7409","block_type":"box","text":"would have rights against the seller for breach of contract with respect to any losses arising from","page_number":139,"box":{"x":116,"y":482,"width":721,"height":12}},{"id":"1ef56263-a010-43e8-837b-60e1d1a5d77a","block_type":"box","text":"market fluctuations following the default.","page_number":139,"box":{"x":117,"y":498,"width":303,"height":12}},{"id":"81e9e8d3-b100-4cf5-8a79-b16f683f95ea","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may","page_number":139,"box":{"x":117,"y":529,"width":755,"height":12}},{"id":"2693c4e9-0f12-4e0f-bea6-31797414b6e5","block_type":"box","text":"have longer terms, and may be construed to be collateralized loans by the purchaser to the seller","page_number":139,"box":{"x":117,"y":545,"width":726,"height":11}},{"id":"6ff78cc3-e507-4505-a00a-72e36edfe484","block_type":"box","text":"secured by the securities transferred to the purchaser. In the case of a repurchase agreement, as a","page_number":139,"box":{"x":116,"y":560,"width":743,"height":12}},{"id":"77f6a9fc-268f-4690-8050-1d663c78248a","block_type":"box","text":"purchaser, a Fund’s Manager or sub-adviser will monitor the creditworthiness of the seller, and a Fund","page_number":139,"box":{"x":117,"y":575,"width":764,"height":12}},{"id":"d6fe61dc-c575-4f8e-aa92-83cdca782ecc","block_type":"box","text":"will require the seller to provide additional collateral if the market value of the securities falls below the","page_number":139,"box":{"x":116,"y":591,"width":761,"height":12}},{"id":"48415c34-6e4b-427d-a2dc-6aa291611858","block_type":"box","text":"repurchase price at any time during the term of the repurchase agreement. The Fund does not have","page_number":139,"box":{"x":117,"y":606,"width":747,"height":12}},{"id":"3aaa40dd-6338-465c-a6eb-a3b44cc4cd75","block_type":"box","text":"this right to seek additional collateral as a purchaser in the case of purchase and sale contracts. The","page_number":139,"box":{"x":116,"y":622,"width":750,"height":12}},{"id":"a18c763f-7288-42e2-9892-ec5b2b10406a","block_type":"box","text":"Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities. Securities subject","page_number":139,"box":{"x":117,"y":637,"width":759,"height":12}},{"id":"4906a955-3051-4a6a-8c65-3c9ba15491d6","block_type":"box","text":"to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":139,"box":{"x":116,"y":653,"width":712,"height":12}},{"id":"1b358b1b-95f0-45da-9a9c-64e2f352cb4f","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury","page_number":139,"box":{"x":116,"y":668,"width":725,"height":12}},{"id":"92a03a91-a9ed-4209-b556-dcf4e94435cb","block_type":"box","text":"book-entry system or by another authorized securities depository.","page_number":139,"box":{"x":117,"y":684,"width":485,"height":12}},{"id":"893acbba-5732-4794-a98b-10ae8617f008","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized","page_number":139,"box":{"x":117,"y":715,"width":729,"height":12}},{"id":"c482f918-f77e-4474-912d-057e6bd8624d","block_type":"box","text":"loan, the underlying securities are not owned by the Fund but only constitute collateral for the seller’s","page_number":139,"box":{"x":117,"y":730,"width":748,"height":13}},{"id":"6b525141-44e9-451c-a070-8b334bf921e0","block_type":"box","text":"obligation to pay the repurchase price. Therefore, the Fund may suffer time delays and incur costs or","page_number":139,"box":{"x":116,"y":746,"width":750,"height":12}},{"id":"d5b2db58-2373-4420-9a19-7cd9f3c08ed2","block_type":"box","text":"possible losses in connection with disposition of the collateral. If the seller becomes insolvent and","page_number":139,"box":{"x":117,"y":761,"width":721,"height":12}},{"id":"8578d06c-f2fc-476e-8fda-80f0bbb2e215","block_type":"box","text":"subject to liquidation or reorganization under applicable bankruptcy or other laws, a Fund’s ability to","page_number":139,"box":{"x":116,"y":777,"width":739,"height":12}},{"id":"42ddf3ad-1e61-4451-8a0b-bab8e6de5942","block_type":"box","text":"dispose of the underlying securities may be restricted. Finally, it is possible that a Fund may not be","page_number":139,"box":{"x":116,"y":792,"width":733,"height":13}},{"id":"782f0ee9-fd71-454b-96ee-a34bae4d4690","block_type":"box","text":"able to substantiate its interest in the underlying securities. To minimize this risk, the securities","page_number":139,"box":{"x":116,"y":808,"width":701,"height":12}},{"id":"be5f089e-e717-4308-9749-da19d9016304","block_type":"box","text":"underlying the repurchase agreement will be held by the applicable custodian at all times in an amount","page_number":139,"box":{"x":117,"y":824,"width":761,"height":12}},{"id":"7e8f7061-6f78-490f-b02f-9fa7965bd038","block_type":"box","text":"at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":139,"box":{"x":116,"y":839,"width":744,"height":12}},{"id":"d482eb37-afa3-4628-9086-de10ffc13576","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities","page_number":139,"box":{"x":116,"y":854,"width":748,"height":13}},{"id":"8ce0e023-25af-4550-8dc8-1b96362ebce6","block_type":"box","text":"are less than the repurchase price.","page_number":139,"box":{"x":116,"y":870,"width":264,"height":12}},{"id":"fe99c962-18a4-4381-b89a-30f97c65d0e4","block_type":"box","text":"II-89","page_number":139,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f3c42017-38c0-4bf3-b2ab-ba141b632639","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":139,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"a5582964-57c3-440a-b3a6-974752a7441c","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may","page_number":140,"box":{"x":117,"y":87,"width":747,"height":12}},{"id":"6fbde07b-8fbc-4c75-87c7-2c669f956042","block_type":"box","text":"include cash items and obligations issued by the U.S. Government or its agencies or instrumentalities.","page_number":140,"box":{"x":117,"y":102,"width":762,"height":13}},{"id":"00b4cfd9-a458-4711-8c9e-1bd8f5e39ba4","block_type":"box","text":"For certain Funds, however, collateral may include instruments other than cash items and obligations","page_number":140,"box":{"x":117,"y":118,"width":755,"height":12}},{"id":"e5909817-79ce-4111-b1dd-27664957a731","block_type":"box","text":"issued by the U.S. Government or its agencies or instrumentalities, including securities that the Fund","page_number":140,"box":{"x":117,"y":134,"width":752,"height":12}},{"id":"a05f2bde-a12d-49d2-8fd3-f37da5523196","block_type":"box","text":"could not hold directly under its investment strategies without the repurchase obligation.","page_number":140,"box":{"x":116,"y":149,"width":657,"height":12}},{"id":"1cdf68d8-4608-4897-9606-6c1e25ae972f","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower","page_number":140,"box":{"x":116,"y":180,"width":770,"height":12}},{"id":"aac334d5-7750-42c0-98ad-bc9ab3a65482","block_type":"box","text":"quality collateral and collateral with longer maturities may be subject to greater price fluctuations than","page_number":140,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"52b73552-5d55-4e11-bd29-27ff3145434d","block_type":"box","text":"higher quality collateral and collateral with shorter maturities. If the repurchase agreement counterparty","page_number":140,"box":{"x":117,"y":211,"width":769,"height":12}},{"id":"8cf7c43e-e64d-4e0d-aa07-d72ff2415f15","block_type":"box","text":"were to default, lower quality collateral may be more difficult to liquidate than higher quality collateral.","page_number":140,"box":{"x":116,"y":227,"width":755,"height":12}},{"id":"5056faaa-eceb-4531-86bf-ac17d19716de","block_type":"box","text":"Should the counterparty default and the amount of collateral not be sufficient to cover the","page_number":140,"box":{"x":116,"y":242,"width":666,"height":12}},{"id":"2fea5fa0-e591-4c97-b1b9-f8ef33eb3be0","block_type":"box","text":"counterparty’s repurchase obligation, a Fund would retain the status of an unsecured creditor of the","page_number":140,"box":{"x":116,"y":258,"width":744,"height":12}},{"id":"2e7bcd1e-28db-4798-ad5e-1427f4fc21b3","block_type":"box","text":"counterparty (","page_number":140,"box":{"x":116,"y":273,"width":103,"height":12}},{"id":"ce4c3e9b-add4-452c-9d97-b54405253716","block_type":"box","text":"i.e.","page_number":140,"box":{"x":220,"y":273,"width":20,"height":10}},{"id":"fef9dbae-731c-4ff6-b20a-0bc098c62438","block_type":"box","text":", the position the Fund would normally be in if it were to hold, pursuant to its","page_number":140,"box":{"x":244,"y":273,"width":565,"height":12}},{"id":"697e6b22-37ba-4195-a968-27e23e55b068","block_type":"box","text":"investment policies, other unsecured debt securities of the defaulting counterparty) with respect to the","page_number":140,"box":{"x":117,"y":289,"width":760,"height":12}},{"id":"7644e5f8-7675-45e7-9983-4798841b2670","block_type":"box","text":"amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the","page_number":140,"box":{"x":116,"y":304,"width":752,"height":12}},{"id":"6c7913dc-6ceb-435f-8f36-0f8818a7b050","block_type":"box","text":"principal and income involved in the transaction.","page_number":140,"box":{"x":117,"y":320,"width":361,"height":12}},{"id":"84cb573f-8dea-4210-90de-07c54aa3c582","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":140,"box":{"x":117,"y":351,"width":761,"height":12}},{"id":"0860c91c-9e56-47fe-9773-7bb8111e86df","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many repurchase agreements","page_number":140,"box":{"x":116,"y":366,"width":771,"height":12}},{"id":"5d34b4b6-8653-4663-b5c8-6aea25622802","block_type":"box","text":"and purchase and sale contracts, terms that delay or restrict the rights of counterparties, such as a","page_number":140,"box":{"x":116,"y":382,"width":738,"height":12}},{"id":"e9f87d41-c4f9-4f75-8536-972723b25ebd","block_type":"box","text":"Fund, to terminate such agreements, take foreclosure action, exercise other default rights or restrict","page_number":140,"box":{"x":117,"y":397,"width":744,"height":12}},{"id":"0adeec5c-8ee2-4408-a6ce-405860e44790","block_type":"box","text":"transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain","page_number":140,"box":{"x":116,"y":413,"width":748,"height":12}},{"id":"d5ab7c60-a2ed-4499-8fd3-ceacfd5d3aba","block_type":"box","text":"types of resolution or insolvency proceedings. It is possible that these new requirements, as well as","page_number":140,"box":{"x":116,"y":428,"width":743,"height":12}},{"id":"a853e85d-7dd0-4b71-aa2a-bfaadf68d8d4","block_type":"box","text":"potential additional government regulation and other developments in the market, could adversely","page_number":140,"box":{"x":117,"y":444,"width":729,"height":12}},{"id":"9834ba94-b658-4c51-8f96-73a3d4169674","block_type":"box","text":"affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale contracts or","page_number":140,"box":{"x":116,"y":459,"width":768,"height":12}},{"id":"9e27c524-5ea5-4ced-8dde-1b45e9b86ae0","block_type":"box","text":"to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":140,"box":{"x":116,"y":475,"width":747,"height":12}},{"id":"12fa1eda-5930-46bd-8a92-e8792b7d4d2e","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally","page_number":140,"box":{"x":117,"y":490,"width":770,"height":12}},{"id":"e2bdc6a4-db4b-4eed-8379-e8c831bea420","block_type":"box","text":"cleared. Compliance with these rules is expected to be required by the middle of 2027. Although the","page_number":140,"box":{"x":116,"y":506,"width":747,"height":12}},{"id":"98c421df-9924-4a47-8272-73a7808b4d09","block_type":"box","text":"impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":140,"box":{"x":117,"y":521,"width":770,"height":12}},{"id":"bdc32375-c8be-4a04-877c-51c2f525c23d","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":140,"box":{"x":116,"y":537,"width":563,"height":12}},{"id":"adc1fb5c-cc00-40d6-9b98-206f2003317a","block_type":"box","text":"Restricted Securities.","page_number":140,"box":{"x":116,"y":568,"width":177,"height":9}},{"id":"2b34ff38-a025-4c68-9b00-527e69fc47ef","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the","page_number":140,"box":{"x":293,"y":568,"width":539,"height":12}},{"id":"9d19b92b-858f-4cf5-b544-eb4127c3008a","block_type":"box","text":"Securities Act (“restricted securities”), which may include securities in private companies and","page_number":140,"box":{"x":116,"y":583,"width":694,"height":12}},{"id":"6b42123b-4ac7-42dc-b874-41856ef752b4","block_type":"box","text":"Rule 144A Securities. Restricted securities may be sold in private placement transactions between","page_number":140,"box":{"x":117,"y":599,"width":736,"height":12}},{"id":"ac372414-c315-475d-a115-86b1a8455fba","block_type":"box","text":"issuers and their purchasers, including through private negotiated transactions between the issuer and","page_number":140,"box":{"x":117,"y":614,"width":765,"height":12}},{"id":"c575f8c9-266c-4d17-8f15-e96dd569f070","block_type":"box","text":"their purchasers, such as the Funds, and may be neither listed on an exchange nor traded in other","page_number":140,"box":{"x":116,"y":630,"width":736,"height":12}},{"id":"082907e8-cc0c-4616-be0c-b0e923936ddb","block_type":"box","text":"established markets. In many cases, privately placed securities may not be freely transferable under","page_number":140,"box":{"x":116,"y":645,"width":749,"height":12}},{"id":"4f454122-b5ca-45c5-a6cb-edfc0567e36d","block_type":"box","text":"the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of these","page_number":140,"box":{"x":116,"y":661,"width":708,"height":12}},{"id":"ba5718a7-4f65-4d7d-b200-c5c562a0198d","block_type":"box","text":"securities are new and complex, and trade only among institutions; the markets for these securities are","page_number":140,"box":{"x":116,"y":676,"width":764,"height":12}},{"id":"afc03d8d-7772-44e3-8ccb-17bb26511a36","block_type":"box","text":"still developing and may not function as efficiently as established markets. Typically, investments in","page_number":140,"box":{"x":116,"y":692,"width":736,"height":12}},{"id":"c4bb746b-7368-460d-b570-2872692ce786","block_type":"box","text":"private companies are in restricted securities that are not traded in public markets and subject to","page_number":140,"box":{"x":117,"y":707,"width":714,"height":12}},{"id":"88c0618c-4641-44b8-8335-3090161512d4","block_type":"box","text":"substantial holding periods, so that a Fund may not be able to resell some of its holdings for extended","page_number":140,"box":{"x":116,"y":723,"width":755,"height":12}},{"id":"525b85fb-ee32-402e-a263-5c01849617bb","block_type":"box","text":"periods, which may be several years. There can be no assurance that a Fund will be able to realize the","page_number":140,"box":{"x":117,"y":738,"width":763,"height":12}},{"id":"7f173db8-3983-4144-a60b-aae26b98df48","block_type":"box","text":"value of such restricted securities in a timely manner or at all. As a result of the absence of a public","page_number":140,"box":{"x":116,"y":754,"width":736,"height":12}},{"id":"cb01f287-5115-4d47-8df9-2249c64b0287","block_type":"box","text":"trading market and the potential bespoke nature on certain transactions, restricted securities may be","page_number":140,"box":{"x":116,"y":769,"width":745,"height":12}},{"id":"67abe3f6-6fb2-4683-88bf-5d418b9e201a","block_type":"box","text":"deemed to be illiquid investments or less liquid investments and may be more difficult to value than","page_number":140,"box":{"x":116,"y":785,"width":734,"height":12}},{"id":"3d266ab8-0156-48ac-b1dd-26aba524f1cb","block_type":"box","text":"publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":140,"box":{"x":117,"y":800,"width":751,"height":12}},{"id":"ba77cad6-d4c6-4f1a-bc5c-1e63106faec5","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those","page_number":140,"box":{"x":116,"y":816,"width":708,"height":12}},{"id":"e0422dd4-78d4-4422-be21-b9949d25f63e","block_type":"box","text":"originally paid by the Fund or less than their fair market value. The amount of any discount may vary","page_number":140,"box":{"x":116,"y":831,"width":749,"height":12}},{"id":"a5822d70-cddb-4215-91d3-ac4e00714cc0","block_type":"box","text":"depending on the security type, the character of the issuer, which party (if any) will bear the expenses","page_number":140,"box":{"x":116,"y":847,"width":760,"height":12}},{"id":"75146c95-ca38-49f5-9567-fba39e0a81f1","block_type":"box","text":"of registering the restricted security, and prevailing market conditions. In addition, issuers whose","page_number":140,"box":{"x":116,"y":862,"width":720,"height":12}},{"id":"876b1829-31c3-4fb3-9c46-2f37f6dce787","block_type":"box","text":"securities are not publicly traded or who are not otherwise publicly listed may not be subject to the","page_number":140,"box":{"x":116,"y":878,"width":732,"height":12}},{"id":"d979ae5f-78a0-450f-8741-f0b93077b6e2","block_type":"box","text":"II-90","page_number":140,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"0f23938f-92b2-4ee4-89c7-4904aa381709","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":140,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"334f5c57-1762-4399-a715-5ae4dc2dfe33","block_type":"box","text":"disclosure and other investor protection requirements that may be applicable if their securities were","page_number":141,"box":{"x":116,"y":87,"width":742,"height":12}},{"id":"d5dfe28d-095f-4947-b43e-0ee3e7cd4204","block_type":"box","text":"publicly traded. If any privately placed securities held by a Fund are required to be registered under the","page_number":141,"box":{"x":117,"y":102,"width":769,"height":13}},{"id":"3a653ee3-ffce-4258-876f-ab8aa3f80cf7","block_type":"box","text":"securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the","page_number":141,"box":{"x":116,"y":118,"width":757,"height":12}},{"id":"4fca87c2-e090-4765-b74b-84776f9c99a6","block_type":"box","text":"expenses of registration. Where registration is required for restricted securities, a considerable time","page_number":141,"box":{"x":116,"y":134,"width":743,"height":12}},{"id":"9bd0546a-0284-4529-b532-ca82732dda6b","block_type":"box","text":"period may elapse between the time the Fund decides to sell the security and the time it is actually","page_number":141,"box":{"x":117,"y":149,"width":736,"height":12}},{"id":"8f7ce87b-61e4-4aa9-8b49-135b1c68f55c","block_type":"box","text":"permitted to sell the security under an effective registration statement. If during such period, adverse","page_number":141,"box":{"x":117,"y":165,"width":749,"height":12}},{"id":"431bf1aa-08f0-41d5-add8-8762f464952a","block_type":"box","text":"market conditions were to develop, the Fund might obtain less favorable pricing terms than when it","page_number":141,"box":{"x":117,"y":180,"width":736,"height":12}},{"id":"9cf2df9f-2515-4d68-8d43-360da7fd0ac4","block_type":"box","text":"decided to sell the security. In addition, the Fund may be deemed to be an “underwriter” for purposes","page_number":141,"box":{"x":116,"y":196,"width":755,"height":12}},{"id":"1ff56081-a982-44da-9cdb-d74447f051b5","block_type":"box","text":"of the Securities Act when selling restricted securities. If so, the Fund may be liable to purchasers of","page_number":141,"box":{"x":116,"y":211,"width":747,"height":12}},{"id":"ac822813-5660-4721-b659-6c080b0d9218","block_type":"box","text":"the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":141,"box":{"x":116,"y":227,"width":722,"height":12}},{"id":"7b39b30b-a4f9-465a-8b28-fac14450da75","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other","page_number":141,"box":{"x":117,"y":242,"width":769,"height":12}},{"id":"008ec7c0-47b4-4bc1-9f3e-35963ba44800","block_type":"box","text":"transaction costs that are higher than those for transactions in unrestricted securities. Certain of the","page_number":141,"box":{"x":116,"y":258,"width":744,"height":12}},{"id":"ec9602e4-0ea7-4658-aab5-b7a155d5ca10","block_type":"box","text":"Fund’s investments in private placements may consist of direct investments and may include","page_number":141,"box":{"x":117,"y":273,"width":692,"height":12}},{"id":"854d7d84-85ea-4122-b075-9682b3f1f5a7","block_type":"box","text":"investments in smaller, less seasoned issuers, which may involve greater risks. Issuers of restricted","page_number":141,"box":{"x":117,"y":289,"width":744,"height":12}},{"id":"78d0691f-654d-4d94-b8c2-4c76f923bb61","block_type":"box","text":"securities may not be subject to SEC reporting requirements, may not be required to maintain their","page_number":141,"box":{"x":116,"y":304,"width":737,"height":12}},{"id":"7cc45aed-cff8-457a-9a1c-07f34e51ebbc","block_type":"box","text":"accounting records in accordance with generally accepted accounting principles, and may not be","page_number":141,"box":{"x":116,"y":320,"width":724,"height":12}},{"id":"f5d3799d-4cbc-4cf8-a81a-3faf7d5b3e85","block_type":"box","text":"required to maintain effective internal controls over financial reporting. As a result, BlackRock may not","page_number":141,"box":{"x":117,"y":335,"width":760,"height":12}},{"id":"d4445671-f271-40f7-bc8f-c3dde974ef40","block_type":"box","text":"have timely or accurate information about the business, financial condition and results of operations of","page_number":141,"box":{"x":117,"y":351,"width":762,"height":12}},{"id":"7539b81b-8cf6-4c6c-bda7-dde756b25c7d","block_type":"box","text":"such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":141,"box":{"x":116,"y":366,"width":764,"height":12}},{"id":"e82e0e1f-252c-400d-8276-23a9b0f11bb3","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited","page_number":141,"box":{"x":116,"y":382,"width":729,"height":12}},{"id":"86b13d1e-7ff1-44b5-a7c5-2e6b5024e42b","block_type":"box","text":"product lines, markets or financial resources, or they may be dependent on a limited management","page_number":141,"box":{"x":117,"y":397,"width":731,"height":12}},{"id":"e74da191-3059-4e16-8bd9-aad508e6a59d","block_type":"box","text":"group.","page_number":141,"box":{"x":116,"y":415,"width":52,"height":10}},{"id":"d917bb29-0743-446d-a758-b6948dd6d844","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":141,"box":{"x":117,"y":444,"width":740,"height":12}},{"id":"4fc39622-8e6c-4337-84d3-a88aecc0f19a","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced","page_number":141,"box":{"x":117,"y":459,"width":687,"height":12}},{"id":"c6f90263-288d-4014-86d1-fe7bc2442004","block_type":"box","text":"proportionately as the Fund’s net assets grow from new or additional investments made in the Fund by","page_number":141,"box":{"x":117,"y":475,"width":766,"height":12}},{"id":"fe3ece0d-a867-4c87-a898-411937de60d2","block_type":"box","text":"other shareholders. The issuer of a private placement may later register those shares for public sale in","page_number":141,"box":{"x":116,"y":490,"width":765,"height":12}},{"id":"5285aac2-40ac-4661-9c26-06329753692c","block_type":"box","text":"an IPO, but there is no guarantee that an IPO will ever be completed. Even after an IPO, there may be","page_number":141,"box":{"x":116,"y":506,"width":766,"height":12}},{"id":"e9f6276c-41cb-4fd4-aaf9-cc22f7f70ba2","block_type":"box","text":"a limited trading market for securities of that issuer, including any direct investment by a Fund, or the","page_number":141,"box":{"x":116,"y":521,"width":752,"height":12}},{"id":"937009af-972c-43c3-ba9c-9526fc12a5f2","block_type":"box","text":"Fund may be subject to contractual limitations on its ability to resell its existing securities following an","page_number":141,"box":{"x":117,"y":537,"width":754,"height":12}},{"id":"c5df2c01-5ade-4746-846e-f68954d05f6c","block_type":"box","text":"IPO. The inability of an applicable issuer of a restricted security to complete an IPO or offer other","page_number":141,"box":{"x":117,"y":552,"width":723,"height":12}},{"id":"f72fa454-61de-4735-93f5-9b69f9d4ec5a","block_type":"box","text":"liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":141,"box":{"x":117,"y":568,"width":708,"height":12}},{"id":"056b214a-6fd3-4962-ab26-ef9bd9448dd1","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making","page_number":141,"box":{"x":117,"y":583,"width":756,"height":12}},{"id":"78ff07e2-e9fd-4dbf-a3f5-13f5026899aa","block_type":"box","text":"investments in such securities, a Fund may obtain access to material nonpublic information, which may","page_number":141,"box":{"x":117,"y":599,"width":770,"height":12}},{"id":"caf131ce-be07-4328-a913-55f9ad3ed538","block_type":"box","text":"restrict the Fund’s ability to conduct portfolio transactions in such securities. The activity of identifying,","page_number":141,"box":{"x":117,"y":614,"width":759,"height":12}},{"id":"007a6131-b660-478f-8479-e13cc556a141","block_type":"box","text":"completing, and realizing upon attractive investments in restricted securities is highly competitive and","page_number":141,"box":{"x":116,"y":630,"width":756,"height":12}},{"id":"4607015f-54cc-45ec-9ebf-07502c0ff3dc","block_type":"box","text":"involves a high degree of uncertainty. A Fund will be competing for investments against other similarly","page_number":141,"box":{"x":117,"y":645,"width":761,"height":12}},{"id":"7fcb18f4-c12e-469e-a6d7-9fc5ed5fb185","block_type":"box","text":"situated investors. It is possible that competition for appropriate investment opportunities may increase,","page_number":141,"box":{"x":116,"y":661,"width":766,"height":12}},{"id":"0e818e48-acaa-4c78-8133-b180590e0d19","block_type":"box","text":"thus potentially reducing the number of investment opportunities available to a Fund and adversely","page_number":141,"box":{"x":116,"y":676,"width":733,"height":12}},{"id":"8845a687-94aa-4184-9bc4-7c7c2ab32f98","block_type":"box","text":"affecting the terms upon which investments can be made. There is no assurance that investment","page_number":141,"box":{"x":116,"y":692,"width":719,"height":12}},{"id":"0a852262-e2ba-402c-85f4-977bf54069d0","block_type":"box","text":"opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":141,"box":{"x":116,"y":707,"width":759,"height":12}},{"id":"4bf5c19a-c826-42fe-bf41-1ba09dad027e","block_type":"box","text":"especially as that Fund grows in size.","page_number":141,"box":{"x":116,"y":723,"width":277,"height":12}},{"id":"6bf9b93f-1696-4e59-8c88-569d0bbc2df0","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular,","page_number":141,"box":{"x":116,"y":754,"width":716,"height":12}},{"id":"32a20a73-b3e9-424a-8f50-b12579cafe9a","block_type":"box","text":"restricted securities issued by private companies) and thus they may be considered “illiquid”. Each","page_number":141,"box":{"x":117,"y":769,"width":728,"height":12}},{"id":"92988347-17f2-41e7-8564-7794af2daf81","block_type":"box","text":"Fund values restricted securities in accordance with BlackRock’s valuation policies and procedures,","page_number":141,"box":{"x":117,"y":785,"width":738,"height":12}},{"id":"6adbf3ea-589b-45af-bd5d-93cdf91e7207","block_type":"box","text":"which are designed to value investments such that they accurately reflect fair value. Due to the","page_number":141,"box":{"x":116,"y":800,"width":704,"height":12}},{"id":"6958ad62-7da7-454b-8ce9-2a9793dddb2e","block_type":"box","text":"inherent uncertainty and subjectivity of determining the fair value of investments that do not have a","page_number":141,"box":{"x":117,"y":816,"width":731,"height":12}},{"id":"ec21f626-1999-491a-a3ac-1eb5abdaa7b4","block_type":"box","text":"readily available market value, the fair value of a Fund’s private investments may differ significantly","page_number":141,"box":{"x":117,"y":831,"width":739,"height":12}},{"id":"a9d66e56-9a29-4b65-8840-60442779d11a","block_type":"box","text":"from the values that would have been used had a readily available market value existed for such","page_number":141,"box":{"x":116,"y":847,"width":721,"height":12}},{"id":"f210a544-909f-43dc-a997-bee2828f5e45","block_type":"box","text":"investments and may differ materially from the amounts the Fund may realize on any dispositions of","page_number":141,"box":{"x":117,"y":862,"width":745,"height":12}},{"id":"18795e9f-dbe0-4838-b67a-0b3dfc4e09fa","block_type":"box","text":"such investments. Differences in the value of the Fund’s private investments could result in the Fund’s","page_number":141,"box":{"x":116,"y":878,"width":763,"height":12}},{"id":"fa961b81-0096-477f-8ede-28191c2217c6","block_type":"box","text":"II-91","page_number":141,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"7f3ccb5f-02bd-4fc5-b18a-6d077e6b6a8b","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":141,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"4a9b5544-fa05-44c6-b91a-fafb56bab0ad","block_type":"box","text":"shareholder transactions being effected at a NAV that does not accurately reflect the underlying value","page_number":142,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"7f44ad41-37e5-4feb-a0b4-07ed94275586","block_type":"box","text":"of the Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing","page_number":142,"box":{"x":116,"y":102,"width":718,"height":13}},{"id":"9559c4d0-ef78-46d6-a91d-df854edebf0e","block_type":"box","text":"opportunities for shareholder arbitrage. The values used by the Fund to price its restricted securities","page_number":142,"box":{"x":116,"y":118,"width":747,"height":12}},{"id":"bb3acf62-f2a5-4c43-8d32-d9c03e24d254","block_type":"box","text":"may also differ from those used by other investment companies and investors to price the same","page_number":142,"box":{"x":117,"y":134,"width":715,"height":12}},{"id":"940d1efc-687f-4b6c-b804-2c4d9db71604","block_type":"box","text":"restricted securities. In addition, the impact of changes in the market environment and other events on","page_number":142,"box":{"x":117,"y":149,"width":763,"height":12}},{"id":"f1b45d08-c848-4e11-bb64-e469e5bbf6d7","block_type":"box","text":"the fair values of a Fund’s investments that have no readily available market values may differ from the","page_number":142,"box":{"x":116,"y":165,"width":769,"height":12}},{"id":"8946daa2-668a-4a9e-980c-94d79d2ecd1c","block_type":"box","text":"impact of such changes on the readily available market values for the Fund’s other investments. A","page_number":142,"box":{"x":117,"y":180,"width":732,"height":12}},{"id":"2fbe5cbd-2878-4b3b-bd65-c6af6322829b","block_type":"box","text":"Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair value of the","page_number":142,"box":{"x":117,"y":196,"width":738,"height":12}},{"id":"06c5e7f0-7509-4533-8548-535fb8be4deb","block_type":"box","text":"Fund’s investments were materially higher than the investment’s actual market or fair value or the","page_number":142,"box":{"x":117,"y":211,"width":728,"height":12}},{"id":"76162f9b-c1eb-48a6-a95b-bf4149a2d803","block_type":"box","text":"values that the Fund ultimately realizes upon the disposal of such investments.","page_number":142,"box":{"x":116,"y":227,"width":590,"height":12}},{"id":"8778fcae-9b0a-45be-a5fe-036e7533e26e","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":142,"box":{"x":116,"y":258,"width":400,"height":11}},{"id":"2ea3c429-f23c-4e93-9c05-fa24d4da1ea9","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":142,"box":{"x":116,"y":289,"width":271,"height":12}},{"id":"c4b09936-7521-462d-9e10-6b9a9d63f2df","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the","page_number":142,"box":{"x":389,"y":289,"width":481,"height":12}},{"id":"de3cff85-3d30-42c8-aac9-28f0c1b03bfe","block_type":"box","text":"same parties with whom it may enter into repurchase agreements. Under a reverse repurchase","page_number":142,"box":{"x":116,"y":304,"width":711,"height":12}},{"id":"730cc0c7-1399-4097-b85f-f2501b9bc765","block_type":"box","text":"agreement, a Fund sells securities to another party and agrees to repurchase them at a particular date","page_number":142,"box":{"x":116,"y":320,"width":766,"height":12}},{"id":"61b969f2-2dbb-4aa3-845d-77c87ede3b1f","block_type":"box","text":"and price. A Fund may enter into a reverse repurchase agreement when it is anticipated that the","page_number":142,"box":{"x":116,"y":335,"width":719,"height":12}},{"id":"21fe93aa-c035-4fc2-ac34-1089ea08eb24","block_type":"box","text":"interest income to be earned from the investment of the proceeds of the transaction is greater than the","page_number":142,"box":{"x":117,"y":351,"width":765,"height":12}},{"id":"00bcb96e-8298-4a60-a898-75f4a1f9edd2","block_type":"box","text":"interest expense of the transaction.","page_number":142,"box":{"x":117,"y":366,"width":265,"height":12}},{"id":"cd29e0e7-6805-4f0d-b83e-f1c7b7537156","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":142,"box":{"x":116,"y":397,"width":772,"height":12}},{"id":"7449106f-32e6-4bc6-a020-a02b92ae257d","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the","page_number":142,"box":{"x":117,"y":413,"width":771,"height":12}},{"id":"377c813b-bf7a-4d66-ae52-8411155e56d2","block_type":"box","text":"investment of the proceeds will be less than the interest expense, (ii) the market value of the securities","page_number":142,"box":{"x":117,"y":428,"width":765,"height":12}},{"id":"700eecf0-b070-4623-a6f8-232364466e3a","block_type":"box","text":"retained in lieu of sale by a Fund may decline below","page_number":142,"box":{"x":117,"y":444,"width":390,"height":12}},{"id":"3cc621ad-e7fd-4045-8ae5-b10802b62fd7","block_type":"box","text":"the price of the securities the Fund has sold but is","page_number":142,"box":{"x":507,"y":444,"width":375,"height":12}},{"id":"5427bb43-0cdd-4ddf-add8-ddae7d90d05a","block_type":"box","text":"obligated to repurchase, (iii) the market value of the securities sold will decline below the price at which","page_number":142,"box":{"x":116,"y":459,"width":770,"height":12}},{"id":"c04d81c4-4b3e-45dc-bf8a-6f4edec0febe","block_type":"box","text":"the Fund is required to repurchase them and (iv) the securities will not be returned to the Fund.","page_number":142,"box":{"x":116,"y":475,"width":710,"height":12}},{"id":"a522ff87-5bec-4e35-9d58-02d50907397c","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or","page_number":142,"box":{"x":117,"y":506,"width":731,"height":12}},{"id":"91bba73c-13fd-4437-a090-373be8daa5fc","block_type":"box","text":"becomes insolvent, such buyer or its trustee or receiver may receive an extension of time to determine","page_number":142,"box":{"x":117,"y":521,"width":765,"height":12}},{"id":"2b0e78f3-2601-459b-83ab-fcb1cad1d4c4","block_type":"box","text":"whether to enforce a Fund’s obligations to repurchase the securities and the Fund’s use of the","page_number":142,"box":{"x":116,"y":537,"width":704,"height":12}},{"id":"6f915b0e-8548-4961-8f40-3e6bc9bf6c1a","block_type":"box","text":"proceeds of the reverse repurchase agreement may effectively be restricted pending such decision.","page_number":142,"box":{"x":117,"y":552,"width":744,"height":12}},{"id":"7b1e37cd-de1c-4883-b009-7e5dcc3c9177","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase","page_number":142,"box":{"x":117,"y":583,"width":710,"height":12}},{"id":"4689c4cc-86fc-4bee-b4e3-0eb8f07097d6","block_type":"box","text":"agreements and similar financing transactions (e.g., recourse and non-recourse tender option bonds,","page_number":142,"box":{"x":116,"y":599,"width":755,"height":12}},{"id":"bb7e64d9-3cdb-42f3-88d9-fd3586702158","block_type":"box","text":"borrowed bonds) notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":142,"box":{"x":117,"y":614,"width":767,"height":12}},{"id":"c59a57c5-2b0e-41b3-9d8e-b7a806948a9a","block_type":"box","text":"Investment Company Act, provided that the Fund either (i) complies with the 300% asset coverage","page_number":142,"box":{"x":117,"y":630,"width":736,"height":12}},{"id":"d895ab40-0ee3-4508-8947-ea94153ddc5e","block_type":"box","text":"ratio with respect to all such transactions and any other borrowings in the aggregate, or (ii) treats all","page_number":142,"box":{"x":117,"y":645,"width":744,"height":12}},{"id":"a48cc187-a8f4-4c27-b471-89e54bc8eb1a","block_type":"box","text":"such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives—Regulation of","page_number":142,"box":{"x":116,"y":661,"width":738,"height":12}},{"id":"fe67221a-561c-4ef2-accd-0e8dc6f3d87c","block_type":"box","text":"Derivatives—Rule 18f-4 under the Investment Company Act” above. The SEC has also finalized rules","page_number":142,"box":{"x":117,"y":676,"width":753,"height":12}},{"id":"baf753ac-1385-494b-a7a2-9cb9c840d4fe","block_type":"box","text":"that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":142,"box":{"x":116,"y":692,"width":680,"height":12}},{"id":"87a6fc26-2c3d-4bf0-a458-f9d4a0ead989","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the","page_number":142,"box":{"x":116,"y":707,"width":731,"height":12}},{"id":"46139d78-4ffb-4602-8cda-0bc8d71700ce","block_type":"box","text":"middle of 2027. Although the impact of these rules on the Funds is difficult to predict, they may reduce","page_number":142,"box":{"x":117,"y":723,"width":757,"height":12}},{"id":"8faa514b-2ab5-4142-a592-a64e0f8c8a89","block_type":"box","text":"the availability or increase the costs of such transactions and may adversely affect a Fund’s","page_number":142,"box":{"x":116,"y":738,"width":680,"height":12}},{"id":"9f16da8f-5bcc-4eec-8efb-0e60976f0383","block_type":"box","text":"performance.","page_number":142,"box":{"x":117,"y":754,"width":96,"height":12}},{"id":"2cf3dabf-4a27-4b02-90e9-adda921afae5","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated","page_number":142,"box":{"x":116,"y":785,"width":701,"height":12}},{"id":"fe1335a3-a2a6-4241-bea7-71ca27be788b","block_type":"box","text":"counterparties and certain of their affiliates to include in certain financial contracts, including many","page_number":142,"box":{"x":116,"y":800,"width":727,"height":12}},{"id":"70d1602d-5f7c-4ab8-9ad9-338477ae29cd","block_type":"box","text":"reverse repurchase agreements, terms that delay or restrict the rights of counterparties, such as a","page_number":142,"box":{"x":117,"y":816,"width":727,"height":12}},{"id":"9c835d74-5d04-4be1-b7cd-f9851e18589c","block_type":"box","text":"Fund, to terminate such agreements, take foreclosure action, exercise other default rights or restrict","page_number":142,"box":{"x":117,"y":831,"width":744,"height":12}},{"id":"f8d1627a-20d3-4bfb-8984-4a7d9759160b","block_type":"box","text":"transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain","page_number":142,"box":{"x":116,"y":847,"width":748,"height":12}},{"id":"341a3271-4b57-4dd8-8533-51a940504d09","block_type":"box","text":"types of resolution or insolvency proceedings. It is possible that these requirements, as well as","page_number":142,"box":{"x":116,"y":862,"width":707,"height":12}},{"id":"8625f049-0eb9-4117-a48c-44737aa4db2a","block_type":"box","text":"potential additional government regulation and other developments in the market, could adversely","page_number":142,"box":{"x":117,"y":878,"width":729,"height":12}},{"id":"df5f34b2-b8c3-42b8-9614-6fab38315d2d","block_type":"box","text":"II-92","page_number":142,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"57266908-4f7b-4add-be4d-f00d5d7beeb0","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":142,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"a5375e2e-6049-420d-b4a4-50ecd7d504e3","block_type":"box","text":"affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize amounts to be","page_number":143,"box":{"x":116,"y":87,"width":765,"height":12}},{"id":"f3b27295-1188-4c4f-9c5e-6b4d69ba88bf","block_type":"box","text":"received under such agreements.","page_number":143,"box":{"x":117,"y":103,"width":253,"height":12}},{"id":"75167a11-9c47-4c5a-8994-876276ceb161","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":143,"box":{"x":116,"y":134,"width":349,"height":12}},{"id":"0c541a61-0c79-4b76-9a44-f458a2f75b98","block_type":"box","text":"Certain Funds may participate in rights offerings and","page_number":143,"box":{"x":466,"y":134,"width":399,"height":12}},{"id":"9827bf9f-2b3f-45b4-b7ac-ee0a8428a166","block_type":"box","text":"may purchase warrants, which are privileges issued by corporations enabling the owners to subscribe","page_number":143,"box":{"x":117,"y":149,"width":759,"height":12}},{"id":"fbcbe23d-f05e-454f-8bf7-1ba8738abeba","block_type":"box","text":"to and purchase a specified number of shares of the corporation at a specified price during a specified","page_number":143,"box":{"x":116,"y":165,"width":763,"height":12}},{"id":"57c7a90e-6971-41dc-94a1-93c8f053a2ee","block_type":"box","text":"period of time. Subscription rights normally have a short life span to expiration. The purchase of rights","page_number":143,"box":{"x":117,"y":180,"width":759,"height":12}},{"id":"6b8d4184-a802-4a2c-bfaf-b6a1c3ddc678","block_type":"box","text":"or warrants involves the risk that a Fund could lose the purchase value of a right or warrant if the right","page_number":143,"box":{"x":116,"y":196,"width":760,"height":12}},{"id":"fc33d90d-76ef-4d48-b48c-fbb2cdb1d660","block_type":"box","text":"to subscribe to additional shares is not exercised prior to the rights’ and warrants’ expiration. Also, the","page_number":143,"box":{"x":116,"y":211,"width":760,"height":12}},{"id":"6a56287f-83a4-4c3f-b25f-9e07196daff0","block_type":"box","text":"purchase of rights and/or warrants involves the risk that the effective price paid for the right and/or","page_number":143,"box":{"x":117,"y":227,"width":732,"height":12}},{"id":"c9bfc9e7-64f3-447d-b713-38b47d47d245","block_type":"box","text":"warrant added to the subscription price of the related security may exceed the value of the subscribed","page_number":143,"box":{"x":116,"y":242,"width":762,"height":12}},{"id":"2986f15b-d5a3-4ece-a59d-74a916fc93b3","block_type":"box","text":"security’s market price such as when there is no movement in the level of the underlying security.","page_number":143,"box":{"x":116,"y":258,"width":728,"height":12}},{"id":"be54032c-74a3-4e9a-8149-2e7b04b1ceae","block_type":"box","text":"Buying a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder","page_number":143,"box":{"x":117,"y":273,"width":747,"height":12}},{"id":"61b8382d-c55d-4906-b387-089755d95eb5","block_type":"box","text":"has no voting or dividend rights with respect to the underlying stock. A warrant does not carry any right","page_number":143,"box":{"x":117,"y":289,"width":766,"height":12}},{"id":"4aaf22fc-6df9-4c82-a950-cd4feb1db53f","block_type":"box","text":"to assets of the issuer, and for this reason investments in warrants may be more speculative than other","page_number":143,"box":{"x":116,"y":304,"width":771,"height":12}},{"id":"a5083d03-10b0-4ae0-b320-f7bd742343f8","block_type":"box","text":"equity-based investments.","page_number":143,"box":{"x":116,"y":320,"width":200,"height":12}},{"id":"caf5fca7-b485-45d0-b129-4c0d9fd667c8","block_type":"box","text":"Rule 144A Securities.","page_number":143,"box":{"x":116,"y":351,"width":170,"height":9}},{"id":"7aaf4a33-10d6-4009-b259-9a73344eec86","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":143,"box":{"x":287,"y":351,"width":590,"height":12}},{"id":"bad6b8d6-4fb2-43e6-a369-40c9b0e7381b","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":143,"box":{"x":117,"y":366,"width":769,"height":12}},{"id":"790fd0ea-fd5a-4d21-8094-c04f069b68db","block_type":"box","text":"Securities Lending.","page_number":143,"box":{"x":117,"y":397,"width":153,"height":12}},{"id":"3864c28c-e582-460b-8c57-1a17b04ab190","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock","page_number":143,"box":{"x":271,"y":397,"width":575,"height":12}},{"id":"e736f3b8-b098-4c39-8e65-ba047c8f131c","block_type":"box","text":"determines to be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide","page_number":143,"box":{"x":116,"y":413,"width":744,"height":12}},{"id":"18308683-7117-4876-8db0-b925cab85e12","block_type":"box","text":"collateral that is maintained in an amount at least","page_number":143,"box":{"x":116,"y":428,"width":369,"height":10}},{"id":"7b6d0298-4adc-4d77-866b-f6413c5247f1","block_type":"box","text":"equal to the current market value of the securities","page_number":143,"box":{"x":486,"y":428,"width":373,"height":12}},{"id":"8271dbf7-ed26-4afe-9fd1-d7afa5bd075c","block_type":"box","text":"loaned. No securities loan shall be made on behalf of a Fund if, as a result, the aggregate value of all","page_number":143,"box":{"x":117,"y":444,"width":755,"height":12}},{"id":"c2e76d52-fc75-49e7-9f8a-a602f60a206c","block_type":"box","text":"securities loans of the particular Fund exceeds one-third of the value of such Fund’s total assets","page_number":143,"box":{"x":116,"y":459,"width":718,"height":12}},{"id":"94148e4e-d820-46ec-9d9a-c124ed9ce17a","block_type":"box","text":"(including the value of the collateral received). A Fund may terminate a loan at any time and obtain the","page_number":143,"box":{"x":117,"y":475,"width":765,"height":12}},{"id":"6aa80a0c-91a5-4e92-8059-811b81df4256","block_type":"box","text":"return of the securities loaned. Each Fund receives, by way of substitute payment, the value of any","page_number":143,"box":{"x":117,"y":490,"width":738,"height":12}},{"id":"afaa1bd5-cd91-4c6b-a755-c88c48f74fe7","block_type":"box","text":"interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise","page_number":143,"box":{"x":117,"y":506,"width":738,"height":12}},{"id":"eb21c070-c770-4433-8c05-78717ab4d961","block_type":"box","text":"received if the securities were not on loan.","page_number":143,"box":{"x":117,"y":521,"width":318,"height":10}},{"id":"f6d09eb9-fb1c-4e6a-9148-b416643285bf","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee","page_number":143,"box":{"x":116,"y":552,"width":732,"height":12}},{"id":"4566b8a2-b91e-4517-8ff0-59a88b5fbfae","block_type":"box","text":"based on the amount of cash collateral. The Funds are compensated by any positive difference","page_number":143,"box":{"x":117,"y":568,"width":712,"height":12}},{"id":"6db13fc0-d434-4d55-b3b6-1dcf8eefa6a3","block_type":"box","text":"between the amount earned on the reinvestment of cash collateral and the fee paid to the borrower. In","page_number":143,"box":{"x":117,"y":583,"width":763,"height":12}},{"id":"3a7752ae-98d3-4f0c-b0c2-97ca8cae3bc8","block_type":"box","text":"the case of collateral other than cash, a Fund is compensated by a fee paid by the borrower equal to a","page_number":143,"box":{"x":116,"y":599,"width":765,"height":12}},{"id":"7dd92008-b75f-4266-a355-9330a7c91cb7","block_type":"box","text":"percentage of the market value of the loaned securities. Any cash collateral received by the Fund for","page_number":143,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"2a5e88f0-b66e-40d7-bd15-4cb352152f86","block_type":"box","text":"such loans, and uninvested cash, may be reinvested in certain short-term instruments either directly on","page_number":143,"box":{"x":116,"y":630,"width":770,"height":12}},{"id":"19edb8ea-8347-4c6b-bf2b-aaf6ec690923","block_type":"box","text":"behalf of the Fund or through one or more joint accounts or money market funds, including those","page_number":143,"box":{"x":117,"y":645,"width":722,"height":12}},{"id":"e41ece1a-cb0f-4b5f-89a4-c6e61dd41abf","block_type":"box","text":"affiliated with BlackRock; such investments are subject to investment risk.","page_number":143,"box":{"x":116,"y":661,"width":546,"height":12}},{"id":"080cba23-3aa2-45a3-9bf4-971933049ad2","block_type":"box","text":"Securities lending involves exposure to","page_number":143,"box":{"x":116,"y":692,"width":284,"height":12}},{"id":"94d79d7f-687a-48f9-a0df-b005013d66cf","block_type":"box","text":"certain risks, including operational risk (","page_number":143,"box":{"x":405,"y":692,"width":286,"height":12}},{"id":"fba41110-614c-4c91-a022-d0aa2b2a271a","block_type":"box","text":"i.e.","page_number":143,"box":{"x":692,"y":692,"width":20,"height":9}},{"id":"947f1850-578c-4dc9-b76c-eac54470deda","block_type":"box","text":", the risk of losses","page_number":143,"box":{"x":715,"y":692,"width":130,"height":11}},{"id":"cce2de7f-ac11-4c29-a817-2a17d31e760b","block_type":"box","text":"resulting from problems in the settlement and accounting process), “gap” risk (","page_number":143,"box":{"x":117,"y":707,"width":567,"height":12}},{"id":"db8944f9-a4c0-49cb-9b4c-9f092a2dceb3","block_type":"box","text":"i.e.","page_number":143,"box":{"x":685,"y":707,"width":20,"height":10}},{"id":"16f17379-0f38-494d-814e-f185ad934ef3","block_type":"box","text":", the risk of a mismatch","page_number":143,"box":{"x":708,"y":707,"width":167,"height":11}},{"id":"4ea73ed4-6eaa-4b30-a359-d1c2a503bd2c","block_type":"box","text":"between the return on cash collateral reinvestments and the fees each Fund has agreed to pay a","page_number":143,"box":{"x":117,"y":723,"width":703,"height":12}},{"id":"c1b175fa-4a04-48de-b24f-426b73a96c92","block_type":"box","text":"borrower), foreign exchange risk (","page_number":143,"box":{"x":117,"y":738,"width":244,"height":12}},{"id":"b66b704f-c5c6-4537-a350-1323420e858e","block_type":"box","text":"i.e.","page_number":143,"box":{"x":362,"y":738,"width":20,"height":10}},{"id":"6660bc65-1bda-4cf3-9f36-3863d97c0d6b","block_type":"box","text":", the risk of a shortfall at default when a cash collateral investment is","page_number":143,"box":{"x":385,"y":738,"width":494,"height":11}},{"id":"85d09997-f68a-4836-a984-40486e84818d","block_type":"box","text":"denominated in a currency other than the currency","page_number":143,"box":{"x":116,"y":754,"width":368,"height":12}},{"id":"9f003d59-efde-41ed-acbf-c48bababa83e","block_type":"box","text":"of the assets being loaned due to movements in","page_number":143,"box":{"x":489,"y":754,"width":348,"height":12}},{"id":"cdf71c88-7991-4628-b0c0-5ab0d6876aaa","block_type":"box","text":"foreign exchange rates), and credit, legal, counterparty","page_number":143,"box":{"x":116,"y":769,"width":398,"height":12}},{"id":"b2087a38-2eec-43ec-add9-5a7acac80e49","block_type":"box","text":"and market risks (including the risk that market","page_number":143,"box":{"x":519,"y":769,"width":340,"height":12}},{"id":"39a61518-cf7a-4451-9e37-cb35eb050bfc","block_type":"box","text":"events, including but not limited to corporate actions,","page_number":143,"box":{"x":116,"y":785,"width":381,"height":12}},{"id":"a75f2f8a-990f-4552-97f7-db7fe04f6ba5","block_type":"box","text":"could lead a Fund to lend securities that are trading","page_number":143,"box":{"x":504,"y":785,"width":372,"height":12}},{"id":"e55d6831-e287-4f38-9ec7-e8daa64f9279","block_type":"box","text":"at a premium due to increased demand, or to recall loaned","page_number":143,"box":{"x":116,"y":800,"width":425,"height":12}},{"id":"edfe1853-0657-4b3b-97c0-1d47f0e10c77","block_type":"box","text":"securities or to lend less or not at all, which","page_number":143,"box":{"x":547,"y":800,"width":312,"height":11}},{"id":"c107302b-c3e7-4393-a97b-eeb3219a8be8","block_type":"box","text":"could lead to reduced securities lending revenue). If a Fund","page_number":143,"box":{"x":116,"y":816,"width":431,"height":12}},{"id":"f6809094-c5ca-4f08-9891-07acc980c5a2","block_type":"box","text":"were to lend out securities that are subject to","page_number":143,"box":{"x":553,"y":816,"width":326,"height":12}},{"id":"cf162314-4213-46ee-aa1b-ecceffc983b5","block_type":"box","text":"a corporate action and commit to the borrower a","page_number":143,"box":{"x":116,"y":831,"width":355,"height":12}},{"id":"f1436e85-5788-44bd-903e-7d146f8323bf","block_type":"box","text":"particular election as determined by the Fund’s","page_number":143,"box":{"x":472,"y":831,"width":345,"height":12}},{"id":"c837c995-af05-42ba-be30-491ffe6745a2","block_type":"box","text":"investment adviser, the benefit the Fund would receive","page_number":143,"box":{"x":117,"y":847,"width":401,"height":11}},{"id":"87e41a41-91ef-403e-acce-808b77dc29cb","block_type":"box","text":"in respect of committing to such election may or","page_number":143,"box":{"x":519,"y":847,"width":352,"height":12}},{"id":"c11ab867-5014-4866-8675-48532a6ecd17","block_type":"box","text":"may not be less than the benefit the Fund would have received from making a different election in such","page_number":143,"box":{"x":117,"y":862,"width":752,"height":12}},{"id":"077c1ec8-4668-4755-8993-96591d18ddcd","block_type":"box","text":"corporate action. If a securities lending counterparty","page_number":143,"box":{"x":116,"y":878,"width":377,"height":12}},{"id":"b016d371-7438-43b6-8abd-72baadaba653","block_type":"box","text":"y were to default, a Fund would be subject to the risk","page_number":143,"box":{"x":493,"y":878,"width":381,"height":12}},{"id":"581db83f-32c2-4722-9953-e7496b080c2a","block_type":"box","text":"II-93","page_number":143,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"9782e17d-ad07-47d3-837a-ebf40b635b42","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":143,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"55b3c91a-9021-4528-9703-eb67b153452e","block_type":"box","text":"of a possible delay in receiving collateral or in re","page_number":144,"box":{"x":116,"y":87,"width":349,"height":12}},{"id":"574c476d-be39-45ac-9ae8-aff432ece4cb","block_type":"box","text":"covering the loaned securities, or to a possible loss of","page_number":144,"box":{"x":466,"y":87,"width":394,"height":12}},{"id":"1f580d49-2d36-4f61-aff5-bb818e65f6d8","block_type":"box","text":"rights in the collateral. In the event a borrower does","page_number":144,"box":{"x":117,"y":103,"width":372,"height":12}},{"id":"094a76ec-7c7e-4794-8022-568be3c3da92","block_type":"box","text":"not return a Fund’s securities as agreed, the Fund’s","page_number":144,"box":{"x":489,"y":103,"width":386,"height":12}},{"id":"a86846d9-ce65-40cf-938b-5b6ea9470b8d","block_type":"box","text":"ability to participate in a corporate action event ma","page_number":144,"box":{"x":116,"y":118,"width":366,"height":12}},{"id":"a052267f-9d57-420e-8338-ec9c429bee8b","block_type":"box","text":"y be impacted, or the Fund may experience losses if","page_number":144,"box":{"x":482,"y":118,"width":386,"height":12}},{"id":"f88151fc-816f-4017-a52c-f75ee4e9983c","block_type":"box","text":"the proceeds received from liquidating the collateral do","page_number":144,"box":{"x":116,"y":134,"width":403,"height":12}},{"id":"019546a1-46b9-4901-a3cd-6d88b8e4b9ca","block_type":"box","text":"not at least equal the value of the loaned security","page_number":144,"box":{"x":520,"y":134,"width":361,"height":12}},{"id":"06284142-b3b4-492a-aa01-2bd6a958bccc","block_type":"box","text":"at the time the collateral is liquidated, plus the t","page_number":144,"box":{"x":116,"y":149,"width":337,"height":12}},{"id":"6a14bd13-e211-4ed7-bf3c-156d23c4952a","block_type":"box","text":"transaction costs incurred in purchasing replacement","page_number":144,"box":{"x":453,"y":149,"width":389,"height":12}},{"id":"45fc2ff2-7724-4e95-b0f0-5c05791cf2d7","block_type":"box","text":"securities. This latter event could trigger adverse tax consequences for a Fund. A Fund could lose money","page_number":144,"box":{"x":116,"y":165,"width":770,"height":12}},{"id":"5fde1226-3a80-4f11-ba06-5d2a25e2399d","block_type":"box","text":"if its short-term investment of the collateral declines","page_number":144,"box":{"x":117,"y":180,"width":377,"height":10}},{"id":"23211c0c-3f8a-4eca-af24-8a4d123f65b9","block_type":"box","text":"in value over the period of the loan. Substitute","page_number":144,"box":{"x":495,"y":180,"width":338,"height":12}},{"id":"a475818e-c7b5-4bc6-9ad8-4b9f30f6ce6a","block_type":"box","text":"payments received by a Fund representing dividends","page_number":144,"box":{"x":117,"y":196,"width":390,"height":12}},{"id":"04bc48f6-09a5-483c-a3a4-bf42dd0c2a2f","block_type":"box","text":"paid on securities loaned out by the Fund will not","page_number":144,"box":{"x":508,"y":196,"width":359,"height":12}},{"id":"35f069df-106c-42ae-853d-fb8c53288aaa","block_type":"box","text":"be considered qualified dividend income, and distributions by the Fund of such substitute payments will","page_number":144,"box":{"x":117,"y":211,"width":752,"height":12}},{"id":"a058f864-ecf1-4f51-b5b9-e799cd694947","block_type":"box","text":"not constitute qualified dividend income. Additi","page_number":144,"box":{"x":117,"y":227,"width":335,"height":11}},{"id":"04680853-ba6d-410f-afcc-f0714e0ffaca","block_type":"box","text":"onally, substitute payments received by a Fund","page_number":144,"box":{"x":453,"y":227,"width":347,"height":12}},{"id":"f8069a18-dc17-42b3-ad36-9fae883c3a98","block_type":"box","text":"representing qualified REIT dividends paid on REI","page_number":144,"box":{"x":117,"y":242,"width":361,"height":12}},{"id":"ec5437e2-bb41-4202-bebc-3e76343f6cb9","block_type":"box","text":"T securities loaned out by the Fund will not be","page_number":144,"box":{"x":480,"y":242,"width":339,"height":12}},{"id":"efad7388-5dbc-46b0-8095-456762af37eb","block_type":"box","text":"considered qualified REIT dividends, and distributions","page_number":144,"box":{"x":116,"y":258,"width":395,"height":11}},{"id":"eab54377-2279-4fbd-bfcd-c395fad9376f","block_type":"box","text":"by the Fund of such substitute payments will not","page_number":144,"box":{"x":512,"y":258,"width":354,"height":12}},{"id":"a5ff8301-7099-4494-8fa8-9edad900fb67","block_type":"box","text":"be eligible for a 20% deduction currently availabl","page_number":144,"box":{"x":117,"y":273,"width":350,"height":12}},{"id":"d6682a2c-791d-4d94-928c-d69ebcc85522","block_type":"box","text":"e for ordinary REIT dividends paid to non-corporate","page_number":144,"box":{"x":469,"y":273,"width":378,"height":12}},{"id":"bd12288e-39ca-4abd-a683-85f219b16000","block_type":"box","text":"shareholders provided certain other requirements are sa","page_number":144,"box":{"x":116,"y":289,"width":409,"height":12}},{"id":"13932bd8-eed2-4307-98fe-ae39ca9e0d5a","block_type":"box","text":"tisfied. The securities lending agent will take into","page_number":144,"box":{"x":526,"y":289,"width":356,"height":12}},{"id":"659cfb09-99ea-4b11-be30-d12e3fedc4e8","block_type":"box","text":"account the tax effects on shareholders caused by","page_number":144,"box":{"x":116,"y":304,"width":367,"height":12}},{"id":"50f39a00-4053-48a6-8a68-c07560639ade","block_type":"box","text":"y these differences in connection with a Fund’s","page_number":144,"box":{"x":483,"y":304,"width":337,"height":10}},{"id":"36db3915-6289-4651-a5c4-2447896ace73","block_type":"box","text":"securities lending program. Substitute payments re","page_number":144,"box":{"x":116,"y":320,"width":370,"height":12}},{"id":"96e849e1-c0f8-4c91-b4b0-70c089f72b86","block_type":"box","text":"ceived on tax-exempt securities loaned out will not be","page_number":144,"box":{"x":487,"y":320,"width":393,"height":12}},{"id":"5daafbdf-5b57-46d2-b9f1-9ebbc5874df3","block_type":"box","text":"tax-exempt income. There could also be changes in","page_number":144,"box":{"x":116,"y":335,"width":376,"height":12}},{"id":"056a5734-f117-48b0-ac02-f45d5062ddce","block_type":"box","text":"the status of issuers under applicable laws and","page_number":144,"box":{"x":493,"y":335,"width":350,"height":12}},{"id":"2596b4a0-d79e-47aa-aa51-d525f39ef210","block_type":"box","text":"regulations, including tax regulations, that may impact t","page_number":144,"box":{"x":117,"y":351,"width":395,"height":12}},{"id":"c301f7c1-3b56-486e-9cc1-8bddd5e0ce8b","block_type":"box","text":"the regulatory or tax treatment of loaned securities","page_number":144,"box":{"x":512,"y":351,"width":371,"height":12}},{"id":"9b4974c8-41db-4490-a867-3c859d39fba0","block_type":"box","text":"and could, for example, result in a delay in t","page_number":144,"box":{"x":116,"y":366,"width":317,"height":12}},{"id":"58f86a0b-3966-4c70-958f-9cb00e6e6752","block_type":"box","text":"he payment of dividend equivalent payments owed to a Fund","page_number":144,"box":{"x":434,"y":366,"width":448,"height":12}},{"id":"66026613-c14e-48f4-b293-12d3be3f755c","block_type":"box","text":"(as permitted by applicable law).","page_number":144,"box":{"x":117,"y":382,"width":239,"height":12}},{"id":"92c0470d-bc4b-44be-86c8-e034392fa65b","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":144,"box":{"x":117,"y":413,"width":761,"height":12}},{"id":"3f2c5ca9-a820-41fd-a193-aa51208e9f61","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many securities lending","page_number":144,"box":{"x":116,"y":428,"width":723,"height":12}},{"id":"d1e16830-5b88-4a20-ac30-98c8ea87c5b6","block_type":"box","text":"agreements, terms that delay or restrict the rights of counterparties, such as the Fund, to terminate","page_number":144,"box":{"x":116,"y":444,"width":739,"height":12}},{"id":"18275d5a-fa4a-4af5-8cde-d4816393c810","block_type":"box","text":"such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":144,"box":{"x":116,"y":459,"width":751,"height":12}},{"id":"8c9afb13-0631-4542-a5c7-9cfd9ffe5a97","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution","page_number":144,"box":{"x":116,"y":475,"width":754,"height":12}},{"id":"226c5c08-4b48-4ff3-b507-ce1831fa9cec","block_type":"box","text":"or insolvency proceedings. It is possible that these requirements, as well as potential additional","page_number":144,"box":{"x":116,"y":490,"width":711,"height":12}},{"id":"42c1f03e-de90-470d-a603-92d6a788cd99","block_type":"box","text":"government regulation and other developments in the market, could adversely affect the Fund’s ability","page_number":144,"box":{"x":116,"y":506,"width":762,"height":12}},{"id":"5bc908ae-6cf3-48ec-8f4a-71adc4054e22","block_type":"box","text":"to terminate existing securities lending agreements or to realize amounts to be received under such","page_number":144,"box":{"x":116,"y":521,"width":744,"height":12}},{"id":"ad8d21f9-d07a-4d5b-aa14-e5809ea9c680","block_type":"box","text":"agreements. Prudential regulation may also favor lenders that can provide additional protections, such","page_number":144,"box":{"x":116,"y":537,"width":764,"height":12}},{"id":"9ec583bb-8870-449e-ac75-700a36e1b599","block_type":"box","text":"as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to","page_number":144,"box":{"x":116,"y":552,"width":763,"height":12}},{"id":"86d1eea7-91e5-4c66-b50b-805eed42700b","block_type":"box","text":"provide additional protections to borrowers, where permitted pursuant to a Fund’s investment policies","page_number":144,"box":{"x":117,"y":568,"width":756,"height":12}},{"id":"f92816d5-f673-4cae-b4da-cd41089653f8","block_type":"box","text":"and if BlackRock believes doing so is in the best interest of the Fund.","page_number":144,"box":{"x":116,"y":583,"width":518,"height":12}},{"id":"7e50c4f3-e8d5-4b07-835c-b6c528f47c98","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan","page_number":144,"box":{"x":116,"y":614,"width":698,"height":12}},{"id":"11a22fae-f7d3-4583-bbd7-311b11df87e1","block_type":"box","text":"transaction information (not including party names); this may include, but is not limited to, information","page_number":144,"box":{"x":116,"y":630,"width":755,"height":12}},{"id":"7f2e169c-40ba-43d1-901e-f2943820b000","block_type":"box","text":"about securities loans entered into in connection with short sales. Compliance with this rule is expected","page_number":144,"box":{"x":116,"y":645,"width":771,"height":12}},{"id":"2af54017-4ca5-4c95-bab9-199a8627aa0d","block_type":"box","text":"to be required in late 2028, although in response to the outcome of a legal challenge against the rule,","page_number":144,"box":{"x":116,"y":661,"width":750,"height":12}},{"id":"892b8b53-a134-4dcc-a965-c2c33537fe9b","block_type":"box","text":"the SEC may amend the rule and/or delay the current expected compliance date.","page_number":144,"box":{"x":116,"y":676,"width":602,"height":12}},{"id":"81139e91-0477-48ab-83c7-4dc27c0c1660","block_type":"box","text":"Short Sales.","page_number":144,"box":{"x":117,"y":707,"width":95,"height":10}},{"id":"b95aa978-9a0a-44da-a7c2-1fc4b5bbc33f","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential","page_number":144,"box":{"x":219,"y":707,"width":633,"height":12}},{"id":"751f0156-e307-4590-8855-ca9bd57d306c","block_type":"box","text":"declines in value of a portfolio security or to realize appreciation when a security that the Fund does","page_number":144,"box":{"x":116,"y":723,"width":739,"height":12}},{"id":"c8874e7a-47eb-4eb9-882d-b8967d4404f8","block_type":"box","text":"not own declines in value. Certain Funds have a fundamental investment restriction prohibiting short","page_number":144,"box":{"x":117,"y":738,"width":742,"height":12}},{"id":"6a5f7e99-c8a9-4374-a07e-8100339a97c5","block_type":"box","text":"sales of securities unless they are “against-the-box.” In a short sale “against-the-box,” at the time of the","page_number":144,"box":{"x":116,"y":754,"width":766,"height":12}},{"id":"ca1457eb-e90c-4829-9d5e-3277e43cc23a","block_type":"box","text":"sale, the Fund owns or has the immediate and unconditional right to acquire the identical security at no","page_number":144,"box":{"x":116,"y":769,"width":764,"height":12}},{"id":"5da22283-882e-4b3f-90e9-c569b0722fe6","block_type":"box","text":"additional cost. When a Fund makes a short sale, it borrows the security sold short and delivers it to","page_number":144,"box":{"x":116,"y":785,"width":741,"height":12}},{"id":"52bfb66f-543d-4a3b-a541-4a12259f1fda","block_type":"box","text":"the broker-dealer through which it made the short sale. A Fund may have to pay a fee to borrow","page_number":144,"box":{"x":116,"y":800,"width":712,"height":12}},{"id":"b298b3fb-ef53-4d1a-8f16-f0bd9cab1dcd","block_type":"box","text":"particular securities and is often obligated to turn over any payments received on such borrowed","page_number":144,"box":{"x":117,"y":816,"width":713,"height":12}},{"id":"f437e0d6-5608-49c9-b4ec-86210f4de49c","block_type":"box","text":"securities to the lender of the securities.","page_number":144,"box":{"x":116,"y":831,"width":301,"height":10}},{"id":"b81490ed-750f-4378-9599-d6dd1efec439","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker","page_number":144,"box":{"x":116,"y":862,"width":756,"height":12}},{"id":"c1a1d3fb-dd4f-43be-a18a-ad77e9932978","block_type":"box","text":"dealer, usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed.","page_number":144,"box":{"x":116,"y":878,"width":769,"height":12}},{"id":"07c22ef2-8ef8-4b4e-a744-fdcba79db2ad","block_type":"box","text":"II-94","page_number":144,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"3476c95c-a73c-4320-af9b-1aa0c7c558c3","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":144,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"e2614eac-1ada-4f5a-86c4-a0333eedaa7f","block_type":"box","text":"With respect to uncovered short positions, a Fund is required to deposit similar collateral with its","page_number":145,"box":{"x":116,"y":87,"width":717,"height":12}},{"id":"3ab6f419-49f9-4d35-b68d-fda5451b5487","block_type":"box","text":"custodian, if necessary, to the extent that the value of both collateral deposits in the aggregate is at all","page_number":145,"box":{"x":116,"y":102,"width":763,"height":13}},{"id":"8796dee0-a4e8-41af-ad50-d35a152acf90","block_type":"box","text":"times equal to at least 100% of the current market value of the security sold short. Depending on","page_number":145,"box":{"x":116,"y":118,"width":722,"height":12}},{"id":"f81fcba3-7e40-405f-849c-8e0e3c858fd6","block_type":"box","text":"arrangements made with the broker-dealer from which the Fund borrowed the security, regarding","page_number":145,"box":{"x":116,"y":134,"width":726,"height":12}},{"id":"d94c2629-8c33-40b1-b7dc-440135264901","block_type":"box","text":"payment received by the Fund on such security, a Fund may not receive any payments (including","page_number":145,"box":{"x":117,"y":149,"width":728,"height":12}},{"id":"4d2067ac-1317-488f-ade5-28d0ad1dd42c","block_type":"box","text":"interest) on its collateral deposited with such broker-dealer.","page_number":145,"box":{"x":117,"y":165,"width":443,"height":12}},{"id":"f373ee44-67df-4393-8062-4fb651326b9b","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated","page_number":145,"box":{"x":117,"y":196,"width":754,"height":12}},{"id":"dc83f400-8e28-44ff-b8ce-b84d4377e4d1","block_type":"box","text":"with those securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a","page_number":145,"box":{"x":116,"y":211,"width":755,"height":12}},{"id":"04a36e73-1e18-4fb5-a34d-50c5064d0c1c","block_type":"box","text":"result of a short sale if the price of the security increases between the date of the short sale and the","page_number":145,"box":{"x":117,"y":227,"width":743,"height":12}},{"id":"a2b71d3a-f7bf-46c9-8884-bd119f8fa3a9","block_type":"box","text":"date on which the Fund replaces the borrowed security. As a result, if a Fund makes short sales in","page_number":145,"box":{"x":116,"y":242,"width":735,"height":12}},{"id":"85ebf436-842d-4f61-bb81-3f116262afc2","block_type":"box","text":"securities that increase in value, it will likely underperform similar mutual funds that do not make short","page_number":145,"box":{"x":116,"y":258,"width":759,"height":12}},{"id":"8abeb320-f7f7-434c-a122-d4ceb76e21d0","block_type":"box","text":"sales in securities. A Fund will realize a gain on a short sale if the security declines in price between","page_number":145,"box":{"x":116,"y":273,"width":746,"height":12}},{"id":"489f41ae-32fa-4123-995f-2d9ba2c86bda","block_type":"box","text":"those dates. There can be no assurance that a Fund will be able to close out a short sale position at","page_number":145,"box":{"x":116,"y":289,"width":747,"height":12}},{"id":"3eb03e23-04e9-44c9-a83d-b0ffcf1279db","block_type":"box","text":"any particular time or at an acceptable price. Although a Fund’s gain is limited to the price at which it","page_number":145,"box":{"x":116,"y":304,"width":750,"height":12}},{"id":"9cc7fac5-1443-4916-b4ca-05dd29de397f","block_type":"box","text":"sold the security short, its potential loss is limited only by the maximum attainable price of the security,","page_number":145,"box":{"x":116,"y":320,"width":764,"height":12}},{"id":"8f35ce06-556e-488e-8f06-bb7118471fc3","block_type":"box","text":"less the price at which the security was sold and may, theoretically, be unlimited.","page_number":145,"box":{"x":117,"y":335,"width":603,"height":12}},{"id":"1e15f305-3ce0-4d50-b4eb-74f8abbaae2b","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":145,"box":{"x":116,"y":366,"width":698,"height":12}},{"id":"9ed3fb17-19d6-4bda-89c9-8f040b0fd72d","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short","page_number":145,"box":{"x":116,"y":397,"width":720,"height":12}},{"id":"8f798ff0-14da-48ab-b0cd-288cc7c90b28","block_type":"box","text":"sale borrowings, which are considered Derivatives Transactions under the Rule. See","page_number":145,"box":{"x":116,"y":413,"width":634,"height":12}},{"id":"612ee8be-e2eb-4d8b-9e9a-691ad98825d3","block_type":"box","text":"“—Derivatives—Regulation of Derivatives—Rule 18f-4 under the Investment Company Act” above.","page_number":145,"box":{"x":116,"y":428,"width":738,"height":12}},{"id":"a82463cd-c138-43bb-9bcf-de318909d5c2","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United","page_number":145,"box":{"x":116,"y":459,"width":712,"height":12}},{"id":"3ff5c43b-29fe-428b-bbd4-e2e61e50fd0b","block_type":"box","text":"Kingdom regulations (under which there are restrictions on net short sales in certain securities). If the","page_number":145,"box":{"x":117,"y":475,"width":755,"height":12}},{"id":"ac90dbfa-9759-4427-95d2-f9443ebfd437","block_type":"box","text":"SEC or regulatory authorities in other jurisdictions were to adopt additional restrictions regarding short","page_number":145,"box":{"x":116,"y":490,"width":761,"height":12}},{"id":"33d78067-5049-45ed-a4d5-4c0399fd7430","block_type":"box","text":"sales, they could restrict a Fund’s ability to engage in short sales in certain circumstances, and the","page_number":145,"box":{"x":116,"y":506,"width":736,"height":12}},{"id":"96a30d62-340e-4e74-ab30-cd451ed4d2f3","block_type":"box","text":"Fund may be unable to execute its investment strategy as a result. In response to market events, the","page_number":145,"box":{"x":117,"y":521,"width":753,"height":12}},{"id":"29ba1e26-a858-4e54-8d68-8d3707fc1c74","block_type":"box","text":"SEC and regulatory authorities in other jurisdictions may adopt (and in certain cases, have adopted)","page_number":145,"box":{"x":116,"y":537,"width":747,"height":12}},{"id":"46d71777-ac1d-4ce5-8ead-34f65aaf9020","block_type":"box","text":"bans or other restrictions on short sales of certain securities or on derivatives and other hedging","page_number":145,"box":{"x":117,"y":552,"width":717,"height":12}},{"id":"5ea7531f-95de-409c-948c-888511879496","block_type":"box","text":"instruments used to achieve a similar economic effect. Such bans or other restrictions may make it","page_number":145,"box":{"x":117,"y":568,"width":736,"height":12}},{"id":"8376ccc9-7bb9-41e6-a798-e6f21a6ead20","block_type":"box","text":"impossible for a Fund to execute certain investment strategies and may have a material adverse effect","page_number":145,"box":{"x":117,"y":583,"width":765,"height":12}},{"id":"b998896a-f07c-4c3f-aee2-32624b5a1e99","block_type":"box","text":"on the Fund’s ability to generate returns.","page_number":145,"box":{"x":116,"y":599,"width":306,"height":12}},{"id":"acad18b4-03cc-4bf5-83ec-84782aca1a7c","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":145,"box":{"x":117,"y":630,"width":325,"height":12}},{"id":"8a852ed0-1461-4e14-8cc4-ca2d703bd1e9","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other","page_number":145,"box":{"x":443,"y":630,"width":411,"height":12}},{"id":"c26abba8-187b-443b-826f-399c2f69f33d","block_type":"box","text":"interests issued by special purpose acquisition companies (“SPACs”) or similar special purpose entities","page_number":145,"box":{"x":117,"y":645,"width":770,"height":12}},{"id":"a7686a4a-5245-4b95-8abe-15d3e9f9f4d0","block_type":"box","text":"that pool funds to seek potential acquisition opportunities, including the “founder’s” shares and","page_number":145,"box":{"x":116,"y":661,"width":698,"height":12}},{"id":"836a0646-067d-4ab7-af37-a5b48d790d13","block_type":"box","text":"warrants described below. A SPAC is a publicly traded company that raises investment capital via an","page_number":145,"box":{"x":116,"y":676,"width":749,"height":12}},{"id":"3353695d-fabd-4d06-85d0-4ac1dee92b2d","block_type":"box","text":"IPO for the purpose of identifying and acquiring one or more operating businesses or assets. In","page_number":145,"box":{"x":117,"y":692,"width":705,"height":12}},{"id":"b84e87c2-af92-40f3-9050-3b8b36303afc","block_type":"box","text":"connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s” shares, generally for","page_number":145,"box":{"x":116,"y":707,"width":712,"height":12}},{"id":"ff79233f-a6d1-43e7-a630-c367ae0689c8","block_type":"box","text":"nominal consideration, and warrants that will result in the sponsors owning a specified percentage","page_number":145,"box":{"x":117,"y":723,"width":726,"height":12}},{"id":"1c040600-1255-4965-8200-6c8a5abb9fb8","block_type":"box","text":"(typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a","page_number":145,"box":{"x":117,"y":738,"width":735,"height":12}},{"id":"7c76c729-be7b-443c-8e27-69cdf511369e","block_type":"box","text":"SPAC conducts an IPO, it has selected a management team but has not yet identified a specific","page_number":145,"box":{"x":116,"y":754,"width":713,"height":12}},{"id":"ab542325-15bd-4a43-b160-59bb0d1de578","block_type":"box","text":"acquisition opportunity. Unless and until an acquisition is completed, a SPAC generally invests its","page_number":145,"box":{"x":116,"y":769,"width":723,"height":12}},{"id":"39125390-ad86-4e7c-9257-0efafb0f6ac1","block_type":"box","text":"assets in U.S. Government securities, money market securities and cash. If an acquisition that meets","page_number":145,"box":{"x":116,"y":785,"width":751,"height":12}},{"id":"4e20af0b-a182-49db-ad19-cf7ba61efda8","block_type":"box","text":"the requirements for the SPAC is not completed within a pre-established period of time, the invested","page_number":145,"box":{"x":116,"y":800,"width":743,"height":12}},{"id":"5d09f342-ecbe-404d-9624-a8718519a132","block_type":"box","text":"funds are returned to the SPAC’s public shareholders, the warrants expire, and the “founder’s” shares","page_number":145,"box":{"x":116,"y":816,"width":755,"height":12}},{"id":"90f62ffa-9983-4b8b-83c8-8a28738694e4","block_type":"box","text":"and such warrants become worthless. Because SPACs and similar entities are in essence “blank","page_number":145,"box":{"x":116,"y":831,"width":725,"height":10}},{"id":"7753ed6e-b3e6-47c4-9bc8-761ff7a1240e","block_type":"box","text":"check” companies without operating histories or ongoing business operations (other than identifying","page_number":145,"box":{"x":116,"y":847,"width":745,"height":12}},{"id":"25c2f144-5f87-4e2c-a73e-6310dc45a55b","block_type":"box","text":"and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":145,"box":{"x":116,"y":862,"width":728,"height":12}},{"id":"8d12e76f-28cc-4eda-a224-4aa6eeef6090","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable","page_number":145,"box":{"x":117,"y":878,"width":751,"height":12}},{"id":"af57e186-6284-471b-a6f8-6cc05eb5d67f","block_type":"box","text":"II-95","page_number":145,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"cd3e7403-79f6-4340-a8db-6dbf23ba5954","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":145,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"6c2c1ee2-5038-4505-85af-b9d95c9f74a2","block_type":"box","text":"acquisition. There is no guarantee that the SPACs in which a Fund invests will complete an acquisition","page_number":146,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"6c5e4bf1-9ab8-494c-a57a-1d84e485640a","block_type":"box","text":"or that any acquisitions completed by the SPACs in which the Fund invests will be profitable. Some","page_number":146,"box":{"x":116,"y":102,"width":740,"height":13}},{"id":"97f1fc6a-7584-40fd-84d3-249827ccfffa","block_type":"box","text":"SPACs may pursue acquisitions only within certain industries or regions, which may ultimately lead to","page_number":146,"box":{"x":116,"y":118,"width":758,"height":12}},{"id":"9c26eed8-3032-4cec-981b-9d4249554395","block_type":"box","text":"an increase in the volatility of their prices following the acquisition. In addition, some of these securities","page_number":146,"box":{"x":116,"y":134,"width":768,"height":12}},{"id":"95d0d11d-33fc-401c-8a28-da1729e8ab2c","block_type":"box","text":"may be considered illiquid and/or subject to restrictions on resale.","page_number":146,"box":{"x":117,"y":149,"width":491,"height":12}},{"id":"d5cc34c0-5f49-4efc-a975-f2ea5e0b7b66","block_type":"box","text":"Standby Commitment Agreements.","page_number":146,"box":{"x":117,"y":180,"width":278,"height":12}},{"id":"a486a1b9-ec83-499c-abde-3460479a8cd0","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated","page_number":146,"box":{"x":396,"y":180,"width":471,"height":12}},{"id":"2b70038a-d460-4775-90d7-c43dbd54ab4b","block_type":"box","text":"period of time, to purchase a stated amount of securities that may be issued and sold to that Fund at","page_number":146,"box":{"x":117,"y":196,"width":750,"height":12}},{"id":"740b6422-9e41-4143-a4b1-e38afefb842c","block_type":"box","text":"the option of the issuer. The price of the security is fixed at the time of the commitment. At the time of","page_number":146,"box":{"x":116,"y":211,"width":756,"height":12}},{"id":"01b462fc-edb1-4422-81b3-97cf1e6dde21","block_type":"box","text":"entering into the agreement, a Fund is paid a commitment fee, regardless of whether or not the","page_number":146,"box":{"x":116,"y":227,"width":711,"height":12}},{"id":"6beb0c9b-af26-4a1d-94aa-e1d8c421a80c","block_type":"box","text":"security is ultimately issued. A Fund will enter into such agreements for the purpose of investing in the","page_number":146,"box":{"x":116,"y":242,"width":762,"height":12}},{"id":"d912fa32-8441-4f8d-ba1a-e2f60d8db7b4","block_type":"box","text":"security underlying the commitment at a price that is considered advantageous to the Fund.","page_number":146,"box":{"x":116,"y":258,"width":685,"height":12}},{"id":"b558b964-efec-4255-a9bd-f1d4e9fed010","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the","page_number":146,"box":{"x":116,"y":289,"width":767,"height":12}},{"id":"779fe7a9-44fc-4440-aa4f-377dd4a93c18","block_type":"box","text":"value of the security, if issued, on the delivery date may be more or less than its purchase price. Since","page_number":146,"box":{"x":116,"y":304,"width":764,"height":12}},{"id":"fc345a5c-68ad-4053-b1b1-1cbe9be15e00","block_type":"box","text":"the issuance of the security underlying the commitment is at the option of the issuer, the Fund may","page_number":146,"box":{"x":116,"y":320,"width":738,"height":12}},{"id":"c3ace473-eb95-42c0-a3a9-5822f3af985c","block_type":"box","text":"bear the risk of a decline in the value of such security and may not benefit from an appreciation in the","page_number":146,"box":{"x":117,"y":335,"width":756,"height":12}},{"id":"4cd176a3-a248-4be7-8bd0-04126d2d910d","block_type":"box","text":"value of the security during the commitment period.","page_number":146,"box":{"x":116,"y":351,"width":386,"height":12}},{"id":"e011c460-d36e-41fe-9b0d-1bf579a6e281","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment","page_number":146,"box":{"x":116,"y":382,"width":764,"height":12}},{"id":"94a23a36-9a42-43f6-b53e-cc5fa4edd8fc","block_type":"box","text":"fee will be recorded on the date on which the security can reasonably be expected to be issued, and","page_number":146,"box":{"x":116,"y":397,"width":749,"height":12}},{"id":"0bc88382-dfb7-40e2-8492-48a7111fe6af","block_type":"box","text":"the value of the security thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis","page_number":146,"box":{"x":116,"y":413,"width":755,"height":12}},{"id":"5fd3044b-951f-4b32-9446-ea14868071c5","block_type":"box","text":"of the security will be adjusted by the amount of the commitment fee. In the event the security is not","page_number":146,"box":{"x":116,"y":428,"width":745,"height":12}},{"id":"60e7c2a3-15c3-4e8d-8390-9dc7c83ab4d7","block_type":"box","text":"issued, the commitment fee will be recorded as income on the expiration date of the standby","page_number":146,"box":{"x":117,"y":444,"width":690,"height":12}},{"id":"2e2ffd81-3309-47a5-9198-439135edb5f0","block_type":"box","text":"commitment.","page_number":146,"box":{"x":116,"y":459,"width":101,"height":10}},{"id":"90429a84-7525-4086-9d4e-0c0a317089db","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the","page_number":146,"box":{"x":116,"y":490,"width":744,"height":12}},{"id":"9f995a68-fbad-4740-875f-a216e241daf0","block_type":"box","text":"Manager’s or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby","page_number":146,"box":{"x":117,"y":506,"width":693,"height":12}},{"id":"d140f795-ed42-4b42-8008-111d3c8d9835","block_type":"box","text":"commitments solely to facilitate portfolio liquidity and not to exercise its rights thereunder for trading","page_number":146,"box":{"x":116,"y":521,"width":744,"height":12}},{"id":"7757b769-41b1-4ec5-8537-9c0ba41657af","block_type":"box","text":"purposes. Standby commitments will be valued at zero in determining NAV. Accordingly, where a Fund","page_number":146,"box":{"x":117,"y":537,"width":769,"height":12}},{"id":"3108f4ac-cb80-4d5b-9230-2b6f2211cd5d","block_type":"box","text":"pays directly or indirectly for a standby commitment, its cost will be reflected as an unrealized loss for","page_number":146,"box":{"x":117,"y":552,"width":756,"height":12}},{"id":"a6a705c6-026c-4a96-8981-aca169ae3d9e","block_type":"box","text":"the period during which the commitment is held by such Fund and will be reflected as a realized gain or","page_number":146,"box":{"x":116,"y":568,"width":771,"height":12}},{"id":"e1b29c47-2bc7-4e49-9270-1806f7cff2c0","block_type":"box","text":"loss when the commitment is exercised or expires.","page_number":146,"box":{"x":117,"y":583,"width":380,"height":12}},{"id":"c1121b79-0557-408b-b4d7-c578d76b4fa6","block_type":"box","text":"Stripped Securities.","page_number":146,"box":{"x":117,"y":614,"width":156,"height":12}},{"id":"93253207-2c17-496c-aa83-bf4eed55e109","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and","page_number":146,"box":{"x":274,"y":614,"width":560,"height":12}},{"id":"d6654b45-ef79-404a-abec-9be7926a4db3","block_type":"box","text":"principal components of an instrument and sells them as separate securities. In general, one security is","page_number":146,"box":{"x":117,"y":630,"width":771,"height":12}},{"id":"42e50cd3-07d8-4f71-86c0-b4133931225c","block_type":"box","text":"entitled to receive the interest payments on the underlying assets (the interest only or “IO” security)","page_number":146,"box":{"x":116,"y":645,"width":740,"height":12}},{"id":"7fb93eb6-7a65-46fa-a437-f88865db00d9","block_type":"box","text":"and the other to receive the principal payments (the principal only or “PO” security). Some stripped","page_number":146,"box":{"x":116,"y":661,"width":731,"height":12}},{"id":"b323c262-bb2e-4591-9d80-e236f663497d","block_type":"box","text":"securities may receive a combination of interest and principal payments. The yields to maturity on IOs","page_number":146,"box":{"x":116,"y":676,"width":755,"height":12}},{"id":"0cd2b834-2820-4369-bb9f-14d551c6e421","block_type":"box","text":"and POs are sensitive to the expected or anticipated rate of principal payments (including","page_number":146,"box":{"x":116,"y":692,"width":663,"height":12}},{"id":"2de2a601-205c-433c-8465-94797bddf908","block_type":"box","text":"prepayments) on the related underlying assets, and principal payments may have a material effect on","page_number":146,"box":{"x":117,"y":707,"width":752,"height":12}},{"id":"253d42e7-0d5c-4268-bdc3-de5ed7741cc1","block_type":"box","text":"yield to maturity. If the underlying assets experience greater than anticipated prepayments of principal,","page_number":146,"box":{"x":116,"y":723,"width":760,"height":12}},{"id":"5d97ec22-863a-4db7-b0e8-ce4e36fddda2","block_type":"box","text":"a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets","page_number":146,"box":{"x":116,"y":738,"width":681,"height":12}},{"id":"6ec4e88d-86f9-4e8d-bfc5-feccdba11cbb","block_type":"box","text":"experience less than anticipated prepayments of principal, the yield on POs could be adversely","page_number":146,"box":{"x":116,"y":754,"width":706,"height":12}},{"id":"718c04d1-dc5d-4440-bbde-6f757e0b541a","block_type":"box","text":"affected. Stripped securities may be highly sensitive to changes in interest rates and rates of","page_number":146,"box":{"x":116,"y":769,"width":687,"height":12}},{"id":"f8ddf560-ee92-4add-b60d-8878ee647d54","block_type":"box","text":"prepayment.","page_number":146,"box":{"x":117,"y":785,"width":91,"height":12}},{"id":"2efa8804-d85e-4aea-97eb-042db7a2ef5c","block_type":"box","text":"Structured Notes.","page_number":146,"box":{"x":117,"y":816,"width":139,"height":9}},{"id":"d1ccda08-252d-405c-8034-07b64f513b48","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally","page_number":146,"box":{"x":262,"y":816,"width":612,"height":12}},{"id":"c160fc6f-9b77-4c4f-b9e0-fb9ab75cafc4","block_type":"box","text":"privately negotiated debt obligations where the principal and/or interest is determined by reference to","page_number":146,"box":{"x":117,"y":831,"width":753,"height":12}},{"id":"035bb890-7894-4245-852f-374d7f178e21","block_type":"box","text":"the performance of a specific asset, benchmark asset, market or interest rate (“reference measure”).","page_number":146,"box":{"x":116,"y":847,"width":751,"height":12}},{"id":"9cc7f790-aca1-4d66-be6a-82dafa0f7dd9","block_type":"box","text":"Issuers of structured notes generally include corporations and banks. The interest rate or the principal","page_number":146,"box":{"x":117,"y":862,"width":760,"height":12}},{"id":"144a39e5-af43-4080-bf7b-b2113602da17","block_type":"box","text":"amount payable upon maturity or redemption may increase or decrease, depending upon changes in","page_number":146,"box":{"x":116,"y":878,"width":754,"height":12}},{"id":"7c7368aa-da3a-44e5-8e86-4ea3b0bc9187","block_type":"box","text":"II-96","page_number":146,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"423bb869-ef46-4f4e-9fa2-a20441845342","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":146,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"a1a2b615-5575-414f-b220-ab646ae3c8e6","block_type":"box","text":"the value of the reference measure. The terms of a structured note may provide that, in certain","page_number":147,"box":{"x":116,"y":87,"width":708,"height":12}},{"id":"fe2d2c5f-678c-4c31-adaf-348bfd3b95f9","block_type":"box","text":"circumstances, no principal is due at maturity and, therefore, may result in a loss of invested capital by","page_number":147,"box":{"x":116,"y":102,"width":765,"height":13}},{"id":"21f3718e-dc60-4d70-ae22-de4ea9dea7da","block_type":"box","text":"a Fund. The interest and/or principal payments that may be made on a structured product may vary","page_number":147,"box":{"x":116,"y":118,"width":743,"height":12}},{"id":"cadf4f8b-0f04-47f5-96d0-7a23ec302364","block_type":"box","text":"widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":147,"box":{"x":116,"y":134,"width":671,"height":12}},{"id":"fe381863-cb4e-4bb2-ae81-ae8c35104c26","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure","page_number":147,"box":{"x":116,"y":165,"width":770,"height":12}},{"id":"b769c65d-b2d5-4b29-a5cd-9048479a052e","block_type":"box","text":"may produce an increase or a decrease in the interest rate or the value of the principal at maturity. The","page_number":147,"box":{"x":117,"y":180,"width":768,"height":12}},{"id":"de4146d5-9d02-467e-a306-02ece9f1e538","block_type":"box","text":"rate of return on structured notes may be determined by applying a multiplier to the performance or","page_number":147,"box":{"x":117,"y":196,"width":739,"height":12}},{"id":"817741f3-8952-49c1-a611-ea717783b078","block_type":"box","text":"differential performance of reference measures. Application of a multiplier involves leverage that will","page_number":147,"box":{"x":116,"y":211,"width":746,"height":12}},{"id":"d5f85f08-ce70-4702-95cf-2b9aa8e4e899","block_type":"box","text":"serve to magnify the potential for gain and the risk of loss.","page_number":147,"box":{"x":116,"y":227,"width":435,"height":12}},{"id":"06aedc96-5416-40e6-a427-b3142b84a83c","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured","page_number":147,"box":{"x":116,"y":258,"width":722,"height":11}},{"id":"d26bb566-9abc-4d70-9a49-90c560574ca7","block_type":"box","text":"product. Structured notes may also be more volatile, less liquid, and more difficult to price accurately","page_number":147,"box":{"x":117,"y":273,"width":750,"height":12}},{"id":"4a91b375-8db2-4685-9a71-b577a9d9395b","block_type":"box","text":"than less complex securities and instruments or more traditional debt securities. The secondary market","page_number":147,"box":{"x":116,"y":289,"width":770,"height":12}},{"id":"14232f56-90ba-487b-be8d-2c9bb0886a60","block_type":"box","text":"for structured notes could be illiquid making them difficult to sell when the Fund determines to sell","page_number":147,"box":{"x":116,"y":304,"width":729,"height":12}},{"id":"ebc4c251-5835-46b8-9b3c-3ebe6a13a7bd","block_type":"box","text":"them. The possible lack of a liquid secondary market for structured notes and the resulting inability of","page_number":147,"box":{"x":116,"y":320,"width":755,"height":12}},{"id":"22b33932-9fa2-4776-b536-3845ca95230f","block_type":"box","text":"the Fund to sell a structured note could expose the Fund to losses and could make structured notes","page_number":147,"box":{"x":116,"y":335,"width":746,"height":12}},{"id":"97a2df97-9b18-4c61-bef5-f4f39551b7a1","block_type":"box","text":"more difficult for the Fund to value accurately.","page_number":147,"box":{"x":117,"y":351,"width":344,"height":12}},{"id":"803b3a3b-f685-40b3-a94c-9fcba5595b66","block_type":"box","text":"Taxability Risk.","page_number":147,"box":{"x":118,"y":382,"width":119,"height":12}},{"id":"3d4ae8a3-ec04-47d5-897d-a4ee55e29c6c","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to","page_number":147,"box":{"x":238,"y":382,"width":555,"height":12}},{"id":"baa596fb-9b66-4dc4-8ae5-bc56bbbe1ef7","block_type":"box","text":"shareholders by investing in tax-exempt or municipal securities in reliance at the time of purchase on","page_number":147,"box":{"x":116,"y":397,"width":753,"height":12}},{"id":"c26a9e42-7e30-4932-955a-d6a886e6c5d1","block_type":"box","text":"an opinion of bond counsel to the issuer and, in the case of derivative securities, sponsors’ counsel,","page_number":147,"box":{"x":116,"y":413,"width":745,"height":12}},{"id":"d97aafd1-373b-4172-b05b-a9b6d8e79867","block_type":"box","text":"that the interest paid on those securities will be excludable from gross income for U.S. federal income","page_number":147,"box":{"x":116,"y":428,"width":759,"height":12}},{"id":"0e39e928-334e-44e1-8e62-26b2f421c956","block_type":"box","text":"tax purposes. Such securities, however, may be determined to pay, or have paid, taxable income","page_number":147,"box":{"x":116,"y":444,"width":726,"height":12}},{"id":"9abf0c9a-842e-4bcc-b3f1-ab38e408566b","block_type":"box","text":"subsequent to the Fund’s acquisition of the securities. In that event, the IRS may demand that the","page_number":147,"box":{"x":116,"y":459,"width":731,"height":12}},{"id":"fd5ebc44-69e8-44c5-90ee-78366498008d","block_type":"box","text":"Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to do so,","page_number":147,"box":{"x":117,"y":475,"width":758,"height":12}},{"id":"f9801aca-ab4c-47b4-8b68-487ccdb9e062","block_type":"box","text":"the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or","page_number":147,"box":{"x":116,"y":490,"width":758,"height":12}},{"id":"d7a979fb-363b-4302-a7a2-3c274465f727","block_type":"box","text":"to be paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the","page_number":147,"box":{"x":116,"y":506,"width":724,"height":12}},{"id":"46adc74c-9f27-4094-97a8-3b11ec1b8403","block_type":"box","text":"Fund’s shareholders to increased U.S. federal income tax liabilities. If the interest paid on any","page_number":147,"box":{"x":117,"y":521,"width":699,"height":12}},{"id":"b8bdc8a4-70c5-4066-9c03-9fd1d93c3708","block_type":"box","text":"tax-exempt or municipal security held by the Fund is subsequently determined to be taxable, the Fund","page_number":147,"box":{"x":116,"y":537,"width":762,"height":12}},{"id":"09be1692-f19a-4b09-8ae5-4e15f48e2fdb","block_type":"box","text":"will dispose of that security as soon as reasonably practicable. In addition, future laws, regulations,","page_number":147,"box":{"x":116,"y":552,"width":738,"height":12}},{"id":"37292f3a-0606-4c74-9205-c5a534f70f43","block_type":"box","text":"rulings or court decisions may cause interest on municipal securities to be subject, directly or indirectly,","page_number":147,"box":{"x":117,"y":568,"width":769,"height":12}},{"id":"811a19cc-69b4-4497-accd-f8f4b20f1d1c","block_type":"box","text":"to U.S. federal income taxation or interest on state municipal securities to be subject to state or local","page_number":147,"box":{"x":116,"y":583,"width":749,"height":12}},{"id":"feea2e6b-11f8-4e72-a985-61560acf8a18","block_type":"box","text":"income taxation, or the value of state municipal securities to be subject to state or local intangible","page_number":147,"box":{"x":117,"y":599,"width":726,"height":12}},{"id":"6dbb4385-1ab7-42f3-94da-9013ecaa5409","block_type":"box","text":"personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":147,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"0ded6ebf-8049-40df-909a-fa3d76410841","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such","page_number":147,"box":{"x":116,"y":630,"width":721,"height":12}},{"id":"c194eb44-45f0-4b47-a0ec-032ba4d6668d","block_type":"box","text":"securities, and thus the value of an investment in the Fund.","page_number":147,"box":{"x":116,"y":645,"width":444,"height":11}},{"id":"03a51080-0235-4992-b55d-d6df1fcde2ae","block_type":"box","text":"Temporary Defensive Measures.","page_number":147,"box":{"x":118,"y":676,"width":252,"height":12}},{"id":"a9a473b7-73b9-4c66-a3ea-81a751bd9fe6","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse","page_number":147,"box":{"x":376,"y":676,"width":498,"height":12}},{"id":"ed4627e6-81f5-4e65-b727-1193c1044e76","block_type":"box","text":"market, economic, political or other conditions, a Fund may depart from its principal investment","page_number":147,"box":{"x":117,"y":692,"width":697,"height":12}},{"id":"5e098129-56c2-4cf4-a85e-f13d49867c06","block_type":"box","text":"strategies and may invest without limitation in cash, high quality money market instruments, or other","page_number":147,"box":{"x":116,"y":707,"width":735,"height":12}},{"id":"a906ff90-05cc-47e8-9807-572c95878444","block_type":"box","text":"short term investments. Certain Funds may also invest in cash and other such instruments pending","page_number":147,"box":{"x":116,"y":723,"width":727,"height":12}},{"id":"cc4c1036-a4ff-4d7a-b207-48819039ed9e","block_type":"box","text":"investment or to meet anticipated redemption requests. High quality money market instruments include","page_number":147,"box":{"x":117,"y":738,"width":755,"height":12}},{"id":"4957b8fa-e669-4f49-ba90-14830c4fa6ff","block_type":"box","text":"U.S. Government obligations, U.S. Government agency obligations, dollar denominated obligations of","page_number":147,"box":{"x":117,"y":754,"width":746,"height":12}},{"id":"036abd99-b74a-4417-9c22-a4307361a066","block_type":"box","text":"foreign issuers, bank obligations, including U.S. subsidiaries and branches of foreign banks, corporate","page_number":147,"box":{"x":116,"y":769,"width":750,"height":12}},{"id":"0f2fbbc8-e3bb-45ab-a8b0-6445a46395c5","block_type":"box","text":"obligations, commercial paper, repurchase agreements and obligations of supranational organizations.","page_number":147,"box":{"x":116,"y":785,"width":753,"height":12}},{"id":"843f2fd6-eb00-426f-abd2-d480f1665fe4","block_type":"box","text":"Generally, such obligations will mature within one year from the date of settlement, but may mature","page_number":147,"box":{"x":117,"y":800,"width":727,"height":12}},{"id":"2d49e0b5-8e62-481e-a274-de88c2fb6c53","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability","page_number":147,"box":{"x":116,"y":816,"width":762,"height":12}},{"id":"a162dc19-70ff-4283-8472-d89c3677525f","block_type":"box","text":"to achieve its investment objective.","page_number":147,"box":{"x":116,"y":831,"width":262,"height":12}},{"id":"d51d0753-2523-4e02-9c0b-b33d4ab7549a","block_type":"box","text":"U.S. Government Obligations.","page_number":147,"box":{"x":117,"y":862,"width":236,"height":12}},{"id":"51911aed-738f-4f50-8525-d902f515f16b","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S.","page_number":147,"box":{"x":354,"y":862,"width":510,"height":12}},{"id":"3bf16b6f-6a2e-43a9-a51a-c7d4fa4e08e1","block_type":"box","text":"Government and U.S. Government agencies and instrumentalities. Obligations of certain agencies and","page_number":147,"box":{"x":117,"y":878,"width":767,"height":12}},{"id":"093640bd-869a-4c7e-ad31-7b46197a0802","block_type":"box","text":"II-97","page_number":147,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"913bbfc5-2ec3-4de5-8fa7-d99c8ddfbba4","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":147,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"184bde8a-4755-47b2-aa36-f74f0db5a32d","block_type":"box","text":"instrumentalities of the U.S. Government are supported by the full faith and credit of the U.S. Treasury.","page_number":148,"box":{"x":117,"y":87,"width":767,"height":12}},{"id":"5a33c124-233d-4d7a-9d11-fd86d3723e1d","block_type":"box","text":"Others are supported by the right of the issuer to borrow from the U.S. Treasury; and still others are","page_number":148,"box":{"x":116,"y":102,"width":745,"height":13}},{"id":"f9248a81-2a9f-4d9d-a41d-706af8e942ac","block_type":"box","text":"supported only by the credit of the agency or instrumentality issuing the obligation. No assurance can","page_number":148,"box":{"x":116,"y":118,"width":757,"height":12}},{"id":"856007af-92c3-4777-9e28-04577759b244","block_type":"box","text":"be given that the U.S. Government will provide financial support to U.S. Government-sponsored","page_number":148,"box":{"x":117,"y":134,"width":715,"height":12}},{"id":"a4882729-200c-4c8f-b5e7-537da6409944","block_type":"box","text":"instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury and agency securities may","page_number":148,"box":{"x":117,"y":149,"width":762,"height":12}},{"id":"d8d266b4-9830-42f9-b5f3-30b6d6775e06","block_type":"box","text":"be held by trusts that issue participation certificates (such as Treasury income growth receipts and","page_number":148,"box":{"x":117,"y":165,"width":734,"height":12}},{"id":"1cd4efb4-8ca3-4af8-a00d-90f617feaf8e","block_type":"box","text":"certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":148,"box":{"x":116,"y":180,"width":740,"height":12}},{"id":"35649930-a4ca-41b6-879f-fca90f027d39","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or","page_number":148,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"866e2b98-d656-4b17-85d1-4160b7e26b0b","block_type":"box","text":"the future principal payments on U.S. Government obligations. These instruments are issued at a","page_number":148,"box":{"x":116,"y":211,"width":727,"height":12}},{"id":"74fecfcf-07ed-4157-b1e0-47e828335c64","block_type":"box","text":"discount to their “face value” and may (particularly in the case of stripped mortgage-backed securities)","page_number":148,"box":{"x":116,"y":227,"width":763,"height":12}},{"id":"d495c9fa-d416-4d15-a2a3-a1705726d137","block_type":"box","text":"exhibit greater price volatility than ordinary debt securities because of the manner in which their","page_number":148,"box":{"x":116,"y":242,"width":713,"height":12}},{"id":"7a096eca-45bb-4198-8259-6983200997dc","block_type":"box","text":"principal and interest are returned to investors.","page_number":148,"box":{"x":117,"y":258,"width":351,"height":11}},{"id":"12396ec1-871b-4396-b719-8e3e52e0253a","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S.","page_number":148,"box":{"x":117,"y":289,"width":734,"height":12}},{"id":"e7c421a5-1751-4336-b65a-f1e4312bf427","block_type":"box","text":"Treasury Bills, Treasury Notes and Treasury Bonds and the obligations of the Federal Housing","page_number":148,"box":{"x":116,"y":304,"width":708,"height":12}},{"id":"bd35e55c-9bce-4c96-99b0-1656c5aea895","block_type":"box","text":"Administration, Farmers Home Administration, Export-Import Bank of the United States, Small","page_number":148,"box":{"x":116,"y":320,"width":703,"height":12}},{"id":"60a339e1-7885-4820-871f-1fee8dd6fc01","block_type":"box","text":"Business Administration, Ginnie Mae, Fannie Mae, Federal Financing Bank, General Services","page_number":148,"box":{"x":117,"y":335,"width":702,"height":12}},{"id":"eb10d737-7fcc-41b3-9afd-1cc3bcd9180f","block_type":"box","text":"Administration, Student Loan Marketing Association, Central Bank for Cooperatives, Federal Home","page_number":148,"box":{"x":116,"y":351,"width":741,"height":12}},{"id":"4d64578f-0860-4939-bb0e-4e2f05a0e009","block_type":"box","text":"Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm Credit Banks","page_number":148,"box":{"x":117,"y":366,"width":771,"height":11}},{"id":"ac5cf007-3899-4d25-a6e3-2492a674bfba","block_type":"box","text":"System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":148,"box":{"x":116,"y":382,"width":772,"height":12}},{"id":"5266dc11-de72-4d7a-9c3c-96fbf4dc14f0","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government","page_number":148,"box":{"x":117,"y":397,"width":717,"height":12}},{"id":"4cbb81c2-1b86-43d3-b66e-c8320050ec4b","block_type":"box","text":"agencies and instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae","page_number":148,"box":{"x":116,"y":413,"width":754,"height":12}},{"id":"fb0aaa9e-4e17-404d-bb84-7249444f3719","block_type":"box","text":"and Freddie Mac.","page_number":148,"box":{"x":116,"y":428,"width":135,"height":10}},{"id":"e17c3c22-bfb0-4746-8e1e-9fc9a85c4473","block_type":"box","text":"U.S. Treasury Obligations.","page_number":148,"box":{"x":117,"y":459,"width":194,"height":12}},{"id":"32f488ad-02bf-4604-9c40-751cfe5441da","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of","page_number":148,"box":{"x":313,"y":459,"width":548,"height":12}},{"id":"9a99cdcb-3043-45dc-8ad4-6f25a4e6aaf0","block_type":"box","text":"issuance and other characteristics. Obligations of U.S. Government agencies and authorities are","page_number":148,"box":{"x":117,"y":475,"width":721,"height":12}},{"id":"74a9e004-9cf0-4862-8715-f4cf0508bf8f","block_type":"box","text":"supported by varying degrees of credit but generally are not backed by the full faith and credit of the","page_number":148,"box":{"x":116,"y":490,"width":747,"height":12}},{"id":"8a682551-885b-4218-8993-8d1afc067e18","block_type":"box","text":"U.S. Government. No assurance can be given that the U.S. Government will provide financial support","page_number":148,"box":{"x":117,"y":506,"width":758,"height":12}},{"id":"bdd51d18-ab9c-49cc-a336-becb2ee655d0","block_type":"box","text":"to its agencies and authorities if it is not obligated by law to do so.","page_number":148,"box":{"x":116,"y":521,"width":493,"height":12}},{"id":"76b8a637-1ee7-4ebd-8a84-7525af5ae12e","block_type":"box","text":"U.S. Treasury Rolls.","page_number":148,"box":{"x":117,"y":552,"width":153,"height":12}},{"id":"ea040ab1-377a-4771-b196-a248593a1895","block_type":"box","text":"Certain Funds may invest in U.S. Treasury","page_number":148,"box":{"x":271,"y":552,"width":320,"height":12}},{"id":"332417dd-cbc2-46a9-81fa-43fd9c36216d","block_type":"box","text":"rolls. In a U.S. Treasury roll transaction,","page_number":148,"box":{"x":592,"y":552,"width":292,"height":12}},{"id":"82e2f229-0834-4a1b-8ee7-7da5c2064552","block_type":"box","text":"the Fund sells a treasury security to a counterpa","page_number":148,"box":{"x":116,"y":568,"width":350,"height":12}},{"id":"e3730c8a-258e-4b96-b266-75ccd2f961db","block_type":"box","text":"rty with a simultaneous agreement to repurchase the","page_number":148,"box":{"x":468,"y":568,"width":387,"height":12}},{"id":"9a9bf1f8-745d-408f-bc28-18959193dd2d","block_type":"box","text":"same security at an agreed upon price and future settl","page_number":148,"box":{"x":116,"y":583,"width":392,"height":12}},{"id":"7ac810e2-b9f6-4546-b1b7-3608be992e2d","block_type":"box","text":"ement date. U.S. Treasury roll transactions may","page_number":148,"box":{"x":510,"y":583,"width":353,"height":12}},{"id":"9db45118-977a-42ea-bea7-785c06f50074","block_type":"box","text":"incrementally adjust the average maturity of a Fund’","page_number":148,"box":{"x":117,"y":599,"width":376,"height":12}},{"id":"a0932f4c-0a66-4f52-b12e-3fbbf4e1fecd","block_type":"box","text":"s portfolio and increase the interest yield on the","page_number":148,"box":{"x":494,"y":599,"width":348,"height":12}},{"id":"da0d66f9-40c7-4598-b68e-dee21eb67213","block_type":"box","text":"Fund’s portfolio by extending the average maturity of the portfolio in a normal yield curve environment.","page_number":148,"box":{"x":117,"y":614,"width":746,"height":12}},{"id":"be3db8e4-0a3d-4790-a4d8-4fcf530b7d99","block_type":"box","text":"During the period before the settlement","page_number":148,"box":{"x":117,"y":630,"width":284,"height":12}},{"id":"36226f19-50b2-4c8f-8c93-f51a931d8fd6","block_type":"box","text":"date of a U.S. Treasury roll, a","page_number":148,"box":{"x":401,"y":630,"width":224,"height":12}},{"id":"4fbaf99c-de34-4e2e-807a-7bddd9c57b41","block_type":"box","text":"Fund continues to earn interest on","page_number":148,"box":{"x":626,"y":630,"width":254,"height":9}},{"id":"9b53e0ae-664b-47be-b6a9-1921bc6d65cf","block_type":"box","text":"the securities it is selling; however, it does not earn in","page_number":148,"box":{"x":116,"y":645,"width":387,"height":12}},{"id":"e28b0a59-f26f-40e0-b8ba-9c7c45acd20d","block_type":"box","text":"terest on the securities it is purchasing until after the","page_number":148,"box":{"x":504,"y":645,"width":383,"height":12}},{"id":"788cfc43-72e9-4d7c-b9de-7136f7f65c69","block_type":"box","text":"settlement date. A Fund could suffer an opportunity loss","page_number":148,"box":{"x":116,"y":661,"width":406,"height":12}},{"id":"517e4d08-c39d-4abf-ad17-238a2e948070","block_type":"box","text":"if the counterparty to the U.S. Treasury roll","page_number":148,"box":{"x":528,"y":661,"width":308,"height":12}},{"id":"8cabe2fa-0423-4410-aada-64250f669730","block_type":"box","text":"transaction failed to perform its obligations on the settlement date.","page_number":148,"box":{"x":116,"y":676,"width":478,"height":12}},{"id":"f6dc8391-f2ae-45fe-8cd3-31deb9631956","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed","page_number":148,"box":{"x":116,"y":707,"width":745,"height":12}},{"id":"86736d1b-a46a-4848-9de0-ecdcb246611f","block_type":"box","text":"upon purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be","page_number":148,"box":{"x":117,"y":723,"width":732,"height":12}},{"id":"c7685f11-db5a-4b49-8631-db089c236249","block_type":"box","text":"deemed to involve leverage. There is no assurance that U.S. Treasury rolls can be successfully","page_number":148,"box":{"x":116,"y":738,"width":709,"height":12}},{"id":"646e4dcd-e9e7-4a7e-9118-12b88e644348","block_type":"box","text":"employed.","page_number":148,"box":{"x":116,"y":754,"width":76,"height":12}},{"id":"ba3e5a73-8694-48d3-8f06-56def09f70bb","block_type":"box","text":"Utility Industries.","page_number":148,"box":{"x":117,"y":785,"width":134,"height":12}},{"id":"1a9eac99-f222-46f0-9839-6a1cb62321ec","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an","page_number":148,"box":{"x":259,"y":785,"width":566,"height":12}},{"id":"79470772-9995-4353-8b61-348efbe40f88","block_type":"box","text":"adequate return on invested capital, difficulty in financing large construction programs during an","page_number":148,"box":{"x":116,"y":800,"width":710,"height":12}},{"id":"96011a5e-f6f7-4252-86e7-23f0945404a7","block_type":"box","text":"inflationary period, restrictions on operations and increased cost and delays attributable to","page_number":148,"box":{"x":117,"y":816,"width":667,"height":12}},{"id":"f7943a04-5383-47e7-89c3-5e92c9f44914","block_type":"box","text":"environmental considerations and regulation, difficulty in raising capital in adequate amounts on","page_number":148,"box":{"x":116,"y":831,"width":715,"height":12}},{"id":"1cf015ab-ddbd-4297-9cec-4f56c788601c","block_type":"box","text":"reasonable terms in periods of high inflation and unsettled capital markets, technological innovations","page_number":148,"box":{"x":117,"y":847,"width":750,"height":12}},{"id":"13a3f64f-d2c1-4eb4-baa4-a6d083e19979","block_type":"box","text":"that may render existing plants, equipment or products obsolete, the potential impact of natural or","page_number":148,"box":{"x":116,"y":862,"width":729,"height":12}},{"id":"1fc08ecf-980e-41fe-b9e8-4b89515fb1cd","block_type":"box","text":"man-made disasters, increased costs and reduced availability of certain types of fuel, occasional","page_number":148,"box":{"x":117,"y":878,"width":721,"height":12}},{"id":"db3af554-bb2c-47b5-bc3a-b94354b8158b","block_type":"box","text":"II-98","page_number":148,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"a6af4008-51af-4572-99c4-5a127ed58088","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":148,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"80fb2f0c-590e-46e3-81a4-b7c48a5f1df6","block_type":"box","text":"reduced availability and high costs of natural gas for resale, the effects of energy conservation, the","page_number":149,"box":{"x":117,"y":87,"width":736,"height":12}},{"id":"2ee71bcd-ed90-4e80-8a91-d468f4934399","block_type":"box","text":"effects of a national energy policy and lengthy delays and greatly increased costs and other problems","page_number":149,"box":{"x":116,"y":102,"width":759,"height":13}},{"id":"6525a567-64ef-4776-af52-7301c76b4df0","block_type":"box","text":"associated with the design, construction, licensing, regulation and operation of nuclear facilities for","page_number":149,"box":{"x":116,"y":118,"width":735,"height":12}},{"id":"90f088d6-6de8-4a1b-a3f1-9b5f79545c3f","block_type":"box","text":"electric generation, including, among other considerations, the problems associated with the use of","page_number":149,"box":{"x":116,"y":134,"width":740,"height":12}},{"id":"2e4a55f1-2eb3-4a52-a252-11a03250d0aa","block_type":"box","text":"radioactive materials and the disposal of radioactive wastes. There are substantial differences among","page_number":149,"box":{"x":117,"y":149,"width":757,"height":12}},{"id":"17b0c2a5-9290-4231-af57-38ddabd41384","block_type":"box","text":"the regulatory practices and policies of various jurisdictions, and any given regulatory agency may","page_number":149,"box":{"x":116,"y":165,"width":732,"height":12}},{"id":"16b96fe0-7ce9-4537-857b-25780c587b6f","block_type":"box","text":"make major shifts in policy from time to time. There is no assurance that regulatory authorities will, in","page_number":149,"box":{"x":117,"y":180,"width":752,"height":12}},{"id":"1b9964a2-65dd-4067-bece-92e3efc474b3","block_type":"box","text":"the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":149,"box":{"x":116,"y":196,"width":716,"height":12}},{"id":"a5ecee3f-e2e4-4560-b0f0-350fe772e77b","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future","page_number":149,"box":{"x":116,"y":211,"width":735,"height":12}},{"id":"42a1f112-a6a7-4eb8-b392-84f0e6eb8c12","block_type":"box","text":"regulatory legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the","page_number":149,"box":{"x":117,"y":227,"width":771,"height":12}},{"id":"bd379cbd-11c5-4cf4-afd9-ac6c8fb21af2","block_type":"box","text":"issuers of securities held in the Fund’s portfolio may own or operate nuclear generating facilities.","page_number":149,"box":{"x":117,"y":242,"width":720,"height":12}},{"id":"45d07167-df46-4eab-b55c-6b5f8efa780b","block_type":"box","text":"Governmental authorities may from time to time review existing policies and impose additional","page_number":149,"box":{"x":117,"y":258,"width":702,"height":12}},{"id":"c1a4b14a-6093-4d5d-a094-984cd85c5dca","block_type":"box","text":"requirements governing the licensing, construction and operation of nuclear power plants. Prolonged","page_number":149,"box":{"x":117,"y":273,"width":751,"height":12}},{"id":"a58cc64e-0b81-49e4-abad-fed88943063c","block_type":"box","text":"changes in climatic conditions can also have a significant impact on both the revenues of an electric","page_number":149,"box":{"x":116,"y":289,"width":746,"height":12}},{"id":"0cf11148-8d79-4c12-9934-185951547273","block_type":"box","text":"and gas utility as well as the expenses of a utility, particularly a hydro-based electric utility.","page_number":149,"box":{"x":116,"y":304,"width":675,"height":12}},{"id":"61a80e91-31bd-405c-ad1b-6a98731af5c0","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic","page_number":149,"box":{"x":117,"y":335,"width":747,"height":12}},{"id":"e50ddd23-258b-4987-abb2-da7e12d9afaa","block_type":"box","text":"and international competition, and governmental limitations on rates charged to customers. The value","page_number":149,"box":{"x":116,"y":351,"width":759,"height":12}},{"id":"9d997274-cc60-40b9-bf0a-7b50a8da1cce","block_type":"box","text":"of regulated utility debt securities and, to a lesser extent, equity securities, tends to have an inverse","page_number":149,"box":{"x":116,"y":366,"width":743,"height":12}},{"id":"fc929fe5-0420-4c4c-a817-bfd33a180740","block_type":"box","text":"relationship to the movement of interest rates and therefore may lead to volatility in performance.","page_number":149,"box":{"x":117,"y":382,"width":723,"height":12}},{"id":"da43c431-4d02-49e0-b3d3-14cd1cc7f4a6","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the","page_number":149,"box":{"x":117,"y":413,"width":771,"height":12}},{"id":"f72e2909-3650-4515-9d77-8a4a12caf388","block_type":"box","text":"United States, most utility companies are regulated by state and/or federal authorities. Such regulation","page_number":149,"box":{"x":117,"y":428,"width":764,"height":12}},{"id":"6282e2f2-5e9c-4bcb-8bc1-c3373505d8a2","block_type":"box","text":"is intended to ensure appropriate standards of service and adequate capacity to meet public demand.","page_number":149,"box":{"x":117,"y":444,"width":759,"height":12}},{"id":"73f9830f-1ca3-4772-bdd9-e4f56ad251cd","block_type":"box","text":"Generally, prices are also regulated in the United States and in foreign countries with the intention of","page_number":149,"box":{"x":117,"y":459,"width":750,"height":12}},{"id":"d0eb2404-4b2b-49e0-9664-8099a84269a5","block_type":"box","text":"protecting the public while ensuring that the rate of return earned by utility companies is sufficient to","page_number":149,"box":{"x":117,"y":475,"width":744,"height":12}},{"id":"558125c6-5b11-41d4-bd4e-a89fb78cddc7","block_type":"box","text":"allow them to attract capital in order to grow and continue to provide appropriate services. There can","page_number":149,"box":{"x":116,"y":490,"width":751,"height":12}},{"id":"a870fcc5-a538-42d5-9780-6c26ba456664","block_type":"box","text":"be no assurance that such pricing policies or rates of return will continue in the future.","page_number":149,"box":{"x":117,"y":506,"width":640,"height":12}},{"id":"b34adebb-5f3d-466f-8916-9caa8bed7016","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in","page_number":149,"box":{"x":116,"y":537,"width":738,"height":12}},{"id":"c72ad392-f825-4cbf-ba29-db43faa84191","block_type":"box","text":"foreign countries. In recent years, changes in regulation in the United States increasingly have allowed","page_number":149,"box":{"x":116,"y":552,"width":767,"height":12}},{"id":"d2d07da9-a315-4792-b60c-7228542d6896","block_type":"box","text":"utility companies to provide services and products outside their traditional geographic areas and lines","page_number":149,"box":{"x":117,"y":568,"width":755,"height":12}},{"id":"aaee61c8-8f24-4009-a1e6-acc9cef298d3","block_type":"box","text":"of business, creating new areas of competition within the industries. In some instances, utility","page_number":149,"box":{"x":116,"y":583,"width":696,"height":12}},{"id":"c9f156aa-faf7-4435-8713-20d3ac7ec199","block_type":"box","text":"companies are operating on an unregulated basis. Because of trends toward deregulation and the","page_number":149,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"79efd5eb-a465-4da5-8c58-2cb6a5604e37","block_type":"box","text":"evolution of independent power producers as well as new entrants to the field of telecommunications,","page_number":149,"box":{"x":116,"y":614,"width":757,"height":12}},{"id":"46bf3310-dd54-479f-ba3b-1d1c1d3327e9","block_type":"box","text":"non-regulated providers of utility services have become a significant part of their respective industries.","page_number":149,"box":{"x":117,"y":630,"width":761,"height":12}},{"id":"98edf806-a348-4ed3-a85d-c71ca23a4e49","block_type":"box","text":"The Manager believes that the emergence of competition and deregulation will result in certain utility","page_number":149,"box":{"x":116,"y":645,"width":750,"height":12}},{"id":"a542496a-55cb-41fb-9793-b03c909bca4b","block_type":"box","text":"companies being able to earn more than their traditional regulated rates of return, while others may be","page_number":149,"box":{"x":116,"y":661,"width":759,"height":12}},{"id":"eaece0d9-f67a-4074-81c8-dca675928411","block_type":"box","text":"forced to defend their core business from increased competition and may be less profitable. Reduced","page_number":149,"box":{"x":116,"y":676,"width":751,"height":12}},{"id":"0b79f44e-58f3-4659-83c9-baddd5290bde","block_type":"box","text":"profitability, as well as new uses of funds (such as for expansion, operations or stock buybacks) could","page_number":149,"box":{"x":117,"y":692,"width":754,"height":12}},{"id":"47b51b2b-8a1a-40b2-9a93-79760788c41d","block_type":"box","text":"result in cuts in dividend payout rates. As deregulation allows utility companies to diversify outside of","page_number":149,"box":{"x":117,"y":707,"width":746,"height":12}},{"id":"f566eb61-0867-4524-901f-2121f19fbe55","block_type":"box","text":"their original geographic regions and their traditional lines of business, utility companies may engage in","page_number":149,"box":{"x":116,"y":723,"width":764,"height":12}},{"id":"2e8e61f0-917e-4d00-a26a-20b9a3055eb9","block_type":"box","text":"riskier ventures. Therefore, deregulation may eliminate restrictions on the maximum level of profits of","page_number":149,"box":{"x":117,"y":738,"width":749,"height":12}},{"id":"f34ef6bc-4e4b-4151-95de-9bc74cc87104","block_type":"box","text":"certain utility companies, but may also subject these companies to greater risk of loss. The Manager","page_number":149,"box":{"x":116,"y":754,"width":745,"height":12}},{"id":"eebd1ea9-dceb-4e74-bab6-a574c2812d51","block_type":"box","text":"seeks to take advantage of favorable investment opportunities that may arise from these structural","page_number":149,"box":{"x":116,"y":769,"width":730,"height":12}},{"id":"dfa24d63-3de8-41a2-be33-0be131ba2fab","block_type":"box","text":"changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":149,"box":{"x":116,"y":785,"width":741,"height":12}},{"id":"cb6e6bf7-2955-4e34-ae03-bf5d48a91cb6","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":149,"box":{"x":117,"y":816,"width":749,"height":12}},{"id":"75667575-fb42-4089-96da-cdee818496c5","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by","page_number":149,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"fba8c78a-9bbe-41ac-afd4-fe9c1fd7eedf","block_type":"box","text":"their respective governments than utilities in the United States and, as in the United States, generally","page_number":149,"box":{"x":116,"y":847,"width":755,"height":12}},{"id":"4c098e11-ca88-429c-924e-702a0e88ef78","block_type":"box","text":"are required to seek government approval for rate increases. In addition, many foreign utilities use","page_number":149,"box":{"x":116,"y":862,"width":733,"height":12}},{"id":"9889d289-de7d-4e8e-9f2b-b5a0905d552f","block_type":"box","text":"fuels that may cause more pollution than those used in the United States, which may require such","page_number":149,"box":{"x":116,"y":878,"width":731,"height":12}},{"id":"6508715c-1a3e-45e1-a82c-60200c226b44","block_type":"box","text":"II-99","page_number":149,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"7dbaf229-afa7-4e0e-8678-3d2bc60965e7","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":149,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"5ed6af70-af64-4ee7-807c-16c7a27de9d9","block_type":"box","text":"utilities to invest in pollution control equipment to meet any proposed pollution restrictions. Foreign","page_number":150,"box":{"x":117,"y":87,"width":733,"height":12}},{"id":"31de56a4-4c6d-4730-82d9-9a26df3a1f44","block_type":"box","text":"regulatory systems vary from country to country and may evolve in ways different from regulation in the","page_number":150,"box":{"x":117,"y":102,"width":770,"height":13}},{"id":"756987f1-9aa3-4947-9a10-0bf8a76b2b27","block_type":"box","text":"United States.","page_number":150,"box":{"x":117,"y":118,"width":109,"height":10}},{"id":"1c25376c-5c63-4257-a542-36f77c8d991e","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment","page_number":150,"box":{"x":116,"y":149,"width":676,"height":12}},{"id":"46663e84-bd38-4ae0-8357-04dcabb95c1d","block_type":"box","text":"opportunities throughout the world. For example, the rapid growth of certain foreign economies will","page_number":150,"box":{"x":116,"y":165,"width":736,"height":12}},{"id":"79b452c2-72c1-402a-8e86-9da7ad2776cf","block_type":"box","text":"necessitate expansion of capacity in the utility industries in those countries. Although many foreign","page_number":150,"box":{"x":117,"y":180,"width":735,"height":12}},{"id":"d4beb712-44df-4127-abbd-e63c657dd8d1","block_type":"box","text":"utility companies currently are government-owned, thereby limiting current investment opportunities for","page_number":150,"box":{"x":117,"y":196,"width":766,"height":12}},{"id":"d6cf863b-dfdc-49b5-b179-0ccf2ba18192","block_type":"box","text":"a Fund, the Manager believes that, in order to attract significant capital for growth, foreign governments","page_number":150,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"42fbce80-8678-4426-9b71-6862f0d68628","block_type":"box","text":"are likely to seek global investors through the privatization of their utility industries. Privatization, which","page_number":150,"box":{"x":116,"y":227,"width":765,"height":12}},{"id":"b13d6e0a-776a-49a0-bacf-a55f91482dba","block_type":"box","text":"refers to the trend toward investor ownership of assets rather than government ownership, is expected","page_number":150,"box":{"x":117,"y":242,"width":764,"height":12}},{"id":"c716fa10-c2d5-48e8-b79a-83864a13948d","block_type":"box","text":"to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":150,"box":{"x":116,"y":258,"width":699,"height":12}},{"id":"145231eb-911f-46de-b5bb-6973fa72596e","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign","page_number":150,"box":{"x":116,"y":273,"width":726,"height":12}},{"id":"9d31132f-5bde-409a-89af-d5b8b0fc7c53","block_type":"box","text":"markets will increase.","page_number":150,"box":{"x":117,"y":289,"width":164,"height":9}},{"id":"21a2a266-9d17-4466-bebb-f839d80216be","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and","page_number":150,"box":{"x":116,"y":320,"width":732,"height":12}},{"id":"44eb1eb2-00f2-40ca-8d9d-c18233191fe4","block_type":"box","text":"development in the geographic areas in which they do business. The Manager will take into account","page_number":150,"box":{"x":116,"y":335,"width":747,"height":12}},{"id":"6e0a388b-ff1f-4069-b270-47c73b472ea8","block_type":"box","text":"anticipated economic growth rates and other economic developments when selecting securities of","page_number":150,"box":{"x":116,"y":351,"width":732,"height":12}},{"id":"da554e5d-008d-46fb-9adf-38fd2faa87e7","block_type":"box","text":"utility companies.","page_number":150,"box":{"x":117,"y":366,"width":132,"height":12}},{"id":"cb00bb74-2b6f-4c49-9a23-57d62ab7b52b","block_type":"box","text":"Electric.","page_number":150,"box":{"x":116,"y":397,"width":58,"height":10}},{"id":"137016b6-cbba-4fb5-9112-9d28debbaf17","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the","page_number":150,"box":{"x":176,"y":397,"width":630,"height":12}},{"id":"14388616-cdd6-48d8-a809-b6f976277470","block_type":"box","text":"generation, transmission and sale of electric energy, although many also provide other energy-related","page_number":150,"box":{"x":116,"y":413,"width":760,"height":12}},{"id":"62d1348e-0f87-4097-8fcc-859986747997","block_type":"box","text":"services. In the past, electric utility companies, in general, have been favorably affected by lower fuel","page_number":150,"box":{"x":116,"y":428,"width":754,"height":12}},{"id":"4f054101-0b8a-4843-bb5b-fc2e73297659","block_type":"box","text":"and financing costs and the full or near completion of major construction programs. In addition, many","page_number":150,"box":{"x":116,"y":444,"width":754,"height":12}},{"id":"61741e6c-1999-43b8-bb5e-299f76c768fa","block_type":"box","text":"of these companies have generated cash flows in excess of current operating expenses and","page_number":150,"box":{"x":116,"y":459,"width":690,"height":12}},{"id":"5a22026c-59b7-4a47-9d59-586e5a96853e","block_type":"box","text":"construction expenditures, permitting some degree of diversification into unregulated businesses.","page_number":150,"box":{"x":116,"y":475,"width":727,"height":12}},{"id":"2f52f1fb-a0b1-41e4-8d1f-242a5a077c81","block_type":"box","text":"Some electric utilities have also taken advantage of the right to sell power outside of their traditional","page_number":150,"box":{"x":116,"y":490,"width":744,"height":12}},{"id":"1c35db8e-99a5-41f9-ad0b-97978b98ccc9","block_type":"box","text":"geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":150,"box":{"x":116,"y":506,"width":758,"height":12}},{"id":"d8c8a068-9280-4f95-9bd7-357f0f1a7947","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital","page_number":150,"box":{"x":117,"y":521,"width":714,"height":12}},{"id":"5017c9eb-1894-4c55-8dc6-2701c8bfd9e9","block_type":"box","text":"construction programs, costs associated with compliance with environmental and safety regulations","page_number":150,"box":{"x":116,"y":537,"width":744,"height":12}},{"id":"0bfb34d4-8fad-4ec6-b67b-e5aeed7b6b1c","block_type":"box","text":"and changes in the regulatory climate. As interest rates declined, many utilities refinanced high cost","page_number":150,"box":{"x":116,"y":552,"width":744,"height":12}},{"id":"494be9bf-7a9e-4711-9459-7d4e3fed949b","block_type":"box","text":"debt and in doing so improved their fixed charges coverage. Regulators, however, lowered allowed","page_number":150,"box":{"x":116,"y":568,"width":740,"height":12}},{"id":"fd4f819b-ffc0-4c4b-a0e3-11ec0a0e4a02","block_type":"box","text":"rates of return as interest rates declined and thereby caused the benefits of the rate declines to be","page_number":150,"box":{"x":117,"y":583,"width":734,"height":12}},{"id":"778e4b7d-b6c2-4fb7-a67b-10ce8038d6a1","block_type":"box","text":"shared wholly or in part with customers. In a period of rising interest rates, the allowed rates of return","page_number":150,"box":{"x":116,"y":599,"width":754,"height":12}},{"id":"2e3749ee-5012-4150-afa2-06cbc5518cf4","block_type":"box","text":"may not keep pace with the utilities’ increased costs. The construction and operation of nuclear power","page_number":150,"box":{"x":117,"y":614,"width":760,"height":12}},{"id":"2c40923b-274e-4bef-932d-09e4bb410c97","block_type":"box","text":"facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear Regulatory","page_number":150,"box":{"x":116,"y":630,"width":686,"height":12}},{"id":"87cc4e62-1e86-4489-9e07-637e4f8359a9","block_type":"box","text":"Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in","page_number":150,"box":{"x":117,"y":645,"width":727,"height":12}},{"id":"d73ed990-9523-4fc8-a8f6-86f2faca178d","block_type":"box","text":"higher operating costs and higher capital expenditures, with the risk that the regulators may disallow","page_number":150,"box":{"x":117,"y":661,"width":743,"height":12}},{"id":"6b314d49-30a3-4e9c-9ebc-c6b95c940c38","block_type":"box","text":"inclusion of these costs in rate authorizations or the risk that a company may not be permitted to","page_number":150,"box":{"x":117,"y":676,"width":713,"height":12}},{"id":"4984e0aa-2000-4a6d-9f42-d75c6c52c06c","block_type":"box","text":"operate or complete construction of a facility. In addition, operators of nuclear power plants may be","page_number":150,"box":{"x":116,"y":692,"width":735,"height":12}},{"id":"921cfa30-b514-406e-98ab-14b9d08a9a77","block_type":"box","text":"subject to significant costs for disposal of nuclear fuel and for decommissioning such plants.","page_number":150,"box":{"x":116,"y":707,"width":681,"height":12}},{"id":"9055423d-536e-4e87-9967-2d78fea7e77d","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected","page_number":150,"box":{"x":116,"y":738,"width":760,"height":12}},{"id":"fd099b9a-4b17-4819-aeac-cf3fddda823c","block_type":"box","text":"to be impacted to a greater extent in the future by the division of their asset base. Electric utility","page_number":150,"box":{"x":116,"y":754,"width":706,"height":12}},{"id":"59040f7a-74f8-4015-8ee0-41d56c5f6db8","block_type":"box","text":"companies that focus more on the generation of electricity may be assigned less favorable ratings as","page_number":150,"box":{"x":116,"y":769,"width":749,"height":12}},{"id":"35b62466-8b69-46a2-ba8a-027c6388739b","block_type":"box","text":"this business is expected to be competitive and the least regulated. On the other hand, companies that","page_number":150,"box":{"x":116,"y":785,"width":763,"height":12}},{"id":"d13c5e02-f07e-4af3-b127-fea4dbe21cdf","block_type":"box","text":"focus on transmission and distribution, which is expected to be the least competitive and the more","page_number":150,"box":{"x":116,"y":800,"width":727,"height":12}},{"id":"2805f13d-0cfb-40f8-bca3-61ec65695fdd","block_type":"box","text":"regulated part of the business, may see higher ratings given the greater predictability of cash flow.","page_number":150,"box":{"x":117,"y":816,"width":726,"height":12}},{"id":"97556b9b-825a-4d43-910f-235de858f09b","block_type":"box","text":"A number of states are considering or have","page_number":150,"box":{"x":116,"y":847,"width":319,"height":12}},{"id":"4f9c29a4-8364-4cf5-8d13-29cfc48d989e","block_type":"box","text":"enacted deregulation proposals. The introduction of","page_number":150,"box":{"x":436,"y":847,"width":379,"height":12}},{"id":"51af68bb-ecb2-4e40-8a02-c32410a167a8","block_type":"box","text":"competition into the industry as a result of such","page_number":150,"box":{"x":116,"y":862,"width":342,"height":12}},{"id":"1bfb7c73-d6cb-4204-b426-ceaa772dc4bf","block_type":"box","text":"deregulation has at times resulted in lower revenue,","page_number":150,"box":{"x":458,"y":862,"width":386,"height":12}},{"id":"19399dd9-90e7-4b6d-96e4-8c36492499f6","block_type":"box","text":"lower credit ratings, increased default risk, and lower","page_number":150,"box":{"x":117,"y":878,"width":386,"height":12}},{"id":"b396c37c-9bb6-4283-9ede-c543a74b5f9b","block_type":"box","text":"electric utility security prices. Such increased","page_number":150,"box":{"x":504,"y":878,"width":330,"height":12}},{"id":"07ce6e1b-339f-46c1-a081-1cbd131c54ad","block_type":"box","text":"II-100","page_number":150,"box":{"x":479,"y":909,"width":41,"height":9}},{"id":"c2ff9b73-3684-4dd2-a588-75a244e4646d","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":150,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"ee8efc58-3dff-4721-9f7b-2712174e9258","block_type":"box","text":"competition may also cause long-term contracts, whic","page_number":151,"box":{"x":116,"y":87,"width":391,"height":12}},{"id":"16aaddaf-376e-4cfb-9705-9b2f4ccdc8bc","block_type":"box","text":"h electric utilities previously entered into to buy","page_number":151,"box":{"x":508,"y":87,"width":343,"height":12}},{"id":"654e1fd2-59f8-433a-aa1c-3e8ce1ea1e07","block_type":"box","text":"power, to become “stranded assets” which have no economic value. Any loss associated with such","page_number":151,"box":{"x":117,"y":102,"width":723,"height":13}},{"id":"75f11806-3317-423c-9d95-ad6e69e022a2","block_type":"box","text":"contracts must be absorbed by ratepayers and investors.","page_number":151,"box":{"x":116,"y":118,"width":413,"height":12}},{"id":"caff7f74-e799-432a-804c-9989da27f6ca","block_type":"box","text":"In addition, some electric utilities have acquired","page_number":151,"box":{"x":530,"y":118,"width":354,"height":12}},{"id":"e7428720-7254-43c7-8437-8a43250f7b80","block_type":"box","text":"electric utilities overseas to diversify, enhance ear","page_number":151,"box":{"x":116,"y":134,"width":362,"height":12}},{"id":"3b4acd3f-b474-4ef5-9b93-e16674e7596f","block_type":"box","text":"nings and gain experience in operating in a deregulated","page_number":151,"box":{"x":478,"y":134,"width":409,"height":12}},{"id":"1dd4612c-f610-4fc1-be93-60d34adb885a","block_type":"box","text":"environment. In some instances, such acquisitions","page_number":151,"box":{"x":116,"y":149,"width":366,"height":12}},{"id":"e4bee5fd-2b51-4abc-8bbf-51187cadd3a5","block_type":"box","text":"have involved significant borrowings, which have","page_number":151,"box":{"x":483,"y":149,"width":364,"height":12}},{"id":"bffd1b85-1a92-4059-a179-9b64c5166109","block_type":"box","text":"burdened the acquirer’s balance sheet. There is no assu","page_number":151,"box":{"x":117,"y":165,"width":408,"height":11}},{"id":"5898f957-5cac-4689-a48c-f57cf030dfff","block_type":"box","text":"rance that current deregulation proposals will be","page_number":151,"box":{"x":528,"y":165,"width":353,"height":12}},{"id":"adb886d6-fc8f-4ba0-ace8-a9713be8e35d","block_type":"box","text":"adopted. However, deregulation in any form could signi","page_number":151,"box":{"x":116,"y":180,"width":400,"height":12}},{"id":"7805766a-473c-4878-9e86-2e3f6ace3ae9","block_type":"box","text":"ficantly impact the electric utilities industry.","page_number":151,"box":{"x":517,"y":180,"width":314,"height":12}},{"id":"61c1ceef-5a67-4e9a-b2c2-831540f33b6d","block_type":"box","text":"Telecommunications.","page_number":151,"box":{"x":118,"y":211,"width":155,"height":10}},{"id":"efe33a1a-f847-48da-b176-a9d3771873ce","block_type":"box","text":"The telecommunications industry today includes both traditional telephone","page_number":151,"box":{"x":275,"y":211,"width":561,"height":12}},{"id":"fd6d8680-14f1-4aac-b460-8ad74b507bd6","block_type":"box","text":"companies, with a history of broad market coverage and highly regulated businesses, and cable","page_number":151,"box":{"x":116,"y":227,"width":717,"height":12}},{"id":"f943a99e-3bf0-4745-b58e-1a9e79514067","block_type":"box","text":"companies, which began as small, lightly regulated businesses focused on limited markets. Today","page_number":151,"box":{"x":116,"y":242,"width":733,"height":12}},{"id":"e4d4438d-339e-4ae9-b2b9-5069761f0ebf","block_type":"box","text":"these two historically different businesses are converging in an industry that is trending toward larger,","page_number":151,"box":{"x":116,"y":258,"width":758,"height":12}},{"id":"5c381723-59a6-4c76-90ec-78588e18dc5f","block_type":"box","text":"competitive national and international markets with an emphasis on deregulation. Companies that","page_number":151,"box":{"x":116,"y":273,"width":729,"height":12}},{"id":"b29748dc-9751-418f-832f-18b71f567d09","block_type":"box","text":"distribute telephone services and provide access to the telephone networks still comprise the greatest","page_number":151,"box":{"x":116,"y":289,"width":760,"height":12}},{"id":"14fafdc7-ff21-4b38-991a-30dd7a5a5e24","block_type":"box","text":"portion of this segment, but non-regulated activities such as wireless telephone services, paging, data","page_number":151,"box":{"x":117,"y":304,"width":759,"height":12}},{"id":"4cf0e226-6a9f-4bd4-8ed4-5d731fc57550","block_type":"box","text":"transmission and processing, equipment retailing, computer software and hardware and internet","page_number":151,"box":{"x":116,"y":320,"width":718,"height":12}},{"id":"2ac7a2df-3b2e-4628-acdc-288e3409c2e7","block_type":"box","text":"services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":151,"box":{"x":116,"y":335,"width":759,"height":12}},{"id":"052f4f72-b5a0-45a2-b524-ec1834b81450","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies.","page_number":151,"box":{"x":116,"y":351,"width":752,"height":12}},{"id":"68f0969b-23dc-4d48-b51f-56178cfe5d4e","block_type":"box","text":"The presence of unregulated companies in this industry and the entry of traditional telephone","page_number":151,"box":{"x":116,"y":366,"width":696,"height":12}},{"id":"9881ff7c-f72c-43e2-9eb1-b7f38dfa93a3","block_type":"box","text":"companies into unregulated or less regulated businesses provide significant investment opportunities","page_number":151,"box":{"x":116,"y":382,"width":755,"height":12}},{"id":"1e53983a-1532-4933-b6d2-e9a25da01cd4","block_type":"box","text":"with companies that may increase their earnings at faster rates than had been allowed in traditional","page_number":151,"box":{"x":116,"y":397,"width":742,"height":12}},{"id":"4e8b5ac2-589b-4b83-969d-ac9bbc35aa74","block_type":"box","text":"regulated businesses. Still, increasing competition, technological innovations and other structural","page_number":151,"box":{"x":117,"y":413,"width":722,"height":12}},{"id":"40dce0fa-9f6c-41f6-be7a-88aef822301c","block_type":"box","text":"changes could adversely affect the profitability of such utilities and the growth rate of their dividends.","page_number":151,"box":{"x":116,"y":428,"width":750,"height":12}},{"id":"abbe5314-597e-4377-9882-54b43f8ddccb","block_type":"box","text":"Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":151,"box":{"x":117,"y":444,"width":725,"height":12}},{"id":"d2acaf03-d3ee-42d4-a58e-338b090b91d7","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility","page_number":151,"box":{"x":116,"y":459,"width":718,"height":12}},{"id":"57f428c7-3418-4689-a483-c5440c266613","block_type":"box","text":"services to both residential, corporate and governmental customers.","page_number":151,"box":{"x":116,"y":475,"width":511,"height":12}},{"id":"261677d3-e356-472f-b9a3-8faadae6d895","block_type":"box","text":"Gas.","page_number":151,"box":{"x":117,"y":506,"width":33,"height":9}},{"id":"e6a84c32-2d77-41f1-9525-121abb04442a","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes.","page_number":151,"box":{"x":151,"y":506,"width":733,"height":12}},{"id":"1b4a7f57-919c-4024-9880-b0fed21c135d","block_type":"box","text":"In the United States, interstate transmission companies are regulated by the Federal Energy","page_number":151,"box":{"x":117,"y":521,"width":689,"height":12}},{"id":"d9971a3c-0a47-4d22-abaa-976dd1082b81","block_type":"box","text":"Regulatory Commission, which is reducing its regulation of the industry. Many companies have","page_number":151,"box":{"x":117,"y":537,"width":709,"height":12}},{"id":"d60d346f-4a78-402b-accd-bfefb72a52fa","block_type":"box","text":"diversified into oil and gas exploration and development, making returns more sensitive to energy","page_number":151,"box":{"x":116,"y":552,"width":728,"height":12}},{"id":"3279f2e9-6413-46c1-aed0-4b9cf97fefad","block_type":"box","text":"prices. In the recent decade, gas utility companies have been adversely affected by disruptions in the","page_number":151,"box":{"x":117,"y":568,"width":756,"height":12}},{"id":"b4615e0f-f5d4-4af0-9f4f-228660a07370","block_type":"box","text":"oil industry and have also been affected by increased concentration and competition. In the opinion of","page_number":151,"box":{"x":116,"y":583,"width":759,"height":12}},{"id":"159cdd79-af43-43f4-b66b-9064a0561bdd","block_type":"box","text":"the Manager, however, environmental considerations could improve the gas industry outlook in the","page_number":151,"box":{"x":116,"y":599,"width":738,"height":12}},{"id":"c83da645-bc41-41cf-833b-036eb56cf401","block_type":"box","text":"future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":151,"box":{"x":116,"y":614,"width":709,"height":12}},{"id":"97626031-3a5c-494e-8647-6e3f8ea297f6","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for","page_number":151,"box":{"x":117,"y":630,"width":702,"height":12}},{"id":"05208228-2680-4fa3-8739-ffa6414d68d6","block_type":"box","text":"electricity generation. However, technological or regulatory changes within the industry may delay or","page_number":151,"box":{"x":116,"y":645,"width":750,"height":12}},{"id":"7ecfab14-4316-4f66-85a3-cf27916796bc","block_type":"box","text":"prevent this result.","page_number":151,"box":{"x":117,"y":661,"width":135,"height":12}},{"id":"a8c72203-7924-4474-afc5-30f4c9d429d9","block_type":"box","text":"Water.","page_number":151,"box":{"x":118,"y":692,"width":46,"height":9}},{"id":"55109adf-5228-4792-9bf5-a84fa1930661","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United","page_number":151,"box":{"x":170,"y":692,"width":695,"height":12}},{"id":"f27baae5-1d7c-4920-b338-bede10cbcba1","block_type":"box","text":"States and around the world the industry is highly fragmented because most of the supplies are owned","page_number":151,"box":{"x":116,"y":707,"width":762,"height":12}},{"id":"cc0206b8-8542-48f8-8f90-31217d9dc01c","block_type":"box","text":"by local authorities. Companies in this industry are generally mature and are experiencing little or no","page_number":151,"box":{"x":117,"y":723,"width":743,"height":12}},{"id":"fde5719b-dbee-4eba-931e-05f0751f2cb3","block_type":"box","text":"per capita volume growth. In the opinion of the Manager, there may be opportunities for certain","page_number":151,"box":{"x":117,"y":738,"width":702,"height":12}},{"id":"677e204c-da53-4e81-a08e-dce773bc5abb","block_type":"box","text":"companies to acquire other water utility companies and for foreign acquisition of domestic companies.","page_number":151,"box":{"x":116,"y":754,"width":755,"height":12}},{"id":"75f5e141-0086-4071-ba91-0d792c8bb0f3","block_type":"box","text":"The Manager believes that favorable investment opportunities may result from consolidation of this","page_number":151,"box":{"x":116,"y":769,"width":733,"height":12}},{"id":"cecaa892-ef9a-4d18-bf78-cf5c090a9233","block_type":"box","text":"segment. As with other utilities, however, increased regulation, increased costs and potential","page_number":151,"box":{"x":116,"y":785,"width":687,"height":12}},{"id":"0d16b1bc-0aaa-4659-aadc-ead5cbb0a752","block_type":"box","text":"disruptions in supply may adversely affect investments in water supply utilities.","page_number":151,"box":{"x":116,"y":800,"width":582,"height":12}},{"id":"39bf1bcd-bbbb-4eb6-bd1e-b7f2a7d01a68","block_type":"box","text":"Utility Industries Generally.","page_number":151,"box":{"x":117,"y":831,"width":197,"height":12}},{"id":"b03ae72d-64a6-47a3-8ad0-929432d27eb4","block_type":"box","text":"There can be no assurance that the positive developments noted above,","page_number":151,"box":{"x":316,"y":831,"width":548,"height":12}},{"id":"a166fa85-eaea-470c-b663-700d6249f400","block_type":"box","text":"including those relating to privatization and changing regulation, will occur or that risk factors other than","page_number":151,"box":{"x":117,"y":847,"width":771,"height":12}},{"id":"c3b461a4-14b4-483f-878d-c71c5d75c801","block_type":"box","text":"those noted above will not develop in the future.","page_number":151,"box":{"x":116,"y":862,"width":361,"height":12}},{"id":"2935bd77-8b09-46a6-8d29-0117d957858d","block_type":"box","text":"II-101","page_number":151,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"1529cd33-7e0c-412c-a250-a6e856583869","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":151,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"61a791a2-4992-4d59-b13b-8729e2fd3e57","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":152,"box":{"x":118,"y":87,"width":643,"height":12}},{"id":"89870445-7ceb-498d-ad7f-4097f89955c9","block_type":"box","text":"A Fund may","page_number":152,"box":{"x":762,"y":87,"width":100,"height":12}},{"id":"2d479cbb-9f74-4c9a-a113-ae92f869b94d","block_type":"box","text":"purchase or sell securities that it is entitled to receive on a when-issued basis. A Fund may also","page_number":152,"box":{"x":117,"y":103,"width":713,"height":12}},{"id":"27518a57-061f-4773-bc06-de056fba812f","block_type":"box","text":"purchase or sell securities on a delayed delivery basis or through a forward commitment (including on","page_number":152,"box":{"x":117,"y":118,"width":758,"height":12}},{"id":"999f0911-0dc2-4f60-81d5-8d3fc5369e00","block_type":"box","text":"a TBA (to be announced) basis). These transactions involve the purchase or sale of securities by a","page_number":152,"box":{"x":116,"y":134,"width":739,"height":12}},{"id":"222a8024-56cc-4853-ad8f-552870885425","block_type":"box","text":"Fund at an established price with payment and delivery taking place in the future. The Fund enters into","page_number":152,"box":{"x":117,"y":149,"width":767,"height":12}},{"id":"e42b5751-7286-4302-8e92-3e0d88d69cba","block_type":"box","text":"these transactions to obtain what is considered an advantageous price to the Fund at the time of","page_number":152,"box":{"x":116,"y":165,"width":721,"height":12}},{"id":"9002d555-622d-44a7-bbb2-fecce1230544","block_type":"box","text":"entering into the transaction.","page_number":152,"box":{"x":116,"y":180,"width":217,"height":12}},{"id":"37ff1350-eadd-44f8-81a6-6371c97c6bcc","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the","page_number":152,"box":{"x":117,"y":211,"width":731,"height":12}},{"id":"14d96f8a-2841-4517-8acc-8162ebf76be2","block_type":"box","text":"Federal Reserve Bank of New York, a Fund or its counterparty generally will be required to post","page_number":152,"box":{"x":117,"y":227,"width":714,"height":12}},{"id":"82c7a2b4-7227-467d-ae34-7d4ab14cab81","block_type":"box","text":"collateral when entering into certain forward-settling transactions, including without limitation TBA","page_number":152,"box":{"x":116,"y":242,"width":726,"height":12}},{"id":"daed065a-3f74-4b24-baa0-08b87405ee28","block_type":"box","text":"transactions. FINRA rules have also been implemented that include mandatory margin requirements","page_number":152,"box":{"x":116,"y":258,"width":750,"height":12}},{"id":"70d7d55a-6c8a-4205-bf58-e93dfed96383","block_type":"box","text":"for the TBA market with limited exceptions. The collateralization of TBA trades is intended to mitigate","page_number":152,"box":{"x":116,"y":273,"width":754,"height":12}},{"id":"c49cd756-792b-4840-b710-d5eebc32b6ab","block_type":"box","text":"counterparty credit risk between trade and settlement, but could increase the cost of TBA transactions","page_number":152,"box":{"x":116,"y":289,"width":763,"height":12}},{"id":"779e61e1-2138-492b-98c4-1b1c6415cc5a","block_type":"box","text":"and impose added operational complexity.","page_number":152,"box":{"x":116,"y":304,"width":320,"height":12}},{"id":"fa4b0a9a-e90f-4354-a2e0-2a44f0dc6c6d","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a","page_number":152,"box":{"x":116,"y":335,"width":754,"height":12}},{"id":"ccdb580c-cc15-4ab2-a55e-584c60c5c3ef","block_type":"box","text":"security purchased or sold on a delayed delivery basis or through a forward commitment will be","page_number":152,"box":{"x":116,"y":351,"width":713,"height":12}},{"id":"f657d1fd-b699-4c56-8dda-cd382bd31c8b","block_type":"box","text":"delivered. Also, the value of securities in these transactions on the delivery date may be more or less","page_number":152,"box":{"x":116,"y":366,"width":755,"height":12}},{"id":"406c5e2f-a6fb-4492-b74d-3c3d72fa4fad","block_type":"box","text":"than the price paid by the Fund to purchase the securities. The Fund will lose money if the value of the","page_number":152,"box":{"x":116,"y":382,"width":766,"height":12}},{"id":"0c6f50e3-8122-473e-9b64-d7904a2f623b","block_type":"box","text":"security in such a transaction declines below the purchase price and will not benefit if the value of the","page_number":152,"box":{"x":116,"y":397,"width":757,"height":12}},{"id":"1a37880d-9f6c-465c-a135-2bf175ce3d21","block_type":"box","text":"security appreciates above the sale price during the commitment period.","page_number":152,"box":{"x":116,"y":413,"width":542,"height":12}},{"id":"c9151d72-e761-4140-a893-5c8aedcbcc9e","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a","page_number":152,"box":{"x":117,"y":444,"width":715,"height":12}},{"id":"13b1ed79-8a60-48a5-8679-16724867e4ae","block_type":"box","text":"commitment after it has been entered into, and may sell securities it has committed to purchase before","page_number":152,"box":{"x":116,"y":459,"width":767,"height":12}},{"id":"4e658e17-f3ec-4962-8a43-664544258343","block_type":"box","text":"those securities are delivered to the Fund on the settlement date. In these cases the Fund may realize","page_number":152,"box":{"x":116,"y":475,"width":764,"height":12}},{"id":"f0342189-ffd1-4af3-a841-043cb6d306a2","block_type":"box","text":"a taxable capital gain or loss.","page_number":152,"box":{"x":116,"y":490,"width":221,"height":12}},{"id":"2eb02ba1-22c7-4848-ad82-2e595aaa58f3","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other","page_number":152,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"2cfe8b72-5e7e-4d60-a679-bc5abc1eefea","block_type":"box","text":"party to consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss","page_number":152,"box":{"x":117,"y":537,"width":760,"height":12}},{"id":"4b8b7bbd-455b-4524-9e9c-6b02c3b0ca89","block_type":"box","text":"or missing an opportunity to obtain a price considered to be advantageous.","page_number":152,"box":{"x":116,"y":552,"width":561,"height":12}},{"id":"749aef9a-d851-4de0-9070-1d3dbe8bcced","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any","page_number":152,"box":{"x":116,"y":583,"width":688,"height":12}},{"id":"6cb84f73-7911-4100-8d1a-e51349319a86","block_type":"box","text":"subsequent fluctuations in their market value, is taken into account when determining the market value","page_number":152,"box":{"x":116,"y":599,"width":767,"height":12}},{"id":"bdf86537-1d5e-4be9-b652-0b27bb60eb6f","block_type":"box","text":"of a Fund starting on the day the Fund agrees to purchase the securities. The Fund does not earn","page_number":152,"box":{"x":116,"y":614,"width":732,"height":12}},{"id":"a5c2f04c-d6e4-47f2-a553-42b3eda42322","block_type":"box","text":"interest on the securities it has committed to purchase until they are paid for and delivered on the","page_number":152,"box":{"x":117,"y":630,"width":725,"height":12}},{"id":"1bf950ab-17ed-4e60-bb3c-2f2c0358d1c7","block_type":"box","text":"settlement date.","page_number":152,"box":{"x":116,"y":645,"width":124,"height":10}},{"id":"84131e7a-821b-421d-8ada-c547e2cc6fbd","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward","page_number":152,"box":{"x":117,"y":676,"width":740,"height":12}},{"id":"948d5303-212a-42fb-b052-8f0d88167aa8","block_type":"box","text":"settling securities (e.g., firm and standby commitments, including TBA commitments, and dollar rolls)","page_number":152,"box":{"x":116,"y":692,"width":747,"height":12}},{"id":"f309b3fe-0018-43a4-a6cd-2a06b1430bfb","block_type":"box","text":"and non-standard settlement cycle securities notwithstanding the limitation on the issuance of senior","page_number":152,"box":{"x":116,"y":707,"width":746,"height":12}},{"id":"0bee8d0b-d38e-4c87-bade-3f1d92318089","block_type":"box","text":"securities in Section 18 of the Investment Company Act, provided that the Fund intends to physically","page_number":152,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"19634ab1-2e49-49f5-a100-48a7b775654e","block_type":"box","text":"settle the transaction and the transaction will settle within 35 days of its trade date (the “Delayed","page_number":152,"box":{"x":116,"y":738,"width":719,"height":12}},{"id":"c2c45b6a-48e5-4024-9be4-652dc73dd22e","block_type":"box","text":"Settlement Securities Provision”). If a when-issued, forward-settling or non-standard settlement cycle","page_number":152,"box":{"x":116,"y":754,"width":749,"height":12}},{"id":"84329704-a07e-46d8-afa5-360528b09f84","block_type":"box","text":"security does not satisfy the Delayed-Settlement Securities Provision, then it is treated as a Derivatives","page_number":152,"box":{"x":116,"y":769,"width":765,"height":12}},{"id":"e6ece715-7015-4762-954f-662537790fed","block_type":"box","text":"Transaction under Rule 18f-4. See “—Derivatives—Regulation of Derivatives—Rule 18f-4 under the","page_number":152,"box":{"x":116,"y":785,"width":741,"height":12}},{"id":"8ff76a0f-9c10-4fec-98f3-d83a2f05176e","block_type":"box","text":"Investment Company Act” above.","page_number":152,"box":{"x":117,"y":800,"width":246,"height":12}},{"id":"75835859-4809-4262-aee6-a58f8a20f5a2","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":152,"box":{"x":117,"y":831,"width":761,"height":12}},{"id":"34f57a67-e86c-4785-b758-2f4c18d6dbc2","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many agreements with","page_number":152,"box":{"x":116,"y":847,"width":716,"height":12}},{"id":"22cd56f5-4899-4e19-bcb3-caa2dafff6f4","block_type":"box","text":"respect to when-issued, TBA and forward commitment transactions, terms that delay or restrict the","page_number":152,"box":{"x":117,"y":862,"width":736,"height":12}},{"id":"be9557fd-ad4d-4ac4-b1c5-82e989a00842","block_type":"box","text":"rights of counterparties, such as a Fund, to terminate such agreements, foreclose upon collateral,","page_number":152,"box":{"x":117,"y":878,"width":728,"height":12}},{"id":"69e3517a-7a39-4d7f-aad1-d03701b7684b","block_type":"box","text":"II-102","page_number":152,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"5a836851-fc87-4336-9767-448a5c6b7886","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":152,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"efb97c2a-d34e-47d5-9f9f-72223bfe53c1","block_type":"box","text":"exercise other default rights or restrict transfers of credit support in the event that the counterparty and/","page_number":153,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"108b08b9-eb55-4019-814f-c151b863b9e9","block_type":"box","text":"or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that","page_number":153,"box":{"x":116,"y":102,"width":744,"height":13}},{"id":"b7320b01-00de-453a-9dc8-2fcd12957223","block_type":"box","text":"these requirements, as well as potential additional government regulation and other developments in","page_number":153,"box":{"x":116,"y":118,"width":752,"height":12}},{"id":"2b375a9a-14bc-4f7e-b084-28d069917b81","block_type":"box","text":"the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":153,"box":{"x":116,"y":134,"width":735,"height":12}},{"id":"a48b4aaf-4fe6-451c-9a26-c1aabb07302a","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":153,"box":{"x":116,"y":149,"width":600,"height":12}},{"id":"4c25cbbd-ad8d-41a3-88e1-9880d07dbf3b","block_type":"box","text":"Yields and Ratings.","page_number":153,"box":{"x":118,"y":180,"width":152,"height":12}},{"id":"adc50263-6b91-4218-900e-8282a7a6e0b2","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including","page_number":153,"box":{"x":271,"y":180,"width":604,"height":12}},{"id":"51499f0e-7d8c-4284-964b-daaf1b48ea81","block_type":"box","text":"general market conditions, conditions in the particular market for the obligation, the financial condition","page_number":153,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"b94c11de-6be2-4db1-832a-8fe5cb2cdc5a","block_type":"box","text":"of the issuer, the size of the offering, the maturity of the obligation and the ratings of the issue. The","page_number":153,"box":{"x":116,"y":211,"width":738,"height":12}},{"id":"0c9df621-899d-417e-acb1-a7c3a5bce25f","block_type":"box","text":"ratings of Moody’s, Fitch and S&P represent their respective opinions as to the quality of the","page_number":153,"box":{"x":117,"y":227,"width":688,"height":12}},{"id":"e9aa45e6-3a5b-494b-bb0b-255886550ee9","block_type":"box","text":"obligations they undertake to rate. Ratings, however, are general and are not absolute standards of","page_number":153,"box":{"x":116,"y":242,"width":743,"height":12}},{"id":"e1941819-c756-48a8-af4d-a610ea9a1927","block_type":"box","text":"quality. Consequently, obligations with the same rating, maturity and interest rate may have different","page_number":153,"box":{"x":116,"y":258,"width":749,"height":12}},{"id":"583d084c-d61c-4324-8588-aef7c8743e5e","block_type":"box","text":"market prices. Subsequent to its purchase by a Fund, a rated security may cease to be rated. A Fund’s","page_number":153,"box":{"x":117,"y":273,"width":769,"height":12}},{"id":"4676827d-077c-4c13-bb8f-5e87269bb959","block_type":"box","text":"Manager or sub-adviser will consider such an event in determining whether the Fund should continue","page_number":153,"box":{"x":117,"y":289,"width":755,"height":12}},{"id":"2785d3e8-7acd-40ca-bb5f-32d242c3ca9b","block_type":"box","text":"to hold the security.","page_number":153,"box":{"x":116,"y":304,"width":150,"height":12}},{"id":"082b9b85-7249-40bb-8d74-b3600ecb9a27","block_type":"box","text":"Zero Coupon Securities.","page_number":153,"box":{"x":116,"y":335,"width":193,"height":12}},{"id":"c647dbdb-9f76-49b7-941b-8aa7b69f90cc","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value","page_number":153,"box":{"x":310,"y":335,"width":575,"height":12}},{"id":"9f39f218-d60b-49ab-8a54-e31983abeb02","block_type":"box","text":"and do not pay interest during the life of the security. The discount approximates the total amount of","page_number":153,"box":{"x":116,"y":351,"width":747,"height":12}},{"id":"e9354e52-9528-47d0-ba9c-236287229361","block_type":"box","text":"interest the security will accrue and compound over the period until maturity at a rate of interest","page_number":153,"box":{"x":117,"y":366,"width":711,"height":12}},{"id":"bcba9b64-66a5-4b2a-b191-08bd3eb1b065","block_type":"box","text":"reflecting the market rate of the security at the time of issuance. Upon maturity, the holder of a zero","page_number":153,"box":{"x":117,"y":382,"width":741,"height":12}},{"id":"17b18b59-a795-4d08-9f97-800dc602ad31","block_type":"box","text":"coupon security is entitled to receive the par value of the security.","page_number":153,"box":{"x":116,"y":397,"width":492,"height":12}},{"id":"bee48575-158e-466c-aa8e-b1f40d5d7a5d","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to","page_number":153,"box":{"x":116,"y":428,"width":740,"height":12}},{"id":"8ebea74b-f603-445e-b244-8214ddc0ad10","block_type":"box","text":"have received income (“phantom income”) annually, notwithstanding that cash may not be received","page_number":153,"box":{"x":117,"y":444,"width":742,"height":12}},{"id":"c7060021-8b51-4a0d-beb7-ef99bdeb9cce","block_type":"box","text":"currently. The effect of owning instruments that do not make current interest payments is that a fixed","page_number":153,"box":{"x":116,"y":459,"width":751,"height":12}},{"id":"ae74185f-711b-4764-b8ea-f3bcba624eeb","block_type":"box","text":"yield is earned not only on the original investment but also, in effect, on all discount accretion during","page_number":153,"box":{"x":116,"y":475,"width":746,"height":12}},{"id":"0a1a9cdd-3941-4444-aa27-ff98c14618dc","block_type":"box","text":"the life of the obligations. This implicit reinvestment of earnings at a fixed rate eliminates the risk of","page_number":153,"box":{"x":116,"y":490,"width":737,"height":12}},{"id":"13e0a8ee-350f-4d67-9128-7319e37950cc","block_type":"box","text":"being unable to invest distributions at a rate as high as the implicit yield on the zero coupon bond, but","page_number":153,"box":{"x":117,"y":506,"width":757,"height":12}},{"id":"54a58222-7e4c-4c93-820d-cffb85e72319","block_type":"box","text":"at the same time eliminates the holder’s ability to reinvest at higher rates in the future. For this reason,","page_number":153,"box":{"x":116,"y":521,"width":764,"height":12}},{"id":"aa235716-d77a-4fb2-b34f-12c459d2b558","block_type":"box","text":"some of these securities may be subject to substantially greater price fluctuations during periods of","page_number":153,"box":{"x":116,"y":537,"width":739,"height":12}},{"id":"0d08beda-b551-4b3f-be3b-54c65a5645cd","block_type":"box","text":"changing market interest rates than are comparable securities that pay interest currently. Longer term","page_number":153,"box":{"x":116,"y":552,"width":760,"height":12}},{"id":"22e9e99e-84e7-4c16-bd9f-1544ba8d5457","block_type":"box","text":"zero coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These","page_number":153,"box":{"x":116,"y":568,"width":768,"height":12}},{"id":"d53a1777-7587-4d6b-aab0-51d1e3d43b44","block_type":"box","text":"investments benefit the issuer by mitigating its need for cash to meet debt service, but also require a","page_number":153,"box":{"x":117,"y":583,"width":749,"height":12}},{"id":"d3f7672b-7390-452f-8061-c64f6758ca48","block_type":"box","text":"higher rate of return to attract investors who are willing to defer receipt of cash.","page_number":153,"box":{"x":117,"y":599,"width":589,"height":12}},{"id":"dbf3422c-8e39-4323-89d2-feab41f10d03","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting","page_number":153,"box":{"x":116,"y":630,"width":739,"height":12}},{"id":"42df8e59-47c1-44bf-9ad7-76546568212c","block_type":"box","text":"purposes prior to the receipt of cash payments. Zero coupon securities may be subject to greater","page_number":153,"box":{"x":117,"y":645,"width":724,"height":12}},{"id":"44949214-2624-415b-bfb6-243936e3a35a","block_type":"box","text":"fluctuation in value and less liquidity in the event of adverse market conditions than comparably rated","page_number":153,"box":{"x":116,"y":661,"width":750,"height":12}},{"id":"32f0a4c2-b2fa-4097-b0fc-064e866f4dab","block_type":"box","text":"securities that pay cash interest at regular intervals.","page_number":153,"box":{"x":116,"y":676,"width":382,"height":12}},{"id":"cc7ecc90-cb0b-4368-9990-3992ed5cf7c2","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund","page_number":153,"box":{"x":117,"y":707,"width":759,"height":12}},{"id":"880ac4cc-4a0f-4be2-8b59-fd1ac3a62e52","block_type":"box","text":"is required to distribute income to its shareholders and, consequently, may have to dispose of other,","page_number":153,"box":{"x":117,"y":723,"width":740,"height":12}},{"id":"4558d54b-ec1d-4517-822b-4f973107ee09","block_type":"box","text":"more liquid portfolio securities under disadvantageous circumstances or may have to leverage itself by","page_number":153,"box":{"x":117,"y":738,"width":760,"height":12}},{"id":"eae6b15c-53fa-4a14-926c-f0944e5eb142","block_type":"box","text":"borrowing in order to generate the cash to satisfy these distributions. The required distributions may","page_number":153,"box":{"x":117,"y":754,"width":740,"height":12}},{"id":"82646b34-8db5-4d84-8026-57ca55efe265","block_type":"box","text":"result in an increase in a Fund’s exposure to zero coupon securities.","page_number":153,"box":{"x":117,"y":769,"width":505,"height":12}},{"id":"79ef92a1-e921-4e72-b677-f719e06d06b7","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero","page_number":153,"box":{"x":117,"y":800,"width":707,"height":12}},{"id":"58df5502-5d35-4367-b737-ddd3163e1b07","block_type":"box","text":"coupon securities. During a period of severe market conditions, the market for such securities may","page_number":153,"box":{"x":116,"y":816,"width":731,"height":12}},{"id":"693d8672-83d2-42fd-b2f2-a18a22783956","block_type":"box","text":"become even less liquid. In addition, as these securities do not pay cash interest, a Fund’s investment","page_number":153,"box":{"x":117,"y":831,"width":762,"height":12}},{"id":"8d6ee4b3-2953-4ff6-a014-9c79e0b0ce20","block_type":"box","text":"exposure to these securities and their risks, including credit risk, will increase during the time these","page_number":153,"box":{"x":116,"y":847,"width":739,"height":12}},{"id":"4d1adf47-692a-4ae2-b105-a729e4555fbc","block_type":"box","text":"securities are held in the Fund’s portfolio.","page_number":153,"box":{"x":116,"y":862,"width":311,"height":12}},{"id":"9cfd23ef-c87f-4c4e-ae87-0a67e6391712","block_type":"box","text":"II-103","page_number":153,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"f0d425f3-21fb-4987-b5be-4432eb8d5e79","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":153,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"70a70204-f1ea-4629-946f-cdcb7ca27277","block_type":"box","text":"Suitability. (All Funds)","page_number":154,"box":{"x":117,"y":87,"width":181,"height":12}},{"id":"9e6dc1c2-a2e4-4d5d-93f3-fded49bdbb7c","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of","page_number":154,"box":{"x":116,"y":111,"width":760,"height":12}},{"id":"6fb9c676-b2b5-4561-9b43-08cd0331caa0","block_type":"box","text":"the Fund, the Manager and its affiliates. Each Fund should be considered a vehicle for diversification","page_number":154,"box":{"x":116,"y":126,"width":753,"height":12}},{"id":"6eac2b58-bb68-4410-bb3c-c8853ef3bcc5","block_type":"box","text":"and not as a balanced investment program. The suitability for any particular investor of a purchase of","page_number":154,"box":{"x":116,"y":142,"width":755,"height":12}},{"id":"fda6d796-482d-40f0-ae16-f1b603c963b0","block_type":"box","text":"shares in a Fund will depend upon, among other things, such investor’s investment objectives and","page_number":154,"box":{"x":116,"y":157,"width":733,"height":12}},{"id":"9fe33753-0427-49d8-9456-d4d9e77a8040","block_type":"box","text":"such investor’s ability to accept the risks associated with investing in securities, including the risk of","page_number":154,"box":{"x":116,"y":173,"width":741,"height":12}},{"id":"6302a1b9-7b04-4c1b-9d8a-6722ac29bb97","block_type":"box","text":"loss of principal.","page_number":154,"box":{"x":117,"y":188,"width":124,"height":12}},{"id":"062b69cf-2855-4d33-ae12-6873879fca44","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":154,"box":{"x":116,"y":220,"width":293,"height":12}},{"id":"09d146e0-1523-411f-82cb-e687ef83c89a","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the","page_number":154,"box":{"x":116,"y":244,"width":712,"height":12}},{"id":"4eaa7a1b-1c7f-4bb1-9fd6-187640ba5e17","block_type":"box","text":"specific fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to","page_number":154,"box":{"x":116,"y":259,"width":772,"height":13}},{"id":"965956ed-5e9f-4481-8aca-4b446b1f7ba7","block_type":"box","text":"those investment restrictions, each Fund is also subject to the restrictions discussed below.","page_number":154,"box":{"x":116,"y":275,"width":683,"height":12}},{"id":"6dbcabfa-2f2a-472a-ba67-5a1e67c92d18","block_type":"box","text":"Each Fund’s investments will be limited in order to","page_number":154,"box":{"x":117,"y":307,"width":376,"height":9}},{"id":"eb2212b1-b060-4afc-8dde-308097168b38","block_type":"box","text":"allow the Fund to qualify as a “regulated investment","page_number":154,"box":{"x":494,"y":307,"width":389,"height":12}},{"id":"cee2124a-08bd-4f33-b54b-9db564a5f156","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify,","page_number":154,"box":{"x":116,"y":322,"width":721,"height":13}},{"id":"3cc9e046-3dfc-4080-ad42-e7254c1a6de7","block_type":"box","text":"among other requirements, each Fund will limit its investments so that, at the close of each quarter of","page_number":154,"box":{"x":116,"y":338,"width":757,"height":12}},{"id":"859852c2-1dcb-40a2-a7e5-4ff9d251415d","block_type":"box","text":"the taxable year, (i) at least 50% of the market value of each Fund’s assets is represented by cash,","page_number":154,"box":{"x":116,"y":353,"width":741,"height":13}},{"id":"39d72256-fb21-4373-80a8-e241df407c97","block_type":"box","text":"securities of other regulated investment companies, U.S. Government Securities and other securities,","page_number":154,"box":{"x":116,"y":369,"width":759,"height":12}},{"id":"6d1de01d-cb91-4ded-be15-4d89b69a324d","block_type":"box","text":"with such other securities limited, in respect of any one issuer, to an amount not greater in value than","page_number":154,"box":{"x":116,"y":384,"width":756,"height":13}},{"id":"be7fba02-5075-4c4e-9da8-04e66493c61f","block_type":"box","text":"5% of the Fund’s assets and not greater than 10% of the outstanding voting securities of such issuer","page_number":154,"box":{"x":116,"y":400,"width":751,"height":12}},{"id":"f5bd4060-fdf4-47c0-a72c-103c487c10de","block_type":"box","text":"and (ii) not more than 25% of the value of its assets is invested in the securities (other than U.S.","page_number":154,"box":{"x":116,"y":415,"width":718,"height":13}},{"id":"305e4bf2-9b1d-4185-8b35-271e94ca52a8","block_type":"box","text":"Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":154,"box":{"x":117,"y":431,"width":754,"height":12}},{"id":"041d0a75-b9cd-49a1-b135-9522fe7d6077","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or","page_number":154,"box":{"x":116,"y":447,"width":726,"height":12}},{"id":"b8b2e32d-dec5-4dce-a0fd-9a8bbda2315d","block_type":"box","text":"similar trades or businesses or related trades or businesses or in the securities of one or more qualified","page_number":154,"box":{"x":116,"y":462,"width":772,"height":12}},{"id":"51533dce-c13e-4973-b8dc-2cfddfba90ab","block_type":"box","text":"publicly traded partnerships (","page_number":154,"box":{"x":117,"y":477,"width":214,"height":13}},{"id":"77ffd162-3124-495c-a32d-7846bc2c8a2b","block_type":"box","text":"i.e.","page_number":154,"box":{"x":332,"y":478,"width":21,"height":9}},{"id":"a4ddf0d4-6a94-433e-9d2e-cdc475e33908","block_type":"box","text":", partnerships that are traded on an established securities market or","page_number":154,"box":{"x":356,"y":478,"width":507,"height":11}},{"id":"6d7f2aee-1f81-467c-a01f-e0e8886f6742","block_type":"box","text":"tradable on a secondary market, other than partnerships that derive 90% of their income from interest,","page_number":154,"box":{"x":116,"y":493,"width":764,"height":12}},{"id":"5857c101-5d7f-40bf-b27d-ea04b60b2a7a","block_type":"box","text":"dividends, capital gains and other traditionally permitted mutual fund income). For purposes of this","page_number":154,"box":{"x":116,"y":508,"width":734,"height":13}},{"id":"b1eedffd-81fe-4072-8da7-eefe2c7c39af","block_type":"box","text":"restriction, the Municipal Funds generally will regard each state and each of its political subdivisions,","page_number":154,"box":{"x":117,"y":524,"width":749,"height":12}},{"id":"89078098-4f9a-4f91-ad37-d39668b55aee","block_type":"box","text":"agencies or instrumentalities and each multi-state agency of which the state is a member as a","page_number":154,"box":{"x":116,"y":539,"width":703,"height":13}},{"id":"129d13d9-b00a-4da6-8cfb-52f772318436","block_type":"box","text":"separate issuer. Each public authority that issues securities on behalf of a private entity generally will","page_number":154,"box":{"x":116,"y":555,"width":754,"height":12}},{"id":"195904fb-f7af-4d80-9a5a-c0fd172b329b","block_type":"box","text":"also be regarded as a separate issuer, except that if the security is backed only by the assets and","page_number":154,"box":{"x":116,"y":570,"width":731,"height":13}},{"id":"64055d11-c300-4799-ba1d-17243d42586a","block_type":"box","text":"revenues of a non-government entity, then the entity with the ultimate responsibility for the payment of","page_number":154,"box":{"x":117,"y":586,"width":762,"height":12}},{"id":"bf2b3f62-54f5-4dda-8c75-c016335c41b4","block_type":"box","text":"interest and principal may be regarded as the sole issuer.","page_number":154,"box":{"x":117,"y":602,"width":431,"height":12}},{"id":"8a767669-7645-4ecd-9a76-ecadbe3ca01b","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10%","page_number":154,"box":{"x":117,"y":633,"width":759,"height":13}},{"id":"e3e527c1-6d0d-4e70-8776-ea043d18520f","block_type":"box","text":"and 25% diversification requirements of the Code discussed above and the securities of each foreign","page_number":154,"box":{"x":116,"y":649,"width":755,"height":12}},{"id":"a6c6c19e-7a5a-4df7-a7f8-3bb59b43c866","block_type":"box","text":"government issuer are considered to be obligations of a single issuer. These tax-related limitations","page_number":154,"box":{"x":116,"y":664,"width":732,"height":13}},{"id":"b2bd7f83-795b-4267-80bd-9b16d0df89f6","block_type":"box","text":"may be changed by the Directors of a Fund to the extent necessary to comply with changes to the U.S.","page_number":154,"box":{"x":117,"y":680,"width":763,"height":12}},{"id":"18bf1a4c-14b0-4d55-87c7-3fcdf900d12b","block_type":"box","text":"federal tax requirements. A Fund that is “diversified” under the Investment Company Act must satisfy","page_number":154,"box":{"x":116,"y":695,"width":748,"height":13}},{"id":"8eb68f8c-cf04-467b-b6c7-f39632417036","block_type":"box","text":"the foregoing 5% and 10% requirements with respect to 75% of its total assets.","page_number":154,"box":{"x":116,"y":711,"width":586,"height":12}},{"id":"697799e8-dbcd-4918-ba15-361a46db0808","block_type":"box","text":"M","page_number":154,"box":{"x":310,"y":760,"width":12,"height":9}},{"id":"0fe7d50a-011d-443e-a306-cd9881078f1b","block_type":"box","text":"ANAGEMENT","page_number":154,"box":{"x":323,"y":762,"width":87,"height":7}},{"id":"db186e6c-3431-43b0-bf20-f0d870a95d1e","block_type":"box","text":"AND","page_number":154,"box":{"x":415,"y":762,"width":29,"height":7}},{"id":"2b6c4ac5-2688-468c-94fd-3d116612643b","block_type":"box","text":"O","page_number":154,"box":{"x":450,"y":759,"width":12,"height":10}},{"id":"df6e66a6-9923-415f-a8c7-abc5547f16a0","block_type":"box","text":"THER","page_number":154,"box":{"x":463,"y":762,"width":37,"height":7}},{"id":"b63a9e9e-f422-4285-b360-e0198b1fed77","block_type":"box","text":"S","page_number":154,"box":{"x":505,"y":759,"width":10,"height":10}},{"id":"7611c4bf-1d67-41c3-90d6-3db18365f787","block_type":"box","text":"ERVICE","page_number":154,"box":{"x":517,"y":762,"width":49,"height":7}},{"id":"550f634e-01ef-4a59-9ddf-dd47b635e5de","block_type":"box","text":"A","page_number":154,"box":{"x":571,"y":760,"width":12,"height":9}},{"id":"a255fcb5-1c41-430d-a5e0-5e71e3b2faec","block_type":"box","text":"RRANGEMENTS","page_number":154,"box":{"x":584,"y":762,"width":106,"height":7}},{"id":"6734595d-1248-4316-87c6-e2984e4b3aaa","block_type":"box","text":"Directors and Officers","page_number":154,"box":{"x":117,"y":791,"width":175,"height":10}},{"id":"0a53bebd-aa86-4d7c-b44b-db641df75558","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and","page_number":154,"box":{"x":116,"y":815,"width":730,"height":12}},{"id":"8e25a460-86f1-42fa-a743-b838890e837b","block_type":"box","text":"‘— Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’","page_number":154,"box":{"x":117,"y":831,"width":760,"height":12}},{"id":"600cd5bd-711a-496f-9d8c-63805ee8986b","block_type":"box","text":"‘— Share Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI","page_number":154,"box":{"x":117,"y":846,"width":754,"height":12}},{"id":"ac448365-b435-46f9-890f-0c1a431045ec","block_type":"box","text":"for biographical and certain other information relating to the Directors and officers of your Fund,","page_number":154,"box":{"x":116,"y":862,"width":713,"height":12}},{"id":"41cb0f22-2d41-46d6-adfc-a95bb6364f47","block_type":"box","text":"including Directors’ compensation.","page_number":154,"box":{"x":117,"y":877,"width":260,"height":12}},{"id":"d058d9a6-024b-482e-82c5-90d9d40e9386","block_type":"box","text":"II-104","page_number":154,"box":{"x":479,"y":909,"width":41,"height":9}},{"id":"eec28e44-dd1d-4549-9626-27d8170994cf","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":154,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"899c482a-d55d-48be-8e76-4303d4f8ac36","block_type":"box","text":"Management Arrangements","page_number":155,"box":{"x":117,"y":87,"width":225,"height":12}},{"id":"bc4e635d-f430-49da-82df-b70de8c1d08d","block_type":"box","text":"Management Services.","page_number":155,"box":{"x":116,"y":110,"width":170,"height":12}},{"id":"5b3e5c32-5a19-411a-a74d-bd97d61d2c4e","block_type":"box","text":"The Manager provides each Fund with investment advisory and management","page_number":155,"box":{"x":288,"y":110,"width":585,"height":12}},{"id":"e55dad20-9194-4979-b41c-4b284a3d2c67","block_type":"box","text":"services. Subject to the oversight of the Board of Directors, the Manager is responsible for the actual","page_number":155,"box":{"x":116,"y":126,"width":752,"height":12}},{"id":"b462633a-e1f0-4db5-bef1-bc3663316b32","block_type":"box","text":"management of a Fund’s portfolio and reviews the Fund’s holdings in light of its own research analysis","page_number":155,"box":{"x":117,"y":141,"width":764,"height":12}},{"id":"e33f1d5e-b9c2-4e34-a8e8-0f188dd50d29","block_type":"box","text":"and that from other relevant sources. The responsibility for making decisions to buy, sell or hold a","page_number":155,"box":{"x":116,"y":157,"width":729,"height":12}},{"id":"1361c1db-2117-4185-93a4-2cce446ade34","block_type":"box","text":"particular security rests with the Manager. The Manager performs certain of the other administrative","page_number":155,"box":{"x":117,"y":172,"width":745,"height":12}},{"id":"05fc86e8-bb4b-4189-8590-1e8581ba1855","block_type":"box","text":"services and provides all the office space, facilities, equipment and necessary personnel for","page_number":155,"box":{"x":116,"y":188,"width":685,"height":12}},{"id":"38616e1f-e86d-4d69-8306-5736c13f37b6","block_type":"box","text":"management of each Fund.","page_number":155,"box":{"x":117,"y":203,"width":209,"height":12}},{"id":"98deddd1-216f-4608-8e5c-a0e4b12a8758","block_type":"box","text":"Each Feeder Fund invests all or a portion of its assets in shares of a Master Portfolio. To the extent a","page_number":155,"box":{"x":117,"y":234,"width":755,"height":12}},{"id":"c349c949-cbe5-47a7-b845-82b130d3d7f7","block_type":"box","text":"Feeder Fund invests all of its assets in a Master Portfolio, it does not invest directly in portfolio","page_number":155,"box":{"x":117,"y":250,"width":702,"height":12}},{"id":"58f4542b-aaa7-4528-9402-07cd2d207b2b","block_type":"box","text":"securities and does not require management services. For such Feeder Funds, portfolio management","page_number":155,"box":{"x":116,"y":265,"width":760,"height":12}},{"id":"bd578e3e-d719-4822-bb37-a9f2355fbc0c","block_type":"box","text":"occurs at the Master Portfolio level.","page_number":155,"box":{"x":116,"y":281,"width":267,"height":9}},{"id":"4c61859d-0022-44c9-9375-95a8445fa478","block_type":"box","text":"Management Fee.","page_number":155,"box":{"x":116,"y":312,"width":132,"height":12}},{"id":"40f1cb40-ab54-44ab-bc4e-80b6bce06a58","block_type":"box","text":"Each Fund has entered into a Management A","page_number":155,"box":{"x":250,"y":312,"width":326,"height":12}},{"id":"972b0b47-9a05-4cd6-a6ae-4b6cc206571c","block_type":"box","text":"Agreement with the Manager pursuant to","page_number":155,"box":{"x":576,"y":312,"width":304,"height":12}},{"id":"e4cb3d35-83fb-47d8-9175-b321991704cb","block_type":"box","text":"which the Manager receives for its services to","page_number":155,"box":{"x":116,"y":327,"width":337,"height":12}},{"id":"58283d6c-1b1c-401d-998b-64b7183242db","block_type":"box","text":"the Fund monthly compensation at an annual rate based","page_number":155,"box":{"x":453,"y":327,"width":417,"height":12}},{"id":"40919600-d738-42fc-8c52-a0f70a4625e9","block_type":"box","text":"on the average daily net assets of the Fund. For info","page_number":155,"box":{"x":116,"y":343,"width":380,"height":12}},{"id":"11e8a325-4461-4fbe-8ec4-f0edfa903422","block_type":"box","text":"rmation regarding the fees paid by your Fund to the","page_number":155,"box":{"x":497,"y":343,"width":378,"height":12}},{"id":"4dba3463-7589-4ffc-b0ad-7a1038b42523","block_type":"box","text":"Manager for the Fund’s last three fiscal years or","page_number":155,"box":{"x":117,"y":358,"width":352,"height":12}},{"id":"f457a8b4-1fff-4533-9298-5a94961f8a7b","block_type":"box","text":"other applicable periods, see “Management, Advisory","page_number":155,"box":{"x":469,"y":358,"width":393,"height":12}},{"id":"f67847b4-d84e-4f3a-969b-e75706b41c3d","block_type":"box","text":"and Other Service Arrangements — Management A","page_number":155,"box":{"x":116,"y":374,"width":368,"height":12}},{"id":"3cb5d5a3-1ffe-4a2d-9908-ab73747c1355","block_type":"box","text":"Agreement” or “Management and Advisory","page_number":155,"box":{"x":484,"y":374,"width":316,"height":12}},{"id":"e1647bfc-8fc8-4453-be23-45438d81d595","block_type":"box","text":"Arrangements,” as applicable, in Part I of each Fund’s SAI.","page_number":155,"box":{"x":116,"y":389,"width":433,"height":12}},{"id":"ce23ef10-43af-42a8-9114-e78e9d37716f","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to","page_number":155,"box":{"x":117,"y":420,"width":757,"height":12}},{"id":"04176233-c5aa-4a02-81ae-597d01974ce6","block_type":"box","text":"provide management services and to pay all compensation of and furnish office space for officers and","page_number":155,"box":{"x":117,"y":436,"width":760,"height":12}},{"id":"1e23da36-f41c-488a-8d76-483acdbc9ba3","block_type":"box","text":"employees of a Fund in connection with investment and economic research, trading and investment","page_number":155,"box":{"x":116,"y":451,"width":745,"height":12}},{"id":"c86139ee-07dc-489f-8cce-ede549d037cb","block_type":"box","text":"management of the Fund, as well as the fees of all Directors of the Fund who are interested persons of","page_number":155,"box":{"x":117,"y":467,"width":768,"height":12}},{"id":"56c4ea5e-2501-4867-8c63-45b11c8c7cb7","block_type":"box","text":"the Fund. Each Fund pays all other expenses incurred in the operation of that Fund, including among","page_number":155,"box":{"x":116,"y":482,"width":756,"height":12}},{"id":"1c30754b-69d0-4883-a4bc-75ec4655bee9","block_type":"box","text":"other things: taxes; expenses for legal and auditing services; costs of preparing, printing and mailing","page_number":155,"box":{"x":116,"y":498,"width":749,"height":12}},{"id":"551f4bc2-c6a5-4f1b-99d0-50e86aa2ba9c","block_type":"box","text":"proxies, shareholder reports, prospectuses and statements of additional information, except to the","page_number":155,"box":{"x":117,"y":513,"width":732,"height":12}},{"id":"86c7eaad-d5bb-413a-8c4b-a26e0a6253ef","block_type":"box","text":"extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the custodian and","page_number":155,"box":{"x":116,"y":529,"width":760,"height":12}},{"id":"a0ce1da1-968b-40e9-9123-341d8ec731dc","block_type":"box","text":"sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":155,"box":{"x":116,"y":544,"width":766,"height":12}},{"id":"fffed5f4-6953-45d2-b4e0-6a06b81fc7b6","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are","page_number":155,"box":{"x":116,"y":560,"width":761,"height":12}},{"id":"2184cd18-c991-4f13-b9c1-5637b4aed562","block_type":"box","text":"not interested persons of a Fund as defined in the Investment Company Act; accounting and pricing","page_number":155,"box":{"x":117,"y":575,"width":745,"height":12}},{"id":"c8373dca-42e1-41c4-ab59-350f1f122f67","block_type":"box","text":"costs (including the daily calculations of NAV); insurance; interest; brokerage costs; litigation and other","page_number":155,"box":{"x":116,"y":591,"width":767,"height":12}},{"id":"51a67a07-07d4-4234-b38d-eb39ed9c5352","block_type":"box","text":"extraordinary or non-recurring expenses; and other expenses properly payable by the Fund. Certain","page_number":155,"box":{"x":116,"y":606,"width":747,"height":12}},{"id":"d684f6d1-99ed-40da-ba01-441fd3e307e1","block_type":"box","text":"accounting services are provided to each Fund by State Street Bank and Trust Company (“State","page_number":155,"box":{"x":116,"y":622,"width":720,"height":12}},{"id":"230ca6b0-3f0a-4a14-bc73-0f6e13099ee2","block_type":"box","text":"Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”) or JPMorgan Chase Bank, N.A.","page_number":155,"box":{"x":116,"y":637,"width":746,"height":12}},{"id":"e81477b4-4341-49d1-aab2-bfe3ddeef73e","block_type":"box","text":"(“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as applicable, and each","page_number":155,"box":{"x":117,"y":653,"width":761,"height":12}},{"id":"fbe803f1-397d-4ff2-8232-f23de5979a02","block_type":"box","text":"Fund. Each Fund pays a fee for these services. In addition, the Manager provides certain accounting","page_number":155,"box":{"x":117,"y":668,"width":746,"height":12}},{"id":"6642aa96-bb6a-4f1a-9266-a78b38cbf732","block_type":"box","text":"services to each Fund and the Fund pays the Manager a fee for such services. The Distributor pays","page_number":155,"box":{"x":116,"y":684,"width":740,"height":12}},{"id":"65990041-a7a0-478c-9bb6-fad3307d157c","block_type":"box","text":"certain promotional expenses of the Funds incurred in connection with the offering of shares of the","page_number":155,"box":{"x":116,"y":699,"width":731,"height":13}},{"id":"29ed46fe-3045-413e-b87b-515654ab23cd","block_type":"box","text":"Funds. Certain expenses are financed by each Fund pursuant to distribution plans in compliance with","page_number":155,"box":{"x":117,"y":715,"width":751,"height":12}},{"id":"c5b3943c-0cf1-438e-a3fc-55a310d4167f","block_type":"box","text":"Rule 12b-1 under the Investment Company Act. See “Purchase of Shares — Distribution and/or","page_number":155,"box":{"x":117,"y":730,"width":710,"height":13}},{"id":"049b8179-cb81-4857-a661-b587c47b1a16","block_type":"box","text":"Shareholder Servicing Plans.”","page_number":155,"box":{"x":116,"y":746,"width":221,"height":12}},{"id":"1de39128-3cd9-4efe-a14b-7c561951f5d3","block_type":"box","text":"Sub-Advisory Fee.","page_number":155,"box":{"x":117,"y":777,"width":135,"height":12}},{"id":"35dfe1c1-cf39-4750-8f7d-87228e2a8616","block_type":"box","text":"The Manager of certain Funds has entered into one or more sub-advisory","page_number":155,"box":{"x":259,"y":777,"width":546,"height":12}},{"id":"2905cff2-621d-4d0e-905b-9b9896c07b5a","block_type":"box","text":"agreements (the “Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each","page_number":155,"box":{"x":116,"y":792,"width":743,"height":13}},{"id":"dcd04f59-7c96-4cd3-b057-cbc21e7b2638","block_type":"box","text":"such Fund’s Prospectus (the “Sub-Adviser”) pursuant to which the Sub-Adviser provides sub-advisory","page_number":155,"box":{"x":116,"y":808,"width":755,"height":12}},{"id":"8426fc16-d852-4a14-9f09-57a60d16c94a","block_type":"box","text":"services to the Manager with respect to the Fund.","page_number":155,"box":{"x":116,"y":824,"width":367,"height":12}},{"id":"96bca4fa-8de0-4e57-9377-9756ebd4c099","block_type":"box","text":"Organization of the Manager.","page_number":155,"box":{"x":117,"y":854,"width":215,"height":13}},{"id":"b6423635-2ac1-4413-9f8d-fe1f882c8f87","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and","page_number":155,"box":{"x":334,"y":854,"width":519,"height":13}},{"id":"4d9ee7fc-47c8-4ca5-9097-14a3876ab098","block_type":"box","text":"BlackRock Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned","page_number":155,"box":{"x":117,"y":870,"width":732,"height":12}},{"id":"ff925e5e-bcbf-4048-97e6-ac9c24314904","block_type":"box","text":"II-105","page_number":155,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"f7c6acf5-177a-4863-a221-b7c98224b0c3","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":155,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"4903a751-1c6d-41d4-88bd-dad776c0dc25","block_type":"box","text":"subsidiary of BlackRock, Inc. BlackRock, Inc., through its subsidiaries and divisions, provides","page_number":156,"box":{"x":116,"y":87,"width":697,"height":12}},{"id":"aec7f8eb-2615-4494-bd49-730fdd475d99","block_type":"box","text":"(i) investment management services to individuals and institutional investors through separate account","page_number":156,"box":{"x":117,"y":102,"width":765,"height":13}},{"id":"0c13322e-b2ea-46b2-8710-2d96d0622988","block_type":"box","text":"management, non-discretionary advisory programs and commingled investment vehicles; (ii) risk","page_number":156,"box":{"x":117,"y":118,"width":722,"height":12}},{"id":"3eb6bdbe-138d-4200-9251-a0d23a14b38e","block_type":"box","text":"management services, investment accounting and trade processing tools; (iii) transition management","page_number":156,"box":{"x":117,"y":134,"width":755,"height":12}},{"id":"fd1d3c8c-5c58-42ab-997f-81670845c58b","block_type":"box","text":"services, and (iv) securities lending services.","page_number":156,"box":{"x":116,"y":149,"width":337,"height":12}},{"id":"c025d87d-5ffe-4a56-914f-0c711d90d350","block_type":"box","text":"Duration and Termination.","page_number":156,"box":{"x":116,"y":180,"width":193,"height":10}},{"id":"cde03c4d-4c18-4d8d-9abb-1b212cae0089","block_type":"box","text":"Unless earlier terminated as described below, each Management","page_number":156,"box":{"x":310,"y":180,"width":494,"height":12}},{"id":"3fdb70b4-5b18-49ff-83cc-b36c4a7608a8","block_type":"box","text":"Agreement and each Sub-Advisory Agreement will remain in effect for an initial two year period and","page_number":156,"box":{"x":116,"y":196,"width":743,"height":12}},{"id":"4cf2ac34-a9c0-40c7-b630-05fb0d6fdd88","block_type":"box","text":"from year to year thereafter if approved annually (a) by the Board of Directors or by a vote of a majority","page_number":156,"box":{"x":116,"y":211,"width":769,"height":12}},{"id":"4c0e0cab-2987-4608-a830-d1910c31158d","block_type":"box","text":"of the outstanding voting securities of a Fund and (b) by a majority of the Directors of the Fund who are","page_number":156,"box":{"x":116,"y":227,"width":771,"height":12}},{"id":"6df01690-420a-4dac-a286-0bdf1e68a5b7","block_type":"box","text":"not parties to such agreement or interested persons (as defined in the Investment Company Act) of","page_number":156,"box":{"x":117,"y":242,"width":740,"height":12}},{"id":"722556d2-c23e-4457-a1b0-032f677ffe4d","block_type":"box","text":"any such party. Each Management Agreement automatically terminates on assignment and may be","page_number":156,"box":{"x":116,"y":258,"width":745,"height":12}},{"id":"6002f5a8-591f-4a9d-8c2b-6ecfcaba8979","block_type":"box","text":"terminated without penalty on 60 days’ written notice at the option of either party thereto or by the vote","page_number":156,"box":{"x":116,"y":273,"width":765,"height":12}},{"id":"0bbf5619-46dc-4b1a-9d16-8d218539bc40","block_type":"box","text":"of the shareholders of the applicable Fund.","page_number":156,"box":{"x":116,"y":289,"width":323,"height":12}},{"id":"ab1aa282-8e13-4a46-b564-baf64d41e219","block_type":"box","text":"Other Service Arrangements","page_number":156,"box":{"x":116,"y":320,"width":233,"height":12}},{"id":"eaaeeeb4-edc3-4237-825e-28310f6fbf52","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":156,"box":{"x":115,"y":343,"width":355,"height":9}},{"id":"cf4ab9c2-06f0-4a01-a6b7-5c96b8bd67db","block_type":"box","text":"Certain Funds have entered into an administration","page_number":156,"box":{"x":472,"y":343,"width":383,"height":9}},{"id":"5e73b417-4679-4037-9302-4bc5e1605432","block_type":"box","text":"agreement (the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus","page_number":156,"box":{"x":116,"y":358,"width":756,"height":12}},{"id":"a2924097-60ff-493a-a2b0-56b4cd8e4080","block_type":"box","text":"and Part I of the Fund’s SAI (each an “Administrator”). For its services to a Fund, the Administrator","page_number":156,"box":{"x":116,"y":374,"width":737,"height":12}},{"id":"b617df5e-f795-4e45-98f4-d5026403c2d1","block_type":"box","text":"receives monthly compensation at the annual rate set forth in each applicable Fund’s Prospectus. For","page_number":156,"box":{"x":117,"y":389,"width":758,"height":12}},{"id":"b9c6e1e5-707c-404c-b1b9-e72e7104d95a","block_type":"box","text":"information regarding any administrative fees paid by your Fund to the Administrator for the periods","page_number":156,"box":{"x":117,"y":405,"width":742,"height":12}},{"id":"eebf7263-6981-46f5-bd84-8847b5368988","block_type":"box","text":"indicated, see “Management, Advisory and Other Service Arrangements — Administration Agreement”","page_number":156,"box":{"x":117,"y":420,"width":766,"height":12}},{"id":"941ade33-145f-4492-81d8-216febbe7ccb","block_type":"box","text":"or “Management and Advisory Arrangements,” as applicable, in Part I of that Fund’s SAI.","page_number":156,"box":{"x":116,"y":436,"width":664,"height":12}},{"id":"01c1e700-0d46-48e3-8af0-21fa23372713","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to","page_number":156,"box":{"x":117,"y":467,"width":735,"height":12}},{"id":"4d3e548b-38c2-4b8d-bc1c-5c0ccc7b8083","block_type":"box","text":"provide certain administrative services to the Fund and to pay, or cause its affiliates to pay, for","page_number":156,"box":{"x":117,"y":482,"width":703,"height":12}},{"id":"5c3299e3-afb2-4b0e-a33e-aa26e55d018f","block_type":"box","text":"maintaining its staff and personnel and to provide office space, facilities and necessary personnel for","page_number":156,"box":{"x":117,"y":498,"width":751,"height":12}},{"id":"151253e2-5488-4e4a-be08-e1aeefbb42e6","block_type":"box","text":"the Fund. Each Administrator is also obligated to pay, or cause its affiliates to pay, the fees of those","page_number":156,"box":{"x":116,"y":513,"width":745,"height":12}},{"id":"1780e4a3-2ced-4e39-95f4-db78110fc044","block_type":"box","text":"officers and Directors of the Fund who are affiliated persons of the Administrator or any of its affiliates.","page_number":156,"box":{"x":116,"y":529,"width":764,"height":12}},{"id":"5094b840-ed5e-43ab-9c00-7f3a686a8ddb","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":156,"box":{"x":116,"y":560,"width":410,"height":12}},{"id":"5899d1ab-1a72-42a4-924d-be54a1b72624","block_type":"box","text":"Unless earlier terminated as described below,","page_number":156,"box":{"x":527,"y":560,"width":350,"height":11}},{"id":"999c7164-5605-4fd5-95c6-55f1d72bdfe6","block_type":"box","text":"each Administration Agreement with BlackRock will continue for an initial two year period and from","page_number":156,"box":{"x":116,"y":575,"width":736,"height":12}},{"id":"f8bab2a4-b498-4855-8572-6a9f9329f717","block_type":"box","text":"year to year if approved annually (a) by the Board of Directors of each applicable Fund or by a vote of","page_number":156,"box":{"x":116,"y":591,"width":760,"height":12}},{"id":"838752f8-176a-49e9-ba9a-a8747b55292a","block_type":"box","text":"a majority of the outstanding voting securities of such Fund and (b) by a majority of the Directors of the","page_number":156,"box":{"x":116,"y":606,"width":767,"height":12}},{"id":"8637bb49-176c-402d-922e-65d6c24afdef","block_type":"box","text":"Fund who are not parties to such contract or interested persons (as defined in the Investment","page_number":156,"box":{"x":117,"y":622,"width":697,"height":12}},{"id":"68b2025b-4dd7-473c-af0f-4fd10bf2ec0e","block_type":"box","text":"Company Act) of any such party. Such contract is not assignable and may be terminated without","page_number":156,"box":{"x":117,"y":637,"width":720,"height":12}},{"id":"a7c8336e-64f1-4d8d-8591-1ecccdbe12b1","block_type":"box","text":"penalty on written notice at the option of either party thereto or by the vote of the shareholders of the","page_number":156,"box":{"x":117,"y":653,"width":750,"height":12}},{"id":"e36dda7b-a6f6-4837-82da-34e043342496","block_type":"box","text":"Fund.","page_number":156,"box":{"x":117,"y":669,"width":40,"height":9}},{"id":"55579ff5-eccd-4fb6-b860-d66693d2b84c","block_type":"box","text":"Transfer Agency Services.","page_number":156,"box":{"x":118,"y":699,"width":193,"height":13}},{"id":"ebc620d0-0199-4449-9429-f491ec55d57c","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer","page_number":156,"box":{"x":319,"y":699,"width":546,"height":13}},{"id":"b95c0bbd-a8a8-49d9-bd50-4fb2e093ff19","block_type":"box","text":"Agent”), a subsidiary of The Bank of New York Mellon Corporation, acts as each Fund’s Transfer","page_number":156,"box":{"x":116,"y":715,"width":719,"height":12}},{"id":"92c259fb-cb51-445f-819f-4c8c3d174215","block_type":"box","text":"Agent pursuant to a Transfer Agency, Dividend Disbursing Agency and Shareholder Servicing Agency","page_number":156,"box":{"x":116,"y":730,"width":758,"height":13}},{"id":"13068eca-bf8b-4077-b437-ab8d0875091c","block_type":"box","text":"Agreement (the “Transfer Agency Agreement”) with the Funds. Pursuant to the Transfer Agency","page_number":156,"box":{"x":116,"y":746,"width":714,"height":12}},{"id":"e63cfdc3-19f7-4ad0-a8af-93d3b7b7dc35","block_type":"box","text":"Agreement, the Transfer Agent is responsible for the issuance, transfer and redemption of shares and","page_number":156,"box":{"x":116,"y":761,"width":756,"height":13}},{"id":"4e699d46-a959-4ebd-aa15-edc4bc6e1c11","block_type":"box","text":"the opening and maintenance of shareholder accounts. Each Fund pays the Transfer Agent a fee for","page_number":156,"box":{"x":116,"y":777,"width":748,"height":12}},{"id":"915d6755-0b0c-450d-9db0-baaf2d9ee1b1","block_type":"box","text":"the services it receives based on the type of account and the level of services required. 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(collectively referred to in this section as “BlackRock”) and their","page_number":165,"box":{"x":116,"y":314,"width":707,"height":12}},{"id":"23b716e7-8cdd-4385-90f7-9432e0db7fd1","block_type":"box","text":"respective directors, officers or employees, with respect to the Funds and/or other accounts managed","page_number":165,"box":{"x":116,"y":329,"width":760,"height":12}},{"id":"f3950851-7f62-4353-8e58-f3b600dcc659","block_type":"box","text":"by BlackRock, may give rise to actual or perceived conflicts of interest such as those described below.","page_number":165,"box":{"x":116,"y":345,"width":764,"height":12}},{"id":"e3f8c9de-31d8-4367-b10e-7aa2b5f86674","block_type":"box","text":"BlackRock is one of the world’s largest asset management firms. BlackRock, its subsidiaries and their","page_number":165,"box":{"x":117,"y":377,"width":759,"height":12}},{"id":"6121f35e-81c4-4fcb-86a9-ad03256ae2d7","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel","page_number":165,"box":{"x":117,"y":392,"width":736,"height":12}},{"id":"83787e0e-e011-4eab-87d4-10482d59a3cd","block_type":"box","text":"who may be involved in the investment activities and business operations of a Fund, are engaged","page_number":165,"box":{"x":116,"y":408,"width":729,"height":12}},{"id":"287ebe42-8ae1-4081-8cd9-e7460b196549","block_type":"box","text":"worldwide in businesses, including managing equities, fixed income securities, cash and alternative","page_number":165,"box":{"x":116,"y":423,"width":742,"height":12}},{"id":"e525d04f-e3bf-4d8e-a193-42cde9f36fde","block_type":"box","text":"investments, and other financial services, and have interests other than that of managing the Funds.","page_number":165,"box":{"x":117,"y":439,"width":748,"height":12}},{"id":"7fb7ac9c-994f-44b8-a505-5f7a275b9104","block_type":"box","text":"These are considerations of which investors in a Fund should be aware, and which may cause conflicts","page_number":165,"box":{"x":116,"y":454,"width":771,"height":12}},{"id":"9f4c1a03-216c-4f79-b483-63658986d24a","block_type":"box","text":"of interest that could disadvantage a Fund and its shareholders.","page_number":165,"box":{"x":116,"y":470,"width":479,"height":12}},{"id":"585d726f-3ad9-40ab-a185-b2ea6e5f29b8","block_type":"box","text":"These businesses and interests include potential multiple advisory, transactional, financial and other","page_number":165,"box":{"x":116,"y":502,"width":749,"height":12}},{"id":"a1159acf-9813-48ac-880f-3d3153ac54ab","block_type":"box","text":"relationships with, or interests in companies and interests in securities or other instruments that may be","page_number":165,"box":{"x":117,"y":518,"width":771,"height":12}},{"id":"7aa80399-8b46-4fad-a2f1-5a0bcecdb65b","block_type":"box","text":"purchased or sold by a Fund.","page_number":165,"box":{"x":117,"y":533,"width":221,"height":12}},{"id":"774bf17b-9213-44e4-b12a-69105d76d5ab","block_type":"box","text":"BlackRock may have proprietary interests in, and may manage or advise with respect to, accounts or","page_number":165,"box":{"x":117,"y":565,"width":754,"height":12}},{"id":"640d0054-6565-4473-accb-05bf64a795af","block_type":"box","text":"funds (including separate accounts and other funds and collective investment vehicles) that have","page_number":165,"box":{"x":116,"y":581,"width":724,"height":12}},{"id":"d72bff2c-047a-4f4c-9152-64f78019dae2","block_type":"box","text":"investment objectives identical or similar to those of a Fund and/or that engage in transactions in the","page_number":165,"box":{"x":117,"y":596,"width":749,"height":12}},{"id":"b14eff1a-e4e9-4d14-a377-0c07ac47ec4f","block_type":"box","text":"same types of securities, currencies and instruments as the Fund. Such other funds or accounts may","page_number":165,"box":{"x":116,"y":612,"width":755,"height":12}},{"id":"e2e59b4b-4585-44f9-a99c-db1b06e606b6","block_type":"box","text":"offer exposure to strategies that are identical or substantially similar to those of a Fund but with","page_number":165,"box":{"x":116,"y":627,"width":710,"height":12}},{"id":"02e6b883-eb05-44e6-b3a3-120f852231bf","block_type":"box","text":"different fees and expenses, governance and structures, and/or services provided by BlackRock.","page_number":165,"box":{"x":116,"y":643,"width":724,"height":12}},{"id":"b6410454-0eb7-4703-8347-1710c6a74b6d","block_type":"box","text":"BlackRock is also a major participant in the global currency, equities, swap and fixed income markets,","page_number":165,"box":{"x":117,"y":658,"width":760,"height":12}},{"id":"790e8b3b-76bf-4bf9-82d3-d6ea02d0f352","block_type":"box","text":"in each case, for the accounts of clients and, in some cases, on a proprietary basis. As such,","page_number":165,"box":{"x":117,"y":674,"width":687,"height":12}},{"id":"8c10d6cd-771c-4a2c-ae7e-c38e3eb9a03a","block_type":"box","text":"BlackRock is or may be actively engaged in transactions in the same securities, currencies, and","page_number":165,"box":{"x":117,"y":689,"width":709,"height":12}},{"id":"f055ff40-5c40-4c6e-bc76-aee939105256","block_type":"box","text":"instruments in which a Fund invests.","page_number":165,"box":{"x":117,"y":705,"width":268,"height":9}},{"id":"930941b8-38ac-4638-9680-be05b0dfd87e","block_type":"box","text":"Such activities could affect the prices and availability of the securities, currencies, and instruments in","page_number":165,"box":{"x":116,"y":737,"width":746,"height":12}},{"id":"af311eb9-006e-4619-9410-9d05bf60f474","block_type":"box","text":"which a Fund invests, which could have an adverse impact on a Fund’s performance. Such","page_number":165,"box":{"x":116,"y":752,"width":676,"height":12}},{"id":"743d023d-d9e3-4946-a703-681f30112e77","block_type":"box","text":"transactions, particularly in respect of most proprietary accounts or client accounts, will be executed","page_number":165,"box":{"x":116,"y":768,"width":740,"height":12}},{"id":"10a8a97d-e507-4323-b02d-c56b947b8e3f","block_type":"box","text":"independently of a Fund’s transactions and thus at prices or rates that may be more or less favorable","page_number":165,"box":{"x":117,"y":783,"width":750,"height":12}},{"id":"a1580973-fede-4c88-a266-6e261f054cb4","block_type":"box","text":"than those obtained by the Fund.","page_number":165,"box":{"x":116,"y":799,"width":244,"height":12}},{"id":"f9aaf4a7-d6f6-46f2-8334-e328b0b77adb","block_type":"box","text":"In addition, the portfolio holdings of certain BlackRock-advised investment vehicles managed in an","page_number":165,"box":{"x":117,"y":831,"width":735,"height":12}},{"id":"b9c3d8db-9251-402a-8a2b-2ef8a8469474","block_type":"box","text":"identical or substantially similar manner as certain Funds are made publicly available on a more timely","page_number":165,"box":{"x":117,"y":847,"width":763,"height":12}},{"id":"085eac54-cf27-4093-a5a5-cdac82cd582b","block_type":"box","text":"basis than the applicable Fund. In some cases, such portfolio holdings are made publicly available on","page_number":165,"box":{"x":117,"y":862,"width":757,"height":12}},{"id":"24dbc294-b3c9-4506-876b-1d9fcd92dc70","block_type":"box","text":"a daily basis. While not expected, it is possible that a recipient of portfolio holdings information for such","page_number":165,"box":{"x":116,"y":877,"width":769,"height":13}},{"id":"f9f10f81-0ea7-4788-818f-5a4dd74b3b64","block_type":"box","text":"II-115","page_number":165,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"b46eca1d-ac32-456e-b892-c7295d21ce85","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":165,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"1cc7e98e-a61d-4726-b989-58c3efaf9be8","block_type":"box","text":"an investment vehicle could cause harm to a Fund that is managed in an identical or substantially","page_number":166,"box":{"x":116,"y":87,"width":729,"height":12}},{"id":"1fd9e46f-d413-417c-b91a-3d18bfc38318","block_type":"box","text":"similar manner, including by trading ahead of or against such Fund based on the information received.","page_number":166,"box":{"x":116,"y":102,"width":764,"height":13}},{"id":"55e4a9e2-6234-48f7-944e-f7307f0845af","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the","page_number":166,"box":{"x":116,"y":134,"width":757,"height":12}},{"id":"f5a0931e-04c2-4e85-a042-9567304005df","block_type":"box","text":"assets actually purchased or sold may be allocated among the accounts on a basis determined in its","page_number":166,"box":{"x":116,"y":149,"width":751,"height":12}},{"id":"2d95840c-1965-432a-801a-dba4a86d4969","block_type":"box","text":"good faith discretion to be equitable. In some cases, this system may adversely affect the size or price","page_number":166,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"cfdb008f-46f1-4ed0-9db7-047093510551","block_type":"box","text":"of the assets purchased or sold for a Fund. In addition, transactions in investments by one or more","page_number":166,"box":{"x":116,"y":180,"width":737,"height":12}},{"id":"f162399e-3b9e-4b96-9dbf-bf730dfb56f5","block_type":"box","text":"other accounts managed by BlackRock may have the effect of diluting or otherwise disadvantaging the","page_number":166,"box":{"x":116,"y":196,"width":767,"height":12}},{"id":"7a1874fa-bccf-4cbb-83cf-70fb2f7b6a31","block_type":"box","text":"values, prices or investment strategies of a Fund, particularly, but not limited to, with respect to small","page_number":166,"box":{"x":116,"y":211,"width":752,"height":12}},{"id":"c4f93059-3214-4d76-883f-b4bf6d07a3cc","block_type":"box","text":"capitalization, emerging market or less liquid strategies. This may occur with respect to BlackRock","page_number":166,"box":{"x":116,"y":227,"width":735,"height":12}},{"id":"12aa4f16-5246-47d3-a72e-8c743be87696","block_type":"box","text":"advised accounts when investment decisions regarding a Fund are based on research or other","page_number":166,"box":{"x":116,"y":242,"width":709,"height":12}},{"id":"c366c1c4-55fc-4739-bf35-aebe968715ce","block_type":"box","text":"information that is also used to support decisions for other accounts. When BlackRock implements a","page_number":166,"box":{"x":117,"y":258,"width":749,"height":11}},{"id":"62e005ef-eb85-40d3-bd64-24b7c8281d18","block_type":"box","text":"portfolio decision or strategy on behalf of another account ahead of, or contemporaneously with, similar","page_number":166,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"603b41f4-43eb-4c72-8175-c59cf81bbf39","block_type":"box","text":"decisions or strategies for a Fund, market impact, liquidity constraints, or other factors could result in","page_number":166,"box":{"x":116,"y":289,"width":751,"height":12}},{"id":"aeb264a8-484d-4778-bf79-950918653976","block_type":"box","text":"the Fund receiving less favorable trading results and the costs of implementing such decisions or","page_number":166,"box":{"x":116,"y":304,"width":725,"height":12}},{"id":"b457447a-e0b1-4a53-afb8-c1357404725b","block_type":"box","text":"strategies could be increased or the Fund could otherwise be disadvantaged. BlackRock may, in","page_number":166,"box":{"x":116,"y":320,"width":721,"height":12}},{"id":"8e86c137-a07a-4ff4-826b-0869d8a420ce","block_type":"box","text":"certain cases, elect to implement internal policies and procedures designed to limit such","page_number":166,"box":{"x":116,"y":335,"width":658,"height":12}},{"id":"4d9058fb-ab3c-4161-bb04-7647c20e3a37","block_type":"box","text":"consequences, which may cause a Fund to be unable to engage in certain activities, including","page_number":166,"box":{"x":116,"y":351,"width":703,"height":12}},{"id":"a2b8716e-6021-49ec-afc7-dce8bd173d11","block_type":"box","text":"purchasing or disposing of securities, when it might otherwise be desirable for it to do so. Conflicts may","page_number":166,"box":{"x":117,"y":366,"width":770,"height":12}},{"id":"a86276d6-84c6-46b3-b7a8-529f48b09dd1","block_type":"box","text":"also arise because portfolio decisions regarding a Fund may benefit other accounts managed by","page_number":166,"box":{"x":116,"y":382,"width":721,"height":12}},{"id":"45d4a5bc-1bbd-45f7-b349-5fbadfbcbe80","block_type":"box","text":"BlackRock. For example, the sale of a long position or","page_number":166,"box":{"x":117,"y":397,"width":406,"height":12}},{"id":"2688a1cb-ba24-4a2d-86c6-c8a82e7c7703","block_type":"box","text":"establishment of a short position by a Fund may","page_number":166,"box":{"x":523,"y":397,"width":362,"height":12}},{"id":"e489f020-b1ef-4686-8798-9a1663410483","block_type":"box","text":"impair the price of the same security sold short by (and therefore benefit) BlackRock or its other","page_number":166,"box":{"x":117,"y":413,"width":714,"height":12}},{"id":"3ee8df97-8d45-47b2-bac0-24ab979fcc3e","block_type":"box","text":"accounts or funds, and the purchase of a security or covering of a short position in a security by a Fund","page_number":166,"box":{"x":116,"y":428,"width":772,"height":12}},{"id":"36c43d39-7144-423b-aa27-71cd91a2e8ec","block_type":"box","text":"may increase the price of the same security held by (and therefore benefit) BlackRock or its other","page_number":166,"box":{"x":117,"y":444,"width":727,"height":12}},{"id":"5fe3fe01-05ec-4c80-a5ef-8136ad3d5500","block_type":"box","text":"accounts or funds.","page_number":166,"box":{"x":116,"y":459,"width":142,"height":10}},{"id":"e71c10ef-3753-409f-9467-e23be6c8880b","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may","page_number":166,"box":{"x":117,"y":490,"width":747,"height":12}},{"id":"8a4fc912-b2cc-4d2b-b64c-4336e316d8ce","block_type":"box","text":"invest in or extend credit to different parts of the capital structure of a single issuer. BlackRock may","page_number":166,"box":{"x":117,"y":506,"width":739,"height":12}},{"id":"5ae8345d-14dd-4a83-bc97-484eaf03a2b5","block_type":"box","text":"pursue rights, provide advice or engage in other activities, or refrain from pursuing rights, providing","page_number":166,"box":{"x":117,"y":521,"width":737,"height":12}},{"id":"ad34e0e9-11e3-4116-9fc5-f9b642e257df","block_type":"box","text":"advice or engaging in other activities, on behalf of other clients with respect to an issuer in which a","page_number":166,"box":{"x":116,"y":537,"width":735,"height":12}},{"id":"1f732f80-7979-4bd1-9766-fa5be98af7d6","block_type":"box","text":"Fund has invested, and such actions (or refraining from action) may have a material adverse effect on","page_number":166,"box":{"x":117,"y":552,"width":761,"height":12}},{"id":"c38b1f0b-0494-4057-8007-3d57507b596c","block_type":"box","text":"the Fund. In situations in which clients of BlackRock (including the Funds) hold positions in multiple","page_number":166,"box":{"x":116,"y":568,"width":740,"height":12}},{"id":"14becb8c-195a-4c0b-a18a-64ba674dc700","block_type":"box","text":"parts of the capital structure of an issuer, BlackRock may not pursue certain actions or remedies that","page_number":166,"box":{"x":117,"y":583,"width":752,"height":12}},{"id":"14b39aa9-b49c-4213-9d5f-ac5573dd5cb5","block_type":"box","text":"may be available to a Fund, as a result of legal and regulatory requirements or otherwise. BlackRock","page_number":166,"box":{"x":117,"y":599,"width":752,"height":12}},{"id":"5f450d52-a980-4495-93f8-2de9b85e17c8","block_type":"box","text":"addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":166,"box":{"x":116,"y":614,"width":722,"height":12}},{"id":"ab47f75e-400f-45c2-a162-b26c54e5238b","block_type":"box","text":"particular situations. For example, BlackRock may determine to rely on information barriers between","page_number":166,"box":{"x":117,"y":630,"width":748,"height":12}},{"id":"b9356509-06af-402d-898a-51ce412aa34c","block_type":"box","text":"different business units or portfolio management teams. BlackRock may also determine to rely on the","page_number":166,"box":{"x":116,"y":645,"width":757,"height":12}},{"id":"13c04bab-496e-4e10-9c5a-015bf310c54c","block_type":"box","text":"actions of similarly situated holders of loans or securities rather than, or in connection with, taking such","page_number":166,"box":{"x":116,"y":661,"width":762,"height":12}},{"id":"37f2a4d8-2a3e-4093-9f37-275734a133e7","block_type":"box","text":"actions itself on behalf of the Funds.","page_number":166,"box":{"x":116,"y":676,"width":268,"height":10}},{"id":"a666a7bd-30b3-4239-9fdc-d76c97376f6b","block_type":"box","text":"In addition, to the extent permitted by applicable law, certain Funds may invest their assets in other","page_number":166,"box":{"x":117,"y":707,"width":734,"height":12}},{"id":"cce5e769-f403-4a42-9b84-9f7aa6a599b9","block_type":"box","text":"funds advised by BlackRock, including funds that are managed by one or more of the same portfolio","page_number":166,"box":{"x":116,"y":723,"width":743,"height":12}},{"id":"dd132cf6-32c0-46d8-b1c8-3b49ee4537be","block_type":"box","text":"managers, which could result in conflicts of interest relating to asset allocation, timing of Fund","page_number":166,"box":{"x":117,"y":738,"width":693,"height":12}},{"id":"fe27d689-152b-43b3-a581-55942a3a852d","block_type":"box","text":"purchases and redemptions, and increased remuneration and profitability for BlackRock and/or its","page_number":166,"box":{"x":117,"y":754,"width":725,"height":12}},{"id":"18fff117-d712-4f76-a038-fe3387055209","block_type":"box","text":"personnel, including portfolio managers.","page_number":166,"box":{"x":117,"y":769,"width":295,"height":12}},{"id":"a0206ed2-6466-4956-b99e-53fc0579ad8c","block_type":"box","text":"Third parties, including service providers to BlackRock or the Fund, may sponsor events (including, but","page_number":166,"box":{"x":116,"y":800,"width":764,"height":12}},{"id":"7b0183c3-8010-414d-b63a-959f8f576e61","block_type":"box","text":"not limited to, marketing and promotional activities and presentations, educational training programs","page_number":166,"box":{"x":117,"y":816,"width":741,"height":12}},{"id":"cdc50c10-05f3-4243-af66-82746758c129","block_type":"box","text":"and conferences) for registered representatives, other professionals and individual investors. There is","page_number":166,"box":{"x":116,"y":831,"width":759,"height":12}},{"id":"4cb39e12-0d45-4677-8133-86eb6feba041","block_type":"box","text":"a potential conflict of interest as such sponsorships may defray the costs of such activities to","page_number":166,"box":{"x":116,"y":847,"width":691,"height":12}},{"id":"a1cdf4a6-08dd-4ade-a150-f4f731ed862e","block_type":"box","text":"BlackRock, and may provide an incentive to BlackRock to retain such third parties to provide services","page_number":166,"box":{"x":117,"y":862,"width":757,"height":12}},{"id":"3ccb0563-2466-4de6-9b83-b9ee15a4182e","block_type":"box","text":"to the Fund.","page_number":166,"box":{"x":116,"y":878,"width":94,"height":9}},{"id":"3377508d-9277-48ba-aeb4-56e2b684f99d","block_type":"box","text":"II-116","page_number":166,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"ff362900-6f28-4bc3-b5c4-7e7e17ad702f","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":166,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"5d7deab5-55cc-4e1a-869e-ea6f6581a571","block_type":"box","text":"In certain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to","page_number":167,"box":{"x":117,"y":87,"width":765,"height":12}},{"id":"be03174f-4a14-4764-b6af-42c22195a5b1","block_type":"box","text":"another fund or account advised by BlackRock. BlackRock may (but is not required to) effect","page_number":167,"box":{"x":116,"y":102,"width":692,"height":13}},{"id":"ffdd36dc-b093-4167-a026-3444d1ccbff1","block_type":"box","text":"purchases and sales between BlackRock clients (“cross trades”), including the Funds, if BlackRock","page_number":167,"box":{"x":117,"y":118,"width":739,"height":12}},{"id":"3e9a111b-65fd-4e06-9151-936e881d0a15","block_type":"box","text":"believes such transactions are appropriate based on each party’s investment objectives and","page_number":167,"box":{"x":117,"y":134,"width":687,"height":12}},{"id":"7b5867a2-644f-4b44-b77e-cf45d056505d","block_type":"box","text":"guidelines, subject to applicable law and regulation. There may be potential conflicts of interest or","page_number":167,"box":{"x":116,"y":149,"width":728,"height":12}},{"id":"dada762d-fe24-480e-ad9d-005af7d5c73b","block_type":"box","text":"regulatory issues relating to these transactions which could limit BlackRock’s decision to engage in","page_number":167,"box":{"x":117,"y":165,"width":738,"height":12}},{"id":"9c371dfd-38d0-45cc-bb70-22a7873eb80d","block_type":"box","text":"these transactions for the Funds. BlackRock may have a potentially conflicting division of loyalties and","page_number":167,"box":{"x":116,"y":180,"width":763,"height":12}},{"id":"51f8bd88-12e2-4f4f-8d79-13958bb2410b","block_type":"box","text":"responsibilities to the parties in such transactions.","page_number":167,"box":{"x":117,"y":196,"width":374,"height":11}},{"id":"262532ba-6cc7-42dc-8624-7ce4019e5db2","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has","page_number":167,"box":{"x":117,"y":227,"width":749,"height":12}},{"id":"4ce3356f-311f-451c-a506-06fe44eda97d","block_type":"box","text":"invested, and those activities may have an adverse effect on the Fund. As a result, prices, availability,","page_number":167,"box":{"x":117,"y":242,"width":760,"height":12}},{"id":"b5266da4-42f7-4cee-8d48-56d4a7dd1f12","block_type":"box","text":"liquidity and terms of the Fund’s investments may be negatively impacted by the activities of","page_number":167,"box":{"x":117,"y":258,"width":687,"height":12}},{"id":"e0f52f6b-f8e0-4d90-b160-9782bd9622fd","block_type":"box","text":"BlackRock or its clients, and transactions for the Fund may be impaired or effected at prices or terms","page_number":167,"box":{"x":117,"y":273,"width":753,"height":12}},{"id":"67453833-9afd-4cff-b6d5-2c97aea64c9e","block_type":"box","text":"that may be less favorable than would otherwise have been the case.","page_number":167,"box":{"x":116,"y":289,"width":520,"height":12}},{"id":"d59843ca-6600-4758-aa72-5c81022f41e8","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by","page_number":167,"box":{"x":116,"y":320,"width":716,"height":12}},{"id":"04debaaf-e4d2-4c55-b525-b7fa37ed4d59","block_type":"box","text":"BlackRock for its proprietary accounts or other accounts (including investment companies or collective","page_number":167,"box":{"x":117,"y":335,"width":763,"height":12}},{"id":"dfea3c0e-57c5-4efa-8d5b-b464ec494d60","block_type":"box","text":"investment vehicles) that it manages or advises. It is possible that one or more accounts managed or","page_number":167,"box":{"x":117,"y":351,"width":754,"height":12}},{"id":"f2a8f02d-8137-4b82-bd3b-feab7c0a189f","block_type":"box","text":"advised by BlackRock and such other accounts will achieve investment results that are substantially","page_number":167,"box":{"x":116,"y":366,"width":747,"height":12}},{"id":"f12c830f-ab2d-47fb-8b9b-51c67b7cf289","block_type":"box","text":"more or less favorable than the results achieved by a Fund. Moreover, it is possible that a Fund will","page_number":167,"box":{"x":117,"y":382,"width":741,"height":12}},{"id":"3336651b-75c9-430f-9157-853832465142","block_type":"box","text":"sustain losses during periods in which one or more proprietary or other accounts managed or advised","page_number":167,"box":{"x":116,"y":397,"width":759,"height":12}},{"id":"8a3ad2a5-6878-4c35-91cf-b2b3ac2f5d88","block_type":"box","text":"by BlackRock achieve significant profits. The opposite result is also possible.","page_number":167,"box":{"x":117,"y":413,"width":574,"height":12}},{"id":"fc602274-01df-4f2b-8df6-8623f36e21d0","block_type":"box","text":"From time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in","page_number":167,"box":{"x":117,"y":444,"width":758,"height":12}},{"id":"b7f151f4-e264-45d9-8817-57230a4346d6","block_type":"box","text":"other investment activities because of regulatory, legal or contractual requirements applicable to","page_number":167,"box":{"x":116,"y":459,"width":718,"height":12}},{"id":"2dfdf47d-6957-461e-ade1-03707fd11c74","block_type":"box","text":"BlackRock or other accounts managed or advised by BlackRock, and/or the internal policies of","page_number":167,"box":{"x":117,"y":475,"width":706,"height":12}},{"id":"e5fa8fb1-a3aa-4976-8675-003a442bd063","block_type":"box","text":"BlackRock designed to comply with such requirements. As a result, there may be periods, for example,","page_number":167,"box":{"x":117,"y":490,"width":769,"height":12}},{"id":"c7f2fc2d-e27d-49cf-8d86-002eb1a33fe6","block_type":"box","text":"when BlackRock will not initiate or recommend certain types of transactions regarding certain","page_number":167,"box":{"x":116,"y":506,"width":697,"height":12}},{"id":"d686fdd2-cfd7-4699-8965-3684cfe964ff","block_type":"box","text":"securities or instruments with respect to which BlackRock is performing services or when position limits","page_number":167,"box":{"x":116,"y":521,"width":771,"height":12}},{"id":"80109d5b-f2f6-4553-9de6-3624eac94396","block_type":"box","text":"have been reached. For example, the investment activities of BlackRock for its proprietary accounts","page_number":167,"box":{"x":117,"y":537,"width":745,"height":12}},{"id":"63ceaec7-9680-4b5a-b0cc-cfbe7d66ad1a","block_type":"box","text":"and accounts under its management may limit the investment opportunities for a Fund in certain","page_number":167,"box":{"x":116,"y":552,"width":717,"height":12}},{"id":"ae18daa9-42ef-4cea-9048-ef6df5163cfd","block_type":"box","text":"emerging and other markets in which limitations are imposed upon the amount of investment, in the","page_number":167,"box":{"x":116,"y":568,"width":744,"height":12}},{"id":"29b92ec5-b89c-401a-9727-051c34a50353","block_type":"box","text":"aggregate or in individual issuers, by affiliated foreign investors.","page_number":167,"box":{"x":116,"y":583,"width":478,"height":12}},{"id":"083665dd-6fa7-4451-8227-84b25c484b80","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental","page_number":167,"box":{"x":117,"y":614,"width":733,"height":12}},{"id":"73a96ec5-a8e5-4dbb-ae89-6e3924723272","block_type":"box","text":"analysis and proprietary technical models developed by BlackRock. BlackRock will not be under any","page_number":167,"box":{"x":116,"y":630,"width":750,"height":12}},{"id":"6551aecf-8788-4588-9661-264f98a45899","block_type":"box","text":"obligation, however, to effect transactions on behalf of a Fund in accordance with such analysis and","page_number":167,"box":{"x":116,"y":645,"width":746,"height":12}},{"id":"ea5a6e9c-e2da-4baa-841b-046378ea79b1","block_type":"box","text":"models. In addition, BlackRock will not have any obligation to make available any information regarding","page_number":167,"box":{"x":117,"y":661,"width":764,"height":12}},{"id":"281fd76d-d7a1-4846-8de4-02b56c548f08","block_type":"box","text":"its proprietary activities or strategies, or the activities or strategies used for other accounts managed by","page_number":167,"box":{"x":117,"y":676,"width":764,"height":12}},{"id":"f49b7424-f1f6-4bb2-a343-717a96acd72a","block_type":"box","text":"them, for the benefit of the management of a Fund and it is not anticipated that BlackRock will have","page_number":167,"box":{"x":116,"y":692,"width":738,"height":12}},{"id":"4d4e8c35-72b6-4586-a1f1-268cd30483bb","block_type":"box","text":"access to such information for the purpose of managing the Fund. The proprietary activities or portfolio","page_number":167,"box":{"x":116,"y":707,"width":762,"height":12}},{"id":"6eb7d78a-2a6d-4bc5-9305-ee0e3eca4f28","block_type":"box","text":"strategies of BlackRock, or the activities or strategies used for accounts managed by BlackRock or","page_number":167,"box":{"x":116,"y":723,"width":734,"height":12}},{"id":"7268fd13-c2ea-4c0a-9c58-b0dd79b0f639","block_type":"box","text":"other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":167,"box":{"x":116,"y":738,"width":725,"height":12}},{"id":"e120a5f0-f899-4dc5-9825-e6afd2b9921f","block_type":"box","text":"managing a Fund.","page_number":167,"box":{"x":117,"y":754,"width":133,"height":12}},{"id":"d8169056-3965-4789-8004-0671311dcfca","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and","page_number":167,"box":{"x":116,"y":785,"width":722,"height":12}},{"id":"924e9a66-2e2e-43e0-85d7-b35e3c5e477a","block_type":"box","text":"financial advisors. To the extent clients invest in these investment models and increase the assets","page_number":167,"box":{"x":116,"y":800,"width":728,"height":10}},{"id":"2cbf55bf-fbf1-4fcf-a37f-e809f9060f65","block_type":"box","text":"under management of the Funds, the investment management fee amounts paid by the Funds to","page_number":167,"box":{"x":117,"y":816,"width":719,"height":12}},{"id":"93c6682e-06ea-49d6-90c8-aa9134a81ef6","block_type":"box","text":"BlackRock may also increase. The net asset value and liquidity of a Fund may be impacted by","page_number":167,"box":{"x":117,"y":831,"width":704,"height":12}},{"id":"df674e11-cbc2-428b-a7ad-bc6b64e9c31e","block_type":"box","text":"purchases and sales of the Fund by model-driven investment portfolios, as well as by BlackRock itself","page_number":167,"box":{"x":117,"y":847,"width":760,"height":12}},{"id":"2fd212c6-db09-4223-acfa-8d5a0e41e0ae","block_type":"box","text":"and by its advisory clients.","page_number":167,"box":{"x":116,"y":862,"width":201,"height":12}},{"id":"6217a66a-9ca1-40c7-b247-4a740306518e","block_type":"box","text":"II-117","page_number":167,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"7b3a2641-e163-42f9-9173-d303446fb731","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":167,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"97d4442a-a9c3-4b46-bdb6-d3486ca6864d","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals","page_number":168,"box":{"x":117,"y":87,"width":764,"height":12}},{"id":"e526f4d8-06df-4b84-9b64-ac9399597383","block_type":"box","text":"or employees of other business units or entities within BlackRock. As a result, these principals and","page_number":168,"box":{"x":116,"y":102,"width":736,"height":13}},{"id":"0ede9c4a-c360-4f69-8b03-2c16e9d82f9d","block_type":"box","text":"employees may have obligations to such other business units or entities or their clients and such","page_number":168,"box":{"x":116,"y":118,"width":722,"height":12}},{"id":"302ad7ab-8d1e-4f7f-af00-3e2a686bee80","block_type":"box","text":"obligations to other business units or entities or their clients may be a consideration of which investors","page_number":168,"box":{"x":116,"y":134,"width":762,"height":12}},{"id":"3f68b543-9c62-475a-a0f0-f26ee95e0941","block_type":"box","text":"in a Fund should be aware.","page_number":168,"box":{"x":117,"y":149,"width":206,"height":10}},{"id":"ce643adb-2971-43a4-9da8-3d84fdf34719","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of","page_number":168,"box":{"x":117,"y":180,"width":769,"height":12}},{"id":"03955a85-068e-40ab-9c04-f98cd3a0a3c4","block_type":"box","text":"a Fund in which clients of BlackRock, or, to the extent permitted by the Commission and applicable","page_number":168,"box":{"x":116,"y":196,"width":740,"height":12}},{"id":"37c99db9-818a-49f5-ba31-dc20d671d9f2","block_type":"box","text":"law, BlackRock, serves as the counterparty, principal or issuer. In such cases, such party’s interests in","page_number":168,"box":{"x":117,"y":211,"width":764,"height":12}},{"id":"e406c373-2842-42dc-8d7c-12f5707adda4","block_type":"box","text":"the transaction will be adverse to the interests of the Fund, and such party may have no incentive to","page_number":168,"box":{"x":116,"y":227,"width":747,"height":12}},{"id":"07f42634-d14d-4db1-acff-1f78264ca447","block_type":"box","text":"assure that the Fund obtains the best possible prices or terms in connection with the transactions. In","page_number":168,"box":{"x":116,"y":242,"width":750,"height":12}},{"id":"f5a84b94-1a07-44e1-a5cf-96a5c3b65d89","block_type":"box","text":"addition, the purchase, holding and sale of such investments by a Fund may enhance the profitability","page_number":168,"box":{"x":116,"y":258,"width":754,"height":12}},{"id":"f847d523-8f03-451a-9dcc-7cd775d72325","block_type":"box","text":"of BlackRock.","page_number":168,"box":{"x":116,"y":273,"width":107,"height":10}},{"id":"dbd2f117-32d1-4192-9282-3ab1883a4a91","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies","page_number":168,"box":{"x":117,"y":304,"width":755,"height":12}},{"id":"e03aef6e-b2e9-45f4-a0b6-4298b4728969","block_type":"box","text":"or instruments of which may be those in which a Fund invests or which may be based on the","page_number":168,"box":{"x":116,"y":320,"width":692,"height":12}},{"id":"6db28654-e866-4c59-bb8b-cf7cdbfcc5c6","block_type":"box","text":"performance of the Fund. Additionally, an affiliate of BlackRock will create, write or issue options,","page_number":168,"box":{"x":117,"y":335,"width":724,"height":12}},{"id":"80b0777a-3e02-437c-976a-a0acc3289fdd","block_type":"box","text":"which may be based on the performance of certain Funds. BlackRock has entered into an arrangement","page_number":168,"box":{"x":116,"y":351,"width":772,"height":12}},{"id":"ba08623d-65c4-4f60-86cb-f37c7bb6a6f5","block_type":"box","text":"with Markit Indices Limited, the index provider for underlying fixed-income indexes used by certain","page_number":168,"box":{"x":116,"y":366,"width":733,"height":12}},{"id":"719bbe5e-d194-4975-b792-315446819cad","block_type":"box","text":"iShares ETFs, related to derivative fixed-income products that are based on such iShares ETFs.","page_number":168,"box":{"x":117,"y":382,"width":718,"height":12}},{"id":"58007b99-7a01-4dc0-9fa5-34dd386c2575","block_type":"box","text":"Trading activity in these derivative products could also potentially lead to greater liquidity for such","page_number":168,"box":{"x":116,"y":397,"width":727,"height":12}},{"id":"01accbd2-8cfb-4e31-a542-667b79f3fc94","block_type":"box","text":"products, increased purchase activity with respect to these iShares ETFs and increased assets under","page_number":168,"box":{"x":117,"y":413,"width":758,"height":12}},{"id":"68296fce-8cfc-46c7-954f-2281ed802768","block_type":"box","text":"management for BlackRock.","page_number":168,"box":{"x":117,"y":428,"width":215,"height":12}},{"id":"9ec84ccd-534d-4927-903d-2e918177c4bc","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or","page_number":168,"box":{"x":116,"y":459,"width":766,"height":12}},{"id":"41156ab2-0eb9-4d01-bb30-7caa395cace7","block_type":"box","text":"other distribution by BlackRock and may also enter into transactions with other clients of BlackRock","page_number":168,"box":{"x":116,"y":475,"width":744,"height":12}},{"id":"69d9347f-7eed-44d5-b620-5d9aec72c123","block_type":"box","text":"where such other clients have interests adverse to those of the Fund. At times, these activities may","page_number":168,"box":{"x":116,"y":490,"width":741,"height":12}},{"id":"885163c0-e29d-4050-8ae7-1dbb6b816894","block_type":"box","text":"cause business units or entities within BlackRock to give advice to clients that may cause these clients","page_number":168,"box":{"x":116,"y":506,"width":766,"height":12}},{"id":"e260655e-c488-427b-9136-e5b4e06aa0b6","block_type":"box","text":"to take actions adverse to the interests of the Fund. To the extent such transactions are permitted, a","page_number":168,"box":{"x":116,"y":521,"width":749,"height":12}},{"id":"47ad18b5-112e-4def-a751-69f1025f9720","block_type":"box","text":"Fund will deal with BlackRock on an arms-length basis.","page_number":168,"box":{"x":117,"y":537,"width":414,"height":12}},{"id":"42614ea9-b5df-4e72-9aed-28f7ec411b3c","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act as broker, dealer, agent, lender or","page_number":168,"box":{"x":116,"y":568,"width":729,"height":12}},{"id":"57d877ec-cecb-43bc-9b11-00fb0597da63","block_type":"box","text":"adviser or in other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups,","page_number":168,"box":{"x":116,"y":583,"width":760,"height":12}},{"id":"886325cb-a430-4218-b54d-5ad7fd1327f0","block_type":"box","text":"mark-downs, financial advisory fees, underwriting and placement fees, sales fees, financing and","page_number":168,"box":{"x":117,"y":599,"width":717,"height":12}},{"id":"19773e6e-14a7-42c0-a77b-07ff715b6db2","block_type":"box","text":"commitment fees, brokerage fees, other fees, compensation or profits, rates, terms and conditions","page_number":168,"box":{"x":116,"y":614,"width":735,"height":12}},{"id":"b546f629-4a7e-4f51-bd78-dbfe13f712c5","block_type":"box","text":"charged by BlackRock will be in its view commercially reasonable, although BlackRock, including its","page_number":168,"box":{"x":116,"y":630,"width":747,"height":12}},{"id":"e1ce48d7-be5f-40f2-9355-e7974873bdf2","block_type":"box","text":"sales personnel, will have an interest in obtaining fees and other amounts that are favorable to","page_number":168,"box":{"x":116,"y":645,"width":706,"height":12}},{"id":"3fa43840-0044-422f-8119-1b2fa264eb30","block_type":"box","text":"BlackRock and such sales personnel, which may have an adverse effect on the Funds. Index based","page_number":168,"box":{"x":117,"y":661,"width":740,"height":12}},{"id":"6676f53a-7c51-409d-82fa-ab01db9ec3c0","block_type":"box","text":"funds may use an index provider that is affiliated with another service provider of the Fund or","page_number":168,"box":{"x":116,"y":676,"width":690,"height":12}},{"id":"e78d8c97-77a0-4865-9163-9f81094c881b","block_type":"box","text":"BlackRock that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or","page_number":168,"box":{"x":117,"y":692,"width":751,"height":12}},{"id":"a8c2ea1c-1364-40eb-af4e-4062f138f32d","block_type":"box","text":"BlackRock.","page_number":168,"box":{"x":117,"y":707,"width":81,"height":10}},{"id":"bff7674a-12f7-47a8-9c8a-dcc61a6c57d8","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain","page_number":168,"box":{"x":116,"y":738,"width":755,"height":12}},{"id":"76e805a5-7c8c-448b-9acb-fea5be369c4e","block_type":"box","text":"fees and other amounts that they receive in connection with their service to the Funds as broker,","page_number":168,"box":{"x":116,"y":754,"width":715,"height":12}},{"id":"4d6a8481-c905-4986-9069-09a815475cf4","block_type":"box","text":"dealer, agent, lender, adviser or in other commercial capacities. No accounting to the Funds or their","page_number":168,"box":{"x":116,"y":769,"width":741,"height":12}},{"id":"d0d1003a-d18d-48db-8b74-be3d15bb8089","block_type":"box","text":"shareholders will be required, and no fees or other compensation payable by the Funds or their","page_number":168,"box":{"x":116,"y":785,"width":707,"height":12}},{"id":"f21f4f8b-0006-4f4e-b9d1-ca4248c119a6","block_type":"box","text":"shareholders will be reduced by reason of receipt by BlackRock of any such fees or other amounts.","page_number":168,"box":{"x":116,"y":800,"width":735,"height":12}},{"id":"9f6da195-10a6-4eb2-9fd8-f7aee654377c","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to","page_number":168,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"cec32388-8e5f-4ea4-8485-51604d436ee3","block_type":"box","text":"the Funds, BlackRock may take commercial steps in its own interests, which may have an adverse","page_number":168,"box":{"x":116,"y":847,"width":738,"height":12}},{"id":"a34eb4a9-7f24-4369-9415-696fdc835edf","block_type":"box","text":"effect on the Funds.","page_number":168,"box":{"x":116,"y":862,"width":153,"height":10}},{"id":"0cd40813-b51d-4681-b6ff-0b084c537d42","block_type":"box","text":"II-118","page_number":168,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"a5412bbf-b54c-4fec-9f66-fabd58caae58","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":168,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"308f0942-57b2-4300-8324-c4469bc50636","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s","page_number":169,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"01eb93b8-956e-4118-b31d-841eb91742af","block_type":"box","text":"own credit standing. BlackRock will not have any obligation to allow its credit to be used in connection","page_number":169,"box":{"x":116,"y":103,"width":760,"height":12}},{"id":"943634e4-f26a-42b9-b392-20cb65e69e6c","block_type":"box","text":"with a Fund’s establishment of its business relationships, nor is it expected that the Fund’s","page_number":169,"box":{"x":116,"y":118,"width":675,"height":12}},{"id":"a06afd75-e80a-48d1-b9f6-ca5e9cb43b2d","block_type":"box","text":"counterparties will rely on the credit of BlackRock in evaluating the Fund’s creditworthiness.","page_number":169,"box":{"x":116,"y":134,"width":684,"height":12}},{"id":"6a7c966c-5047-4640-a6c3-573578fb6972","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A.","page_number":169,"box":{"x":117,"y":165,"width":726,"height":12}},{"id":"3dd49394-b316-4cce-a91c-218cb88f25d9","block_type":"box","text":"(“BTC”), as applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as","page_number":169,"box":{"x":117,"y":180,"width":715,"height":12}},{"id":"36a4a628-ce2f-4df6-958f-b83abbf171e6","block_type":"box","text":"securities lending agent to, and receives a share of securities lending revenues from, the Funds.","page_number":169,"box":{"x":116,"y":196,"width":720,"height":12}},{"id":"2df8e708-e894-4931-b256-d1f4e8f68297","block_type":"box","text":"BlackRock will also receive compensation for managing the reinvestment of the cash collateral from","page_number":169,"box":{"x":117,"y":211,"width":744,"height":12}},{"id":"32ad925a-0901-4bc2-98ee-e9985f9c3393","block_type":"box","text":"securities lending. There are potential conflicts of interests in managing a securities lending program,","page_number":169,"box":{"x":116,"y":227,"width":755,"height":12}},{"id":"d24f5973-fdb8-40da-b3ae-ac3eb76b3654","block_type":"box","text":"including but not limited to: (i) BlackRock as securities lending agent may have an incentive to, among","page_number":169,"box":{"x":117,"y":242,"width":762,"height":12}},{"id":"061da90d-5451-4648-8fc5-380711b5086e","block_type":"box","text":"other things, increase or decrease the amount of securities on loan or to lend particular securities in","page_number":169,"box":{"x":116,"y":258,"width":745,"height":12}},{"id":"f3e42846-c955-4906-9211-c9cf8221ce2e","block_type":"box","text":"order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock","page_number":169,"box":{"x":116,"y":273,"width":750,"height":12}},{"id":"1caca397-f761-4271-aaf2-2d94421c45ce","block_type":"box","text":"as securities lending agent may have an incentive to allocate loans to clients that would provide more","page_number":169,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"79eba1da-7ebf-45ed-8e0c-1a6b72c4d90f","block_type":"box","text":"revenue to BlackRock. As described further below, BlackRock seeks to mitigate this conflict by","page_number":169,"box":{"x":117,"y":304,"width":706,"height":12}},{"id":"1cdcc812-465a-48a5-951e-f8f1ff832c82","block_type":"box","text":"providing its securities lending clients with equal lending opportunities over time in order to","page_number":169,"box":{"x":117,"y":320,"width":675,"height":12}},{"id":"56026ba2-9a17-409d-a5c5-7c02811a06a5","block_type":"box","text":"approximate pro rata allocation.","page_number":169,"box":{"x":116,"y":335,"width":240,"height":12}},{"id":"d111df24-d641-4ddf-a1ea-8c1c5ee29fe4","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients","page_number":169,"box":{"x":116,"y":366,"width":742,"height":12}},{"id":"0fe0affc-a24d-4b08-86a2-a92dcece3ca5","block_type":"box","text":"and/or funds against a shortfall in collateral in the event of borrower default. On a regular basis,","page_number":169,"box":{"x":116,"y":382,"width":713,"height":12}},{"id":"389a66e5-a553-4896-9e31-25d83cb0a21d","block_type":"box","text":"BlackRock calculates the potential dollar exposure of collateral shortfall resulting from a borrower","page_number":169,"box":{"x":117,"y":397,"width":725,"height":12}},{"id":"8de5a0c2-b0d9-4068-afc5-ca0a76513878","block_type":"box","text":"default (“shortfall risk”) in the securities lending program. BlackRock establishes program-wide","page_number":169,"box":{"x":116,"y":413,"width":705,"height":12}},{"id":"109ffb67-77e2-4e18-bb03-e79f4cb40c14","block_type":"box","text":"borrower limits (“credit limits”) to actively manage borrower-specific credit exposure. BlackRock","page_number":169,"box":{"x":117,"y":428,"width":711,"height":12}},{"id":"75dccf5e-61e8-4888-a83c-a5c3362f7bf7","block_type":"box","text":"oversees the risk model that calculates projected collateral shortfall values using loan-level factors","page_number":169,"box":{"x":116,"y":444,"width":734,"height":12}},{"id":"d1f915e0-4b4a-420e-b37d-794e10fe001b","block_type":"box","text":"such as loan and collateral type and market value as well as specific borrower credit characteristics.","page_number":169,"box":{"x":116,"y":459,"width":747,"height":12}},{"id":"8670fc54-e225-47d8-a272-9667caee5f9c","block_type":"box","text":"When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":169,"box":{"x":116,"y":475,"width":738,"height":12}},{"id":"e6f6dd7c-87ce-409c-bf71-6a7c34691322","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as","page_number":169,"box":{"x":116,"y":490,"width":768,"height":12}},{"id":"08f1b354-f0db-4c38-bfae-daaaaf2e9985","block_type":"box","text":"well as BlackRock-specific indemnification exposure may affect the amount of securities lending","page_number":169,"box":{"x":116,"y":506,"width":717,"height":12}},{"id":"acfe52db-3b1f-408d-a537-37dfc3423dcb","block_type":"box","text":"activity BlackRock may conduct at any given point in time by reducing the volume of lending","page_number":169,"box":{"x":116,"y":521,"width":687,"height":12}},{"id":"42937858-c6f0-4c7f-b744-db6671305770","block_type":"box","text":"opportunities for certain loans (including by asset type, collateral type and/or revenue profile).","page_number":169,"box":{"x":116,"y":537,"width":698,"height":12}},{"id":"0d6f03b3-15cd-4407-9d0a-d10c8d31ad75","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of","page_number":169,"box":{"x":117,"y":568,"width":764,"height":12}},{"id":"29daaf9f-4f94-477c-bf43-91ee83726b4c","block_type":"box","text":"a Fund or terminate a securities loan on behalf of a Fund for any reason, including but not limited to","page_number":169,"box":{"x":116,"y":583,"width":744,"height":12}},{"id":"5ae38960-0505-4b5b-9342-37ad30417b00","block_type":"box","text":"regulatory requirements and/or market rules, liquidity considerations, or credit considerations, which","page_number":169,"box":{"x":117,"y":599,"width":745,"height":12}},{"id":"35d91c55-223e-4933-bc7a-bb399f80be84","block_type":"box","text":"may impact Funds by reducing or eliminating the volume of lending opportunities for certain types of","page_number":169,"box":{"x":117,"y":614,"width":746,"height":12}},{"id":"4c42062b-6ea2-40fb-ab67-36b12e899c5b","block_type":"box","text":"loans, loans in particular markets, loans of particular securities or types of securities, or for loans","page_number":169,"box":{"x":117,"y":630,"width":720,"height":12}},{"id":"2c33d49b-6b44-40f2-ac30-385927548a68","block_type":"box","text":"overall. In addition, some borrowers may prefer certain BlackRock lenders that provide additional","page_number":169,"box":{"x":116,"y":645,"width":725,"height":12}},{"id":"96a3c518-7a55-48db-a5fd-913c246a2738","block_type":"box","text":"protections against lender default that are favored by their prudential regulation.","page_number":169,"box":{"x":117,"y":661,"width":590,"height":12}},{"id":"24c3dc56-b370-4d24-a7bb-dd9b5a84a1af","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over","page_number":169,"box":{"x":117,"y":692,"width":747,"height":12}},{"id":"e5ac8b16-d1d6-4c85-bfd1-d462c79203ce","block_type":"box","text":"time. In order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending","page_number":169,"box":{"x":116,"y":707,"width":733,"height":12}},{"id":"477321c6-3302-4013-aef6-bc95af26e9b3","block_type":"box","text":"capacity pursuant to the various program limits (i.e. indemnification exposure limit and borrower credit","page_number":169,"box":{"x":116,"y":723,"width":756,"height":12}},{"id":"c5524d4e-fe84-47fe-9ed7-a94168004918","block_type":"box","text":"limits); (ii) the lending portfolio must hold the asset at the time a loan opportunity arrives; and (iii) the","page_number":169,"box":{"x":117,"y":738,"width":742,"height":12}},{"id":"0cfd6292-5cfe-417b-a5bd-caaae86edb77","block_type":"box","text":"lending portfolio must also have enough inventory, either on its own or when aggregated with other","page_number":169,"box":{"x":117,"y":754,"width":733,"height":12}},{"id":"d6cc3f49-7d1c-41cf-94e2-a375282eef2a","block_type":"box","text":"portfolios into one single market delivery, to satisfy the loan request. In doing so, BlackRock seeks to","page_number":169,"box":{"x":117,"y":769,"width":748,"height":12}},{"id":"8d3237a7-4c47-41a5-9401-b501c7d08dd6","block_type":"box","text":"provide equal lending opportunities for all portfolios, independent of whether BlackRock indemnifies the","page_number":169,"box":{"x":117,"y":785,"width":765,"height":12}},{"id":"537921ee-7a08-4121-a50a-3750f5bb08bf","block_type":"box","text":"portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes. Specifically,","page_number":169,"box":{"x":117,"y":800,"width":738,"height":12}},{"id":"f5ff85c0-873c-417f-a609-a3dd79252a11","block_type":"box","text":"short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads","page_number":169,"box":{"x":116,"y":816,"width":744,"height":12}},{"id":"a29b6fca-be6a-49f2-8b5f-363853071f20","block_type":"box","text":"on different securities, and the overall limits imposed by the firm.","page_number":169,"box":{"x":116,"y":831,"width":483,"height":12}},{"id":"7fb55291-8d82-4689-9afc-b27c404330af","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":169,"box":{"x":117,"y":862,"width":769,"height":12}},{"id":"44135994-01ff-4c67-ac35-3d834c71937f","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the","page_number":169,"box":{"x":117,"y":878,"width":770,"height":12}},{"id":"322e7b57-ffb2-4f4e-8525-c26e66d93278","block_type":"box","text":"II-119","page_number":169,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"671f35b8-57dc-4826-a274-157d54f4f64f","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":169,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"283993be-2f81-4aa0-95a7-efc9525ea284","block_type":"box","text":"fact that they have different research payment arrangements. BlackRock, however, is not required to","page_number":170,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"e6f099e1-557b-4673-9e6c-3f275c9c7a14","block_type":"box","text":"aggregate orders if portfolio management decisions for different accounts are made separately, or if","page_number":170,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"ad6fc4ee-a948-4909-8eb9-ad16afc66967","block_type":"box","text":"they determine that aggregating is not practicable or required, or in cases involving client direction.","page_number":170,"box":{"x":116,"y":118,"width":737,"height":12}},{"id":"6df2f85a-2ff8-4a69-8b30-c2dfd7c27140","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution","page_number":170,"box":{"x":117,"y":146,"width":748,"height":12}},{"id":"3c59e730-cf8a-41c3-ae92-0ca46da54c8e","block_type":"box","text":"on the entire volume of securities purchased or sold. When this occurs, the various prices may be","page_number":170,"box":{"x":116,"y":162,"width":730,"height":12}},{"id":"25ce08bd-ddbf-421f-afe4-76b4d1c0288e","block_type":"box","text":"averaged, and the Funds will be charged or credited with the average price. Thus, the effect of the","page_number":170,"box":{"x":116,"y":177,"width":734,"height":12}},{"id":"df54d6f2-20c4-40fa-af35-a7518c92f1a0","block_type":"box","text":"aggregation may operate on some occasions to the disadvantage of the Funds. In addition, under","page_number":170,"box":{"x":116,"y":193,"width":730,"height":12}},{"id":"e6318e24-7b69-44cb-9712-d6cc755d57ee","block_type":"box","text":"certain circumstances, the Funds will not be charged the same commission or commission equivalent","page_number":170,"box":{"x":116,"y":209,"width":759,"height":11}},{"id":"72eed7ec-cfcb-4e60-a628-60e020758879","block_type":"box","text":"rates in connection with an aggregated order.","page_number":170,"box":{"x":117,"y":224,"width":341,"height":12}},{"id":"a3a1bd71-ac15-4ffa-abd3-5c2bd5745d86","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage — Transactions in","page_number":170,"box":{"x":116,"y":252,"width":743,"height":12}},{"id":"f09dccd5-51f7-4202-940e-9899c68dc054","block_type":"box","text":"Portfolio Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to","page_number":170,"box":{"x":117,"y":268,"width":757,"height":12}},{"id":"2f5b9ccd-2c5a-4804-bb59-3ef8dda16f84","block_type":"box","text":"pay a broker or dealer a commission for effecting a transaction that exceeds the amount another","page_number":170,"box":{"x":117,"y":283,"width":720,"height":12}},{"id":"6ba79584-aa8a-4e37-945f-c41a5ab031bc","block_type":"box","text":"broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":170,"box":{"x":117,"y":299,"width":746,"height":12}},{"id":"e469d880-75dc-4153-a72a-6d52a150cc64","block_type":"box","text":"brokerage and research services provided by that broker or dealer. Under MiFID II, EU investment","page_number":170,"box":{"x":117,"y":314,"width":734,"height":12}},{"id":"86e6bf06-7258-4467-b370-edd0e68be6e7","block_type":"box","text":"managers, including BlackRock International Limited (“BIL”) which acts as a sub-adviser to certain","page_number":170,"box":{"x":117,"y":330,"width":732,"height":12}},{"id":"85a6936e-ae29-412a-b132-21c2bc8d9be0","block_type":"box","text":"Funds, pay for research from brokers and dealers directly out of their own resources, rather than","page_number":170,"box":{"x":117,"y":345,"width":721,"height":12}},{"id":"04f66026-6ab1-4b6e-9986-145c214581cc","block_type":"box","text":"through client commissions.","page_number":170,"box":{"x":116,"y":361,"width":212,"height":12}},{"id":"da357e30-3ef6-45b4-bc1c-b7048e538588","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other","page_number":170,"box":{"x":116,"y":389,"width":728,"height":12}},{"id":"e4dc2297-b960-40a3-9edc-74ef7d83550d","block_type":"box","text":"BlackRock client accounts or personnel, directly or through correspondent relationships, with research","page_number":170,"box":{"x":117,"y":405,"width":762,"height":12}},{"id":"8a31759c-33d1-4518-979f-ec3166c82daf","block_type":"box","text":"or other appropriate services which provide, in BlackRock’s view, appropriate assistance to BlackRock","page_number":170,"box":{"x":116,"y":420,"width":765,"height":12}},{"id":"d9bfce6d-5ca7-4c87-b7bd-67a90bd22579","block_type":"box","text":"in the investment decision-making process (including with respect to futures, fixed-price offerings and","page_number":170,"box":{"x":117,"y":436,"width":756,"height":12}},{"id":"6eab1242-fd89-48df-b975-c4b454ef0c55","block_type":"box","text":"OTC transactions). Such research or other services may include, to the extent permitted by law,","page_number":170,"box":{"x":116,"y":451,"width":717,"height":12}},{"id":"714dc055-5ec2-4909-9a00-f30f4e0eaf35","block_type":"box","text":"research reports on companies, industries and securities; economic and financial data; financial","page_number":170,"box":{"x":117,"y":467,"width":714,"height":12}},{"id":"65afc993-cd3f-419a-97ea-30e467ed38de","block_type":"box","text":"publications; proxy analysis; trade industry seminars; computer data bases; research-oriented software","page_number":170,"box":{"x":117,"y":482,"width":769,"height":12}},{"id":"ce2a6ee2-2606-47d2-adb1-4de54aa79095","block_type":"box","text":"and other services and products.","page_number":170,"box":{"x":116,"y":498,"width":249,"height":12}},{"id":"85d7f26e-ca15-4e6b-9617-1ca8d1c54a5a","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds","page_number":170,"box":{"x":117,"y":526,"width":745,"height":12}},{"id":"0556e9c7-a092-41d8-9350-972a57c1ba93","block_type":"box","text":"and other BlackRock client accounts, including in connection with BlackRock client accounts other than","page_number":170,"box":{"x":116,"y":542,"width":770,"height":12}},{"id":"59acfd80-9ef2-43db-a456-ca8f0b402f02","block_type":"box","text":"those that pay commissions to the broker relating to the research or other service arrangements. Such","page_number":170,"box":{"x":116,"y":557,"width":766,"height":12}},{"id":"2adc332f-87b4-4a09-bed4-4bb4139aa0eb","block_type":"box","text":"products and services may disproportionately benefit other BlackRock client accounts relative to the","page_number":170,"box":{"x":117,"y":573,"width":745,"height":12}},{"id":"e1a9e04d-6f38-497c-aa3c-a8745cdefbe6","block_type":"box","text":"Funds based on the amount of brokerage commissions paid by the Funds and such other BlackRock","page_number":170,"box":{"x":117,"y":588,"width":753,"height":12}},{"id":"f0174a84-07c1-4daa-bf12-7db1dd2ef6ca","block_type":"box","text":"client accounts. For example, research or other services that are paid for through one client’s","page_number":170,"box":{"x":116,"y":604,"width":696,"height":12}},{"id":"fd4881ae-15d8-4dd4-8a5f-a4e2c2ec2ebe","block_type":"box","text":"commissions may not be used in managing that client’s account. In addition, other BlackRock client","page_number":170,"box":{"x":116,"y":619,"width":743,"height":12}},{"id":"a197bd1d-a3d2-4e97-b36a-16c48be54171","block_type":"box","text":"accounts may receive the benefit, including disproportionate benefits, of economies of scale or price","page_number":170,"box":{"x":116,"y":635,"width":748,"height":12}},{"id":"21b382a2-3149-4cee-b295-5022d909b6e5","block_type":"box","text":"discounts in connection with products and services that may be provided to the Funds and to such","page_number":170,"box":{"x":116,"y":650,"width":734,"height":12}},{"id":"5cde2b94-77da-4694-a078-23738ed3aeb4","block_type":"box","text":"other BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay","page_number":170,"box":{"x":116,"y":666,"width":755,"height":12}},{"id":"9eb3de9e-a0c9-4f60-819b-d6f94d57f573","block_type":"box","text":"for those products and services itself.","page_number":170,"box":{"x":116,"y":681,"width":276,"height":12}},{"id":"f30cff60-89cb-43b8-a0fc-f728e5ffeafa","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who,","page_number":170,"box":{"x":117,"y":710,"width":759,"height":12}},{"id":"ed91323f-c720-4c93-b120-b233cdd473de","block_type":"box","text":"pursuant to such arrangements, provide research or other services in order to ensure the continued","page_number":170,"box":{"x":117,"y":725,"width":737,"height":12}},{"id":"82d6adfa-956a-4144-a19f-29b48416b1b0","block_type":"box","text":"receipt of research or other services BlackRock believes are useful in its investment decision-making","page_number":170,"box":{"x":117,"y":740,"width":747,"height":13}},{"id":"22591ba2-709b-4a5d-8f00-52062630d68f","block_type":"box","text":"process. BlackRock may from time to time choose not to engage in the above described arrangements","page_number":170,"box":{"x":117,"y":756,"width":762,"height":12}},{"id":"35c16183-d758-4352-900a-2a7022b332d2","block_type":"box","text":"to varying degrees. BlackRock, unless prohibited by applicable law, may also enter into commission","page_number":170,"box":{"x":116,"y":772,"width":740,"height":12}},{"id":"dba6ddc3-6605-4076-9137-1d3da8c4824c","block_type":"box","text":"sharing arrangements under which BlackRock may execute transactions through a broker-dealer and","page_number":170,"box":{"x":116,"y":787,"width":751,"height":12}},{"id":"8e14ce6a-d058-40ae-84e4-2bf4830e334e","block_type":"box","text":"request that the broker-dealer allocate a portion of the commissions or commission credits to another","page_number":170,"box":{"x":117,"y":802,"width":750,"height":12}},{"id":"1b669e28-a6b7-43a6-8093-d8138e68fe7d","block_type":"box","text":"firm that provides research to BlackRock. To the extent that BlackRock engages in commission sharing","page_number":170,"box":{"x":116,"y":818,"width":766,"height":12}},{"id":"355d7c02-a4dd-4991-bf09-375d43371ed0","block_type":"box","text":"arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":170,"box":{"x":116,"y":833,"width":636,"height":13}},{"id":"a418b0e5-4d7f-432c-b3a7-8408883218ac","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation,","page_number":170,"box":{"x":117,"y":862,"width":724,"height":12}},{"id":"bcc904c2-8659-46ec-88b5-396270988b7d","block_type":"box","text":"ECNs in which BlackRock has an investment or other interest, to the extent permitted by applicable","page_number":170,"box":{"x":117,"y":877,"width":741,"height":12}},{"id":"d7ebd4b1-839e-4ae6-92ea-bedd07a55d84","block_type":"box","text":"II-120","page_number":170,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"169bb240-aec2-4d56-9e6d-abfa9676f4bd","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":170,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"6580c19d-c24d-46a3-827b-e92830ae5d93","block_type":"box","text":"law) in executing client securities transactions for certain types of securities. These ECNs may charge","page_number":171,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"3a0de759-d8dc-4855-a014-19fe27cd9a0e","block_type":"box","text":"fees for their services, including access fees and transaction fees. The transaction fees, which are","page_number":171,"box":{"x":116,"y":102,"width":733,"height":13}},{"id":"c49e99a0-d50b-4d3c-9d6f-613e0d380a65","block_type":"box","text":"similar to commissions or markups/markdowns, will generally be charged to clients and, like","page_number":171,"box":{"x":116,"y":118,"width":686,"height":12}},{"id":"be385dbe-c709-4392-93a8-00632fd5e9c6","block_type":"box","text":"commissions and markups/markdowns, would generally be included in the cost of the securities","page_number":171,"box":{"x":116,"y":134,"width":715,"height":12}},{"id":"2d0689fe-c3ab-4fd8-bd95-126f966d60bb","block_type":"box","text":"purchased. Access fees may be paid by BlackRock even though incurred in connection with executing","page_number":171,"box":{"x":117,"y":149,"width":763,"height":12}},{"id":"11aca331-8a0b-4121-8427-ac788764a15d","block_type":"box","text":"transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer","page_number":171,"box":{"x":116,"y":165,"width":715,"height":12}},{"id":"dd1f7452-6506-4109-aeda-35561ba340a8","block_type":"box","text":"volume discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only","page_number":171,"box":{"x":116,"y":180,"width":733,"height":12}},{"id":"e8f0b065-165d-4c43-bcb7-c4de57550615","block_type":"box","text":"utilize ECNs consistent with its obligation to seek to obtain best execution in client transactions.","page_number":171,"box":{"x":117,"y":196,"width":711,"height":12}},{"id":"8b0468ab-c3fa-43ff-8831-f61b75002c21","block_type":"box","text":"BlackRock owns a minority interest in, and is a member of, Members Exchange (“MEMX”), a newly","page_number":171,"box":{"x":117,"y":227,"width":739,"height":12}},{"id":"13f7a5c6-5d6b-4275-bf9b-934c0ff4715d","block_type":"box","text":"created U.S. stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers","page_number":171,"box":{"x":116,"y":242,"width":772,"height":12}},{"id":"07f2ac4b-0d9b-43f2-b184-d442eb1a7f08","block_type":"box","text":"select MEMX as the appropriate venue for execution of orders placed by BlackRock traders on behalf","page_number":171,"box":{"x":116,"y":258,"width":759,"height":12}},{"id":"1c1c5820-078e-43b7-9b7a-13d90760f263","block_type":"box","text":"of client portfolios.","page_number":171,"box":{"x":116,"y":273,"width":140,"height":12}},{"id":"5cb627d4-c1ad-4845-b6a3-fbc2fb57a45c","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from","page_number":171,"box":{"x":117,"y":304,"width":697,"height":12}},{"id":"13c1bae6-8b0f-4b15-b200-0bfdae548492","block_type":"box","text":"influencing proxy voting decisions that it makes on behalf of advisory clients, including the Funds, and","page_number":171,"box":{"x":117,"y":320,"width":759,"height":12}},{"id":"6ff92b83-6d5d-495a-a1f7-49abfde4001c","block_type":"box","text":"to help ensure that such decisions are made in accordance with BlackRock’s fiduciary obligations to its","page_number":171,"box":{"x":116,"y":335,"width":768,"height":12}},{"id":"fe79f29d-6763-4ba7-8328-db0d71a1ca48","block_type":"box","text":"clients. Nevertheless, notwithstanding such proxy voting policies and procedures, actual proxy voting","page_number":171,"box":{"x":116,"y":351,"width":754,"height":12}},{"id":"8b0e1b89-7b3e-437d-8ddc-392cd0730c6a","block_type":"box","text":"decisions of BlackRock may have the effect of favoring the interests of other clients or businesses of","page_number":171,"box":{"x":116,"y":366,"width":750,"height":12}},{"id":"2a4255ed-c489-4979-9758-036f25ce77cb","block_type":"box","text":"other divisions or units of BlackRock, provided that BlackRock believes such voting decisions to be in","page_number":171,"box":{"x":116,"y":382,"width":756,"height":12}},{"id":"b04cf37d-4013-4140-a065-523acc53c5b4","block_type":"box","text":"accordance with its fiduciary obligations. For a more detailed discussion of these policies and","page_number":171,"box":{"x":116,"y":397,"width":696,"height":12}},{"id":"afb21e1a-82fc-4690-b2cb-3af23bd47334","block_type":"box","text":"procedures, see “Proxy Voting Policies and Procedures.”","page_number":171,"box":{"x":117,"y":413,"width":426,"height":12}},{"id":"49e3899e-2fde-4740-b3af-21487336ec9a","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds","page_number":171,"box":{"x":117,"y":444,"width":747,"height":12}},{"id":"c8533c22-dd34-4dd1-8a85-8bf321348718","block_type":"box","text":"and separately managed accounts) may, subject to compliance with applicable law, purchase and hold","page_number":171,"box":{"x":116,"y":459,"width":768,"height":12}},{"id":"30ef3f80-6afd-4980-967a-b08709fa1118","block_type":"box","text":"shares of a Fund. Increasing a Fund’s assets may enhance investment flexibility and diversification","page_number":171,"box":{"x":116,"y":475,"width":740,"height":12}},{"id":"611f72d7-d085-4aa4-96c6-c786e7bb3be3","block_type":"box","text":"and may contribute to economies of scale that tend to reduce the Fund’s expense ratio. BlackRock","page_number":171,"box":{"x":116,"y":490,"width":738,"height":12}},{"id":"8b20acf2-1e71-4987-8cb6-ac7963140b30","block_type":"box","text":"reserves the right, subject to compliance with applicable law, to redeem at any time some or all of the","page_number":171,"box":{"x":117,"y":506,"width":756,"height":12}},{"id":"f5a25aa4-e818-4364-887c-a7cdef31d23f","block_type":"box","text":"shares of a Fund acquired for its own accounts. A large redemption of shares of a Fund by BlackRock","page_number":171,"box":{"x":116,"y":521,"width":762,"height":12}},{"id":"6cb3a898-e6ea-459e-98f2-c37cacb999d1","block_type":"box","text":"could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund’s","page_number":171,"box":{"x":116,"y":537,"width":770,"height":12}},{"id":"5a5fff2f-6669-43fe-8b7c-d5c514bede56","block_type":"box","text":"investment flexibility, portfolio diversification and expense ratio. BlackRock seeks to consider the effect","page_number":171,"box":{"x":117,"y":552,"width":766,"height":12}},{"id":"b2fe39c4-1450-47af-9586-40d0fd75b6b6","block_type":"box","text":"of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is not","page_number":171,"box":{"x":116,"y":568,"width":754,"height":12}},{"id":"69134dcc-8889-4f24-a3b4-77acd5de63ba","block_type":"box","text":"obligated to do so and may elect not to do so.","page_number":171,"box":{"x":116,"y":583,"width":344,"height":12}},{"id":"d32f194e-02e6-4460-b7f9-1919c7b9ef7d","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in","page_number":171,"box":{"x":117,"y":614,"width":725,"height":12}},{"id":"a7a787c4-ac46-48a6-a21c-913e258893b4","block_type":"box","text":"which BlackRock has significant debt or equity investments or other interests. A Fund may also invest","page_number":171,"box":{"x":116,"y":630,"width":759,"height":12}},{"id":"f608dbb1-ea4c-4856-b613-8f16c2439846","block_type":"box","text":"in issuances (such as structured notes) by entities for which BlackRock provides and is compensated","page_number":171,"box":{"x":117,"y":645,"width":756,"height":12}},{"id":"ee9a5b27-9a58-46de-abf2-375332bc1290","block_type":"box","text":"for cash management services relating to the proceeds from the sale of such issuances. In making","page_number":171,"box":{"x":116,"y":661,"width":732,"height":12}},{"id":"6c3b87f0-307f-4a0d-b4de-1ef9ad020dbc","block_type":"box","text":"investment decisions for a Fund, BlackRock is not permitted to obtain or use material non-public","page_number":171,"box":{"x":117,"y":676,"width":713,"height":12}},{"id":"aca38454-07f4-4e17-b671-53378bed2bc7","block_type":"box","text":"information acquired by any unit of BlackRock, in the course of these activities. In addition, from time to","page_number":171,"box":{"x":117,"y":692,"width":765,"height":12}},{"id":"3e597d6f-ae1c-47c1-8efc-cfb33ee57bac","block_type":"box","text":"time, the activities of BlackRock may limit a Fund’s flexibility in purchases and sales of securities. As","page_number":171,"box":{"x":116,"y":707,"width":745,"height":12}},{"id":"757dabdd-bd1a-44f7-b9f7-4c5b73c6dbf7","block_type":"box","text":"indicated below, BlackRock may engage in transactions with companies in which BlackRock-advised","page_number":171,"box":{"x":117,"y":723,"width":747,"height":12}},{"id":"86a37684-a3fe-4037-9202-9b9b0c49e83c","block_type":"box","text":"funds or other clients of BlackRock have an investment.","page_number":171,"box":{"x":116,"y":738,"width":413,"height":10}},{"id":"6ba6fca8-8627-42b5-add2-a778e0aaa0ef","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting","page_number":171,"box":{"x":117,"y":769,"width":727,"height":12}},{"id":"2496f3b9-0e37-456d-839c-be71803e66f6","block_type":"box","text":"sales of the Funds. With respect to BlackRock and its personnel, the remuneration and profitability","page_number":171,"box":{"x":116,"y":785,"width":730,"height":12}},{"id":"fc5aa2d4-e145-4e64-ad8e-2306632c9b46","block_type":"box","text":"relating to services to and sales of the Funds or other products may be greater than remuneration and","page_number":171,"box":{"x":117,"y":800,"width":756,"height":12}},{"id":"e9be3ba0-b394-4aed-b18f-9df895a5f7f0","block_type":"box","text":"profitability relating to services to and sales of certain funds or other products that might be provided or","page_number":171,"box":{"x":117,"y":816,"width":763,"height":12}},{"id":"d9183d7c-8ec5-438e-971d-17fae654a3c4","block_type":"box","text":"offered. BlackRock and its sales personnel may directly or indirectly receive a portion of the fees and","page_number":171,"box":{"x":116,"y":831,"width":753,"height":12}},{"id":"a0a7b953-c8fb-4132-87cc-ef4c06c2c402","block_type":"box","text":"commissions charged to the Funds or their shareholders. BlackRock and its advisory or other","page_number":171,"box":{"x":116,"y":847,"width":698,"height":12}},{"id":"9ef0710c-fd79-4f7b-bd3e-b547b5555b4c","block_type":"box","text":"personnel may also benefit from increased amounts of assets under management. Fees and","page_number":171,"box":{"x":117,"y":862,"width":692,"height":12}},{"id":"e58a79ee-aab9-4cf5-9f7b-45fece5af99b","block_type":"box","text":"commissions may also be higher than for other products or services, and the remuneration and","page_number":171,"box":{"x":116,"y":878,"width":711,"height":12}},{"id":"30ae1a94-3618-4839-8053-77ad0677c632","block_type":"box","text":"II-121","page_number":171,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"def98a74-830c-459b-a62b-09b9f82f2af3","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":171,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"dc4faab8-a268-45b7-bfa3-41675965838f","block_type":"box","text":"profitability to BlackRock and such personnel resulting from transactions on behalf of or management","page_number":172,"box":{"x":117,"y":87,"width":756,"height":12}},{"id":"84da7b21-9d00-48d5-9a55-1f4828854e93","block_type":"box","text":"of the Funds may be greater than the remuneration and profitability resulting from other funds or","page_number":172,"box":{"x":116,"y":102,"width":719,"height":13}},{"id":"0f8f4991-db86-475f-98d6-10a7c73f0e90","block_type":"box","text":"products.","page_number":172,"box":{"x":117,"y":118,"width":73,"height":12}},{"id":"4252d259-3337-42e0-b598-ada5d8c1ece3","block_type":"box","text":"BlackRock may provide valuation assistance to certain clients with respect to certain securities or other","page_number":172,"box":{"x":117,"y":149,"width":769,"height":12}},{"id":"8cc4a805-ccdf-47ea-adea-5ac28afd1d68","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the","page_number":172,"box":{"x":117,"y":165,"width":749,"height":12}},{"id":"b99149ff-5f7f-401a-be27-32ca942fd994","block_type":"box","text":"valuations for the same securities or investments assigned by a Fund’s pricing vendors, especially if","page_number":172,"box":{"x":116,"y":180,"width":747,"height":12}},{"id":"3b607291-6c45-4096-9c8e-7822de22335f","block_type":"box","text":"such valuations are based on broker-dealer quotes or other data sources unavailable to the Fund’s","page_number":172,"box":{"x":116,"y":196,"width":739,"height":11}},{"id":"395d8a8f-3b46-4977-a7c1-19788e0b5e6a","block_type":"box","text":"pricing vendors. While BlackRock will generally communicate its valuation information or","page_number":172,"box":{"x":117,"y":211,"width":660,"height":12}},{"id":"60b035e4-3a4c-4750-b15f-8f3ea1d5630c","block_type":"box","text":"determinations to a Fund’s pricing vendors and/or fund accountants, there may be instances where the","page_number":172,"box":{"x":116,"y":227,"width":769,"height":12}},{"id":"ee72973a-437a-4f5a-ae65-a527d8c5ec6a","block_type":"box","text":"Fund’s pricing vendors or fund accountants assign a different valuation to a security or other","page_number":172,"box":{"x":117,"y":242,"width":688,"height":12}},{"id":"56533e93-be4a-4b79-8813-67e9374b4992","block_type":"box","text":"investment than the valuation for such security or investment determined or recommended by","page_number":172,"box":{"x":117,"y":258,"width":699,"height":12}},{"id":"efcad7bf-88bf-4777-8714-b32b9d987234","block_type":"box","text":"BlackRock.","page_number":172,"box":{"x":117,"y":273,"width":88,"height":10}},{"id":"9aff8184-0412-442e-9774-36fed77869ad","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when","page_number":172,"box":{"x":116,"y":304,"width":762,"height":12}},{"id":"ca361fcb-1a41-48e5-968e-dfb13ba2bd88","block_type":"box","text":"market quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s","page_number":172,"box":{"x":117,"y":320,"width":736,"height":12}},{"id":"e2a97aa8-ac0f-46de-b4b5-d1424dd0f91d","block_type":"box","text":"investments are valued at fair value by BlackRock. BlackRock has been designated as the Fund’s","page_number":172,"box":{"x":117,"y":335,"width":730,"height":12}},{"id":"4c3acc8c-a404-426a-9474-cc011bf240ba","block_type":"box","text":"valuation designee pursuant to Rule 2a-5 under the Investment Company Act and acts through","page_number":172,"box":{"x":116,"y":351,"width":710,"height":12}},{"id":"f6b2a6a5-998b-438b-8e01-76ce7c69342f","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee (the “2a-5 Committee”), with assistance from other BlackRock","page_number":172,"box":{"x":117,"y":366,"width":723,"height":12}},{"id":"e6782b5e-2322-4fe5-9dfd-d19eba135114","block_type":"box","text":"pricing committees and in accordance with BlackRock’s policies and procedures (the “Valuation","page_number":172,"box":{"x":117,"y":382,"width":713,"height":12}},{"id":"71ae469d-aa9f-46e2-aa1d-6c171b7d9657","block_type":"box","text":"Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the price","page_number":172,"box":{"x":117,"y":397,"width":760,"height":12}},{"id":"141171f9-6436-4511-8a95-1c1289a8f6cf","block_type":"box","text":"that a Fund might reasonably expect to receive from the current sale of that asset or liability in an","page_number":172,"box":{"x":116,"y":413,"width":726,"height":12}},{"id":"4e1c332e-3ea5-4ec1-8b02-31605483c30a","block_type":"box","text":"arm’s-length transaction. The price generally may not be determined based on what a Fund might","page_number":172,"box":{"x":116,"y":428,"width":730,"height":12}},{"id":"265ea5dd-339c-4b90-8001-151d51b59e08","block_type":"box","text":"reasonably expect to receive for selling an asset or liability at a later time or if it holds the asset or","page_number":172,"box":{"x":117,"y":444,"width":728,"height":12}},{"id":"0c3dd701-3219-4a88-8664-faca6def2485","block_type":"box","text":"liability to maturity. While fair value determinations will be based upon all available factors that","page_number":172,"box":{"x":117,"y":459,"width":701,"height":12}},{"id":"cb268f06-debe-4415-bc6f-0b00930d4a5b","block_type":"box","text":"BlackRock deems relevant at the time of the determination, and may be based on analytical values","page_number":172,"box":{"x":117,"y":475,"width":739,"height":12}},{"id":"42c885a2-fe63-4930-8931-ba031955f870","block_type":"box","text":"determined by BlackRock using proprietary or third party valuation models, fair value represents only a","page_number":172,"box":{"x":116,"y":490,"width":767,"height":12}},{"id":"3cce0868-0770-44f2-b42f-2db5fdc01ce4","block_type":"box","text":"good faith approximation of the value of an asset or liability. 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There may be limited availability of derivatives that provide indirect exposure to","page_number":174,"box":{"x":117,"y":490,"width":769,"height":12}},{"id":"4d55e326-f030-479d-a49e-ae28ce0eb0a3","block_type":"box","text":"an impacted security. BlackRock clients can be subject to more than one ownership limitation","page_number":174,"box":{"x":116,"y":506,"width":698,"height":12}},{"id":"7d3cdc68-843e-4744-95e7-288c204622f8","block_type":"box","text":"depending on each client’s holdings, and each ownership limitation can impact multiple securities held","page_number":174,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"ed251e52-a764-4099-9873-0f94aa94d1bf","block_type":"box","text":"by the client. Certain clients or shareholders may have their own overlapping obligations to monitor","page_number":174,"box":{"x":117,"y":537,"width":738,"height":12}},{"id":"2941c5bf-51fb-4612-ae71-824871a0f32e","block_type":"box","text":"their compliance with ownership limitations across their investments.","page_number":174,"box":{"x":116,"y":552,"width":513,"height":12}},{"id":"99dfa7fa-d7af-4ccb-9f54-52ef5a8c8c39","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a","page_number":174,"box":{"x":117,"y":583,"width":738,"height":12}},{"id":"07e8d41f-e10f-490c-937e-1458b64c0c11","block_type":"box","text":"BlackRock client or as a result of corporate actions by the issuer, the ability of BlackRock on behalf of","page_number":174,"box":{"x":117,"y":599,"width":758,"height":12}},{"id":"cfba1670-5460-4430-a8a4-e1e4f14e8a4a","block_type":"box","text":"clients to purchase or dispose of investments, or exercise rights (including voting) or undertake","page_number":174,"box":{"x":116,"y":614,"width":709,"height":12}},{"id":"bd52eacb-006f-40ee-8695-8ff91cc35e51","block_type":"box","text":"business transactions, may be restricted by law, regulation, rule, or organizational documents or","page_number":174,"box":{"x":117,"y":630,"width":717,"height":12}},{"id":"a6a94f3d-1b81-4232-b71b-c9ed6eb7fa6f","block_type":"box","text":"otherwise impaired. 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BlackRock on behalf of its","page_number":174,"box":{"x":116,"y":723,"width":735,"height":12}},{"id":"58e28440-498c-4d84-b013-76c85af95467","block_type":"box","text":"clients may limit purchases, sell existing investments, utilize indirect investments, utilize information","page_number":174,"box":{"x":116,"y":738,"width":737,"height":12}},{"id":"793182aa-7b34-433d-bda4-25da61926942","block_type":"box","text":"barriers, or otherwise restrict, forgo, or limit the exercise of rights (including transferring, outsourcing, or","page_number":174,"box":{"x":117,"y":754,"width":767,"height":12}},{"id":"6b46b108-6e2b-458c-a3e9-14332984409f","block_type":"box","text":"limiting voting rights or forgoing the right to receive dividends) when BlackRock, in its sole discretion,","page_number":174,"box":{"x":117,"y":769,"width":745,"height":12}},{"id":"5163dc23-1019-4879-9797-b13e568e79dc","block_type":"box","text":"deems it appropriate in light of potential regulatory or other restrictions on ownership or other","page_number":174,"box":{"x":116,"y":785,"width":690,"height":12}},{"id":"00284f78-0f90-4808-aac9-d60fb22378f2","block_type":"box","text":"consequences resulting from reaching investment thresholds. 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However,","page_number":174,"box":{"x":116,"y":862,"width":764,"height":12}},{"id":"63e9d81e-19c4-4050-bfb6-4ce51528967f","block_type":"box","text":"there is no guarantee that permission will be granted, or that, once granted, it will not be modified or","page_number":174,"box":{"x":116,"y":878,"width":746,"height":12}},{"id":"6ea06bc0-b8c4-4376-9932-8fbccb96e005","block_type":"box","text":"II-124","page_number":174,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"698b7496-68cd-4c89-90ce-7a44c355ae2f","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":174,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"392043b1-5afc-4fa2-872c-955071dacaf2","block_type":"box","text":"revoked at a later date with minimal or no notice. The issuer and/or regulator may also require that","page_number":175,"box":{"x":117,"y":87,"width":734,"height":12}},{"id":"212b640a-de47-43ed-bafe-6308cf5d6730","block_type":"box","text":"BlackRock on behalf of itself and its clients take or refrain from taking certain actions in connection with","page_number":175,"box":{"x":117,"y":102,"width":770,"height":13}},{"id":"2bcdd13b-b6c1-4cdc-87bb-a8122d14296c","block_type":"box","text":"the approval, order, consent, relief or non-disapproval, which BlackRock may accept if it believes the","page_number":175,"box":{"x":116,"y":118,"width":752,"height":12}},{"id":"17e31e1c-b1e0-4b98-be13-e129644542d3","block_type":"box","text":"benefits outweigh the costs and may limit BlackRock from taking actions that it otherwise would take.","page_number":175,"box":{"x":117,"y":134,"width":753,"height":12}},{"id":"51413a15-ddb5-40b4-84f5-9f555e7df9c1","block_type":"box","text":"In those circumstances where ownership thresholds or limitations must be observed, BlackRock seeks","page_number":175,"box":{"x":117,"y":149,"width":765,"height":12}},{"id":"16798114-fe16-4c3e-8ea5-75c95ed29092","block_type":"box","text":"to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":175,"box":{"x":116,"y":165,"width":693,"height":12}},{"id":"9e987dda-6a1e-490e-bb1c-746992a4b1ba","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent","page_number":175,"box":{"x":117,"y":180,"width":767,"height":12}},{"id":"8836bdcb-3245-445a-9e41-0d21a1e14d10","block_type":"box","text":"the occurrence of a breach of any applicable ownership threshold or limits, including, for example,","page_number":175,"box":{"x":116,"y":196,"width":731,"height":12}},{"id":"cc7288d1-da67-4f81-8998-9432532f8df1","block_type":"box","text":"when ownership in certain securities nears an applicable threshold, BlackRock may limit additional","page_number":175,"box":{"x":116,"y":211,"width":736,"height":12}},{"id":"3d8245e7-9d75-48a7-bc56-0f73ee8c4ecf","block_type":"box","text":"purchases in such securities or, with respect to ETFs, remove such securities from the list of Deposit","page_number":175,"box":{"x":117,"y":227,"width":751,"height":11}},{"id":"04e962e1-ec6b-437b-9c81-4046eca31ee5","block_type":"box","text":"Securities to be delivered to the Fund in connection with purchases of Creation Units of such Fund. 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To t","page_number":175,"box":{"x":117,"y":481,"width":346,"height":12}},{"id":"06a1827a-cd34-44d4-90d7-357901304e59","block_type":"box","text":"he extent permitted by applicable laws, the Funds may","page_number":175,"box":{"x":464,"y":481,"width":401,"height":12}},{"id":"0c4fb4c6-7d09-4886-a728-42f3d4da50dd","block_type":"box","text":"seek to license and use such indices as part of their investment strategy. Index based funds that seek to","page_number":175,"box":{"x":116,"y":496,"width":762,"height":12}},{"id":"fe63af8c-23c2-4d33-9cc1-10a7b5bef0d6","block_type":"box","text":"track the performance of securities indices also may us","page_number":175,"box":{"x":116,"y":512,"width":400,"height":12}},{"id":"73665b86-8b8c-43bb-a6f9-5b1d510335fb","block_type":"box","text":"e the name of the index or index provider in the","page_number":175,"box":{"x":517,"y":512,"width":348,"height":12}},{"id":"d49d9b89-fac0-4541-913b-d3fa106f9653","block_type":"box","text":"fund name. Index providers, including BlackRock (to","page_number":175,"box":{"x":116,"y":527,"width":384,"height":12}},{"id":"c0240a4f-5529-4c72-a57f-9d0016512665","block_type":"box","text":"the extent permitted by applicable law), may be paid","page_number":175,"box":{"x":500,"y":527,"width":384,"height":12}},{"id":"6669b150-265e-47eb-9cd7-ffd4cd41f9c2","block_type":"box","text":"licensing fees for use of their index or index nam","page_number":175,"box":{"x":117,"y":543,"width":351,"height":12}},{"id":"ff3bd688-313a-40da-8e01-8b9ffd2e5aef","block_type":"box","text":"e. In instances where BlackRock charges a unitary","page_number":175,"box":{"x":469,"y":543,"width":373,"height":12}},{"id":"58e6f4c0-a763-4bde-8905-6549bdd2f1dc","block_type":"box","text":"management fee, BlackRock may have a financial incentiv","page_number":175,"box":{"x":117,"y":558,"width":424,"height":12}},{"id":"962e8d54-7633-41e1-8161-ed5f518c419f","block_type":"box","text":"e to use a BlackRock index that is less costly","page_number":175,"box":{"x":542,"y":558,"width":331,"height":12}},{"id":"c8063a18-7c04-40fb-8af1-615a20cf3128","block_type":"box","text":"to BlackRock than a third party index. BlackRock ma","page_number":175,"box":{"x":116,"y":574,"width":382,"height":12}},{"id":"2d1f7fc2-e899-4cd9-aa16-b35d0d8e6d28","block_type":"box","text":"y benefit from the Funds using BlackRock indices by","page_number":175,"box":{"x":498,"y":574,"width":386,"height":12}},{"id":"6426c42a-c657-4334-bb95-92f294956505","block_type":"box","text":"creating increasing acceptance in the marketplace for","page_number":175,"box":{"x":116,"y":589,"width":394,"height":12}},{"id":"ece6e726-e082-4444-b5bc-846ddf272a9c","block_type":"box","text":"such indices. BlackRock is not obligated to license","page_number":175,"box":{"x":510,"y":589,"width":371,"height":12}},{"id":"38224506-fbf6-4971-8750-a51c78584388","block_type":"box","text":"its indices to a Fund and the Funds are under no obli","page_number":175,"box":{"x":117,"y":605,"width":382,"height":9}},{"id":"93bcbfd0-3eb8-4d2f-be56-a15d9c819189","block_type":"box","text":"gation to use BlackRock indices. Any Fund that","page_number":175,"box":{"x":500,"y":605,"width":348,"height":12}},{"id":"2a1f3b95-9828-4ed8-9f73-a46108fc531a","block_type":"box","text":"enters into a license for a BlackRock index cannot be assured that the terms of any index licensing","page_number":175,"box":{"x":116,"y":620,"width":722,"height":12}},{"id":"3e9fad1a-ed57-43d1-a00e-3aabd9f2ce79","block_type":"box","text":"agreement with BlackRock will be as favorable as","page_number":175,"box":{"x":116,"y":636,"width":360,"height":12}},{"id":"658b9a3c-6c6a-4c27-ac66-69655f9bd6ce","block_type":"box","text":"those terms offered to other licensees.","page_number":175,"box":{"x":477,"y":636,"width":289,"height":9}},{"id":"f12082c6-6db2-40f9-be9b-2c2f37c3d1bf","block_type":"box","text":"BlackRock may enter into contractual arrangements wit","page_number":175,"box":{"x":117,"y":664,"width":401,"height":12}},{"id":"576fe0b1-82bb-4e2f-8330-577147d311b0","block_type":"box","text":"h third-party service providers to a Fund (e.g.,","page_number":175,"box":{"x":520,"y":664,"width":330,"height":12}},{"id":"8c9c2d4a-16af-4c71-8783-d9ea40106ed7","block_type":"box","text":"custodians, administrators and index providers) purs","page_number":175,"box":{"x":116,"y":679,"width":381,"height":12}},{"id":"ea781793-ad5a-4624-8290-d8a0a6f2f9e9","block_type":"box","text":"uant to which BlackRock receives fee discounts or","page_number":175,"box":{"x":498,"y":679,"width":365,"height":10}},{"id":"23e9ff6a-7608-47fb-8c13-a3546e3b5204","block_type":"box","text":"concessions in recognition of BlackRock’s overall relationship with such service providers. BlackRock","page_number":175,"box":{"x":116,"y":695,"width":736,"height":12}},{"id":"9b798ff6-b2a0-4696-9476-7ea3cfdd93fa","block_type":"box","text":"may also enter into contractual arrangements with su","page_number":175,"box":{"x":117,"y":710,"width":384,"height":12}},{"id":"cf8082b5-c0cf-4dba-96b4-73553749d2f3","block_type":"box","text":"ch service providers pursuant to which BlackRock","page_number":175,"box":{"x":503,"y":710,"width":361,"height":12}},{"id":"d2116189-1c9c-49ca-84d2-cd6e7e234625","block_type":"box","text":"incurs additional costs if the service provider’s","page_number":175,"box":{"x":117,"y":726,"width":332,"height":12}},{"id":"37a80122-a2e7-416f-9f6e-0d5e464efa66","block_type":"box","text":"services are terminated with respect to a Fund. To the","page_number":175,"box":{"x":455,"y":726,"width":392,"height":12}},{"id":"9d10575b-0110-42b9-997e-f470d68bc403","block_type":"box","text":"extent that BlackRock is responsible for paying service","page_number":175,"box":{"x":116,"y":741,"width":397,"height":12}},{"id":"4d2c0128-a276-4947-8951-4db4186d2504","block_type":"box","text":"providers out of its fees that it receives from the","page_number":175,"box":{"x":519,"y":741,"width":344,"height":12}},{"id":"707085c6-d547-45a1-8d5a-bef191ded1b8","block_type":"box","text":"Funds, the benefits of lower fees, including any fee di","page_number":175,"box":{"x":117,"y":757,"width":385,"height":12}},{"id":"a64dea0b-d9a3-4dc5-8b2a-ecd3c52dde79","block_type":"box","text":"scounts or concessions, or any additional savings,","page_number":175,"box":{"x":504,"y":757,"width":364,"height":12}},{"id":"664dc78b-a007-48bb-8c8e-c405257a169a","block_type":"box","text":"may accrue, in whole or in part, to BlackRock, which coul","page_number":175,"box":{"x":117,"y":772,"width":413,"height":12}},{"id":"748cce03-f1fc-414b-9da8-7ff5068e1a08","block_type":"box","text":"d result in conflicts of interest relating to the use","page_number":175,"box":{"x":531,"y":772,"width":346,"height":12}},{"id":"4867161a-47b7-4a07-a870-57d414682668","block_type":"box","text":"or termination of service providers to a Fund. In additi","page_number":175,"box":{"x":116,"y":788,"width":387,"height":12}},{"id":"7c320842-41fa-4438-84cb-9d0ebcecd474","block_type":"box","text":"on, conflicts of interest may arise with respect to","page_number":175,"box":{"x":505,"y":788,"width":349,"height":12}},{"id":"4edafb08-fd39-48b3-8c54-726d5cb5218b","block_type":"box","text":"contractual arrangements with third-party service provider","page_number":175,"box":{"x":116,"y":803,"width":420,"height":12}},{"id":"24c2e6ba-8379-4c7c-bfe4-dcd44656c716","block_type":"box","text":"s to a Fund, or the selection of such providers,","page_number":175,"box":{"x":536,"y":803,"width":336,"height":12}},{"id":"2b94d5c0-5724-44f1-a393-74571d328c7f","block_type":"box","text":"particularly in circumstances where BlackRock is","page_number":175,"box":{"x":117,"y":819,"width":353,"height":12}},{"id":"06c88386-e9ea-4107-893b-2207b05ead71","block_type":"box","text":"negotiating on behalf of both funds that have a unitary","page_number":175,"box":{"x":476,"y":819,"width":391,"height":12}},{"id":"9880ab81-6ab0-427c-978c-ec073624b468","block_type":"box","text":"management fee and those that do not","page_number":175,"box":{"x":117,"y":834,"width":287,"height":12}},{"id":"533dec13-e63d-4073-9e8d-252c3d45ab7e","block_type":"box","text":"or different service providers have different fee structures.","page_number":175,"box":{"x":404,"y":834,"width":425,"height":12}},{"id":"61545455-5f39-4d1c-893b-f2c4ffb14309","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client","page_number":175,"box":{"x":117,"y":862,"width":744,"height":12}},{"id":"46551eac-1f81-4041-80b7-f87fe363a4aa","block_type":"box","text":"accounts by BlackRock’s investment professionals. For example, differences in the advisory fee","page_number":175,"box":{"x":116,"y":878,"width":716,"height":12}},{"id":"0d7319e7-43e4-4ba4-8e93-b73ca67be6d8","block_type":"box","text":"II-125","page_number":175,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"04be7218-9916-4469-b9ba-5dad7722a418","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":175,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"045fb139-1bb6-412a-9bde-7bc2a610e038","block_type":"box","text":"structure may create the appearance of actual or potential conflicts of interest because such","page_number":176,"box":{"x":116,"y":87,"width":689,"height":12}},{"id":"08a158c8-f961-4235-a344-6a33330939f8","block_type":"box","text":"differences could create pecuniary incentives for BlackRock to favor one client account over another.","page_number":176,"box":{"x":116,"y":102,"width":754,"height":13}},{"id":"071e3f66-dec7-49c5-b739-b601a6f44f17","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/","page_number":176,"box":{"x":117,"y":134,"width":765,"height":12}},{"id":"b4a2718c-6a73-486e-aca8-996e6b442f3b","block_type":"box","text":"or information systems used by Fund service providers. These systems are, or will be, used by a Fund","page_number":176,"box":{"x":116,"y":149,"width":765,"height":12}},{"id":"a172aa1d-64da-4a70-9adc-a4e3e71b35f0","block_type":"box","text":"service provider in connection with the provision of services to accounts managed by BlackRock and","page_number":176,"box":{"x":116,"y":165,"width":752,"height":12}},{"id":"33d4de1d-b8e5-4f74-bc42-be6a9267ccdd","block_type":"box","text":"funds managed and sponsored by BlackRock, including the Funds, that engage the service provider","page_number":176,"box":{"x":116,"y":180,"width":748,"height":12}},{"id":"8fcf9c58-c625-451f-bf6a-308de5d7b89a","block_type":"box","text":"(typically the custodian). A Fund’s service provider remunerates BlackRock for the use of the systems.","page_number":176,"box":{"x":117,"y":196,"width":764,"height":12}},{"id":"1ec752c6-a7d4-4d99-9495-a8d168ca806a","block_type":"box","text":"A Fund service provider’s payments to BlackRock for the use of these systems may enhance the","page_number":176,"box":{"x":116,"y":211,"width":724,"height":12}},{"id":"ba84acce-57ff-41b2-a875-69915b6d2317","block_type":"box","text":"profitability of BlackRock.","page_number":176,"box":{"x":117,"y":227,"width":191,"height":12}},{"id":"e4a4e3cf-efec-4f8e-9ccc-a5fc580385d9","block_type":"box","text":"BlackRock’s receipt of fees from a service provider in connection with the use of systems provided by","page_number":176,"box":{"x":117,"y":258,"width":757,"height":12}},{"id":"b57b6e61-03c3-4638-bac4-0e1d51f61d1a","block_type":"box","text":"BlackRock may create an incentive for BlackRock to recommend that a Fund enter into or renew an","page_number":176,"box":{"x":117,"y":273,"width":745,"height":12}},{"id":"b17baaa2-244f-4a12-a41d-639f268ea6b3","block_type":"box","text":"arrangement with the service provider.","page_number":176,"box":{"x":116,"y":289,"width":291,"height":12}},{"id":"e75b4a1b-dc6b-43fc-8395-60af346dab96","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special","page_number":176,"box":{"x":117,"y":320,"width":762,"height":12}},{"id":"a8100f96-9495-4e28-b508-15028c30f98d","block_type":"box","text":"pricing arrangements for certain services provided by BlackRock. Any such special pricing","page_number":176,"box":{"x":117,"y":335,"width":673,"height":12}},{"id":"72a17d50-1e60-4877-a8a9-e9c29d570b13","block_type":"box","text":"arrangements will not affect Fund fees and expenses applicable to such client’s investment in a Fund.","page_number":176,"box":{"x":116,"y":351,"width":760,"height":12}},{"id":"3a676210-61ac-42a7-8094-8a2eb4d5faa9","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":176,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"5cddca1d-c531-46b5-876d-224907203518","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":176,"box":{"x":116,"y":397,"width":537,"height":12}},{"id":"29d471b6-a9ad-4a89-a464-bbdedbaa9106","block_type":"box","text":"P","page_number":176,"box":{"x":418,"y":444,"width":9,"height":9}},{"id":"cd296a7b-d4a8-4481-a5e3-156c5377ba40","block_type":"box","text":"URCHASE","page_number":176,"box":{"x":429,"y":446,"width":65,"height":7}},{"id":"d1c7eb42-1d3a-45a3-b7c5-f11484cfda2e","block_type":"box","text":"OF","page_number":176,"box":{"x":500,"y":446,"width":18,"height":7}},{"id":"271159e8-a64e-455e-96e6-58edb304bdd6","block_type":"box","text":"S","page_number":176,"box":{"x":519,"y":444,"width":15,"height":9}},{"id":"5ce6cc01-69dd-4d72-b6eb-ffadbad9b688","block_type":"box","text":"HARES","page_number":176,"box":{"x":536,"y":446,"width":46,"height":7}},{"id":"93cea54c-4499-4bd8-ad5a-10acff369b28","block_type":"box","text":"Most BlackRock-advised open-end funds offer multiple classes of shares under a plan adopted under","page_number":176,"box":{"x":117,"y":475,"width":756,"height":12}},{"id":"a678ae28-9210-4400-8398-0f06fce4a0f2","block_type":"box","text":"Rule 18f-3 under the Investment Company Act. Investor A Shares are sold to investors choosing the","page_number":176,"box":{"x":117,"y":490,"width":748,"height":12}},{"id":"1526ade7-6867-4d3f-a444-d432b5acff8d","block_type":"box","text":"initial sales charge alternative, except that Investor A Shares of Index Funds (defined below) and","page_number":176,"box":{"x":117,"y":506,"width":723,"height":12}},{"id":"7ae30f04-7032-4f5e-937d-e2a45078c11e","block_type":"box","text":"BlackRock Short Obligations Fund are generally not subject to an initial sales charge, and Investor C","page_number":176,"box":{"x":117,"y":521,"width":752,"height":12}},{"id":"356f82b0-5d9c-474d-993e-14827adad487","block_type":"box","text":"Shares are sold to investors choosing the deferred sales charge alternative. Investor P Shares are","page_number":176,"box":{"x":116,"y":537,"width":735,"height":12}},{"id":"2280ab2f-6f3c-496e-b0df-11da3dcdc5e7","block_type":"box","text":"available only to certain investors purchasing shares of Funds through registered representatives of an","page_number":176,"box":{"x":116,"y":552,"width":768,"height":12}},{"id":"b0b69b00-187f-4ad9-bbb6-0d1072732d2a","block_type":"box","text":"insurance company’s broker-dealer that has entered into an agreement with the Distributor to offer","page_number":176,"box":{"x":117,"y":568,"width":734,"height":12}},{"id":"af3ffdd7-810b-42d6-98c8-5f8f7ccd5848","block_type":"box","text":"such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":176,"box":{"x":116,"y":583,"width":692,"height":12}},{"id":"75ca267c-d4ab-463d-84b4-3c987721b622","block_type":"box","text":"Certain Funds offer Class R Shares, which are avail","page_number":176,"box":{"x":117,"y":614,"width":367,"height":11}},{"id":"197e6070-4da4-4145-b404-283a4fa0ae40","block_type":"box","text":"able only to certain employer-sponsored retirement","page_number":176,"box":{"x":485,"y":614,"width":368,"height":12}},{"id":"a77ed2df-1304-486a-9b44-cab1f005c8eb","block_type":"box","text":"plans and are sold without a sales charge. Certain Funds offer Class G Shares, which are available only to","page_number":176,"box":{"x":117,"y":630,"width":760,"height":12}},{"id":"a6c30abd-f670-44be-92c8-9578a6f0c793","block_type":"box","text":"investors on eligible platforms, which are platforms","page_number":176,"box":{"x":117,"y":645,"width":358,"height":12}},{"id":"febd2c2e-9f8c-4c4a-950f-131f2b4af778","block_type":"box","text":"where clients invest in the Fund through a single","page_number":176,"box":{"x":475,"y":645,"width":353,"height":12}},{"id":"500c4c65-a3e4-4865-a171-027fba1a07a8","block_type":"box","text":"omnibus account in the name of a financial intermedi","page_number":176,"box":{"x":116,"y":661,"width":374,"height":9}},{"id":"50de7634-acf6-4bb6-aee3-daec4ca53888","block_type":"box","text":"ary that meets an initial investment minimum of","page_number":176,"box":{"x":492,"y":661,"width":335,"height":12}},{"id":"f4dc80ac-3947-4fa2-a3a0-eb6a20fc37e7","block_type":"box","text":"$2 billion. In addition, certain Funds offer Service Share","page_number":176,"box":{"x":116,"y":675,"width":385,"height":12}},{"id":"ad596709-4fbe-4998-b952-e0801251c8e6","block_type":"box","text":"res, BlackRock Shares and/or Class K Shares that are","page_number":176,"box":{"x":501,"y":676,"width":382,"height":11}},{"id":"144da0c4-b734-4e0c-98d7-1803b104ef76","block_type":"box","text":"available only to certain eligible investors. Pl","page_number":176,"box":{"x":116,"y":692,"width":312,"height":12}},{"id":"6ff3fa0f-635b-43e1-ac64-6a408545afd0","block_type":"box","text":"ease see the appropriate Prospectus for your Fund to","page_number":176,"box":{"x":429,"y":692,"width":381,"height":12}},{"id":"9f6d7628-3b1b-4496-a73c-1cb9c2ab21fe","block_type":"box","text":"determine which classes are offered by your Fund and under","page_number":176,"box":{"x":116,"y":707,"width":434,"height":12}},{"id":"6de4ce0d-2125-4704-912d-d27360e20d3c","block_type":"box","text":"what circumstances. Each class has different","page_number":176,"box":{"x":553,"y":707,"width":322,"height":10}},{"id":"00fd09f9-1a3e-4351-9392-8e3cb49c92c3","block_type":"box","text":"exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":176,"box":{"x":116,"y":723,"width":516,"height":12}},{"id":"592ed18a-bd58-49f8-b290-65d29a485804","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after","page_number":176,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"869bfb8e-4219-413d-afbf-487e5b879fa6","block_type":"box","text":"receipt of the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has","page_number":176,"box":{"x":117,"y":769,"width":724,"height":12}},{"id":"169fceba-2953-4a5c-b5ee-cc4ff6a18e07","block_type":"box","text":"been authorized by the Distributor by contract to accept such orders. In addition, with respect to the","page_number":176,"box":{"x":117,"y":785,"width":737,"height":12}},{"id":"0e42d41e-8d94-462d-909b-cef2b5c49d71","block_type":"box","text":"affiliated underlying funds in which target date funds advised by BlackRock or its affiliates (“BlackRock","page_number":176,"box":{"x":116,"y":800,"width":759,"height":12}},{"id":"20fc41af-204e-4236-96b9-054b1b73f1d2","block_type":"box","text":"Target Date Funds”) invest, the applicable offering price of each affiliated underlying fund is based on","page_number":176,"box":{"x":116,"y":816,"width":752,"height":12}},{"id":"308969f2-f2da-428a-9464-c4ff7bb137f1","block_type":"box","text":"the NAV of such affiliated underlying fund next determined after a purchase order is received, or","page_number":176,"box":{"x":116,"y":831,"width":718,"height":12}},{"id":"abd78a6c-8546-439c-ac0b-3c46d5f70249","block_type":"box","text":"deemed to be received upon receipt by a Selling Dealer, by the BlackRock Target Date Funds that","page_number":176,"box":{"x":116,"y":847,"width":736,"height":12}},{"id":"ac358654-8d46-4fa4-98a3-74c4b0c288ce","block_type":"box","text":"allocate a portion of such purchase order to such affiliated underlying fund. As to purchase orders","page_number":176,"box":{"x":116,"y":862,"width":730,"height":12}},{"id":"2b5d5a6b-80bc-47cf-9a6c-6354033f6a7c","block_type":"box","text":"received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New","page_number":176,"box":{"x":117,"y":878,"width":765,"height":12}},{"id":"d6b8d470-f4ae-4b47-8151-9eb6822e1ec9","block_type":"box","text":"II-126","page_number":176,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"7e970dc1-7efc-4e34-b962-5e47df14a8a1","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":176,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"28db6f6c-0081-4e03-ba70-19dccc4a5099","block_type":"box","text":"York Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":177,"box":{"x":116,"y":87,"width":767,"height":12}},{"id":"1a0ff419-e322-471f-a99b-3dd236d53320","block_type":"box","text":"order is placed, including orders received after the close of business on the previous day, the","page_number":177,"box":{"x":116,"y":102,"width":696,"height":13}},{"id":"dae20b07-4494-43a4-a2e4-f707a906ba8d","block_type":"box","text":"applicable offering price is based on the NAV determined as of the close of business on the NYSE on","page_number":177,"box":{"x":116,"y":118,"width":757,"height":12}},{"id":"a88a9a48-78e0-4e05-8271-71cba37dd590","block_type":"box","text":"that day. If the purchase orders are not received by the Selling Dealer or a BlackRock Target Date","page_number":177,"box":{"x":116,"y":134,"width":734,"height":12}},{"id":"232cce40-0c48-426b-b7f3-a7ff7e239e48","block_type":"box","text":"Fund before the close of business on the NYSE, such orders are deemed received on the next","page_number":177,"box":{"x":117,"y":149,"width":706,"height":11}},{"id":"c7386146-1a12-48a7-a3a7-6999a4da2e48","block_type":"box","text":"business day. It is the responsibility of brokers to transmit purchase orders and payment on a timely","page_number":177,"box":{"x":117,"y":165,"width":745,"height":12}},{"id":"2818b5e9-3eae-4041-8c7f-18fcd30a5121","block_type":"box","text":"basis. Generally, if payment is not received within the period described in the Prospectuses, the order","page_number":177,"box":{"x":117,"y":180,"width":758,"height":12}},{"id":"8213e69c-180a-45a9-b4f1-8edeab7fd07f","block_type":"box","text":"will be canceled, notice thereof will be given, and","page_number":177,"box":{"x":116,"y":196,"width":368,"height":12}},{"id":"8dd49f39-009b-4d2b-b651-60d626b99332","block_type":"box","text":"the broker and its customers will be responsible for","page_number":177,"box":{"x":484,"y":196,"width":384,"height":11}},{"id":"4f8111d3-143e-48a4-bcb2-ccad71e8a09f","block_type":"box","text":"any loss to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the","page_number":177,"box":{"x":116,"y":210,"width":743,"height":13}},{"id":"052c66ca-b560-485f-97ae-95087dbc02ac","block_type":"box","text":"Transfer Agent.","page_number":177,"box":{"x":116,"y":227,"width":120,"height":12}},{"id":"cacf2fd6-7080-4965-aad4-4a25d97327bb","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund.","page_number":177,"box":{"x":116,"y":258,"width":766,"height":11}},{"id":"357a70c5-fa2b-4b9d-b05d-c0a74007dd65","block_type":"box","text":"The minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or","page_number":177,"box":{"x":116,"y":273,"width":758,"height":12}},{"id":"b34c225d-1878-476f-b339-e542d78b7d29","block_type":"box","text":"employees of their affiliates is $100, unless payment is made through a payroll deduction program in","page_number":177,"box":{"x":116,"y":288,"width":751,"height":13}},{"id":"c042cb26-bcfc-4a2e-a7b3-5bb32336af54","block_type":"box","text":"which case the minimum investment is $25.","page_number":177,"box":{"x":116,"y":303,"width":329,"height":12}},{"id":"b9977228-2824-4baf-a329-b4d9bd50485b","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase","page_number":177,"box":{"x":117,"y":335,"width":749,"height":12}},{"id":"fc656786-d7d4-45a2-8127-d2ed8c9fc51e","block_type":"box","text":"Institutional Shares, including selected fee-based programs. Each Fund may permit a lower initial","page_number":177,"box":{"x":117,"y":351,"width":726,"height":12}},{"id":"c344bbe0-caa8-4b1f-aca5-aba3681b2f0a","block_type":"box","text":"investment for certain investors if their purchase, combined with purchases by other investors received","page_number":177,"box":{"x":117,"y":366,"width":766,"height":12}},{"id":"cd705ba0-cbca-4f9e-98ef-82fce1c92386","block_type":"box","text":"together by the Fund, meets the minimum investment requirement. Each Fund may reject any","page_number":177,"box":{"x":116,"y":382,"width":702,"height":12}},{"id":"41d93951-8621-4cf5-a163-772f6f5be9c3","block_type":"box","text":"purchase order, modify or waive the minimum initial or subsequent investment requirements and","page_number":177,"box":{"x":117,"y":397,"width":720,"height":12}},{"id":"73db9817-7182-4317-9524-9c125891728e","block_type":"box","text":"suspend and resume the sale of any share class of any Fund at any time.","page_number":177,"box":{"x":116,"y":413,"width":551,"height":12}},{"id":"7cc5794d-7cbf-4e50-b645-73828baaa39d","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance","page_number":177,"box":{"x":117,"y":444,"width":758,"height":12}},{"id":"2d583ec7-894d-4ad7-adad-79d0dd854658","block_type":"box","text":"with a financial intermediary’s policies and procedures, exchange shares of a Fund from one class of","page_number":177,"box":{"x":116,"y":459,"width":753,"height":12}},{"id":"1c206d75-97f8-4ca7-bbf6-e023246d78e2","block_type":"box","text":"shares to another class of shares of the same Fund, provided that the exchanged shares are not","page_number":177,"box":{"x":116,"y":475,"width":722,"height":12}},{"id":"77d5ea12-9b92-44d0-bc0d-2364d3224aab","block_type":"box","text":"subject to a contingent deferred sales charge (“CDSC”) and that shareholders meet eligibility","page_number":177,"box":{"x":116,"y":490,"width":693,"height":12}},{"id":"a8b7fbe3-c8d8-4e80-9174-ad76f77f2559","block_type":"box","text":"requirements of the new share class. Please speak to your financial intermediary for information about","page_number":177,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"b9cbd93e-3d24-48bb-9168-b6115723f7a2","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":177,"box":{"x":116,"y":521,"width":448,"height":12}},{"id":"e71c910c-ea2a-4dc6-8af2-a6e2af90ac1b","block_type":"box","text":"Each Fund or the Distributor may suspend the continuous offering of the Fund’s shares of any class at","page_number":177,"box":{"x":117,"y":552,"width":763,"height":12}},{"id":"1718c2ed-6b17-48b5-853a-e8e142bce46b","block_type":"box","text":"any time in response to conditions in the securities markets or otherwise and may resume offering the","page_number":177,"box":{"x":116,"y":568,"width":761,"height":12}},{"id":"65189354-8c49-4565-a8e9-a1057e101f11","block_type":"box","text":"shares from time to time. Any order may be rejected by a Fund or the Distributor. Neither the","page_number":177,"box":{"x":116,"y":583,"width":693,"height":12}},{"id":"0a5724d6-b214-42f2-8345-3f3fd0560d0b","block_type":"box","text":"Distributor, the securities dealers nor other financial intermediaries are permitted to withhold placing","page_number":177,"box":{"x":117,"y":599,"width":744,"height":12}},{"id":"d0360047-3c66-475d-9a49-760259673ce2","block_type":"box","text":"orders to benefit themselves by a price change.","page_number":177,"box":{"x":116,"y":614,"width":358,"height":12}},{"id":"8a5c8e4e-8514-4046-b2f4-0bac89a22768","block_type":"box","text":"The term “purchase,” as used in the Prospectus and this SAI, refers to (i) a single purchase by an","page_number":177,"box":{"x":116,"y":645,"width":729,"height":12}},{"id":"99bbb98a-b3f3-42a4-a325-9ca82faed2d1","block_type":"box","text":"individual, (ii) concurrent purchases by an individual, his or her spouse and their children purchasing","page_number":177,"box":{"x":117,"y":661,"width":742,"height":12}},{"id":"9e4aca67-2a8c-40b4-9b02-2e57c76d7ce4","block_type":"box","text":"shares for his, her or their own account, and (iii) single purchases by a trustee or other fiduciary","page_number":177,"box":{"x":116,"y":676,"width":709,"height":12}},{"id":"16c1a401-cda8-416c-b2d6-652de81a4535","block_type":"box","text":"purchasing shares for a single trust estate or single fiduciary account although more than one","page_number":177,"box":{"x":117,"y":692,"width":693,"height":12}},{"id":"3f40fde9-f3ef-4a39-aa0e-56df415ca466","block_type":"box","text":"beneficiary may be involved. The term “purchase” also includes purchases by any “company,” as that","page_number":177,"box":{"x":117,"y":707,"width":751,"height":12}},{"id":"19f28505-beed-43b7-9eb6-92fc5c97a55a","block_type":"box","text":"term is defined in the Investment Company Act, but does not include purchases by (i) any company","page_number":177,"box":{"x":116,"y":723,"width":738,"height":12}},{"id":"6f132423-b5e7-44c5-a4ed-c6c216d9b673","block_type":"box","text":"that has not been in existence for at least six months, (ii) a company that has no purpose other than","page_number":177,"box":{"x":116,"y":738,"width":740,"height":12}},{"id":"566cb538-c1b7-4efd-b56b-d2fc3b1e406f","block_type":"box","text":"the purchase of shares of a Fund or shares of other registered investment companies at a discount, or","page_number":177,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"5d7b6aec-f065-4e0a-ba3c-aea660c8ec79","block_type":"box","text":"(iii) any group of individuals whose sole organizational nexus is that its participants are credit","page_number":177,"box":{"x":117,"y":769,"width":687,"height":12}},{"id":"f4e31f78-ed4f-4177-ada4-c4365abd0980","block_type":"box","text":"cardholders of a company, policyholders of an insurance company, customers of either a bank or","page_number":177,"box":{"x":116,"y":785,"width":721,"height":12}},{"id":"376a063d-30c9-4564-9145-dd8017262727","block_type":"box","text":"broker-dealer or clients of an investment adviser.","page_number":177,"box":{"x":117,"y":800,"width":361,"height":10}},{"id":"ed460443-44b3-4712-91fb-b922bdb6254e","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the","page_number":177,"box":{"x":116,"y":831,"width":725,"height":12}},{"id":"2c779295-a559-43bf-9d6c-966d5e6c9dde","block_type":"box","text":"United States and may not be distributed by a foreign financial intermediary. Under this policy, in order","page_number":177,"box":{"x":117,"y":847,"width":764,"height":12}},{"id":"8e1b19c3-8be0-4847-a5a3-c59e6f4b7f9d","block_type":"box","text":"to accept new accounts or additional investments (including by way of exchange from another Fund)","page_number":177,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"8ff213ee-2be3-4a07-96be-20af5a9ccae0","block_type":"box","text":"into existing accounts, a Fund generally requires that (i) a shareholder that is a natural person be a","page_number":177,"box":{"x":117,"y":878,"width":738,"height":12}},{"id":"96cbd4e2-ce3f-4376-ad60-1d445d9566d0","block_type":"box","text":"II-127","page_number":177,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"bd1807a9-4c38-4e65-985f-0605e6ab0a0b","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":177,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"8919d4e4-2228-4ff8-a45f-dcdab934c3a3","block_type":"box","text":"U.S. citizen or resident alien, in each case residing within the United States or a U.S. territory","page_number":178,"box":{"x":117,"y":87,"width":695,"height":12}},{"id":"a242f7da-1d2c-4fc3-a6f6-354b7b74083d","block_type":"box","text":"(including APO/FPO/DPO addresses), and have a valid U.S. taxpayer identification number, and (ii) a","page_number":178,"box":{"x":117,"y":102,"width":757,"height":13}},{"id":"a77b87c7-a717-4da8-af29-a7a1d4053c8f","block_type":"box","text":"financial intermediary or a shareholder that is an entity be domiciled in the United States and have a","page_number":178,"box":{"x":116,"y":118,"width":747,"height":12}},{"id":"c44e2532-73e8-47c9-a017-59ea2a59c64d","block_type":"box","text":"valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":178,"box":{"x":116,"y":134,"width":720,"height":12}},{"id":"2d2b1e87-659c-414d-b743-ec81e80512f6","block_type":"box","text":"taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a","page_number":178,"box":{"x":116,"y":149,"width":723,"height":12}},{"id":"a2aa7a15-d9db-4f73-9248-09368df8f25f","block_type":"box","text":"non-U.S. address will also be restricted from making additional investments.","page_number":178,"box":{"x":117,"y":165,"width":568,"height":12}},{"id":"1ec7dd75-f28f-4f81-a340-d54911b80144","block_type":"box","text":"In-Kind Purchases.","page_number":178,"box":{"x":117,"y":197,"width":139,"height":9}},{"id":"718dda5a-739f-48e1-929d-2928eb7bb812","block_type":"box","text":"Payment for shares of a Fund may, at the discretion of BlackRock, be made in the","page_number":178,"box":{"x":258,"y":197,"width":620,"height":12}},{"id":"dc7d7d92-5f68-4eb3-b0d7-0f0de0384752","block_type":"box","text":"form of securities that are permissible investments for the Fund and that meet the investment objective,","page_number":178,"box":{"x":116,"y":212,"width":772,"height":12}},{"id":"4f045720-1409-4964-b5d2-79d1fd46f09f","block_type":"box","text":"policies and limitations of the Fund as described herein. In connection with an in-kind securities","page_number":178,"box":{"x":117,"y":228,"width":710,"height":12}},{"id":"4a28e41a-542e-4e5b-8b10-1f0f0c1d9172","block_type":"box","text":"payment, the Fund may require, among other things, that the securities: (i) be valued on the day of","page_number":178,"box":{"x":117,"y":243,"width":736,"height":12}},{"id":"a2fb4415-b092-4835-90ff-67c690339559","block_type":"box","text":"purchase in accordance with the pricing methods used by the Fund; (ii) be accompanied by","page_number":178,"box":{"x":117,"y":259,"width":682,"height":12}},{"id":"f1ef0160-c1d6-476e-9e4d-1e82371d364c","block_type":"box","text":"satisfactory assurance that the Fund will have good and marketable title to such securities; (iii) not be","page_number":178,"box":{"x":116,"y":274,"width":757,"height":13}},{"id":"90fbfc7d-1a6d-492a-86bc-296d0b397608","block_type":"box","text":"subject to any restrictions upon resale by the Fund; (iv) be in proper form for transfer to the Fund; and","page_number":178,"box":{"x":116,"y":290,"width":760,"height":12}},{"id":"763de84b-d3c7-4246-8f0e-b4d746874900","block_type":"box","text":"(v) be accompanied by adequate information concerning the basis and other tax matters relating to the","page_number":178,"box":{"x":117,"y":305,"width":766,"height":13}},{"id":"a1c23a62-734c-49f8-ac33-d3c750a4ff1f","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become","page_number":178,"box":{"x":116,"y":321,"width":769,"height":12}},{"id":"6a4f3c12-eb5c-484e-80cc-7a570ed91fc2","block_type":"box","text":"the property of the Fund engaged in the in-kind purchase transaction and must be delivered to the","page_number":178,"box":{"x":116,"y":336,"width":732,"height":13}},{"id":"4ea95e22-4a11-4579-9338-8ac87666587d","block_type":"box","text":"Fund by the investor upon receipt from the issuer. Shares purchased in exchange for securities","page_number":178,"box":{"x":117,"y":352,"width":711,"height":12}},{"id":"d9e681e2-04a1-4395-8600-a003851a1609","block_type":"box","text":"generally cannot be redeemed until the transfer has settled.","page_number":178,"box":{"x":116,"y":367,"width":448,"height":13}},{"id":"fc2d05e1-4627-42e8-b5d9-373fb87a651f","block_type":"box","text":"Institutional Shares","page_number":178,"box":{"x":117,"y":400,"width":160,"height":9}},{"id":"c159726a-78ab-4980-80b4-f17540135277","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are","page_number":178,"box":{"x":117,"y":424,"width":720,"height":12}},{"id":"d0b85753-fd15-411c-b77d-21a6bc37298d","block_type":"box","text":"eligible to purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares","page_number":178,"box":{"x":116,"y":439,"width":737,"height":12}},{"id":"c894b787-37bd-42fe-9dd8-23a04bb48d35","block_type":"box","text":"should purchase Institutional Shares because they are not subject to any sales charge and have lower","page_number":178,"box":{"x":116,"y":455,"width":765,"height":12}},{"id":"924edf8b-bcb5-463f-a346-542d61f1caf2","block_type":"box","text":"ongoing expenses than Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A","page_number":178,"box":{"x":116,"y":470,"width":752,"height":12}},{"id":"1a6f4ffe-d570-4164-b969-893b41a6eef5","block_type":"box","text":"Fund may in its discretion waive or modify any minimum investment amount, may reject any order for","page_number":178,"box":{"x":117,"y":486,"width":755,"height":12}},{"id":"6aeefa94-46e6-499c-9dde-02c36c38273e","block_type":"box","text":"any class of shares and may suspend and resume the sale of shares of any Fund at any time.","page_number":178,"box":{"x":116,"y":501,"width":703,"height":12}},{"id":"802b7572-4c31-48aa-a76c-9c12ff138365","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":178,"box":{"x":116,"y":534,"width":269,"height":12}},{"id":"e5d8226f-f814-4a96-8a6a-6733c917069c","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers","page_number":178,"box":{"x":387,"y":534,"width":499,"height":12}},{"id":"41c76eae-e6d3-4c0c-bf1c-0b41c9f98bc1","block_type":"box","text":"of broker-dealers and agents that have established a servicing relationship with the Fund on behalf of","page_number":178,"box":{"x":116,"y":549,"width":757,"height":12}},{"id":"ac7f5541-89df-4c28-b44e-0b1d9c8c3c1a","block_type":"box","text":"their customers. These broker-dealers and agents may impose additional or different conditions on the","page_number":178,"box":{"x":116,"y":565,"width":766,"height":12}},{"id":"a60bb6fe-1797-413d-8af9-eb2463d71679","block_type":"box","text":"purchase or redemption of Fund shares by their customers and may charge their customers","page_number":178,"box":{"x":117,"y":580,"width":686,"height":12}},{"id":"25450e05-7dba-4efb-a143-d1cc0f5e46a8","block_type":"box","text":"transaction, account or other fees on the purchase and redemption of Fund shares. Each broker-dealer","page_number":178,"box":{"x":116,"y":596,"width":771,"height":12}},{"id":"b93e9277-eb73-4678-87e9-5c39389bd504","block_type":"box","text":"or agent is responsible for transmitting to its customers a schedule of any such fees and information","page_number":178,"box":{"x":116,"y":611,"width":747,"height":12}},{"id":"d0fbcdfd-6143-4f6c-94c7-54277687c012","block_type":"box","text":"regarding any additional or different conditions regarding purchases and redemptions. Shareholders","page_number":178,"box":{"x":117,"y":627,"width":746,"height":12}},{"id":"e47436d0-3249-4e20-b00a-9be03f5c57ff","block_type":"box","text":"who are customers of such broker-dealers or agents should consult them for information regarding","page_number":178,"box":{"x":116,"y":642,"width":736,"height":12}},{"id":"4068c4ac-7abe-48ca-9498-a5985cf7ee44","block_type":"box","text":"these fees and conditions.","page_number":178,"box":{"x":116,"y":658,"width":200,"height":9}},{"id":"2ba41588-61ab-470f-80cd-c39400911871","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately","page_number":178,"box":{"x":117,"y":690,"width":745,"height":12}},{"id":"c45c9661-dc22-4b6e-b849-b917ca207d23","block_type":"box","text":"available by 4 p.m. (Eastern time) on the first business day following receipt of the order. Payment may","page_number":178,"box":{"x":116,"y":705,"width":765,"height":13}},{"id":"48ac7de1-c9d8-40b1-95eb-a83880682e43","block_type":"box","text":"also, in the discretion of certain Funds, be made in the form of securities that are permissible","page_number":178,"box":{"x":116,"y":721,"width":688,"height":12}},{"id":"17689f02-a53a-4e9c-91b2-ab7b9db0636c","block_type":"box","text":"investments for such Funds. If payment for a purchase order is not received by the prescribed time, an","page_number":178,"box":{"x":117,"y":736,"width":760,"height":13}},{"id":"bfe93220-f984-4820-b328-859c75ba2623","block_type":"box","text":"investor may be liable for any resulting losses or expenses incurred by the Fund.","page_number":178,"box":{"x":117,"y":752,"width":597,"height":12}},{"id":"94fc8a40-8ffa-4c17-ac06-356383cccbc1","block_type":"box","text":"Certain of the Funds offer Institutional Shares","page_number":178,"box":{"x":117,"y":784,"width":345,"height":10}},{"id":"b3299b5a-510f-4661-b26c-3eb8696a1e75","block_type":"box","text":"as described in each such Fund’s Prospectus. 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trust","page_number":179,"box":{"x":521,"y":350,"width":355,"height":12}},{"id":"5156a10a-587a-441e-a744-82191945b854","block_type":"box","text":"department clients of Bank of Amer","page_number":179,"box":{"x":116,"y":366,"width":269,"height":12}},{"id":"72558dea-548b-4974-b12a-e8f5e410c67a","block_type":"box","text":"ica, N.A. and its affiliates for whom they (i) act in a fiduciary","page_number":179,"box":{"x":386,"y":366,"width":455,"height":12}},{"id":"2491025a-9091-46e7-a25d-ed5c96450d06","block_type":"box","text":"capacity (excluding participant directed employee","page_number":179,"box":{"x":116,"y":382,"width":380,"height":12}},{"id":"8346dde8-b67d-4603-9812-695a61d52e2a","block_type":"box","text":"benefit plans), (ii) otherwise have investment","page_number":179,"box":{"x":497,"y":382,"width":345,"height":12}},{"id":"ca870588-6b96-4234-ab26-c126455336e7","block_type":"box","text":"discretion, or (iii) act as custodian for at least","page_number":179,"box":{"x":116,"y":397,"width":346,"height":12}},{"id":"2e025ae8-b0c7-47a3-9de0-f1c55790f387","block_type":"box","text":"$2 million in assets; and holders of certain BofA Corp.","page_number":179,"box":{"x":463,"y":396,"width":414,"height":13}},{"id":"5e474c23-2cf7-4ebf-b50a-f0dc03aaaa3e","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest","page_number":179,"box":{"x":116,"y":413,"width":401,"height":12}},{"id":"beedf591-5136-4df3-b63a-41cfbcfa462d","block_type":"box","text":"dividends received from such UITs in shares of","page_number":179,"box":{"x":518,"y":413,"width":367,"height":9}},{"id":"a7eebf16-01e1-49f9-a89c-0c53d9b8dd54","block_type":"box","text":"a Fund.","page_number":179,"box":{"x":116,"y":428,"width":63,"height":10}},{"id":"4a59201f-5418-4f2a-9991-80af2df3ce87","block_type":"box","text":"Purchase Privileges of Certain Persons.","page_number":179,"box":{"x":116,"y":457,"width":295,"height":12}},{"id":"6177e07f-3298-4672-88e6-08df3b6166b9","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc.,","page_number":179,"box":{"x":413,"y":457,"width":439,"height":12}},{"id":"4b13dc50-be78-43ed-a9d5-e1490cef5d73","block_type":"box","text":"BlackRock Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or","page_number":179,"box":{"x":117,"y":472,"width":733,"height":12}},{"id":"50cd7223-e3b5-46b9-9672-24b38eac8ea8","block_type":"box","text":"other benefit plan for such persons may purchase Institutional Shares at lower investment minimums","page_number":179,"box":{"x":116,"y":488,"width":753,"height":12}},{"id":"2b5e6bad-5c20-490c-b90d-ff6427ad93d5","block_type":"box","text":"than stated in each Fund’s Prospectus. A Fund realizes economies of scale and reduction of sales","page_number":179,"box":{"x":116,"y":503,"width":735,"height":12}},{"id":"6ae145d1-6cba-4b14-aaa4-400eb257a1fc","block_type":"box","text":"related expenses by virtue of the familiarity of these persons with the Fund. Employees, directors, and","page_number":179,"box":{"x":117,"y":519,"width":761,"height":12}},{"id":"cf24ab74-016d-4254-a276-71fb39cec5c2","block_type":"box","text":"board members of other funds wishing to purchase shares of a Fund must satisfy the Fund’s suitability","page_number":179,"box":{"x":117,"y":534,"width":764,"height":12}},{"id":"2bb06748-4ffd-40a3-846f-ebb4e19b851c","block_type":"box","text":"standards.","page_number":179,"box":{"x":116,"y":550,"width":83,"height":9}},{"id":"c89e99d9-ee2d-4b63-abc7-6813e2932389","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":179,"box":{"x":117,"y":579,"width":420,"height":12}},{"id":"52d1999e-39ce-4886-aac8-3a697ef69c11","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares.","page_number":179,"box":{"x":117,"y":601,"width":717,"height":12}},{"id":"d1dddbd7-10d5-4526-90f0-36ac54f49860","block_type":"box","text":"Investor A1 Shares are offered only (i) for purchase by certain employer-sponsored retirement plans","page_number":179,"box":{"x":117,"y":616,"width":748,"height":12}},{"id":"50ec29d1-8a9e-41ed-97b5-98c1c62c3484","block_type":"box","text":"and fee-based programs that have been previously approved by certain Funds, and (ii) to certain","page_number":179,"box":{"x":116,"y":632,"width":723,"height":12}},{"id":"824a69a3-b1f2-4fe6-a064-d6b0c42fb6b2","block_type":"box","text":"investors who currently hold Investor A1 Shares for dividend and capital gain reinvestment only. The","page_number":179,"box":{"x":117,"y":647,"width":749,"height":12}},{"id":"0f2366bb-31b5-4d06-84b7-263eaa6bd3e1","block_type":"box","text":"Investor A1 initial sales charge does not apply to the transactions described in (i) and (ii). For ease of","page_number":179,"box":{"x":117,"y":663,"width":750,"height":12}},{"id":"1286f633-ffe0-47d7-aa1a-0599ec4be550","block_type":"box","text":"reference, Investor A, Investor A1 and Investor P (discussed below) Shares are sometimes referred to","page_number":179,"box":{"x":117,"y":678,"width":757,"height":12}},{"id":"5911ed05-6283-4d20-ad6c-f70bfe8d7cc9","block_type":"box","text":"herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and BlackRock","page_number":179,"box":{"x":117,"y":694,"width":739,"height":12}},{"id":"57439e8a-7ded-4bdb-b8c7-61d3a3f5b01a","block_type":"box","text":"Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":179,"box":{"x":116,"y":709,"width":677,"height":12}},{"id":"157d0d9e-23d0-489a-b0c7-a40afdd647fc","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge","page_number":179,"box":{"x":117,"y":738,"width":715,"height":12}},{"id":"12a47823-3b03-47c1-b484-8339da598b3d","block_type":"box","text":"alternative particularly attractive because similar sales charge reductions are not available with respect","page_number":179,"box":{"x":116,"y":754,"width":763,"height":12}},{"id":"24126fd3-53d1-40f0-8ac8-3bd8a3f2ed3b","block_type":"box","text":"to the deferred sales charges imposed in connection with investments in Investor C Shares","page_number":179,"box":{"x":116,"y":769,"width":676,"height":12}},{"id":"a44f3906-ce28-4ab1-a645-0a3669fc0ca1","block_type":"box","text":"(sometimes referred to herein as “CDSC shares”). Investors who do not qualify for reduced initial sales","page_number":179,"box":{"x":117,"y":784,"width":761,"height":13}},{"id":"a86413ec-5fa4-4a56-a9d2-284756f6806e","block_type":"box","text":"charges and who expect to maintain their investment for an extended period of time also may elect to","page_number":179,"box":{"x":116,"y":800,"width":752,"height":12}},{"id":"8a58d0ac-a98e-4515-9055-71ce3a1e9ba4","block_type":"box","text":"purchase Investor A Shares, because over time the accumulated ongoing service and distribution fees","page_number":179,"box":{"x":117,"y":815,"width":759,"height":13}},{"id":"728828bf-51b4-4686-b746-ef7bcd1d9684","block_type":"box","text":"on CDSC shares may exceed the front-end load shares’ initial sales charge and service fee. Although","page_number":179,"box":{"x":116,"y":831,"width":759,"height":12}},{"id":"70346190-dc67-411a-baa7-64ccdbe4b712","block_type":"box","text":"some investors who previously purchased Institutional Shares may no longer be eligible to purchase","page_number":179,"box":{"x":116,"y":846,"width":749,"height":13}},{"id":"ba86e35d-1cb0-49a1-8a36-4735048055f2","block_type":"box","text":"Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":179,"box":{"x":117,"y":862,"width":749,"height":12}},{"id":"c7073004-dfb0-41e7-bc8d-422623dc02dd","block_type":"box","text":"BlackRock front-end load and CDSC share holdings, will count toward a right of accumulation that may","page_number":179,"box":{"x":117,"y":877,"width":768,"height":13}},{"id":"0cb0ee9b-5386-4343-9b30-9c05baf08ac9","block_type":"box","text":"II-129","page_number":179,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"a50a0e00-e308-48cd-a89b-d154c9e51c23","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":179,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"7fc6e633-9ebd-47af-afa1-ee71f87f254b","block_type":"box","text":"qualify the investor for a reduced initial sales charge on new initial sales charge purchases. In addition,","page_number":180,"box":{"x":116,"y":87,"width":768,"height":12}},{"id":"e50ed6ee-1884-4341-b56d-c209964337fc","block_type":"box","text":"the ongoing CDSC shares service and distribution fees will cause CDSC shares to have higher","page_number":180,"box":{"x":116,"y":102,"width":709,"height":13}},{"id":"be2d86dc-ba20-4a0e-84ff-1434efc98fc4","block_type":"box","text":"expense ratios, pay lower dividends and have lower total returns than the initial sales charge shares.","page_number":180,"box":{"x":116,"y":118,"width":752,"height":12}},{"id":"d8c6412e-e981-491e-99af-b4b562282e1f","block_type":"box","text":"The ongoing front-end load shares’ service fees will cause Investor A, Investor A1, Investor P and","page_number":180,"box":{"x":116,"y":134,"width":731,"height":12}},{"id":"44bda323-330d-41e5-ae32-7614d67910ec","block_type":"box","text":"Service Shares to have a higher expense ratio, pay lower dividends and have a lower total return than","page_number":180,"box":{"x":116,"y":149,"width":762,"height":12}},{"id":"72672ca0-5dc9-48c7-841f-ccbc9aa71398","block_type":"box","text":"Institutional Shares.","page_number":180,"box":{"x":117,"y":165,"width":151,"height":9}},{"id":"a0ef6b7b-b89b-43ba-93b5-9f7ebb8f6ded","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":180,"box":{"x":116,"y":196,"width":770,"height":12}},{"id":"03927a3a-9f0f-449c-b861-c9a568fb818c","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares","page_number":180,"box":{"x":117,"y":211,"width":767,"height":12}},{"id":"9a9f49e6-b967-427b-8b33-f898cddbb714","block_type":"box","text":"for the periods indicated.","page_number":180,"box":{"x":116,"y":227,"width":189,"height":11}},{"id":"ff680ea4-7800-460d-a4ed-efbbfcc2408c","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries","page_number":180,"box":{"x":116,"y":258,"width":759,"height":12}},{"id":"f9272cb7-2039-4bf6-b90c-445218fb6220","block_type":"box","text":"and retain the balance over such discounts. At times the Distributor may reallow the entire sales","page_number":180,"box":{"x":116,"y":273,"width":717,"height":12}},{"id":"ed41f986-f5f8-48bc-9622-d6462a639e50","block_type":"box","text":"charge to such dealers. Since securities dealers and other financial intermediaries selling front-end","page_number":180,"box":{"x":116,"y":289,"width":739,"height":12}},{"id":"7a1fecf7-8c62-4a12-8aaa-6b8a2f582517","block_type":"box","text":"load shares of a Fund will receive a concession equal to most of the sales charge, they may be","page_number":180,"box":{"x":117,"y":304,"width":710,"height":12}},{"id":"8b6b2727-e3fb-4eb3-9bef-5db37ef79ec9","block_type":"box","text":"deemed to be underwriters under the Securities Act.","page_number":180,"box":{"x":116,"y":320,"width":393,"height":9}},{"id":"e72afd4d-3ee3-43e8-b1c5-b6ca8926499e","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":180,"box":{"x":117,"y":351,"width":327,"height":12}},{"id":"4198a185-f754-43dd-a44b-a2046f9644c0","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P","page_number":180,"box":{"x":117,"y":374,"width":715,"height":12}},{"id":"dabab251-43b5-411b-ac85-9d8ce094defe","block_type":"box","text":"Shares are available for purchase only through registered representatives of an insurance company’s","page_number":180,"box":{"x":116,"y":389,"width":758,"height":12}},{"id":"258b57bf-fb1d-432f-a0c7-34e86fc56858","block_type":"box","text":"broker-dealer that has entered into an agreement with the Distributor to offer such shares and are","page_number":180,"box":{"x":117,"y":405,"width":729,"height":12}},{"id":"9d2d9f14-bf6a-4754-89d4-20d35c5319c1","block_type":"box","text":"subject to an initial sales charge. The ongoing front-end load shares’ service fees will cause Investor P","page_number":180,"box":{"x":116,"y":420,"width":766,"height":12}},{"id":"6f9ce258-615e-4250-bb0a-b501079bfa9f","block_type":"box","text":"Shares to have a higher expense ratio, pay lower dividends and have a lower total return than Investor","page_number":180,"box":{"x":116,"y":436,"width":766,"height":12}},{"id":"3512a741-5acc-4e6f-80fc-17267c1d9ff2","block_type":"box","text":"A Shares of the same Fund.","page_number":180,"box":{"x":116,"y":451,"width":214,"height":10}},{"id":"9927637d-6956-48fb-8402-b406c3e5c48c","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":180,"box":{"x":116,"y":482,"width":770,"height":12}},{"id":"da56b2ac-70b6-409d-ac8b-169da78c3f2b","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods","page_number":180,"box":{"x":117,"y":498,"width":757,"height":12}},{"id":"4c53c99e-999f-4e46-bac1-531faef01d3c","block_type":"box","text":"indicated.","page_number":180,"box":{"x":117,"y":514,"width":75,"height":9}},{"id":"52fea06e-af21-4ebc-8894-e5e2bd5b4c0c","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries","page_number":180,"box":{"x":116,"y":544,"width":759,"height":12}},{"id":"710d906b-0387-4c9c-afea-dfa213162b9a","block_type":"box","text":"and retain the balance over such discounts. At times the Distributor may reallow the entire sales","page_number":180,"box":{"x":116,"y":560,"width":717,"height":12}},{"id":"070b907d-1fd2-483b-9cd7-5723e88e0659","block_type":"box","text":"charge to such dealers. Since securities dealers and other financial intermediaries selling front-end","page_number":180,"box":{"x":116,"y":575,"width":739,"height":12}},{"id":"959d5d60-9ef6-44ee-b0d1-4bf5c7ec2fd4","block_type":"box","text":"load shares of a Fund will receive a concession equal to most of the sales charge, they may be","page_number":180,"box":{"x":117,"y":591,"width":710,"height":12}},{"id":"fc62ee5b-04b1-4db8-b5e7-8364dc2c638f","block_type":"box","text":"deemed to be underwriters under the Securities Act.","page_number":180,"box":{"x":116,"y":606,"width":393,"height":10}},{"id":"575fcda3-8951-47f9-a963-bd50f5d08013","block_type":"box","text":"Reduced Initial Sales Charges","page_number":180,"box":{"x":117,"y":637,"width":244,"height":12}},{"id":"372923ee-2058-404e-a8fe-43aaefe2ea60","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the","page_number":180,"box":{"x":117,"y":661,"width":737,"height":12}},{"id":"4b873a39-b49b-4320-8e25-3f8900eef0c3","block_type":"box","text":"investors and/or the reduced sales efforts necessary to obtain their investments. Financial","page_number":180,"box":{"x":117,"y":676,"width":666,"height":12}},{"id":"1326b587-d4d6-4dca-8801-2b03bfebe5e6","block_type":"box","text":"intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":180,"box":{"x":117,"y":692,"width":730,"height":12}},{"id":"6f7944df-dfa5-44d0-ab82-ba6f9a75925d","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares","page_number":180,"box":{"x":116,"y":707,"width":754,"height":12}},{"id":"223ce6eb-d3ff-48bb-8c7b-00c490598a7b","block_type":"box","text":"to another class of shares of the same Fund provided that the exchanged shares are not subject to a","page_number":180,"box":{"x":116,"y":723,"width":748,"height":12}},{"id":"1fc2d18b-f462-4c31-a0fd-a7a7b5bb79ca","block_type":"box","text":"contingent deferred sales charge and that shareholders meet the eligibility requirements of the new","page_number":180,"box":{"x":116,"y":738,"width":736,"height":12}},{"id":"57519193-04a0-4df1-bf6f-7388cb39c941","block_type":"box","text":"share class. Certain sales load reductions and waivers may be available to customers of certain","page_number":180,"box":{"x":116,"y":754,"width":711,"height":12}},{"id":"1b3731be-95e0-41b8-bc82-190e3d34aada","block_type":"box","text":"financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in","page_number":180,"box":{"x":116,"y":769,"width":740,"height":12}},{"id":"be653df2-9841-4073-81da-f06026b06adf","block_type":"box","text":"the Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":180,"box":{"x":116,"y":785,"width":656,"height":12}},{"id":"8e9d2e2f-152f-4d2f-a17a-8d87380093da","block_type":"box","text":"Reinvested Dividends.","page_number":180,"box":{"x":116,"y":816,"width":165,"height":9}},{"id":"c2b9fd62-c162-4094-9e3a-c8adb5198b59","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":180,"box":{"x":289,"y":816,"width":583,"height":12}},{"id":"40bb0c36-23de-4654-a72e-fb3fa8d790b1","block_type":"box","text":"reinvestment of dividends.","page_number":180,"box":{"x":117,"y":831,"width":199,"height":10}},{"id":"bd0b5e4f-54fd-42ca-b971-110c6d513369","block_type":"box","text":"Right of Accumulation.","page_number":180,"box":{"x":116,"y":862,"width":166,"height":12}},{"id":"ebefd632-1df0-4a49-9cd1-6a366e6e6780","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may","page_number":180,"box":{"x":284,"y":862,"width":585,"height":12}},{"id":"eba936af-6b92-4baf-aff2-6d03ab0c661e","block_type":"box","text":"be combined with the amount of the current purchase in determining whether an investor qualifies for a","page_number":180,"box":{"x":117,"y":878,"width":768,"height":12}},{"id":"ddd81755-8701-472b-a472-5c8011194e44","block_type":"box","text":"II-130","page_number":180,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"3257a1eb-b15a-4446-8302-2a2ca1c29fe3","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":180,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"be92ba34-3cbe-470d-ae86-db997c591279","block_type":"box","text":"breakpoint and a reduced front-end sales charge: (i) the current value of an investor’s existing Investor","page_number":181,"box":{"x":117,"y":87,"width":765,"height":12}},{"id":"624af93a-acf1-411e-af71-ba965fa2ffee","block_type":"box","text":"A, Investor A1, Investor C, Investor P, Institutional, Class K and Premier Shares in most BlackRock","page_number":181,"box":{"x":116,"y":102,"width":741,"height":12}},{"id":"cf13e0f4-1200-4782-9698-178dfea6e5bc","block_type":"box","text":"Funds, (ii) the current value of an investor’s existing shares of certain unlisted closed-end management","page_number":181,"box":{"x":117,"y":118,"width":770,"height":12}},{"id":"0ec5edb6-4889-4af0-8a44-bce627015fca","block_type":"box","text":"investment companies sponsored and advised by BlackRock or its affiliates (“Eligible Unlisted","page_number":181,"box":{"x":117,"y":134,"width":699,"height":12}},{"id":"eefbdf41-d47f-4bb4-bb8a-a95e73e9e411","block_type":"box","text":"BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock CollegeAdvantage 529","page_number":181,"box":{"x":117,"y":149,"width":717,"height":12}},{"id":"dbf73ec5-a4eb-4406-bf48-a8591e7691b3","block_type":"box","text":"Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":181,"box":{"x":117,"y":165,"width":673,"height":12}},{"id":"e7f18d46-3c94-4def-b63a-4e6337d7710d","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining","page_number":181,"box":{"x":117,"y":180,"width":741,"height":12}},{"id":"4716213c-bb13-4b0c-98b6-755705e83fdd","block_type":"box","text":"whether an investor qualifies for a breakpoint and a reduced front-end sales charge, although","page_number":181,"box":{"x":116,"y":196,"width":698,"height":12}},{"id":"103e02f0-7b76-4776-a79d-66d9d6830696","block_type":"box","text":"customers of the same financial intermediary will be treated similarly. In order to use this right, the","page_number":181,"box":{"x":116,"y":211,"width":732,"height":12}},{"id":"51ab030b-ee7c-419c-b673-d219a56b0e38","block_type":"box","text":"investor must alert BlackRock to the existence of any previously purchased shares. Certain funds","page_number":181,"box":{"x":117,"y":227,"width":727,"height":12}},{"id":"dee70ebb-3a15-4313-8302-a9808b0fee5d","block_type":"box","text":"employ a “passive” management approach and attempt to match the performance of a target index as","page_number":181,"box":{"x":116,"y":242,"width":762,"height":12}},{"id":"42d5b6fd-8a58-457a-81a1-74f7ac046d02","block_type":"box","text":"closely as possible before the deduction of Fund expenses (“Index Funds”). Although Investor A","page_number":181,"box":{"x":116,"y":258,"width":717,"height":12}},{"id":"0e1d8916-b5c1-4ff5-9045-82d19a47aabf","block_type":"box","text":"Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":181,"box":{"x":116,"y":273,"width":732,"height":12}},{"id":"194f239d-bf71-46de-aa8e-7056f662a0cc","block_type":"box","text":"charge, an investor’s existing Investor A, Investor A1, Investor C, Investor P, Institutional, Class K and","page_number":181,"box":{"x":116,"y":289,"width":763,"height":12}},{"id":"db407802-29c9-48a1-8a3b-760eb839c821","block_type":"box","text":"Premier Shares in the Index Funds and BlackRock Short Obligations Fund may be combined with the","page_number":181,"box":{"x":117,"y":304,"width":757,"height":12}},{"id":"14d29256-8845-4ffc-a791-645c584188d9","block_type":"box","text":"amount of an investor’s current purchase in determining whether an investor qualifies for a breakpoint","page_number":181,"box":{"x":116,"y":320,"width":760,"height":12}},{"id":"9714d0c0-6fa1-404e-bd75-2fd2afb2452c","block_type":"box","text":"and a reduced front-end sales charge.","page_number":181,"box":{"x":116,"y":335,"width":289,"height":12}},{"id":"890fced3-a25f-4d72-a01c-903c5dd7e6fc","block_type":"box","text":"Letter of Intent.","page_number":181,"box":{"x":116,"y":361,"width":111,"height":9}},{"id":"34a4f7ab-1bab-40e9-84ea-7bc78ec4febe","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a","page_number":181,"box":{"x":229,"y":361,"width":649,"height":12}},{"id":"20c3c266-5161-427c-9987-85e273c47002","block_type":"box","text":"“Letter of Intent” stating the investor’s intention to make one or more of the following investments within","page_number":181,"box":{"x":116,"y":376,"width":770,"height":12}},{"id":"9f22eb4c-d9b6-44ee-920a-29f7c732cbd3","block_type":"box","text":"the next 13 months which would, if bought all at once, qualify the investor for a reduced sales charge:","page_number":181,"box":{"x":116,"y":392,"width":758,"height":12}},{"id":"1d7bd2a4-3711-4985-a868-ea57fd1141d2","block_type":"box","text":"(i) buy a specified amount of Investor A, Investor C, Investor P, Institutional, Class K and/or Premier","page_number":181,"box":{"x":117,"y":407,"width":745,"height":12}},{"id":"48990783-5a42-4e14-a462-8028e5b89b51","block_type":"box","text":"Shares, (ii) make an investment in one or more Eligible Unlisted BlackRock Closed-End Funds and/or","page_number":181,"box":{"x":116,"y":423,"width":759,"height":12}},{"id":"be4e0636-92bb-4236-bcc9-11b4f2eec579","block_type":"box","text":"(iii) make an investment through the BlackRock CollegeAdvantage 529 Program in one or more","page_number":181,"box":{"x":117,"y":438,"width":712,"height":12}},{"id":"fd16730b-6c00-4328-995a-234c64358d5a","block_type":"box","text":"BlackRock Funds. The initial investment must meet the minimum initial purchase requirement. The","page_number":181,"box":{"x":117,"y":454,"width":736,"height":12}},{"id":"c6cefcaf-cc84-4aab-88b5-6ecdebce85c8","block_type":"box","text":"13-month Letter of Intent period commences on the day that the Letter of Intent is received by the","page_number":181,"box":{"x":118,"y":469,"width":727,"height":12}},{"id":"8fc2a912-d5ea-4680-9020-13a2d614ffb6","block_type":"box","text":"Fund. The market value of current holdings in the BlackRock Funds (including Investor A, Investor C,","page_number":181,"box":{"x":117,"y":485,"width":754,"height":12}},{"id":"3a94cdce-a44e-4f3f-8b3c-a30bb673a9ff","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds","page_number":181,"box":{"x":117,"y":500,"width":752,"height":12}},{"id":"5bb0f6ba-a609-41dd-aa31-b11361416f79","block_type":"box","text":"and the BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of","page_number":181,"box":{"x":116,"y":516,"width":722,"height":12}},{"id":"2dffecb2-7cd8-478e-8619-84e2dfe55da5","block_type":"box","text":"commencement that are eligible under the Right of Accumulation may be counted towards the sales","page_number":181,"box":{"x":116,"y":531,"width":747,"height":12}},{"id":"2c3fbe14-9c9f-45a1-9b82-09f795102730","block_type":"box","text":"charge reduction. The investor must notify the Fund of (i) any current holdings in the BlackRock Funds,","page_number":181,"box":{"x":116,"y":547,"width":770,"height":12}},{"id":"fdc2bf2b-39c1-4c93-9895-e46572ec5edd","block_type":"box","text":"Eligible Unlisted BlackRock Closed-End Funds and/or the BlackRock CollegeAdvantage 529 Program","page_number":181,"box":{"x":117,"y":562,"width":759,"height":12}},{"id":"224ef2a8-98c7-4785-b25b-d8b680609542","block_type":"box","text":"that should be counted towards the sales charge reduction and (ii) any subsequent purchases that","page_number":181,"box":{"x":116,"y":578,"width":735,"height":12}},{"id":"d7a08e76-eb03-46dc-a7d0-086cc6eb13b0","block_type":"box","text":"should be counted towards the Letter of Intent. During the term of the Letter of Intent, the Fund will","page_number":181,"box":{"x":116,"y":593,"width":737,"height":12}},{"id":"6e070002-9cc9-48a4-976d-ee23c70cf04e","block_type":"box","text":"hold Investor A Shares and/or Investor P Shares, as applicable, representing up to 5% of the indicated","page_number":181,"box":{"x":117,"y":609,"width":765,"height":12}},{"id":"7cfe8baa-73bc-41dc-b6b9-f5af5aa1ca41","block_type":"box","text":"amount in an escrow account for payment of a higher sales load if the full amount indicated in the","page_number":181,"box":{"x":116,"y":624,"width":728,"height":13}},{"id":"2f2120c1-48aa-4132-9197-92f0df01279c","block_type":"box","text":"Letter of Intent is not purchased. If the full amount indicated is not purchased within the 13-month","page_number":181,"box":{"x":117,"y":640,"width":726,"height":12}},{"id":"4d653931-e01e-4a75-af9a-094e4b7b48f1","block_type":"box","text":"period, and the investor does not pay the higher sales load within 20 days, the Fund will redeem","page_number":181,"box":{"x":117,"y":656,"width":717,"height":12}},{"id":"85aa96d8-b3da-41a4-9f91-c5cb786528fc","block_type":"box","text":"enough of the Investor A Shares and/or Investor P Shares, as applicable, held in escrow to pay the","page_number":181,"box":{"x":116,"y":671,"width":735,"height":12}},{"id":"8f29e1a4-1e53-4ba0-836c-4f0f7d0d3740","block_type":"box","text":"difference.","page_number":181,"box":{"x":116,"y":686,"width":77,"height":10}},{"id":"1ce0481a-9f1c-4c7c-b6a5-f214d8495b0e","block_type":"box","text":"Placement Fees.","page_number":181,"box":{"x":116,"y":712,"width":124,"height":10}},{"id":"9aba34ea-ddb3-4885-bf33-be35a1e9c389","block_type":"box","text":"BlackRock may pay placement fees to dealers on purchases of Investor A and Investor P Shares of all","page_number":181,"box":{"x":117,"y":733,"width":759,"height":12}},{"id":"355ff9d5-9f0f-4124-9b16-43a42b8a0cd4","block_type":"box","text":"Funds, which may depend on the policies, procedures and trading platforms of your financial","page_number":181,"box":{"x":117,"y":748,"width":685,"height":12}},{"id":"8a63ead7-7a4c-44ff-a798-6e2f707c6a96","block_type":"box","text":"intermediary.","page_number":181,"box":{"x":117,"y":764,"width":94,"height":12}},{"id":"eb5fb6af-013f-4f2b-b802-203051eb8da3","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A","page_number":181,"box":{"x":117,"y":790,"width":712,"height":12}},{"id":"f54d6e11-9716-4c6d-b472-6cbdc785d816","block_type":"box","text":"Shares:","page_number":181,"box":{"x":116,"y":805,"width":56,"height":10}},{"id":"226ab5c2-f42f-4d0a-b802-543ed36f68e8","block_type":"box","text":"$1 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following amounts:","page_number":183,"box":{"x":117,"y":831,"width":392,"height":12}},{"id":"ab3bd0d6-db1e-45dd-923c-1855cf2aea91","block_type":"box","text":"$1,000,000 and above","page_number":183,"box":{"x":150,"y":861,"width":172,"height":12}},{"id":"f0c95f4a-ea90-4d5f-af62-d8f7cbee6313","block_type":"box","text":"..................","page_number":183,"box":{"x":328,"y":870,"width":154,"height":2}},{"id":"cac89c6b-743f-4ec9-920d-23b79084681f","block_type":"box","text":"0.15%","page_number":183,"box":{"x":484,"y":862,"width":51,"height":10}},{"id":"df20ea8a-c020-49b4-b795-4d3e6813901c","block_type":"box","text":"II-133","page_number":183,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"e0652339-c27b-4c1c-90ab-4c1bf9b49f4f","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":183,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"0f9da86f-46de-4db6-8369-c04559e318d9","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund","page_number":184,"box":{"x":116,"y":87,"width":745,"height":12}},{"id":"cb41977c-4662-4027-9133-4e0fb47abfde","block_type":"box","text":"and iShares Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500","page_number":184,"box":{"x":116,"y":102,"width":770,"height":12}},{"id":"85802674-355d-4005-bcb1-b2f9a8e075f7","block_type":"box","text":"Index Fund and iShares U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":184,"box":{"x":117,"y":118,"width":612,"height":12}},{"id":"f07218f6-5268-4a3c-aceb-6c5695a543c5","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":184,"box":{"x":117,"y":149,"width":769,"height":12}},{"id":"8ded9610-4ba0-4d92-a0b9-7090062a4021","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of","page_number":184,"box":{"x":116,"y":164,"width":716,"height":13}},{"id":"059c75a2-f783-4e23-8fd2-437353a0fcae","block_type":"box","text":"BlackRock Funds V will result in a placement fee of up to 0.50% on the first $3 million and a placement","page_number":184,"box":{"x":117,"y":179,"width":768,"height":13}},{"id":"89119366-5d8c-4ce6-9f5a-64a903b3e272","block_type":"box","text":"fee of 0.25% on the final $1 million).","page_number":184,"box":{"x":116,"y":195,"width":272,"height":13}},{"id":"c6ca0469-9693-4f94-9af5-d048d6c82c4b","block_type":"box","text":"Other.","page_number":184,"box":{"x":117,"y":227,"width":44,"height":9}},{"id":"3ca62fec-a4a2-4de2-9f6c-b6a810551442","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales","page_number":184,"box":{"x":163,"y":227,"width":685,"height":12}},{"id":"2761a697-3fc3-4a39-ad15-18690653095a","block_type":"box","text":"charge: (a) certain employer-sponsored retirement plans (for purposes of this waiver, employer","page_number":184,"box":{"x":116,"y":242,"width":710,"height":12}},{"id":"2ae10055-ba99-4d3a-a86d-e4d74216341b","block_type":"box","text":"sponsored retirement plans do not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of","page_number":184,"box":{"x":116,"y":258,"width":733,"height":12}},{"id":"dcc7fe43-2805-4003-9b34-73812bc9e931","block_type":"box","text":"current investments through certain employer-sponsored retirement plans provided the shares are","page_number":184,"box":{"x":116,"y":273,"width":733,"height":12}},{"id":"ce53c491-1347-4e5e-bb39-fa0406ad2eac","block_type":"box","text":"transferred to Investor A or Investor P, as applicable, shares of the same or another BlackRock Fund","page_number":184,"box":{"x":116,"y":289,"width":754,"height":12}},{"id":"d649a3f5-d0cf-462f-ad89-6f405561728c","block_type":"box","text":"as either a direct rollover, or subsequent to distribution, the rolled-over proceeds are contributed to a","page_number":184,"box":{"x":116,"y":304,"width":750,"height":12}},{"id":"6aa68f2b-7ab8-420d-9ae7-12001baa8e9d","block_type":"box","text":"BlackRock IRA through an account directly with the Fund; or purchases by IRA programs that are","page_number":184,"box":{"x":117,"y":320,"width":728,"height":12}},{"id":"7dcf9203-bf9c-43e7-98b5-0249c021ab71","block_type":"box","text":"sponsored by financial intermediary firms provided the financial intermediary firm has entered into a","page_number":184,"box":{"x":116,"y":335,"width":744,"height":12}},{"id":"cd710809-6912-4cbf-8eea-9568be0f95d4","block_type":"box","text":"Class A or Investor P NAV agreement, as applicable, with respect to such program with the Distributor;","page_number":184,"box":{"x":117,"y":351,"width":768,"height":12}},{"id":"5f7ecccd-0f0c-420c-8f1e-4da3815b3871","block_type":"box","text":"(c) insurance company separate accounts; (d) registered investment advisers, trust companies and","page_number":184,"box":{"x":117,"y":366,"width":740,"height":12}},{"id":"60eb312b-8d00-4870-a133-6be1a0b378ef","block_type":"box","text":"bank trust departments exercising discretionary investment authority with respect to amounts to be","page_number":184,"box":{"x":117,"y":382,"width":736,"height":12}},{"id":"a33f7c1c-92d6-49bd-9538-d4eb7b823295","block_type":"box","text":"invested in a Fund; (e) persons participating in a fee-based program (such as a wrap account) under","page_number":184,"box":{"x":117,"y":397,"width":750,"height":12}},{"id":"192c8977-bf08-45b4-87b3-c80a3d5456b6","block_type":"box","text":"which they pay advisory fees to a broker-dealer or other financial institution; (f) financial intermediaries","page_number":184,"box":{"x":116,"y":413,"width":764,"height":12}},{"id":"aa7b2256-602d-49d1-944e-9bc88650626d","block_type":"box","text":"who have entered into an agreement with the Distributor and have been approved by the Distributor to","page_number":184,"box":{"x":116,"y":428,"width":764,"height":12}},{"id":"a8249e0b-f6b9-4853-855a-c18111358b2c","block_type":"box","text":"offer Fund shares to self-directed investment brokerage accounts that may or may not charge a","page_number":184,"box":{"x":116,"y":444,"width":714,"height":12}},{"id":"a7c9fd96-255e-408f-a083-1981ab23fa58","block_type":"box","text":"transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into","page_number":184,"box":{"x":116,"y":459,"width":736,"height":12}},{"id":"68a9ddab-4e75-4616-90f2-da81b6f85c88","block_type":"box","text":"Roth IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only,","page_number":184,"box":{"x":117,"y":475,"width":753,"height":12}},{"id":"ae13754f-8ff4-4a50-9f0e-5fe5a8eccfb4","block_type":"box","text":"accounts opened directly with a Fund that do not have a financial intermediary associated with the","page_number":184,"box":{"x":116,"y":490,"width":733,"height":12}},{"id":"9b972ebc-4732-40ff-9152-ebb53feac522","block_type":"box","text":"account; and (i) persons involuntarily liquidated from a Fund, who within 60 days of liquidation buy new","page_number":184,"box":{"x":116,"y":506,"width":769,"height":12}},{"id":"d36c6ebb-f5a4-4482-a8f6-d10b40bdb69c","block_type":"box","text":"shares of another BlackRock Fund (but only up to the amount that was liquidated). The following","page_number":184,"box":{"x":116,"y":521,"width":721,"height":12}},{"id":"8ce4afaf-3bc6-46a0-ba8d-15662191a316","block_type":"box","text":"persons associated with the Funds, the Fund’s Manager, Sub-Advisers, Transfer Agent, Distributor,","page_number":184,"box":{"x":117,"y":537,"width":743,"height":12}},{"id":"dac7ed5d-21b6-4b87-a79b-700b10a39f22","block_type":"box","text":"fund accounting agents, Barclays PLC and their affiliates may buy Investor A or Investor P Shares of","page_number":184,"box":{"x":116,"y":552,"width":752,"height":12}},{"id":"669be450-2488-4911-8ec2-19f68d8984eb","block_type":"box","text":"each of the Funds without paying a sales charge to the extent permitted by these firms including:","page_number":184,"box":{"x":116,"y":568,"width":723,"height":12}},{"id":"24354382-1ccd-474a-bda8-e6e39006df5a","block_type":"box","text":"(a) officers, directors and partners; (b) employees and retirees; (c) employees or registered","page_number":184,"box":{"x":117,"y":583,"width":680,"height":12}},{"id":"f27eea5a-6bd3-4ce7-9e8b-ee46b8a4bdd7","block_type":"box","text":"representatives of firms who have entered into selling agreements to distribute shares of BlackRock","page_number":184,"box":{"x":117,"y":599,"width":745,"height":12}},{"id":"286b6291-08b3-42e8-8557-7f7c0349bf02","block_type":"box","text":"advised funds; (d) immediate family members of such persons (“immediate family members” shall be","page_number":184,"box":{"x":116,"y":614,"width":753,"height":12}},{"id":"b8969c3c-09f4-4623-a347-912663e04dae","block_type":"box","text":"defined as the investor, the investor’s spouse or domestic partner, children, parents and siblings); and","page_number":184,"box":{"x":116,"y":630,"width":761,"height":12}},{"id":"0e14d3fe-5868-4b25-854f-0d04a5a8c4cc","block_type":"box","text":"(e) any trust, pension, profit-sharing or other benefit plan for any of the persons set forth in (a) through","page_number":184,"box":{"x":117,"y":645,"width":762,"height":12}},{"id":"31c7eabf-a12d-42b1-a7f5-ca69cf01e647","block_type":"box","text":"(d). Investors who qualify for any of these exemptions from the sales charge should purchase","page_number":184,"box":{"x":117,"y":661,"width":692,"height":12}},{"id":"99e681a8-76f1-45c9-87ce-7649f72a73d7","block_type":"box","text":"Investor A or Investor P Shares. 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The availability of Investor A or Investor P","page_number":184,"box":{"x":117,"y":738,"width":753,"height":12}},{"id":"5c24b491-22fd-4425-9c0e-b22cf74aad88","block_type":"box","text":"Shares sales charge waivers may depend upon the policies, procedures and trading platforms of your","page_number":184,"box":{"x":116,"y":754,"width":756,"height":12}},{"id":"34213d5a-069d-425e-bbb0-448f07632740","block_type":"box","text":"financial intermediary; consult your financial adviser.","page_number":184,"box":{"x":116,"y":769,"width":387,"height":12}},{"id":"1fe035d0-9781-41f6-8a14-1a6d9e3bad18","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi","page_number":184,"box":{"x":117,"y":799,"width":736,"height":13}},{"id":"83dacc9d-a160-4392-a0ee-051c7f9eb581","block_type":"box","text":"Asset Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock","page_number":184,"box":{"x":116,"y":816,"width":720,"height":12}},{"id":"254a93a2-bd73-43e2-8750-c67e55853b7a","block_type":"box","text":"Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond","page_number":184,"box":{"x":117,"y":831,"width":755,"height":11}},{"id":"cf9513aa-bc4f-44ec-93f6-f39abab50454","block_type":"box","text":"Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of BlackRock","page_number":184,"box":{"x":117,"y":847,"width":754,"height":12}},{"id":"5c9f84be-968b-44c5-b7b9-2152c4342d71","block_type":"box","text":"Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":184,"box":{"x":117,"y":862,"width":754,"height":12}},{"id":"e5b8c3ba-6f9b-4471-9638-43265420f19e","block_type":"box","text":"Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust,","page_number":184,"box":{"x":117,"y":878,"width":693,"height":12}},{"id":"73920d1f-8288-4564-b431-4d7c430aecd8","block_type":"box","text":"II-134","page_number":184,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"36b83036-d94c-443e-8e7d-00ecc1ac850c","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":184,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"11ac8cf2-1ca7-43f9-9447-da6f6aedc309","block_type":"box","text":"BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":185,"box":{"x":117,"y":87,"width":736,"height":12}},{"id":"697f8271-0577-4798-a695-c3cc8fdb3532","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and","page_number":185,"box":{"x":117,"y":102,"width":761,"height":13}},{"id":"caf76194-94d1-464f-b333-2cceaab11577","block_type":"box","text":"BlackRock Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust,","page_number":185,"box":{"x":117,"y":118,"width":714,"height":12}},{"id":"379ae9d6-69d9-47bd-b733-2e3109e2ba60","block_type":"box","text":"BlackRock Event Driven Equity Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock","page_number":185,"box":{"x":117,"y":133,"width":770,"height":13}},{"id":"4b91113f-e778-4739-87e4-da8e80d64f52","block_type":"box","text":"Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock Income Fund and","page_number":185,"box":{"x":117,"y":149,"width":757,"height":12}},{"id":"18654bed-7b33-4214-a306-fe5a2b33305f","block_type":"box","text":"BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more in Investor A or","page_number":185,"box":{"x":117,"y":165,"width":742,"height":12}},{"id":"c2a43461-d5ab-4f6a-9f36-929ab6317fee","block_type":"box","text":"Investor P Shares, as applicable, you may not pay an initial sales charge. 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The Investor A Shares deferred sales charge is only charged upon","page_number":185,"box":{"x":117,"y":320,"width":722,"height":12}},{"id":"e81e1470-4068-4024-986f-f942971e9870","block_type":"box","text":"redemptions of Investor A Shares within 18 months after you originally acquired such Investor A","page_number":185,"box":{"x":117,"y":335,"width":716,"height":12}},{"id":"4c20b4d4-4f0f-4d9b-83cf-692a16461001","block_type":"box","text":"Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply","page_number":185,"box":{"x":116,"y":351,"width":708,"height":12}},{"id":"c733e8c7-8140-4fcf-a362-fa4e7d147306","block_type":"box","text":"depending on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There","page_number":185,"box":{"x":116,"y":366,"width":763,"height":12}},{"id":"8b16f40c-4064-4717-a2a2-e6cda8077adc","block_type":"box","text":"is no deferred sales charge charged on redemptions if you have owned your Investor A Shares for","page_number":185,"box":{"x":117,"y":382,"width":733,"height":12}},{"id":"894b76d0-054b-4a1f-8cab-6ad32ba42e0e","block_type":"box","text":"more than 18 months (or for a shorter holding period, as applicable) (as measured from your original","page_number":185,"box":{"x":117,"y":397,"width":749,"height":12}},{"id":"63662ce4-c1a5-459c-9b84-a0c74870a95b","block_type":"box","text":"purchase of Investor A Shares that you exchanged into Investor A Shares of the Index Fund or","page_number":185,"box":{"x":117,"y":413,"width":707,"height":12}},{"id":"ce2c0bed-6fd8-457e-8400-d3c1f41ad670","block_type":"box","text":"BlackRock Short Obligations Fund).","page_number":185,"box":{"x":117,"y":428,"width":270,"height":12}},{"id":"467ff27a-acb1-4adc-b9f4-e7a2d1a9aae3","block_type":"box","text":"The deferred sales charge on Investor A or Investor P Shares, as applicable, is not charged in connection","page_number":185,"box":{"x":116,"y":459,"width":764,"height":12}},{"id":"77e6a492-c409-46ac-a9ab-b82dfab5697c","block_type":"box","text":"with: (a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored","page_number":185,"box":{"x":116,"y":475,"width":752,"height":12}},{"id":"e949063e-3e86-4840-b683-073bc412488b","block_type":"box","text":"retirement plans and rollovers of current investments in a Fund through such plans; 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(f) involuntary redemptions of Investor A or","page_number":185,"box":{"x":116,"y":599,"width":771,"height":12}},{"id":"006af0a1-c32a-4abe-a28b-0ca888df1307","block_type":"box","text":"Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":185,"box":{"x":117,"y":614,"width":687,"height":12}},{"id":"58ffbcf9-9863-4251-9f51-b7fd0e05d960","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon","page_number":185,"box":{"x":116,"y":630,"width":738,"height":12}},{"id":"15d3b223-e479-47b5-95d4-ca1926714406","block_type":"box","text":"Investment Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can","page_number":185,"box":{"x":117,"y":645,"width":734,"height":12}},{"id":"900f32a3-9a49-4b25-8a04-0abfaf0b879d","block_type":"box","text":"demonstrate hardship, in the absolute discretion of a Fund.","page_number":185,"box":{"x":116,"y":661,"width":423,"height":12}},{"id":"e984b698-8487-4119-b7ef-716101d51be1","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a","page_number":185,"box":{"x":116,"y":692,"width":740,"height":12}},{"id":"dae8fed1-0f59-4eb4-a74b-10865d4a2b62","block_type":"box","text":"placement fee, the Fund may, at its own discretion, waive the CDSC related to purchases of","page_number":185,"box":{"x":117,"y":707,"width":683,"height":12}},{"id":"e9296bc7-42bc-465c-b4c4-c2b4bd277a08","block_type":"box","text":"$1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income","page_number":185,"box":{"x":116,"y":722,"width":745,"height":13}},{"id":"da19ccb7-88fd-4d9b-876c-ebbaf778da8c","block_type":"box","text":"Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative","page_number":185,"box":{"x":117,"y":738,"width":727,"height":12}},{"id":"1f4c7c5f-88cc-4488-9425-2236cb1ed74a","block_type":"box","text":"Value Fund of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc.,","page_number":185,"box":{"x":116,"y":754,"width":719,"height":11}},{"id":"5d236277-9047-46ec-a3e9-2b66606ccf14","block_type":"box","text":"BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of BlackRock Municipal","page_number":185,"box":{"x":117,"y":769,"width":740,"height":12}},{"id":"3f6d9ba9-1422-4818-ac3c-0ee7af28162d","block_type":"box","text":"Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":185,"box":{"x":117,"y":785,"width":709,"height":12}},{"id":"a772120d-501b-4b6a-8de4-1277486778cf","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock","page_number":185,"box":{"x":117,"y":800,"width":736,"height":12}},{"id":"2db9c5c1-f4c9-40ad-a85d-f9c06a3a531d","block_type":"box","text":"California Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock","page_number":185,"box":{"x":117,"y":816,"width":732,"height":12}},{"id":"45bdd40a-3640-49b6-98f7-95feb5e5f2ce","block_type":"box","text":"New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":185,"box":{"x":117,"y":831,"width":761,"height":12}},{"id":"447a1187-4645-4ce3-a79f-beda7a2ca27c","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event","page_number":185,"box":{"x":117,"y":847,"width":762,"height":12}},{"id":"3fd89aaa-6208-4a13-8e1c-7f2891d3b965","block_type":"box","text":"Driven Equity Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration","page_number":185,"box":{"x":117,"y":861,"width":742,"height":13}},{"id":"97bb0ffa-f333-4a78-b289-5c4a88af357b","block_type":"box","text":"Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock","page_number":185,"box":{"x":117,"y":878,"width":738,"height":12}},{"id":"3b3ea2b7-89a5-461f-983f-023aa0810d05","block_type":"box","text":"II-135","page_number":185,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"7b0d3a13-940d-4c70-b578-97eec2ff3994","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":185,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"af4dd327-c101-44e1-9478-f25ac5650364","block_type":"box","text":"Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or Investor P","page_number":186,"box":{"x":116,"y":87,"width":740,"height":12}},{"id":"b4443519-5764-4808-a93c-eb5a2080c170","block_type":"box","text":"Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":186,"box":{"x":116,"y":102,"width":706,"height":13}},{"id":"32d6de72-1b3d-4cfa-908e-73dc6d72b773","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":186,"box":{"x":117,"y":118,"width":326,"height":12}},{"id":"207794a2-07c3-4f44-b624-cbec7cd53b2b","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons,","page_number":186,"box":{"x":117,"y":149,"width":746,"height":12}},{"id":"299327b1-1bfd-4e84-b2f5-a203045009de","block_type":"box","text":"are required to transfer investment positions from a foreign registered investment company advised by","page_number":186,"box":{"x":116,"y":165,"width":765,"height":12}},{"id":"77db0cd4-393f-4f1c-8923-975143ce7e7a","block_type":"box","text":"BlackRock or its affiliates to a U.S. registered BlackRock-advised fund.","page_number":186,"box":{"x":117,"y":180,"width":530,"height":12}},{"id":"7a7a9089-e6f7-4ed4-910e-abad0490346e","block_type":"box","text":"Acquisition of Certain Investment Companies.","page_number":186,"box":{"x":115,"y":211,"width":340,"height":12}},{"id":"e87d8d74-63de-435a-bdda-898a980ace75","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV","page_number":186,"box":{"x":456,"y":211,"width":432,"height":12}},{"id":"0708d76a-c1b4-439c-964c-ed26171665f3","block_type":"box","text":"in connection with the acquisition of the assets of, or merger or consolidation with, a personal holding","page_number":186,"box":{"x":117,"y":227,"width":755,"height":12}},{"id":"380d0d82-a065-42b1-a6dc-f1605dff7155","block_type":"box","text":"company or a public or private investment company.","page_number":186,"box":{"x":116,"y":242,"width":394,"height":12}},{"id":"45556ec3-4aac-4771-aca4-f607128ed9ea","block_type":"box","text":"Purchases Through Certain Financial Intermediaries.","page_number":186,"box":{"x":116,"y":273,"width":392,"height":12}},{"id":"11c6d6e8-6b1f-4dee-9216-294634ee6a48","block_type":"box","text":"Reduced sales charges may be applicable for","page_number":186,"box":{"x":509,"y":273,"width":350,"height":12}},{"id":"bf05503b-7b53-4f1b-99f2-cebd593b60e2","block_type":"box","text":"purchases of Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers,","page_number":186,"box":{"x":117,"y":289,"width":764,"height":12}},{"id":"b5efa698-9a89-4a66-b4d2-c625563e6012","block_type":"box","text":"selected securities dealers and other financial intermediaries that meet and adhere to standards","page_number":186,"box":{"x":116,"y":304,"width":717,"height":10}},{"id":"48433d8e-a8f7-46fe-be18-67f6aaebf365","block_type":"box","text":"established by the Manager from time to time.","page_number":186,"box":{"x":116,"y":320,"width":346,"height":12}},{"id":"4e627d74-7f0f-4b1e-96eb-f4ebc7bb1b35","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":186,"box":{"x":117,"y":351,"width":445,"height":12}},{"id":"aa1e62b0-7c4f-4da3-9d88-0285131fb0e5","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are","page_number":186,"box":{"x":117,"y":374,"width":762,"height":12}},{"id":"d39c9966-dbfb-4aa0-8dc8-f1fa73fcf7fb","block_type":"box","text":"uncertain as to the length of time they intend to hold their assets in a Fund. If you select Investor C","page_number":186,"box":{"x":117,"y":389,"width":736,"height":12}},{"id":"6c8c56b2-d9d2-494a-b13a-80d343cb7fb5","block_type":"box","text":"Shares, you do not pay an initial sales charge at the time of purchase. A Fund will not accept a","page_number":186,"box":{"x":116,"y":405,"width":708,"height":12}},{"id":"b10afeef-11b7-483c-a73e-f87875e31b67","block_type":"box","text":"purchase order of $500,000 or more for Investor C Shares (may be lower on funds that have set a","page_number":186,"box":{"x":117,"y":420,"width":732,"height":12}},{"id":"dc941cc5-f078-417d-b015-f894f570719f","block_type":"box","text":"lower breakpoint for NAV). Your financial intermediary may set a lower maximum for Investor C","page_number":186,"box":{"x":117,"y":436,"width":711,"height":12}},{"id":"094f695f-300d-426a-b1c4-234f17a0debe","block_type":"box","text":"Shares.","page_number":186,"box":{"x":116,"y":451,"width":62,"height":10}},{"id":"251edc49-79a2-4d17-9761-de9e2e9828eb","block_type":"box","text":"Investor C Shares are not available in accounts opened or held directly with a Fund that do not have a","page_number":186,"box":{"x":117,"y":482,"width":762,"height":12}},{"id":"ff553683-49a5-415b-9de6-a097f40587ee","block_type":"box","text":"financial intermediary associated with the account.","page_number":186,"box":{"x":116,"y":498,"width":379,"height":12}},{"id":"0e48e222-c31f-4af0-b946-886cd343bfd1","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":186,"box":{"x":117,"y":529,"width":700,"height":12}},{"id":"bb8038c2-a152-4704-908e-cb43f958bf45","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for","page_number":186,"box":{"x":116,"y":560,"width":771,"height":12}},{"id":"441c3871-3c53-45b0-ade0-3fa28da5a42b","block_type":"box","text":"the reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution","page_number":186,"box":{"x":116,"y":575,"width":767,"height":12}},{"id":"245dad3a-1408-4bdc-ab89-b37f35832aeb","block_type":"box","text":"fees; however, these fees potentially may be offset to the extent any return is realized on the additional","page_number":186,"box":{"x":116,"y":591,"width":769,"height":12}},{"id":"288398e3-6eb0-4df2-b834-f4e42b7f3239","block_type":"box","text":"funds initially invested in CDSC shares.","page_number":186,"box":{"x":116,"y":606,"width":298,"height":12}},{"id":"05a01f9a-f84f-455c-aa27-72ab2f6fa333","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares","page_number":186,"box":{"x":117,"y":637,"width":758,"height":12}},{"id":"8cb5a5e2-cd83-4f17-972d-2c3b841efefc","block_type":"box","text":"at the time of purchase from its own funds. Proceeds from the CDSC and the distribution fee are paid","page_number":186,"box":{"x":116,"y":653,"width":757,"height":12}},{"id":"785139af-1d66-4eac-a29f-255dbb254c38","block_type":"box","text":"to the Distributor and are used by the Distributor to defray the expenses of securities dealers or other","page_number":186,"box":{"x":116,"y":668,"width":751,"height":12}},{"id":"e4f6bb58-1ff0-45eb-b80f-aa0c37fb3b4f","block_type":"box","text":"financial intermediaries related to providing distribution-related services to each Fund in connection","page_number":186,"box":{"x":116,"y":684,"width":735,"height":12}},{"id":"d89469e3-39a1-4dd9-84e6-2f9bbb489672","block_type":"box","text":"with the sale of the CDSC shares. The combination of the CDSC and the ongoing distribution fee","page_number":186,"box":{"x":116,"y":699,"width":719,"height":13}},{"id":"810935c9-63c6-4c9f-9466-1f7154844f6a","block_type":"box","text":"facilitates the ability of each Fund to sell the CDSC shares without a sales charge being deducted at","page_number":186,"box":{"x":116,"y":715,"width":743,"height":12}},{"id":"1e537bab-c9e5-408a-8cc7-d8cf9cbf525e","block_type":"box","text":"the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below. Imposition of the","page_number":186,"box":{"x":116,"y":730,"width":742,"height":13}},{"id":"4673a381-6fd2-466c-8aca-8768848facde","block_type":"box","text":"CDSC and the distribution fee on CDSC shares is limited by FINRA (as defined below) asset-based","page_number":186,"box":{"x":117,"y":746,"width":737,"height":12}},{"id":"4d88a8a7-5af5-4ed6-9ea2-97ca494aee83","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":186,"box":{"x":116,"y":761,"width":642,"height":13}},{"id":"62f6a0fc-e25d-41c2-993c-ffcd53626ffa","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold","page_number":186,"box":{"x":117,"y":792,"width":750,"height":13}},{"id":"de860a2d-7c90-4c78-98e1-c04acb408a4a","block_type":"box","text":"by them plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a","page_number":186,"box":{"x":117,"y":808,"width":751,"height":12}},{"id":"08d283f2-bc6d-47ed-a7f4-44d64526fe7c","block_type":"box","text":"commission in connection with sales of Investor C Shares to certain employer-sponsored retirement","page_number":186,"box":{"x":116,"y":823,"width":741,"height":13}},{"id":"763065c5-6508-4061-8d7a-824444c4b07b","block_type":"box","text":"plans sponsored by the Fund, BlackRock or its affiliates, but may receive fees under the Distribution","page_number":186,"box":{"x":117,"y":839,"width":746,"height":12}},{"id":"4f66908f-9c2e-4dc9-8409-4b721c0febe6","block_type":"box","text":"and Service Plan. These commissions and payments may be different than the reallowances,","page_number":186,"box":{"x":116,"y":854,"width":699,"height":13}},{"id":"9f4ef25b-b2b2-46b8-8e4b-f56429d73962","block_type":"box","text":"placement fees and commissions paid to dealers in connection with sales of Investor A, Investor A1","page_number":186,"box":{"x":117,"y":870,"width":744,"height":12}},{"id":"68ec5dbc-801d-4911-afb6-a6c92c9ecd53","block_type":"box","text":"II-136","page_number":186,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"e0389acc-e7d2-4715-8039-41bb9b6bb4be","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":186,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"47bcf7b0-05b7-422f-90d7-16329253883e","block_type":"box","text":"and Investor P Shares. These may depend upon the policies, procedures and trading platforms of your","page_number":187,"box":{"x":116,"y":87,"width":768,"height":12}},{"id":"4535553f-3016-4fcc-bf88-a2263fdfe9a0","block_type":"box","text":"financial intermediary; consult your financial adviser.","page_number":187,"box":{"x":116,"y":102,"width":393,"height":13}},{"id":"ed251da8-ff78-46ab-af6c-8b596d37c20e","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective","page_number":187,"box":{"x":117,"y":131,"width":664,"height":12}},{"id":"8956beb5-1728-4777-b3a0-711124374c07","block_type":"box","text":"November 23, 2020, Investor C Shares held for approximately eight years will be converted into","page_number":187,"box":{"x":117,"y":146,"width":714,"height":12}},{"id":"049598e0-43d0-4b0a-8392-39b7e7aa212e","block_type":"box","text":"Investor A Shares, as set forth in each Fund’s Prospectus. In addition, accounts that do not have a","page_number":187,"box":{"x":117,"y":162,"width":736,"height":12}},{"id":"45a5732d-22c8-4097-bb51-c049135e5db8","block_type":"box","text":"financial intermediary associated with them are not eligible to hold Investor C Shares, and any Investor","page_number":187,"box":{"x":116,"y":177,"width":768,"height":12}},{"id":"2a25c4ef-8c68-4424-a8b0-7d182c2308a1","block_type":"box","text":"C Shares held in such accounts will be automatically converted to Investor A Shares.","page_number":187,"box":{"x":117,"y":193,"width":635,"height":12}},{"id":"c440c549-2bf3-4495-8a84-1817150451fd","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":187,"box":{"x":117,"y":221,"width":404,"height":10}},{"id":"859e4702-d0b3-4c62-a5fb-68afe45a2852","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor","page_number":187,"box":{"x":117,"y":243,"width":763,"height":12}},{"id":"0570fea9-6161-4ce6-9710-5899c2de3174","block_type":"box","text":"C Shares of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor","page_number":187,"box":{"x":117,"y":259,"width":736,"height":12}},{"id":"44e3cd92-dbcc-4d5e-a1b1-1a09df0e9b8a","block_type":"box","text":"C 8-Year Conversion”). Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the","page_number":187,"box":{"x":117,"y":274,"width":770,"height":12}},{"id":"7c0f6661-ba50-4405-83f3-417a74b35ae4","block_type":"box","text":"“Successor Funds”) pursuant to reorganizations which occurred in September 2018. The holding","page_number":187,"box":{"x":116,"y":290,"width":722,"height":12}},{"id":"c6d8c4a4-d80f-4022-8ba0-efe6bb4dcf9f","block_type":"box","text":"period for Investor C Shares of Successor Funds includes the period such shares were held in the","page_number":187,"box":{"x":117,"y":305,"width":732,"height":12}},{"id":"bf0ad851-0687-471f-b1d1-efd2a9df6317","block_type":"box","text":"respective Predecessor Fund. It is the financial intermediary’s responsibility to ensure that the","page_number":187,"box":{"x":117,"y":321,"width":699,"height":12}},{"id":"aebb9c13-b7ad-40fe-9f2c-e9d097fe1b98","block_type":"box","text":"shareholder is credited with the proper holding period. As of the Effective Date, certain financial","page_number":187,"box":{"x":116,"y":336,"width":713,"height":12}},{"id":"59255ad4-7b7a-41f7-9c4b-dab56cca3715","block_type":"box","text":"intermediaries, including group retirement recordkeeping platforms, may not have been tracking such","page_number":187,"box":{"x":117,"y":352,"width":755,"height":12}},{"id":"25a42d9d-b0bc-4ec7-a791-fd5139904251","block_type":"box","text":"holding periods and therefore may not be able to process such conversions. In such instances,","page_number":187,"box":{"x":117,"y":367,"width":708,"height":12}},{"id":"3b7b9a80-704f-4127-8277-c00e4c59bd4f","block_type":"box","text":"Investor C Shares held as of the Effective Date will automatically convert to Investor A Shares","page_number":187,"box":{"x":117,"y":383,"width":702,"height":12}},{"id":"eff3df4f-1930-4a53-af4f-e0ca0cc0e343","block_type":"box","text":"approximately eight years after the Effective Date. If, as of November 23, 2028 (eight years after the","page_number":187,"box":{"x":116,"y":398,"width":749,"height":12}},{"id":"38acb4b5-1cc6-4ade-b12c-a6bdabd0af7d","block_type":"box","text":"Effective Date), a financial intermediary has not implemented systems or procedures to track holding","page_number":187,"box":{"x":117,"y":414,"width":751,"height":12}},{"id":"aa605627-4106-4430-b50d-620d620a7499","block_type":"box","text":"periods commencing from the Effective Date, shareholders holding Investor C Shares through such","page_number":187,"box":{"x":117,"y":429,"width":742,"height":12}},{"id":"bfa8ed53-b728-4f14-835f-4a75aac0ba1d","block_type":"box","text":"financial intermediary will no longer be eligible to hold Investor C Shares and any such shares will","page_number":187,"box":{"x":116,"y":445,"width":729,"height":12}},{"id":"91d22cd9-c8ec-4151-9aa6-38aad8daf31e","block_type":"box","text":"convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":187,"box":{"x":116,"y":460,"width":597,"height":12}},{"id":"d6daf88a-29ae-4230-824e-95bbcb816b0a","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to","page_number":187,"box":{"x":117,"y":489,"width":756,"height":12}},{"id":"4406213b-3d12-43aa-845c-cbdffab16d30","block_type":"box","text":"hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically","page_number":187,"box":{"x":117,"y":504,"width":704,"height":12}},{"id":"3672c56a-e276-4dde-8ca6-9984cba62251","block_type":"box","text":"converted into Investor A Shares (the “Investor C Direct Accounts Conversion” and together with the","page_number":187,"box":{"x":116,"y":520,"width":749,"height":12}},{"id":"fcd94778-737b-458d-bcd8-f6acba4f8045","block_type":"box","text":"Investor C 8-Year Conversion, the “Investor C Conversions”).","page_number":187,"box":{"x":117,"y":535,"width":459,"height":12}},{"id":"0d953c7d-1c16-42e3-80a3-24ba0ed17554","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”)","page_number":187,"box":{"x":116,"y":563,"width":765,"height":13}},{"id":"6e0b47fd-4a72-4333-b9d6-787397ec9722","block_type":"box","text":"on the basis of the relative NAV of the shares of the two applicable classes on the Investor C","page_number":187,"box":{"x":116,"y":579,"width":694,"height":12}},{"id":"569ee603-6ce3-4471-8c02-adbe921b0cf6","block_type":"box","text":"Conversion Date, without the imposition of any sales load, fee or other charge. The Investor C","page_number":187,"box":{"x":117,"y":594,"width":702,"height":13}},{"id":"a7c92e07-c8e6-45e4-a418-32e93e339494","block_type":"box","text":"Conversions will not be deemed a purchase or sale of the shares for U.S. federal income tax purposes.","page_number":187,"box":{"x":117,"y":610,"width":770,"height":12}},{"id":"9027971c-06ed-4d5f-8068-34989c59bcb7","block_type":"box","text":"Shares acquired through reinvestment of dividends on Investor C Shares will also convert","page_number":187,"box":{"x":116,"y":625,"width":670,"height":13}},{"id":"33e73f94-0002-460d-b6f2-02bbc9c15316","block_type":"box","text":"automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C Conversion","page_number":187,"box":{"x":116,"y":641,"width":765,"height":12}},{"id":"6ad85fd5-757d-4a1a-924c-f6df98080f14","block_type":"box","text":"Date for dividend reinvestment shares will be calculated taking into account the length of time the","page_number":187,"box":{"x":117,"y":656,"width":726,"height":13}},{"id":"034752c1-eb13-4b05-a6cb-6bedb1f6c7e2","block_type":"box","text":"shares underlying the dividend reinvestment shares were outstanding.","page_number":187,"box":{"x":116,"y":672,"width":520,"height":12}},{"id":"8a0179b1-b01b-4501-96f3-624db8136031","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":187,"box":{"x":117,"y":700,"width":418,"height":12}},{"id":"5da5beb4-378b-402a-91e9-7034ee633359","block_type":"box","text":"Investor C Shares that are redeemed within one year of purchase may be subject to a 1.00% CDSC","page_number":187,"box":{"x":117,"y":722,"width":741,"height":12}},{"id":"6b0f752e-c14e-41ce-ac30-a477dd9b99a1","block_type":"box","text":"charged as a percentage of the dollar amount subject thereto. In determining whether an Investor C","page_number":187,"box":{"x":116,"y":738,"width":739,"height":12}},{"id":"054c07a9-9f71-4cfe-9535-6cf01d5c40cb","block_type":"box","text":"Shares CDSC is applicable to a redemption, the calculation will be determined in the manner that","page_number":187,"box":{"x":116,"y":753,"width":722,"height":12}},{"id":"6611b42b-f26c-492e-8fbb-4e484aa8fd9b","block_type":"box","text":"results in the lowest possible rate being charged. The charge will be assessed on an amount equal to","page_number":187,"box":{"x":117,"y":769,"width":751,"height":12}},{"id":"8e15deea-2f63-44ae-bd96-dfcd6ae5f4d0","block_type":"box","text":"the lesser of the proceeds of redemption or the cost of the shares being redeemed. Accordingly, no","page_number":187,"box":{"x":116,"y":784,"width":737,"height":12}},{"id":"bf78f243-752d-497c-b434-2c2018069932","block_type":"box","text":"CDSC will be imposed on increases in NAV above the initial purchase price of Investor C Shares. In","page_number":187,"box":{"x":117,"y":800,"width":740,"height":12}},{"id":"14eaa94d-6a91-4b57-a5cc-440f91df724b","block_type":"box","text":"addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of dividends.","page_number":187,"box":{"x":116,"y":815,"width":759,"height":12}},{"id":"84eff523-c869-4f18-b9a0-29009d3413ad","block_type":"box","text":"It will be assumed that the redemption is first of shares held for over one year or shares acquired","page_number":187,"box":{"x":117,"y":831,"width":722,"height":12}},{"id":"b03e5e3d-41ed-42b2-b99b-e91a6086615e","block_type":"box","text":"pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A","page_number":187,"box":{"x":117,"y":846,"width":745,"height":12}},{"id":"78fe073d-0774-486b-ab71-33718897e1a2","block_type":"box","text":"transfer of shares from a shareholder’s account to another account will be assumed to be made in the","page_number":187,"box":{"x":116,"y":862,"width":761,"height":9}},{"id":"7cdc9fc3-0967-4ddf-b358-979fba8195c8","block_type":"box","text":"same order as a redemption.","page_number":187,"box":{"x":116,"y":877,"width":220,"height":12}},{"id":"2652a937-eb3e-47f1-bddd-4ce354dbd61b","block_type":"box","text":"II-137","page_number":187,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"2c662053-2f31-4d5b-822e-b9c2deb7123b","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":187,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"54916068-cc16-4728-b2a1-d19f7404d258","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":188,"box":{"x":116,"y":87,"width":770,"height":12}},{"id":"07b42238-fda0-4fc0-81c2-f19dbb89e2a5","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods","page_number":188,"box":{"x":117,"y":102,"width":726,"height":12}},{"id":"bdd1d159-8bca-4849-89b4-db28c7e6ec33","block_type":"box","text":"indicated.","page_number":188,"box":{"x":117,"y":118,"width":75,"height":10}},{"id":"7cddc077-f3a3-423b-a4b0-7d724ecca8fb","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":188,"box":{"x":117,"y":149,"width":610,"height":12}},{"id":"9951f6f3-c6f2-460d-8bc1-2fd9dcc34851","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C","page_number":188,"box":{"x":116,"y":172,"width":725,"height":12}},{"id":"7aed5bdd-e2a9-4a30-a274-e5b0668af32c","block_type":"box","text":"Shares purchased through certain employer-sponsored retirement plans and fee-based programs","page_number":188,"box":{"x":116,"y":188,"width":729,"height":12}},{"id":"6bfc87bc-41e4-4969-8065-73a4ebf54fb0","block_type":"box","text":"previously approved by certain Funds and rollovers of current investments in the Fund through such","page_number":188,"box":{"x":117,"y":203,"width":745,"height":12}},{"id":"524dac39-a8d8-4b61-b2cf-74d3f3735315","block_type":"box","text":"plans; (2) exchanges described in “Exchange Privilege” below; (3) redemptions made in connection","page_number":188,"box":{"x":117,"y":219,"width":741,"height":12}},{"id":"bc259553-1289-439b-b729-a38d79717c8f","block_type":"box","text":"with minimum required distributions due to the shareholder reaching age 72 from IRA and 403(b)(7)","page_number":188,"box":{"x":116,"y":234,"width":744,"height":12}},{"id":"5d6d2c15-7b75-4342-8b3f-3ecfe0ed9e9f","block_type":"box","text":"accounts; (4) redemptions made with respect to certain retirement plans sponsored by the Fund,","page_number":188,"box":{"x":116,"y":250,"width":721,"height":12}},{"id":"9e2631f9-3355-46e1-9a02-31918d859cb9","block_type":"box","text":"BlackRock or its affiliates; (5) redemptions in connection with a shareholder’s death as long as the","page_number":188,"box":{"x":117,"y":265,"width":732,"height":12}},{"id":"aad826ee-a5ed-49e1-ac73-1f5708ad6e08","block_type":"box","text":"waiver request is made within one year of death or, if later, reasonably promptly following completion of","page_number":188,"box":{"x":116,"y":281,"width":772,"height":12}},{"id":"fa19774a-a2a5-48b4-a95d-57a5abec7a38","block_type":"box","text":"probate (including in connection with the distribution of account assets to a beneficiary of the decedent)","page_number":188,"box":{"x":117,"y":296,"width":771,"height":12}},{"id":"20abc9d8-c139-4aac-8a61-3c7d96a5a072","block_type":"box","text":"or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":188,"box":{"x":116,"y":312,"width":766,"height":12}},{"id":"149719c8-3328-416e-a88a-f8251eac0eef","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent","page_number":188,"box":{"x":117,"y":327,"width":770,"height":12}},{"id":"b08a5c16-8704-4e09-9350-a60cd52fa3be","block_type":"box","text":"to the purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low","page_number":188,"box":{"x":116,"y":343,"width":749,"height":12}},{"id":"3731d0f5-e4da-404c-9a76-776c8535ab3a","block_type":"box","text":"balances as described in “Redemption of Shares” below; (8) redemptions made pursuant to a","page_number":188,"box":{"x":117,"y":358,"width":698,"height":12}},{"id":"78fbc483-e123-4577-a897-6806779ddd08","block_type":"box","text":"systematic withdrawal plan, subject to the limitations set forth under “Systematic Withdrawal Plan”","page_number":188,"box":{"x":116,"y":374,"width":731,"height":12}},{"id":"68769da6-cbee-4b9f-8e96-e31dd631cce9","block_type":"box","text":"below; (9) redemptions related to the payment of BNY Mellon Investment Servicing Trust Company","page_number":188,"box":{"x":117,"y":389,"width":740,"height":12}},{"id":"52550fc3-95a2-48ac-b26f-f3ae3fe7fc52","block_type":"box","text":"custodial IRA fees; and (10) redemptions when a shareholder can demonstrate hardship, in the","page_number":188,"box":{"x":116,"y":405,"width":712,"height":12}},{"id":"db0c8257-9803-45ad-8173-677e3bab50b2","block_type":"box","text":"absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares acquired","page_number":188,"box":{"x":116,"y":420,"width":716,"height":12}},{"id":"a421356e-ef49-4159-af6f-b1fff77f4649","block_type":"box","text":"through the reinvestment of dividends or distributions.","page_number":188,"box":{"x":116,"y":436,"width":404,"height":12}},{"id":"5b2453ed-01d4-43cb-ac73-f5a295ffa61e","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain","page_number":188,"box":{"x":117,"y":467,"width":756,"height":12}},{"id":"23554b62-e0e0-450a-950d-e0451b99ba9e","block_type":"box","text":"financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in","page_number":188,"box":{"x":116,"y":482,"width":746,"height":12}},{"id":"fa49d32d-5fb4-4a4a-ab1a-3b82230b6fe6","block_type":"box","text":"the Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":188,"box":{"x":116,"y":498,"width":662,"height":12}},{"id":"87fa26ed-53c6-43f1-8801-5a20f8ed033c","block_type":"box","text":"Class R Shares","page_number":188,"box":{"x":116,"y":529,"width":127,"height":9}},{"id":"cec3e9bf-f941-44f0-b708-cb033b6b3eba","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R","page_number":188,"box":{"x":117,"y":552,"width":727,"height":12}},{"id":"7c40439d-c28a-4a18-8d78-a4214b40ec32","block_type":"box","text":"Shares are available only to certain employer-sponsored retirement plans. Class R Shares are not","page_number":188,"box":{"x":116,"y":568,"width":734,"height":12}},{"id":"992fb651-f27a-48e4-9537-c440dfb838f4","block_type":"box","text":"subject to an initial sales charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per","page_number":188,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"10fdf6f1-cd0e-43af-9316-8532039e232a","block_type":"box","text":"year and an ongoing service fee of 0.25% per year. Distribution fees are used to support the Fund’s","page_number":188,"box":{"x":116,"y":599,"width":745,"height":12}},{"id":"9442adc8-dbf9-4c65-9a73-d3b1b4dc76df","block_type":"box","text":"marketing and distribution efforts, such as compensating financial advisers and other financial","page_number":188,"box":{"x":117,"y":614,"width":700,"height":12}},{"id":"9e778ce9-7876-4a7e-9019-0eea25fe691e","block_type":"box","text":"intermediaries, advertising and promotion. Service fees are used to compensate securities dealers and","page_number":188,"box":{"x":117,"y":630,"width":768,"height":12}},{"id":"8bf23cca-097f-4a86-bf25-d516dafa9ab5","block_type":"box","text":"other financial intermediaries for service activities.","page_number":188,"box":{"x":116,"y":645,"width":376,"height":10}},{"id":"76b32e8d-8d28-4861-83e5-dac4bb4b1799","block_type":"box","text":"If Class R Shares are held over time, these","page_number":188,"box":{"x":117,"y":676,"width":319,"height":11}},{"id":"c7cd9eca-5652-43fb-b761-82a20ab46c2f","block_type":"box","text":"fees may exceed the maximum sales charge that an","page_number":188,"box":{"x":442,"y":676,"width":388,"height":12}},{"id":"2192a596-e21d-4f1f-9a02-fbc91791d4d1","block_type":"box","text":"investor would have paid as a shareholder of one of the other share classes.","page_number":188,"box":{"x":117,"y":692,"width":566,"height":12}},{"id":"bd8f1f68-7f6a-4666-a047-1bca2633fef6","block_type":"box","text":"Class K Shares","page_number":188,"box":{"x":116,"y":723,"width":122,"height":9}},{"id":"a1ef9063-a456-4661-b20d-f9f7c39f322d","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are","page_number":188,"box":{"x":117,"y":746,"width":761,"height":12}},{"id":"bf436f42-8849-4efb-b5ce-df712108c99d","block_type":"box","text":"available only to (i) certain employee benefit plans, such as health savings accounts, and certain","page_number":188,"box":{"x":116,"y":761,"width":716,"height":13}},{"id":"296ae33c-bf51-421a-ab11-8f3d18eb0022","block_type":"box","text":"employer-sponsored retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs)","page_number":188,"box":{"x":116,"y":777,"width":694,"height":12}},{"id":"436ef70b-25e6-4eff-9eee-98d7b533e365","block_type":"box","text":"(collectively, “Employer-Sponsored Retirement Plans”), (ii) collective trust funds, investment companies","page_number":188,"box":{"x":117,"y":792,"width":765,"height":13}},{"id":"0225314d-e215-4d87-ba2c-289b1555fc86","block_type":"box","text":"and other pooled investment vehicles, each of which may purchase shares of the Fund through a","page_number":188,"box":{"x":116,"y":808,"width":720,"height":12}},{"id":"bedd7f05-0e0a-43b4-b665-a697123a1333","block_type":"box","text":"financial intermediary that has entered into an agreement with the Distributor to purchase such shares,","page_number":188,"box":{"x":116,"y":823,"width":761,"height":13}},{"id":"de234840-ae0e-4d2b-8e22-a64092d0a723","block_type":"box","text":"(iii) “Institutional Investors,” which include but are not limited to, endowments, foundations, family","page_number":188,"box":{"x":117,"y":839,"width":722,"height":12}},{"id":"bf41bb7c-4b32-4eb0-9537-38b6a5e49195","block_type":"box","text":"offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":188,"box":{"x":116,"y":854,"width":710,"height":13}},{"id":"502c29bb-4094-423f-996f-1d0c4a03cf96","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a","page_number":188,"box":{"x":117,"y":870,"width":735,"height":12}},{"id":"1a700146-6e5b-405f-8d6e-0815beaf6e2b","block_type":"box","text":"II-138","page_number":188,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"453c8102-d386-4aad-88a3-c68873057299","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":188,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"2032e398-87e4-447d-8506-c0e56b706403","block_type":"box","text":"financial intermediary that has entered into an agreement with the Distributor to purchase such shares,","page_number":189,"box":{"x":116,"y":87,"width":767,"height":12}},{"id":"8de042db-e523-4732-96cf-5271a099171c","block_type":"box","text":"(iv) clients of private banks that purchase shares of the Fund through a financial intermediary that has","page_number":189,"box":{"x":117,"y":102,"width":759,"height":13}},{"id":"606a37be-9f9d-4c64-a455-193b3c9ac5fa","block_type":"box","text":"entered into an agreement with the Distributor to sell such shares; (v) fee-based advisory platforms of","page_number":189,"box":{"x":116,"y":118,"width":759,"height":12}},{"id":"fc6ef611-aac9-4ee4-bb05-847e667810c1","block_type":"box","text":"a financial intermediary that (a) has specifically acknowledged in a written agreement with the","page_number":189,"box":{"x":116,"y":134,"width":699,"height":12}},{"id":"2137eb2f-7a66-4e75-80e2-e1b2ad51b48c","block_type":"box","text":"Distributor and/or its affiliate(s) that the financial intermediary shall offer such shares to fee-based","page_number":189,"box":{"x":117,"y":149,"width":728,"height":12}},{"id":"11ecf80c-a0e6-470c-a69d-a50b4f3f24e7","block_type":"box","text":"advisory clients through an omnibus account held at the Fund or (b) transacts in the Fund’s shares","page_number":189,"box":{"x":116,"y":165,"width":737,"height":12}},{"id":"0869576b-7cbf-4192-84af-6ff6e7b5da75","block_type":"box","text":"through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":189,"box":{"x":116,"y":180,"width":750,"height":12}},{"id":"870f3968-7408-485f-8fa1-b36adaa9a521","block_type":"box","text":"met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have","page_number":189,"box":{"x":117,"y":196,"width":748,"height":12}},{"id":"a9862dc6-d257-4006-a37e-44f79a696b1e","block_type":"box","text":"continually held Class K Shares of the Fund or the respective Predecessor Fund in the same account","page_number":189,"box":{"x":116,"y":211,"width":757,"height":12}},{"id":"80e95ec8-8fd5-43b1-a2b7-658e74578bbf","block_type":"box","text":"since August 15, 2016. The agreement referenced in (iv) above shall appear in a supplemental","page_number":189,"box":{"x":116,"y":227,"width":709,"height":12}},{"id":"2be7cb33-3fbe-46ff-be8d-db4e8f23a8d6","block_type":"box","text":"agreement to any selling, sub-transfer agent, or distribution and marketing agreement.","page_number":189,"box":{"x":116,"y":242,"width":645,"height":12}},{"id":"d656429c-618b-415f-bc52-1c178ac63dfc","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":189,"box":{"x":117,"y":271,"width":762,"height":12}},{"id":"1f8b8398-aba2-4a55-8ae7-184e58a68ae9","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly","page_number":189,"box":{"x":117,"y":287,"width":738,"height":12}},{"id":"29189cea-0bcb-4ce0-b768-b14b04080bcc","block_type":"box","text":"with BlackRock. Eligible individuals who would like to convert existing holdings to Class K Shares must","page_number":189,"box":{"x":116,"y":302,"width":767,"height":12}},{"id":"0c17f77e-fcca-4ab4-8a98-2938d064d135","block_type":"box","text":"contact BlackRock.","page_number":189,"box":{"x":116,"y":318,"width":148,"height":9}},{"id":"c1113402-35ca-462f-ab58-53a85e240693","block_type":"box","text":"Class G Shares","page_number":189,"box":{"x":116,"y":347,"width":128,"height":10}},{"id":"889726cb-a6f6-40b4-9636-a39346f7ab34","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible","page_number":189,"box":{"x":117,"y":369,"width":767,"height":13}},{"id":"cdce7fb3-5125-4f08-a018-e9102ed55113","block_type":"box","text":"platforms are those where clients invest in the Fund through a single omnibus account in the name of a","page_number":189,"box":{"x":117,"y":385,"width":770,"height":12}},{"id":"b37867d3-3147-4ee2-b987-251ead7a9738","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. For clients investing","page_number":189,"box":{"x":116,"y":400,"width":720,"height":13}},{"id":"ae62d79f-1580-448d-b5b8-57fe7778d486","block_type":"box","text":"through such eligible platforms, the Fund does not impose investment minimums on any individual","page_number":189,"box":{"x":116,"y":416,"width":734,"height":12}},{"id":"d71dde4b-8251-4b21-9674-4244f6d72bbc","block_type":"box","text":"investor. Financial intermediaries may impose separate eligibility requirements.","page_number":189,"box":{"x":117,"y":432,"width":591,"height":12}},{"id":"010366b6-f5da-49d5-a17d-07324f13fe14","block_type":"box","text":"Service Shares","page_number":189,"box":{"x":116,"y":461,"width":125,"height":9}},{"id":"5a2c4e85-dd7e-49ed-ba62-1b8039ce412c","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain","page_number":189,"box":{"x":117,"y":483,"width":755,"height":12}},{"id":"c0b17a91-7e35-4027-98b1-adde21e5779b","block_type":"box","text":"financial institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain","page_number":189,"box":{"x":116,"y":499,"width":772,"height":12}},{"id":"831b98f9-69c2-4d71-8c2e-e49b550db4af","block_type":"box","text":"persons who were shareholders of the Compass Capital Group of Funds at the time of its combination","page_number":189,"box":{"x":117,"y":514,"width":762,"height":12}},{"id":"57c51ede-e9ef-4529-bae5-f86c1d2cf632","block_type":"box","text":"with The PNC","page_number":189,"box":{"x":116,"y":530,"width":103,"height":9}},{"id":"5266637c-2b57-4f3f-a4f1-f135493043da","block_type":"box","text":"®","page_number":189,"box":{"x":219,"y":529,"width":10,"height":7}},{"id":"2b3f3db4-c9f8-426c-9091-c409b42da09b","block_type":"box","text":"Fund in 1996; and (iii) participants in the Capital Directions","page_number":189,"box":{"x":229,"y":530,"width":440,"height":12}},{"id":"de518e0e-97fe-4de3-a236-2445d9f93598","block_type":"box","text":"SM","page_number":189,"box":{"x":670,"y":530,"width":15,"height":6}},{"id":"55153573-ebc6-4c78-8936-76474ba4ab3b","block_type":"box","text":"asset allocation program.","page_number":189,"box":{"x":686,"y":530,"width":197,"height":12}},{"id":"1ee7794c-8219-401d-be05-58cbd3fd9bac","block_type":"box","text":"Service Shares are not subject to an initial sales charge or a CDSC but are subject to an ongoing","page_number":189,"box":{"x":116,"y":545,"width":727,"height":12}},{"id":"6e52d60c-d754-447d-b0dc-1f9975559202","block_type":"box","text":"service fee as set forth in the applicable Fund’s Prospectus.","page_number":189,"box":{"x":116,"y":561,"width":449,"height":12}},{"id":"92c9e108-a651-4489-80a6-6ca94caf44f9","block_type":"box","text":"BlackRock Shares","page_number":189,"box":{"x":117,"y":590,"width":150,"height":9}},{"id":"7039ed9b-b3a0-4940-ad9f-1da9111c5efa","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares","page_number":189,"box":{"x":117,"y":612,"width":770,"height":12}},{"id":"2bda7b40-e1dd-436b-b86d-87b30b24345e","block_type":"box","text":"are offered without a sales charge to institutional and individual investors, registered investment","page_number":189,"box":{"x":116,"y":628,"width":715,"height":12}},{"id":"c36f9175-e34f-40b9-893d-0230236efb04","block_type":"box","text":"advisers and certain fee-based programs.","page_number":189,"box":{"x":116,"y":643,"width":315,"height":12}},{"id":"5e09f9d3-bc2f-4219-975b-349590deaa50","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":189,"box":{"x":117,"y":672,"width":382,"height":13}},{"id":"3fdeb21e-d985-4ee1-a235-e8417f2be022","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company","page_number":189,"box":{"x":117,"y":695,"width":764,"height":12}},{"id":"0ab7c491-eb89-4337-8cc1-af3cf7ff60b3","block_type":"box","text":"Act with respect to certain share classes that allows the Fund to pay distribution fees for the sale of its","page_number":189,"box":{"x":116,"y":710,"width":756,"height":12}},{"id":"d164ec67-2fc3-4636-8c40-f033d19e0043","block_type":"box","text":"shares and shareholder servicing fees for certain services provided to its shareholders.","page_number":189,"box":{"x":116,"y":726,"width":645,"height":12}},{"id":"b59749cb-1a54-457f-b486-ca88aba3debc","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant","page_number":189,"box":{"x":117,"y":755,"width":725,"height":12}},{"id":"3801f323-fdce-49d6-96ee-6c73343b3285","block_type":"box","text":"shareholder of BlackRock, fees for distribution and sales support services with respect to Investor A,","page_number":189,"box":{"x":116,"y":771,"width":744,"height":12}},{"id":"19b227bc-7c47-4281-b291-ab17459199ae","block_type":"box","text":"Investor A1, Investor C, Investor P, Service and Class R Shares. Currently, as described further below,","page_number":189,"box":{"x":117,"y":786,"width":763,"height":12}},{"id":"b3b32ca9-e278-4ca3-af16-f52d48b0d5d0","block_type":"box","text":"only Investor C and Class R Shares bear the expense of distribution fees under a Plan.","page_number":189,"box":{"x":116,"y":802,"width":646,"height":12}},{"id":"0dc79594-04f3-4902-bcb8-a4c9a4a2d27c","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers","page_number":189,"box":{"x":117,"y":831,"width":735,"height":12}},{"id":"c7a80bb4-d740-441e-859a-2202fd40b1f7","block_type":"box","text":"shares of each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales","page_number":189,"box":{"x":116,"y":846,"width":762,"height":12}},{"id":"16f446f8-16c3-4b94-9608-32de49c7b9e0","block_type":"box","text":"of the shares, but it is not obligated to sell any particular amount of shares. BRIL’s principal business","page_number":189,"box":{"x":116,"y":862,"width":752,"height":12}},{"id":"8c860bde-e6b8-464f-8e7d-8fb77eda1a6d","block_type":"box","text":"address is 50 Hudson Yards, New York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":189,"box":{"x":116,"y":877,"width":635,"height":12}},{"id":"534ee171-2443-405c-a4b4-a5b47a98682f","block_type":"box","text":"II-139","page_number":189,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"847baa0d-d897-4e4b-92ae-511890ef3530","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":189,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"10ebe575-06ab-465b-bf13-aa306d248229","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":190,"box":{"x":117,"y":87,"width":765,"height":12}},{"id":"5e367b0d-c772-4104-a09f-29c687093d4a","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions,","page_number":190,"box":{"x":116,"y":102,"width":744,"height":13}},{"id":"0844b0d2-ec98-4323-9bd9-3fd28be704ec","block_type":"box","text":"insurance companies, retirement plan record-keepers and other financial intermediaries (including","page_number":190,"box":{"x":117,"y":118,"width":731,"height":12}},{"id":"bb7445c8-47c6-4e47-8ec9-80dfe6c646f3","block_type":"box","text":"BlackRock, BRIL and their affiliates) (collectively, “Service Organizations”) for certain support services","page_number":190,"box":{"x":117,"y":134,"width":761,"height":12}},{"id":"ccca1203-33e2-44d4-ba0f-14d1f3f5526a","block_type":"box","text":"rendered by Service Organizations to their customers (“Customers”) who are the beneficial owners of","page_number":190,"box":{"x":117,"y":149,"width":756,"height":12}},{"id":"ce907463-c917-494a-9c08-eb331e675599","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Service and Class R Shares of a Fund. Such services","page_number":190,"box":{"x":117,"y":165,"width":755,"height":11}},{"id":"8931d5f3-1b52-43eb-94b0-a6b969e54578","block_type":"box","text":"are intended to supplement the services provided by the Fund’s Administrators and Transfer Agent to","page_number":190,"box":{"x":116,"y":180,"width":758,"height":12}},{"id":"ba90887f-5fbd-4b9c-942f-ffbfe8bf713c","block_type":"box","text":"the Fund’s shareholders of record.","page_number":190,"box":{"x":116,"y":196,"width":261,"height":9}},{"id":"79b40d31-4be8-4cea-9604-f9e84230282b","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services,","page_number":190,"box":{"x":116,"y":227,"width":728,"height":12}},{"id":"0f652d43-d291-4542-a0f7-e6474aa9aa87","block_type":"box","text":"which include, but are not limited to: (i) answering Customer inquiries regarding account status and","page_number":190,"box":{"x":116,"y":242,"width":740,"height":12}},{"id":"ecc951f9-eb0d-463c-89d8-ce18c8563631","block_type":"box","text":"history, the manner in which purchases, exchanges and redemptions or repurchases of shares may be","page_number":190,"box":{"x":117,"y":258,"width":767,"height":12}},{"id":"9459dbe4-adb2-47f1-83bd-922224d041d9","block_type":"box","text":"effected and certain other matters pertaining to the Customers’ investments; and (ii) assisting","page_number":190,"box":{"x":116,"y":273,"width":697,"height":12}},{"id":"17596b8e-5523-49c9-94f9-42d28849a2fe","block_type":"box","text":"Customers in designating and changing dividend options, account designations and addresses. The","page_number":190,"box":{"x":117,"y":289,"width":746,"height":12}},{"id":"1ad7a973-bada-4ee6-8cd9-3cb923e21aa0","block_type":"box","text":"shareholder servicing fees payable pursuant to the Plans are paid to compensate Service","page_number":190,"box":{"x":116,"y":304,"width":670,"height":12}},{"id":"52027f3a-be79-4737-b1f1-b4b1652e67ad","block_type":"box","text":"Organizations for the administration and servicing of shareholder accounts and are not costs which are","page_number":190,"box":{"x":116,"y":320,"width":769,"height":12}},{"id":"156df0d1-921d-419a-93e8-26c63d2fc4ed","block_type":"box","text":"primarily intended to result in the sale of the Fund’s shares.","page_number":190,"box":{"x":117,"y":335,"width":444,"height":12}},{"id":"02f1af15-d2ac-4839-aa56-7c88e489511e","block_type":"box","text":"Payments under the Plans are based on a percentage of average daily net assets attributable to the","page_number":190,"box":{"x":117,"y":366,"width":746,"height":12}},{"id":"b99616df-c76b-4ed0-9a94-008bed9f9c0a","block_type":"box","text":"shares in the applicable share class regardless of the amount of expenses incurred. As a result,","page_number":190,"box":{"x":116,"y":382,"width":716,"height":12}},{"id":"d477eb95-530f-416c-8290-07ae1b6f80ea","block_type":"box","text":"payments under the Plans may be more or less than expenses incurred in connection with providing","page_number":190,"box":{"x":117,"y":397,"width":747,"height":12}},{"id":"e5744981-c968-4bfc-8963-54553c1be68a","block_type":"box","text":"distribution and/or shareholder services with respect to the related class. Information with respect to","page_number":190,"box":{"x":116,"y":413,"width":746,"height":12}},{"id":"bdabb244-51f3-4c6b-a2d9-66dc11a29563","block_type":"box","text":"the payments under the Plans and expenses incurred in providing services with respect to the related","page_number":190,"box":{"x":116,"y":428,"width":758,"height":12}},{"id":"6f507dc0-94ef-41c7-a5f8-3b050239fba9","block_type":"box","text":"class is presented to the Directors for their consideration quarterly. Payments under the Plans consist","page_number":190,"box":{"x":116,"y":444,"width":759,"height":12}},{"id":"7d28b538-939b-4abf-aa49-d8106cb65220","block_type":"box","text":"of the shareholder servicing fees and the distribution fees. Expenses with respect to providing","page_number":190,"box":{"x":116,"y":459,"width":701,"height":12}},{"id":"0c7da709-c9b0-4826-a098-6eaff22b9e60","block_type":"box","text":"distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":190,"box":{"x":116,"y":475,"width":742,"height":12}},{"id":"b80529d2-5c30-4546-a983-bbad56e865b9","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction","page_number":190,"box":{"x":116,"y":490,"width":736,"height":12}},{"id":"90a3fa00-3a38-496b-b3e0-945d3cfe09c2","block_type":"box","text":"processing expenses, advertising, sales promotion and marketing expenses. Payments under the","page_number":190,"box":{"x":117,"y":506,"width":728,"height":12}},{"id":"8c18340b-7212-4509-88d8-fd0db936ca37","block_type":"box","text":"Plans with respect to one class will not be used to finance the expenditures of another class. Sales","page_number":190,"box":{"x":117,"y":521,"width":737,"height":12}},{"id":"ffe8369c-3615-458d-8e24-3c38d00820f5","block_type":"box","text":"personnel may receive different compensation for selling different classes of shares.","page_number":190,"box":{"x":117,"y":537,"width":629,"height":12}},{"id":"a965aed1-5cac-4871-96e6-0d91a3473a9b","block_type":"box","text":"Each Plan is subject to the provisions of Rule 12b-1 under the Investment Company Act. In their","page_number":190,"box":{"x":117,"y":568,"width":717,"height":12}},{"id":"0e663219-bc67-4ee7-abf1-fdfcc147d98a","block_type":"box","text":"consideration of a Plan, the Directors must consider all factors they deem relevant, including","page_number":190,"box":{"x":116,"y":583,"width":690,"height":12}},{"id":"b7da92ae-fb70-4d2b-a81b-c813904d8ed2","block_type":"box","text":"information as to the benefits of the Plan to the Fund and the related class of shareholders. In","page_number":190,"box":{"x":117,"y":599,"width":699,"height":9}},{"id":"6b25439e-167f-48aa-a0d8-aef641dd2f38","block_type":"box","text":"approving a Plan in accordance with Rule 12b-1, the non-interested Directors concluded that there is","page_number":190,"box":{"x":116,"y":614,"width":753,"height":12}},{"id":"f92ef51e-6c9b-4d70-b891-438c941f4168","block_type":"box","text":"reasonable likelihood that the Plan will benefit the Fund and its related class of shareholders. The Plan","page_number":190,"box":{"x":117,"y":630,"width":766,"height":9}},{"id":"d6e68f05-074f-44b4-96d9-4296931958dd","block_type":"box","text":"provides, among other things, that: (i) the Board of Directors shall receive quarterly reports regarding","page_number":190,"box":{"x":117,"y":645,"width":752,"height":12}},{"id":"e86fee28-f437-41c9-969a-f92013aa7b3c","block_type":"box","text":"the amounts expended under the Plan and the purposes for which such expenditures were made; (ii)","page_number":190,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"346c2aa9-da43-40e4-b285-51d4b78a781b","block_type":"box","text":"the Plan will continue in effect for so long as its continuance is approved at least annually by the Board","page_number":190,"box":{"x":116,"y":676,"width":761,"height":12}},{"id":"381d27f3-04fd-4810-b55b-af04c139a44a","block_type":"box","text":"of Directors, including the directors who are not “interested persons” of the Fund (as defined in the","page_number":190,"box":{"x":116,"y":692,"width":729,"height":12}},{"id":"a75d9ca3-74f6-4526-8cbb-b3d1bb87a666","block_type":"box","text":"Investment Company Act) and who have no direct or indirect financial interest in the operation of the","page_number":190,"box":{"x":117,"y":707,"width":743,"height":12}},{"id":"e4cbd2d2-3264-481b-863f-4627387c5358","block_type":"box","text":"Plan or any agreement entered into in connection with the Plan (the “12b-1 Directors”), acting in person","page_number":190,"box":{"x":117,"y":723,"width":765,"height":12}},{"id":"24b83d33-3fee-4050-8055-4e9e16f1bfc7","block_type":"box","text":"at a meeting called for said purpose in accordance with Rule 12b-1 under the Investment Company","page_number":190,"box":{"x":116,"y":738,"width":737,"height":12}},{"id":"c80b433c-42f5-43c6-8cbc-c9f0f6c7e139","block_type":"box","text":"Act; (iii) any material amendment thereto must be approved by the Board of Directors, including the","page_number":190,"box":{"x":116,"y":754,"width":737,"height":12}},{"id":"952f7143-428e-40be-aa3f-edb6f5d362dd","block_type":"box","text":"12b-1 Directors, acting in person at a meeting called for said purpose; (iv) any amendment to increase","page_number":190,"box":{"x":118,"y":769,"width":757,"height":12}},{"id":"16e84dd6-0f47-47ad-bbea-e243bb269991","block_type":"box","text":"materially the costs which any class of shares may bear for distribution services pursuant to the Plan","page_number":190,"box":{"x":117,"y":785,"width":745,"height":12}},{"id":"36a667bb-97aa-4eca-9adc-3c3eecc9f3bf","block_type":"box","text":"shall be effective only upon approval by a vote of a majority of the outstanding shares of such class","page_number":190,"box":{"x":116,"y":800,"width":736,"height":12}},{"id":"1dfa061d-034e-4872-90e8-1bcd2be70ae6","block_type":"box","text":"and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":190,"box":{"x":116,"y":816,"width":763,"height":12}},{"id":"9715fb28-7eb9-4996-86b3-dad44b8de684","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the","page_number":190,"box":{"x":116,"y":831,"width":744,"height":12}},{"id":"3d607e96-8fe2-4d4b-b2a4-32c2f59ca4c5","block_type":"box","text":"Fund’s Directors who are not “interested persons” of the Fund shall be committed to the discretion of","page_number":190,"box":{"x":117,"y":847,"width":750,"height":12}},{"id":"67a8ce49-9640-43a7-acf4-75f1689df5a3","block_type":"box","text":"the Fund’s non-interested Directors. Rule 12b-1 further requires that each Fund preserve copies of","page_number":190,"box":{"x":116,"y":862,"width":737,"height":12}},{"id":"c166a20b-6682-4f30-92e0-e76116a87a48","block_type":"box","text":"II-140","page_number":190,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"bca16dcf-db5d-4a5f-860f-b5c2eea51d3a","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":190,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"89a91a0a-4146-4830-98b8-591f3dde1847","block_type":"box","text":"each Plan and any report made pursuant to such Plan for a period of not less than six years from the","page_number":191,"box":{"x":116,"y":87,"width":753,"height":12}},{"id":"c9f0814a-b000-48b9-a712-54aeb1fc3a9c","block_type":"box","text":"date of the Plan or such report, the first two years in an easily accessible place.","page_number":191,"box":{"x":116,"y":102,"width":594,"height":13}},{"id":"d2a84bf7-2920-4055-a456-25c2f6e44e15","block_type":"box","text":"Each Plan is terminable as to any class of shares without penalty at any time by a vote of a majority of","page_number":191,"box":{"x":117,"y":132,"width":762,"height":13}},{"id":"8365f267-4b9f-4269-8f5c-6dfb65a81247","block_type":"box","text":"the 12b-1 Directors, or by vote of the holders of a majority of the shares of such class.","page_number":191,"box":{"x":116,"y":148,"width":643,"height":12}},{"id":"7260f278-d82b-4216-8a91-00f9b027cc26","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":191,"box":{"x":116,"y":178,"width":770,"height":12}},{"id":"5034b0c1-6ce7-4a10-8d99-c88d9b5bb094","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s","page_number":191,"box":{"x":117,"y":193,"width":759,"height":12}},{"id":"df4de6fd-d8fe-4406-b672-8db70aa66e46","block_type":"box","text":"most recent fiscal year.","page_number":191,"box":{"x":117,"y":209,"width":177,"height":12}},{"id":"14726d2e-3e2f-4497-af43-1da7827cbf2e","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":191,"box":{"x":117,"y":239,"width":439,"height":12}},{"id":"16fc65b6-885a-4884-988b-c688e6db9b74","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority","page_number":191,"box":{"x":116,"y":261,"width":745,"height":13}},{"id":"31464f21-94c3-4d43-aee0-0139c17b9638","block_type":"box","text":"(“FINRA”) imposes a limitation on certain asset-based sales charges such as the distribution fee borne","page_number":191,"box":{"x":117,"y":277,"width":765,"height":12}},{"id":"277bc2d1-17ac-4f20-a279-ab2e9cfca26f","block_type":"box","text":"by Class R Shares, and the distribution fee and the CDSC borne by the Investor C Shares. This","page_number":191,"box":{"x":117,"y":292,"width":715,"height":13}},{"id":"163c6fce-2e03-4012-8e45-3babdbd03bf2","block_type":"box","text":"limitation does not apply to the shareholder servicing fee. The maximum sales charge rule is applied","page_number":191,"box":{"x":117,"y":308,"width":748,"height":12}},{"id":"474ce0ba-5308-47eb-9da9-0fff346ed180","block_type":"box","text":"separately to each class and limits the aggregate of distribution fee payments and CDSCs payable by","page_number":191,"box":{"x":116,"y":323,"width":759,"height":13}},{"id":"07bbeefa-9180-445f-a891-1de958abb635","block_type":"box","text":"a Fund to (1) 6.25% of eligible gross sales of Investor C and Class R Shares, computed separately","page_number":191,"box":{"x":116,"y":339,"width":739,"height":12}},{"id":"de2c4c1c-14f6-4318-aa19-939bbe3aa703","block_type":"box","text":"(excluding shares issued pursuant to dividend reinvestments and exchanges), plus (2) interest on the","page_number":191,"box":{"x":117,"y":354,"width":756,"height":13}},{"id":"e2dd25ff-d1b6-4c85-b443-a93ec0665cf4","block_type":"box","text":"unpaid balance for the respective class, computed separately, at the prime rate plus 1% (the unpaid","page_number":191,"box":{"x":117,"y":370,"width":746,"height":12}},{"id":"5814e3e5-5e7e-49a2-b46b-1705492930a7","block_type":"box","text":"balance being the maximum amount payable minus amounts received from the payment of the","page_number":191,"box":{"x":117,"y":385,"width":708,"height":13}},{"id":"63f90711-26d0-45f2-8444-3844f992f67d","block_type":"box","text":"distribution fee and the CDSC). See “Information on Sales Charges and Distribution Related","page_number":191,"box":{"x":116,"y":401,"width":689,"height":12}},{"id":"dcee866f-032e-4805-b281-b9e9f4705711","block_type":"box","text":"Expenses” in Part I of each Fund’s SAI for comparative information as of your Fund’s most recent fiscal","page_number":191,"box":{"x":117,"y":416,"width":771,"height":13}},{"id":"aee7bcab-5363-4261-a064-b64bd005cff5","block_type":"box","text":"year end with respect to, if applicable, the Investor C and Class R Shares of your Fund.","page_number":191,"box":{"x":116,"y":432,"width":654,"height":12}},{"id":"3c8c4c19-cea8-4ada-bff2-fba5eb3e463d","block_type":"box","text":"Other Payments by the Fund","page_number":191,"box":{"x":116,"y":462,"width":234,"height":12}},{"id":"900cdf03-595d-40c3-a72b-d3181f30c273","block_type":"box","text":"In addition to shareholder servicing fees that a Fund may pay to a Service Organization pursuant to the","page_number":191,"box":{"x":117,"y":485,"width":770,"height":12}},{"id":"e0dac757-1de6-48f6-ad03-fb8bfd8d7f25","block_type":"box","text":"Plan and fees the Fund pays to its Transfer Agent, BlackRock, on behalf of a Fund, may enter into","page_number":191,"box":{"x":117,"y":500,"width":733,"height":12}},{"id":"6e086de9-0249-4e0d-8240-0ed193899f3d","block_type":"box","text":"non-Plan agreements with Service Organizations pursuant to which the Fund will pay a Service","page_number":191,"box":{"x":117,"y":516,"width":711,"height":12}},{"id":"4d132d62-8bd3-4b9d-8616-568569e79cd2","block_type":"box","text":"Organization for administrative, networking, recordkeeping, sub-transfer agency, sub-accounting and/","page_number":191,"box":{"x":116,"y":531,"width":754,"height":12}},{"id":"9da7c3bf-14c0-4b38-8aeb-acf65739a2b2","block_type":"box","text":"or shareholder services. These non-Plan payments are generally based on either (1) a percentage of","page_number":191,"box":{"x":116,"y":547,"width":755,"height":12}},{"id":"c9fd8174-c50b-4d28-b000-e3c9368dd992","block_type":"box","text":"the average daily net assets of Fund shareholders serviced by a Service Organization or (2) a fixed","page_number":191,"box":{"x":116,"y":562,"width":742,"height":12}},{"id":"47ab0475-ee8e-4f01-9ecd-236aa347830e","block_type":"box","text":"dollar amount for each account serviced by a Service Organization. The aggregate amount of these","page_number":191,"box":{"x":116,"y":578,"width":745,"height":12}},{"id":"592c1e22-ce21-4f62-97b2-6e9e7f97466b","block_type":"box","text":"payments may be substantial.","page_number":191,"box":{"x":117,"y":593,"width":226,"height":12}},{"id":"af694f1f-3d17-4a80-9819-8c0a04047870","block_type":"box","text":"Additional Payments by BlackRock","page_number":191,"box":{"x":116,"y":623,"width":286,"height":12}},{"id":"fa41a033-a121-49ff-9d69-6baf3c5fb110","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively","page_number":191,"box":{"x":117,"y":646,"width":707,"height":12}},{"id":"65264cf1-e936-4d0b-8756-bbc49da61f68","block_type":"box","text":"as “BlackRock”) may compensate Service Organizations for the sale and distribution of shares of a","page_number":191,"box":{"x":116,"y":661,"width":734,"height":12}},{"id":"45d486b5-28ee-4767-8944-f23df74fae4f","block_type":"box","text":"Fund, for services to a Fund and its shareholders and/or for data provision or technology support. A","page_number":191,"box":{"x":117,"y":677,"width":738,"height":12}},{"id":"4be959a9-9504-407d-862a-7ecb8d2ed422","block_type":"box","text":"Service Organization may perform these obligations itself or may arrange for a third party to perform","page_number":191,"box":{"x":116,"y":692,"width":743,"height":12}},{"id":"47e49cf2-b98c-4ec6-a6e5-a988c2083802","block_type":"box","text":"them. These payments, which are not made pursuant to a Plan or otherwise paid by a Fund, are","page_number":191,"box":{"x":116,"y":708,"width":714,"height":12}},{"id":"c5a1e3a3-c59c-48b3-b06e-cc756e539599","block_type":"box","text":"referred to as “Additional Payments” herein.","page_number":191,"box":{"x":117,"y":723,"width":323,"height":12}},{"id":"4a37e8c2-2031-4b6f-a4ff-ec19b6b7c60f","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly","page_number":191,"box":{"x":116,"y":753,"width":737,"height":12}},{"id":"77aa6796-afd2-4b85-a833-1494f020692c","block_type":"box","text":"from fees paid by a Fund to BlackRock for various services, such as investment advisory services).","page_number":191,"box":{"x":116,"y":769,"width":735,"height":12}},{"id":"dbcc2a5d-ad7a-4e7e-b482-ed333df82b3e","block_type":"box","text":"These payments are not an additional charge to a Fund or its shareholders and do not change the","page_number":191,"box":{"x":116,"y":784,"width":728,"height":12}},{"id":"cddbb05d-c3b5-4dd1-a28e-2464cdb5834c","block_type":"box","text":"price paid by shareholders for the purchase of a Fund’s shares or the amount a Fund receives as","page_number":191,"box":{"x":117,"y":800,"width":720,"height":12}},{"id":"8c75b73d-9d09-4598-a8d8-52bf97e5cf69","block_type":"box","text":"proceeds from such purchases. Additional Payments made to Service Organizations are in addition to","page_number":191,"box":{"x":117,"y":815,"width":755,"height":12}},{"id":"2966c965-cfb8-4235-9b9f-8d993645b786","block_type":"box","text":"any distribution or shareholder servicing fees paid under any Plan of any Fund, any sales charges,","page_number":191,"box":{"x":116,"y":831,"width":736,"height":12}},{"id":"db606ee5-e93a-4adc-be18-2d5cb7fb9ea6","block_type":"box","text":"commissions or other concessions described in the Prospectuses or this SAI, and any administrative,","page_number":191,"box":{"x":116,"y":846,"width":757,"height":12}},{"id":"6f440938-c34e-4a16-a2a2-47a005f7bc9e","block_type":"box","text":"networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant","page_number":191,"box":{"x":117,"y":862,"width":754,"height":12}},{"id":"e48cb98a-6298-437f-b9c3-e2881769a9e4","block_type":"box","text":"to applicable FINRA regulations, the details of certain of these payments, including the Service","page_number":191,"box":{"x":116,"y":877,"width":708,"height":12}},{"id":"58d1ec40-515e-4ca1-81fe-a377faa038d8","block_type":"box","text":"II-141","page_number":191,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"9d03d7d4-c649-4479-8a6f-95a8113a4a9c","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":191,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"415861b0-6291-490f-ba81-50f5d13d42f4","block_type":"box","text":"Organizations receiving such payments in connection with the sale and distribution of Fund shares, are","page_number":192,"box":{"x":116,"y":87,"width":770,"height":12}},{"id":"7ac6eb7c-63da-4490-b425-a74c8526ef52","block_type":"box","text":"required to be disclosed. While FINRA regulations limit the sales charges that shareholders may bear,","page_number":192,"box":{"x":117,"y":103,"width":761,"height":12}},{"id":"6117366f-8db6-45aa-b9d6-0b4f71e25c2f","block_type":"box","text":"there are no limits with regard to the amounts that BlackRock may pay out of its own assets.","page_number":192,"box":{"x":116,"y":118,"width":690,"height":12}},{"id":"a0e09948-2cf6-4cd4-8414-f64bc30d1cda","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of","page_number":192,"box":{"x":116,"y":146,"width":695,"height":12}},{"id":"118defcb-26ea-4675-a10a-83b575a4b3b2","block_type":"box","text":"Customer accounts maintained by a Service Organization, may be based on a percentage of the value","page_number":192,"box":{"x":117,"y":162,"width":766,"height":12}},{"id":"e3184602-27f9-4027-a9a9-113059bccb0c","block_type":"box","text":"of shares sold to, or held by, Customers of the Service Organization involved, or may be calculated on","page_number":192,"box":{"x":116,"y":177,"width":764,"height":12}},{"id":"0d8915e7-155a-4e41-ac22-f89a0a0c3a1f","block_type":"box","text":"another basis.","page_number":192,"box":{"x":116,"y":193,"width":110,"height":9}},{"id":"d3d5cff7-ab5d-4074-b15e-1883662e973e","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis.","page_number":192,"box":{"x":117,"y":221,"width":730,"height":12}},{"id":"d0344ff6-64ea-49d4-899a-24027169ad6e","block_type":"box","text":"Additional Payments may be different for different Service Organizations, and some Service","page_number":192,"box":{"x":116,"y":237,"width":687,"height":12}},{"id":"57e09133-3c0d-4894-9078-5aa1c6d3b002","block_type":"box","text":"Organizations may be paid pursuant to more than one of the calculations described above. Not all","page_number":192,"box":{"x":116,"y":252,"width":731,"height":12}},{"id":"f7976be8-e892-49a6-a035-83db423f2bf5","block_type":"box","text":"Service Organizations receive Additional Payments. Sales-based payments primarily create incentives","page_number":192,"box":{"x":116,"y":268,"width":766,"height":12}},{"id":"6bf200b5-0b35-493e-9027-01131dbbe9f9","block_type":"box","text":"to make new sales of shares of the Fund, and asset-based payments primarily create incentives to","page_number":192,"box":{"x":116,"y":283,"width":737,"height":12}},{"id":"ddc38fd8-98c6-4b56-845d-6967670cc926","block_type":"box","text":"retain previously sold shares of the Fund. The level of payments made to these Service Organizations","page_number":192,"box":{"x":117,"y":299,"width":761,"height":12}},{"id":"ca8cdc68-e16a-4acf-a222-40a2c545d941","block_type":"box","text":"in any year will vary and may be limited to specific Funds or share classes. In certain cases, these","page_number":192,"box":{"x":117,"y":314,"width":732,"height":12}},{"id":"20a7041c-dcc1-41e6-9098-59466199110c","block_type":"box","text":"payments may be subject to certain minimum payment levels.","page_number":192,"box":{"x":117,"y":330,"width":463,"height":12}},{"id":"574983f4-352b-4d36-937f-650290b2b151","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be","page_number":192,"box":{"x":116,"y":358,"width":743,"height":12}},{"id":"dbaa7ab9-4090-4ec3-9d87-8b41981582ba","block_type":"box","text":"significant to certain Service Organizations. The categories of Additional Payments listed below are not","page_number":192,"box":{"x":116,"y":374,"width":769,"height":12}},{"id":"0e198265-8fdb-47f0-ab52-43cc6b310cde","block_type":"box","text":"mutually exclusive. The same Service Organization, or one or more of its affiliates, may receive","page_number":192,"box":{"x":117,"y":389,"width":712,"height":12}},{"id":"6973b02a-73e8-4f23-bb5c-5a5f4250d238","block_type":"box","text":"payments under more than one category of Additional Payments. Such payments may be different for","page_number":192,"box":{"x":117,"y":405,"width":759,"height":12}},{"id":"42d902cb-3d81-45de-9d01-8551d664baaf","block_type":"box","text":"different Service Organizations and for different types of Funds.","page_number":192,"box":{"x":116,"y":420,"width":477,"height":12}},{"id":"9feb4c8d-0622-4248-ab70-1a752e4c3997","block_type":"box","text":"A. Distribution and Marketing Support","page_number":192,"box":{"x":149,"y":448,"width":285,"height":13}},{"id":"741047f0-55b0-4d8b-b0c8-665c0c410aa5","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities.","page_number":192,"box":{"x":116,"y":470,"width":728,"height":12}},{"id":"0894cf46-86a8-40e9-916d-78070923b6fe","block_type":"box","text":"These payments may take the form of, among other things, “due diligence” payments for a Service","page_number":192,"box":{"x":116,"y":486,"width":737,"height":12}},{"id":"e5c49eaf-4b07-4136-8a5a-805b94d62c36","block_type":"box","text":"Organization’s examination of a Fund; payments for providing extra employee training and information","page_number":192,"box":{"x":116,"y":501,"width":763,"height":13}},{"id":"f4a3c9f0-4a21-4f65-b5fa-f985b0aaef6d","block_type":"box","text":"relating to a Fund; fees for access (in some cases on a preferential basis) to the Service Organization’s","page_number":192,"box":{"x":117,"y":517,"width":771,"height":12}},{"id":"6c0c9d48-eca2-417b-9fe0-01523bc66e2e","block_type":"box","text":"registered representatives, salespersons or other personnel, including at sales meetings and","page_number":192,"box":{"x":117,"y":533,"width":692,"height":12}},{"id":"2b0374f8-a2d0-4a9d-b9c5-57180123ae01","block_type":"box","text":"conferences; “shelf space” payments for placing the Fund on the Service Organization’s platform(s);","page_number":192,"box":{"x":116,"y":548,"width":747,"height":12}},{"id":"6e4a6319-2aaa-476d-a332-877fa349f3dc","block_type":"box","text":"“listing” fees for the placing of the Fund on a dealer’s list (which may be a preferred or recommended","page_number":192,"box":{"x":116,"y":563,"width":754,"height":13}},{"id":"672f5757-a1af-46e4-8fe8-9282766ca911","block_type":"box","text":"list) of mutual funds available for purchase by its Customers or in certain sales programs from time to","page_number":192,"box":{"x":117,"y":579,"width":755,"height":12}},{"id":"4a8d4b4d-3ab7-4652-91eb-a7d610102e97","block_type":"box","text":"time; fees for providing assistance in promoting the sale of the Fund’s shares (which may include","page_number":192,"box":{"x":116,"y":594,"width":725,"height":13}},{"id":"3f735641-57a5-4a98-a70f-a1f71301636c","block_type":"box","text":"promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":192,"box":{"x":117,"y":610,"width":761,"height":12}},{"id":"81ae03e5-da34-4e91-a71f-101d24b4da4d","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of","page_number":192,"box":{"x":116,"y":625,"width":728,"height":13}},{"id":"95ea95f2-18d0-420a-ac24-3c9551d66b9c","block_type":"box","text":"share balances; transaction fees (also referred to as “ticket charges”); and payments for infrastructure","page_number":192,"box":{"x":116,"y":641,"width":761,"height":12}},{"id":"533b71f7-ea05-4983-9b32-0880fa41976e","block_type":"box","text":"support. These payments normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by","page_number":192,"box":{"x":116,"y":656,"width":757,"height":13}},{"id":"94dab23c-508c-4a58-94fb-d0523f9123c2","block_type":"box","text":"that Service Organization, and (b) 0.21% of the assets attributable to that Service Organization","page_number":192,"box":{"x":116,"y":672,"width":703,"height":12}},{"id":"72fb1d25-e682-4edf-97c6-68b79963c49f","block_type":"box","text":"invested in a Fund.","page_number":192,"box":{"x":117,"y":688,"width":139,"height":9}},{"id":"784eab00-a3a9-423f-8b0c-f3f171570bc7","block_type":"box","text":"B. Shareholder Services","page_number":192,"box":{"x":150,"y":716,"width":181,"height":9}},{"id":"58a310a9-1791-48ca-bbd9-a00e61262de4","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In","page_number":192,"box":{"x":117,"y":738,"width":742,"height":12}},{"id":"611c44d6-4b2f-43b3-9f4b-c62dcb17a6bd","block_type":"box","text":"these situations, a Fund may not maintain accounts in the name of the Customers and Service","page_number":192,"box":{"x":116,"y":753,"width":702,"height":12}},{"id":"279f9191-866e-493e-b6d6-8c9028470760","block_type":"box","text":"Organizations may perform some of the functions for these Customers’ accounts that the Transfer","page_number":192,"box":{"x":116,"y":769,"width":728,"height":12}},{"id":"beac0bac-e0ec-45f0-a4dd-0d70908aef80","block_type":"box","text":"Agent would have performed if the accounts had been in the Customers’ names on the Fund’s books.","page_number":192,"box":{"x":116,"y":784,"width":753,"height":12}},{"id":"c394850a-92a2-44d0-8703-f6c5b4596587","block_type":"box","text":"Such services include sub-accounting services, shareholder servicing and transaction processing","page_number":192,"box":{"x":116,"y":800,"width":722,"height":12}},{"id":"76e501c6-a1dd-41ee-a4c8-fbab2b86f3b4","block_type":"box","text":"services and are sometimes referred to as “recordkeeping,” “sub-transfer agency,” “sub-accounting,”","page_number":192,"box":{"x":116,"y":815,"width":745,"height":12}},{"id":"934d3ac1-7b6d-49c6-8c8d-e21bbb9917b0","block_type":"box","text":"“networking” and/or “administrative” services. Additional Payments may exceed amounts that would be","page_number":192,"box":{"x":116,"y":831,"width":768,"height":12}},{"id":"88c16ca8-7b96-4036-b215-aed5e912c14f","block_type":"box","text":"earned on these assets by the Transfer Agent for the performance of these or similar services. These","page_number":192,"box":{"x":116,"y":846,"width":758,"height":12}},{"id":"9720615c-7420-4f81-8c04-9ae11111e79f","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing","page_number":192,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"81b626d8-8457-4496-b1db-b41f25415c5f","block_type":"box","text":"and transaction processing fees paid by a Fund, as applicable.","page_number":192,"box":{"x":116,"y":877,"width":470,"height":12}},{"id":"87850e56-3808-4d03-9d33-b0833ed8a452","block_type":"box","text":"II-142","page_number":192,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"8b0a0b07-541a-48a9-82ef-7339deeb6036","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":192,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"095bf66e-e152-4a21-aea7-e267ab0edbf8","block_type":"box","text":"C. 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Such Additional Payments are generally made as a fixed dollar","page_number":193,"box":{"x":116,"y":140,"width":728,"height":12}},{"id":"bff5ceb7-ff52-4b02-b8a7-8472014a0ab9","block_type":"box","text":"amount, and not based on assets or sales.","page_number":193,"box":{"x":116,"y":155,"width":322,"height":11}},{"id":"a7c294ab-34bc-4279-855a-059d4b17e294","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":193,"box":{"x":150,"y":183,"width":427,"height":12}},{"id":"7cc4e237-014d-4ada-ae66-80c50c4fa385","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the","page_number":193,"box":{"x":116,"y":205,"width":746,"height":12}},{"id":"25a1cf30-4004-45c5-aa58-cb8d68b95336","block_type":"box","text":"Service Organization’s affiliates, may be receiving one or more types of Additional Payments. This list","page_number":193,"box":{"x":116,"y":220,"width":759,"height":12}},{"id":"e9dfc6c1-53bc-4ec7-9c98-2b1bf9e30364","block_type":"box","text":"may change over time, and BlackRock may pay Service Organizations or their affiliates additional","page_number":193,"box":{"x":117,"y":236,"width":729,"height":12}},{"id":"c993c955-4c2c-4a1a-a674-73a6cc5e1a7c","block_type":"box","text":"types of Additional Payments in the future. Please contact your Service Organization to determine","page_number":193,"box":{"x":116,"y":251,"width":731,"height":12}},{"id":"986dddfe-6f9d-48cd-858a-7faf8b866686","block_type":"box","text":"whether it or its affiliate currently may be receiving such payments and to obtain further information","page_number":193,"box":{"x":116,"y":267,"width":739,"height":12}},{"id":"63c06887-0739-4153-abf6-9fbe139eee5f","block_type":"box","text":"regarding any such payments.","page_number":193,"box":{"x":117,"y":282,"width":229,"height":12}},{"id":"89773f7f-6476-4114-b37c-9960938d2ad2","block_type":"box","text":"&Partners","page_number":193,"box":{"x":116,"y":304,"width":79,"height":10}},{"id":"4e231c07-7759-4ceb-8734-132e19aa1f06","block_type":"box","text":"AccuTech Systems Corporation","page_number":193,"box":{"x":116,"y":320,"width":241,"height":12}},{"id":"46297da3-bae9-4076-8669-38a27f7cfc7a","block_type":"box","text":"ADP Broker-Dealer, 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In an in-kind redemption, a pro rata portion of a Fund’s portfolio holdings will generally be","page_number":197,"box":{"x":116,"y":180,"width":730,"height":12}},{"id":"9b23f7b6-d2ed-457d-8b73-ce5691c72694","block_type":"box","text":"distributed to the redeeming shareholder, but an Index Fund may, under certain circumstances, deviate","page_number":197,"box":{"x":116,"y":196,"width":772,"height":12}},{"id":"1c81015f-87d8-4d40-a28e-de1b1cad5d8b","block_type":"box","text":"from pro rata redemption if the securities and other assets to be distributed are deemed to be a fair","page_number":197,"box":{"x":116,"y":211,"width":739,"height":12}},{"id":"9c312ba4-c047-40ec-8a43-41889804d480","block_type":"box","text":"representation of portfolio holdings and the interests of the remaining shareholders in the Index Fund","page_number":197,"box":{"x":117,"y":227,"width":753,"height":12}},{"id":"a2623798-e0c9-47c1-bf43-084b9d912771","block_type":"box","text":"are not diluted. Each Fund has elected, however, to be governed by Rule 18f-1 under the Investment","page_number":197,"box":{"x":116,"y":242,"width":755,"height":12}},{"id":"57f52e04-5d12-4ac4-8982-1250d5bc1b84","block_type":"box","text":"Company Act so that the Fund is obligated to redeem its shares solely in cash up to the lesser of","page_number":197,"box":{"x":117,"y":258,"width":722,"height":12}},{"id":"3f3ffc00-8da3-4a51-b322-2498b64fe679","block_type":"box","text":"$250,000 or 1% of its NAV during any 90-day period for any shareholder of the Fund. The redemption","page_number":197,"box":{"x":116,"y":272,"width":761,"height":13}},{"id":"f76c9253-3479-407c-affd-2335c89c00b6","block_type":"box","text":"price is the NAV per share next determined after the initial receipt of proper notice of redemption. The","page_number":197,"box":{"x":117,"y":289,"width":758,"height":12}},{"id":"2c895168-96be-412e-943d-739dde0687e4","block_type":"box","text":"value of shares of each Fund at the time of redemption may be more or less than your cost at the time","page_number":197,"box":{"x":116,"y":304,"width":764,"height":12}},{"id":"76722ac5-610b-4f66-8f50-718ddc1deef4","block_type":"box","text":"of purchase, depending in part on the market value of the securities held by the Fund at such time.","page_number":197,"box":{"x":116,"y":320,"width":737,"height":12}},{"id":"14455a14-5c3e-4155-9d3b-4a2f57e1fa5a","block_type":"box","text":"Except for any CDSC that may be applicable, there will be no redemption charge if your redemption","page_number":197,"box":{"x":117,"y":335,"width":743,"height":12}},{"id":"1f2a4c4e-622a-4978-9f90-2ca3fd86cf77","block_type":"box","text":"request is sent directly to the Transfer Agent. If you are liquidating your holdings you will receive all","page_number":197,"box":{"x":117,"y":351,"width":739,"height":12}},{"id":"8ae665d1-58dc-4158-9b2a-4569e568559b","block_type":"box","text":"dividends reinvested through the date of redemption.","page_number":197,"box":{"x":116,"y":366,"width":397,"height":12}},{"id":"a9bfd5d1-c54a-4e6d-a352-be382effa88b","block_type":"box","text":"The right to redeem shares may be suspended or payment upon redemption may be delayed for more","page_number":197,"box":{"x":116,"y":397,"width":764,"height":12}},{"id":"a6a45626-e0b1-429d-9412-835410b281df","block_type":"box","text":"than seven days only (i) for any period during which trading on the NYSE is restricted as determined by","page_number":197,"box":{"x":116,"y":413,"width":772,"height":12}},{"id":"de3c3550-38e2-4329-8016-2611eeaa181a","block_type":"box","text":"the Commission or during which the NYSE is closed (other than customary weekend and holiday","page_number":197,"box":{"x":116,"y":428,"width":724,"height":12}},{"id":"8b15c764-abef-480e-b9e9-c7ab028a5c68","block_type":"box","text":"closings), (ii) for any period during which an emergency exists, as defined by the Commission, as a","page_number":197,"box":{"x":116,"y":444,"width":741,"height":12}},{"id":"9d06f82c-6d9e-4d79-b20c-6b5ba36d0724","block_type":"box","text":"result of which disposal of portfolio securities or determination of the NAV of a Fund is not reasonably","page_number":197,"box":{"x":117,"y":459,"width":757,"height":12}},{"id":"26aa7828-fcb9-49f6-a1d2-47a931d0d8c8","block_type":"box","text":"practicable, or (iii) for such other periods as the Commission may by order permit for the protection of","page_number":197,"box":{"x":117,"y":475,"width":756,"height":12}},{"id":"c086c69f-4856-499c-9541-73a2ff2e3c4e","block_type":"box","text":"shareholders of the Fund. (A Fund may also suspend or postpone the recordation of the transfer of its","page_number":197,"box":{"x":116,"y":490,"width":761,"height":12}},{"id":"a3cfd5af-c481-4616-83f6-4db1cade9e46","block_type":"box","text":"shares upon the occurrence of any of the foregoing conditions.)","page_number":197,"box":{"x":116,"y":506,"width":476,"height":12}},{"id":"ae67dfcb-b63a-4757-96b4-4830d1920d3b","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint","page_number":197,"box":{"x":117,"y":537,"width":703,"height":12}},{"id":"71adec4c-3198-4052-a087-45326cc74a62","block_type":"box","text":"committed line of credit with a syndicate of banks that is intended to provide the Fund with a temporary","page_number":197,"box":{"x":116,"y":552,"width":768,"height":12}},{"id":"7949dc24-e484-47c5-b0a1-de541e59f41e","block_type":"box","text":"source of cash to be used to meet redemption requests from shareholders in extraordinary or","page_number":197,"box":{"x":116,"y":568,"width":697,"height":12}},{"id":"49dfdebb-dd81-4d01-9c34-a8676ca55a51","block_type":"box","text":"emergency circumstances.","page_number":197,"box":{"x":116,"y":583,"width":205,"height":12}},{"id":"c6497ba8-8be8-4b45-8153-0eea5f174d6e","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of","page_number":197,"box":{"x":117,"y":614,"width":766,"height":12}},{"id":"0e61ac52-79d0-4905-8320-ba781504d123","block_type":"box","text":"the failure of a shareholder to make full payment for shares purchased by the shareholder or to collect","page_number":197,"box":{"x":116,"y":630,"width":763,"height":12}},{"id":"dd3f8d15-5b5d-4d75-9d5f-23e605316c43","block_type":"box","text":"any charge relating to a transaction effected for the benefit of a shareholder. Each Fund reserves the","page_number":197,"box":{"x":116,"y":645,"width":754,"height":12}},{"id":"e0b4c6d9-a0c7-46ed-bef5-ca6000436db9","block_type":"box","text":"express right to redeem shares of the Fund involuntarily at any time if the Fund’s Board of Directors","page_number":197,"box":{"x":116,"y":661,"width":738,"height":12}},{"id":"49ab5256-666f-4854-8b20-d17a76a00633","block_type":"box","text":"determines, in its sole discretion, that failure to do so may have adverse consequences to the holders","page_number":197,"box":{"x":116,"y":676,"width":753,"height":12}},{"id":"3efde9ea-117c-4b61-8f62-00a166615a70","block_type":"box","text":"of shares in the Fund. Upon such redemption the holders of shares so redeemed shall have no further","page_number":197,"box":{"x":116,"y":692,"width":759,"height":12}},{"id":"c819c11a-f2f1-486d-bee0-58be22ce3144","block_type":"box","text":"right with respect thereto other than to receive payment of the redemption price.","page_number":197,"box":{"x":117,"y":707,"width":591,"height":12}},{"id":"c179f766-d664-4e3a-bf31-dfe3f8a42f4b","block_type":"box","text":"Redemption","page_number":197,"box":{"x":117,"y":738,"width":95,"height":12}},{"id":"5008eae5-4a2e-4abc-b1db-902622013a94","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":197,"box":{"x":117,"y":761,"width":504,"height":12}},{"id":"04111b11-87f9-4ca6-bad9-4b0d69cc113f","block_type":"box","text":"Redeem by Telephone","page_number":197,"box":{"x":117,"y":785,"width":177,"height":12}},{"id":"d899c459-1c6e-4926-a38b-e022d290c6c4","block_type":"box","text":": You may sell Investor Shares, excluding Investor P Shares, held at","page_number":197,"box":{"x":296,"y":785,"width":505,"height":12}},{"id":"758c8b99-387b-49fc-b342-43da4ce11f10","block_type":"box","text":"BlackRock by telephone request if certain conditions are met and if the amount being sold is less than","page_number":197,"box":{"x":117,"y":800,"width":754,"height":12}},{"id":"65439b01-7ac0-4683-8d2c-fa6549b01e19","block_type":"box","text":"(i) $100,000 for payments by check or (ii) $250,000 for payments through the Automated Clearing","page_number":197,"box":{"x":117,"y":815,"width":724,"height":13}},{"id":"ab2b49bb-ea1c-49f5-9af0-101a9dd97e98","block_type":"box","text":"House Network (“ACH”) or wire transfer. Certain redemption requests, such as those in excess of","page_number":197,"box":{"x":117,"y":831,"width":727,"height":12}},{"id":"6171174f-65c7-49ca-b95f-3df88a125b2d","block_type":"box","text":"these amounts, and those where (i) the Fund does not have verified banking information on file; or","page_number":197,"box":{"x":116,"y":847,"width":734,"height":12}},{"id":"82c683f4-bcaf-4aa5-9be3-355cc75b1472","block_type":"box","text":"(ii) the proceeds are not paid to the record owner at the record address, must be in writing with a","page_number":197,"box":{"x":117,"y":862,"width":720,"height":12}},{"id":"2d1f3101-ad3e-42d7-a8b5-cfe1d6033986","block_type":"box","text":"medallion signature guarantee provided by any “eligible guarantor institution” as defined in","page_number":197,"box":{"x":117,"y":878,"width":674,"height":12}},{"id":"0508cfaf-2ac7-40ec-9bbf-92ef73acad5d","block_type":"box","text":"II-147","page_number":197,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"d220b257-f0bd-4a48-a198-ea7fc621434d","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":197,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"edf52192-bebc-455f-9a60-bcd56273611c","block_type":"box","text":"Rule 17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and","page_number":198,"box":{"x":117,"y":87,"width":756,"height":12}},{"id":"580be675-a13e-419c-825b-849eb506a9ae","block_type":"box","text":"validity may be verified by the Transfer Agent through the use of industry publications. For Institutional","page_number":198,"box":{"x":116,"y":102,"width":763,"height":13}},{"id":"150c9498-1c1f-4006-8423-21afa6d5f5c7","block_type":"box","text":"Shares, certain redemption requests may require written instructions with a medallion signature","page_number":198,"box":{"x":116,"y":118,"width":713,"height":12}},{"id":"121bff59-3be2-4d71-aa99-90882a4a1cd4","block_type":"box","text":"guarantee. Call (800) 441-7762 for details. You can obtain a medallion signature guarantee stamp from","page_number":198,"box":{"x":116,"y":134,"width":772,"height":12}},{"id":"e6b5d0d4-0759-486d-8631-7fe19ddd64ac","block_type":"box","text":"a bank, securities dealer, securities broker, credit union, savings and loan association, national","page_number":198,"box":{"x":116,"y":149,"width":709,"height":12}},{"id":"55cfc975-76b5-40e7-80a8-5ad8e72ac486","block_type":"box","text":"securities exchange or registered securities association. The three recognized medallion programs are","page_number":198,"box":{"x":116,"y":165,"width":767,"height":12}},{"id":"54eda246-7d5e-4948-8957-ade03848cc4a","block_type":"box","text":"Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New York","page_number":198,"box":{"x":116,"y":180,"width":736,"height":12}},{"id":"a0194ae1-a33c-4f43-b3b7-7e78ab55f4f3","block_type":"box","text":"Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of","page_number":198,"box":{"x":116,"y":196,"width":727,"height":12}},{"id":"aaf5348e-ea1d-4262-9a26-1fcbba5d0b41","block_type":"box","text":"these programs will not be accepted. A notary public seal will not be acceptable. Generally, a properly","page_number":198,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"75787493-2c58-4ac0-af91-7d8765302fdb","block_type":"box","text":"signed written request with any required signature guarantee is all that is required for a redemption. In","page_number":198,"box":{"x":116,"y":227,"width":761,"height":12}},{"id":"438f3519-8ee2-4f98-a711-6fcb8bcadf22","block_type":"box","text":"some cases, however, other documents may be necessary. Additional documentary evidence of","page_number":198,"box":{"x":116,"y":242,"width":719,"height":12}},{"id":"a56330b7-6912-4716-b8ab-b16e27f77ed4","block_type":"box","text":"authority is required by the Transfer Agent in the event redemption is requested by a corporation,","page_number":198,"box":{"x":116,"y":258,"width":726,"height":12}},{"id":"eda2e412-61b1-4101-8966-e3104dc89a5a","block_type":"box","text":"partnership, trust, fiduciary, executor or administrator.","page_number":198,"box":{"x":117,"y":273,"width":402,"height":12}},{"id":"76af3858-de51-403e-b206-7539afa55c65","block_type":"box","text":"If you make a redemption request before a Fund has collected payment for the purchase of shares, the","page_number":198,"box":{"x":117,"y":304,"width":769,"height":12}},{"id":"dea1ab33-b246-418a-ade2-99e78d352206","block_type":"box","text":"Fund may delay mailing your proceeds. This delay will usually not exceed ten days. A Fund, its","page_number":198,"box":{"x":117,"y":320,"width":709,"height":12}},{"id":"00de4c64-46d7-4c7a-ba92-d799d9c5ebc9","block_type":"box","text":"Administrators and the Distributor will employ reasonable procedures to confirm that instructions","page_number":198,"box":{"x":116,"y":335,"width":719,"height":12}},{"id":"cfa38674-b410-4958-9859-cae3182eed9e","block_type":"box","text":"communicated by telephone are genuine. Telephone redemption requests will not be honored if: (i) the","page_number":198,"box":{"x":116,"y":351,"width":767,"height":12}},{"id":"4ce699ff-4705-4b1f-8e5f-5fc79d985676","block_type":"box","text":"accountholder is deceased, (ii) the proceeds are to be sent to someone other than the shareholder of","page_number":198,"box":{"x":116,"y":366,"width":756,"height":12}},{"id":"5eca59fe-a161-4f14-8e67-d8eccf1ac939","block_type":"box","text":"record, (iii) a Fund does not have verified information on file, (iv) the request is by an individual other","page_number":198,"box":{"x":117,"y":382,"width":749,"height":12}},{"id":"57f34772-bbdb-4c80-8466-5db2d973f79f","block_type":"box","text":"than the accountholder of record, (v) the account is held by joint tenants who are divorced, (vi) the","page_number":198,"box":{"x":116,"y":397,"width":733,"height":12}},{"id":"0a08eb6a-84e5-4b4f-9141-e5f266bb18c3","block_type":"box","text":"address on the account has changed within the last 30 days or share certificates have been issued on","page_number":198,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"172e384c-b70d-4929-a61f-e57b82258fdf","block_type":"box","text":"the account, or (vii) to protect against fraud, if the caller is unable to provide the account number, the","page_number":198,"box":{"x":116,"y":428,"width":752,"height":12}},{"id":"877fa3d3-8175-4c8b-a702-5b28e146ad85","block_type":"box","text":"name and address registered on the account and the social security number registered on the account.","page_number":198,"box":{"x":117,"y":444,"width":770,"height":12}},{"id":"bf0dbc15-6699-47dd-8c5e-d1bc1f511ce2","block_type":"box","text":"The Fund and its service providers will not be liable for any loss, liability, cost or expense for acting","page_number":198,"box":{"x":116,"y":459,"width":739,"height":12}},{"id":"e0e90142-973b-49fa-90b6-340a2eeb316b","block_type":"box","text":"upon telephone instructions that are reasonably believed to be genuine in accordance with such","page_number":198,"box":{"x":117,"y":475,"width":716,"height":12}},{"id":"fe5a94c2-5eb0-4260-bd0e-2163b4a23837","block_type":"box","text":"procedures. Before telephone requests will be honored, signature approval from all shareholders of","page_number":198,"box":{"x":117,"y":490,"width":741,"height":12}},{"id":"4b7071bd-6d6c-4435-8c2a-85cada6d8fd1","block_type":"box","text":"record on the account must be obtained. The Fund may refuse a telephone redemption request if it","page_number":198,"box":{"x":117,"y":506,"width":738,"height":12}},{"id":"ed78114e-0940-45c9-880b-b6194f430034","block_type":"box","text":"believes it is advisable to do so. During periods of substantial economic or market change, telephone","page_number":198,"box":{"x":117,"y":521,"width":754,"height":12}},{"id":"60d48ddc-c9eb-4a42-b649-a1cdd39f64f0","block_type":"box","text":"redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":198,"box":{"x":117,"y":537,"width":691,"height":12}},{"id":"e6af240e-b92d-41e1-8825-85714f532aaa","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day","page_number":198,"box":{"x":117,"y":568,"width":756,"height":12}},{"id":"576fc118-da76-417f-87be-a8094675e3f2","block_type":"box","text":"will be priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern","page_number":198,"box":{"x":116,"y":583,"width":764,"height":12}},{"id":"14c0f363-9146-4345-aa3b-89236b904278","block_type":"box","text":"time) on a business day, payment for redeemed Institutional Shares will normally be wired in Federal","page_number":198,"box":{"x":116,"y":599,"width":753,"height":12}},{"id":"bc79de9e-8241-485d-aa82-78235706f611","block_type":"box","text":"Funds on the next business day. If the Federal Reserve Bank of Philadelphia is not open on the","page_number":198,"box":{"x":117,"y":614,"width":713,"height":12}},{"id":"f7b8aed8-0e6f-43a6-9522-af8d71aec58d","block_type":"box","text":"business day following receipt of the redemption order, the redemption order will be accepted and","page_number":198,"box":{"x":117,"y":630,"width":729,"height":12}},{"id":"58ad62dc-eb20-44fc-9d7a-f8c9ae5de101","block_type":"box","text":"processed the next succeeding business day when the Federal Reserve Bank of Philadelphia is open,","page_number":198,"box":{"x":117,"y":645,"width":762,"height":12}},{"id":"69c625d0-c98a-42c4-9bcd-69083223651f","block_type":"box","text":"provided that the Fund’s custodian is also open for business.","page_number":198,"box":{"x":117,"y":661,"width":449,"height":12}},{"id":"0b2f9141-bef3-4f10-981d-8b7f04d5855e","block_type":"box","text":"Redeem by VRU","page_number":198,"box":{"x":117,"y":692,"width":127,"height":12}},{"id":"813d1906-2a76-4ac2-9f36-e9c19f3859a9","block_type":"box","text":": Investor class shares, excluding Investor P Shares, may also be redeemed by use","page_number":198,"box":{"x":247,"y":692,"width":620,"height":12}},{"id":"215f53cd-3b22-4037-b7c4-b0cefb7e9a7c","block_type":"box","text":"of a Fund’s automated voice response unit service (“VRU”). Payment for Investor class shares","page_number":198,"box":{"x":116,"y":707,"width":700,"height":12}},{"id":"eb5abcfb-23a3-4474-9afc-eddc1144a648","block_type":"box","text":"redeemed by VRU may be made for non-retirement accounts in amounts up to $25,000, either through","page_number":198,"box":{"x":117,"y":722,"width":761,"height":13}},{"id":"a1307ee3-34b5-404b-907d-6832cf62c9e3","block_type":"box","text":"check, ACH or wire.","page_number":198,"box":{"x":116,"y":738,"width":147,"height":11}},{"id":"03d02426-5791-4333-8526-eb8196fa4fad","block_type":"box","text":"Redeem by Internet:","page_number":198,"box":{"x":117,"y":769,"width":159,"height":12}},{"id":"1f1e34c3-6219-4e37-b922-f08f3d3d21c7","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging","page_number":198,"box":{"x":283,"y":769,"width":595,"height":12}},{"id":"c9ef84d8-1fa2-4dc9-8f26-1b9b3bffcab8","block_type":"box","text":"onto the BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent","page_number":198,"box":{"x":116,"y":785,"width":753,"height":12}},{"id":"7441f75e-d2cd-4a8d-b1aa-27aadcea3071","block_type":"box","text":"via check, ACH or wire to the bank account of record. Payment for shares redeemed by Internet may","page_number":198,"box":{"x":116,"y":800,"width":749,"height":12}},{"id":"257b0e4a-d9b9-45e8-8f9d-e90cab36b033","block_type":"box","text":"be made for non-retirement accounts up to $100,000 per account per day, either through check, ACH","page_number":198,"box":{"x":117,"y":815,"width":751,"height":13}},{"id":"b52a325f-be65-4209-9b50-5c9e058289b5","block_type":"box","text":"or wire. Different maximums may apply to certain institutional investors.","page_number":198,"box":{"x":116,"y":831,"width":535,"height":12}},{"id":"aa5f2f45-1c37-4c83-b4c1-2e54e8636c55","block_type":"box","text":"Redeem in Writing:","page_number":198,"box":{"x":117,"y":862,"width":157,"height":12}},{"id":"a8e1453e-0eab-47d1-87ae-d264f55f0ee7","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without","page_number":198,"box":{"x":275,"y":862,"width":599,"height":12}},{"id":"ee2c5904-fcdd-4ad0-8c9a-4a514d7bca98","block_type":"box","text":"charge by writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption","page_number":198,"box":{"x":116,"y":878,"width":761,"height":12}},{"id":"f5457011-fc4b-4069-90a3-fa3d346e9a4f","block_type":"box","text":"II-148","page_number":198,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"018da825-f0c5-4f55-9a28-6df50b02977b","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":198,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"22194c8b-5478-4d94-9e04-9be114da856a","block_type":"box","text":"requests delivered other than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn","page_number":199,"box":{"x":117,"y":87,"width":729,"height":12}},{"id":"d57b34d4-0fb6-454b-8128-10f40797fe94","block_type":"box","text":"Avenue, Suite 102, Pittsburgh, Pennsylvania 15222. If you hold share certificates issued by your Fund,","page_number":199,"box":{"x":116,"y":102,"width":768,"height":13}},{"id":"b94ec47f-81e8-43fa-9961-5be6dc14c0a6","block_type":"box","text":"the letter must be accompanied by certificates for the shares. All shareholders on the account must","page_number":199,"box":{"x":116,"y":118,"width":741,"height":12}},{"id":"5a553c3b-72c8-4169-9c1e-654d2412caae","block_type":"box","text":"sign the letter. A medallion signature guarantee will generally be required but may be waived in certain","page_number":199,"box":{"x":116,"y":134,"width":766,"height":12}},{"id":"74c59d2e-a30b-414f-89e5-cab8e5896acd","block_type":"box","text":"limited circumstances. You can obtain a medallion signature guarantee stamp from a bank, securities","page_number":199,"box":{"x":117,"y":149,"width":756,"height":12}},{"id":"4f744acc-d170-4e16-b148-cd8d55fbe444","block_type":"box","text":"dealer, securities broker, credit union, savings and loan association, national securities exchange or","page_number":199,"box":{"x":116,"y":165,"width":746,"height":12}},{"id":"1a138b22-acab-4965-b77c-674abb9b3fd5","block_type":"box","text":"registered securities association. A notary public seal will not be acceptable. If you hold stock","page_number":199,"box":{"x":117,"y":180,"width":696,"height":12}},{"id":"c0759498-27e5-4c11-9e18-d68279a7f16b","block_type":"box","text":"certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check,","page_number":199,"box":{"x":116,"y":196,"width":749,"height":12}},{"id":"7a12223e-25cd-4dfb-aec7-3462f410bd0d","block_type":"box","text":"ACH or wire to the bank account of record.","page_number":199,"box":{"x":116,"y":211,"width":323,"height":10}},{"id":"2ef9e193-f763-45fd-9da3-8d5d3aaad9e8","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock","page_number":199,"box":{"x":116,"y":239,"width":754,"height":12}},{"id":"86a0a490-bc4f-4f87-9fb4-d76b4c0e9c30","block_type":"box","text":"Shares may be made in the manner and amounts described in the Prospectuses.","page_number":199,"box":{"x":117,"y":254,"width":608,"height":13}},{"id":"93b661fb-ee4e-403d-8771-5a0bed937a07","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":199,"box":{"x":116,"y":282,"width":707,"height":12}},{"id":"cb87576e-e5dd-4725-b94a-862e51850008","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one","page_number":199,"box":{"x":117,"y":310,"width":740,"height":12}},{"id":"7686c688-37f2-470d-8aa9-5ee50246f24d","block_type":"box","text":"business day of receipt of the proper notice of redemption. A Fund may delay the mailing of a","page_number":199,"box":{"x":117,"y":326,"width":697,"height":12}},{"id":"eaecf860-4250-413b-b591-2fb981398f8f","block_type":"box","text":"redemption check until good payment (that is, cash, Federal funds or certified check drawn on a U.S.","page_number":199,"box":{"x":117,"y":341,"width":753,"height":12}},{"id":"e3e37482-9fb7-4f43-8a2d-3a2ecbd3d8b5","block_type":"box","text":"bank) has been collected for the purchase of Fund shares, which delay will usually not exceed 10","page_number":199,"box":{"x":117,"y":357,"width":726,"height":12}},{"id":"76aec934-6d0e-4752-8316-9fe385736d39","block_type":"box","text":"days. If your account is held directly with the Transfer Agent and contains a fractional share balance","page_number":199,"box":{"x":116,"y":372,"width":747,"height":12}},{"id":"eedd6401-36f8-45b9-8722-22782ea6dabc","block_type":"box","text":"following a redemption, the fractional share balance will be automatically redeemed by the Fund.","page_number":199,"box":{"x":116,"y":388,"width":722,"height":12}},{"id":"ceb7099c-7646-4605-8749-a2aabce2057b","block_type":"box","text":"Note on Low Balance Accounts.","page_number":199,"box":{"x":117,"y":416,"width":242,"height":9}},{"id":"4c3bb2b8-f09e-4544-b2e2-b7434d392a1a","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":199,"box":{"x":360,"y":416,"width":527,"height":12}},{"id":"86b70371-7d44-4072-9ed2-e3e6cff2c2e5","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account","page_number":199,"box":{"x":117,"y":430,"width":735,"height":13}},{"id":"6c222617-198a-46f4-a99d-f9e2a8a60dff","block_type":"box","text":"(“Fund Minimum”), and may redeem the shares in your account if the NAV of those shares in your","page_number":199,"box":{"x":117,"y":447,"width":731,"height":12}},{"id":"896fea8c-b1e7-44e7-930f-ccc125b7a31e","block_type":"box","text":"account falls below $500 for any reason, including market fluctuation.","page_number":199,"box":{"x":116,"y":461,"width":519,"height":13}},{"id":"b32c9de2-e3e7-4b84-9569-0e8bfa68176e","block_type":"box","text":"You will be notified that the value of your account is less than the Fund Minimum before the Fund","page_number":199,"box":{"x":116,"y":490,"width":727,"height":12}},{"id":"f284cef8-783d-4e42-b27e-4d37962e0337","block_type":"box","text":"makes any involuntary redemption. This notification will provide you with a 90 calendar day period to","page_number":199,"box":{"x":117,"y":506,"width":749,"height":12}},{"id":"b0cc4858-f9fe-4701-b56d-9eed82f4b21f","block_type":"box","text":"make an additional investment in order to bring the value of your account to at least $500 before the","page_number":199,"box":{"x":117,"y":520,"width":747,"height":13}},{"id":"0ecfeeaa-4ab6-45db-bbc9-4a7533d40d71","block_type":"box","text":"Fund makes an involuntary redemption. This involuntary redemption will not charge any deferred sales","page_number":199,"box":{"x":117,"y":537,"width":766,"height":12}},{"id":"e108056a-7147-4fc6-b82a-5b629d2ef89b","block_type":"box","text":"charge, and may not apply to accounts of certain employer-sponsored retirement plans (not including","page_number":199,"box":{"x":116,"y":552,"width":756,"height":12}},{"id":"017a407d-071d-45da-b7eb-1aeebf4345d4","block_type":"box","text":"IRAs), qualified state tuition plan (529 Plan) accounts, and select fee-based programs at your financial","page_number":199,"box":{"x":117,"y":568,"width":763,"height":12}},{"id":"2c8a04c9-74a0-49b5-9179-48f724dcbbae","block_type":"box","text":"intermediary.","page_number":199,"box":{"x":117,"y":583,"width":101,"height":12}},{"id":"5d6cb013-e164-4512-9394-e68212eed55b","block_type":"box","text":"Repurchase","page_number":199,"box":{"x":117,"y":611,"width":100,"height":12}},{"id":"ba325b36-3040-4eb4-81d8-a3f2bb1bc5bf","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers.","page_number":199,"box":{"x":116,"y":633,"width":729,"height":12}},{"id":"c94ff276-fc23-4cd8-9be5-3078299523ca","block_type":"box","text":"Shares will be priced at the NAV of the Fund next determined after receipt of the repurchase order by a","page_number":199,"box":{"x":116,"y":648,"width":771,"height":12}},{"id":"78338f9e-e6cf-43bd-87cd-f917fea5a89d","block_type":"box","text":"Selling Dealer that has been authorized by the Distributor by contract to accept such orders. As to","page_number":199,"box":{"x":116,"y":664,"width":726,"height":12}},{"id":"cfe9ce43-0f5c-4b12-bbb9-a28e7818dd4f","block_type":"box","text":"repurchase orders received by Selling Dealers prior to the close of business on the NYSE (generally,","page_number":199,"box":{"x":117,"y":679,"width":746,"height":12}},{"id":"4d47acf6-98f3-4978-814e-707c99489df1","block_type":"box","text":"the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed, which includes orders","page_number":199,"box":{"x":116,"y":695,"width":726,"height":12}},{"id":"330e7169-26b4-4905-b755-450d7dde88b0","block_type":"box","text":"received after the close of business on the previous day, the repurchase price is the NAV determined","page_number":199,"box":{"x":117,"y":710,"width":749,"height":12}},{"id":"37440dd0-e248-4ae2-be98-62803c72943b","block_type":"box","text":"as of the close of business on the NYSE on that day. If the orders for repurchase are not received by","page_number":199,"box":{"x":116,"y":726,"width":749,"height":12}},{"id":"1e227ba1-64d1-47bf-a2d8-0a72e3f7b2f2","block_type":"box","text":"the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":199,"box":{"x":116,"y":741,"width":760,"height":12}},{"id":"1452f891-b60f-4cca-8036-4ec4428aab1b","block_type":"box","text":"next business day.","page_number":199,"box":{"x":117,"y":757,"width":137,"height":12}},{"id":"1e180f9d-d677-4391-9931-ed653ac8aca5","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund","page_number":199,"box":{"x":116,"y":785,"width":738,"height":12}},{"id":"13f6c3c5-5920-4451-9647-7d482746cf62","block_type":"box","text":"(other than any applicable CDSC or redemption fee). However, Selling Dealers may charge a","page_number":199,"box":{"x":117,"y":800,"width":691,"height":12}},{"id":"6be9c0d3-fd26-4d8d-a08c-adcdb19620b1","block_type":"box","text":"processing fee in connection with such transactions. In addition, securities firms that do not have","page_number":199,"box":{"x":117,"y":816,"width":716,"height":12}},{"id":"2edce1b6-8fd4-494b-a8a2-93adf0955a6a","block_type":"box","text":"selected dealer agreements with the Distributor may impose a transaction charge for transmitting the","page_number":199,"box":{"x":116,"y":831,"width":753,"height":12}},{"id":"515756e6-6517-40d0-a208-1bded461c859","block_type":"box","text":"notice of repurchase to the Fund. Each Fund reserves the right to reject any order for repurchase. A","page_number":199,"box":{"x":117,"y":847,"width":746,"height":12}},{"id":"d45b0a84-250c-4ee8-aeba-3368f160a640","block_type":"box","text":"shareholder whose order for repurchase is rejected by a Fund, however, may redeem shares as set","page_number":199,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"5816aa7e-f8d6-4069-81c3-db67610b6979","block_type":"box","text":"out above.","page_number":199,"box":{"x":116,"y":878,"width":83,"height":9}},{"id":"77af9d37-a5bc-4670-b8f0-5e10bd8fc4f4","block_type":"box","text":"II-149","page_number":199,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"21e210ea-3c06-4a51-ae56-296240072c00","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":199,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"f457b78b-9263-4d37-aff5-2094bec859e3","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":200,"box":{"x":117,"y":87,"width":484,"height":12}},{"id":"cb1d1728-6e50-4cdd-a084-82126c4903ec","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable,","page_number":200,"box":{"x":117,"y":110,"width":691,"height":12}},{"id":"dd79b8ee-0742-4ee3-b5f9-beb5f7339107","block_type":"box","text":"shareholders may reinvest all or a portion of their redemption proceeds (after paying any applicable","page_number":200,"box":{"x":116,"y":126,"width":743,"height":12}},{"id":"bda3d857-33db-45b2-824f-058f58d1167a","block_type":"box","text":"CDSC) in Investor A or Investor P Shares of the same or another BlackRock fund without paying a","page_number":200,"box":{"x":117,"y":141,"width":735,"height":12}},{"id":"c909e920-6a0e-45e9-9e31-9cc1bc5a774b","block_type":"box","text":"front-end sales charge. This right may be exercised within 90 days of the redemption, provided that the","page_number":200,"box":{"x":116,"y":157,"width":769,"height":12}},{"id":"bfff183d-b9ee-431d-9c96-bdf6e36f7f9f","block_type":"box","text":"Investor A or Investor P Shares, as applicable, of that fund is currently open to new investors or the","page_number":200,"box":{"x":117,"y":172,"width":741,"height":12}},{"id":"2bd3eeb1-5ad6-419e-b94a-87be124b67e1","block_type":"box","text":"shareholder has a current account in that closed fund. Shares will be purchased at the NAV calculated","page_number":200,"box":{"x":116,"y":188,"width":765,"height":12}},{"id":"b95f6a99-3662-4afd-a289-0a16b6b0c550","block_type":"box","text":"at the close of trading on the day the request is received in good order. To exercise this privilege, the","page_number":200,"box":{"x":116,"y":203,"width":754,"height":12}},{"id":"8f3e625c-3041-4095-abf7-a0a755614ac6","block_type":"box","text":"Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":200,"box":{"x":116,"y":219,"width":714,"height":12}},{"id":"b8644910-2c79-4176-9b4f-63c71a30b2b5","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the","page_number":200,"box":{"x":117,"y":234,"width":767,"height":12}},{"id":"9a86e105-d745-467d-a18e-943010b05217","block_type":"box","text":"tax consequences of exercising this reinstatement privilege.","page_number":200,"box":{"x":116,"y":250,"width":449,"height":12}},{"id":"14d89946-27e9-4f80-9c80-356613e76496","block_type":"box","text":"S","page_number":200,"box":{"x":409,"y":296,"width":9,"height":10}},{"id":"48272a7b-a9a8-4a4f-a516-7da13d77c64b","block_type":"box","text":"HAREHOLDER","page_number":200,"box":{"x":420,"y":299,"width":95,"height":7}},{"id":"ca5d64dc-6a01-4233-9843-60550f7660fe","block_type":"box","text":"S","page_number":200,"box":{"x":515,"y":296,"width":16,"height":10}},{"id":"2ad5acc0-435a-44bb-82f1-ab28440f5e37","block_type":"box","text":"ERVICES","page_number":200,"box":{"x":532,"y":299,"width":59,"height":7}},{"id":"5e799e29-fb32-4d28-9477-3b4e7825971c","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to","page_number":200,"box":{"x":117,"y":327,"width":714,"height":12}},{"id":"a4049cd8-0311-4119-ab49-0dce138cfa95","block_type":"box","text":"facilitate investment in its shares. You can obtain more information about these services from each","page_number":200,"box":{"x":116,"y":343,"width":738,"height":9}},{"id":"373def85-34a0-45a1-b29f-aab25345d3a4","block_type":"box","text":"Fund by calling the telephone number on the cover page, or from the Distributor, your financial adviser,","page_number":200,"box":{"x":117,"y":358,"width":769,"height":12}},{"id":"fe2fb8a7-e0ed-4594-b2bb-4091ed406f78","block_type":"box","text":"your selected securities dealer or other financial intermediary. Certain of these services are available","page_number":200,"box":{"x":116,"y":374,"width":753,"height":12}},{"id":"6b8a9dfc-0061-4a01-b818-95c6558117c3","block_type":"box","text":"only to U.S. investors.","page_number":200,"box":{"x":116,"y":389,"width":168,"height":12}},{"id":"74e1effc-6ffd-47c4-b4be-9adfe6c77581","block_type":"box","text":"Investment Account","page_number":200,"box":{"x":117,"y":420,"width":164,"height":10}},{"id":"ede3999c-fa9a-41a1-8ec5-5ee44a075151","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive","page_number":200,"box":{"x":117,"y":444,"width":698,"height":12}},{"id":"b079ec70-c387-4e4f-a76a-cecb53c74876","block_type":"box","text":"statements, at least quarterly, from the Transfer Agent. These statements will serve as confirmations","page_number":200,"box":{"x":116,"y":459,"width":752,"height":12}},{"id":"594fb43b-acd0-4020-85a4-55d30e95f8e3","block_type":"box","text":"for automatic investment purchases and the reinvestment of dividends. The statements also will show","page_number":200,"box":{"x":116,"y":475,"width":760,"height":12}},{"id":"ad80f9c3-2372-443d-a21b-6e85db421fe6","block_type":"box","text":"any other activity in your Investment Account since the last statement. You also will receive separate","page_number":200,"box":{"x":116,"y":490,"width":752,"height":12}},{"id":"c850f0dd-ce96-4626-a74c-6596bea7709f","block_type":"box","text":"confirmations for each purchase or sale transaction other than automatic investment purchases and","page_number":200,"box":{"x":116,"y":506,"width":746,"height":12}},{"id":"4e24d040-0d58-4114-ac1d-198c93917194","block_type":"box","text":"the reinvestment of dividends. If your Investment Account is held at the Transfer Agent you may make","page_number":200,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"210181a1-1913-4627-9f9c-769e9ac6d307","block_type":"box","text":"additions to it at any time by mailing a check directly to the Transfer Agent. Each Fund limits purchases","page_number":200,"box":{"x":116,"y":537,"width":771,"height":12}},{"id":"0051208a-3632-49cc-bb7b-ed61be707fcf","block_type":"box","text":"by personal check to $500,000 per trade. You may also maintain an account through a selected","page_number":200,"box":{"x":117,"y":551,"width":715,"height":13}},{"id":"245ebb33-6f70-4958-83cb-76a450e16a5b","block_type":"box","text":"securities dealer or other financial intermediary. If you transfer shares out of an account maintained","page_number":200,"box":{"x":116,"y":568,"width":742,"height":12}},{"id":"781e2869-3b61-4884-8359-5e8c3e7d28a0","block_type":"box","text":"with a selected securities dealer or other financial intermediary, an Investment Account in your name","page_number":200,"box":{"x":116,"y":583,"width":752,"height":12}},{"id":"6c04af02-bcdd-4a27-af6c-1c25bb52ec9c","block_type":"box","text":"may be opened automatically at the Transfer Agent.","page_number":200,"box":{"x":117,"y":599,"width":390,"height":12}},{"id":"549b05a6-5db8-4409-a795-652087954cf2","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to","page_number":200,"box":{"x":116,"y":630,"width":723,"height":12}},{"id":"2c566a7b-3f6f-4015-8778-8b055f605faf","block_type":"box","text":"another securities dealer or other financial intermediary that has entered into an agreement with the","page_number":200,"box":{"x":116,"y":645,"width":745,"height":12}},{"id":"1c47afbe-65ac-4e90-bb5f-c97e3c68da1c","block_type":"box","text":"Distributor. Certain shareholder services may not be available for the transferred shares. All future","page_number":200,"box":{"x":117,"y":661,"width":727,"height":12}},{"id":"aeb2b8a0-5dd2-4449-b1a7-609fd3ab3215","block_type":"box","text":"trading of these assets must be coordinated by the new firm. If you wish to transfer your shares to a","page_number":200,"box":{"x":116,"y":676,"width":740,"height":12}},{"id":"81d03b0f-4c58-4a94-99a6-17fa3d9b42aa","block_type":"box","text":"securities dealer or other financial intermediary that has not entered into an agreement with the","page_number":200,"box":{"x":116,"y":692,"width":706,"height":12}},{"id":"9aaccb98-156d-400d-8209-1f84e905bc5f","block_type":"box","text":"Distributor, you must either (i) redeem your shares, paying any applicable CDSC or (ii) continue to","page_number":200,"box":{"x":117,"y":707,"width":727,"height":12}},{"id":"c605c726-1436-4e03-a8b6-4a45a536afda","block_type":"box","text":"maintain an Investment Account at the Transfer Agent for those shares. You also may request that the","page_number":200,"box":{"x":117,"y":723,"width":759,"height":12}},{"id":"43bee85f-f2e3-4f7a-9893-46f4d2aedcdb","block_type":"box","text":"new securities dealer or other financial intermediary maintain the shares in an account at the Transfer","page_number":200,"box":{"x":117,"y":738,"width":754,"height":12}},{"id":"7e426dcc-d4db-4684-b406-125115e75767","block_type":"box","text":"Agent registered in the name of the securities dealer or other financial intermediary for your benefit","page_number":200,"box":{"x":116,"y":754,"width":733,"height":12}},{"id":"bb63919c-7cd5-41e4-95a5-294734fb1527","block_type":"box","text":"whether the securities dealer or other financial intermediary has entered into a selected dealer","page_number":200,"box":{"x":116,"y":769,"width":700,"height":12}},{"id":"047e6e24-47b5-48dd-885e-66bc60106513","block_type":"box","text":"agreement or not. In the interest of economy and convenience and because of the operating","page_number":200,"box":{"x":116,"y":785,"width":685,"height":12}},{"id":"9eaf72c7-ed33-4647-a2dd-a89834373d35","block_type":"box","text":"procedures of each Fund, share certificates will not be issued physically. Shares are maintained by","page_number":200,"box":{"x":117,"y":800,"width":734,"height":12}},{"id":"818a4500-acf4-4b95-aab0-0d5f0db7340c","block_type":"box","text":"each Fund on its register maintained by the Transfer Agent and the holders thereof will have the same","page_number":200,"box":{"x":116,"y":816,"width":759,"height":12}},{"id":"a1ec64d2-157e-4f65-afb7-1688b5fc3d1d","block_type":"box","text":"rights and ownership with respect to such shares as if certificates had been issued.","page_number":200,"box":{"x":117,"y":831,"width":621,"height":12}},{"id":"92657533-e569-4f33-9f52-406156832464","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement","page_number":200,"box":{"x":117,"y":862,"width":754,"height":12}},{"id":"dd6e0191-e232-45d5-b16e-93b0a40a3162","block_type":"box","text":"account, from one selected securities dealer to another securities dealer or other financial","page_number":200,"box":{"x":116,"y":878,"width":671,"height":11}},{"id":"d6894d72-723d-49ff-bdd1-de8178abba1b","block_type":"box","text":"II-150","page_number":200,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"bd9c5585-7181-465a-ae8c-05ade8d187be","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":200,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"71000248-5233-4423-8aff-574ab1375b3c","block_type":"box","text":"intermediary, you should be aware that if the new firm will not take delivery of shares of the Fund, you","page_number":201,"box":{"x":117,"y":87,"width":759,"height":12}},{"id":"604d8868-2171-4c6d-970c-35b54c8ac133","block_type":"box","text":"must either redeem the shares (paying any applicable CDSC) so that the cash proceeds can be","page_number":201,"box":{"x":117,"y":102,"width":714,"height":13}},{"id":"002c9e39-cd0c-415b-82d9-e34439e3e5cc","block_type":"box","text":"transferred to the account at the new firm, or you must continue to maintain a retirement account at the","page_number":201,"box":{"x":116,"y":118,"width":770,"height":12}},{"id":"fda3dc8e-6304-41fb-aed4-001bf7d25291","block_type":"box","text":"original selected securities dealer for those shares.","page_number":201,"box":{"x":116,"y":134,"width":383,"height":12}},{"id":"104889ec-1f87-4b40-ab6b-19328118b3ea","block_type":"box","text":"Exchange Privilege","page_number":201,"box":{"x":117,"y":165,"width":158,"height":12}},{"id":"e674d44d-01db-4f4f-aa81-98cf4f62d30b","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G","page_number":201,"box":{"x":117,"y":192,"width":763,"height":11}},{"id":"a12d22d7-94c6-4cd5-9e4d-b5ea93bf21e7","block_type":"box","text":"Shares of each Fund have an exchange privilege with certain other Funds. However, Investor A1","page_number":201,"box":{"x":116,"y":207,"width":725,"height":12}},{"id":"5bb0428a-a685-403b-ab02-a2b0ceed5263","block_type":"box","text":"Shares may only exchange out. The minimum amount for exchanges of Investor class shares is","page_number":201,"box":{"x":116,"y":223,"width":717,"height":12}},{"id":"6e07bc7d-719a-4b94-ab31-3230057267ee","block_type":"box","text":"$1,000, although you may exchange less than $1,000 if you already have an account in the Fund into","page_number":201,"box":{"x":116,"y":237,"width":758,"height":13}},{"id":"efde69e7-186e-41f9-bdd1-34db52901e61","block_type":"box","text":"which you are exchanging. You may only exchange into a share class and a Fund that are open to new","page_number":201,"box":{"x":116,"y":254,"width":772,"height":12}},{"id":"bd33cf29-c020-4ec4-8b82-ba62570f8cbe","block_type":"box","text":"investors or in which you have a current account if the class or fund is closed to new investors. Before","page_number":201,"box":{"x":117,"y":269,"width":761,"height":12}},{"id":"63b4c605-f7c1-41c9-a7e7-3e0ea7ff1eba","block_type":"box","text":"effecting an exchange, you should obtain a currently effective prospectus of the fund into which you","page_number":201,"box":{"x":116,"y":285,"width":744,"height":12}},{"id":"dd1e2e5e-675e-41c2-8ff2-7022df9beef8","block_type":"box","text":"wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":201,"box":{"x":116,"y":300,"width":754,"height":12}},{"id":"398d7866-2ae4-45dd-b318-28931710f8e7","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":201,"box":{"x":116,"y":316,"width":630,"height":12}},{"id":"571cb9fe-a659-4dff-9818-3fbefaac6533","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":201,"box":{"x":116,"y":347,"width":689,"height":13}},{"id":"4a7db32a-90bb-47d3-ab2b-49642c87074a","block_type":"box","text":"Institutional Shares are exchangeable with Institutional Shares of other Funds. Investor A and Investor","page_number":201,"box":{"x":117,"y":363,"width":763,"height":12}},{"id":"2e921934-7e47-431b-8f0e-cef14d37390c","block_type":"box","text":"A1 Shares are exchangeable for Investor A Shares of other Funds to the extent such shares are","page_number":201,"box":{"x":116,"y":378,"width":719,"height":13}},{"id":"88c6311f-deef-417c-80e6-cc7cd90551fa","block_type":"box","text":"offered by your financial intermediary. Investor P Shares are exchangeable for Investor P Shares of","page_number":201,"box":{"x":116,"y":394,"width":744,"height":12}},{"id":"48e7c744-1b03-46c8-aa26-974396fa75f0","block_type":"box","text":"other Funds, to the extent such shares are offered by your financial intermediary. Class K Shares are","page_number":201,"box":{"x":116,"y":409,"width":756,"height":13}},{"id":"5cb15da2-1087-47ea-af7a-16399f1ec367","block_type":"box","text":"exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable for Class G","page_number":201,"box":{"x":116,"y":425,"width":722,"height":12}},{"id":"fde8c6c6-c4be-44d6-bf87-9cd00281286b","block_type":"box","text":"Shares of other Funds.","page_number":201,"box":{"x":116,"y":440,"width":176,"height":10}},{"id":"5012d456-9949-4a37-aba7-01d5b17e62fd","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of","page_number":201,"box":{"x":117,"y":472,"width":764,"height":12}},{"id":"26d634d5-a9c8-41c8-85a6-8c74b938dc1e","block_type":"box","text":"a money market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of","page_number":201,"box":{"x":116,"y":488,"width":748,"height":12}},{"id":"1557c14e-fc05-47d0-bd2f-4569db4a40c2","block_type":"box","text":"Investor A or Investor A1 Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares","page_number":201,"box":{"x":117,"y":503,"width":754,"height":12}},{"id":"456570af-e08e-4170-8309-e096281e661e","block_type":"box","text":"of a second fund, or for shares of a money market fund (“new Investor A Shares”) are effected on the","page_number":201,"box":{"x":116,"y":519,"width":756,"height":12}},{"id":"59004921-53ba-43dd-ab3d-00fb02e2630b","block_type":"box","text":"basis of relative NAV per share. Exchanges of Investor P Shares outstanding for Investor P Shares of","page_number":201,"box":{"x":117,"y":534,"width":759,"height":12}},{"id":"00542dc9-921a-4956-b3c4-007f9c5c2138","block_type":"box","text":"a second fund are effected on the basis of relative NAV per share. Exchanges of Class K Shares","page_number":201,"box":{"x":116,"y":550,"width":724,"height":12}},{"id":"e036d3da-1552-4ec4-acef-569f2d6cc7b9","block_type":"box","text":"outstanding for Class K Shares of a second fund, or","page_number":201,"box":{"x":116,"y":565,"width":390,"height":12}},{"id":"1415c51d-476f-499a-81de-8dad4dbbc397","block_type":"box","text":"for shares of a money market fund are effected on","page_number":201,"box":{"x":506,"y":565,"width":378,"height":12}},{"id":"1a599a2c-6ade-46af-8cd2-47b8ac39a99d","block_type":"box","text":"the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class G Shares of a","page_number":201,"box":{"x":116,"y":581,"width":770,"height":12}},{"id":"222ac2e9-38b8-4f95-bf50-ee6f14a42b78","block_type":"box","text":"second fund are effected on the basis of relative NAV per share.","page_number":201,"box":{"x":116,"y":596,"width":483,"height":12}},{"id":"5803ef6a-cb92-42a1-924e-e86a1638e3e5","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":201,"box":{"x":116,"y":628,"width":250,"height":12}},{"id":"0fd7ff76-fd06-4a9a-911a-990feb38dcde","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding","page_number":201,"box":{"x":367,"y":628,"width":495,"height":12}},{"id":"d65a0a89-8a15-495f-8e08-208598082e96","block_type":"box","text":"(“outstanding Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund","page_number":201,"box":{"x":117,"y":644,"width":758,"height":12}},{"id":"012845db-bcee-42af-9c62-8c4062894366","block_type":"box","text":"(“new Investor C Shares”) or for shares of a money market fund (“new money market fund Shares”) on","page_number":201,"box":{"x":117,"y":659,"width":766,"height":12}},{"id":"eeb248ba-9f4d-405f-93c4-2b640441d746","block_type":"box","text":"the basis of relative NAV per share, without the payment of any CDSC. Certain Funds impose different","page_number":201,"box":{"x":116,"y":675,"width":762,"height":12}},{"id":"1a69a8db-6e8a-466a-8c0b-d9136d1fa8f8","block_type":"box","text":"CDSC schedules. For purposes of computing the CDSC upon redemption of new Investor C Shares or","page_number":201,"box":{"x":117,"y":690,"width":761,"height":12}},{"id":"2ddb7590-3cf8-44ce-9224-adf18e4f6403","block_type":"box","text":"new money market fund Shares, as applicable, the time you held both the exchanged Investor C","page_number":201,"box":{"x":117,"y":706,"width":715,"height":12}},{"id":"2db08542-c7fd-4df2-9cac-071ac0b9e576","block_type":"box","text":"Shares and the new Investor C Shares or new money market fund Shares will count towards the","page_number":201,"box":{"x":116,"y":721,"width":716,"height":12}},{"id":"c816d074-4ec2-469d-8da9-5a4630e56fd2","block_type":"box","text":"holding period of the new Investor C Shares or new money market fund Shares.","page_number":201,"box":{"x":117,"y":737,"width":591,"height":12}},{"id":"8f100e52-a938-4f4b-a07b-e5fbac3b3350","block_type":"box","text":"Exchanges of Service Shares.","page_number":201,"box":{"x":116,"y":768,"width":223,"height":12}},{"id":"0b9c3e13-d645-429a-be26-438ec0c6909f","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are","page_number":201,"box":{"x":347,"y":768,"width":530,"height":12}},{"id":"df6a7b77-797a-448e-9b1a-247a7d5a6fcb","block_type":"box","text":"covered by selected dealer agreements with the Distributor.","page_number":201,"box":{"x":116,"y":784,"width":442,"height":12}},{"id":"2ec82b01-9291-4d68-a2af-9c2b12e838fe","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":201,"box":{"x":116,"y":816,"width":356,"height":12}},{"id":"f8510712-d04a-4c03-b668-78c41c897adf","block_type":"box","text":"You may exchange any class of Investor class shares,","page_number":201,"box":{"x":478,"y":816,"width":404,"height":12}},{"id":"4cf6a82f-4815-4572-88c3-4cf06e7d8af0","block_type":"box","text":"excluding Investor P Shares, for shares of an affiliated money market fund. If you exchange into","page_number":201,"box":{"x":116,"y":831,"width":717,"height":12}},{"id":"d114d632-dabb-45f0-90a2-439036f05cd1","block_type":"box","text":"BlackRock Summit Cash Reserves Fund (“Summit”), a series of BlackRock Financial Institutions","page_number":201,"box":{"x":117,"y":847,"width":720,"height":12}},{"id":"dc10c1a2-36df-4cad-8f28-b0696846719c","block_type":"box","text":"Series Trust, you will receive one of two classes of shares: exchanges of Investor A, Investor A1 and","page_number":201,"box":{"x":116,"y":862,"width":753,"height":12}},{"id":"0c643306-a437-4db1-a87b-7be65f014679","block_type":"box","text":"Institutional Shares of a Fund will receive Investor A Shares of Summit and exchanges of Investor C","page_number":201,"box":{"x":117,"y":878,"width":747,"height":12}},{"id":"bd99927b-50cd-4bef-b8ac-43d160e664bc","block_type":"box","text":"II-151","page_number":201,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"bf7b2a38-8984-46b7-bf86-3713c8d0c5b0","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":201,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"adf8e916-2a55-49c7-b521-91ad7aea025f","block_type":"box","text":"Shares of a Fund will receive Investor C Shares of Summit. You may exchange Investor A Shares of","page_number":202,"box":{"x":116,"y":87,"width":751,"height":12}},{"id":"387e964d-eab0-46a4-84ef-4135817d25fe","block_type":"box","text":"Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to hold such shares.","page_number":202,"box":{"x":116,"y":102,"width":748,"height":13}},{"id":"dcb17a84-0464-46d3-8741-97a2727d1b07","block_type":"box","text":"You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":202,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"6fa8435a-8ab3-43ad-a33c-e540982af1b4","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count","page_number":202,"box":{"x":116,"y":134,"width":740,"height":12}},{"id":"2ebadc3c-86f9-46e8-bddd-38408c7464b6","block_type":"box","text":"toward satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C","page_number":202,"box":{"x":116,"y":149,"width":752,"height":12}},{"id":"94c03687-6595-4ee7-94ba-57858c59f11e","block_type":"box","text":"Shares of Summit are subject to a distribution fee at an annual rate of 0.75% of average daily net","page_number":202,"box":{"x":116,"y":165,"width":726,"height":12}},{"id":"e8fc6cd7-5363-4d5f-9f60-bcc78eb5b0cc","block_type":"box","text":"assets of such Investor C Shares. Exchanges of Investor C Shares of a money market fund other than","page_number":202,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"30060590-bc8b-4026-9acf-2175de6f3f54","block_type":"box","text":"Summit for Investor C Shares of a Fund will be exercised at NAV. However, a CDSC may be charged","page_number":202,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"878267ab-4cf8-4ecb-8b16-c03f57889373","block_type":"box","text":"in connection with any subsequent redemption of the Investor C Shares of the Fund received in the","page_number":202,"box":{"x":117,"y":211,"width":740,"height":12}},{"id":"07a718a7-a425-436f-b0f0-6a32bce0c086","block_type":"box","text":"exchange. In determining the holding period for calculating the CDSC payable on redemption of","page_number":202,"box":{"x":116,"y":227,"width":715,"height":12}},{"id":"d316778d-787b-452b-a613-8d78e14afcb4","block_type":"box","text":"Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":202,"box":{"x":117,"y":242,"width":759,"height":12}},{"id":"2cc4a9b4-4ac7-48f8-9205-28570c1b7513","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired","page_number":202,"box":{"x":117,"y":258,"width":761,"height":12}},{"id":"1c823d06-dc6d-40a8-b8fc-2cb607b5aebd","block_type":"box","text":"through exchange.","page_number":202,"box":{"x":116,"y":273,"width":144,"height":12}},{"id":"899bfe0a-5ddd-440c-bc10-8d2078fd77a0","block_type":"box","text":"Exchanges by Participants in Certain Programs.","page_number":202,"box":{"x":116,"y":304,"width":362,"height":12}},{"id":"63d8ac6f-234a-44a9-87ec-84052874b8e1","block_type":"box","text":"The exchange privilege may be modified with respect","page_number":202,"box":{"x":478,"y":304,"width":401,"height":12}},{"id":"a5833ba4-ef5c-43fa-9526-841a6cdc786e","block_type":"box","text":"to certain participants in mutual fund advisory programs and other fee-based programs sponsored by","page_number":202,"box":{"x":116,"y":320,"width":755,"height":12}},{"id":"22b1fd07-f8ee-49b4-bca5-8bba69e2b76c","block_type":"box","text":"the Manager, an affiliate of the Manager, or selected securities dealers or other financial intermediaries","page_number":202,"box":{"x":116,"y":335,"width":770,"height":12}},{"id":"cc328352-f43c-4616-8b27-69d977b40130","block_type":"box","text":"that have an agreement with the Distributor. See “Fee-Based Programs” below.","page_number":202,"box":{"x":116,"y":351,"width":595,"height":12}},{"id":"d6f111fc-1086-4cd1-b0bb-5b92e635323e","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":202,"box":{"x":116,"y":382,"width":269,"height":12}},{"id":"16df8c9b-6e94-468d-b1bd-9d0fbcb3d2c8","block_type":"box","text":"To exercise the exchange privilege, you should contact your","page_number":202,"box":{"x":385,"y":382,"width":452,"height":12}},{"id":"3ce19f0c-ab3c-4da8-a945-aef1eb6271f2","block_type":"box","text":"financial adviser or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold","page_number":202,"box":{"x":116,"y":397,"width":758,"height":12}},{"id":"78dff58b-d205-4956-a9b0-380b68bfa538","block_type":"box","text":"share certificates, you may exercise the exchange privilege by wire through your securities dealer or","page_number":202,"box":{"x":116,"y":413,"width":749,"height":12}},{"id":"b3ddcd78-4b8d-4f43-ae9a-7265bc270129","block_type":"box","text":"other financial intermediary. Each Fund reserves the right to require a properly completed exchange","page_number":202,"box":{"x":116,"y":428,"width":747,"height":12}},{"id":"a42324c5-b4e4-472c-825a-6ad146e9ef65","block_type":"box","text":"application.","page_number":202,"box":{"x":116,"y":444,"width":89,"height":12}},{"id":"53e13656-6bf3-4822-b7bd-9d8354f79989","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/","page_number":202,"box":{"x":116,"y":475,"width":767,"height":12}},{"id":"7ed13936-98ed-4183-8d7a-3064bd61f7b9","block_type":"box","text":"o the Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429.","page_number":202,"box":{"x":116,"y":490,"width":771,"height":12}},{"id":"bbf73c3e-901d-4340-b202-85f0cd72ab19","block_type":"box","text":"Shareholders are automatically provided with telephone exchange privileges when opening an","page_number":202,"box":{"x":116,"y":506,"width":705,"height":12}},{"id":"e1090243-f3f3-4808-bee5-817b128be417","block_type":"box","text":"account, unless they indicate on the Application that they do not wish to use this privilege. To add this","page_number":202,"box":{"x":116,"y":521,"width":759,"height":12}},{"id":"23773bd3-cc42-4757-8bd0-039b5c6190e7","block_type":"box","text":"feature to an existing account that previously did not provide this option, a Telephone Exchange","page_number":202,"box":{"x":116,"y":537,"width":716,"height":12}},{"id":"2d27a1b6-948d-4c61-9d3f-a8632ef2bd0b","block_type":"box","text":"Authorization Form must be filed with the Transfer Agent. This form is available from the Transfer","page_number":202,"box":{"x":116,"y":552,"width":727,"height":12}},{"id":"f5618c9d-24f8-47ce-93cb-f4515bb85c52","block_type":"box","text":"Agent. Once this election has been made, the shareholder may simply contact the Fund by telephone","page_number":202,"box":{"x":116,"y":568,"width":759,"height":12}},{"id":"c146f955-10a8-4427-a048-0fd140ee6469","block_type":"box","text":"at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":202,"box":{"x":116,"y":583,"width":763,"height":12}},{"id":"75560bc2-d6e6-42e7-ba10-9f6dd49f71c5","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange","page_number":202,"box":{"x":116,"y":599,"width":736,"height":12}},{"id":"cd0fd955-dd23-4021-a415-55a2302e16ac","block_type":"box","text":"requests to the Transfer Agent in writing.","page_number":202,"box":{"x":117,"y":614,"width":307,"height":12}},{"id":"680723c5-de0d-4b98-9a75-4c43ede43968","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares","page_number":202,"box":{"x":117,"y":645,"width":760,"height":12}},{"id":"a9978a9b-400d-47ef-8b24-093bd889a43e","block_type":"box","text":"are being acquired, a new account will be established with the same registration, dividend and capital","page_number":202,"box":{"x":116,"y":661,"width":751,"height":12}},{"id":"4b2a2ea6-e387-4852-9fa1-8aabf7df4b5c","block_type":"box","text":"gain options and broker of record as the account from which shares are exchanged, unless otherwise","page_number":202,"box":{"x":116,"y":676,"width":752,"height":12}},{"id":"d45be7aa-e34b-452e-b68b-c24eff1c7e6f","block_type":"box","text":"specified in writing by the shareholder with all signatures guaranteed by an eligible guarantor institution","page_number":202,"box":{"x":116,"y":692,"width":764,"height":12}},{"id":"b141b269-dd8c-407b-8430-d7eec9778756","block_type":"box","text":"as defined below. In order to participate in the Automatic Investment Program or establish a","page_number":202,"box":{"x":116,"y":707,"width":680,"height":12}},{"id":"15d11050-68cd-43aa-baea-c0c64fd91343","block_type":"box","text":"Systematic Withdrawal Plan for the new account, however, an exchanging shareholder must file a","page_number":202,"box":{"x":116,"y":723,"width":726,"height":12}},{"id":"dd7e3b00-c3b0-4f19-b46e-e580fe1f419c","block_type":"box","text":"specific written request.","page_number":202,"box":{"x":116,"y":738,"width":174,"height":12}},{"id":"01e88816-4ab4-42b0-9377-7f2995cbf1aa","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment","page_number":202,"box":{"x":116,"y":769,"width":686,"height":12}},{"id":"41e9ab90-a698-4d44-844d-ae7f7a73f7bf","block_type":"box","text":"requirement, and must be legally available for sale in the state of the investor’s residence. For U.S.","page_number":202,"box":{"x":117,"y":785,"width":732,"height":12}},{"id":"6a34dac2-216b-4797-97ba-ce2d5334e571","block_type":"box","text":"federal income tax purposes, a share exchange is a taxable event and, accordingly, a capital gain or","page_number":202,"box":{"x":116,"y":800,"width":746,"height":12}},{"id":"5c916f4e-6d5e-49f2-a6c4-f388153e3c0d","block_type":"box","text":"loss may be realized. Before making an exchange request, shareholders should consult a tax or other","page_number":202,"box":{"x":117,"y":816,"width":755,"height":12}},{"id":"412f54f4-ecf3-47f6-bc90-354270de2826","block_type":"box","text":"financial adviser and should consider the investment objective, policies and restrictions of the","page_number":202,"box":{"x":116,"y":831,"width":697,"height":12}},{"id":"91ee740b-8984-45ab-b1f9-e24bb4d51140","block_type":"box","text":"investment portfolio into which the shareholder is making an exchange. Brokers may charge a fee for","page_number":202,"box":{"x":117,"y":847,"width":754,"height":12}},{"id":"16282a72-eacd-4d2a-90f1-4ced44fc80a8","block_type":"box","text":"handling exchanges.","page_number":202,"box":{"x":117,"y":862,"width":158,"height":12}},{"id":"625295af-b6db-42d2-970c-fc53d1a884d5","block_type":"box","text":"II-152","page_number":202,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"27b2cd02-30a8-4d3e-9d22-8266804c87c4","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":202,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"f8ca0b66-123c-4950-bc1f-c25ca6db5157","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice","page_number":203,"box":{"x":116,"y":87,"width":769,"height":12}},{"id":"43607e0b-ce31-4591-84cc-f8b549ca2694","block_type":"box","text":"will be given to shareholders of any material modification or termination except where notice is not","page_number":203,"box":{"x":116,"y":102,"width":733,"height":13}},{"id":"37973fb0-fe7f-4bec-b109-7cf8ce2de3ef","block_type":"box","text":"required. The Funds reserve the right to reject any telephone exchange request. Telephone exchanges","page_number":203,"box":{"x":117,"y":118,"width":770,"height":12}},{"id":"f1482e46-4194-4c1b-936b-44cb287abc68","block_type":"box","text":"may be subject to limitations as to amount or frequency, and to other restrictions that may be","page_number":203,"box":{"x":117,"y":134,"width":693,"height":12}},{"id":"21efe51b-a78f-4c59-971c-1c2a51b388c1","block_type":"box","text":"established from time to time to ensure that exchanges do not operate to the disadvantage of any","page_number":203,"box":{"x":116,"y":149,"width":729,"height":12}},{"id":"debd2a47-8f93-4fb7-9040-bda107fc9710","block_type":"box","text":"portfolio or its shareholders.","page_number":203,"box":{"x":117,"y":165,"width":211,"height":11}},{"id":"ab7ea337-c84e-4cdb-8a81-ee958dc832bf","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":203,"box":{"x":116,"y":194,"width":770,"height":12}},{"id":"f5b2d87b-569c-4738-8739-c873ed920df4","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for","page_number":203,"box":{"x":116,"y":210,"width":766,"height":12}},{"id":"f7d6368b-b598-403e-a55c-e5a70428ba1d","block_type":"box","text":"any loss, liability, cost or expense for acting upon telephone instructions reasonably believed to be","page_number":203,"box":{"x":116,"y":225,"width":735,"height":12}},{"id":"8be1ac48-d3c0-4df9-914f-5fd38fe7ba69","block_type":"box","text":"genuine in accordance with such procedures. By use of the exchange privilege, the investor authorizes","page_number":203,"box":{"x":116,"y":241,"width":769,"height":12}},{"id":"c2212510-c231-4bd5-bb4c-0ff1e8634695","block_type":"box","text":"the Fund’s Transfer Agent to act on telephonic or written exchange instructions from any person","page_number":203,"box":{"x":116,"y":256,"width":718,"height":12}},{"id":"d954a293-de27-464f-8184-df908adb6a1a","block_type":"box","text":"representing himself to be the investor and believed by the Fund’s Transfer Agent to be genuine. The","page_number":203,"box":{"x":117,"y":272,"width":756,"height":12}},{"id":"524cfc72-fe5d-4af2-8610-17cde2a09c27","block_type":"box","text":"records of the Fund’s Transfer Agent pertaining to such instructions are binding. The exchange","page_number":203,"box":{"x":117,"y":287,"width":709,"height":12}},{"id":"31dd4912-6fb5-43da-954d-2961e1b4bbdc","block_type":"box","text":"privilege may be modified or terminated at any time upon 60 days’ notice to affected shareholders. The","page_number":203,"box":{"x":117,"y":303,"width":768,"height":12}},{"id":"4a106239-33a6-44b4-a344-685b41d1eb7a","block_type":"box","text":"exchange privilege is only available in states where the exchange may legally be made.","page_number":203,"box":{"x":116,"y":318,"width":655,"height":12}},{"id":"de4e1a89-719e-4174-a215-198f6b5a36f7","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange","page_number":203,"box":{"x":117,"y":348,"width":723,"height":12}},{"id":"50a2193d-4760-4806-882c-b7262df954a1","block_type":"box","text":"privilege. Certain Funds may suspend the continuous offering of their shares to the general public at","page_number":203,"box":{"x":117,"y":363,"width":747,"height":12}},{"id":"2d198567-1d0c-4d8c-8174-11017caffb34","block_type":"box","text":"any time and may resume such offering from time to time. The exchange privilege is available only to","page_number":203,"box":{"x":116,"y":379,"width":755,"height":12}},{"id":"898bf7d2-24e8-4788-afcb-95b7b11e7157","block_type":"box","text":"U.S. shareholders in states where the exchange legally may be made. The exchange privilege may be","page_number":203,"box":{"x":117,"y":394,"width":764,"height":12}},{"id":"e580b4c7-4574-4a01-9c3e-f068e9b2b860","block_type":"box","text":"applicable to other new mutual funds whose shares may be distributed by the Distributor.","page_number":203,"box":{"x":116,"y":410,"width":666,"height":12}},{"id":"f5bbcbce-8998-4f28-bb58-41bae6a9d299","block_type":"box","text":"Participation in Fee-Based Programs","page_number":203,"box":{"x":117,"y":439,"width":298,"height":12}},{"id":"aa73a9f3-5839-40b2-bbde-1d1ae0fdb8b2","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or","page_number":203,"box":{"x":117,"y":462,"width":747,"height":12}},{"id":"1f86aa39-5ad0-4e96-b673-15a1736e68d9","block_type":"box","text":"selected securities dealers or other financial intermediaries that have agreements with the Distributor","page_number":203,"box":{"x":116,"y":477,"width":754,"height":12}},{"id":"bdc23f21-fa4a-4975-a062-362200bb9f1c","block_type":"box","text":"or in certain fee-based programs in which BlackRock participates, you may be able to buy Institutional","page_number":203,"box":{"x":116,"y":493,"width":761,"height":12}},{"id":"d8aa3d64-4cd4-4f93-b50b-9287300335c1","block_type":"box","text":"Shares, including by exchanges from other share classes. Sales charges on the shares being","page_number":203,"box":{"x":116,"y":508,"width":700,"height":12}},{"id":"0859be70-566b-4f80-8e38-0780e40c1c33","block_type":"box","text":"exchanged may be reduced or waived under certain circumstances. You generally cannot transfer","page_number":203,"box":{"x":116,"y":524,"width":733,"height":12}},{"id":"ce2a330f-da4b-4402-8985-434fa532ecbc","block_type":"box","text":"shares held through a fee-based program into another account. Instead, if you choose to leave the","page_number":203,"box":{"x":116,"y":539,"width":736,"height":12}},{"id":"21dfb5cb-b379-4eef-b43f-1b36442e039c","block_type":"box","text":"fee-based program, you may have to redeem your shares held through the program and purchase","page_number":203,"box":{"x":116,"y":555,"width":735,"height":12}},{"id":"d00e9c50-858b-48f7-ac81-3d2f9b8652f5","block_type":"box","text":"shares of another class, which may be subject to distribution and service fees. This may be a taxable","page_number":203,"box":{"x":116,"y":570,"width":755,"height":12}},{"id":"6eca744e-a1e9-4645-a27c-69165d8b9124","block_type":"box","text":"event and you may pay any applicable sales charges or redemption fee. Please speak to your financial","page_number":203,"box":{"x":116,"y":586,"width":769,"height":12}},{"id":"6b06d7ce-6d57-40a7-8917-5208a04adb1c","block_type":"box","text":"intermediary for information about specific policies and procedures applicable to your account.","page_number":203,"box":{"x":117,"y":601,"width":703,"height":13}},{"id":"674f5b38-c263-4cb0-b06e-86649f37556e","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can","page_number":203,"box":{"x":117,"y":631,"width":749,"height":12}},{"id":"211381c2-7ae1-423a-abbe-3da75b8a1089","block_type":"box","text":"be held in an account. In certain circumstances, when a shareholder chooses to continue to hold the","page_number":203,"box":{"x":117,"y":647,"width":749,"height":11}},{"id":"ec3bd0f9-ec2c-4e44-b799-421917b86041","block_type":"box","text":"shares, whatever share class was held in the program can be held after termination. Shares that have","page_number":203,"box":{"x":116,"y":662,"width":756,"height":12}},{"id":"91381338-9da6-40c4-9430-e8e1ab182dc2","block_type":"box","text":"been held for less than specified periods within the program may be subject to a fee upon redemption.","page_number":203,"box":{"x":117,"y":677,"width":756,"height":13}},{"id":"e5ea0924-9d7b-44d0-988a-d36f63382b80","block_type":"box","text":"Shareholders that held Investor A or Institutional Shares in the program may be eligible to purchase","page_number":203,"box":{"x":116,"y":693,"width":739,"height":12}},{"id":"f3413616-afa2-471a-bab8-b118914165bb","block_type":"box","text":"additional shares of the respective share class of a Fund, but may be subject to upfront sales charges","page_number":203,"box":{"x":116,"y":709,"width":755,"height":12}},{"id":"897e4196-2303-44a7-b330-0c6ccb6ce10f","block_type":"box","text":"with respect to Investor A Shares. Additional purchases of Institutional Shares are permitted only if you","page_number":203,"box":{"x":116,"y":724,"width":762,"height":12}},{"id":"1a61e5b7-c986-4c84-b793-a3d990179810","block_type":"box","text":"have an existing position at the time of purchase or are otherwise eligible to purchase Institutional","page_number":203,"box":{"x":117,"y":740,"width":723,"height":12}},{"id":"648a4b19-a17f-4b57-a1c1-a4ee737b7fea","block_type":"box","text":"Shares. Please speak to your financial intermediary for more information.","page_number":203,"box":{"x":116,"y":755,"width":542,"height":12}},{"id":"498cd7f5-483c-47e1-bfc7-0c6ba6df1300","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to","page_number":203,"box":{"x":117,"y":785,"width":755,"height":12}},{"id":"0a9cb5fb-9b5d-400f-a216-5f29c5aef0f1","block_type":"box","text":"leaving a fee-based program or upon termination of the fee-based program) or otherwise in","page_number":203,"box":{"x":117,"y":800,"width":675,"height":12}},{"id":"62019561-8ae5-4b51-89f9-59a5c37a4184","block_type":"box","text":"accordance with the financial intermediary’s policies and procedures, exchange the share class held in","page_number":203,"box":{"x":116,"y":816,"width":761,"height":12}},{"id":"27f85be0-95d6-44ee-a465-50b58e3c1d3e","block_type":"box","text":"the program for another share class of the same fund, provided that the exchanged shares are not","page_number":203,"box":{"x":116,"y":831,"width":736,"height":12}},{"id":"34850e1b-657c-4342-8202-7cbb133d847f","block_type":"box","text":"subject to a sales charge and the shareholder meets the eligibility requirements of the new share class.","page_number":203,"box":{"x":116,"y":847,"width":772,"height":12}},{"id":"b5ddd41a-5b11-4ed6-aa11-f3cb0a0ceca6","block_type":"box","text":"Please speak to your financial intermediary for information about specific policies and procedures","page_number":203,"box":{"x":117,"y":862,"width":726,"height":12}},{"id":"eb445d26-917f-4f12-af36-9781e5f6ba6e","block_type":"box","text":"applicable to your account.","page_number":203,"box":{"x":116,"y":878,"width":205,"height":12}},{"id":"afbeaac9-d384-4c2e-bd21-68f28c986491","block_type":"box","text":"II-153","page_number":203,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"2600dbd7-c999-48bb-beb2-4e9ce6b88634","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":203,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"fc14a2a2-4ca9-4ef9-83dc-b7148c0f8344","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions","page_number":204,"box":{"x":117,"y":87,"width":757,"height":12}},{"id":"6d90a59a-038d-4d3a-899a-cd513e172918","block_type":"box","text":"are included in the client agreement for each fee-based program and are available from your financial","page_number":204,"box":{"x":116,"y":102,"width":759,"height":13}},{"id":"90ffc07a-a944-4a09-937f-7f5ff3c6ae43","block_type":"box","text":"professional, selected securities dealer or other financial intermediary. Please speak to your financial","page_number":204,"box":{"x":117,"y":118,"width":753,"height":12}},{"id":"00aa53a8-366f-4035-ac6f-b43c1f88dd53","block_type":"box","text":"intermediary for more information.","page_number":204,"box":{"x":117,"y":134,"width":256,"height":12}},{"id":"df84633d-0188-45e7-9ae8-a57325d6a6b2","block_type":"box","text":"Retirement and Education Savings Plans","page_number":204,"box":{"x":117,"y":165,"width":331,"height":12}},{"id":"136101a9-ff1a-4c69-aec3-639b57048aaf","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from","page_number":204,"box":{"x":117,"y":188,"width":739,"height":12}},{"id":"e8518a5e-f30e-4c4e-921b-9e6de290aa69","block_type":"box","text":"your financial intermediary. Under these plans, investments may be made in a Fund (other than a","page_number":204,"box":{"x":116,"y":203,"width":728,"height":12}},{"id":"0f6f8351-4ac1-47b6-b43a-77bd6e17c84a","block_type":"box","text":"Municipal Fund) and certain of the other mutual funds sponsored by the Manager or its affiliates as well","page_number":204,"box":{"x":117,"y":219,"width":771,"height":12}},{"id":"e0429d64-0fd3-4ebf-a37f-eb15c863bcfe","block_type":"box","text":"as in other securities. There may be fees associated with investing through these plans. Information","page_number":204,"box":{"x":116,"y":234,"width":745,"height":12}},{"id":"da92f9bc-b05d-4b27-b6a9-931cae602f22","block_type":"box","text":"with respect to these plans is available on request from your financial intermediary.","page_number":204,"box":{"x":116,"y":250,"width":620,"height":12}},{"id":"264c52f9-150a-4d38-86cd-f1afe9b03eae","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until","page_number":204,"box":{"x":117,"y":281,"width":749,"height":12}},{"id":"98b91167-5d13-448c-a91b-bddc257f8649","block_type":"box","text":"distributed from the plans and, in the case of Roth IRAs and education savings plans, may be exempt","page_number":204,"box":{"x":116,"y":296,"width":759,"height":12}},{"id":"2650278a-bd3d-42c7-8e87-db061405f466","block_type":"box","text":"from taxation when distributed as well. Investors considering participation in any retirement or","page_number":204,"box":{"x":116,"y":312,"width":699,"height":12}},{"id":"50996402-5ae4-459a-8733-9526ff435b19","block_type":"box","text":"education savings plan should review specific tax laws relating to the plan and should consult their","page_number":204,"box":{"x":116,"y":327,"width":735,"height":12}},{"id":"caaa5363-9e9d-48e1-ae0e-f850f0606951","block_type":"box","text":"attorneys or tax advisors with respect to the establishment and maintenance of any such plan.","page_number":204,"box":{"x":116,"y":343,"width":704,"height":12}},{"id":"761a0051-f818-4dfe-9359-a6a075233fb2","block_type":"box","text":"Automatic Investment Plans","page_number":204,"box":{"x":116,"y":374,"width":230,"height":9}},{"id":"bb756937-6480-4992-bda1-33b1d9a5ea9e","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the","page_number":204,"box":{"x":117,"y":397,"width":734,"height":10}},{"id":"fbf45a10-c460-4c8f-bfae-7c9832e3e2fc","block_type":"box","text":"Compass Capital Group of Funds at the time of its combination with The PNC","page_number":204,"box":{"x":117,"y":413,"width":575,"height":12}},{"id":"4b68e17f-5066-409e-ba49-d5c1ec866d0f","block_type":"box","text":"®","page_number":204,"box":{"x":693,"y":412,"width":9,"height":7}},{"id":"43b7d611-51d1-4107-9867-2c26aa087011","block_type":"box","text":"Fund in 1996 may","page_number":204,"box":{"x":702,"y":413,"width":144,"height":12}},{"id":"6a6a0adb-1761-4011-a0fe-c20bc2e1a5d3","block_type":"box","text":"arrange for periodic investments in that Fund through automatic deductions from a checking or savings","page_number":204,"box":{"x":116,"y":428,"width":769,"height":12}},{"id":"5f19aa96-d2f5-405f-9bc0-4e53aebf06d3","block_type":"box","text":"account. The minimum pre-authorized investment amount is $50. If you buy shares of a Fund through","page_number":204,"box":{"x":116,"y":443,"width":760,"height":13}},{"id":"82db2be1-4eba-4f4c-865b-442faa034c58","block_type":"box","text":"certain accounts, no minimum charge to your bank account is required. Contact your financial adviser","page_number":204,"box":{"x":116,"y":459,"width":759,"height":12}},{"id":"73e65207-c824-44c8-aa48-f29f1c5ad1b1","block_type":"box","text":"or other financial intermediary for more information.","page_number":204,"box":{"x":116,"y":475,"width":386,"height":12}},{"id":"bfc93f4e-8008-4028-a9f2-c2058f79122a","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":204,"box":{"x":116,"y":506,"width":318,"height":9}},{"id":"e01eb9e2-84ce-4eac-bc90-54a130fa7035","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if","page_number":204,"box":{"x":117,"y":529,"width":758,"height":12}},{"id":"ae0b9920-a7d5-4ceb-8e2d-5eded4588790","block_type":"box","text":"any, to shareholders. All distributions are automatically reinvested at NAV in the form of additional full","page_number":204,"box":{"x":116,"y":544,"width":758,"height":12}},{"id":"a09806b2-1f7a-41e9-a566-5523c78dbf5b","block_type":"box","text":"and fractional shares of the same class of shares of the relevant Fund unless a shareholder elects","page_number":204,"box":{"x":116,"y":560,"width":734,"height":9}},{"id":"0d3baeb2-c6c5-4cf8-8b45-a7c8c3046823","block_type":"box","text":"otherwise or as otherwise set forth in a Fund’s prospectus. Such election, or any revocation thereof,","page_number":204,"box":{"x":116,"y":575,"width":746,"height":12}},{"id":"4c511cf0-fa1c-41a3-958b-d721c12f153e","block_type":"box","text":"must be made in writing to the Transfer Agent, and will become effective with respect to dividends paid","page_number":204,"box":{"x":117,"y":591,"width":767,"height":12}},{"id":"c3948bf9-b565-4ae5-a6b3-5edf297a238b","block_type":"box","text":"after its receipt by the Transfer Agent.","page_number":204,"box":{"x":116,"y":606,"width":286,"height":12}},{"id":"584d1ee9-7a67-48e6-a09a-16e66fc7b2b6","block_type":"box","text":"Systematic Withdrawal Plans","page_number":204,"box":{"x":116,"y":637,"width":237,"height":12}},{"id":"7f26776b-17f6-4338-9cd3-70b89cfcf676","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan","page_number":204,"box":{"x":116,"y":661,"width":747,"height":12}},{"id":"497420ad-4b07-4153-a5fd-0df5cbc9c64f","block_type":"box","text":"(“SWP”). Upon commencement of the SWP, the account must have a current value of $10,000 or more","page_number":204,"box":{"x":117,"y":675,"width":765,"height":13}},{"id":"dd86300f-a678-4afe-80d5-b43fa9b01f3a","block_type":"box","text":"in a Fund. Shareholders may elect to receive automatic cash payments of $50 or more at any interval.","page_number":204,"box":{"x":117,"y":691,"width":755,"height":13}},{"id":"99be2eca-cd1e-48e1-84be-4646a8218745","block_type":"box","text":"You may choose any day for the withdrawal. If no day is specified, the withdrawals will be processed","page_number":204,"box":{"x":116,"y":707,"width":745,"height":12}},{"id":"9a9abe70-e225-4942-add5-8b761852d78c","block_type":"box","text":"on the 25th day of the month or, if such day is not a business day, on the prior business day and are","page_number":204,"box":{"x":116,"y":723,"width":744,"height":12}},{"id":"e6dd64d7-c196-4697-ba79-1645b707bca8","block_type":"box","text":"paid promptly thereafter. An investor may utilize the SWP by completing the Systematic Withdrawal","page_number":204,"box":{"x":117,"y":738,"width":736,"height":12}},{"id":"c5964b5e-f84c-4f68-9998-32e01becc26a","block_type":"box","text":"Plan Application Form which may be obtained by visiting our website at www.blackrock.com.","page_number":204,"box":{"x":117,"y":754,"width":685,"height":12}},{"id":"c71c0b54-0d89-4402-8585-71b2e7559521","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the","page_number":204,"box":{"x":116,"y":785,"width":757,"height":12}},{"id":"38da2b12-0d3d-4f77-96c8-bf023dc5b1b8","block_type":"box","text":"account will be depleted. To participate in the SWP, shareholders must have their dividends","page_number":204,"box":{"x":116,"y":800,"width":681,"height":12}},{"id":"921c577f-bc24-4673-a542-a6869c56e440","block_type":"box","text":"automatically reinvested. Shareholders may change or cancel the SWP at any time, upon written","page_number":204,"box":{"x":116,"y":816,"width":717,"height":12}},{"id":"d8e5f679-a7fc-4635-9e60-b1891a796a21","block_type":"box","text":"notice to the Fund, or by calling the Fund at (800) 441-7762. Purchases of additional Investor A or","page_number":204,"box":{"x":117,"y":831,"width":731,"height":12}},{"id":"9cf21c73-b70b-489e-81b1-9f04f82d43ea","block_type":"box","text":"Investor P Shares of the Fund concurrently with withdrawals may be disadvantageous to investors","page_number":204,"box":{"x":117,"y":847,"width":733,"height":12}},{"id":"7aa043e8-ea61-4104-8af2-1d3e73e4a7d9","block_type":"box","text":"because of the sales charges involved and, therefore, are discouraged. No CDSC will be assessed on","page_number":204,"box":{"x":117,"y":862,"width":762,"height":12}},{"id":"ecb480be-b901-45f4-971c-0835659c65b6","block_type":"box","text":"redemptions of Investor C Shares made through the SWP that do not exceed 12% of the original","page_number":204,"box":{"x":117,"y":878,"width":721,"height":12}},{"id":"181b3870-101e-4e2e-b2da-240cdfd69734","block_type":"box","text":"II-154","page_number":204,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"406ec547-a150-4e2f-a5ca-4ab27276279b","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":204,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"00c8b499-3211-4a5a-960a-1b6a1ddbeb6f","block_type":"box","text":"investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP","page_number":205,"box":{"x":117,"y":87,"width":680,"height":12}},{"id":"7b2df949-545f-4747-b5ab-19f22181186c","block_type":"box","text":"redemptions of Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly),","page_number":205,"box":{"x":117,"y":102,"width":759,"height":13}},{"id":"1483e1a3-7d46-4600-a6b1-ca94276c0428","block_type":"box","text":"3% (quarterly) and 6% (semi-annually), respectively, of an account’s NAV on the redemption date.","page_number":205,"box":{"x":116,"y":118,"width":734,"height":12}},{"id":"7b3cee12-47d0-476a-a06b-cfff493d8524","block_type":"box","text":"SWP redemptions of Investor C Shares in excess of this limit are still subject to the applicable CDSC.","page_number":205,"box":{"x":116,"y":134,"width":758,"height":12}},{"id":"d282b109-4c7d-4b22-88cf-2a9e89ca9a59","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above","page_number":205,"box":{"x":117,"y":164,"width":754,"height":12}},{"id":"e2f9f099-0d5c-4d8a-be57-1914d8b36b3d","block_type":"box","text":"(see “How to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,”","page_number":205,"box":{"x":117,"y":180,"width":752,"height":12}},{"id":"8738d063-ef5b-4174-b9c4-c104ea3379ef","block_type":"box","text":"as applicable, in the Fund’s Prospectus) and the SWP at the same time.","page_number":205,"box":{"x":116,"y":195,"width":540,"height":12}},{"id":"a6e986f2-e983-4dfd-a0c1-2bc6faae9496","block_type":"box","text":"Dividend Allocation Plan","page_number":205,"box":{"x":117,"y":226,"width":201,"height":9}},{"id":"66a246a5-508d-44da-bf92-c05137235778","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and","page_number":205,"box":{"x":116,"y":252,"width":771,"height":11}},{"id":"a77a52e6-3dbf-4599-b78b-ff86cfaa9265","block_type":"box","text":"any other distributions from any Eligible Fund (which means funds so designated by the Distributor","page_number":205,"box":{"x":116,"y":267,"width":737,"height":12}},{"id":"deb4c0db-7687-40b8-8c41-522039166dba","block_type":"box","text":"from time to time) automatically invested at NAV in one other such Eligible Fund designated by the","page_number":205,"box":{"x":116,"y":282,"width":737,"height":13}},{"id":"6d21b5e2-d8be-410c-a5c0-91b411094cf3","block_type":"box","text":"shareholder, provided the account into which the dividends and distributions are directed is initially","page_number":205,"box":{"x":116,"y":298,"width":735,"height":12}},{"id":"58319b65-3d8f-4473-b778-a410e1a417b5","block_type":"box","text":"funded with the requisite minimum amount.","page_number":205,"box":{"x":116,"y":313,"width":325,"height":12}},{"id":"92344239-f23c-4d32-b6b5-1c13d8faa848","block_type":"box","text":"P","page_number":205,"box":{"x":428,"y":359,"width":9,"height":10}},{"id":"9e8a47f8-fbe1-4c23-aa83-ffbf8f996879","block_type":"box","text":"RICING","page_number":205,"box":{"x":439,"y":362,"width":45,"height":7}},{"id":"f1548cb0-e1c8-4727-bc99-9c52ebd2f987","block_type":"box","text":"OF","page_number":205,"box":{"x":491,"y":362,"width":17,"height":7}},{"id":"ee48254c-e1e6-45f8-926c-fb928e0266c4","block_type":"box","text":"S","page_number":205,"box":{"x":509,"y":359,"width":15,"height":10}},{"id":"5d7a8bff-d616-48ff-aeb8-789b530fe2bd","block_type":"box","text":"HARES","page_number":205,"box":{"x":526,"y":362,"width":46,"height":7}},{"id":"11d151ac-d4f6-4ec7-9dbe-f8cfdbc77084","block_type":"box","text":"Determination of Net Asset Value","page_number":205,"box":{"x":117,"y":390,"width":269,"height":10}},{"id":"33676e0a-1532-485b-9d44-2ba124af47a3","block_type":"box","text":"Valuation of Shares.","page_number":205,"box":{"x":116,"y":413,"width":160,"height":10}},{"id":"8b8861a5-64d6-4175-a0c7-02411ec84e02","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the","page_number":205,"box":{"x":278,"y":413,"width":602,"height":12}},{"id":"8722796f-eb5a-48d5-b007-1ccbc49a63f3","block_type":"box","text":"close of regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day","page_number":205,"box":{"x":116,"y":429,"width":752,"height":12}},{"id":"8ee4a5d0-e5c8-4e9f-bdfe-dfa09fcdd41e","block_type":"box","text":"the NYSE is open. Valuation of assets held by a Fund is as follows:","page_number":205,"box":{"x":116,"y":444,"width":505,"height":12}},{"id":"c7988d00-e9cb-47ea-8b9f-a0f39bb6cd90","block_type":"box","text":"Equity Investments.","page_number":205,"box":{"x":117,"y":475,"width":157,"height":12}},{"id":"99e4aced-bb4c-4a9d-90dc-1f53a4afd62f","block_type":"box","text":"Equity securities traded on a recognized securities exchange (e.g., NYSE), on","page_number":205,"box":{"x":275,"y":475,"width":589,"height":12}},{"id":"b0cfd820-10c5-4be4-b7d2-cd50eeac903b","block_type":"box","text":"separate trading boards of a securities exchange or through a market system that provides","page_number":205,"box":{"x":116,"y":490,"width":679,"height":12}},{"id":"82432133-906d-4505-bf61-8228667fc387","block_type":"box","text":"contemporaneous transaction pricing information (each, an “Exchange”) are valued using information","page_number":205,"box":{"x":116,"y":506,"width":756,"height":12}},{"id":"710e0e64-b6e0-4a68-afd1-d59a8c5a2419","block_type":"box","text":"obtained via independent pricing services, generally at the Exchange closing price or if an Exchange","page_number":205,"box":{"x":116,"y":521,"width":751,"height":12}},{"id":"12167f42-2ad5-47db-b0fb-25275e01f54a","block_type":"box","text":"closing price is not available, the last traded price on that Exchange prior to the time as of which the","page_number":205,"box":{"x":116,"y":537,"width":745,"height":12}},{"id":"03cd71bf-0522-4399-ac98-53508f9334e7","block_type":"box","text":"assets or liabilities are valued. However, under certain circumstances, other means of determining","page_number":205,"box":{"x":116,"y":552,"width":734,"height":12}},{"id":"1e1f61b7-2ac1-40a4-b1af-e13798a31470","block_type":"box","text":"current market value may be used. If an equity security is traded on more than one Exchange, the","page_number":205,"box":{"x":116,"y":568,"width":732,"height":12}},{"id":"6c8aa029-c9f6-4adf-863d-3a7dc4d89f71","block_type":"box","text":"current market value of the security where it is primarily traded generally will be used. In the event that","page_number":205,"box":{"x":116,"y":583,"width":764,"height":12}},{"id":"9012274e-789a-42bc-a4bc-d2ae8bc27015","block_type":"box","text":"there are no sales involving an equity security held by a Fund on a day on which the Fund values such","page_number":205,"box":{"x":116,"y":599,"width":766,"height":12}},{"id":"4fdba55c-aa32-4f2f-b935-1faf74a75e9e","block_type":"box","text":"security, the last bid (long positions) or ask (short positions) price, if available, will be used as the value","page_number":205,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"0738e6a5-537d-4abf-ab05-eb5090af30e0","block_type":"box","text":"of such security. If a Fund holds both long and short positions in the same security, the last bid price","page_number":205,"box":{"x":116,"y":630,"width":748,"height":12}},{"id":"82d90de9-ad7f-4dcc-b20c-9f3a42dd482a","block_type":"box","text":"will be applied to securities held long and the last ask price will be applied to securities sold short. If no","page_number":205,"box":{"x":116,"y":645,"width":766,"height":12}},{"id":"befe9ce0-d7e6-4474-a6e6-7a3c554233c7","block_type":"box","text":"bid or ask price is available on a day on which a Fund values such security, the prior day’s price will be","page_number":205,"box":{"x":117,"y":661,"width":761,"height":12}},{"id":"49b9d456-88cf-4acd-a9dc-9908af155ca7","block_type":"box","text":"used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of the","page_number":205,"box":{"x":117,"y":676,"width":743,"height":12}},{"id":"37b9ee99-5bc9-4a75-86f6-99c0e5a93512","block_type":"box","text":"security, in which case such asset would be treated as a Fair Value Asset (as defined below).","page_number":205,"box":{"x":116,"y":692,"width":692,"height":12}},{"id":"11308559-754b-4126-83f4-d55cf143a181","block_type":"box","text":"Fixed-Income Investments.","page_number":205,"box":{"x":117,"y":723,"width":214,"height":9}},{"id":"2ee0dec9-3970-4d0b-985c-72076ce30919","block_type":"box","text":"Fixed-income securities are generally valued using bid prices provided by","page_number":205,"box":{"x":338,"y":723,"width":544,"height":12}},{"id":"3a29fad1-48a5-4933-8f84-38ead1672014","block_type":"box","text":"dealers or prices (including evaluated prices) supplied by the Fund’s approved independent third-party","page_number":205,"box":{"x":116,"y":738,"width":759,"height":12}},{"id":"fa23918a-c588-4589-9f9c-dcdc71a8f218","block_type":"box","text":"pricing services, each in accordance with the Valuation Procedures. The pricing services may use","page_number":205,"box":{"x":117,"y":754,"width":725,"height":12}},{"id":"eba6675e-4932-4f42-9cb7-ffd674dca1f7","block_type":"box","text":"valuation models that utilize certain inputs and assumptions to derive values, including transaction data","page_number":205,"box":{"x":116,"y":769,"width":765,"height":12}},{"id":"2d01aaf3-bb1a-4ef5-bc57-dd26f376790f","block_type":"box","text":"(e.g., recent representative bids and offers), credit quality information, perceived market movements,","page_number":205,"box":{"x":117,"y":785,"width":746,"height":12}},{"id":"dadeb8d4-0d2a-4c40-9481-df4112518baa","block_type":"box","text":"news, and other relevant information and by other methods, which may include consideration of: yields","page_number":205,"box":{"x":117,"y":800,"width":761,"height":12}},{"id":"42fa495f-4381-4df4-a84d-7d828bc0f49b","block_type":"box","text":"or prices of securities of comparable quality, coupon, maturity and type; indications as to values from","page_number":205,"box":{"x":116,"y":816,"width":747,"height":12}},{"id":"6593a644-1358-472e-8e85-9ab4708ec3dd","block_type":"box","text":"dealers; general market conditions; and/or other factors and assumptions. Pricing services generally","page_number":205,"box":{"x":116,"y":831,"width":749,"height":12}},{"id":"b9f1df07-d080-4625-84aa-49fafcd6f22d","block_type":"box","text":"value fixed-income securities assuming orderly transactions of an institutional round lot size, but the","page_number":205,"box":{"x":116,"y":847,"width":745,"height":12}},{"id":"fc1ad612-03cb-4b5a-8228-63f041409124","block_type":"box","text":"Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain","page_number":205,"box":{"x":117,"y":862,"width":752,"height":12}},{"id":"03683f64-ec16-4a5d-b48a-659ef0858b82","block_type":"box","text":"asset classes may trade at lower prices than institutional round lots, and the value ultimately realized","page_number":205,"box":{"x":116,"y":878,"width":753,"height":12}},{"id":"ea9060f6-5ac7-402e-9b0b-a5ad0edfd688","block_type":"box","text":"II-155","page_number":205,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"5c5a72c2-eac9-4c5b-b7f5-6e12bd8cc68e","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":205,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"1bc0271b-b303-4e1b-879f-c3dab9607a40","block_type":"box","text":"when the securities are sold could differ from the prices used by a Fund. The amortized cost method of","page_number":206,"box":{"x":116,"y":87,"width":769,"height":12}},{"id":"739b3024-6daf-4863-9eab-eb3a28d068e2","block_type":"box","text":"valuation may be used with respect to debt obligations with 60 days or less remaining to maturity","page_number":206,"box":{"x":116,"y":103,"width":723,"height":12}},{"id":"6c04767f-591c-4063-a729-ac6079464c0e","block_type":"box","text":"unless such method does not represent fair value. Certain fixed-income investments, including asset","page_number":206,"box":{"x":117,"y":118,"width":750,"height":12}},{"id":"a7ffba2d-7b1b-46fb-b3f0-f97147e0014d","block_type":"box","text":"backed and mortgage related securities, may be valued based on valuation models that consider the","page_number":206,"box":{"x":117,"y":134,"width":751,"height":12}},{"id":"7f435a7a-c229-4a51-8654-6756091eb1c1","block_type":"box","text":"estimated cash flows of each tranche of the issuer, establish a benchmark yield and develop an","page_number":206,"box":{"x":116,"y":149,"width":715,"height":12}},{"id":"685d136d-0374-41a6-8c4f-68119a4d9a2f","block_type":"box","text":"estimated tranche specific spread to the benchmark yield based on the unique attributes of the","page_number":206,"box":{"x":116,"y":165,"width":707,"height":12}},{"id":"83ddabe3-1e34-4ef2-adcb-6031c093a59e","block_type":"box","text":"tranche.","page_number":206,"box":{"x":116,"y":180,"width":65,"height":10}},{"id":"55414982-5d0a-49fb-84b4-df1606f390e0","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":206,"box":{"x":116,"y":211,"width":379,"height":12}},{"id":"cefe0acf-5b31-45c5-b1c1-d4dcd74923ce","block_type":"box","text":"Exchange-traded equity options (except ETF","page_number":206,"box":{"x":497,"y":211,"width":342,"height":12}},{"id":"771ab563-ae44-4129-b989-ac7caa9086de","block_type":"box","text":"options, equity index options or those that are customized) for which market quotations are readily","page_number":206,"box":{"x":116,"y":227,"width":733,"height":12}},{"id":"c09fb148-f29f-414e-b5c9-368a9604538c","block_type":"box","text":"available are valued at the mean of the last bid and ask prices as quoted on the Exchange or the board","page_number":206,"box":{"x":116,"y":242,"width":771,"height":12}},{"id":"9134ec19-65b2-4460-9ba3-ce29c4a1638c","block_type":"box","text":"of trade on which such options are traded. In the event that there is no mean price available for an","page_number":206,"box":{"x":116,"y":258,"width":734,"height":11}},{"id":"f6ab9dfc-f9d4-4458-a8aa-0a640cabacea","block_type":"box","text":"exchange-traded equity option held by a Fund on a day on which the Fund values such option, the last","page_number":206,"box":{"x":116,"y":273,"width":766,"height":12}},{"id":"e1bdba9c-33a0-4e69-98a5-f4f67b4edfee","block_type":"box","text":"bid (long positions) or ask (short positions) price, if available, will be used as the value of such option. If","page_number":206,"box":{"x":117,"y":289,"width":771,"height":12}},{"id":"18621215-de4c-4d08-bb79-95989a49d944","block_type":"box","text":"no bid or ask price is available on a day on which a Fund values such option, the prior day’s price will","page_number":206,"box":{"x":117,"y":304,"width":755,"height":12}},{"id":"59006522-c96d-4193-a9fc-ec8fa69f6d8a","block_type":"box","text":"be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":206,"box":{"x":117,"y":320,"width":743,"height":12}},{"id":"9b93e53b-4caf-46cb-a325-203f0fa3c4ca","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange","page_number":206,"box":{"x":116,"y":335,"width":729,"height":12}},{"id":"b2f99f14-7048-4ceb-9a83-71d6bb18790d","block_type":"box","text":"traded equity options, ETF options, equity index options and OTC derivatives, may be valued using a","page_number":206,"box":{"x":116,"y":351,"width":755,"height":12}},{"id":"6b61e83d-fd24-4d36-bde9-da2f1c1529a8","block_type":"box","text":"mathematical model which may incorporate a number of market data factors. Financial futures","page_number":206,"box":{"x":117,"y":366,"width":703,"height":12}},{"id":"7e375902-886e-4aa8-9609-2b39220382b1","block_type":"box","text":"contracts and options thereon, which are traded on exchanges, are valued at their last sale price or","page_number":206,"box":{"x":116,"y":382,"width":741,"height":12}},{"id":"a6ac5708-e8c1-4b62-8785-25235c88f1be","block_type":"box","text":"settle price as of the close of such exchanges. Swap agreements and other derivatives are generally","page_number":206,"box":{"x":116,"y":397,"width":752,"height":12}},{"id":"a8cce326-00a0-41af-b55a-a93d6ab2ab79","block_type":"box","text":"valued daily based upon quotations from market makers or by a pricing service in accordance with the","page_number":206,"box":{"x":116,"y":413,"width":763,"height":12}},{"id":"b59aeaf4-366a-43d7-93b9-629ec6ec4b37","block_type":"box","text":"Valuation Procedures.","page_number":206,"box":{"x":116,"y":428,"width":170,"height":10}},{"id":"b4dd6e34-4a12-405b-89d4-1199afe6786d","block_type":"box","text":"Underlying Funds.","page_number":206,"box":{"x":117,"y":459,"width":145,"height":12}},{"id":"9b17b6bb-aef3-43fa-bde7-944db77d2117","block_type":"box","text":"Shares of underlying open-end funds (including money market funds) are valued","page_number":206,"box":{"x":263,"y":459,"width":609,"height":12}},{"id":"f076c395-9866-45ef-b2d5-a9b880d364a0","block_type":"box","text":"at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued at their","page_number":206,"box":{"x":116,"y":475,"width":755,"height":12}},{"id":"7ed95552-13e0-41df-a917-7ef504524817","block_type":"box","text":"most recent closing price.","page_number":206,"box":{"x":117,"y":490,"width":194,"height":12}},{"id":"a94b98be-09de-40f8-8c50-6d1a42eeae31","block_type":"box","text":"General Valuation Information.","page_number":206,"box":{"x":116,"y":521,"width":244,"height":10}},{"id":"41d2eec0-aef0-4676-8f80-1f0bbf123a9b","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker","page_number":206,"box":{"x":361,"y":521,"width":520,"height":12}},{"id":"7b49c604-2d7d-4f14-9e2a-b599dd79e700","block_type":"box","text":"dealers or market makers to value each Fund’s securities and other assets and liabilities are based on","page_number":206,"box":{"x":116,"y":537,"width":764,"height":9}},{"id":"47133340-00e8-4598-833f-e1aa53a8b19f","block_type":"box","text":"information available at the time the Fund values its assets and liabilities. In the event that a pricing","page_number":206,"box":{"x":117,"y":552,"width":740,"height":12}},{"id":"fb9b62f0-fdb6-4be3-853a-9f2e8526352d","block_type":"box","text":"service quotation is revised or updated subsequent to the day on which the Fund valued such security,","page_number":206,"box":{"x":116,"y":568,"width":767,"height":12}},{"id":"a0220152-59a4-4e5b-b0e3-e28c61c6e63d","block_type":"box","text":"the revised pricing service quotation generally will be applied prospectively. Such determination will be","page_number":206,"box":{"x":116,"y":583,"width":764,"height":12}},{"id":"aec3e94d-3172-4ee2-8932-26203255bfc9","block_type":"box","text":"made considering pertinent facts and circumstances surrounding the revision.","page_number":206,"box":{"x":117,"y":599,"width":581,"height":12}},{"id":"276a12ab-d2a2-4f0f-8bfb-25af4b517d4c","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third","page_number":206,"box":{"x":117,"y":622,"width":723,"height":12}},{"id":"39949058-fb02-45af-9c7a-76bd7f3b442c","block_type":"box","text":"party pricing services, which may use, without limitation, evaluated pricing methods that take into","page_number":206,"box":{"x":117,"y":638,"width":723,"height":11}},{"id":"faab9dd3-673a-45f0-866c-a1f0792d968e","block_type":"box","text":"consideration market indexes, matrices, yield curves and other specified inputs and assumptions. This","page_number":206,"box":{"x":116,"y":653,"width":764,"height":12}},{"id":"31c02d8f-1576-42ed-bb37-3b02df254176","block_type":"box","text":"may result in the assets being valued at a price different from the price that would have been","page_number":206,"box":{"x":117,"y":668,"width":687,"height":12}},{"id":"e7ecf94b-95e3-4f26-aa09-fd1b1298120a","block_type":"box","text":"determined had the evaluated pricing method not been used. The price the Fund could receive upon","page_number":206,"box":{"x":116,"y":684,"width":744,"height":12}},{"id":"f9f25d0a-75ed-47b9-bc72-cae393bc4553","block_type":"box","text":"the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment,","page_number":206,"box":{"x":116,"y":699,"width":742,"height":13}},{"id":"27227410-58fa-4d79-84cf-d2e48dca4320","block_type":"box","text":"particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":206,"box":{"x":117,"y":715,"width":718,"height":12}},{"id":"ca7bef7e-b19e-44b9-b6ba-0bed73247411","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received","page_number":206,"box":{"x":117,"y":731,"width":724,"height":12}},{"id":"70bdf9e2-a885-4017-8399-3702351662cc","block_type":"box","text":"upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could","page_number":206,"box":{"x":117,"y":746,"width":747,"height":12}},{"id":"a025757d-366e-44d7-a285-650fe16dc676","block_type":"box","text":"realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The","page_number":206,"box":{"x":117,"y":761,"width":758,"height":13}},{"id":"fadb2af9-901a-4af1-b5ee-ae4d857301ad","block_type":"box","text":"Fund’s ability to value its investment may also be impacted by technological issues and/or errors by","page_number":206,"box":{"x":117,"y":777,"width":738,"height":12}},{"id":"19e175e5-9e34-4570-8f57-5bf0d5667adf","block_type":"box","text":"pricing services or other third-party service providers.","page_number":206,"box":{"x":117,"y":793,"width":393,"height":12}},{"id":"3b033226-57e9-4e96-b078-96c17b723836","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security","page_number":206,"box":{"x":117,"y":823,"width":761,"height":13}},{"id":"1160d0b8-453a-4c0c-8d73-21e2fde1928d","block_type":"box","text":"which is deemed not to be representative of the fair market value of such security, the security will be","page_number":206,"box":{"x":116,"y":839,"width":756,"height":12}},{"id":"798004cf-6426-4afe-a3b5-372a70bb08b0","block_type":"box","text":"valued by, under the direction of or in accordance with a method approved by BlackRock, the Fund’s","page_number":206,"box":{"x":116,"y":854,"width":752,"height":13}},{"id":"ad14b0be-4956-4016-9795-99c9a42c9c5e","block_type":"box","text":"valuation designee, as reflecting fair value. All other assets and liabilities (including securities for which","page_number":206,"box":{"x":116,"y":870,"width":767,"height":12}},{"id":"47fe5705-0fcf-4520-bc05-0c5319c8a0e7","block_type":"box","text":"II-156","page_number":206,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"350fb8a8-a31e-4c0f-8306-018187292dea","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":206,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"cfa39a5a-dc50-4440-b28f-bbbeba3aae33","block_type":"box","text":"market quotations are not readily available) held by a Fund (including restricted securities and private","page_number":207,"box":{"x":117,"y":87,"width":756,"height":12}},{"id":"3c6779b6-c938-4a48-8792-8e28e2b7a6f3","block_type":"box","text":"market investments, as applicable) are valued at fair value as determined in good faith by BlackRock","page_number":207,"box":{"x":117,"y":102,"width":752,"height":13}},{"id":"13d6d89f-8c28-49a0-9195-cba4442c898c","block_type":"box","text":"pursuant to the Valuation Procedures. Any assets and liabilities which are denominated in a foreign","page_number":207,"box":{"x":117,"y":118,"width":740,"height":12}},{"id":"95e71dd9-71e5-447c-8762-3dcb57641ab7","block_type":"box","text":"currency are translated into U.S. dollars at the prevailing market rates.","page_number":207,"box":{"x":116,"y":134,"width":527,"height":12}},{"id":"623de69a-420a-451d-b2b1-9a16b8c0a6ad","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets","page_number":207,"box":{"x":117,"y":165,"width":754,"height":12}},{"id":"ffe365cb-40bd-42bd-8784-f8c944185875","block_type":"box","text":"on days on which a Fund’s NAV is not calculated. In","page_number":207,"box":{"x":116,"y":180,"width":392,"height":12}},{"id":"d3426960-31e8-4c63-9841-00e4a56d1fb1","block_type":"box","text":"such cases, the NAV of a Fund’s shares may be","page_number":207,"box":{"x":508,"y":180,"width":364,"height":12}},{"id":"0bcfef5a-6087-4fbf-aeac-b5d64145d04b","block_type":"box","text":"significantly affected on days when investors can neither purchase nor redeem shares of the Fund.","page_number":207,"box":{"x":116,"y":196,"width":739,"height":12}},{"id":"c1585589-9bed-473d-b9b5-0225d0e3a456","block_type":"box","text":"Fair Value.","page_number":207,"box":{"x":117,"y":227,"width":83,"height":9}},{"id":"18f9ae54-bf47-4b3c-949d-675371828527","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be","page_number":207,"box":{"x":201,"y":227,"width":639,"height":12}},{"id":"27d890ff-2e85-4ff9-b1e6-51adda87b762","block_type":"box","text":"unreliable, a Fund’s investments are valued at fair value (“Fair Value Assets”). Fair Value Assets are","page_number":207,"box":{"x":117,"y":242,"width":749,"height":12}},{"id":"9c3b0c58-e0b3-4b0a-9be6-c644c1e9b6e4","block_type":"box","text":"valued by BlackRock in accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the","page_number":207,"box":{"x":116,"y":258,"width":747,"height":12}},{"id":"87f08495-57ee-42d3-b1cd-38f58da001c0","block_type":"box","text":"Investment Company Act, the Board of Directors has designated BlackRock as the valuation designee","page_number":207,"box":{"x":117,"y":273,"width":763,"height":12}},{"id":"afb30e6e-cd59-47fe-9c3e-87379c8b449f","block_type":"box","text":"for the respective Funds for which it serves as investment adviser. BlackRock may reasonably","page_number":207,"box":{"x":116,"y":289,"width":704,"height":12}},{"id":"1af51292-f52b-4170-b93c-f8d7930c4904","block_type":"box","text":"conclude that a market quotation is not readily available or is unreliable if, among other things, a","page_number":207,"box":{"x":116,"y":304,"width":718,"height":12}},{"id":"c4d24348-315f-48d9-ad39-9780abb215eb","block_type":"box","text":"security or other asset or liability does not have a price source due to its complete lack of trading, if","page_number":207,"box":{"x":116,"y":320,"width":739,"height":12}},{"id":"d446185c-7c90-43c2-9f67-4994b19c3c91","block_type":"box","text":"BlackRock believes a market quotation from a broker-dealer or other source is unreliable (e.g., where it","page_number":207,"box":{"x":117,"y":335,"width":770,"height":12}},{"id":"93856440-84d4-4c9e-817e-9444f473dce0","block_type":"box","text":"varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":207,"box":{"x":116,"y":351,"width":765,"height":12}},{"id":"ba4afff8-dd1f-414f-8218-665e049ebefa","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or","page_number":207,"box":{"x":116,"y":366,"width":735,"height":12}},{"id":"5f7e4af1-e747-4437-8abc-41f50ad2f810","block_type":"box","text":"liability is only thinly traded or due to the occurrence of a significant event subsequent to the most","page_number":207,"box":{"x":117,"y":382,"width":728,"height":12}},{"id":"d7934ab1-f9ba-4c34-b166-ea821d8c00ce","block_type":"box","text":"recent market quotation. For this purpose, a “significant event” is deemed to occur if BlackRock","page_number":207,"box":{"x":117,"y":397,"width":711,"height":12}},{"id":"822319d5-7472-4815-ad52-fff3bdaa407f","block_type":"box","text":"determines, in its reasonable business judgment, that an event has occurred after the close of trading","page_number":207,"box":{"x":116,"y":413,"width":759,"height":12}},{"id":"f86144b1-c3ba-43e6-8b86-b621a25d4916","block_type":"box","text":"for an asset or liability but prior to or at the time of pricing a Fund’s assets or liabilities, is likely to cause","page_number":207,"box":{"x":116,"y":428,"width":771,"height":12}},{"id":"7e2f24dd-3a40-4a8b-8df1-c189b17a2052","block_type":"box","text":"a material change to the last exchange closing price or closing market price of one or more assets held","page_number":207,"box":{"x":116,"y":444,"width":770,"height":12}},{"id":"9a6d21c5-5cb2-4e08-a5c6-4bdb2edc8f50","block_type":"box","text":"by, or liabilities of, the Fund. On any day the NYSE is open and a foreign market or the primary","page_number":207,"box":{"x":117,"y":459,"width":709,"height":12}},{"id":"f37210ef-4a05-4fd2-b9d0-cb00f5dec6c4","block_type":"box","text":"exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued","page_number":207,"box":{"x":116,"y":475,"width":748,"height":12}},{"id":"c29ff1d6-3ece-4d8a-a483-e82db42ca42f","block_type":"box","text":"using the prior day’s price, provided that BlackRock is not aware of any significant event or other","page_number":207,"box":{"x":117,"y":490,"width":720,"height":12}},{"id":"a8c87152-8807-4f27-a9c6-9aaff83c4535","block_type":"box","text":"information that would cause such price to no longer reflect the fair value of the asset or liability, in","page_number":207,"box":{"x":117,"y":506,"width":733,"height":12}},{"id":"8c1ec286-c0c2-4672-993f-19ada97040e2","block_type":"box","text":"which case such asset or liability would be treated as a Fair Value Asset. For certain foreign assets, a","page_number":207,"box":{"x":116,"y":521,"width":759,"height":12}},{"id":"f2f2d452-fb53-470c-8c40-9e831c67c9ee","block_type":"box","text":"third-party vendor supplies evaluated, systematic fair value pricing based upon the movement of a","page_number":207,"box":{"x":116,"y":537,"width":733,"height":12}},{"id":"568e9f30-e6ef-47d2-9238-fad6faf81e09","block_type":"box","text":"proprietary multi-factor model after the relevant foreign markets have closed. This systematic fair value","page_number":207,"box":{"x":117,"y":552,"width":767,"height":12}},{"id":"6b8be584-0520-4471-8a6e-be31b8ba8516","block_type":"box","text":"pricing methodology is designed to correlate the prices of foreign assets in one or more non-U.S.","page_number":207,"box":{"x":117,"y":568,"width":723,"height":12}},{"id":"0316341e-d817-412c-b65e-72737ce74d28","block_type":"box","text":"markets following the close of the local markets to the prices that might have prevailed as of a Fund’s","page_number":207,"box":{"x":117,"y":583,"width":756,"height":12}},{"id":"9fcf7338-a517-4787-bcf5-f3c6df73a523","block_type":"box","text":"pricing time.","page_number":207,"box":{"x":117,"y":599,"width":94,"height":12}},{"id":"0cd64133-562f-445f-b79f-9ab55f8456e8","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by","page_number":207,"box":{"x":117,"y":630,"width":714,"height":12}},{"id":"9fc13613-d46d-43ac-a1d9-fec5492400ec","block_type":"box","text":"investment type and significant inputs used in the fair valuation of Fund assets or liabilities. In addition,","page_number":207,"box":{"x":117,"y":645,"width":765,"height":12}},{"id":"467718f4-ef51-49f0-881b-0fbac95454ec","block_type":"box","text":"the Funds’ accounting agent assists BlackRock by periodically endeavoring to confirm the prices it","page_number":207,"box":{"x":116,"y":661,"width":729,"height":12}},{"id":"54f1e0ef-9423-4699-b882-1143492776db","block_type":"box","text":"receives from all third-party pricing services, index providers and broker-dealers. BlackRock regularly","page_number":207,"box":{"x":117,"y":676,"width":750,"height":12}},{"id":"9032b78c-b115-47de-853d-3119f34dbafe","block_type":"box","text":"evaluates the values assigned to the securities and other assets and liabilities of the Funds.","page_number":207,"box":{"x":116,"y":692,"width":679,"height":12}},{"id":"f7d9d887-26fb-4be4-9a87-f678d7bbc4d8","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a","page_number":207,"box":{"x":116,"y":723,"width":743,"height":12}},{"id":"fe666fb6-f19d-4690-8fb7-eacab373ce3b","block_type":"box","text":"Fund might reasonably expect to receive from the current sale of that asset or liability in an","page_number":207,"box":{"x":117,"y":738,"width":672,"height":12}},{"id":"9748a583-c117-47eb-a244-bd2505463493","block_type":"box","text":"arm’s-length transaction on the date on which the asset or liability is being valued, and does not seek","page_number":207,"box":{"x":116,"y":754,"width":751,"height":12}},{"id":"28166d32-6311-4dc8-9077-51d16800bf4f","block_type":"box","text":"to determine the price a Fund might reasonably expect to receive for selling an asset or liability at a","page_number":207,"box":{"x":116,"y":769,"width":736,"height":12}},{"id":"e61ab4dc-4ad8-4ed8-bcb9-f9e6959890de","block_type":"box","text":"later time or if it holds the asset or liability to maturity. Fair value determinations will be based upon all","page_number":207,"box":{"x":117,"y":785,"width":753,"height":12}},{"id":"a922bb15-2259-4557-b6de-02561bf20b94","block_type":"box","text":"available factors that BlackRock deems relevant at the time of the determination, and may be based on","page_number":207,"box":{"x":116,"y":800,"width":765,"height":12}},{"id":"35f25de7-495b-48a2-b842-d1f550905bb3","block_type":"box","text":"analytical values determined by BlackRock using proprietary or third-party valuation models.","page_number":207,"box":{"x":116,"y":816,"width":683,"height":12}},{"id":"fcd0a8ab-7f47-4387-9b84-8438b09a6fce","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. When determining","page_number":207,"box":{"x":117,"y":847,"width":764,"height":12}},{"id":"9a28af2f-820b-4ccd-9eca-95810c2f02af","block_type":"box","text":"the fair value of an investment, one or more fair value methodologies may be used (depending on","page_number":207,"box":{"x":116,"y":862,"width":730,"height":12}},{"id":"a3730a19-b250-4846-a313-585d83422883","block_type":"box","text":"certain factors, including the asset type). For example, the investment may be initially priced based on","page_number":207,"box":{"x":116,"y":878,"width":762,"height":12}},{"id":"97b0ce6e-4c29-4879-b806-9e5fa03e2071","block_type":"box","text":"II-157","page_number":207,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"b633e1a9-fb93-4d09-94cc-bccce7f01753","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":207,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"dcccdcf9-da75-44b5-9839-989027f3ba83","block_type":"box","text":"the original cost of the investment or, alternatively, using proprietary or third-party models that may rely","page_number":208,"box":{"x":116,"y":87,"width":769,"height":12}},{"id":"e986f480-b79e-4a99-85d6-5d34979b5119","block_type":"box","text":"upon one or more unobservable inputs. Prices of actual, executed or historical transactions in the","page_number":208,"box":{"x":117,"y":102,"width":726,"height":12}},{"id":"c6c1660e-bd05-43de-9092-7f56c7c7def8","block_type":"box","text":"relevant investment (or comparable instruments) or, where appropriate, an appraisal by a third-party","page_number":208,"box":{"x":117,"y":118,"width":747,"height":12}},{"id":"c5b42f5a-abfd-45cb-8f27-64a541ec9bd7","block_type":"box","text":"experienced in the valuation of similar instruments, may also be used as a basis for establishing the","page_number":208,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"d1c23b09-a4be-4068-affd-0046dd522ab4","block_type":"box","text":"fair value of an investment.","page_number":208,"box":{"x":116,"y":149,"width":206,"height":10}},{"id":"e3be9522-3412-45fc-8a0b-33c1dc68cb29","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those","page_number":208,"box":{"x":116,"y":178,"width":738,"height":13}},{"id":"fe36e39d-1fd1-4075-a384-d725bab989fd","block_type":"box","text":"assets or liabilities could have been sold during the period in which the particular fair values were used","page_number":208,"box":{"x":116,"y":194,"width":767,"height":12}},{"id":"1111399a-81d2-4ae4-8fc9-489fcb24993c","block_type":"box","text":"in determining a Fund’s NAV. 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BlackRock does not","page_number":208,"box":{"x":116,"y":633,"width":718,"height":12}},{"id":"540be458-011e-4a28-9b62-898a1f7609a6","block_type":"box","text":"execute transactions through any particular broker or dealer, but seeks to obtain the best net results for","page_number":208,"box":{"x":116,"y":648,"width":772,"height":12}},{"id":"304cf719-14d8-4e2d-9708-fe68ff9d109b","block_type":"box","text":"the Fund, taking into account certain factors set out below. While BlackRock generally seeks","page_number":208,"box":{"x":116,"y":664,"width":687,"height":12}},{"id":"cbce5064-e7d1-4af2-a3c7-6989e74d58e8","block_type":"box","text":"reasonable trade execution costs, a Fund does not necessarily pay the lowest spread or commission","page_number":208,"box":{"x":117,"y":679,"width":746,"height":12}},{"id":"9d5a08e5-99b9-405f-944b-eff46d09649f","block_type":"box","text":"available, and payment of the lowest commission or spread is not necessarily consistent with obtaining","page_number":208,"box":{"x":116,"y":695,"width":762,"height":12}},{"id":"3780be0a-a80b-4de2-ad80-7a4003e0739f","block_type":"box","text":"the best price and execution in particular transactions. Subject to applicable legal requirements,","page_number":208,"box":{"x":116,"y":710,"width":708,"height":12}},{"id":"946ffe16-352a-44b8-b99a-d1bb47257bb3","block_type":"box","text":"BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":208,"box":{"x":117,"y":726,"width":692,"height":12}},{"id":"1774999a-e170-4373-aa72-e989b4e9803f","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund","page_number":208,"box":{"x":117,"y":741,"width":752,"height":12}},{"id":"401d7912-f326-422c-9d2e-0f8b8ea3d7c7","block_type":"box","text":"to pay a higher commission than other brokers would charge if BlackRock determines in good faith that","page_number":208,"box":{"x":116,"y":757,"width":765,"height":12}},{"id":"1c4efebc-f9a6-4c1b-91cf-dc67fc99537a","block_type":"box","text":"the commission is reasonable in relation to the services provided.","page_number":208,"box":{"x":116,"y":772,"width":485,"height":12}},{"id":"e0a862a3-a1b0-4767-91a1-a2ebd5d6b01e","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial","page_number":208,"box":{"x":117,"y":802,"width":733,"height":12}},{"id":"f8b3f950-ab43-4aca-84e0-051200b06b5f","block_type":"box","text":"interests of a Master Portfolio, it is expected that all transactions in portfolio securities will be entered","page_number":208,"box":{"x":117,"y":817,"width":745,"height":12}},{"id":"2463501d-f3ed-447d-9041-468d75099e45","block_type":"box","text":"into by the Master Portfolio.","page_number":208,"box":{"x":117,"y":833,"width":208,"height":12}},{"id":"935e8aee-e292-4589-9404-cb398e63edc9","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to","page_number":208,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"53949088-6995-4b08-9ae5-c4c71eb1b121","block_type":"box","text":"obtain the best price and most favorable execution for a Fund, taking into account a variety of factors","page_number":208,"box":{"x":116,"y":878,"width":754,"height":12}},{"id":"97dc3912-b975-43f2-85f3-353d23918fe3","block_type":"box","text":"II-158","page_number":208,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"257a4c3e-f7c3-4f0e-ba57-cedadbe3b1cb","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":208,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"363a0831-9cba-46b1-8c77-8ead61c32216","block_type":"box","text":"including: (i) the size, nature and character of the security or instrument being traded and the markets","page_number":209,"box":{"x":117,"y":87,"width":758,"height":12}},{"id":"26ea7b65-b128-4196-b46f-4aef5e001936","block_type":"box","text":"in which it is purchased or sold; (ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of","page_number":209,"box":{"x":117,"y":102,"width":764,"height":13}},{"id":"da892ff2-c0b4-420a-a709-4a70070389a6","block_type":"box","text":"the expected commission rates and spreads currently available; (iv) the activity existing and expected","page_number":209,"box":{"x":116,"y":118,"width":759,"height":12}},{"id":"97a83bac-702e-40f3-a83a-01475a46e8bc","block_type":"box","text":"in the market for the particular security or instrument, including any anticipated execution difficulties;","page_number":209,"box":{"x":117,"y":134,"width":746,"height":12}},{"id":"3875556e-af99-4302-8b62-38385ae96161","block_type":"box","text":"(v) the full range of brokerage services provided; (vi) the broker’s or dealer’s capital; (vii) the quality of","page_number":209,"box":{"x":117,"y":149,"width":759,"height":12}},{"id":"6363722c-d8e0-436f-8054-9fd0b0061102","block_type":"box","text":"research and research services provided; (viii) the reasonableness of the commission, dealer spread","page_number":209,"box":{"x":117,"y":165,"width":752,"height":12}},{"id":"bd35f738-1245-4a15-9c18-b93292e5bc3f","block_type":"box","text":"or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual or apparent","page_number":209,"box":{"x":116,"y":180,"width":760,"height":12}},{"id":"9facf4d8-0716-45a4-babd-fb3b7beb52d5","block_type":"box","text":"operational problems of a broker or dealer.","page_number":209,"box":{"x":116,"y":196,"width":323,"height":11}},{"id":"f4c01104-1ab7-4b5d-88b8-1c27f584b36e","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain","page_number":209,"box":{"x":116,"y":227,"width":723,"height":12}},{"id":"d2a08648-b028-4e6b-ba28-896001747a62","block_type":"box","text":"circumstances to cause an account to pay a broker or dealer a commission for effecting a transaction","page_number":209,"box":{"x":116,"y":242,"width":757,"height":12}},{"id":"df07d88c-d123-4ba7-8b5f-e1bc8b321cba","block_type":"box","text":"that exceeds the amount another broker or dealer would have charged for effecting the same","page_number":209,"box":{"x":116,"y":258,"width":696,"height":12}},{"id":"59fea626-fb16-483c-b884-d2d59736a4ba","block_type":"box","text":"transaction in recognition of the value of brokerage and research services provided by that broker or","page_number":209,"box":{"x":116,"y":273,"width":748,"height":12}},{"id":"d1995599-3700-450b-acb1-f5045fa3c044","block_type":"box","text":"dealer. This includes commissions paid on riskless principal transactions under certain conditions.","page_number":209,"box":{"x":116,"y":289,"width":732,"height":12}},{"id":"4bef3b60-edee-416f-9bdc-c5ee7aa3d0e3","block_type":"box","text":"Brokerage and research services include: (1) furnishing advice as to the value of securities, including","page_number":209,"box":{"x":117,"y":304,"width":754,"height":12}},{"id":"5c860136-00d8-4761-b030-083e0508d660","block_type":"box","text":"pricing and appraisal advice, credit analysis, risk measurement analysis, performance and other","page_number":209,"box":{"x":117,"y":320,"width":716,"height":12}},{"id":"099a9769-dd3f-4172-a28a-92569866b5ad","block_type":"box","text":"analysis, as well as the advisability of investing in, purchasing or selling securities, and the availability","page_number":209,"box":{"x":116,"y":335,"width":758,"height":12}},{"id":"2919f929-11fd-4ab7-968f-e591b07a8504","block_type":"box","text":"of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning","page_number":209,"box":{"x":116,"y":351,"width":725,"height":12}},{"id":"888e9fa6-c3fb-42fa-b52f-ef7743420b66","block_type":"box","text":"issuers, industries, securities, economic factors and trends, portfolio strategy, and the performance of","page_number":209,"box":{"x":117,"y":366,"width":757,"height":12}},{"id":"0e31c517-0230-40e1-978e-101810ee7a60","block_type":"box","text":"accounts; and (3) effecting securities transactions and performing functions incidental to securities","page_number":209,"box":{"x":116,"y":382,"width":734,"height":12}},{"id":"1e0749d9-7747-42f6-84fd-f3f7a1110f4a","block_type":"box","text":"transactions (such as clearance, settlement, and custody). BlackRock believes that access to","page_number":209,"box":{"x":116,"y":397,"width":698,"height":12}},{"id":"418ccde4-ff03-49bb-bf76-878d87d88232","block_type":"box","text":"independent investment research is beneficial to its investment decision-making processes and,","page_number":209,"box":{"x":117,"y":413,"width":716,"height":12}},{"id":"46501931-28bf-4929-9ec9-d12e69a5329e","block_type":"box","text":"therefore, to the Funds.","page_number":209,"box":{"x":116,"y":428,"width":180,"height":11}},{"id":"ef1b4115-8126-4f7d-86d1-b53e8dc62829","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements","page_number":209,"box":{"x":117,"y":459,"width":739,"height":12}},{"id":"7edc20f3-2227-47e5-b398-4b872a8f68a5","block_type":"box","text":"under which BlackRock may execute transactions through a broker-dealer and request that the broker","page_number":209,"box":{"x":117,"y":475,"width":762,"height":12}},{"id":"318b9ce4-64d8-46bb-92c6-23a1be4a5cbd","block_type":"box","text":"dealer allocate a portion of the commissions or commission credits to another firm that provides","page_number":209,"box":{"x":116,"y":490,"width":715,"height":12}},{"id":"5f0ed16f-ca2b-4e28-9b78-6aa4f6851df6","block_type":"box","text":"research to BlackRock. BlackRock believes that research services obtained through soft dollar or","page_number":209,"box":{"x":117,"y":506,"width":725,"height":12}},{"id":"6f993679-4543-4806-9b1c-24a933776785","block_type":"box","text":"commission sharing arrangements enhance its investment decision-making capabilities, thereby","page_number":209,"box":{"x":116,"y":521,"width":718,"height":12}},{"id":"2bf4fb57-2a51-459f-b514-f3a54241ab2a","block_type":"box","text":"increasing the prospects for higher investment returns. BlackRock will engage only in soft dollar or","page_number":209,"box":{"x":117,"y":537,"width":733,"height":12}},{"id":"69b6bd9d-0905-4b37-bf11-e21cdf085b97","block_type":"box","text":"commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":209,"box":{"x":116,"y":552,"width":744,"height":12}},{"id":"33286aee-c5cb-4afd-9479-e587d84ce599","block_type":"box","text":"may be subject to additional regulations, including MiFID II. 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Except as noted immediately","page_number":210,"box":{"x":116,"y":149,"width":760,"height":12}},{"id":"dcfaa631-11ef-4e5b-a23c-e1c991125648","block_type":"box","text":"below, research services furnished by brokers may be used in servicing some or all client accounts","page_number":210,"box":{"x":117,"y":165,"width":739,"height":12}},{"id":"a5e23f6c-201c-4c18-8d9a-22cdf1091cb6","block_type":"box","text":"and not all services may be used in connection with the Fund or account that paid commissions to the","page_number":210,"box":{"x":116,"y":180,"width":760,"height":12}},{"id":"8b021715-7704-473d-9481-0791cff1d4cd","block_type":"box","text":"broker providing such services. In some cases, research information received from brokers by mutual","page_number":210,"box":{"x":117,"y":196,"width":757,"height":12}},{"id":"a9f73650-f49a-4bb2-8abe-f6517e07f944","block_type":"box","text":"fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":210,"box":{"x":116,"y":211,"width":699,"height":12}},{"id":"23790813-b15d-48b0-ab56-c5656cc502e4","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment","page_number":210,"box":{"x":117,"y":227,"width":708,"height":12}},{"id":"c0c601d2-f36a-4c70-9fbb-12f331f06b0c","block_type":"box","text":"advisory or other fees paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt","page_number":210,"box":{"x":116,"y":242,"width":760,"height":12}},{"id":"075e2272-b24c-4d79-8a62-b0a7ea1457df","block_type":"box","text":"of research services. In some cases, BlackRock may receive a service from a broker that has both a","page_number":210,"box":{"x":116,"y":258,"width":750,"height":12}},{"id":"61c0140a-be1b-4a25-b45c-3f2274918ca0","block_type":"box","text":"“research” and a “non-research” use. When this occurs BlackRock makes a good faith allocation,","page_number":210,"box":{"x":116,"y":273,"width":725,"height":12}},{"id":"6e557e22-c781-4d1f-be6c-e2775c396d70","block_type":"box","text":"under all the circumstances, between the research and non-research uses of the service. The","page_number":210,"box":{"x":117,"y":289,"width":700,"height":11}},{"id":"8a17f6f6-01b6-470a-8934-a66a9ad71379","block_type":"box","text":"percentage of the service that is used for research purposes may be paid for with client commissions,","page_number":210,"box":{"x":117,"y":304,"width":758,"height":12}},{"id":"91324e86-3a3f-4c56-8e4a-195ced83dcc6","block_type":"box","text":"while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":210,"box":{"x":116,"y":320,"width":701,"height":12}},{"id":"4766b4b7-8a46-4814-9e89-f39c23c3177f","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of","page_number":210,"box":{"x":117,"y":335,"width":736,"height":12}},{"id":"4ad93b09-1542-47b6-8cba-068e27fd7681","block_type":"box","text":"interest, but BlackRock believes that its allocation procedures are reasonably designed to ensure that it","page_number":210,"box":{"x":117,"y":351,"width":771,"height":12}},{"id":"88631bd9-4487-424e-a6fa-791865876973","block_type":"box","text":"appropriately allocates the anticipated use of such services to their research and non-research uses.","page_number":210,"box":{"x":116,"y":366,"width":752,"height":12}},{"id":"3feed5e4-46aa-499e-84c5-5aeda4c28752","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay","page_number":210,"box":{"x":117,"y":397,"width":748,"height":12}},{"id":"d3376650-dad7-4115-887a-2cd2983731d3","block_type":"box","text":"for research from brokers. 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BIL will pay for any research out of its own resources and not through","page_number":210,"box":{"x":116,"y":475,"width":771,"height":12}},{"id":"2f38ae87-8fa2-4ae2-a87d-1b7f185ee1e1","block_type":"box","text":"soft dollars or commission sharing arrangements.","page_number":210,"box":{"x":116,"y":490,"width":372,"height":12}},{"id":"0ead29d3-70eb-4f99-8b6e-fd2af72be28f","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio","page_number":210,"box":{"x":117,"y":521,"width":740,"height":12}},{"id":"9a2aff3d-2457-4a33-9d33-28fec177bdf8","block_type":"box","text":"with respect to the Feeder Fund (or affiliated persons of such persons), will be made in accordance","page_number":210,"box":{"x":116,"y":537,"width":741,"height":12}},{"id":"57394e31-30e3-450d-b4b2-b27d94e4db48","block_type":"box","text":"with Rule 17e-1 under the Investment Company Act. Subject to policies established by the Board of","page_number":210,"box":{"x":116,"y":552,"width":743,"height":12}},{"id":"5b58ddf8-8b26-4a7b-9733-757bc7d875e5","block_type":"box","text":"Directors of the Master Portfolio, BlackRock is primarily responsible for the execution of the Master","page_number":210,"box":{"x":117,"y":568,"width":737,"height":12}},{"id":"6e904885-c837-41d7-9530-dfb10a2f5c19","block_type":"box","text":"Portfolio’s portfolio transactions and the allocation of brokerage.","page_number":210,"box":{"x":117,"y":583,"width":478,"height":12}},{"id":"edffbef3-ffb0-4dd8-9379-2cfbdee6ed65","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these","page_number":210,"box":{"x":117,"y":614,"width":733,"height":12}},{"id":"66823ec6-e227-4d7c-a831-1348e23b9b87","block_type":"box","text":"situations, the broker may be a member of the selling group that will, in addition to selling securities,","page_number":210,"box":{"x":116,"y":630,"width":746,"height":12}},{"id":"4edbe7dd-f5ae-4f8c-8901-2661e5f10d3c","block_type":"box","text":"provide BlackRock with research services. FINRA has adopted rules expressly permitting these types","page_number":210,"box":{"x":117,"y":645,"width":757,"height":12}},{"id":"649fa921-7069-444c-9649-d7fcbd586c01","block_type":"box","text":"of arrangements under certain circumstances. Generally, the broker will provide research “credits” in","page_number":210,"box":{"x":116,"y":661,"width":744,"height":12}},{"id":"e2f23666-e718-4095-b373-d3102d148271","block_type":"box","text":"these situations at a rate that is higher than that available for typical secondary market transactions.","page_number":210,"box":{"x":116,"y":676,"width":739,"height":12}},{"id":"ef4dd40d-eaaf-4bcc-8105-cc52590800dd","block_type":"box","text":"These arrangements may not fall within the safe harbor of Section 28(e).","page_number":210,"box":{"x":116,"y":692,"width":538,"height":12}},{"id":"62bd502b-af6d-48b0-afea-7188356376cc","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection","page_number":210,"box":{"x":117,"y":723,"width":756,"height":9}},{"id":"c52e5a1a-f2bb-41ee-abb2-27707292f5af","block_type":"box","text":"of brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular","page_number":210,"box":{"x":116,"y":738,"width":756,"height":12}},{"id":"af50e31d-8bf2-4ea3-b834-a247775e14ef","block_type":"box","text":"broker or dealer sells shares of the mutual funds advised by BlackRock neither qualifies nor","page_number":210,"box":{"x":117,"y":754,"width":680,"height":12}},{"id":"12e5701c-a21d-4a6f-9b11-86f0ee743d1e","block_type":"box","text":"disqualifies such broker or dealer to execute transactions for those mutual funds.","page_number":210,"box":{"x":116,"y":769,"width":599,"height":12}},{"id":"f2ab12a9-d093-4c5c-964d-2db6158fe348","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be","page_number":210,"box":{"x":117,"y":800,"width":721,"height":12}},{"id":"076189aa-24b3-4844-b12b-2f37bf5765d0","block_type":"box","text":"conducted primarily on the principal stock exchanges of the applicable country. Foreign equity","page_number":210,"box":{"x":116,"y":816,"width":697,"height":12}},{"id":"468661d9-a35f-44e8-9b55-d498ff9b49f9","block_type":"box","text":"securities may be held by a Fund in the form of depositary receipts, or other securities convertible into","page_number":210,"box":{"x":116,"y":831,"width":762,"height":12}},{"id":"2ab39d9c-907a-4b6a-9d58-29ba2d5c4ee9","block_type":"box","text":"foreign equity securities. Depositary receipts may be listed on stock exchanges, or traded in OTC","page_number":210,"box":{"x":116,"y":847,"width":727,"height":12}},{"id":"70117cc4-cda3-42f3-b7c3-04102d6989c8","block_type":"box","text":"markets in the United States or Europe, as the case may be. American Depositary Receipts, like other","page_number":210,"box":{"x":117,"y":862,"width":762,"height":12}},{"id":"f2f61977-a8a8-4348-8445-89c637117efb","block_type":"box","text":"securities traded in the United States, will be subject to negotiated commission rates. Because the","page_number":210,"box":{"x":116,"y":878,"width":734,"height":12}},{"id":"d2ba2dac-87b3-4861-95fb-fa68e94ba7da","block_type":"box","text":"II-160","page_number":210,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"a92520b9-f1d5-41a8-b784-c4997789a5fe","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":210,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"d345cbc6-6fae-4122-afa7-c3d43f015b48","block_type":"box","text":"shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund intends to manage its","page_number":211,"box":{"x":116,"y":87,"width":764,"height":12}},{"id":"9233fd54-54c2-4701-8146-6b9f014e755c","block_type":"box","text":"portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the extent","page_number":211,"box":{"x":117,"y":102,"width":725,"height":13}},{"id":"cf79ea3b-bf69-49fd-a079-c311a736a2ce","block_type":"box","text":"necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":211,"box":{"x":117,"y":118,"width":730,"height":12}},{"id":"9dbece15-a3f2-4fd7-89f1-44bcc759a332","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":211,"box":{"x":116,"y":134,"width":561,"height":12}},{"id":"dd1015f3-78d3-42a5-a242-f213c3122661","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the","page_number":211,"box":{"x":116,"y":165,"width":366,"height":12}},{"id":"a1cf1b47-02b9-4cea-991c-bd8306b8f673","block_type":"box","text":"SAI for information about the brokerage commissions","page_number":211,"box":{"x":482,"y":165,"width":392,"height":12}},{"id":"4286df80-5cb0-469f-9664-943c35fc260c","block_type":"box","text":"paid by your Fund, including commissions paid to a","page_number":211,"box":{"x":117,"y":180,"width":371,"height":12}},{"id":"c2f9a21d-f306-4d17-9bca-43cc2caa9dd7","block_type":"box","text":"ffiliates, if any, for the periods indicated.","page_number":211,"box":{"x":489,"y":180,"width":293,"height":12}},{"id":"cd35ba82-dfc9-4d25-b83f-bfa0ce6896b1","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with","page_number":211,"box":{"x":117,"y":211,"width":753,"height":12}},{"id":"72ad1333-a0b0-4990-bcc7-9df4fe54702f","block_type":"box","text":"the dealers who make a market in the particular securities, except in those circumstances in which","page_number":211,"box":{"x":116,"y":227,"width":735,"height":11}},{"id":"3235e4e5-d68a-4afd-80c7-958868f0935a","block_type":"box","text":"better prices and execution are available elsewhere. Under the Investment Company Act, persons","page_number":211,"box":{"x":117,"y":242,"width":732,"height":12}},{"id":"263c3324-0bee-4a30-bff8-f6e8ef56700b","block_type":"box","text":"affiliated with a Fund and persons who are affiliated with such affiliated persons are prohibited from","page_number":211,"box":{"x":116,"y":258,"width":741,"height":11}},{"id":"d7c0e00c-c085-47bc-b3d7-1290183f97c1","block_type":"box","text":"dealing with the Fund as principal in the purchase and sale of securities unless a permissive order","page_number":211,"box":{"x":116,"y":273,"width":733,"height":12}},{"id":"a4f28adc-f6c7-4ec0-911d-25d5f50b0b1f","block_type":"box","text":"allowing such transactions is obtained from the Commission. Since transactions in the OTC market","page_number":211,"box":{"x":116,"y":289,"width":740,"height":12}},{"id":"3573ba98-280e-4934-a039-e56334a191ec","block_type":"box","text":"usually involve transactions with the dealers acting as principal for their own accounts, the Funds will","page_number":211,"box":{"x":117,"y":304,"width":752,"height":12}},{"id":"a6fc8f48-b421-4ede-a455-73721e0f1158","block_type":"box","text":"not deal with affiliated persons in connection with such transactions. However, an affiliated person of a","page_number":211,"box":{"x":117,"y":320,"width":764,"height":12}},{"id":"3ca03264-237b-4cee-a24d-a2293ab991c1","block_type":"box","text":"Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":211,"box":{"x":117,"y":335,"width":769,"height":12}},{"id":"984bbbb4-76bd-40d5-9aac-52ffbb225d61","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared","page_number":211,"box":{"x":116,"y":351,"width":762,"height":12}},{"id":"acf1d322-01df-41d0-9089-27f44cc28229","block_type":"box","text":"to the fee or commission received by non-affiliated brokers in connection with comparable transactions.","page_number":211,"box":{"x":116,"y":366,"width":772,"height":12}},{"id":"04c6539b-d921-41dc-b599-b984031215f1","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government","page_number":211,"box":{"x":116,"y":397,"width":729,"height":12}},{"id":"b09d76fb-c6d6-4854-a77d-bf7addb430e0","block_type":"box","text":"Securities, are normally traded on a “net” basis without a stated commission, through dealers acting for","page_number":211,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"89687300-f245-4f8f-984e-e3f6051584c1","block_type":"box","text":"their own account and not as brokers. The Funds will primarily engage in transactions with these","page_number":211,"box":{"x":116,"y":428,"width":721,"height":12}},{"id":"184c85af-c51c-463d-9583-ce50fa2a7e73","block_type":"box","text":"dealers or deal directly with the issuer unless a better price or execution could be obtained by using a","page_number":211,"box":{"x":116,"y":444,"width":757,"height":12}},{"id":"34b8054a-1e80-482b-a9e3-93186a815cf6","block_type":"box","text":"broker. Prices paid to a dealer with respect to both foreign and domestic securities will generally","page_number":211,"box":{"x":117,"y":459,"width":716,"height":12}},{"id":"e3948975-5e9d-4c64-be17-4c545d11fcfe","block_type":"box","text":"include a “spread,” which is the difference between the prices at which the dealer is willing to purchase","page_number":211,"box":{"x":117,"y":475,"width":766,"height":12}},{"id":"49374e1d-0240-4446-a4a0-13e00eb75dec","block_type":"box","text":"and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":211,"box":{"x":116,"y":490,"width":596,"height":12}},{"id":"ff93632f-4a7b-4101-b312-80006841dde0","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers.","page_number":211,"box":{"x":117,"y":521,"width":756,"height":12}},{"id":"75075adf-ac52-43ac-9ecd-340060dd620e","block_type":"box","text":"The Funds do not currently expect to incur any brokerage commission expense on such transactions","page_number":211,"box":{"x":116,"y":537,"width":753,"height":12}},{"id":"72d86c03-1251-4982-af4a-bb29f7d0ff0c","block_type":"box","text":"because money market instruments are generally traded on a “net” basis with dealers acting as","page_number":211,"box":{"x":117,"y":552,"width":712,"height":12}},{"id":"4aa5e09e-bd93-49e9-aa0d-8e865277f3e0","block_type":"box","text":"principal for their own accounts without a stated commission. The price of the security, however,","page_number":211,"box":{"x":117,"y":568,"width":718,"height":12}},{"id":"38496d74-e1cb-4879-a498-c00bd058e874","block_type":"box","text":"usually includes a profit to the dealer. Each money market fund intends to purchase only securities with","page_number":211,"box":{"x":117,"y":583,"width":771,"height":12}},{"id":"42cd1c98-0223-4832-b28b-97c7679a8ee6","block_type":"box","text":"remaining maturities of 397 days or less as determined in accordance with the rules of the","page_number":211,"box":{"x":117,"y":599,"width":672,"height":12}},{"id":"241d6f9c-3b03-4337-8346-68e0939d0b21","block_type":"box","text":"Commission. As a result, the portfolio turnover rates of a money market fund will be relatively high.","page_number":211,"box":{"x":117,"y":614,"width":736,"height":12}},{"id":"36994930-e972-457d-8389-138ee9643080","block_type":"box","text":"However, because brokerage commissions will not normally be paid with respect to investments made","page_number":211,"box":{"x":117,"y":630,"width":764,"height":12}},{"id":"f03669f5-ddfc-4a2d-a383-b5a1bd780b2b","block_type":"box","text":"by a money market fund, the turnover rates should","page_number":211,"box":{"x":117,"y":645,"width":380,"height":12}},{"id":"3fbe1771-3122-4ccc-ad23-8ca80413cd16","block_type":"box","text":"not adversely affect the Fund’s NAVs or net","page_number":211,"box":{"x":498,"y":645,"width":328,"height":12}},{"id":"35e8e893-4e77-4fe9-9802-15b3d0ee1383","block_type":"box","text":"income.","page_number":211,"box":{"x":117,"y":661,"width":56,"height":9}},{"id":"0ea0bfca-df6c-4174-8294-9a2a1ae4e1d7","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the","page_number":211,"box":{"x":116,"y":692,"width":689,"height":12}},{"id":"6c8e9f88-e2a2-4796-bf1d-ba73cfcd250c","block_type":"box","text":"underwriter, generally referred to as the underwriter’s concession or discount. When offered securities","page_number":211,"box":{"x":117,"y":707,"width":756,"height":12}},{"id":"7186a2c1-9c01-47bc-bc56-470551b2d705","block_type":"box","text":"are purchased or sold directly from or to an issuer, no commissions or discounts are paid except where","page_number":211,"box":{"x":116,"y":723,"width":766,"height":12}},{"id":"2e700d4e-d90a-4a77-9987-4a1d6806ad8c","block_type":"box","text":"required by local markets.","page_number":211,"box":{"x":117,"y":738,"width":190,"height":12}},{"id":"30e1f302-eba1-4dd7-8ddc-93e51809c9db","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or","page_number":211,"box":{"x":116,"y":769,"width":755,"height":12}},{"id":"c5b9482f-bfc2-4889-bf87-63290d2ca583","block_type":"box","text":"dealers selling commercial paper to consider the repurchase of such securities from a Fund prior to","page_number":211,"box":{"x":116,"y":785,"width":736,"height":12}},{"id":"ff4e29cf-4e28-4aa7-be8a-dfa70c55572d","block_type":"box","text":"maturity at their original cost plus interest (sometimes adjusted to reflect the actual maturity of the","page_number":211,"box":{"x":117,"y":800,"width":723,"height":12}},{"id":"0f450cce-f3fe-47bd-8ae6-8829b0f255ba","block_type":"box","text":"securities), if it believes that a Fund’s anticipated need for liquidity makes such action desirable. Any","page_number":211,"box":{"x":116,"y":816,"width":744,"height":12}},{"id":"535658ff-a989-43ea-bc9e-cd32f8a74069","block_type":"box","text":"such repurchase prior to maturity reduces the possibility that a Fund would incur a capital loss in","page_number":211,"box":{"x":116,"y":831,"width":720,"height":12}},{"id":"18d2b16d-cf95-4ee2-8fb8-2341303cbc4d","block_type":"box","text":"liquidating commercial paper, especially if interest rates have risen since acquisition of such","page_number":211,"box":{"x":117,"y":847,"width":685,"height":12}},{"id":"16e2927f-d8a5-48ed-9373-b379e1f65202","block_type":"box","text":"commercial paper.","page_number":211,"box":{"x":116,"y":862,"width":143,"height":12}},{"id":"627f9bb7-65eb-4b40-91a5-219425db1b2f","block_type":"box","text":"II-161","page_number":211,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"2d25f09e-f252-4900-b67a-4aa1f19b301b","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":211,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"02206eba-4c75-44a7-bfb7-190df90dc386","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or","page_number":212,"box":{"x":117,"y":87,"width":744,"height":12}},{"id":"54aa9788-9e06-421c-8d59-b599f7b7b0b2","block_type":"box","text":"sub-advisers are made independently of each other in light of differing conditions. BlackRock allocates","page_number":212,"box":{"x":116,"y":102,"width":765,"height":13}},{"id":"3c8dbf86-2999-4fd2-97f8-2d5f5d9f80f7","block_type":"box","text":"investments among client accounts in a fair and equitable manner over time. A variety of factors will be","page_number":212,"box":{"x":117,"y":118,"width":767,"height":12}},{"id":"784a1fe0-1411-4151-924e-09047531dcd1","block_type":"box","text":"considered in making such allocations. These factors include: (i) investment objectives or strategies for","page_number":212,"box":{"x":116,"y":134,"width":769,"height":12}},{"id":"4ed417bf-da02-4762-bf73-caefbcbb5861","block_type":"box","text":"particular accounts, including sector, industry, country or region and capitalization weightings, (ii) tax","page_number":212,"box":{"x":117,"y":149,"width":749,"height":12}},{"id":"67a40ccc-53fe-4b3e-9a32-271c47b8204c","block_type":"box","text":"considerations of an account, (iii) risk or investment concentration parameters for an account,","page_number":212,"box":{"x":116,"y":165,"width":699,"height":12}},{"id":"d8471364-0e2d-445c-b398-d8147fd91c8e","block_type":"box","text":"(iv) supply or demand for a security at a given price level, (v) size of available investment, (vi) cash","page_number":212,"box":{"x":117,"y":180,"width":737,"height":12}},{"id":"c5328344-ab8c-4943-9003-e9584404b91e","block_type":"box","text":"availability and liquidity requirements for accounts, (vii) regulatory restrictions, (viii) minimum","page_number":212,"box":{"x":116,"y":196,"width":690,"height":12}},{"id":"5807de8f-49a1-40e2-b430-8f8683770a86","block_type":"box","text":"investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":212,"box":{"x":117,"y":211,"width":717,"height":12}},{"id":"93cb8aa0-26a8-4dec-8efb-1a337c238985","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client","page_number":212,"box":{"x":116,"y":227,"width":752,"height":12}},{"id":"b58bab07-1a5c-49db-b0ee-b35901e2cd27","block_type":"box","text":"account over another based on any of the following considerations: (i) to favor one client account at the","page_number":212,"box":{"x":116,"y":242,"width":771,"height":12}},{"id":"d042901c-e4cb-4017-8582-39fe8a602352","block_type":"box","text":"expense of another, (ii) to generate higher fees paid by one client account over another or to produce","page_number":212,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"52b26dcf-26ab-4a82-9cc8-2caa2838ee0d","block_type":"box","text":"greater performance compensation to BlackRock, (iii) to develop or enhance a relationship with a client","page_number":212,"box":{"x":116,"y":273,"width":770,"height":12}},{"id":"9e977b74-bd4b-4f4e-8740-cd64f1d9d65b","block_type":"box","text":"or prospective client, (iv) to compensate a client for past services or benefits rendered to BlackRock or","page_number":212,"box":{"x":116,"y":289,"width":765,"height":12}},{"id":"df18b780-e0f7-47ee-b2fb-c39b5a050616","block_type":"box","text":"to induce future services or benefits to be rendered to BlackRock, or (v) to manage or equalize","page_number":212,"box":{"x":116,"y":304,"width":707,"height":12}},{"id":"018afcc2-3703-42ee-aad8-9585ea22483d","block_type":"box","text":"investment performance among different client accounts.","page_number":212,"box":{"x":117,"y":320,"width":426,"height":12}},{"id":"17c908c4-7f8b-4162-8239-963534d455c1","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment","page_number":212,"box":{"x":117,"y":351,"width":702,"height":12}},{"id":"be2ac341-6dca-42b9-a818-483fb5d9dbb4","block_type":"box","text":"mandate on a pro rata basis. All allocations of equity securities will be subject, where relevant, to share","page_number":212,"box":{"x":117,"y":366,"width":769,"height":12}},{"id":"2b5ac559-ba5f-415d-8911-3c6ada29830f","block_type":"box","text":"minimums established for accounts and compliance constraints.","page_number":212,"box":{"x":117,"y":382,"width":479,"height":12}},{"id":"c9a08cee-2c71-4722-8c91-e1dbd598d8d5","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":212,"box":{"x":117,"y":413,"width":768,"height":12}},{"id":"1b94cd7d-8ce4-4cc2-a9ff-6441c119e82c","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less","page_number":212,"box":{"x":116,"y":428,"width":769,"height":12}},{"id":"1639dbcd-cc59-4978-8423-eee038ff0be8","block_type":"box","text":"than the amount of securities the accounts would otherwise take. In order to allocate these investments","page_number":212,"box":{"x":116,"y":444,"width":772,"height":9}},{"id":"9edc05c9-8e80-4013-8e3f-d03ce67d4bce","block_type":"box","text":"fairly and equitably among client accounts over time, each portfolio manager or a member of his or her","page_number":212,"box":{"x":116,"y":459,"width":766,"height":12}},{"id":"fa344cb6-77ca-4a43-aa76-cc4ded0f5f3b","block_type":"box","text":"respective investment team will indicate to BlackRock’s trading desk their level of interest in a","page_number":212,"box":{"x":117,"y":475,"width":697,"height":12}},{"id":"1908e03b-b2cd-460c-92ba-de09931da3d6","block_type":"box","text":"particular offering with respect to eligible client accounts for which that team is responsible. Initial","page_number":212,"box":{"x":117,"y":490,"width":723,"height":12}},{"id":"d8d4d635-7475-499b-bcb4-d30768143aa7","block_type":"box","text":"public offerings of U.S. equity securities will be identified as eligible for particular client accounts that","page_number":212,"box":{"x":117,"y":506,"width":748,"height":12}},{"id":"d9b8d759-9cbb-4bd9-bb71-3bf0c4cb3926","block_type":"box","text":"are managed by portfolio teams who have indicated interest in the offering based on market","page_number":212,"box":{"x":116,"y":521,"width":687,"height":12}},{"id":"3c76605a-33ab-42a4-a3cb-d858e1ae2191","block_type":"box","text":"capitalization of the issuer of the security and the investment mandate of the client account and in the","page_number":212,"box":{"x":116,"y":537,"width":758,"height":12}},{"id":"2eabf8e0-7dec-41ac-9247-c7106eb52b75","block_type":"box","text":"case of international equity securities, the country where the offering is taking place and the investment","page_number":212,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"2d378962-4552-436d-b59e-8979f585779b","block_type":"box","text":"mandate of the client account. Generally, shares received during the initial public offering will be","page_number":212,"box":{"x":117,"y":568,"width":716,"height":12}},{"id":"f098936c-474c-470e-ad5f-8a0c8d82672f","block_type":"box","text":"allocated among participating client accounts within each investment mandate on a pro rata basis. In","page_number":212,"box":{"x":116,"y":583,"width":752,"height":12}},{"id":"d64b9587-1d9b-4454-9160-35921023bffb","block_type":"box","text":"situations where supply is too limited to be allocated among all accounts for which the investment is","page_number":212,"box":{"x":116,"y":599,"width":744,"height":12}},{"id":"a34e751c-74fd-4163-a116-d743c485cefb","block_type":"box","text":"eligible, portfolio managers may rotate such investment opportunities among one or more accounts so","page_number":212,"box":{"x":116,"y":614,"width":763,"height":12}},{"id":"0beab585-7849-4838-897f-ea26680703a6","block_type":"box","text":"long as the rotation system provides for fair access for all client accounts over time. Other allocation","page_number":212,"box":{"x":117,"y":630,"width":746,"height":12}},{"id":"19c09870-fca6-4524-9743-93c40c347dd3","block_type":"box","text":"methodologies that are considered by BlackRock to be fair and equitable to clients may be used as","page_number":212,"box":{"x":117,"y":645,"width":739,"height":12}},{"id":"8227a78c-9763-4774-b45f-8173ab2c7a8a","block_type":"box","text":"well.","page_number":212,"box":{"x":116,"y":661,"width":32,"height":9}},{"id":"030bea15-a862-4b33-a789-88c5228d4164","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy","page_number":212,"box":{"x":117,"y":692,"width":760,"height":12}},{"id":"aab2661c-a78b-421e-b20e-adb00cdb6697","block_type":"box","text":"and sell the same securities at the same time for different clients based on the particular investment","page_number":212,"box":{"x":116,"y":707,"width":741,"height":12}},{"id":"cef79178-22fb-4100-8ccb-34d51c8c3376","block_type":"box","text":"objective, guidelines and strategies of those accounts. For example, BlackRock may decide that it may","page_number":212,"box":{"x":116,"y":723,"width":763,"height":12}},{"id":"2a3815aa-1eea-4049-9029-02d7eba3e9fd","block_type":"box","text":"be entirely appropriate for a growth fund to sell a security at the same time a value fund is buying that","page_number":212,"box":{"x":117,"y":738,"width":752,"height":12}},{"id":"2bd6e942-7d89-4d52-9904-60e283b4898a","block_type":"box","text":"security. To the extent that transactions on behalf of more than one client of BlackRock or its affiliates","page_number":212,"box":{"x":116,"y":754,"width":754,"height":12}},{"id":"f2abc197-0aa6-4dfb-a561-888cabf792f1","block_type":"box","text":"during the same period may increase the demand for securities being purchased or the supply of","page_number":212,"box":{"x":116,"y":769,"width":720,"height":12}},{"id":"ac37f85e-b4c3-4890-ac35-e315aa1f7f2d","block_type":"box","text":"securities being sold, there may be an adverse effect on price. For example, sales of a security by","page_number":212,"box":{"x":116,"y":785,"width":728,"height":12}},{"id":"4ae7ce9f-f621-40ae-9128-56cf493da17a","block_type":"box","text":"BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":212,"box":{"x":117,"y":800,"width":720,"height":12}},{"id":"a0f10ebe-1755-40bb-8d95-d952938aeb82","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of","page_number":212,"box":{"x":116,"y":816,"width":701,"height":12}},{"id":"6e6318e7-07de-4420-b43a-a18523bf4d46","block_type":"box","text":"securities arise for consideration at or about the same time that would involve a Fund or other clients or","page_number":212,"box":{"x":116,"y":831,"width":772,"height":10}},{"id":"4fd39133-4665-4796-8b8e-08195e065602","block_type":"box","text":"funds for which BlackRock or an affiliate act as investment manager, transactions in such securities will","page_number":212,"box":{"x":116,"y":847,"width":772,"height":12}},{"id":"d8113237-ed88-4225-8b14-97a0223defce","block_type":"box","text":"be made, insofar as feasible, for the respective funds and clients in a manner deemed equitable to all.","page_number":212,"box":{"x":117,"y":862,"width":760,"height":12}},{"id":"de808ad0-4d71-4a06-b087-62a1a7a286ce","block_type":"box","text":"II-162","page_number":212,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"1e745bbe-8831-4441-9a99-70221d1fc130","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":212,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"977bec35-ac4e-4111-8b3d-21204d76b5f8","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":213,"box":{"x":117,"y":87,"width":767,"height":12}},{"id":"b2918cf7-8cd1-416e-85cf-d9b94d67f6fc","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":213,"box":{"x":116,"y":102,"width":755,"height":13}},{"id":"2dc480ba-2a8b-4cb4-bac2-779f5403de76","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or","page_number":213,"box":{"x":116,"y":118,"width":733,"height":12}},{"id":"4c4ce274-a438-485a-b3a8-2356b486b3ac","block_type":"box","text":"investment team will be aggregated in a single order if the trader believes the aggregated trade would","page_number":213,"box":{"x":117,"y":134,"width":758,"height":12}},{"id":"cbf7ece4-4de5-4630-9442-85f8d89918ab","block_type":"box","text":"provide each client with an opportunity to achieve a more favorable execution at a potentially lower","page_number":213,"box":{"x":117,"y":149,"width":737,"height":12}},{"id":"7fa073df-57c1-46e0-a4ad-802c11763393","block_type":"box","text":"execution cost. The costs associated with an aggregated order will be shared pro rata among the","page_number":213,"box":{"x":116,"y":165,"width":726,"height":12}},{"id":"951f0f36-07ae-43dc-97e5-074f31c6fde3","block_type":"box","text":"clients in the aggregated order. Generally, if an order for a particular portfolio manager or management","page_number":213,"box":{"x":116,"y":180,"width":769,"height":12}},{"id":"3b99e847-2fd7-4f64-9174-3ebfb5a627cb","block_type":"box","text":"team is filled at several different prices through multiple trades, all accounts participating in the order","page_number":213,"box":{"x":116,"y":196,"width":750,"height":12}},{"id":"597ab55d-48f2-4b31-9f06-51239e15c36e","block_type":"box","text":"will receive the average price except in the case of certain international markets where average pricing","page_number":213,"box":{"x":116,"y":211,"width":767,"height":12}},{"id":"17254ab4-5671-46b8-b62e-3cd7f514a154","block_type":"box","text":"is not permitted. While in some cases this practice could have a detrimental effect upon the price or","page_number":213,"box":{"x":117,"y":227,"width":742,"height":11}},{"id":"7429ce44-3bf4-463b-9e35-c859ecb6e384","block_type":"box","text":"value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":213,"box":{"x":116,"y":242,"width":747,"height":12}},{"id":"18f09c3b-a063-4949-9494-977b76cb1f33","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period","page_number":213,"box":{"x":116,"y":258,"width":747,"height":12}},{"id":"3b37d298-aea4-4e3c-b9a6-38758ec97178","block_type":"box","text":"may increase the demand for securities being purchased or the supply of securities being sold, causing","page_number":213,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"ffa2abf5-5e73-4718-a546-345f659aa649","block_type":"box","text":"an adverse effect on price. The trader will give the aggregated order to the broker-dealer that the trader","page_number":213,"box":{"x":116,"y":289,"width":772,"height":12}},{"id":"19dc9b10-f7fd-4bc4-8a9b-7b137195da42","block_type":"box","text":"has identified as being able to provide the best execution of the order. Orders for purchase or sale of","page_number":213,"box":{"x":117,"y":304,"width":751,"height":12}},{"id":"6392431b-1741-4b47-a4bb-648fd4414276","block_type":"box","text":"securities will be placed within a reasonable amount of time of the order receipt and aggregated orders","page_number":213,"box":{"x":116,"y":320,"width":768,"height":12}},{"id":"0b036a06-e1af-4e80-a835-db858f93fec4","block_type":"box","text":"will be kept aggregated only long enough to execute the order.","page_number":213,"box":{"x":116,"y":335,"width":469,"height":12}},{"id":"dca1a696-4330-4056-bd97-fc9de3d679e5","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to","page_number":213,"box":{"x":116,"y":366,"width":765,"height":12}},{"id":"b069b1ee-f28f-4af9-a651-42a83dbb9241","block_type":"box","text":"such securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment","page_number":213,"box":{"x":116,"y":382,"width":709,"height":12}},{"id":"5c5ab16e-fcf0-4ff6-beda-8db00366c3b0","block_type":"box","text":"Company Act) thereof is a member except pursuant to procedures adopted by the Board of Directors in","page_number":213,"box":{"x":117,"y":397,"width":771,"height":12}},{"id":"bffaba31-6b58-4b26-8bcd-f90d81608be8","block_type":"box","text":"accordance with Rule 10f-3 under the Investment Company Act. In no instance will portfolio securities","page_number":213,"box":{"x":116,"y":413,"width":759,"height":12}},{"id":"5094d5e2-a691-442d-8f61-a6dbfe3c48a5","block_type":"box","text":"be purchased from or sold to BlackRock, BRIL or any affiliated person of the foregoing entities except","page_number":213,"box":{"x":117,"y":428,"width":758,"height":12}},{"id":"9a3467ac-855a-47cf-976e-88e3df0bb481","block_type":"box","text":"as permitted by Commission exemptive order or by applicable law.","page_number":213,"box":{"x":116,"y":444,"width":499,"height":12}},{"id":"d3723ab8-1995-4ee3-a749-058cbae18f2c","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment","page_number":213,"box":{"x":116,"y":475,"width":731,"height":12}},{"id":"046d1df6-cbe6-4240-8781-07d33425e392","block_type":"box","text":"companies, clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio","page_number":213,"box":{"x":116,"y":490,"width":755,"height":12}},{"id":"8297e389-4099-47b3-a07a-5318c0af8334","block_type":"box","text":"securities of a Fund and one or more other accounts managed or advised by BlackRock are","page_number":213,"box":{"x":116,"y":506,"width":687,"height":12}},{"id":"0d45bcf4-222b-4f8d-8504-352f4da7083b","block_type":"box","text":"considered at or about the same time, transactions in such securities are allocated among the Fund","page_number":213,"box":{"x":116,"y":521,"width":745,"height":12}},{"id":"87632001-d5e8-4e7e-945e-85301cc49070","block_type":"box","text":"and the other accounts in a manner deemed equitable to all by BlackRock. In some cases, this","page_number":213,"box":{"x":116,"y":537,"width":708,"height":12}},{"id":"019b84d0-98fe-4357-b2a3-2cb93e756a86","block_type":"box","text":"procedure could have a detrimental effect on the price or volume of the security as far as a Fund is","page_number":213,"box":{"x":117,"y":552,"width":737,"height":12}},{"id":"8c7710f4-3a80-470e-8023-0d3bb19c2695","block_type":"box","text":"concerned. However, in other cases, it is possible that the ability to participate in volume transactions","page_number":213,"box":{"x":116,"y":568,"width":756,"height":12}},{"id":"3441dd63-3f4f-409b-8342-a2449f9a2897","block_type":"box","text":"and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":213,"box":{"x":116,"y":583,"width":760,"height":12}},{"id":"2a31463c-105b-4045-87c7-85ea0f6af00c","block_type":"box","text":"invest for its own account in the types of securities in which a Fund may invest. BlackRock may, from","page_number":213,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"d68836b5-5a3c-417d-b507-17877affe155","block_type":"box","text":"time to time, effect trades on behalf of and for the","page_number":213,"box":{"x":116,"y":614,"width":372,"height":11}},{"id":"a2f5ce74-ea78-4d08-b3a4-c1f031c8d3e4","block_type":"box","text":"account of a Fund with brokers or dealers that are","page_number":213,"box":{"x":488,"y":614,"width":376,"height":10}},{"id":"602953dc-5c91-46db-94bb-1682ba86bd0f","block_type":"box","text":"affiliated with BFA, in conformity with the Investment Company Act and Commission rules and","page_number":213,"box":{"x":116,"y":630,"width":703,"height":12}},{"id":"12aa2993-9d87-4fc0-a9a9-46773a0b7ae1","block_type":"box","text":"regulations. Under these provisions, any commissions paid to affiliated brokers or dealers must be","page_number":213,"box":{"x":117,"y":645,"width":733,"height":12}},{"id":"83abc44b-0891-4b25-9f63-1a5d05fffd7f","block_type":"box","text":"reasonable and fair compared to the commissions charged by other brokers or dealers in comparable","page_number":213,"box":{"x":117,"y":661,"width":752,"height":12}},{"id":"8d547cb7-5a47-4899-b3bc-c1a899da1077","block_type":"box","text":"transactions. A Fund will not deal with affiliates in principal transactions unless permitted by applicable","page_number":213,"box":{"x":116,"y":676,"width":759,"height":12}},{"id":"e9b1d43a-6ab9-4e70-8445-bd1ca1823788","block_type":"box","text":"Commission rules or regulations, or by Commission exemptive order.","page_number":213,"box":{"x":117,"y":692,"width":512,"height":12}},{"id":"c9340853-8805-41c5-bc7b-b49ccaa4f3a1","block_type":"box","text":"Portfolio Turnover","page_number":213,"box":{"x":117,"y":723,"width":146,"height":9}},{"id":"b84f0e7b-da3c-4669-8b02-509a0ad555ec","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of","page_number":213,"box":{"x":116,"y":746,"width":761,"height":12}},{"id":"88922532-ddd8-468b-a3f7-8dd0ed95350f","block_type":"box","text":"portfolio securities (exclusive of purchases or sales of U.S. Government Securities and all other","page_number":213,"box":{"x":117,"y":761,"width":708,"height":13}},{"id":"0dbb94c7-2ad9-4ed1-b6fb-c8ea227703b9","block_type":"box","text":"securities whose maturities at the time of acquisition were one year or less) by the monthly average","page_number":213,"box":{"x":116,"y":777,"width":738,"height":12}},{"id":"6a5e744e-23ba-4825-88bc-fdd0aaf4bcdb","block_type":"box","text":"value of the securities in the portfolio during the year. A high rate of portfolio turnover results in certain","page_number":213,"box":{"x":116,"y":792,"width":757,"height":13}},{"id":"1b933ee4-db08-4abb-93a6-6c838ef193e9","block_type":"box","text":"tax consequences, such as increased capital gain dividends and/or ordinary income dividends, and in","page_number":213,"box":{"x":116,"y":808,"width":752,"height":12}},{"id":"c292d882-890b-4c49-ad4e-d55db10d82ac","block_type":"box","text":"correspondingly greater transaction costs in the form of dealer spreads and brokerage commissions,","page_number":213,"box":{"x":116,"y":823,"width":745,"height":13}},{"id":"41ed0d5a-f97f-464f-9fea-da1fd42d04a5","block_type":"box","text":"which are borne directly by a Fund.","page_number":213,"box":{"x":116,"y":839,"width":266,"height":12}},{"id":"d539fcb0-fa87-4be4-bc5b-f922befde6ed","block_type":"box","text":"II-163","page_number":213,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"3ff58e40-1613-45de-8ef9-ce139ac7c881","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":213,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"9426a400-c6fc-4c74-872d-e4b09aaa3ccb","block_type":"box","text":"D","page_number":214,"box":{"x":419,"y":87,"width":10,"height":9}},{"id":"13ec5af6-d012-4fa6-8a7e-69f32e00a71a","block_type":"box","text":"IVIDENDS","page_number":214,"box":{"x":431,"y":89,"width":63,"height":8}},{"id":"033d1860-75d2-4e3e-b4a3-d987c2d450d8","block_type":"box","text":"AND","page_number":214,"box":{"x":499,"y":89,"width":29,"height":7}},{"id":"03d92034-feb0-4c53-bfd5-aaaf88e23999","block_type":"box","text":"T","page_number":214,"box":{"x":529,"y":87,"width":14,"height":9}},{"id":"66b14c9b-66d8-426f-9e3c-a40413a53d30","block_type":"box","text":"AXES","page_number":214,"box":{"x":544,"y":89,"width":36,"height":8}},{"id":"a22039ed-2c4d-4a32-b72c-ec5d23344075","block_type":"box","text":"Dividends","page_number":214,"box":{"x":117,"y":118,"width":84,"height":10}},{"id":"bdd16a57-8c50-4311-a4f1-b04050390f8f","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from","page_number":214,"box":{"x":117,"y":141,"width":739,"height":12}},{"id":"5fe5f8f7-cbff-491b-84a3-d142d27e0c64","block_type":"box","text":"such net investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends","page_number":214,"box":{"x":116,"y":157,"width":755,"height":12}},{"id":"8285aee5-e9a4-4de7-b90b-5f04ea9be7e8","block_type":"box","text":"to distribute all net realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to","page_number":214,"box":{"x":116,"y":172,"width":751,"height":12}},{"id":"c1ccc2b6-82a4-4b3c-9186-7f612d5fa6db","block_type":"box","text":"time, a Fund may declare a special distribution at or about the end of the calendar year in order to","page_number":214,"box":{"x":116,"y":188,"width":732,"height":12}},{"id":"9d063d9c-7e40-4414-9c77-f2861f29c72c","block_type":"box","text":"comply with U.S. federal tax requirements that certain percentages of its ordinary income and capital","page_number":214,"box":{"x":116,"y":203,"width":752,"height":12}},{"id":"0db44b82-04dd-4a56-a9d9-1660983476d7","block_type":"box","text":"gains be distributed during the year. If, in any fiscal year, a Fund has net income from certain foreign","page_number":214,"box":{"x":116,"y":219,"width":751,"height":12}},{"id":"98da23e9-514b-4781-bff7-e02121b43a98","block_type":"box","text":"currency transactions, such income will be distributed at least annually.","page_number":214,"box":{"x":116,"y":234,"width":533,"height":12}},{"id":"f22ca5f7-8601-4f26-8b1d-cf3aa2b7bd4c","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares","page_number":214,"box":{"x":117,"y":265,"width":753,"height":12}},{"id":"7b81e7d9-e916-4053-98f1-f73fcb20831b","block_type":"box","text":"of each Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.”","page_number":214,"box":{"x":116,"y":281,"width":745,"height":12}},{"id":"0e703018-c20c-4278-a66a-d12460ed3a3b","block_type":"box","text":"Shareholders may also elect in writing to receive any such dividends in cash. Dividends are taxable to","page_number":214,"box":{"x":116,"y":296,"width":761,"height":12}},{"id":"d626824d-36c8-4c51-aa46-85c9d1f47645","block_type":"box","text":"shareholders, as discussed below, whether they are reinvested in shares of the Fund or received in","page_number":214,"box":{"x":116,"y":312,"width":743,"height":12}},{"id":"280378cd-9dfe-429f-96a8-f4e09972af53","block_type":"box","text":"cash. The per share dividends on front-end load shares, CDSC shares and Service Shares will be","page_number":214,"box":{"x":116,"y":327,"width":732,"height":12}},{"id":"0e100063-5d22-4233-891a-7a776f50eaac","block_type":"box","text":"lower than the per share dividends on Institutional Shares as a result of the service, distribution and","page_number":214,"box":{"x":117,"y":343,"width":743,"height":12}},{"id":"c3a8af82-485e-44f3-b03d-7f06b2fb1499","block_type":"box","text":"higher transfer agency fees applicable to CDSC shares, the service fees applicable to front-end load","page_number":214,"box":{"x":117,"y":358,"width":749,"height":12}},{"id":"b18693ec-c2cd-4d71-acc5-629c85abec49","block_type":"box","text":"shares and Service Shares, and the service and distribution fees applicable to Class R Shares.","page_number":214,"box":{"x":116,"y":374,"width":711,"height":12}},{"id":"28f8f963-e940-4d2b-9b28-e1b94ef32cde","block_type":"box","text":"Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per","page_number":214,"box":{"x":116,"y":389,"width":728,"height":12}},{"id":"7f402cc3-e4d6-48e3-996f-d7e9ff694868","block_type":"box","text":"share dividends on front-end load shares and Service Shares as a result of the distribution fees and","page_number":214,"box":{"x":116,"y":405,"width":745,"height":9}},{"id":"cab6e198-0621-48af-87be-278e9ff07dd1","block_type":"box","text":"higher transfer agency fees applicable to CDSC shares and the distribution fees applicable to Class R","page_number":214,"box":{"x":117,"y":420,"width":760,"height":12}},{"id":"0e428760-58aa-4937-b5f3-4a826744fe0f","block_type":"box","text":"Shares, and the per share dividends on CDSC shares will be lower than the per share dividends on","page_number":214,"box":{"x":116,"y":436,"width":742,"height":12}},{"id":"da6abf52-78a9-4192-9b7c-ff3e8db87a28","block_type":"box","text":"Class R Shares as a result of the higher distribution fees and higher transfer agency fees applicable to","page_number":214,"box":{"x":117,"y":451,"width":764,"height":12}},{"id":"107185ea-f4a8-415e-90e0-42516ad95721","block_type":"box","text":"CDSC shares.","page_number":214,"box":{"x":117,"y":467,"width":111,"height":9}},{"id":"1dd10538-a344-4d8f-9a50-2475d7823f7d","block_type":"box","text":"Taxes","page_number":214,"box":{"x":116,"y":498,"width":52,"height":9}},{"id":"57ab0e3b-1132-48be-9144-d5ebdaf0925c","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":214,"box":{"x":117,"y":521,"width":761,"height":12}},{"id":"b045011d-57e7-4774-842d-00495953bcfd","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not","page_number":214,"box":{"x":116,"y":537,"width":763,"height":12}},{"id":"b95b68d7-ed78-4b0b-a356-7ea3c73dc2ce","block_type":"box","text":"be subject to U.S. federal income tax on the part of its investment company taxable income and net","page_number":214,"box":{"x":117,"y":552,"width":742,"height":12}},{"id":"e87b2bce-35d3-4577-af54-980689ffa4eb","block_type":"box","text":"realized capital gains that it distributes to its shareholders in years in which it distributes at least 90% of","page_number":214,"box":{"x":117,"y":568,"width":770,"height":12}},{"id":"9d6db73b-500c-4b14-b31b-e2134002f52b","block_type":"box","text":"its investment company taxable income and at least 90% of its net tax-exempt interest income, if any,","page_number":214,"box":{"x":117,"y":583,"width":757,"height":12}},{"id":"964b17b3-6b23-4105-9969-0defdb70cd9b","block_type":"box","text":"for the year. To qualify as a regulated investment company, a Fund must meet certain requirements","page_number":214,"box":{"x":116,"y":599,"width":746,"height":12}},{"id":"ec92d0a0-4ecf-4506-b0da-64aefbb6d409","block_type":"box","text":"regarding the source of its income and the composition and diversification of its assets. See Part II,","page_number":214,"box":{"x":117,"y":614,"width":739,"height":12}},{"id":"69463642-9c7c-4fbe-b7d5-f6ec976a59e5","block_type":"box","text":"“Investment Risks and Considerations — Investment Restrictions (All Funds)” for a discussion of the","page_number":214,"box":{"x":116,"y":630,"width":749,"height":12}},{"id":"2f0bd78c-3360-4b17-b80f-842846315e04","block_type":"box","text":"asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the underlying","page_number":214,"box":{"x":116,"y":645,"width":769,"height":12}},{"id":"8abc8804-54dc-49f5-9ba9-7b8c283a7c62","block_type":"box","text":"assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":214,"box":{"x":116,"y":661,"width":766,"height":12}},{"id":"eccd0e37-2b39-4761-a5c7-a1c0c9474371","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment","page_number":214,"box":{"x":117,"y":676,"width":678,"height":12}},{"id":"2f1c0d4a-a6bb-45dd-95f2-0605d40fcc35","block_type":"box","text":"companies.","page_number":214,"box":{"x":116,"y":692,"width":84,"height":12}},{"id":"65693321-9835-43a3-9074-8395b886b35c","block_type":"box","text":"A Fund may be able to cure a failure to derive at least 90% of its income from the sources specified","page_number":214,"box":{"x":116,"y":723,"width":737,"height":12}},{"id":"28926e5c-0f87-4186-a754-b5b0bb24a50f","block_type":"box","text":"above or a failure to diversify its holdings in the manner described above by paying a tax, by disposing","page_number":214,"box":{"x":116,"y":738,"width":759,"height":12}},{"id":"1c98aba2-b225-43cd-855d-a016cabeffca","block_type":"box","text":"of certain assets, or by paying a tax and disposing of","page_number":214,"box":{"x":116,"y":754,"width":392,"height":12}},{"id":"f53d2b6e-5964-46bd-a2f9-b8c21656fec1","block_type":"box","text":"assets. If, in any taxable year, a Fund fails one of","page_number":214,"box":{"x":513,"y":754,"width":366,"height":12}},{"id":"c32fa532-369f-475e-ac61-085cc80f57b4","block_type":"box","text":"these tests and does not timely cure the failure, the Fund will be taxed in the same manner as an","page_number":214,"box":{"x":116,"y":769,"width":719,"height":12}},{"id":"a1a606ba-24eb-4db9-b91d-4b686a870310","block_type":"box","text":"ordinary corporation and distributions to its shareholders will not be deductible by the Fund in","page_number":214,"box":{"x":116,"y":785,"width":690,"height":12}},{"id":"269ac4e2-ca5c-4e77-8e76-c26a21f1cabf","block_type":"box","text":"computing its taxable income. Although in general the passive loss rules of the Code do not apply to","page_number":214,"box":{"x":116,"y":800,"width":743,"height":12}},{"id":"151eae3c-b3c6-444f-bb66-07331f9965c0","block_type":"box","text":"regulated investment companies, such rules do apply to a regulated investment company with respect","page_number":214,"box":{"x":117,"y":816,"width":756,"height":12}},{"id":"125c593c-3c78-48ef-b68c-dfe4cb370076","block_type":"box","text":"to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s investments in","page_number":214,"box":{"x":116,"y":831,"width":744,"height":12}},{"id":"9af95107-6424-4532-a214-cf438a06d257","block_type":"box","text":"partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject to","page_number":214,"box":{"x":117,"y":847,"width":767,"height":12}},{"id":"0bd96c11-0111-4c9a-9f84-ddd60a6a38c5","block_type":"box","text":"state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":214,"box":{"x":116,"y":862,"width":526,"height":12}},{"id":"db69ca6b-ddba-497b-9829-ffbb1c86a99c","block_type":"box","text":"II-164","page_number":214,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"ab14447e-cd26-40a9-a240-8d3d586b53b2","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":214,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"cf6d5b1a-b03d-4e2e-8c45-efb92c6f0a9f","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a","page_number":215,"box":{"x":117,"y":87,"width":738,"height":12}},{"id":"03f92ad5-16a4-4489-99ae-5382c77b88f8","block_type":"box","text":"Fund fails to qualify as a regulated investment company under the Code, notwithstanding the","page_number":215,"box":{"x":117,"y":102,"width":694,"height":13}},{"id":"7ff4a428-cdb0-4650-9b14-ea8fef10a9b5","block_type":"box","text":"availability of certain relief provisions, such Fund would be taxed in the same manner as an ordinary","page_number":215,"box":{"x":116,"y":118,"width":748,"height":12}},{"id":"a0bcb4a0-c445-414f-8cdb-da066c6e3626","block_type":"box","text":"corporation and all distributions from earnings and profits (as determined under U.S. federal income","page_number":215,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"9581b35a-08d7-4827-9649-3302771398bd","block_type":"box","text":"tax principles) to its shareholders would be taxable as ordinary dividend income eligible for taxation at","page_number":215,"box":{"x":116,"y":149,"width":759,"height":12}},{"id":"5c03c765-5360-4be1-9de1-a846403910b2","block_type":"box","text":"a reduced tax rate for non-corporate shareholders and the dividends-received deduction for corporate","page_number":215,"box":{"x":116,"y":165,"width":760,"height":11}},{"id":"af9455d0-4642-4352-b830-b34f3dbcf17b","block_type":"box","text":"shareholders. However, a Municipal Fund’s distributions derived from income on tax-exempt","page_number":215,"box":{"x":116,"y":180,"width":690,"height":12}},{"id":"e82369ca-df3c-46d3-9c70-2ad7179f4f72","block_type":"box","text":"obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that","page_number":215,"box":{"x":116,"y":196,"width":771,"height":12}},{"id":"8e6ec2e2-63b7-45cf-a398-9ca723b9a0ec","block_type":"box","text":"is a series of a regulated investment company that consists of multiple series is treated as a separate","page_number":215,"box":{"x":117,"y":211,"width":756,"height":12}},{"id":"a5d48b5a-002f-41ba-b7bc-1112ec7c5b08","block_type":"box","text":"corporation for U.S. federal income tax purposes, and therefore is considered to be a separate entity in","page_number":215,"box":{"x":116,"y":227,"width":769,"height":12}},{"id":"3a451805-ea85-463d-bb90-82ad6bb11ff8","block_type":"box","text":"determining its treatment under the rules for regulated investment companies. Losses in one series of","page_number":215,"box":{"x":116,"y":242,"width":760,"height":12}},{"id":"5140de65-b5f1-408f-95cd-72b2f15dc5b2","block_type":"box","text":"a regulated investment company do not offset gains in another, and the requirements (other than","page_number":215,"box":{"x":116,"y":258,"width":724,"height":12}},{"id":"96d32366-4004-4a9b-bfb2-28d38e867ed8","block_type":"box","text":"certain organizational requirements) for qualifying for regulated investment company status will be","page_number":215,"box":{"x":116,"y":273,"width":732,"height":12}},{"id":"0e68dbd3-fb38-4264-a448-609695ea9025","block_type":"box","text":"determined at the level of the individual series. In the following discussion, the term “Fund” means","page_number":215,"box":{"x":116,"y":289,"width":731,"height":12}},{"id":"2162c353-98fd-416f-9664-22fe78c7a11b","block_type":"box","text":"each individual series, if applicable.","page_number":215,"box":{"x":116,"y":304,"width":268,"height":12}},{"id":"790ab603-b343-44ef-9680-4239f552f125","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent","page_number":215,"box":{"x":116,"y":335,"width":772,"height":12}},{"id":"ec5c731c-1b6e-4ee7-96d6-d8a207b8c0dc","block_type":"box","text":"the regulated investment company does not distribute, during each calendar year, at least 98% of its","page_number":215,"box":{"x":116,"y":351,"width":750,"height":12}},{"id":"0739208a-ba5c-4b7a-8341-9382fbf8fd1f","block_type":"box","text":"ordinary income, determined on a calendar year basis, and at least 98.2% of its capital gain net","page_number":215,"box":{"x":116,"y":366,"width":713,"height":12}},{"id":"96dcae45-5192-45d0-a906-25af53059bdb","block_type":"box","text":"income, determined, in general, as if the regulated investment company’s taxable year ended on","page_number":215,"box":{"x":117,"y":382,"width":720,"height":12}},{"id":"cf8b3b40-2824-4672-8094-bc73a8edccbc","block_type":"box","text":"October 31, plus certain undistributed amounts from the previous years. While each Fund intends to","page_number":215,"box":{"x":116,"y":397,"width":747,"height":12}},{"id":"027b4b90-9fc9-49b3-85ad-e468d6f873ba","block_type":"box","text":"distribute its income and capital gains in the manner necessary to avoid imposition of the 4% excise","page_number":215,"box":{"x":116,"y":413,"width":745,"height":12}},{"id":"39e100af-611f-4330-9c1e-e90021b8bc92","block_type":"box","text":"tax, there can be no assurance that a sufficient amount of the Fund’s taxable income and capital gains","page_number":215,"box":{"x":116,"y":428,"width":765,"height":12}},{"id":"4d4d39f8-b1ad-4d44-b09b-d99e3259f972","block_type":"box","text":"will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for the","page_number":215,"box":{"x":116,"y":444,"width":758,"height":12}},{"id":"4f041cc0-12fe-4832-8986-461f2197d2a2","block_type":"box","text":"tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":215,"box":{"x":116,"y":459,"width":666,"height":12}},{"id":"607d90d9-4253-452b-a441-90c81b37487c","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year,","page_number":215,"box":{"x":117,"y":490,"width":754,"height":12}},{"id":"75d8ebaf-6125-4961-bc07-3eb6d3b34b0c","block_type":"box","text":"until they have been reduced to zero. In the event that the Fund were to experience an ownership","page_number":215,"box":{"x":117,"y":506,"width":729,"height":12}},{"id":"989ddc6b-b60e-4bd9-b234-9ddcc429a903","block_type":"box","text":"change as defined under the Code, the Fund’s loss carryforwards and other favorable tax attributes of","page_number":215,"box":{"x":116,"y":521,"width":761,"height":12}},{"id":"45edbc13-0533-4d87-bd50-24fea6fc27ec","block_type":"box","text":"the Fund, if any, may be subject to limitation.","page_number":215,"box":{"x":116,"y":537,"width":338,"height":12}},{"id":"5d5304aa-0d92-4a63-a96a-2d8798cb26ca","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain","page_number":215,"box":{"x":117,"y":568,"width":734,"height":12}},{"id":"fbbaf4cb-d7ea-4072-8863-14ba9224911e","block_type":"box","text":"over net long-term capital loss (together referred to as “ordinary income dividends”) are taxable to","page_number":215,"box":{"x":116,"y":583,"width":730,"height":12}},{"id":"8bdf5cf4-5a06-422e-92b9-6bb72f186ecc","block_type":"box","text":"shareholders as ordinary income. Distributions made from an excess of net long-term capital gain over","page_number":215,"box":{"x":116,"y":599,"width":766,"height":12}},{"id":"e93f5f33-ba7a-4faf-97a5-3fed32911413","block_type":"box","text":"net short-term capital loss (including gains or losses from certain transactions in futures and options)","page_number":215,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"89377648-9d10-47a3-bf75-0829939a8e5a","block_type":"box","text":"(“capital gain dividends”) are taxable to shareholders as long-term capital gains, regardless of the","page_number":215,"box":{"x":117,"y":630,"width":727,"height":12}},{"id":"3e98b217-9302-4f63-99d5-97edab390fbf","block_type":"box","text":"length of time the shareholder has owned Fund shares. Distributions paid by a Fund that are reported","page_number":215,"box":{"x":117,"y":645,"width":758,"height":12}},{"id":"8f3307f5-74b1-43df-a2d3-c1828c6fbff3","block_type":"box","text":"as exempt-interest dividends will not be subject to regular U.S. federal income tax. Certain dividend","page_number":215,"box":{"x":116,"y":661,"width":737,"height":12}},{"id":"68d22f18-e0c5-4753-9592-5caefbf9a546","block_type":"box","text":"income and long-term capital gains are eligible for taxation at a reduced rate that applies to","page_number":215,"box":{"x":117,"y":676,"width":675,"height":12}},{"id":"61c18847-77f8-4cda-9a4f-33947b7ec6f8","block_type":"box","text":"non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":215,"box":{"x":117,"y":692,"width":744,"height":12}},{"id":"0dd873e5-3d02-45e2-9483-ccae730c2940","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate","page_number":215,"box":{"x":116,"y":707,"width":693,"height":12}},{"id":"903adf20-a303-481a-813c-69c6372022b3","block_type":"box","text":"shareholder may be taxable to such shareholder at long-term capital gain rates provided the","page_number":215,"box":{"x":116,"y":723,"width":683,"height":12}},{"id":"54f5b144-07d4-45dd-9fef-00cfe0b0f554","block_type":"box","text":"shareholder has held the shares on which the dividend was paid for at least 61 days during the","page_number":215,"box":{"x":116,"y":738,"width":704,"height":12}},{"id":"53703867-f47c-434d-8382-e325de2d747e","block_type":"box","text":"121-day period that begins on the date that is 60 days before the date on which the shares become","page_number":215,"box":{"x":118,"y":754,"width":736,"height":12}},{"id":"9208d471-990c-48d9-81a0-d103b012de94","block_type":"box","text":"ex-dividend with respect to such dividend (or, in the case of certain accumulated dividends with respect","page_number":215,"box":{"x":116,"y":769,"width":767,"height":12}},{"id":"4bc0226f-0de6-4c06-aeda-e463a8c74138","block_type":"box","text":"to preferred stocks, the shareholder has held the shares on which the dividend was paid for at least","page_number":215,"box":{"x":116,"y":785,"width":738,"height":12}},{"id":"23369a6e-353a-416c-ad3f-87cc19c1e114","block_type":"box","text":"91 days during the 181-day period that begins on the date that is 90 days before the date on which the","page_number":215,"box":{"x":116,"y":800,"width":761,"height":12}},{"id":"6d1a36df-d96a-4081-a79d-3f27c5995ed2","block_type":"box","text":"shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s","page_number":215,"box":{"x":116,"y":816,"width":678,"height":12}},{"id":"e82f2e92-2a6d-4e84-aab2-803705472019","block_type":"box","text":"distributions are derived from income on debt securities, certain types of preferred stock treated as","page_number":215,"box":{"x":116,"y":831,"width":737,"height":12}},{"id":"f706f634-cc24-4f41-877d-5bec8802ddba","block_type":"box","text":"debt for U.S. federal income tax purposes and short-term capital gains, such distributions will not","page_number":215,"box":{"x":116,"y":847,"width":723,"height":12}},{"id":"1d77e235-8c88-468c-abc9-026397e86a21","block_type":"box","text":"constitute “qualified dividend income.” In addition, distributions that are derived from securities lending","page_number":215,"box":{"x":116,"y":862,"width":762,"height":12}},{"id":"266e0188-7de6-4d19-a131-de5a9ed205b1","block_type":"box","text":"income, such as substitute dividend payments, will not constitute “qualified dividend income.”","page_number":215,"box":{"x":117,"y":878,"width":694,"height":12}},{"id":"e774c0ed-2f20-4dfc-be5d-4b651a962234","block_type":"box","text":"II-165","page_number":215,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"832bae43-fd0f-4af0-a3a4-8fb8d24d4d2e","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":215,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"ba6e59f8-df8a-4e4e-93ed-51a2c49ec9c8","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and","page_number":216,"box":{"x":116,"y":87,"width":757,"height":12}},{"id":"451a7798-ec3b-4365-b546-4bf2e21b5321","block_type":"box","text":"redemption proceeds) of certain individuals, trusts and estates.","page_number":216,"box":{"x":117,"y":102,"width":471,"height":13}},{"id":"c1728a66-9c70-4e9f-b14f-dcc3bd6da2b9","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses)","page_number":216,"box":{"x":116,"y":134,"width":759,"height":12}},{"id":"8271c225-770a-4ab5-87fa-4f054cfbe577","block_type":"box","text":"is not subject to the 90% distribution requirement for taxation as a regulated investment company,","page_number":216,"box":{"x":117,"y":149,"width":731,"height":12}},{"id":"3b0eea02-28a1-44cf-8dc8-8d2369df2cc6","block_type":"box","text":"described above. If a Fund retains net capital gain, it is subject to tax on that gain, and may designate","page_number":216,"box":{"x":116,"y":165,"width":760,"height":12}},{"id":"612c0478-b69c-4aa2-a951-1308d20c5dd0","block_type":"box","text":"the retained amount as undistributed capital gain in a written statement furnished to its shareholders,","page_number":216,"box":{"x":116,"y":180,"width":753,"height":12}},{"id":"6401b121-cc54-4726-9f10-20e7fb183a2b","block_type":"box","text":"who will be required to include in income, as long-term capital gain, their proportionate shares of such","page_number":216,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"46538dc8-04cc-481e-8868-a2049efe2fde","block_type":"box","text":"undistributed net capital gain, will be deemed to have paid and may claim as a credit against their U.S.","page_number":216,"box":{"x":117,"y":211,"width":765,"height":12}},{"id":"344220da-cc43-46ec-b3cb-56748b94d611","block_type":"box","text":"federal income tax liability (and as a refund to the extent it exceeds that liability) their proportionate","page_number":216,"box":{"x":116,"y":227,"width":737,"height":12}},{"id":"0274c239-302e-4ba2-9696-82789a4179f4","block_type":"box","text":"shares of the tax paid by the Fund on that gain, and shall increase the tax basis of their shares in the","page_number":216,"box":{"x":116,"y":242,"width":753,"height":12}},{"id":"a7fd0c34-392d-4cc7-9438-526024517792","block_type":"box","text":"Fund by the excess of the amount included in income over the amount allowed as a credit against their","page_number":216,"box":{"x":117,"y":258,"width":768,"height":12}},{"id":"c2df7566-f924-4508-aa85-e6c175d95514","block_type":"box","text":"taxes.","page_number":216,"box":{"x":116,"y":273,"width":49,"height":10}},{"id":"34912158-78e0-444a-97b2-ed0038ae71e3","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the","page_number":216,"box":{"x":117,"y":304,"width":745,"height":12}},{"id":"f2abb445-23b9-44d9-9103-00656e559099","block_type":"box","text":"adjusted tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will","page_number":216,"box":{"x":116,"y":320,"width":713,"height":12}},{"id":"4cab593c-2f02-400f-8e96-15b12a8336fa","block_type":"box","text":"constitute capital gains to such holder (assuming the shares are held as a capital asset). Distributions","page_number":216,"box":{"x":116,"y":335,"width":759,"height":12}},{"id":"2efa1ee3-a7c8-4f11-95fb-04c073323db2","block_type":"box","text":"in excess of a Fund’s minimum distribution requirements (or taxable income) but not in excess of a","page_number":216,"box":{"x":117,"y":351,"width":736,"height":12}},{"id":"dfb55a3e-6cef-429f-8d47-812683720668","block_type":"box","text":"Fund’s earnings and profits will be taxable to shareholders and will not constitute nontaxable returns of","page_number":216,"box":{"x":117,"y":366,"width":766,"height":12}},{"id":"87495ff6-1209-4935-89bb-1b35ae91e415","block_type":"box","text":"capital. In the case of a Fund with a non-calendar taxable year, a Fund’s earnings and profits are","page_number":216,"box":{"x":116,"y":382,"width":724,"height":12}},{"id":"988d67f1-a8d2-4e9c-b94d-9b73f748e28e","block_type":"box","text":"allocated first to distributions made on or before December 31 of the taxable year, and then to","page_number":216,"box":{"x":116,"y":397,"width":702,"height":12}},{"id":"c0224996-c453-465e-8d7a-cd29ccfb6c6b","block_type":"box","text":"distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of Fund","page_number":216,"box":{"x":116,"y":413,"width":766,"height":12}},{"id":"db325925-f08f-4847-a81a-c549d5b4df04","block_type":"box","text":"shares held for six months or less will be treated as long-term capital loss to the extent of any capital","page_number":216,"box":{"x":116,"y":428,"width":751,"height":12}},{"id":"6e6f57ec-c885-4d7e-90b3-60e9cf604ae0","block_type":"box","text":"gain dividends received by the shareholder.","page_number":216,"box":{"x":116,"y":444,"width":329,"height":12}},{"id":"d1d30031-178d-43bd-b97e-bbc5e2679fd5","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in","page_number":216,"box":{"x":116,"y":475,"width":755,"height":12}},{"id":"a3c93f90-65da-4b3f-8b9a-d1eebff26e12","block_type":"box","text":"additional shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains,","page_number":216,"box":{"x":116,"y":490,"width":744,"height":12}},{"id":"3659b3c4-1ca5-4b90-b886-f9b5e7b3d0ac","block_type":"box","text":"generally will not be eligible for the dividends received deduction allowed to corporations under the","page_number":216,"box":{"x":116,"y":506,"width":736,"height":12}},{"id":"e1a42347-dd95-441f-8faf-595af144a7c2","block_type":"box","text":"Code. If a Fund pays a dividend in January that was declared in the previous October, November or","page_number":216,"box":{"x":117,"y":521,"width":745,"height":12}},{"id":"b8ae196d-bb09-4d96-9c37-5cf52c6fa0c7","block_type":"box","text":"December to shareholders of record on a specified date in one of such months, then such dividend","page_number":216,"box":{"x":117,"y":537,"width":738,"height":12}},{"id":"667d243a-3981-4c20-bda0-ff0708766334","block_type":"box","text":"will be treated for tax purposes as being paid by the Fund and received by its shareholders on","page_number":216,"box":{"x":116,"y":552,"width":702,"height":12}},{"id":"c1a8530a-e222-45d3-b7e6-8ab7c471cddd","block_type":"box","text":"December 31 of the year in which the dividend was declared. In the case of a Fund with a","page_number":216,"box":{"x":117,"y":568,"width":670,"height":12}},{"id":"5b1ba32c-90cf-40bf-9654-8a0bb96756cc","block_type":"box","text":"non-calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable","page_number":216,"box":{"x":117,"y":583,"width":767,"height":12}},{"id":"53b058f6-1e9f-4811-aa72-693020cbdca6","block_type":"box","text":"year, then the Fund will reduce the amounts reported as capital gains. Where possible, such reduction","page_number":216,"box":{"x":116,"y":599,"width":764,"height":12}},{"id":"d7447324-1e3b-4227-9dc5-4d238c0bd654","block_type":"box","text":"will first be allocated to dividends made after December 31 of such taxable year. A Fund may elect to","page_number":216,"box":{"x":116,"y":614,"width":755,"height":12}},{"id":"60da88fa-70f6-42d9-a790-d1bea3f5a76e","block_type":"box","text":"defer recognizing, until the following taxable year, certain net capital losses arising after October 31 of","page_number":216,"box":{"x":116,"y":630,"width":761,"height":12}},{"id":"de3aaad9-c51f-41b8-8630-6fb2db00034a","block_type":"box","text":"the current taxable year, and certain net ordinary losses arising after October 31 and/or December 31","page_number":216,"box":{"x":116,"y":645,"width":759,"height":12}},{"id":"531c717f-d4a0-40f8-b5a6-c3ebf07162d2","block_type":"box","text":"of the current taxable year. This may have the effect of increasing the amount of dividends otherwise","page_number":216,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"f1d68086-51b1-4df9-b68d-ed7968a2be8d","block_type":"box","text":"includible in the shareholder’s income with respect to the current taxable year.","page_number":216,"box":{"x":117,"y":676,"width":577,"height":12}},{"id":"43537bba-e2b7-4156-b533-96d9bbe94864","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares.","page_number":216,"box":{"x":117,"y":707,"width":753,"height":12}},{"id":"641aa6cb-9e26-4633-a5a0-05b290daa6ef","block_type":"box","text":"A shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the","page_number":216,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"f75311a0-7045-4df7-b875-9307a4a29a37","block_type":"box","text":"shareholder’s tax basis in the converted Investor C Shares and the holding period of the acquired","page_number":216,"box":{"x":116,"y":738,"width":722,"height":12}},{"id":"cc4cce00-17f7-487a-bd98-1c494b6cc30b","block_type":"box","text":"Investor A Shares will include the holding period for the converted Investor C Shares.","page_number":216,"box":{"x":117,"y":754,"width":631,"height":12}},{"id":"019641d2-62b5-451a-8580-fdeb1967406b","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a","page_number":216,"box":{"x":117,"y":785,"width":754,"height":12}},{"id":"1f89dad2-c80d-42fa-9b1e-cd323df8efa8","block_type":"box","text":"Fund, but on or before January 31 of the following year, then the loss that the shareholder recognizes","page_number":216,"box":{"x":117,"y":800,"width":752,"height":12}},{"id":"4639c5cc-6be3-4fe1-993b-a906796a74fe","block_type":"box","text":"on the exchange will be reduced (or the gain increased) to the extent any sales charge paid on the","page_number":216,"box":{"x":116,"y":816,"width":731,"height":12}},{"id":"cccf9076-8d0f-4b67-9ebc-08f00ceb92bd","block_type":"box","text":"exchanged shares reduces any sales charge the shareholder would have owed upon the purchase of","page_number":216,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"16bcc327-d1b5-45b5-8793-9f227b6bd749","block_type":"box","text":"the new shares in the absence of the exchange privilege. Instead, such sales charge will be treated as","page_number":216,"box":{"x":116,"y":847,"width":765,"height":12}},{"id":"d9d5c827-c9ef-4bd2-9533-7471256ee8cb","block_type":"box","text":"an amount paid for the new shares.","page_number":216,"box":{"x":116,"y":862,"width":268,"height":12}},{"id":"6c5ed2b2-c1cc-45df-8862-86295e501a36","block_type":"box","text":"II-166","page_number":216,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"e43ac830-9ee1-424f-ab2e-dbee53dcb7f8","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":216,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"43519a72-8dee-43e7-8e00-3374e86f70f3","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially","page_number":217,"box":{"x":116,"y":87,"width":722,"height":12}},{"id":"42803d98-ee30-4960-a5df-e6274a02e777","block_type":"box","text":"identical shares are acquired (whether through the automatic reinvestment of dividends or otherwise)","page_number":217,"box":{"x":117,"y":102,"width":754,"height":13}},{"id":"55470c32-097e-4020-b93b-5b42aa1c63ba","block_type":"box","text":"within a 61-day period beginning 30 days before and ending 30 days after the date on which the","page_number":217,"box":{"x":116,"y":118,"width":717,"height":12}},{"id":"f641309e-ccd9-405d-914a-47f660b0add5","block_type":"box","text":"shares are sold or exchanged. In such case, the basis of the shares acquired will be adjusted to reflect","page_number":217,"box":{"x":116,"y":134,"width":767,"height":12}},{"id":"06e50b1e-8d47-410c-a33f-eeb584cb42df","block_type":"box","text":"the disallowed loss.","page_number":217,"box":{"x":116,"y":149,"width":150,"height":10}},{"id":"0df91efa-e879-4b71-8ba5-b46a9b5517bb","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis","page_number":217,"box":{"x":116,"y":176,"width":716,"height":12}},{"id":"2382039f-6737-496d-8efd-d72c7f39e4f5","block_type":"box","text":"information for shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after","page_number":217,"box":{"x":117,"y":192,"width":744,"height":12}},{"id":"5c7456f2-9c34-4329-b33f-0e576a6d2399","block_type":"box","text":"that date. This information includes the adjusted cost basis of the shares, the gross proceeds from","page_number":217,"box":{"x":116,"y":207,"width":734,"height":12}},{"id":"83f57e12-7c7c-4cb9-8cc2-129f643e0888","block_type":"box","text":"disposition, and whether the gain or loss is long-term or short-term. The adjusted cost basis of shares","page_number":217,"box":{"x":116,"y":223,"width":759,"height":12}},{"id":"1b5282e2-c0b0-4f15-b4d3-9e3ce8154478","block_type":"box","text":"will be based on the default cost basis reporting method selected by the Fund, unless a shareholder,","page_number":217,"box":{"x":116,"y":238,"width":751,"height":12}},{"id":"4bf42349-9b79-44b3-a438-a1a8bd6c5468","block_type":"box","text":"before the sale or redemption, informs the Fund that it has selected a different IRS-accepted method","page_number":217,"box":{"x":117,"y":254,"width":751,"height":12}},{"id":"2553ff6b-1a0c-4986-8021-3e1562d0b20a","block_type":"box","text":"offered by the Fund. These requirements, however, will not apply for investments through an IRA or","page_number":217,"box":{"x":116,"y":269,"width":745,"height":12}},{"id":"1f6804c3-fe09-4006-bd05-ec84e7eb5c22","block_type":"box","text":"other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":217,"box":{"x":116,"y":285,"width":744,"height":12}},{"id":"03c1913e-5354-430d-9fe6-ab2db8d53572","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these new cost","page_number":217,"box":{"x":116,"y":300,"width":734,"height":11}},{"id":"f6e4a804-ef6b-4e44-a9fb-ff765dfffce5","block_type":"box","text":"basis reporting requirements apply to them. For shares of a Fund acquired before January 1, 2012,","page_number":217,"box":{"x":117,"y":316,"width":740,"height":12}},{"id":"84d8fa70-ec70-4f66-bf1e-81293f69b249","block_type":"box","text":"these new requirements will not apply, but the Fund will continue to report to the IRS the gross","page_number":217,"box":{"x":116,"y":331,"width":706,"height":12}},{"id":"5bce1bea-7a5d-4aa2-ab9d-c62592c9e642","block_type":"box","text":"proceeds received by a shareholder from the sale or redemption of such shares.","page_number":217,"box":{"x":117,"y":347,"width":600,"height":12}},{"id":"1c3787f5-aa85-4c6b-97cd-e8adc65fe208","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts","page_number":217,"box":{"x":117,"y":374,"width":756,"height":12}},{"id":"e46767ab-5357-4ccf-b440-15aa37127d65","block_type":"box","text":"and swap agreements. The U.S. federal income tax treatment of a derivative contract may not be as","page_number":217,"box":{"x":116,"y":389,"width":749,"height":12}},{"id":"634f8cf0-c757-40d0-a83a-463ef82c0e0b","block_type":"box","text":"favorable as a direct investment in the underlying security and may adversely affect the timing,","page_number":217,"box":{"x":116,"y":405,"width":707,"height":12}},{"id":"3adc5db4-caeb-45f8-8308-28e7fabb2b40","block_type":"box","text":"character and amount of income the Fund realizes from its investments. As a result, a larger portion of","page_number":217,"box":{"x":116,"y":420,"width":764,"height":12}},{"id":"c4d59042-bef9-46ee-bf56-a3dba9efe929","block_type":"box","text":"the Fund’s distributions may be treated as ordinary income rather than capital gains. In addition,","page_number":217,"box":{"x":116,"y":436,"width":717,"height":12}},{"id":"859a615f-fff5-4731-b4d6-9cbf3568e522","block_type":"box","text":"section 1256 contracts held by a Fund at the end of each taxable year (and, for purposes of the 4%","page_number":217,"box":{"x":116,"y":451,"width":742,"height":12}},{"id":"855700ef-e066-43e5-8697-723f331be2f7","block_type":"box","text":"excise tax, certain other dates as prescribed under the Code) are generally “marked-to-market,” such","page_number":217,"box":{"x":116,"y":467,"width":756,"height":12}},{"id":"e1be614d-7a62-4a3a-a5d2-7582767ce27d","block_type":"box","text":"that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":217,"box":{"x":116,"y":482,"width":755,"height":12}},{"id":"d27d11e5-ba70-4ff3-b466-6817cfc57a3a","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount","page_number":217,"box":{"x":116,"y":498,"width":749,"height":12}},{"id":"d0ca33cd-3c42-40a9-900a-d8e3b7b33e06","block_type":"box","text":"that must be distributed to meet distribution requirements and avoid the excise tax. In addition, the tax","page_number":217,"box":{"x":116,"y":514,"width":762,"height":11}},{"id":"4baffa65-9e08-4238-836e-0812df4505d0","block_type":"box","text":"treatment of certain derivative contracts, such as swap agreements, is unsettled and may be subject to","page_number":217,"box":{"x":116,"y":529,"width":768,"height":12}},{"id":"4c1b563c-98e4-476c-9d50-d3ce5fcc1d05","block_type":"box","text":"future legislation, regulation or administrative pronouncements issued by the IRS. If such future","page_number":217,"box":{"x":116,"y":544,"width":712,"height":12}},{"id":"cddf52f5-cea5-448b-acf4-4819f47e587f","block_type":"box","text":"guidance limits the Fund’s ability to use derivatives, the Fund may have to find other ways of achieving","page_number":217,"box":{"x":116,"y":560,"width":767,"height":12}},{"id":"015bef06-52b3-45a7-b1ed-b76c7fb7a4cb","block_type":"box","text":"its investment objectives.","page_number":217,"box":{"x":117,"y":576,"width":191,"height":11}},{"id":"274652ea-8323-4203-82af-a1e5dbeb4a84","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional","page_number":217,"box":{"x":117,"y":602,"width":716,"height":13}},{"id":"413ea830-6b12-40d6-a64e-b672c850f718","block_type":"box","text":"principal contracts rather than as section 1256 contracts. This can affect the type of income earned by","page_number":217,"box":{"x":117,"y":618,"width":762,"height":12}},{"id":"7ad2adfb-460c-45c4-8178-4af67adb1467","block_type":"box","text":"such swap agreements since all the income on a notional principal contract may be ordinary income,","page_number":217,"box":{"x":116,"y":634,"width":752,"height":12}},{"id":"4ef3641f-f6ac-46b3-9d27-b0b5ec6cb7fa","block_type":"box","text":"whereas 40% of the gain on a section 1256 contract is treated as short-term capital gain taxed at","page_number":217,"box":{"x":116,"y":649,"width":724,"height":12}},{"id":"4cbe3f6e-b669-430c-9cb7-5775558768a8","block_type":"box","text":"ordinary rates and 60% is treated as long-term capital gain taxed at more favorable rates when","page_number":217,"box":{"x":116,"y":665,"width":703,"height":12}},{"id":"2759fc19-03a8-4027-9ee8-b90c1a1ffd93","block_type":"box","text":"distributed to shareholders. The rest is long-term capital gain, which may be taxable at more favorable","page_number":217,"box":{"x":116,"y":680,"width":758,"height":12}},{"id":"f5df7834-da8a-4b52-a4c8-3039c7f0df6f","block_type":"box","text":"rates than ordinary income. Proposed regulations interpret what types of swap agreements are to be","page_number":217,"box":{"x":117,"y":696,"width":745,"height":12}},{"id":"aa94f034-0e71-4def-a2a5-7842ca43c15a","block_type":"box","text":"treated as notional principal contracts rather than as section 1256 contracts. When finalized, these","page_number":217,"box":{"x":116,"y":711,"width":730,"height":12}},{"id":"172c6a6c-db35-4377-8511-e393c84d95fd","block_type":"box","text":"regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":217,"box":{"x":117,"y":727,"width":751,"height":12}},{"id":"9dc4cee8-c130-4994-8711-caa492621867","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":217,"box":{"x":116,"y":742,"width":718,"height":12}},{"id":"3182422d-31a8-4441-9544-e1219bfc9ac1","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are","page_number":217,"box":{"x":117,"y":769,"width":714,"height":12}},{"id":"4c1ee279-2f2f-469b-9946-0164fa455217","block_type":"box","text":"issued at a discount or provide for deferred interest. Even though a Fund receives no actual interest","page_number":217,"box":{"x":117,"y":785,"width":740,"height":12}},{"id":"15ba2045-dc35-412c-866f-ff635d16a0ef","block_type":"box","text":"payments on these securities, it will be deemed to receive income equal, generally, to a portion of the","page_number":217,"box":{"x":117,"y":800,"width":751,"height":12}},{"id":"fba5dc88-4f30-4abe-b977-02b8d8aa6af3","block_type":"box","text":"excess of the stated redemption price of the securities over their issue price (“original issue discount”)","page_number":217,"box":{"x":116,"y":816,"width":754,"height":12}},{"id":"b3e9b3bb-af2d-476b-a318-4e91295fda10","block_type":"box","text":"each year that the securities are held. Since the original issue discount income earned by a Fund in a","page_number":217,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"546bb1d4-6b72-444b-a7aa-cd43eb511f72","block_type":"box","text":"taxable year may not be represented by cash income, the Fund may have to dispose of securities,","page_number":217,"box":{"x":116,"y":847,"width":734,"height":12}},{"id":"be82c627-6753-40f2-a76e-c658ccdd9a01","block_type":"box","text":"which it might otherwise have continued to hold, or borrow to generate cash in order to satisfy its","page_number":217,"box":{"x":116,"y":862,"width":722,"height":12}},{"id":"e1fb126d-bbfb-4af4-9853-5d7510292fad","block_type":"box","text":"distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign currency","page_number":217,"box":{"x":116,"y":878,"width":737,"height":12}},{"id":"caed456c-869e-457f-8b24-9bc4d2bc4097","block_type":"box","text":"II-167","page_number":217,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"6cd90266-6604-45c9-a3e1-148c368b0de9","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":217,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"3ccd6178-2cc7-4e91-9f61-0f199c76d7c3","block_type":"box","text":"denominated or referenced debt securities, certain asset-backed securities and contingent payment","page_number":218,"box":{"x":116,"y":87,"width":744,"height":12}},{"id":"4bebcfa6-f003-42b3-91d2-cb5a05504e60","block_type":"box","text":"and inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of","page_number":218,"box":{"x":116,"y":102,"width":720,"height":13}},{"id":"7281c72d-0d90-4f73-bec2-ea56a641b7f0","block_type":"box","text":"income, including the recognition of taxable income in excess of cash generated by such investments.","page_number":218,"box":{"x":117,"y":118,"width":761,"height":12}},{"id":"03f522c5-d5d2-4c3f-a4ae-733eada68224","block_type":"box","text":"Any transaction by the Fund in foreign currencies, foreign currency-denominated debt obligations or","page_number":218,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"fe325ddf-f9e4-40ac-b321-7f9d4a4e4ef8","block_type":"box","text":"certain foreign currency options, futures contracts or forward contracts (or similar instruments) may","page_number":218,"box":{"x":116,"y":149,"width":739,"height":12}},{"id":"49e8f216-1668-4fcf-af78-a806e04792d0","block_type":"box","text":"give rise to ordinary income or loss to the extent such income or loss results from fluctuations in the","page_number":218,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"0950470a-d558-4f9d-a4f8-a03915e221e5","block_type":"box","text":"value of the foreign currency concerned. Any such net gains could require a larger dividend toward the","page_number":218,"box":{"x":116,"y":180,"width":766,"height":12}},{"id":"e24fe607-2e81-426d-834d-0e8dfdfc2608","block_type":"box","text":"end of the calendar year. Any such net losses will generally reduce and potentially require the","page_number":218,"box":{"x":116,"y":196,"width":700,"height":12}},{"id":"3f33761c-0a72-42ea-a9cd-a62b20f46c11","block_type":"box","text":"recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":218,"box":{"x":117,"y":211,"width":698,"height":12}},{"id":"aeeeb4fe-0184-4532-8475-351beaf0a0e0","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as","page_number":218,"box":{"x":116,"y":227,"width":753,"height":9}},{"id":"fb4f580a-1248-4f8d-af82-4ae23147a576","block_type":"box","text":"ordinary income. Any net ordinary losses so created cannot be carried forward by the Fund to offset","page_number":218,"box":{"x":116,"y":242,"width":746,"height":12}},{"id":"b184649f-817c-4b61-99bc-8fefebba7da6","block_type":"box","text":"income or gains earned in subsequent taxable years.","page_number":218,"box":{"x":117,"y":258,"width":398,"height":12}},{"id":"ec907b5b-74d1-4daf-a30e-d3980564788f","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other","page_number":218,"box":{"x":116,"y":289,"width":749,"height":12}},{"id":"cb1bc447-11cc-4910-8785-ecabdd819ef1","block_type":"box","text":"than pass-through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S.","page_number":218,"box":{"x":116,"y":304,"width":771,"height":12}},{"id":"811c9811-fabc-4ada-adac-0d55b7190022","block_type":"box","text":"withholding tax under existing provisions of the Code applicable to foreign individuals and entities","page_number":218,"box":{"x":116,"y":320,"width":726,"height":12}},{"id":"a4240293-dcef-412f-8c20-feef0bec947b","block_type":"box","text":"unless a reduced rate of withholding or a withholding exemption is provided under applicable treaty","page_number":218,"box":{"x":117,"y":335,"width":738,"height":12}},{"id":"a409f1c0-3310-47a5-a967-ae77b262e730","block_type":"box","text":"law. Capital gain dividends paid to shareholders that are nonresident aliens or foreign entities, if and to","page_number":218,"box":{"x":117,"y":351,"width":766,"height":12}},{"id":"f4438b1e-4d6c-400e-8ca0-fb6ee00ca154","block_type":"box","text":"the extent properly reported as capital gain dividends, generally will not be subject to a 30%","page_number":218,"box":{"x":116,"y":366,"width":685,"height":12}},{"id":"78cc8d6b-a8d8-4aa4-8fd9-3a29564b3282","block_type":"box","text":"withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":218,"box":{"x":116,"y":382,"width":699,"height":12}},{"id":"3758aa61-95dc-41ce-a3df-5d384e9c629c","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original","page_number":218,"box":{"x":116,"y":397,"width":771,"height":12}},{"id":"324cac14-d12d-450f-986c-66055620896a","block_type":"box","text":"issue discount and market discount) and paid to shareholders who are nonresident aliens or foreign","page_number":218,"box":{"x":117,"y":413,"width":743,"height":12}},{"id":"888ccc05-3584-4ef2-8081-542f322660d9","block_type":"box","text":"entities, if and to the extent properly reported as “short-term capital gain dividends” or “interest-related","page_number":218,"box":{"x":116,"y":428,"width":762,"height":12}},{"id":"802b6a66-cd71-43d2-a1d8-9895ee98fbd0","block_type":"box","text":"dividends”, respectively, generally will not be subject to U.S. withholding tax. Where possible, the","page_number":218,"box":{"x":116,"y":444,"width":725,"height":12}},{"id":"ff0ec65d-44d9-47e9-9e71-024827b284b1","block_type":"box","text":"Funds intend to report such dividends as interest-related dividends or short-term capital gain dividends.","page_number":218,"box":{"x":117,"y":459,"width":771,"height":12}},{"id":"59a076ba-493e-4dc1-8128-7450c6745d33","block_type":"box","text":"However, depending on its circumstances, a Fund may report all, some or none of its potentially","page_number":218,"box":{"x":117,"y":475,"width":716,"height":12}},{"id":"ddb9e3f0-e77d-4b13-a223-dd99d7652a50","block_type":"box","text":"eligible dividends as interest-related or as short-term capital gain dividends, and/or treat such","page_number":218,"box":{"x":116,"y":490,"width":697,"height":12}},{"id":"3883a1eb-8dfe-4ce6-862f-13bbca6022bf","block_type":"box","text":"dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":218,"box":{"x":116,"y":506,"width":743,"height":12}},{"id":"5261e8df-9329-44f2-82f1-ce903ee6e9ff","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification","page_number":218,"box":{"x":116,"y":521,"width":712,"height":12}},{"id":"357f7898-f31d-4eb3-b9b2-23eb25d62982","block_type":"box","text":"requirements relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS","page_number":218,"box":{"x":117,"y":537,"width":757,"height":12}},{"id":"fa975345-4393-40c3-a743-4381a4275fe0","block_type":"box","text":"Form W-8BEN-E or substitute Form). In the case of shares held through an intermediary, the","page_number":218,"box":{"x":117,"y":552,"width":693,"height":12}},{"id":"c76a78eb-8261-4a83-b2fd-9dced0c4be15","block_type":"box","text":"intermediary may withhold even if the Fund reports the payment as an interest-related or short-term","page_number":218,"box":{"x":117,"y":568,"width":743,"height":12}},{"id":"9adcdff1-59c3-4969-bae6-bcdc0b19fa6d","block_type":"box","text":"capital gain dividend. Foreign shareholders should contact their intermediaries with respect to the","page_number":218,"box":{"x":116,"y":583,"width":727,"height":12}},{"id":"adbc8924-dc5c-4015-a114-09eb60170f36","block_type":"box","text":"application of these rules to their accounts. It is not possible to predict what portion, if any, of a Fund’s","page_number":218,"box":{"x":116,"y":599,"width":762,"height":12}},{"id":"9743ed4c-1737-49cf-a984-2be12d21fd3c","block_type":"box","text":"distributions will be reported as interest-related dividends or short-term capital gain dividends under","page_number":218,"box":{"x":116,"y":614,"width":742,"height":12}},{"id":"2c29900a-3f27-40fa-86d1-44ad3a5a254a","block_type":"box","text":"these rules.","page_number":218,"box":{"x":116,"y":630,"width":91,"height":9}},{"id":"93d7d34a-5a3c-4d33-8a2f-358c74cac472","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S.","page_number":218,"box":{"x":117,"y":661,"width":737,"height":12}},{"id":"c8693792-096b-4955-af1d-a5d14b3a2b85","block_type":"box","text":"real property interests” (as defined in the Code and Treasury regulations) at any time during the five","page_number":218,"box":{"x":117,"y":676,"width":745,"height":12}},{"id":"9a35d2a8-989d-46ec-a331-467138a83763","block_type":"box","text":"year period ending on the date of the distributions, to the extent the distributions are attributable to","page_number":218,"box":{"x":116,"y":692,"width":729,"height":12}},{"id":"a4f53aaa-3ee2-454e-9998-12e1a1077b99","block_type":"box","text":"gains from sales or exchanges of U.S. real property interests (including shares in certain “U.S. real","page_number":218,"box":{"x":116,"y":707,"width":731,"height":12}},{"id":"2c3f15cc-ae41-43ff-997d-2b827febc32f","block_type":"box","text":"property holding corporations” such as certain REITs, although exceptions may apply if any class of","page_number":218,"box":{"x":117,"y":723,"width":739,"height":12}},{"id":"3d39219c-106b-40f6-a02d-bba9d8492f47","block_type":"box","text":"stock of such a corporation is regularly traded on an established securities market and the Fund has","page_number":218,"box":{"x":116,"y":738,"width":743,"height":12}},{"id":"3cfe3934-3958-458a-9580-3b0b49d407c0","block_type":"box","text":"held no more than 5% of such class of stock at all times during the five-year period ending on the date","page_number":218,"box":{"x":117,"y":754,"width":757,"height":12}},{"id":"1de39324-b084-4a19-af85-90ed7cbdfa79","block_type":"box","text":"of the distributions), generally must be treated by such foreign shareholders as income effectively","page_number":218,"box":{"x":116,"y":769,"width":723,"height":12}},{"id":"58663906-2740-4655-8646-000b3e0b4c92","block_type":"box","text":"connected to a trade or business within the United States, which is generally subject to tax at the","page_number":218,"box":{"x":116,"y":785,"width":718,"height":12}},{"id":"e3545f71-8207-4114-9b58-a60643afa038","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that","page_number":218,"box":{"x":116,"y":800,"width":743,"height":12}},{"id":"b2dbb7ee-5015-4009-a830-5b9b3213129f","block_type":"box","text":"held no more than 5% of any class of stock of the Fund at all times during the previous one-year period","page_number":218,"box":{"x":117,"y":816,"width":764,"height":12}},{"id":"089dde07-439c-4a17-b31a-2b2559ea2986","block_type":"box","text":"ending on the date of the distributions. Such distributions will be subject to U.S. income and","page_number":218,"box":{"x":116,"y":831,"width":685,"height":12}},{"id":"e0146634-07d7-4fa8-a11f-d50e5d645b4d","block_type":"box","text":"withholding tax and generally will require a foreign shareholder to file a U.S. federal income tax return.","page_number":218,"box":{"x":116,"y":847,"width":762,"height":12}},{"id":"53512c45-f166-4545-a26e-bd7eb8c38cdb","block_type":"box","text":"If the foreign shareholder held no more than 5% of any class of stock of the Fund at all times during the","page_number":218,"box":{"x":117,"y":862,"width":771,"height":12}},{"id":"c6c1d46f-58ef-45e6-abbf-63df5afc9593","block_type":"box","text":"previous one-year period ending on the date of the distributions, the distributions will be taxable as","page_number":218,"box":{"x":117,"y":878,"width":735,"height":12}},{"id":"aae89879-10c7-4eb6-9583-ecd3b0873c0a","block_type":"box","text":"II-168","page_number":218,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"fc974c9a-ff55-428e-a0c7-8a2e1a7c9861","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":218,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"fdf295ab-1919-4998-9321-630bf73ae506","block_type":"box","text":"ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition, sales or","page_number":219,"box":{"x":116,"y":87,"width":711,"height":12}},{"id":"8dcb8032-4534-4435-963b-12c7bcae4dcf","block_type":"box","text":"redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to","page_number":219,"box":{"x":117,"y":102,"width":758,"height":13}},{"id":"94427103-654c-4a2a-a936-e257fd446330","block_type":"box","text":"U.S. income and withholding tax and generally will require the foreign shareholder to file a U.S. federal","page_number":219,"box":{"x":117,"y":118,"width":765,"height":12}},{"id":"d7af3125-dad2-4dd6-b31c-de664b4df743","block_type":"box","text":"income tax return, although exceptions may apply if more than 50% of the value of the Fund’s shares","page_number":219,"box":{"x":117,"y":134,"width":755,"height":12}},{"id":"0230f8bf-ac8a-49b7-aa67-c096ebe4e417","block_type":"box","text":"are held by U.S. shareholders or the foreign shareholder selling or redeeming the shares has held no","page_number":219,"box":{"x":116,"y":149,"width":756,"height":12}},{"id":"e1549126-95b1-4327-898f-f2bd0dbdabd4","block_type":"box","text":"more than 5% of any class of stock of the Fund at all times during the five-year period ending on the","page_number":219,"box":{"x":117,"y":165,"width":747,"height":12}},{"id":"b94b2b55-d7e9-46c5-bf12-bd959f1c9ccf","block_type":"box","text":"date of the sale or redemption.","page_number":219,"box":{"x":116,"y":180,"width":233,"height":12}},{"id":"d315ab1a-578c-41b5-9a28-4f84d7ba54ff","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions","page_number":219,"box":{"x":117,"y":211,"width":762,"height":12}},{"id":"307204ac-33d4-49a1-a2c3-2190c55494bf","block_type":"box","text":"and other distributions made in the form of U.S. real property interests (including shares in certain","page_number":219,"box":{"x":116,"y":227,"width":730,"height":12}},{"id":"02581fdb-2f29-4d6b-927d-defbcdc6dc18","block_type":"box","text":"“U.S. real property holding corporations”, although exceptions may apply if any class of stock of such a","page_number":219,"box":{"x":116,"y":242,"width":768,"height":12}},{"id":"0b59145e-63a4-4d28-884b-bfda29ecb7d3","block_type":"box","text":"corporation is regularly traded on an established securities market and the Fund has held no more than","page_number":219,"box":{"x":116,"y":258,"width":772,"height":12}},{"id":"fd35a588-bd28-4b81-97c1-aee5f1d9c989","block_type":"box","text":"5% of such class of stock at all times during the five-year period ending on the date of the distribution)","page_number":219,"box":{"x":116,"y":273,"width":762,"height":12}},{"id":"52b36aee-fbe2-4707-b207-23af1c52ce96","block_type":"box","text":"generally will cause the Fund to recognize a portion of any unrecognized gain in the U.S. real property","page_number":219,"box":{"x":116,"y":289,"width":763,"height":12}},{"id":"83abc162-2f57-450b-9d3f-48e264b244e4","block_type":"box","text":"interests equal to the product of (i) the excess of fair market value of such U.S. real property interests","page_number":219,"box":{"x":117,"y":304,"width":756,"height":12}},{"id":"0f071043-6c6f-424a-a3b8-4d651540e71a","block_type":"box","text":"over the Fund’s adjusted bases in such interests and (ii) the greatest foreign ownership percentage of","page_number":219,"box":{"x":116,"y":320,"width":759,"height":12}},{"id":"87ecd77a-a8ec-4068-bd18-af927c202236","block_type":"box","text":"the Fund during the five-year period ending on the date of distribution.","page_number":219,"box":{"x":116,"y":335,"width":525,"height":12}},{"id":"db9e5b34-da1c-43c9-95dc-7f246c6da75c","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the","page_number":219,"box":{"x":116,"y":366,"width":760,"height":12}},{"id":"57aa3aca-1303-4316-8ef4-ac732bc96bab","block_type":"box","text":"tax filing and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":219,"box":{"x":116,"y":382,"width":752,"height":12}},{"id":"c7c5a945-3a37-41e0-a534-56114c3945f0","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":219,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"b9f07d83-e67a-42fb-a272-8bf85948133b","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":219,"box":{"x":116,"y":428,"width":598,"height":12}},{"id":"b2ae1f85-b22c-4f86-99c2-a431569f4dc7","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other","page_number":219,"box":{"x":116,"y":459,"width":745,"height":12}},{"id":"4afead9f-df05-4b2d-9b17-dca0f45695b7","block_type":"box","text":"income items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other","page_number":219,"box":{"x":117,"y":475,"width":763,"height":12}},{"id":"9ecadc53-e985-412a-8815-7f75ec04e0be","block_type":"box","text":"foreign entities. To avoid withholding, foreign financial institutions and investment funds will generally","page_number":219,"box":{"x":116,"y":490,"width":753,"height":12}},{"id":"ebe8bbf5-c74e-4a4c-981a-20a3410e076d","block_type":"box","text":"either need to (a) collect and report to the IRS detailed information identifying their U.S. accounts and","page_number":219,"box":{"x":116,"y":506,"width":758,"height":12}},{"id":"aa760824-e3f5-4f4f-89f7-b45a8b09140a","block_type":"box","text":"U.S. account holders, comply with due diligence procedures for identifying U.S. accounts and withhold","page_number":219,"box":{"x":117,"y":521,"width":763,"height":12}},{"id":"7314b983-2d0a-4fab-9935-25a54b8a4535","block_type":"box","text":"tax on certain payments made to noncomplying foreign entities and account holders or (b) if an","page_number":219,"box":{"x":116,"y":537,"width":709,"height":12}},{"id":"04c0d2f8-bc11-49f8-9cb6-15437267c1ea","block_type":"box","text":"intergovernmental agreement is entered into and implementing legislation is adopted, comply with the","page_number":219,"box":{"x":117,"y":552,"width":758,"height":12}},{"id":"bb4dadd9-7e65-493b-9a7b-1f04672b27c8","block_type":"box","text":"agreement and legislation. Other foreign entities will generally either need to provide detailed","page_number":219,"box":{"x":116,"y":568,"width":695,"height":12}},{"id":"1275803b-af8a-47e4-83ce-28c249e1ac55","block_type":"box","text":"information identifying each substantial U.S. owner or certify there are no such owners.","page_number":219,"box":{"x":117,"y":583,"width":650,"height":12}},{"id":"93cd999a-1be3-419b-9cdc-f9758e0bf554","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on","page_number":219,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"c91b1876-3422-4884-8ea7-46b825e876cd","block_type":"box","text":"ordinary income dividends, capital gain dividends and redemption payments (“backup withholding”).","page_number":219,"box":{"x":116,"y":630,"width":744,"height":12}},{"id":"f157c304-e547-44c3-99b4-11a0fb70f578","block_type":"box","text":"Generally, shareholders subject to backup withholding will be non-corporate shareholders for whom no","page_number":219,"box":{"x":117,"y":645,"width":767,"height":12}},{"id":"520ee375-aa34-401a-9a72-60fdfcc019ba","block_type":"box","text":"certified taxpayer identification number is on file with the Fund or who, to the Fund’s knowledge, have","page_number":219,"box":{"x":116,"y":661,"width":752,"height":12}},{"id":"1c7099ba-7b94-4bbe-a64a-f40d6fbebdc4","block_type":"box","text":"furnished an incorrect number. When establishing an account, an investor must certify under penalty of","page_number":219,"box":{"x":116,"y":676,"width":766,"height":12}},{"id":"50fa997e-b53e-410c-b1c5-60984a8d674c","block_type":"box","text":"perjury that such number is correct and that such investor is not otherwise subject to backup","page_number":219,"box":{"x":117,"y":692,"width":684,"height":12}},{"id":"b70d6f08-fa82-4384-a40d-6d0a5ac40960","block_type":"box","text":"withholding. Backup withholding is not an additional tax. Any amount withheld generally may be","page_number":219,"box":{"x":116,"y":707,"width":708,"height":12}},{"id":"1249da66-7c8b-443c-808a-65ba637ee4e6","block_type":"box","text":"allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that","page_number":219,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"90617d1e-e4ab-421f-bf82-be5c901e3051","block_type":"box","text":"the required information is timely forwarded to the IRS.","page_number":219,"box":{"x":116,"y":738,"width":405,"height":12}},{"id":"79612f3d-256e-41fd-b6c0-9280e69bfb19","block_type":"box","text":"If a shareholder recognizes a loss with respect to a Fund’s shares of at least $2 million in any single","page_number":219,"box":{"x":117,"y":768,"width":739,"height":13}},{"id":"e05fb3ca-a4fc-4519-be58-5c8e12abf5f1","block_type":"box","text":"taxable year or $4 million in any combination of taxable years for an individual shareholder or","page_number":219,"box":{"x":116,"y":784,"width":691,"height":13}},{"id":"e92fbacd-610c-4f39-9bee-44aaf95ecdb7","block_type":"box","text":"$10 million in any single taxable year or $20 million in any combination of taxable years for a corporate","page_number":219,"box":{"x":116,"y":799,"width":762,"height":13}},{"id":"783c61f3-9fbc-4818-aca4-c13da6360a06","block_type":"box","text":"shareholder in any single taxable year, the shareholder must file a disclosure statement on IRS Form","page_number":219,"box":{"x":116,"y":816,"width":749,"height":12}},{"id":"161893d4-617b-4035-9efa-c859d69a51a8","block_type":"box","text":"8886 with the IRS. Direct shareholders of portfolio securities are in many cases exempted. That a loss","page_number":219,"box":{"x":116,"y":831,"width":763,"height":12}},{"id":"d349e438-ffd0-481c-a6cb-3948216c6fd0","block_type":"box","text":"is reportable under these regulations does not affect the legal determination of whether the taxpayer’s","page_number":219,"box":{"x":117,"y":847,"width":760,"height":12}},{"id":"a06ccc22-5eb9-4165-9306-114902d9eb5b","block_type":"box","text":"treatment of the loss is proper. Shareholders should consult their tax advisors to determine the","page_number":219,"box":{"x":116,"y":862,"width":707,"height":12}},{"id":"89930546-ea5b-4189-9497-cc7f8825d566","block_type":"box","text":"applicability of these regulations in light of their individual circumstances.","page_number":219,"box":{"x":116,"y":878,"width":544,"height":12}},{"id":"5e73b8e5-96ff-4f03-8d9b-4ffdf43373e0","block_type":"box","text":"II-169","page_number":219,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"356b6bb9-7cb3-48ad-8b92-b00710606c08","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":219,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"7dde3bad-4fdc-43e8-b3fd-e99077f26e00","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits,","page_number":220,"box":{"x":117,"y":87,"width":740,"height":12}},{"id":"c961d5da-d8b6-49c5-a3ed-ac12e52423ab","block_type":"box","text":"taxable mortgage pools or other investments may cause the Fund to report some or all of its","page_number":220,"box":{"x":116,"y":102,"width":689,"height":13}},{"id":"977c536b-ec54-4cf9-ab1d-c8a13fb954ee","block_type":"box","text":"distributions as “excess inclusion income.” To Fund shareholders, such excess inclusion income may:","page_number":220,"box":{"x":116,"y":118,"width":760,"height":12}},{"id":"b1e7b0e7-f019-4fda-a537-74161028c9aa","block_type":"box","text":"(i) constitute taxable income, as unrelated business taxable income (“UBTI”) for those shareholders","page_number":220,"box":{"x":117,"y":134,"width":742,"height":12}},{"id":"afff80bd-dee7-43e2-aeef-a805c1b1a782","block_type":"box","text":"who would otherwise be tax-exempt such as individual retirement accounts, 401(k) accounts, Keogh","page_number":220,"box":{"x":116,"y":149,"width":749,"height":12}},{"id":"3ff8bd94-3838-4195-a2ce-ead11304627b","block_type":"box","text":"plans, pension plans and certain charitable entities; (ii) not be offset by otherwise allowable deductions","page_number":220,"box":{"x":117,"y":165,"width":766,"height":12}},{"id":"4644a91d-9b6c-4c75-987c-ca17ff9f52ef","block_type":"box","text":"for tax purposes; (iii) not be eligible for reduced U.S. withholding for non-U.S. shareholders even from","page_number":220,"box":{"x":116,"y":180,"width":758,"height":12}},{"id":"23ac8d62-0cf1-4826-9926-05e534ca508a","block_type":"box","text":"tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified organizations,”","page_number":220,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"c406e05b-b273-402c-a4d5-a6e069e3bd72","block_type":"box","text":"as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":220,"box":{"x":116,"y":211,"width":740,"height":12}},{"id":"6f0f3ce4-6a61-473b-9a2c-eeb926bd242f","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so.","page_number":220,"box":{"x":116,"y":227,"width":771,"height":12}},{"id":"b9a89491-6389-46f9-a509-b3f4a3c6f411","block_type":"box","text":"Because information about a REIT’s investments may be inadequate or inaccurate, or because a REIT","page_number":220,"box":{"x":117,"y":242,"width":767,"height":12}},{"id":"5387d8d7-4461-4fad-b719-b32b6c203af6","block_type":"box","text":"may change its investment program, the Fund may not be successful in avoiding the consequences","page_number":220,"box":{"x":117,"y":258,"width":744,"height":12}},{"id":"2a0a9402-e24c-41be-a49c-2eedaff55fca","block_type":"box","text":"described above. Avoidance of investments in REITs that generate excess inclusion income may","page_number":220,"box":{"x":116,"y":273,"width":725,"height":12}},{"id":"a4e78db1-4732-4cb7-a32e-bafd6fb1d4ff","block_type":"box","text":"require the Fund to forego otherwise attractive investment opportunities.","page_number":220,"box":{"x":117,"y":289,"width":540,"height":12}},{"id":"ae9a3928-f497-4247-9b29-a5fd48d95f00","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and","page_number":220,"box":{"x":117,"y":320,"width":756,"height":12}},{"id":"be29733d-28e3-4c4a-8ad2-82a163411894","block_type":"box","text":"other taxes imposed by foreign countries. Tax conventions between certain foreign countries and the","page_number":220,"box":{"x":116,"y":335,"width":753,"height":12}},{"id":"051eaf6a-f4aa-4a4c-8392-4b0ceaa7f5de","block_type":"box","text":"United States may reduce or eliminate such taxes. Shareholders of a Fund more than 50% by value of","page_number":220,"box":{"x":117,"y":351,"width":764,"height":12}},{"id":"56f8e220-b8c5-486d-a861-e5bb39eaa0db","block_type":"box","text":"the assets of which at the close of a taxable year are foreign securities may be able to claim U.S.","page_number":220,"box":{"x":116,"y":366,"width":725,"height":12}},{"id":"53b5bf5c-dd94-43d8-819d-ccc6a92a6404","block_type":"box","text":"foreign tax credits with respect to such foreign taxes paid by the Fund, subject to certain requirements","page_number":220,"box":{"x":116,"y":382,"width":762,"height":12}},{"id":"0a9fb5a0-f457-4944-a7ba-ffaddec343af","block_type":"box","text":"and limitations contained in the Code. For example, certain retirement accounts and certain tax-exempt","page_number":220,"box":{"x":116,"y":397,"width":772,"height":12}},{"id":"369c2947-4d44-475e-86b7-e5eb9bcb4974","block_type":"box","text":"organizations cannot claim foreign tax credits on investments in foreign securities held in a Fund. In","page_number":220,"box":{"x":116,"y":413,"width":743,"height":12}},{"id":"d6e39b6d-13d0-402b-8e9d-e8e9ce0642f5","block_type":"box","text":"addition, a foreign tax credit may be claimed with respect to withholding tax on payments with respect","page_number":220,"box":{"x":116,"y":428,"width":759,"height":12}},{"id":"3046a242-38e8-4127-adee-79a26dad4333","block_type":"box","text":"to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":220,"box":{"x":116,"y":444,"width":724,"height":12}},{"id":"9711823a-9bcb-4d66-be0d-df05ae155dc0","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it","page_number":220,"box":{"x":116,"y":459,"width":764,"height":12}},{"id":"501a5a00-7906-4e68-b20f-3022df587718","block_type":"box","text":"will not be able to “pass through” to shareholders the ability to claim a credit or a deduction for the","page_number":220,"box":{"x":116,"y":475,"width":731,"height":12}},{"id":"5e61f3bc-a154-49d7-ae9f-e6a7fe4f8a08","block_type":"box","text":"related foreign taxes paid by the Fund. Further, to the extent that a Fund engages in securities lending","page_number":220,"box":{"x":117,"y":490,"width":763,"height":12}},{"id":"bfd34ba3-950c-43d9-b212-70506d332c75","block_type":"box","text":"with respect to a security paying income subject to foreign taxes, it may not be able to pass through to","page_number":220,"box":{"x":116,"y":506,"width":763,"height":12}},{"id":"f579c54a-aefd-4af9-8365-eacd9c272d2b","block_type":"box","text":"its shareholders the ability to take a foreign tax credit for those taxes. If a Fund satisfies the applicable","page_number":220,"box":{"x":117,"y":521,"width":762,"height":12}},{"id":"d7d2ebc1-372f-459c-93b8-ccd959cb95f8","block_type":"box","text":"requirements, such Fund will be eligible to file an election with the IRS pursuant to which shareholders","page_number":220,"box":{"x":117,"y":537,"width":763,"height":12}},{"id":"c52ca8f2-664a-45ad-af98-632d8c3cb692","block_type":"box","text":"of the Fund will be required to include their proportionate shares of such foreign taxes in their U.S.","page_number":220,"box":{"x":116,"y":552,"width":733,"height":12}},{"id":"66da3d18-87b9-4d0a-8ef9-64f504c9f933","block_type":"box","text":"income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":220,"box":{"x":117,"y":568,"width":718,"height":12}},{"id":"4404c86b-295b-4f80-b0bd-9f8ca31f5717","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as","page_number":220,"box":{"x":116,"y":583,"width":738,"height":12}},{"id":"f3f90225-23b3-40c1-8d10-e76e68e6a0b0","block_type":"box","text":"foreign tax credits against their U.S. income taxes. No deductions for foreign taxes, however, may be","page_number":220,"box":{"x":116,"y":599,"width":755,"height":12}},{"id":"52193e07-5e22-4acf-bf50-b3689630d272","block_type":"box","text":"claimed by noncorporate shareholders who do not itemize deductions. A shareholder that is a","page_number":220,"box":{"x":116,"y":614,"width":699,"height":12}},{"id":"0a8d6d41-5cd8-4baa-9de8-784814eb070d","block_type":"box","text":"nonresident alien individual or a foreign corporation may be subject to U.S. withholding tax on the","page_number":220,"box":{"x":117,"y":630,"width":726,"height":12}},{"id":"96d7bcae-7552-42e6-9bc8-a076b52eeb88","block_type":"box","text":"income resulting from a Fund’s election described in this paragraph but may not be able to claim a","page_number":220,"box":{"x":117,"y":645,"width":733,"height":12}},{"id":"c1cb96e9-8b43-45aa-a7f7-835adbf3bed3","block_type":"box","text":"credit or deduction against such U.S. tax for the foreign taxes treated as having been paid by such","page_number":220,"box":{"x":116,"y":661,"width":730,"height":12}},{"id":"a5718c8b-84fe-4710-a8d4-49a4636df07d","block_type":"box","text":"shareholder. A Fund will report annually to its shareholders the amount per share of such foreign taxes","page_number":220,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"1aab98db-5194-4767-8894-9c56975c4f2a","block_type":"box","text":"and other information needed to claim the foreign tax credit.","page_number":220,"box":{"x":116,"y":692,"width":443,"height":12}},{"id":"eedfc0d2-b511-4066-9e1e-4c60398d8cab","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may,","page_number":220,"box":{"x":117,"y":723,"width":739,"height":12}},{"id":"db9e74e6-3e41-4aaa-bbb4-21563bcf7bb6","block_type":"box","text":"among other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or","page_number":220,"box":{"x":116,"y":738,"width":722,"height":12}},{"id":"deb63b0c-0bd9-4f4f-b93b-de92990c6100","block_type":"box","text":"otherwise limit the allowance of certain losses or deductions, and (c) accelerate the recognition of","page_number":220,"box":{"x":116,"y":754,"width":724,"height":12}},{"id":"a77ef2d4-6396-46a5-8673-0037db71680b","block_type":"box","text":"income without a corresponding receipt of cash (with which to make the necessary distributions to","page_number":220,"box":{"x":117,"y":769,"width":725,"height":12}},{"id":"0cec601e-9c1e-400b-8c1f-8af0312c5286","block_type":"box","text":"satisfy distribution requirements applicable to regulated investment companies). Operation of these","page_number":220,"box":{"x":116,"y":785,"width":736,"height":12}},{"id":"98340b3c-4387-44bc-b0d8-3f8871bba09b","block_type":"box","text":"rules could, therefore, affect the character, amount and timing of distributions to shareholders. Special","page_number":220,"box":{"x":117,"y":800,"width":756,"height":12}},{"id":"b88576ae-afba-417d-bc0e-cd78f109cd6a","block_type":"box","text":"tax rules also may require a Fund to mark-to-market certain types of positions in its portfolio (","page_number":220,"box":{"x":116,"y":816,"width":691,"height":12}},{"id":"db09e4ab-0540-4c19-9cb1-3ce310878c06","block_type":"box","text":"i.e.","page_number":220,"box":{"x":808,"y":816,"width":20,"height":9}},{"id":"99a6ca34-1b23-4059-9342-ac1045fa7f3d","block_type":"box","text":", treat","page_number":220,"box":{"x":831,"y":816,"width":42,"height":11}},{"id":"f394f2f3-6bda-43fc-af8e-02c421e93148","block_type":"box","text":"them as sold on the last day of the taxable year), and may result in the recognition of income without a","page_number":220,"box":{"x":116,"y":831,"width":765,"height":12}},{"id":"ac38781b-d747-4665-9b3e-380076dcd4fb","block_type":"box","text":"corresponding receipt of cash. Funds engaging in transactions affected by these provisions intend to","page_number":220,"box":{"x":116,"y":847,"width":751,"height":12}},{"id":"78f166f9-a274-44f9-89f4-e0e3be519fcc","block_type":"box","text":"monitor their transactions, make appropriate tax elections and make appropriate entries in their books","page_number":220,"box":{"x":117,"y":862,"width":760,"height":12}},{"id":"30c821ed-4c81-4ced-b243-de23f968a2d2","block_type":"box","text":"II-170","page_number":220,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"21a06af0-59de-4840-b165-71c8c198db92","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":220,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"57193cfb-65b1-4091-a85c-7dacad0b6161","block_type":"box","text":"and records to lessen the effect of these tax rules and avoid any possible disqualification from the","page_number":221,"box":{"x":116,"y":87,"width":730,"height":12}},{"id":"8f1963d5-26c3-48bb-b757-78842a3349c9","block_type":"box","text":"special treatment afforded regulated investment companies under the Code.","page_number":221,"box":{"x":116,"y":102,"width":571,"height":13}},{"id":"77f3b9b9-a57b-497e-ba24-df5169bd21d6","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated","page_number":221,"box":{"x":117,"y":130,"width":687,"height":13}},{"id":"dc2a0fa4-587d-458b-932c-0684af5e3534","block_type":"box","text":"instruments, and any of the Fund’s transactions in foreign currencies and hedging activities, are likely","page_number":221,"box":{"x":117,"y":146,"width":756,"height":12}},{"id":"553ae7e4-bd63-44aa-94b8-fb81e2be3fdb","block_type":"box","text":"to produce a difference between its book income and the sum of its taxable income and net tax-exempt","page_number":221,"box":{"x":116,"y":161,"width":771,"height":12}},{"id":"8cf7e26d-bfa1-49a7-a73a-4d7609f63812","block_type":"box","text":"income (if any). If such a difference arises, and the Fund’s book income is less than the sum of its","page_number":221,"box":{"x":117,"y":177,"width":730,"height":12}},{"id":"03a27a81-871b-49ce-a80a-5b3e7c49abcd","block_type":"box","text":"taxable income and net tax-exempt income, the Fund could be required to make distributions","page_number":221,"box":{"x":116,"y":193,"width":695,"height":11}},{"id":"d13a1c14-8747-4807-a9cf-36a8b24eeda8","block_type":"box","text":"exceeding book income to qualify as a RIC that is accorded special tax treatment and to avoid an","page_number":221,"box":{"x":116,"y":208,"width":727,"height":12}},{"id":"c80d3149-95fe-4da7-ba38-04e415d184ae","block_type":"box","text":"entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":221,"box":{"x":116,"y":223,"width":754,"height":13}},{"id":"8aea11bb-f789-4f4d-88c7-22fc50bc4cab","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax","page_number":221,"box":{"x":117,"y":239,"width":721,"height":12}},{"id":"8eb1b6fd-f320-4f32-b828-c6bacdbf3d64","block_type":"box","text":"exempt income, the distribution (if any) of such excess generally will be treated as (i) a dividend to the","page_number":221,"box":{"x":116,"y":254,"width":761,"height":13}},{"id":"00569c5d-b5b7-43b1-8c2e-5b9fb6cf8ef6","block_type":"box","text":"extent of the Fund’s remaining earnings and profits (including earnings and profits arising from tax","page_number":221,"box":{"x":116,"y":270,"width":733,"height":12}},{"id":"bca9e5b9-32e3-464c-8dfa-9af050bf8812","block_type":"box","text":"exempt income), (ii) thereafter, as a return of capital to the extent of the recipient’s basis in its shares,","page_number":221,"box":{"x":116,"y":285,"width":759,"height":13}},{"id":"bb2450a7-d5ed-4d75-b11d-28f61da1fbe2","block_type":"box","text":"and (iii) thereafter as gain from the sale or exchange of a capital asset.","page_number":221,"box":{"x":116,"y":301,"width":530,"height":12}},{"id":"d0b3d4c2-f7fe-4ff0-8c80-3dca22d9ec43","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s","page_number":221,"box":{"x":117,"y":329,"width":361,"height":12}},{"id":"39ace0bd-9791-4da7-bfa9-88b9988787d9","block_type":"box","text":"realized losses on sales of shares of underlying funds","page_number":221,"box":{"x":479,"y":329,"width":403,"height":12}},{"id":"750d8a23-b52d-4fd5-afc4-2eb4293ca254","block_type":"box","text":"may be indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains","page_number":221,"box":{"x":117,"y":344,"width":749,"height":12}},{"id":"c5e9e3d6-19df-44e9-8114-fe9438f6021e","block_type":"box","text":"by underlying funds will be recognized as ordinary income by the Fund and would not be offset by the","page_number":221,"box":{"x":117,"y":360,"width":757,"height":12}},{"id":"4701bece-c529-4a85-811e-84f2bc4e3b91","block_type":"box","text":"Fund’s capital loss carryforwards, if any. Capital loss carryforwards of underlying funds, if any, would","page_number":221,"box":{"x":117,"y":375,"width":751,"height":12}},{"id":"9544f466-58e7-4225-81d8-cc9e5794e148","block_type":"box","text":"not offset net capital gains of the Fund. Each of these effects is caused by the Fund’s expected","page_number":221,"box":{"x":117,"y":391,"width":710,"height":12}},{"id":"1129532e-ffd4-46c6-ac9f-f662dfaa26d3","block_type":"box","text":"investment in the underlying funds and may result in distributions to Fund shareholders being of higher","page_number":221,"box":{"x":117,"y":406,"width":766,"height":12}},{"id":"9603c03e-13d3-4a95-ab21-2b16ef08c768","block_type":"box","text":"magnitudes and less likely to qualify for lower capital gain tax rates than if the Fund were to invest","page_number":221,"box":{"x":117,"y":422,"width":730,"height":12}},{"id":"549abdab-7be8-4ca3-8b0d-a09641c3619d","block_type":"box","text":"otherwise.","page_number":221,"box":{"x":116,"y":438,"width":81,"height":9}},{"id":"3b7ab0f7-da1d-4372-8865-4adc16ecd5b4","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":221,"box":{"x":116,"y":465,"width":765,"height":12}},{"id":"111d47a2-f01a-46e3-8150-8286dc583da9","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of","page_number":221,"box":{"x":116,"y":481,"width":758,"height":12}},{"id":"20e9f820-c859-408f-94da-6d158c8e901c","block_type":"box","text":"its net income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the","page_number":221,"box":{"x":117,"y":496,"width":752,"height":12}},{"id":"a63168b2-34cc-4b69-80c8-71860a4e52fa","block_type":"box","text":"Fund will be required to report all of the Subsidiary’s net income as ordinary income regardless of","page_number":221,"box":{"x":117,"y":512,"width":726,"height":12}},{"id":"177e9f43-36aa-4eb8-9c99-889ae9a5a733","block_type":"box","text":"whether that income would be treated differently (for example, as capital gain) at the Subsidiary level","page_number":221,"box":{"x":116,"y":527,"width":753,"height":12}},{"id":"7b9b53ae-6bdc-488c-8297-3e92234189bb","block_type":"box","text":"and regardless of whether that income is distributed to the Fund. (Previously taxed income will not,","page_number":221,"box":{"x":116,"y":543,"width":738,"height":12}},{"id":"d39ad250-973f-45b1-8354-f8f15bdfdcb0","block_type":"box","text":"however, be taxable again when distributed.) If a net loss is realized by the Subsidiary in any taxable","page_number":221,"box":{"x":117,"y":558,"width":751,"height":12}},{"id":"0999c093-1687-4017-953a-971278ea1485","block_type":"box","text":"year, the loss will generally not be available to offset the Fund’s other income. It is not expected that","page_number":221,"box":{"x":116,"y":574,"width":747,"height":12}},{"id":"37d283f4-b978-41e2-bdde-ccc8b4dc17e6","block_type":"box","text":"the Subsidiary will be subject to an entity-level federal tax.","page_number":221,"box":{"x":116,"y":589,"width":436,"height":12}},{"id":"c325f9fd-7e90-4856-bf47-11711abb53ff","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under","page_number":221,"box":{"x":117,"y":617,"width":750,"height":12}},{"id":"d390b462-55ef-431a-88b7-ee0ec84afe34","block_type":"box","text":"foreign law, the Fund will generally be treated as owning shares in a passive foreign investment","page_number":221,"box":{"x":116,"y":633,"width":714,"height":12}},{"id":"4ed032ca-5995-4c7d-bcfc-6668c9e875ce","block_type":"box","text":"company (“PFIC”) for U.S. federal income tax purposes. A Fund may be subject to U.S. federal income","page_number":221,"box":{"x":116,"y":648,"width":769,"height":12}},{"id":"c9223df3-ec85-41f0-a2ec-f82191b8c30c","block_type":"box","text":"tax, and interest charges (at the rate applicable to tax underpayments) on tax liability treated as having","page_number":221,"box":{"x":116,"y":664,"width":761,"height":12}},{"id":"ee28fdab-d96c-44a1-bcf1-0361876c1c1b","block_type":"box","text":"been deferred with respect to certain distributions from such a company and on gain from the","page_number":221,"box":{"x":117,"y":679,"width":691,"height":12}},{"id":"6d42b367-a0a4-4ab0-b8fc-cf8165870bf8","block_type":"box","text":"disposition of the shares of such a company (collectively referred to as “excess distributions”), even if","page_number":221,"box":{"x":116,"y":695,"width":752,"height":12}},{"id":"900d77db-b74d-49c5-83bc-d1b067518636","block_type":"box","text":"such excess distributions are paid by the Fund as a dividend to its shareholders. However, a Fund may","page_number":221,"box":{"x":116,"y":710,"width":766,"height":12}},{"id":"b0a5c180-4584-4156-a4e0-9008fe8ff972","block_type":"box","text":"elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":221,"box":{"x":116,"y":726,"width":753,"height":12}},{"id":"f2c643d3-4192-43d0-bd2c-ea7b3133356c","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable","page_number":221,"box":{"x":117,"y":741,"width":734,"height":12}},{"id":"fb13169d-e318-4a1f-8289-b38fd6867a49","block_type":"box","text":"years, unless revoked with consent from the IRS. Under this election, a Fund would recognize as","page_number":221,"box":{"x":116,"y":757,"width":719,"height":12}},{"id":"e889cd4a-ea41-4662-8e5a-c4c5afbb1d6a","block_type":"box","text":"ordinary income any increase in the value of its shares as of the close of the taxable year over their","page_number":221,"box":{"x":116,"y":772,"width":737,"height":12}},{"id":"8cca610a-6492-4cf2-ad15-a9e6e9b08db4","block_type":"box","text":"adjusted tax basis and as ordinary loss any decrease in such value, but only to the extent of previously","page_number":221,"box":{"x":116,"y":788,"width":763,"height":12}},{"id":"ee9eef24-1498-48de-8b0b-ae2b802a6dd4","block_type":"box","text":"recognized “mark-to-market” gains. By making the mark-to-market election, a Fund could avoid","page_number":221,"box":{"x":117,"y":803,"width":704,"height":12}},{"id":"b9c7d25a-ce30-4159-a567-2771b3ec0491","block_type":"box","text":"imposition of the interest charge with respect to excess distributions from PFICs, but in any particular","page_number":221,"box":{"x":117,"y":819,"width":749,"height":12}},{"id":"87eabfa5-34aa-4696-998c-8d8d2c3601ef","block_type":"box","text":"year might be required to recognize income in excess of the distributions it received from PFICs.","page_number":221,"box":{"x":116,"y":834,"width":720,"height":12}},{"id":"e6db17f8-d9d1-4e7e-bc50-1148b2e8e27a","block_type":"box","text":"If a Fund were to invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the","page_number":221,"box":{"x":117,"y":862,"width":746,"height":12}},{"id":"dacca766-d67b-41fe-8155-4da4157e1dd5","block_type":"box","text":"Code, in lieu of the foregoing requirements, the Fund would be required to include in income each year","page_number":221,"box":{"x":117,"y":878,"width":768,"height":12}},{"id":"c47b652c-9451-4dc2-a928-fd8343ebc2c6","block_type":"box","text":"II-171","page_number":221,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"f8b812de-e517-4ba7-910a-936a4574e106","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":221,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"4284b768-1117-4b0e-a228-65630cdab6b9","block_type":"box","text":"a portion of the ordinary earnings and net capital gains of the qualified electing fund, even if not","page_number":222,"box":{"x":116,"y":87,"width":712,"height":12}},{"id":"1285655e-8221-4a44-aae1-8a37329cb701","block_type":"box","text":"distributed to the Fund, and such amounts would be subject to the 90% and excise tax distribution","page_number":222,"box":{"x":116,"y":102,"width":732,"height":13}},{"id":"b6aa0e43-8643-455c-a729-a3187903b817","block_type":"box","text":"requirements described above. In order to make this election, the Fund would be required to obtain","page_number":222,"box":{"x":117,"y":118,"width":739,"height":12}},{"id":"5549f14d-14b0-4ddd-82bf-d02e6fafd0bd","block_type":"box","text":"certain annual information from the PFICs in which it invests, which may be difficult or impossible to","page_number":222,"box":{"x":116,"y":134,"width":743,"height":12}},{"id":"a3fb09f1-0157-4199-a737-5bff687e3442","block_type":"box","text":"obtain.","page_number":222,"box":{"x":116,"y":149,"width":55,"height":10}},{"id":"b242c92f-1786-4a9e-a83c-d2e08738f06f","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer","page_number":222,"box":{"x":117,"y":179,"width":434,"height":12}},{"id":"9853495e-6f99-4ecf-a765-a5964f6bd222","block_type":"box","text":"all or a portion of its net capital loss (or if","page_number":222,"box":{"x":552,"y":179,"width":305,"height":12}},{"id":"40a8f5d3-816a-428c-bf54-1e88e94fa5e1","block_type":"box","text":"there is no net capital loss, any net long-term or short-term capital loss) realized after October and its","page_number":222,"box":{"x":116,"y":194,"width":755,"height":12}},{"id":"60018f66-b355-490a-8424-d5ca093bf619","block_type":"box","text":"late-year ordinary loss (defined as the sum of the excess of post-October foreign currency and PFIC","page_number":222,"box":{"x":117,"y":210,"width":748,"height":12}},{"id":"c4f6ccd8-67a3-4d28-aa18-baa47e8a705f","block_type":"box","text":"losses over post-October foreign currency and PFIC gains plus the excess of post-December ordinary","page_number":222,"box":{"x":117,"y":225,"width":761,"height":12}},{"id":"f5019d2a-3140-430b-bb39-e2ff02c0d57b","block_type":"box","text":"losses over post-December ordinary income) until the next taxable year in computing its investment","page_number":222,"box":{"x":117,"y":241,"width":743,"height":12}},{"id":"35c374db-db48-4433-9162-2a95f7d9cc62","block_type":"box","text":"company taxable income and net capital gain, which will defer the recognition of such realized losses.","page_number":222,"box":{"x":116,"y":256,"width":759,"height":12}},{"id":"777b0308-ddf7-46d8-ace9-89b484b83e8f","block_type":"box","text":"Such deferrals and other rules regarding gains and losses realized after October (or December) may","page_number":222,"box":{"x":116,"y":272,"width":752,"height":12}},{"id":"3ac96b9c-9d5d-4952-86cb-8003d2365030","block_type":"box","text":"affect the tax character of shareholder distributions.","page_number":222,"box":{"x":116,"y":287,"width":387,"height":10}},{"id":"19e3a7b8-980e-41f6-b910-f68f576cb51f","block_type":"box","text":"Municipal Funds","page_number":222,"box":{"x":116,"y":317,"width":127,"height":12}},{"id":"c5071850-8f97-47b9-a1d1-f954478dbd22","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in","page_number":222,"box":{"x":117,"y":339,"width":650,"height":12}},{"id":"4a3c7b61-ef88-4636-9b90-76f1e91ae19f","block_type":"box","text":"Section 852(b)(5) of the Code. Under such section if, at the close of each quarter of a Fund’s taxable","page_number":222,"box":{"x":116,"y":355,"width":753,"height":12}},{"id":"8bda0783-554b-4e17-81c8-c4c81f6b2958","block_type":"box","text":"year, at least 50% of the value of the Fund’s total assets consists of obligations exempt from U.S.","page_number":222,"box":{"x":116,"y":370,"width":728,"height":12}},{"id":"9ee4c4dc-2cb1-4e24-be08-b2e89b70052b","block_type":"box","text":"federal income tax (“tax-exempt obligations”) under Section 103(a) of the Code (relating generally to","page_number":222,"box":{"x":116,"y":386,"width":748,"height":12}},{"id":"ce9037b1-b632-46cd-b120-09ba6133f400","block_type":"box","text":"obligations of a state or local governmental unit), the Fund shall be qualified to pay exempt-interest","page_number":222,"box":{"x":116,"y":401,"width":739,"height":12}},{"id":"2c3e3fc6-beca-4932-b4d3-3d9d07bff61e","block_type":"box","text":"dividends to holders of all outstanding classes of its shares (together the “shareholders”). Exempt","page_number":222,"box":{"x":116,"y":417,"width":728,"height":12}},{"id":"d214a61f-c288-44bb-aefe-932d9b2dcac4","block_type":"box","text":"interest dividends are dividends or any part thereof paid by a Fund that are attributable to interest on","page_number":222,"box":{"x":117,"y":432,"width":749,"height":12}},{"id":"d6f73941-5e95-46d1-a9ce-c308d86828db","block_type":"box","text":"tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":222,"box":{"x":116,"y":448,"width":740,"height":12}},{"id":"d37b98a3-7aa9-4d37-ad21-1a2795940fdd","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference","page_number":222,"box":{"x":117,"y":463,"width":727,"height":12}},{"id":"05fdb1fc-db2f-4445-91f0-d2b5af4ca69a","block_type":"box","text":"items discussed below) among the Fund’s shareholders according to a method (that it believes is","page_number":222,"box":{"x":117,"y":479,"width":725,"height":12}},{"id":"23baa35c-3200-4cef-91d3-7ecd01c24b70","block_type":"box","text":"consistent with the Commission rule permitting the issuance and sale of multiple classes of shares)","page_number":222,"box":{"x":116,"y":494,"width":741,"height":12}},{"id":"0d671ca3-d219-433b-8965-5faa906c397d","block_type":"box","text":"that is based upon the gross income that is allocable to each class of shareholders during the taxable","page_number":222,"box":{"x":116,"y":510,"width":758,"height":12}},{"id":"c92f606d-96fb-4eea-86cd-d3052872997f","block_type":"box","text":"year, or such other method as the IRS may prescribe.","page_number":222,"box":{"x":116,"y":525,"width":404,"height":12}},{"id":"411eb2c6-c40c-4901-a2aa-e1a1eb8b3be9","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal","page_number":222,"box":{"x":117,"y":555,"width":714,"height":12}},{"id":"590a1dee-7aec-41a2-a833-19a2d34f39a5","block_type":"box","text":"income tax purposes. Exempt-interest dividends are included, however, in determining the portion, if","page_number":222,"box":{"x":117,"y":570,"width":748,"height":12}},{"id":"ae8ae888-eab9-42fc-8051-b07fa0eac0ca","block_type":"box","text":"any, of a person’s social security and railroad retirement benefits subject to U.S. federal income taxes.","page_number":222,"box":{"x":116,"y":586,"width":764,"height":12}},{"id":"f0e38152-d9ed-4cc2-a240-512f781cc804","block_type":"box","text":"Interest on indebtedness incurred or continued to purchase or carry shares of a regulated investment","page_number":222,"box":{"x":117,"y":601,"width":754,"height":13}},{"id":"87beb5f6-957f-45fd-b990-91692dee18a6","block_type":"box","text":"company paying exempt-interest dividends, such as the Fund, will not be deductible by the investor for","page_number":222,"box":{"x":116,"y":617,"width":766,"height":12}},{"id":"fc9d2b63-5901-4171-bd3f-a527ca13d878","block_type":"box","text":"U.S. federal income tax purposes to the extent attributable to exempt-interest dividends. Shareholders","page_number":222,"box":{"x":117,"y":632,"width":762,"height":12}},{"id":"341a17dc-1260-4dd7-a820-06f8787104bb","block_type":"box","text":"are advised to consult their tax advisors with respect to whether exempt-interest dividends retain the","page_number":222,"box":{"x":116,"y":648,"width":749,"height":12}},{"id":"2811d0e4-c6fa-4a55-9898-911c27192474","block_type":"box","text":"exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial user” or","page_number":222,"box":{"x":116,"y":663,"width":717,"height":13}},{"id":"19c47001-2093-4033-8288-2cf732bd741c","block_type":"box","text":"“related person” under Code Section 147(a) with respect to property financed with the proceeds of an","page_number":222,"box":{"x":116,"y":679,"width":751,"height":12}},{"id":"bb57eed7-da7a-40c2-bad5-1036d44b7444","block_type":"box","text":"issue of PABs, if any, held by a Fund.","page_number":222,"box":{"x":117,"y":694,"width":277,"height":13}},{"id":"a7511b16-bb7d-4267-a785-3f96e8c94bc8","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned","page_number":222,"box":{"x":116,"y":724,"width":745,"height":12}},{"id":"a0133171-6e03-4f3e-b3a1-029fed2c45c1","block_type":"box","text":"out by the Fund will not be considered exempt interest, and distributions by the Fund of such substitute","page_number":222,"box":{"x":116,"y":740,"width":764,"height":12}},{"id":"d261991c-2646-495a-9042-0ff3ec9cf061","block_type":"box","text":"payments will not constitute exempt-interest dividends.","page_number":222,"box":{"x":117,"y":755,"width":404,"height":12}},{"id":"a6362495-8b55-4511-a424-273138c1c93b","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a","page_number":222,"box":{"x":117,"y":785,"width":722,"height":12}},{"id":"b1a477c7-03f6-4e88-b3be-522d88db50f6","block_type":"box","text":"holder’s shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":222,"box":{"x":117,"y":800,"width":733,"height":12}},{"id":"42d79e84-2c75-4623-9ee0-63f1787d9cf5","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Any loss upon the sale or exchange of","page_number":222,"box":{"x":116,"y":816,"width":753,"height":12}},{"id":"b1d6cd5e-ca0d-4666-be7d-2e1368e51392","block_type":"box","text":"Fund shares held for six months or less will be disallowed to the extent of any exempt-interest","page_number":222,"box":{"x":117,"y":831,"width":700,"height":12}},{"id":"fbac1aaf-ce78-4c47-8242-2611c6a6db28","block_type":"box","text":"dividends received by the shareholder. In addition, any such loss that is not disallowed under the rule","page_number":222,"box":{"x":116,"y":847,"width":756,"height":12}},{"id":"0b5572e0-3d7f-4312-bf3b-fb63ce09c9d9","block_type":"box","text":"stated above will be treated as long-term capital loss to the extent of any capital gain dividends","page_number":222,"box":{"x":116,"y":862,"width":709,"height":12}},{"id":"c92120df-6bc4-480c-9920-1e29deecfa8c","block_type":"box","text":"received by the shareholder.","page_number":222,"box":{"x":117,"y":878,"width":216,"height":12}},{"id":"99e57dc9-8503-4600-bb47-311ed71cdbea","block_type":"box","text":"II-172","page_number":222,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"ca8c27c2-cf21-4138-8597-fb698081da5d","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":222,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"dfc4af9c-727b-414a-91a3-8c2446d74696","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a","page_number":223,"box":{"x":116,"y":87,"width":764,"height":12}},{"id":"3ce7f96f-54ac-4f36-98ff-2ac602451c8a","block_type":"box","text":"market discount will be treated as ordinary income rather than capital gain. This rule may increase the","page_number":223,"box":{"x":117,"y":103,"width":760,"height":12}},{"id":"c8189f2e-1b3f-4177-8137-e0179261c114","block_type":"box","text":"amount of ordinary income dividends received by shareholders.","page_number":223,"box":{"x":116,"y":118,"width":477,"height":12}},{"id":"0efae134-f182-44d3-8d2a-202118eacf01","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a","page_number":223,"box":{"x":116,"y":149,"width":763,"height":12}},{"id":"410131f7-2eba-4052-a04d-8822bc8f4796","block_type":"box","text":"bond acquired in the secondary market at a price below redemption value or adjusted issue price if","page_number":223,"box":{"x":117,"y":165,"width":737,"height":12}},{"id":"18228a52-1a96-445d-aa6a-e05b1c245a41","block_type":"box","text":"issued with original issue discount. Absent an election by the Fund to include the market discount in","page_number":223,"box":{"x":117,"y":180,"width":744,"height":12}},{"id":"bb7b5dcd-a1b5-4b8c-b01b-2b89b4e7a74a","block_type":"box","text":"income as it accrues, gain on the Fund’s disposition of such an obligation will be treated as ordinary","page_number":223,"box":{"x":117,"y":196,"width":744,"height":12}},{"id":"b7581a3f-7f20-4a1b-8768-439e8210c4c3","block_type":"box","text":"income rather than capital gain to the extent of the accrued market discount.","page_number":223,"box":{"x":117,"y":211,"width":571,"height":12}},{"id":"32fd54df-a367-4d9e-9861-abd24aaff889","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative","page_number":223,"box":{"x":116,"y":242,"width":763,"height":12}},{"id":"8ab948ae-547d-4e03-9297-e3aa4a170be2","block_type":"box","text":"minimum tax. The alternative minimum tax applies to interest received on certain “PABs” issued after","page_number":223,"box":{"x":117,"y":258,"width":753,"height":11}},{"id":"06e309aa-a571-4ea1-b416-6d66b2bbfd59","block_type":"box","text":"August 7, 1986. PABs are bonds that, although tax-exempt, are used for purposes other than those","page_number":223,"box":{"x":116,"y":273,"width":743,"height":12}},{"id":"e65943fd-7cbb-4fac-ba5a-b9d59c7ce938","block_type":"box","text":"generally performed by governmental units and that benefit non-governmental entities (","page_number":223,"box":{"x":116,"y":289,"width":648,"height":12}},{"id":"7d255a33-b74a-403c-9ab6-837e72069b43","block_type":"box","text":"e.g.","page_number":223,"box":{"x":765,"y":291,"width":26,"height":10}},{"id":"ba19d2dd-bd1f-45c4-b897-534d5e05241d","block_type":"box","text":", bonds","page_number":223,"box":{"x":794,"y":289,"width":58,"height":11}},{"id":"312a997f-29ae-4a47-92f7-2d681f096d14","block_type":"box","text":"used for industrial development or housing purposes). Income received on such bonds is classified as","page_number":223,"box":{"x":117,"y":304,"width":760,"height":12}},{"id":"3a79575c-d91f-42b8-a5fe-d19654bcd501","block_type":"box","text":"an item of “tax preference,” which could subject certain investors in such bonds, including shareholders","page_number":223,"box":{"x":116,"y":320,"width":771,"height":12}},{"id":"627946a0-60ab-4893-bcb6-7493a47d7ff7","block_type":"box","text":"of a Fund, to a federal alternative minimum tax. A Fund will purchase such “PABs” and will report to","page_number":223,"box":{"x":116,"y":335,"width":744,"height":12}},{"id":"d25c68c6-e9d1-4670-8ec7-d5d36343be5d","block_type":"box","text":"shareholders after the close of the calendar year the portion of the Fund’s dividends declared during","page_number":223,"box":{"x":116,"y":351,"width":748,"height":12}},{"id":"b4a856a3-152a-4bff-befe-582167b8e1f2","block_type":"box","text":"the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":223,"box":{"x":116,"y":366,"width":651,"height":12}},{"id":"ff8ea998-47f9-4f89-afe1-25737ec563f9","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules","page_number":223,"box":{"x":117,"y":397,"width":768,"height":12}},{"id":"4f699d88-fa01-4217-8a76-21ad483dddda","block_type":"box","text":"governing the taxation of interest rate swaps are not entirely clear and may require a Fund to treat","page_number":223,"box":{"x":116,"y":413,"width":733,"height":12}},{"id":"b1645214-506d-4bc3-9efb-09baef389ce0","block_type":"box","text":"payments received under such arrangements as ordinary income and to amortize payments made","page_number":223,"box":{"x":117,"y":428,"width":733,"height":12}},{"id":"582e31ce-65b5-4a93-896d-8d85d9768e28","block_type":"box","text":"under certain circumstances. Because payments received by a Fund in connection with swap","page_number":223,"box":{"x":117,"y":444,"width":697,"height":12}},{"id":"f7158317-7880-4c86-b22a-46ee81dd9bae","block_type":"box","text":"transactions will be taxable rather than tax-exempt and because swap payments made by a Fund will","page_number":223,"box":{"x":116,"y":459,"width":757,"height":12}},{"id":"ba45b6aa-f6b0-43b0-b6e8-dceacc86d9de","block_type":"box","text":"offset both taxable and tax-exempt gross income proportionately, they may result in increased taxable","page_number":223,"box":{"x":116,"y":475,"width":762,"height":12}},{"id":"f0793b2e-6f57-4c45-adc7-ad1c0ffb39e5","block_type":"box","text":"distributions to shareholders.","page_number":223,"box":{"x":116,"y":490,"width":220,"height":10}},{"id":"356ae127-0327-4b3d-b9e7-5c4ccc3a48e4","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in","page_number":223,"box":{"x":117,"y":521,"width":721,"height":12}},{"id":"cb7ce198-8447-4d48-8886-d40ce17fb608","block_type":"box","text":"BlackRock California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund,","page_number":223,"box":{"x":117,"y":537,"width":731,"height":12}},{"id":"0f38a208-a72d-45db-b0ff-e3ab6b2af766","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund and BlackRock Pennsylvania Municipal Bond","page_number":223,"box":{"x":117,"y":552,"width":725,"height":12}},{"id":"8e8454ef-8b0d-4686-a22a-732b7926fa8f","block_type":"box","text":"Fund, as well as information on economic conditions within each applicable state.","page_number":223,"box":{"x":117,"y":568,"width":608,"height":12}},{"id":"689a767d-ac3b-4feb-bf85-3673dce897af","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master","page_number":223,"box":{"x":117,"y":599,"width":723,"height":12}},{"id":"56dd0693-b3c5-4c01-b4fa-11adf98ce6d3","block_type":"box","text":"Portfolio in which it has invested for purposes of satisfying various qualification requirements of the","page_number":223,"box":{"x":117,"y":614,"width":737,"height":12}},{"id":"55c1e53e-43f9-4a7c-99e9-3d898a884432","block_type":"box","text":"Code applicable to regulated investment companies. Each Master Portfolio is classified either as a","page_number":223,"box":{"x":117,"y":630,"width":734,"height":12}},{"id":"9c71d262-ce0a-42d2-b26d-48decd1886e7","block_type":"box","text":"partnership or a separate disregarded entity (depending on the particular Master Portfolio) for U.S.","page_number":223,"box":{"x":117,"y":645,"width":734,"height":12}},{"id":"0a509a89-33c9-4d39-bf69-efe874c35699","block_type":"box","text":"federal income tax purposes. If applicable tax provisions were to change the classification of a Master","page_number":223,"box":{"x":116,"y":661,"width":755,"height":12}},{"id":"81a57404-d868-47c3-9284-0b5999e27568","block_type":"box","text":"Portfolio, then the Board of Directors of a Feeder Fund would determine, in its discretion, the","page_number":223,"box":{"x":117,"y":676,"width":686,"height":11}},{"id":"704340e9-f1d0-4a4a-9174-d1843186918d","block_type":"box","text":"appropriate course of action for the Feeder Fund. One possible course of action would be to withdraw","page_number":223,"box":{"x":116,"y":692,"width":755,"height":12}},{"id":"94e7b3d1-9e84-4dd0-b513-174ef596b582","block_type":"box","text":"the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to","page_number":223,"box":{"x":116,"y":707,"width":717,"height":12}},{"id":"00f428fb-5a24-4d10-bcbe-786002806475","block_type":"box","text":"manage the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder","page_number":223,"box":{"x":117,"y":723,"width":758,"height":12}},{"id":"ef0d591c-58eb-4407-840d-261b68d42f31","block_type":"box","text":"Fund.","page_number":223,"box":{"x":117,"y":738,"width":40,"height":10}},{"id":"c723581c-43af-4608-91ad-d88463ee0707","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states","page_number":223,"box":{"x":116,"y":769,"width":764,"height":12}},{"id":"ee9f5a30-f979-4c16-a8c9-ebe6ecf58f5a","block_type":"box","text":"exempt from state income taxation dividends paid by regulated investment companies that are derived","page_number":223,"box":{"x":116,"y":785,"width":759,"height":12}},{"id":"31767eda-8f29-4df2-8d06-2bf94aa5c3ce","block_type":"box","text":"from interest on U.S. government obligations. State law varies as to whether dividend income","page_number":223,"box":{"x":116,"y":800,"width":693,"height":12}},{"id":"bb2f25b9-a9f8-4012-97dc-60ff67a8ba90","block_type":"box","text":"attributable to U.S. government obligations is exempt from state income tax.","page_number":223,"box":{"x":116,"y":816,"width":563,"height":12}},{"id":"0f28db35-306a-4f43-a5fe-3c6f4dad9593","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to","page_number":223,"box":{"x":116,"y":847,"width":747,"height":12}},{"id":"db044fd6-a5a9-49b2-80c6-068a26d02c8a","block_type":"box","text":"federal, foreign, state or local taxes with respect to their Fund. Foreign investors should consider","page_number":223,"box":{"x":116,"y":862,"width":721,"height":12}},{"id":"d9596871-02a4-4646-913e-3ff06e4180c9","block_type":"box","text":"applicable foreign taxes in their evaluation of an investment in a Fund.","page_number":223,"box":{"x":116,"y":878,"width":525,"height":12}},{"id":"b9274e53-37c7-45aa-b159-75131f52037a","block_type":"box","text":"II-173","page_number":223,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"fcbac77b-52bf-4936-b222-f5b22a26dda9","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":223,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"c9e52d94-c503-4b04-b2fe-7862ee93b075","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and","page_number":224,"box":{"x":116,"y":87,"width":760,"height":12}},{"id":"63034f3a-b0c8-44c4-bafe-ec171135e785","block_type":"box","text":"the regulations issued thereunder as in effect on the date of this SAI. Future legislative or","page_number":224,"box":{"x":116,"y":102,"width":667,"height":13}},{"id":"b84774da-3a25-4ace-9996-4fc9ed3fc013","block_type":"box","text":"administrative changes or court decisions may significantly change the conclusions expressed in this","page_number":224,"box":{"x":116,"y":118,"width":753,"height":12}},{"id":"54e79f71-c8a5-4109-98c0-6864ef16c297","block_type":"box","text":"discussion, and any such changes or decisions may have a retroactive effect.","page_number":224,"box":{"x":116,"y":134,"width":581,"height":12}},{"id":"a66c9998-75a8-4741-a508-e4ffd208d0fa","block_type":"box","text":"P","page_number":224,"box":{"x":424,"y":180,"width":9,"height":9}},{"id":"50f0d205-1ba7-4294-ad45-c8c6ac4f41b8","block_type":"box","text":"ERFORMANCE","page_number":224,"box":{"x":435,"y":182,"width":96,"height":8}},{"id":"8e4d4a33-eba6-4575-b5ea-f791a9265cc5","block_type":"box","text":"D","page_number":224,"box":{"x":531,"y":180,"width":17,"height":9}},{"id":"2eb21a75-9ff2-4ee7-872c-fb2e9dc5429a","block_type":"box","text":"ATA","page_number":224,"box":{"x":548,"y":182,"width":28,"height":7}},{"id":"34274e55-41d0-45d0-ba21-7c053f374e80","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":224,"box":{"x":117,"y":211,"width":767,"height":12}},{"id":"ad2ad2b5-eebb-4dce-b608-61ea9c49bb5f","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or","page_number":224,"box":{"x":116,"y":227,"width":723,"height":12}},{"id":"c91ff140-86dc-4920-b0b9-4d9ee57d4400","block_type":"box","text":"prospective shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s","page_number":224,"box":{"x":117,"y":242,"width":713,"height":12}},{"id":"a35634ba-6b26-48da-b998-c99411ae67bd","block_type":"box","text":"historical performance and is not intended to indicate future performance. Average annual total return","page_number":224,"box":{"x":117,"y":258,"width":757,"height":12}},{"id":"828f9430-03b1-42e9-8bab-dea3787c50b9","block_type":"box","text":"is determined separately for each class of shares in accordance with a formula specified by the","page_number":224,"box":{"x":117,"y":273,"width":710,"height":12}},{"id":"41d77b4b-7f80-4a91-93e4-170b49625b1c","block_type":"box","text":"Commission.","page_number":224,"box":{"x":117,"y":289,"width":101,"height":9}},{"id":"9b3eba58-d874-456d-8956-a85e638466de","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding","page_number":224,"box":{"x":116,"y":320,"width":767,"height":12}},{"id":"e8ccfe2b-1534-4d69-8df6-b9ae013c1b18","block_type":"box","text":"the average annual compounded rates of return (based on net investment income and any realized","page_number":224,"box":{"x":116,"y":335,"width":741,"height":12}},{"id":"08ced902-5f9e-4b61-939f-6e1c3b8a60c4","block_type":"box","text":"and unrealized capital gains or losses on portfolio investments over such periods) that would equate","page_number":224,"box":{"x":116,"y":351,"width":748,"height":12}},{"id":"c111f620-3b47-494e-be94-dc6d73986e22","block_type":"box","text":"the initial amount invested to the redeemable value of such investment at the end of each period.","page_number":224,"box":{"x":116,"y":366,"width":725,"height":12}},{"id":"3514d555-b959-4c85-b1c6-e1e635d25950","block_type":"box","text":"Average annual total return before taxes is computed assuming all dividends are reinvested and taking","page_number":224,"box":{"x":116,"y":382,"width":768,"height":12}},{"id":"cae31038-51a9-4bc4-ad9e-ab85a7e96c9e","block_type":"box","text":"into account all applicable recurring and nonrecurring expenses, including the maximum sales charge,","page_number":224,"box":{"x":117,"y":397,"width":762,"height":12}},{"id":"b3a70e9f-ce52-47d8-baa5-4ae22d99ec20","block_type":"box","text":"in the case of front-end load shares, and the CDSC that would be applicable to a complete redemption","page_number":224,"box":{"x":117,"y":413,"width":765,"height":12}},{"id":"151566c5-bbb6-4731-b39c-f0411d82695e","block_type":"box","text":"of the investment at the end of the specified period in the case of CDSC shares, but does not take into","page_number":224,"box":{"x":116,"y":428,"width":764,"height":12}},{"id":"d6b7eba0-db25-4b4e-b636-3f7b54b64092","block_type":"box","text":"account taxes payable on dividends or on redemption.","page_number":224,"box":{"x":116,"y":444,"width":408,"height":12}},{"id":"74976935-0b6e-4e53-a319-015dd814073c","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are","page_number":224,"box":{"x":116,"y":475,"width":715,"height":12}},{"id":"736082b9-1b63-4661-b45d-d21317a55d69","block_type":"box","text":"computed by finding the average annual compounded rates of return that would equate the initial","page_number":224,"box":{"x":116,"y":490,"width":724,"height":12}},{"id":"cab75221-29b4-45c9-92e2-ce1b1914caa6","block_type":"box","text":"amount invested to the ending value of such investment at the end of each period assuming payment","page_number":224,"box":{"x":116,"y":506,"width":757,"height":12}},{"id":"602033cc-bb0b-4bb1-afa2-971b3956bc53","block_type":"box","text":"of taxes on dividends received during such period. Average annual total return after taxes on dividends","page_number":224,"box":{"x":116,"y":521,"width":769,"height":12}},{"id":"3708153b-f79b-4dcc-868f-b6a7c9ab22d1","block_type":"box","text":"is computed assuming all dividends, less the taxes due on such dividends, are reinvested and taking","page_number":224,"box":{"x":117,"y":537,"width":751,"height":12}},{"id":"570adf85-dfa4-42ba-8fd8-73edbfc824a7","block_type":"box","text":"into account all applicable recurring and nonrecurring expenses, including the maximum sales charge,","page_number":224,"box":{"x":117,"y":552,"width":762,"height":12}},{"id":"a766e221-b57d-4006-88a6-66419a175541","block_type":"box","text":"in the case of front-end load shares and the CDSC that would be applicable to a complete redemption","page_number":224,"box":{"x":117,"y":568,"width":760,"height":12}},{"id":"fbd181af-f649-4d31-a0c6-e0f7d3f92c57","block_type":"box","text":"of the investment at the end of the specified period in the case of CDSC shares. The taxes due on","page_number":224,"box":{"x":116,"y":583,"width":733,"height":12}},{"id":"aff41543-17b2-4277-90d5-8880465ebfa0","block_type":"box","text":"dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal","page_number":224,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"a5168b68-3b9b-4dc3-9c2a-66091bbb1ace","block_type":"box","text":"individual income tax rates in effect on the reinvestment date for that dividend. The rates used","page_number":224,"box":{"x":117,"y":614,"width":702,"height":10}},{"id":"fc75df5a-3ebd-44bf-add3-7350ffba6fe2","block_type":"box","text":"correspond to the tax character (including eligibility for the maximum 20% tax rate applicable to","page_number":224,"box":{"x":116,"y":630,"width":711,"height":12}},{"id":"d7213ec6-dc65-47ee-adc4-993d3cc4a41a","block_type":"box","text":"qualified dividend income) of each dividend. The taxable amount and tax character of each dividend","page_number":224,"box":{"x":116,"y":645,"width":746,"height":12}},{"id":"35376be5-6a17-45e1-a1f1-665a4e9c997d","block_type":"box","text":"are specified by each Fund on the dividend declaration date, but may be adjusted to reflect subsequent","page_number":224,"box":{"x":116,"y":661,"width":767,"height":12}},{"id":"5baf3418-11cf-4d3e-b882-e08f8779f4ba","block_type":"box","text":"recharacterizations of distributions. The applicable tax rates may vary over the measurement period.","page_number":224,"box":{"x":117,"y":676,"width":743,"height":12}},{"id":"1beee49b-00e4-4e90-b70d-48bb5c7d9e1b","block_type":"box","text":"The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign credits, are","page_number":224,"box":{"x":116,"y":692,"width":766,"height":12}},{"id":"cddac595-f2da-46e8-af81-d063d7e931de","block_type":"box","text":"taken into account according to U.S. federal tax law. The ending value is determined assuming","page_number":224,"box":{"x":116,"y":707,"width":703,"height":12}},{"id":"7e7c925a-eb28-4a11-9a82-e3da6d3154ab","block_type":"box","text":"complete redemption at the end of the applicable periods with no tax consequences associated with","page_number":224,"box":{"x":116,"y":723,"width":740,"height":12}},{"id":"3754d256-745c-48fa-b83a-dbff0b21e394","block_type":"box","text":"such redemption.","page_number":224,"box":{"x":116,"y":738,"width":127,"height":12}},{"id":"cc08f538-8d19-4ba2-8ba3-b2afce076460","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the","page_number":224,"box":{"x":116,"y":769,"width":709,"height":12}},{"id":"26764e03-d7c4-4253-94ff-63a1b4cf9c72","block_type":"box","text":"specified periods are computed by finding the average annual compounded rates of return that would","page_number":224,"box":{"x":116,"y":785,"width":751,"height":12}},{"id":"c964db20-1c1c-47ac-9a76-6984d69d4f6b","block_type":"box","text":"equate the initial amount invested to the ending value of such investment at the end of each period","page_number":224,"box":{"x":116,"y":800,"width":732,"height":12}},{"id":"e0662941-45e5-4431-806d-f13f98e3ddb4","block_type":"box","text":"assuming payment of taxes on dividends received during such period as well as on complete","page_number":224,"box":{"x":116,"y":816,"width":690,"height":12}},{"id":"7109a5f6-0621-48e9-b351-efae0cb32a33","block_type":"box","text":"redemption. Average annual total return after taxes on distributions and redemption is computed","page_number":224,"box":{"x":117,"y":831,"width":718,"height":12}},{"id":"5eff119e-5945-4f30-9a58-26efe44d22d1","block_type":"box","text":"assuming all dividends, less the taxes due on such dividends, are reinvested and taking into account","page_number":224,"box":{"x":116,"y":847,"width":752,"height":12}},{"id":"7f6446e2-1346-480e-b53b-6de59a41a692","block_type":"box","text":"all applicable recurring and nonrecurring expenses, including the maximum sales charge in the case of","page_number":224,"box":{"x":116,"y":862,"width":768,"height":12}},{"id":"6c00050f-a7d1-41a7-ba55-811cb955e546","block_type":"box","text":"front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":224,"box":{"x":116,"y":878,"width":703,"height":12}},{"id":"601308c8-6208-4fd5-bbe2-34781a3ca39f","block_type":"box","text":"II-174","page_number":224,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"5eff3e1c-f844-4551-b95d-c9cd054d99be","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":224,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"80286795-f5b1-4a34-a75f-d981900e9d09","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes","page_number":225,"box":{"x":117,"y":87,"width":767,"height":12}},{"id":"81fce6dc-620c-4051-aca7-18447d234b9c","block_type":"box","text":"of shares, complete redemption and payment of taxes due on such redemption. The ending value is","page_number":225,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"9cf8a8ac-9931-4fdd-905d-b53f5d152bd6","block_type":"box","text":"determined assuming complete redemption at the end of the applicable periods, subtracting capital","page_number":225,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"85b06e0f-0856-497c-a8d3-779537d7ea96","block_type":"box","text":"gains taxes resulting from the redemption and adding the presumed tax benefit from capital losses","page_number":225,"box":{"x":116,"y":134,"width":735,"height":12}},{"id":"6908be5a-a6e0-46b2-81f4-bad78c186755","block_type":"box","text":"resulting from redemption. The taxes due on dividends and on the deemed redemption are calculated","page_number":225,"box":{"x":117,"y":149,"width":758,"height":12}},{"id":"c8f52fad-35f7-404b-8427-a2dbcbd970bd","block_type":"box","text":"by applying the highest applicable marginal U.S. federal individual income tax rates in effect on the","page_number":225,"box":{"x":117,"y":165,"width":737,"height":12}},{"id":"f7fbd51d-bebe-4b10-a055-b20256e68963","block_type":"box","text":"reinvestment and/or the redemption date. The rates used correspond to the tax character (including","page_number":225,"box":{"x":117,"y":180,"width":743,"height":12}},{"id":"c0b8bf32-64a4-4acf-ae88-fbe6e5c57c79","block_type":"box","text":"eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each component of","page_number":225,"box":{"x":116,"y":196,"width":762,"height":12}},{"id":"7911ac1a-d77e-4194-8e83-606c9c4dbd89","block_type":"box","text":"each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":225,"box":{"x":116,"y":211,"width":673,"height":12}},{"id":"42b3b933-3464-4b3c-b0e0-0e761dc00583","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such","page_number":225,"box":{"x":117,"y":227,"width":767,"height":11}},{"id":"0b38ec1f-07e4-4812-acbf-21d066d9046f","block_type":"box","text":"as foreign tax credits, are taken into account according to federal law.","page_number":225,"box":{"x":116,"y":242,"width":522,"height":12}},{"id":"e66e422e-23f9-4f74-b057-cc5ebde86738","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":225,"box":{"x":116,"y":273,"width":760,"height":12}},{"id":"281589ac-37c6-4fe7-989b-5488d1391ea5","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of","page_number":225,"box":{"x":117,"y":289,"width":766,"height":12}},{"id":"e9b8353c-fb45-4ad5-bcd8-4c2f7c7f9f8e","block_type":"box","text":"$1,000 or some other amount, for various periods other than those noted in Part I of each Fund’s SAI.","page_number":225,"box":{"x":116,"y":303,"width":761,"height":13}},{"id":"b60eaabb-6734-4393-94a4-2ba6eb915698","block_type":"box","text":"Such data will be computed as described above, except that (1) as required by the periods of the","page_number":225,"box":{"x":116,"y":320,"width":724,"height":12}},{"id":"5422e535-fca2-4ca7-9e5e-8da246ee178e","block_type":"box","text":"quotations, actual annual, annualized or aggregate data, rather than average annual data, may be","page_number":225,"box":{"x":116,"y":335,"width":733,"height":12}},{"id":"8da80d4c-7873-4992-9419-6046c2f4aab4","block_type":"box","text":"quoted and (2) the maximum applicable sales charges will not be included with respect to annual or","page_number":225,"box":{"x":116,"y":351,"width":743,"height":12}},{"id":"f3b56367-778f-45b5-8d08-740e82123ebf","block_type":"box","text":"annualized rates of return calculations. Aside from the impact on the performance data calculations of","page_number":225,"box":{"x":116,"y":366,"width":760,"height":12}},{"id":"eb99ef66-947a-43ee-8866-e7766390647f","block_type":"box","text":"including or excluding the maximum applicable sales charges, actual annual or annualized total return","page_number":225,"box":{"x":117,"y":382,"width":760,"height":12}},{"id":"74486e2a-5b79-4644-aa2d-874862804af4","block_type":"box","text":"data generally will be lower than average annual total return data since the average rates of return","page_number":225,"box":{"x":116,"y":397,"width":734,"height":12}},{"id":"d6c44a2d-4594-4444-8b48-10f90a73e902","block_type":"box","text":"reflect compounding of return; aggregate total return data generally will be higher than average annual","page_number":225,"box":{"x":117,"y":413,"width":764,"height":12}},{"id":"0d7dbb13-88b5-4905-81bc-71ef839013e9","block_type":"box","text":"total return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":225,"box":{"x":116,"y":428,"width":755,"height":12}},{"id":"7d88ae60-4017-417b-b157-d477db603ca8","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on","page_number":225,"box":{"x":116,"y":459,"width":748,"height":12}},{"id":"262507fd-6841-49dc-998e-4f83b7ef525e","block_type":"box","text":"the yield of each security earned during the period by (b) the average daily number of shares","page_number":225,"box":{"x":116,"y":475,"width":694,"height":12}},{"id":"e9e509ad-8f92-49f7-ae6e-ee8cdee12420","block_type":"box","text":"outstanding during the period that were entitled to receive dividends multiplied by the maximum","page_number":225,"box":{"x":116,"y":490,"width":712,"height":12}},{"id":"5ed4c3c9-d2c7-4895-8c04-5e523507987d","block_type":"box","text":"offering price per share on the last day of the period. Tax equivalent yield quotations will be computed","page_number":225,"box":{"x":116,"y":506,"width":760,"height":12}},{"id":"9d549b25-85d6-4f9e-9697-fc056b48fbb4","block_type":"box","text":"by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one minus a stated tax rate and","page_number":225,"box":{"x":117,"y":521,"width":723,"height":12}},{"id":"779f875a-1fbc-4535-9c23-4382231506c4","block_type":"box","text":"adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":225,"box":{"x":116,"y":537,"width":580,"height":12}},{"id":"3e2d0dc2-d0a7-4750-8a04-ac324189dcbb","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s","page_number":225,"box":{"x":116,"y":568,"width":728,"height":12}},{"id":"fcd26a34-9b35-4f89-b177-84dcd3fba500","block_type":"box","text":"portfolio, a Fund’s operating expenses and the amount of realized and unrealized net capital gains or","page_number":225,"box":{"x":117,"y":583,"width":754,"height":12}},{"id":"7065da2d-0b8a-4415-9b91-16ef11263596","block_type":"box","text":"losses during the period. The value of an investment in a Fund will fluctuate and an investor’s shares,","page_number":225,"box":{"x":117,"y":599,"width":756,"height":12}},{"id":"4673ed49-02f1-47c4-acbe-7c12b3b9f8ff","block_type":"box","text":"when redeemed, may be worth more or less than their original cost.","page_number":225,"box":{"x":116,"y":614,"width":507,"height":12}},{"id":"11c6af16-5693-42b4-b231-f4ed88d99070","block_type":"box","text":"In order to reflect the reduced sales charges in the case of front-end load shares or the waiver of the","page_number":225,"box":{"x":117,"y":645,"width":750,"height":12}},{"id":"8600234c-8bb1-446f-a101-1f84a97533eb","block_type":"box","text":"CDSC in the case of CDSC shares applicable to certain investors, as described under “Purchase of","page_number":225,"box":{"x":117,"y":661,"width":738,"height":12}},{"id":"a6bf2a91-79d3-45d2-860b-d6190b278059","block_type":"box","text":"Shares” and “Redemption of Shares,” respectively, the total return data quoted by a Fund in","page_number":225,"box":{"x":116,"y":676,"width":681,"height":12}},{"id":"01f49358-e649-47a2-89b9-954f1caf8cb7","block_type":"box","text":"advertisements directed to such investors may take into account the reduced, and not the maximum,","page_number":225,"box":{"x":116,"y":692,"width":746,"height":12}},{"id":"bb63aaaf-27aa-4524-bfb9-715e57854bc4","block_type":"box","text":"sales charge or may take into account the CDSC waiver and, therefore, may reflect greater total return","page_number":225,"box":{"x":116,"y":707,"width":761,"height":12}},{"id":"afc6dae1-a6e2-4ce8-9215-45f3fb53283c","block_type":"box","text":"since, due to the reduced sales charges or the waiver of sales charges, a lower amount of expenses is","page_number":225,"box":{"x":116,"y":723,"width":762,"height":12}},{"id":"ae633db1-47d4-456c-ae8b-480559ff9f48","block_type":"box","text":"deducted.","page_number":225,"box":{"x":116,"y":738,"width":72,"height":10}},{"id":"18d26cb5-4ca1-4a67-9bc5-8c4175edbf2a","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark","page_number":225,"box":{"x":116,"y":769,"width":731,"height":12}},{"id":"2bc8934b-646c-4f92-b18a-fdef99ee51ae","block_type":"box","text":"index indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average,","page_number":225,"box":{"x":117,"y":785,"width":758,"height":12}},{"id":"769824c2-15e0-4d90-bbd4-7250be90e403","block_type":"box","text":"or to other published indices, or to performance data published by Lipper Inc., Morningstar, Inc.","page_number":225,"box":{"x":116,"y":800,"width":706,"height":12}},{"id":"2a06d3a0-f28b-4c63-85d3-9434deeba539","block_type":"box","text":"(“Morningstar”),","page_number":225,"box":{"x":117,"y":816,"width":113,"height":12}},{"id":"b471edb7-3b37-41db-b2bb-041bf0fd9631","block_type":"box","text":"Money Magazine, U.S. News & World Report, BusinessWeek, Forbes Magazine,","page_number":225,"box":{"x":237,"y":816,"width":600,"height":12}},{"id":"0e6dd28c-c4a8-4615-b528-35967b403e7f","block_type":"box","text":"Fortune Magazine","page_number":225,"box":{"x":116,"y":831,"width":140,"height":12}},{"id":"23cb0e83-0ccc-475e-a9ae-866e4436920b","block_type":"box","text":"or other industry publications. When comparing its performance to a market index, a","page_number":225,"box":{"x":257,"y":831,"width":629,"height":12}},{"id":"5e7f6a67-a4d2-41a3-8ef5-0ef8d8e766b7","block_type":"box","text":"Fund may refer to various statistical measures derived from the historical performance of a Fund and","page_number":225,"box":{"x":117,"y":847,"width":753,"height":12}},{"id":"c8cfbc8d-4432-4853-ae18-d72263d5cfc8","block_type":"box","text":"the index, such as standard deviation and beta. As with other performance data, performance","page_number":225,"box":{"x":116,"y":862,"width":700,"height":12}},{"id":"7e1efd81-cc55-46a3-ae4e-177b351acb5e","block_type":"box","text":"comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":225,"box":{"x":116,"y":878,"width":717,"height":12}},{"id":"44fdf72b-5a04-409d-8a97-f80f29b7b88e","block_type":"box","text":"II-175","page_number":225,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"61475470-4720-4343-b4c4-ad9e5f560025","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":225,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"7d80deb3-f406-4fbe-80f1-9365b4d91f9f","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted","page_number":226,"box":{"x":117,"y":87,"width":701,"height":12}},{"id":"11b4c403-4db6-4642-afe1-00bbe04bfc14","block_type":"box","text":"performance ratings assigned by Morningstar in advertising or supplemental sales literature. From time","page_number":226,"box":{"x":117,"y":102,"width":769,"height":13}},{"id":"333bc37b-9742-4a47-a6a2-b279db1c2930","block_type":"box","text":"to time a Fund may quote in advertisements or other materials other applicable measures of Fund","page_number":226,"box":{"x":116,"y":118,"width":732,"height":12}},{"id":"2a0f4f61-a2a6-4891-ab35-8dc961a07898","block_type":"box","text":"performance and may also make reference to awards that may be given to the Manager. Certain","page_number":226,"box":{"x":117,"y":134,"width":721,"height":12}},{"id":"76796899-7309-4873-acfe-58b2d9498dea","block_type":"box","text":"Funds may also compare their performance to composite indices developed by Fund management.","page_number":226,"box":{"x":117,"y":149,"width":742,"height":12}},{"id":"0cfe1488-cd56-40f8-ae36-70c589d8a1bf","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to","page_number":226,"box":{"x":116,"y":180,"width":737,"height":12}},{"id":"4fc5fdbe-3d88-49c7-81ad-6007488555bf","block_type":"box","text":"achieve its investment objectives. This may include information about past, current or possible","page_number":226,"box":{"x":116,"y":196,"width":704,"height":12}},{"id":"b3205bf3-c29c-4e1b-ab64-60e60aa36eac","block_type":"box","text":"economic, market, political or other conditions, descriptive information or general principles of investing","page_number":226,"box":{"x":116,"y":211,"width":770,"height":12}},{"id":"49d37856-a2a0-4114-98f9-bcc89c1a7118","block_type":"box","text":"such as asset allocation, diversification and risk tolerance, discussion of a Fund’s portfolio composition,","page_number":226,"box":{"x":116,"y":227,"width":771,"height":11}},{"id":"a6cc186b-4870-4af9-949b-7d4414ae6822","block_type":"box","text":"investment philosophy, strategy or investment techniques, comparisons of the Fund’s performance or","page_number":226,"box":{"x":117,"y":242,"width":757,"height":12}},{"id":"d63d68f6-e218-45cd-be4e-d1aca639553a","block_type":"box","text":"portfolio composition to that of other funds or types of investments, indices relevant to the comparison","page_number":226,"box":{"x":117,"y":258,"width":760,"height":12}},{"id":"45b0f0ab-a64b-49ab-a462-35ada3794459","block_type":"box","text":"being made, or to a hypothetical or model portfolio. A Fund may also quote various measures of","page_number":226,"box":{"x":117,"y":273,"width":716,"height":12}},{"id":"13517b4c-1b2e-485f-b959-719898695c08","block_type":"box","text":"volatility and benchmark correlation in advertising and other materials, and may compare these","page_number":226,"box":{"x":116,"y":289,"width":711,"height":12}},{"id":"21d0e4b4-4a9f-4f0d-a5a9-a192a97c1e27","block_type":"box","text":"measures to those of other funds or types of investments.","page_number":226,"box":{"x":117,"y":304,"width":432,"height":12}},{"id":"baef2224-8d75-46f1-bcec-455f12a33def","block_type":"box","text":"P","page_number":226,"box":{"x":342,"y":351,"width":10,"height":9}},{"id":"21938fa9-e67c-4551-a3a8-9e006351fc6b","block_type":"box","text":"ROXY","page_number":226,"box":{"x":353,"y":353,"width":38,"height":7}},{"id":"ab9d968b-5495-4d09-a3a9-594a75a06973","block_type":"box","text":"Y V","page_number":226,"box":{"x":391,"y":351,"width":16,"height":9}},{"id":"2af38332-81ca-4b36-979a-7da3d208a861","block_type":"box","text":"OTING","page_number":226,"box":{"x":407,"y":353,"width":42,"height":7}},{"id":"e66f92e6-da52-40d5-9b19-ea634de527e8","block_type":"box","text":"P","page_number":226,"box":{"x":450,"y":351,"width":15,"height":9}},{"id":"6e47dd61-3744-4fce-a11d-cee48302013c","block_type":"box","text":"OLICIES","page_number":226,"box":{"x":467,"y":353,"width":53,"height":7}},{"id":"bd0dbdee-c132-44c3-b039-46db9e2c55ac","block_type":"box","text":"AND","page_number":226,"box":{"x":525,"y":353,"width":29,"height":7}},{"id":"19970095-71af-4527-b992-64f3023370d7","block_type":"box","text":"P","page_number":226,"box":{"x":555,"y":351,"width":15,"height":9}},{"id":"0d6ed5cc-fb75-4afd-a2ff-b29f4f19bd91","block_type":"box","text":"ROCEDURES","page_number":226,"box":{"x":572,"y":353,"width":85,"height":7}},{"id":"4f4ea486-58fb-4d60-9f7b-e5e9ea519762","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the","page_number":226,"box":{"x":116,"y":382,"width":768,"height":12}},{"id":"7661da09-790d-4745-b50b-78ede20140f5","block_type":"box","text":"Manager pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the","page_number":226,"box":{"x":117,"y":397,"width":749,"height":12}},{"id":"70ee6600-0c60-4cda-a882-6baf63cb84c5","block_type":"box","text":"“Active Fund Proxy Voting Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy","page_number":226,"box":{"x":116,"y":413,"width":761,"height":12}},{"id":"732ce43b-ded8-4a17-afea-a1f5d9efcfee","block_type":"box","text":"Voting Policy, with respect to certain other Funds, as applicable. Please refer to Part I of this SAI,","page_number":226,"box":{"x":116,"y":428,"width":727,"height":12}},{"id":"8f301087-761b-46c8-ac6d-9bd46741e37f","block_type":"box","text":"which discloses the policy applicable to each Fund.","page_number":226,"box":{"x":116,"y":444,"width":385,"height":12}},{"id":"56704a1d-e923-4115-a5ed-0a7957111420","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the","page_number":226,"box":{"x":116,"y":475,"width":756,"height":12}},{"id":"86594e80-3f21-4fa5-b1c0-4c7a32d70e2e","block_type":"box","text":"BlackRock Active Investment Stewardship — Global Engagement and Voting Guidelines (the “BAIS","page_number":226,"box":{"x":117,"y":490,"width":744,"height":12}},{"id":"cf3b8b7c-aa1f-4873-aabe-8cd53eb36aee","block_type":"box","text":"Guidelines”). Certain of such Funds, as listed within the Active Fund Proxy Voting Policy and as","page_number":226,"box":{"x":117,"y":506,"width":713,"height":12}},{"id":"e4b99c9d-eddf-4d8b-afcc-0c7c35597892","block_type":"box","text":"disclosed in Part I of this SAI, follow supplemental guidelines within the BAIS Guidelines that are","page_number":226,"box":{"x":116,"y":521,"width":721,"height":12}},{"id":"49e8805e-db49-4d1e-8782-1f0e598cea93","block_type":"box","text":"applicable to certain climate and decarbonization issues (the “BAIS Climate and Decarbonization","page_number":226,"box":{"x":116,"y":537,"width":724,"height":12}},{"id":"15fe6eb1-9729-4399-96e6-46c9b5254330","block_type":"box","text":"Stewardship Guidelines”).","page_number":226,"box":{"x":116,"y":552,"width":197,"height":12}},{"id":"530d745b-45e4-4303-88b9-6f56d9701ebb","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has","page_number":226,"box":{"x":116,"y":583,"width":709,"height":12}},{"id":"004f5778-13b5-4ad0-ab7e-f5f88ffdaaf1","block_type":"box","text":"adopted the BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the","page_number":226,"box":{"x":116,"y":599,"width":743,"height":12}},{"id":"aa5499bd-f536-4af6-aa4c-2a0b1ba9a652","block_type":"box","text":"Global Principles for Benchmark Policies, regional voting guidelines, and engagement priorities, which","page_number":226,"box":{"x":117,"y":614,"width":762,"height":12}},{"id":"4bdefd99-8919-408c-a3b9-89d0afdba7dd","block_type":"box","text":"are each available upon request. In addition, certain of such Funds, as listed within the Index Equity","page_number":226,"box":{"x":116,"y":630,"width":745,"height":12}},{"id":"bd6bfd01-b5cc-4dd0-902c-400502e84aaf","block_type":"box","text":"Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental guidelines that are","page_number":226,"box":{"x":117,"y":645,"width":765,"height":12}},{"id":"b714f4c7-f1db-4039-a73d-a7c5e5dd8529","block_type":"box","text":"applicable to certain climate and decarbonization issues (the “BIS Climate and Decarbonization","page_number":226,"box":{"x":116,"y":661,"width":707,"height":12}},{"id":"a3ecd30c-a433-468d-8b5e-12fb3cdd53e7","block_type":"box","text":"Stewardship Guidelines”).","page_number":226,"box":{"x":116,"y":676,"width":191,"height":12}},{"id":"cb7fe864-4000-4fc2-8739-1473944db10a","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy","page_number":226,"box":{"x":117,"y":707,"width":765,"height":12}},{"id":"f7f171af-38d8-4390-8645-af51aa28329a","block_type":"box","text":"when voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy","page_number":226,"box":{"x":116,"y":723,"width":759,"height":12}},{"id":"b0687e79-22d8-4cc9-b1f3-1716567aa179","block_type":"box","text":"when voting proxies on investments the underlying fund holds. Therefore, the Fund may use the Active","page_number":226,"box":{"x":116,"y":738,"width":764,"height":12}},{"id":"b1d0f395-11b7-4f5b-a221-6a20883ae05f","block_type":"box","text":"Fund Proxy Voting Policy while an underlying fund may use the Index Equity Fund Proxy Voting Policy,","page_number":226,"box":{"x":117,"y":754,"width":762,"height":12}},{"id":"d78862b7-61ef-48ee-adbb-3df582324c4d","block_type":"box","text":"and the opposite is also true.","page_number":226,"box":{"x":116,"y":769,"width":213,"height":12}},{"id":"7026c053-4f4e-4e48-8f26-b995a13038f0","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS","page_number":226,"box":{"x":117,"y":800,"width":711,"height":12}},{"id":"341edacc-2c34-4315-b7b0-c6af5ce48edd","block_type":"box","text":"Guidelines, the Global Principles for Benchmark Policies and the BIS Climate and Decarbonization","page_number":226,"box":{"x":117,"y":816,"width":731,"height":12}},{"id":"224e5941-a072-4d34-abc4-6eaeb37a63c6","block_type":"box","text":"Stewardship Guidelines are attached as Appendix B to this SAI. Only those guidelines that are","page_number":226,"box":{"x":116,"y":831,"width":706,"height":12}},{"id":"fb899b17-5158-4dc7-a82c-2528d8f2bc66","block_type":"box","text":"applicable to a particular Fund pursuant to the Active Fund Proxy Voting Policy or the Index Equity","page_number":226,"box":{"x":116,"y":847,"width":735,"height":12}},{"id":"9aec67cc-82d9-4c6b-8bec-aec4d6fb6a66","block_type":"box","text":"Fund Proxy Voting Policy are considered to form a part of the Fund’s SAI.","page_number":226,"box":{"x":117,"y":862,"width":551,"height":12}},{"id":"53059e14-7ec5-4cb3-b26f-5c7a60b67318","block_type":"box","text":"II-176","page_number":226,"box":{"x":479,"y":909,"width":41,"height":9}},{"id":"7afac31e-830a-4114-9736-16941f542b72","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":226,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"54a74a7c-a67b-424e-9b68-9f14b5867575","block_type":"box","text":"Information on how each Fund voted proxies relating to portfolio securities during the most","page_number":227,"box":{"x":117,"y":87,"width":645,"height":12}},{"id":"3960bc8e-4a1e-41e6-9005-72ac67eee38b","block_type":"box","text":"recent 12-month period ended June 30 is available without","page_number":227,"box":{"x":117,"y":103,"width":416,"height":11}},{"id":"4e1d5f5a-8f7f-4a40-bf63-e2baf7c1f8c2","block_type":"box","text":"t charge, (i) at www.blackrock.com/proxyrecords","page_number":227,"box":{"x":532,"y":102,"width":344,"height":13}},{"id":"20aae27a-e3c9-4a4d-8823-d311c09e1e0e","block_type":"box","text":"and (ii) on the Commission’s website at http://www.sec.gov.","page_number":227,"box":{"x":116,"y":118,"width":428,"height":12}},{"id":"ba62fcbc-97af-4b1f-b860-1a5a9ea94a1f","block_type":"box","text":"G","page_number":227,"box":{"x":415,"y":165,"width":11,"height":9}},{"id":"b9f1b18f-bb03-4d0e-a6f2-9631a951f11b","block_type":"box","text":"ENERAL","page_number":227,"box":{"x":428,"y":167,"width":55,"height":7}},{"id":"7738869e-1e64-4b9b-9cad-38ef5af702e5","block_type":"box","text":"I","page_number":227,"box":{"x":483,"y":165,"width":8,"height":9}},{"id":"bbd8976c-cd11-4163-b586-1c8d64eb4fa0","block_type":"box","text":"NFORMATION","page_number":227,"box":{"x":494,"y":167,"width":90,"height":7}},{"id":"69360f1c-1653-48e5-aaf9-92c078794714","block_type":"box","text":"Description of Shares","page_number":227,"box":{"x":117,"y":196,"width":177,"height":11}},{"id":"66088b96-d99c-4dd1-b32e-83bbe2a8044e","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for","page_number":227,"box":{"x":116,"y":219,"width":706,"height":9}},{"id":"4696f050-8203-47ed-ad4a-b10150ba14dc","block_type":"box","text":"fractional shares held in the election of Directors and generally on other matters submitted to the vote","page_number":227,"box":{"x":116,"y":234,"width":758,"height":12}},{"id":"d707c18c-52f1-48c3-b8ba-72eb9ccfa594","block_type":"box","text":"of shareholders of the Fund. Shareholders of a class that bears distribution and/or service expenses","page_number":227,"box":{"x":116,"y":250,"width":748,"height":12}},{"id":"2a912aa8-1e3d-4e93-92ac-c52172059a7b","block_type":"box","text":"have exclusive voting rights with respect to matters relating to such distribution and service","page_number":227,"box":{"x":117,"y":265,"width":679,"height":12}},{"id":"28bd5388-59a2-4ce4-b0dc-07e814a2e2ec","block_type":"box","text":"expenditures. Voting rights are not cumulative, so that the holders of more than 50% of the shares","page_number":227,"box":{"x":116,"y":281,"width":734,"height":12}},{"id":"92f16e3e-394e-481e-b3bc-67a9a28ae1bc","block_type":"box","text":"voting in the election of Directors can, if they choose to do so, elect all the Directors of a Fund, in which","page_number":227,"box":{"x":116,"y":296,"width":771,"height":12}},{"id":"4d67a47f-e849-4887-91c7-d3bed5b4b77b","block_type":"box","text":"event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":227,"box":{"x":116,"y":312,"width":693,"height":12}},{"id":"b7259433-7b25-4848-8c08-f10bd889eddd","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment","page_number":227,"box":{"x":117,"y":343,"width":698,"height":12}},{"id":"5a081690-3eac-450a-a80d-f30030a7cd4b","block_type":"box","text":"Company Act does not require shareholders to act upon any of the following matters: (i) election of","page_number":227,"box":{"x":117,"y":358,"width":736,"height":12}},{"id":"384a2268-948a-4c8c-93b1-3c114ecd70d6","block_type":"box","text":"Directors; (ii) approval of a management agreement; (iii) approval of a distribution agreement; and","page_number":227,"box":{"x":117,"y":374,"width":732,"height":12}},{"id":"fd037ab6-dbaa-41a5-a410-e109046fb8db","block_type":"box","text":"(iv) ratification of selection of independent accountants. Shares issued are fully paid and","page_number":227,"box":{"x":117,"y":389,"width":658,"height":12}},{"id":"d176bc08-00f2-41c6-af5d-2bed81d041d8","block_type":"box","text":"non-assessable and have no preemptive rights. Redemption and conversion rights are discussed","page_number":227,"box":{"x":117,"y":405,"width":726,"height":12}},{"id":"90cd2985-cfb8-4a57-b3da-63bb80c7d4e8","block_type":"box","text":"elsewhere herein and in each Fund’s Prospectus. Each share of each class of Common Stock is","page_number":227,"box":{"x":116,"y":420,"width":721,"height":12}},{"id":"7327fdf2-fd5a-4e9e-8b87-9a6a318f121d","block_type":"box","text":"entitled to participate equally in dividends and distributions declared by a Fund and in the net assets of","page_number":227,"box":{"x":116,"y":436,"width":766,"height":12}},{"id":"313fa87f-1336-4209-9174-d1919a1f1152","block_type":"box","text":"the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":227,"box":{"x":116,"y":451,"width":608,"height":12}},{"id":"42bc063b-342a-4b4b-9fc4-4904a24cf350","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting","page_number":227,"box":{"x":117,"y":482,"width":762,"height":12}},{"id":"9a6ca17b-8d86-4706-983b-fe8ec15ace2d","block_type":"box","text":"of shareholders be held upon the written request of a minimum percentage of the outstanding shares","page_number":227,"box":{"x":116,"y":498,"width":754,"height":12}},{"id":"fbab6b9a-616b-4338-8d9d-b8bfa1ccace7","block_type":"box","text":"of the Fund entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":227,"box":{"x":116,"y":513,"width":663,"height":12}},{"id":"e002970e-136f-441d-a73f-f0d4dda1c044","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":227,"box":{"x":117,"y":544,"width":738,"height":12}},{"id":"8785e759-a4ea-42a4-91d7-4264e352cabe","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for","page_number":227,"box":{"x":116,"y":560,"width":772,"height":12}},{"id":"f3b80972-742e-46b8-8fc4-33476309ac6f","block_type":"box","text":"its obligations. However, the Declaration of Trust establishing a trust, a copy of which for each","page_number":227,"box":{"x":117,"y":575,"width":701,"height":12}},{"id":"4211cbd8-57c6-47b7-9463-380df2a12bd0","block_type":"box","text":"applicable Fund, together with all amendments thereto (the “Declaration of Trust”), is on file in the","page_number":227,"box":{"x":116,"y":591,"width":729,"height":12}},{"id":"8ac9dd5b-68c8-40c1-a253-e2d950edd870","block_type":"box","text":"office of the Secretary of the Commonwealth of Massachusetts, contains an express disclaimer of","page_number":227,"box":{"x":116,"y":606,"width":731,"height":12}},{"id":"feac9ba2-c570-4b31-ae7b-3aea5db51c1b","block_type":"box","text":"shareholder liability for acts or obligations of the trust and provides for indemnification and","page_number":227,"box":{"x":116,"y":622,"width":672,"height":12}},{"id":"78a67836-0be5-4806-95b2-7fbffeee1db3","block_type":"box","text":"reimbursement of expenses out of the trust property for any shareholder held personally liable for the","page_number":227,"box":{"x":117,"y":637,"width":754,"height":12}},{"id":"1d3b5aec-4deb-48a7-b700-5a1543aad3ff","block_type":"box","text":"obligations of the trust. The Declaration of Trust also provides that a trust may maintain appropriate","page_number":227,"box":{"x":116,"y":653,"width":742,"height":12}},{"id":"3728f72e-ae1e-4e31-a9ad-ae5d60392393","block_type":"box","text":"insurance (for example, fidelity bond and errors and omissions insurance) for the protection of the trust,","page_number":227,"box":{"x":117,"y":668,"width":765,"height":12}},{"id":"81453324-f9d3-4ea6-8078-9c8b58c0bff7","block_type":"box","text":"its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":227,"box":{"x":117,"y":684,"width":740,"height":12}},{"id":"cfeb2b0d-93d4-4e06-92ae-b8eb4ec62d59","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to","page_number":227,"box":{"x":116,"y":699,"width":740,"height":13}},{"id":"a394ab53-fc8d-40a1-8651-3c90746bdc19","block_type":"box","text":"circumstances in which both inadequate insurance existed and the trust itself was unable to meet its","page_number":227,"box":{"x":116,"y":715,"width":743,"height":12}},{"id":"9ba582ef-1f94-463e-9462-8ab4ae53f828","block_type":"box","text":"obligations.","page_number":227,"box":{"x":116,"y":731,"width":83,"height":12}},{"id":"91dcd86a-769c-43bb-94d1-887e6bfa32ed","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":227,"box":{"x":117,"y":761,"width":428,"height":13}},{"id":"3c444385-672e-4438-afe0-db3974976813","block_type":"box","text":"Additional Information","page_number":227,"box":{"x":116,"y":792,"width":178,"height":10}},{"id":"896e0b9f-9841-4aee-b348-33002cdcf30c","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock”","page_number":227,"box":{"x":117,"y":816,"width":742,"height":12}},{"id":"fcc74d15-8c02-4727-90c1-9a49e0ad0c10","block_type":"box","text":"name and has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the","page_number":227,"box":{"x":117,"y":831,"width":746,"height":12}},{"id":"4630dd91-4d13-452f-ba04-cb287551249a","block_type":"box","text":"Fund ceases to retain BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as","page_number":227,"box":{"x":117,"y":847,"width":709,"height":12}},{"id":"46e74159-6744-4c91-846c-ddd8f0adbc4d","block_type":"box","text":"investment adviser and (ii) to grant the use of such name to any other company.","page_number":227,"box":{"x":117,"y":862,"width":599,"height":12}},{"id":"a854c5f7-deb0-4daf-8748-4c1c516edcdb","block_type":"box","text":"II-177","page_number":227,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"4beeb1ce-8d50-409b-a8ae-89cf10bac1dc","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":227,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"2e0c2f4d-d88f-42d7-af60-7b3feb605166","block_type":"box","text":"Appendix A","page_number":228,"box":{"x":453,"y":87,"width":98,"height":12}},{"id":"62856f33-a712-407b-91a9-5497190917f8","block_type":"box","text":"Description of Bond Ratings","page_number":228,"box":{"x":387,"y":118,"width":231,"height":12}},{"id":"89d825b1-e644-4809-bf11-08b577d8ee3c","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating","page_number":228,"box":{"x":116,"y":149,"width":722,"height":12}},{"id":"6d6ed90f-7ae3-4732-9a8b-42d88f7cb514","block_type":"box","text":"agency designated as a nationally recognized statistical rating organization (“NRSRO”) by the SEC.","page_number":228,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"69d048bd-4715-49ec-a0ad-9710273e0df4","block_type":"box","text":"While NRSROs may from time to time revise such ratings, they undertake no obligation to do so, and","page_number":228,"box":{"x":116,"y":180,"width":755,"height":12}},{"id":"1563c9bb-78aa-4f4c-be71-2f4b8490cb69","block_type":"box","text":"the ratings given to securities at issuance do not necessarily represent ratings which would be given to","page_number":228,"box":{"x":116,"y":196,"width":767,"height":12}},{"id":"a88e5cdd-f037-4ca1-bd72-4cec2069c4f7","block_type":"box","text":"these securities on a particular subsequent date.","page_number":228,"box":{"x":116,"y":211,"width":366,"height":12}},{"id":"6df709c6-768f-40ed-9025-dcca35b3b4f7","block_type":"box","text":"NRSROs may rate specific investments (e.g., bonds), issuers (e.g., corporations, governments and","page_number":228,"box":{"x":117,"y":242,"width":740,"height":12}},{"id":"bbd41c13-5d75-4b5c-a352-306fdb9ec3b9","block_type":"box","text":"financial institutions) and/or programs (e.g., commercial paper programs). However, certain types of","page_number":228,"box":{"x":116,"y":258,"width":747,"height":12}},{"id":"0097c9bf-46c6-4fc7-986f-eb50a08caab8","block_type":"box","text":"investments may not be rated by NRSROs, such as certain government/sovereign obligations, US","page_number":228,"box":{"x":117,"y":273,"width":732,"height":12}},{"id":"4f1d0623-5e8b-489a-9dc0-ee58acd70a3b","block_type":"box","text":"agency securities, commercial paper, time deposits at financial institutions, and derivative instruments","page_number":228,"box":{"x":116,"y":289,"width":761,"height":12}},{"id":"8f659e2d-72f9-4884-a036-7ab5ab558289","block_type":"box","text":"such as credit default swaps. For these types of investments, as well as US Treasury securities (some","page_number":228,"box":{"x":116,"y":304,"width":764,"height":12}},{"id":"b4ca9a6b-3238-4b20-94d8-09ca33856dd0","block_type":"box","text":"of which are not rated), where a NRSRO has not rated the specific investment but has rated the","page_number":228,"box":{"x":116,"y":320,"width":716,"height":12}},{"id":"314704bd-b055-4270-995c-0070b4888e40","block_type":"box","text":"investment’s issuer, program, financial institution or underlying reference asset, BlackRock Advisors,","page_number":228,"box":{"x":117,"y":335,"width":751,"height":12}},{"id":"f8b2d209-0a74-4987-b5cb-5de87f07aa33","block_type":"box","text":"LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider the investment","page_number":228,"box":{"x":117,"y":351,"width":766,"height":12}},{"id":"e63a2d59-0f9d-4890-a724-dd9400343b26","block_type":"box","text":"to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":228,"box":{"x":116,"y":366,"width":736,"height":12}},{"id":"1ef5f1b4-3b0d-4566-bd28-2938e71fbeee","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings","page_number":228,"box":{"x":116,"y":382,"width":754,"height":12}},{"id":"96ebd5d8-38c1-4ecf-88a9-fd7e773e60f2","block_type":"box","text":"for the same security (e.g., “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider","page_number":228,"box":{"x":116,"y":397,"width":770,"height":12}},{"id":"e5cf9f13-12bc-49bf-bbcc-ba6bcded1ddf","block_type":"box","text":"the security to have the highest of the multiple ratings.","page_number":228,"box":{"x":116,"y":413,"width":407,"height":12}},{"id":"a0e2daaf-76df-471b-b3ad-26d50c1046df","block_type":"box","text":"New issue securities (regardless of type) may not be rated by a NRSRO at the time of their initial","page_number":228,"box":{"x":117,"y":444,"width":722,"height":12}},{"id":"5a94a0ca-6070-4f87-8277-9e0e69eae8c8","block_type":"box","text":"offering. Preliminary prospectuses or term sheets for new issue securities may include an expected","page_number":228,"box":{"x":116,"y":459,"width":742,"height":12}},{"id":"6850cc0e-7634-42ce-bcc2-2a74ce0a8cb6","block_type":"box","text":"rating for the security (as determined by the underwriter and/or issuer) or a NRSRO rating for the","page_number":228,"box":{"x":117,"y":475,"width":723,"height":12}},{"id":"4af3a4a1-3c0e-444f-baf9-f58a467b3ca9","block_type":"box","text":"issuer of the security. If applicable, when deciding whether to purchase a new issue security that has","page_number":228,"box":{"x":117,"y":490,"width":752,"height":12}},{"id":"d3632046-37e5-47ca-8ff8-40851c4f6475","block_type":"box","text":"not yet been rated by a NRSRO, BlackRock may attribute an expected rating to the security based on:","page_number":228,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"7a8a014d-eeba-44e5-a164-0d31eecf6f31","block_type":"box","text":"(i) the expected rating of the security set forth in the preliminary prospectus or term sheet for the","page_number":228,"box":{"x":117,"y":521,"width":718,"height":12}},{"id":"4f79a42a-af20-478a-b7dc-c03f3f61d3ce","block_type":"box","text":"security; (ii) the NRSRO’s rating for the issuer of the security set forth in the preliminary prospectus or","page_number":228,"box":{"x":116,"y":537,"width":760,"height":12}},{"id":"17f7f644-aa46-4c45-bb21-8112c1b4969c","block_type":"box","text":"term sheet for the security; or (iii) with respect to asset-backed securities, the rating of a prior issuance","page_number":228,"box":{"x":116,"y":552,"width":767,"height":12}},{"id":"d1ddcaef-8742-454f-a81d-0c41d936dc74","block_type":"box","text":"having a similar structure or the same sponsor.","page_number":228,"box":{"x":117,"y":568,"width":353,"height":12}},{"id":"01964865-3024-4ef4-a7e1-1f2eb6884e76","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit","page_number":228,"box":{"x":116,"y":599,"width":746,"height":12}},{"id":"6cad8c7c-ea59-4fa5-b203-1a3d12dbb070","block_type":"box","text":"ratings eligibility criteria as part of its index methodology, the fund may purchase any security within the","page_number":228,"box":{"x":117,"y":614,"width":771,"height":12}},{"id":"d4ec56ce-ea12-47d7-9ac2-11c12fd372ea","block_type":"box","text":"index, such security having been determined by the index provider as meeting its credit ratings","page_number":228,"box":{"x":117,"y":630,"width":707,"height":12}},{"id":"8ae03fc8-3044-4c48-9246-c086afc348b3","block_type":"box","text":"eligibility criteria. The credit ratings practices of an index provider may differ from BlackRock’s","page_number":228,"box":{"x":116,"y":645,"width":701,"height":12}},{"id":"836b6430-6e2c-452c-8730-8b99ac386d28","block_type":"box","text":"practices, as described above. Further, the fund may invest, directly or indirectly, in securities that are","page_number":228,"box":{"x":117,"y":661,"width":754,"height":12}},{"id":"f6e92682-f66b-41f2-9d4f-65352bd4b775","block_type":"box","text":"not rated by a rating agency or securities with a credit rating that differs from the credit rating specified","page_number":228,"box":{"x":117,"y":676,"width":757,"height":12}},{"id":"7dc8337b-af5d-438c-84b6-2aa2ed3ba5f5","block_type":"box","text":"in its index methodology in various circumstances, including where a security is downgraded but not","page_number":228,"box":{"x":117,"y":692,"width":741,"height":12}},{"id":"31cdafe3-c6ac-4ac2-bf66-6d0af2f4dee3","block_type":"box","text":"yet removed from an index, following the removal of a security from an index prior to its sale by the","page_number":228,"box":{"x":116,"y":707,"width":733,"height":12}},{"id":"b5e6f412-a1fa-45ac-93ac-1e1a07434271","block_type":"box","text":"fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the","page_number":228,"box":{"x":116,"y":723,"width":734,"height":12}},{"id":"0454a3db-bb73-4a61-841c-df171d4f9e43","block_type":"box","text":"fund.","page_number":228,"box":{"x":116,"y":738,"width":36,"height":10}},{"id":"4a697910-b85b-466f-b7fd-e898b4340343","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to","page_number":228,"box":{"x":117,"y":769,"width":757,"height":12}},{"id":"9ff74d1d-5da1-487f-932e-0aa14e5c07e6","block_type":"box","text":"pay interest or repay principal which are similar to the risks of lower-rated speculative bonds.","page_number":228,"box":{"x":117,"y":785,"width":686,"height":12}},{"id":"d676d77e-fd07-4a10-8964-9fc62754f9e6","block_type":"box","text":"Evaluation of these securities is dependent on BlackRock’s judgment, analysis and experience in the","page_number":228,"box":{"x":117,"y":800,"width":747,"height":12}},{"id":"3f07cdad-4cf2-48d7-bf96-79792fd09eaf","block_type":"box","text":"evaluation of such securities.","page_number":228,"box":{"x":116,"y":816,"width":214,"height":9}},{"id":"af4e96dc-4194-4630-81bd-85286f98fdc3","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the","page_number":228,"box":{"x":117,"y":847,"width":745,"height":12}},{"id":"6b017c95-bfae-4016-afb6-3aa5cb4e1d06","block_type":"box","text":"effect of recent developments on the issuer’s ability to make interest and principal payments or on the","page_number":228,"box":{"x":116,"y":862,"width":760,"height":12}},{"id":"69bbf6e6-b1b7-425d-82ee-469308e089b1","block_type":"box","text":"likelihood of default.","page_number":228,"box":{"x":117,"y":878,"width":152,"height":9}},{"id":"97d86e3b-cea7-4960-a8a0-cd1574cd1906","block_type":"box","text":"A-1","page_number":228,"box":{"x":486,"y":909,"width":24,"height":9}},{"id":"41de3ce1-5bf0-4e26-8d55-d31f0c5b9914","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":228,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"6f563726-1215-47f4-a592-bfaab46d85c7","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global","page_number":229,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"33961397-0262-42d9-8e8e-6fddfcfd7bf5","block_type":"box","text":"Ratings and Fitch.","page_number":229,"box":{"x":117,"y":103,"width":139,"height":12}},{"id":"d92b76ed-fead-4337-9918-b4818336eb0d","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":229,"box":{"x":116,"y":134,"width":674,"height":12}},{"id":"980e91b2-d0de-421f-bcb9-f42300bdf92c","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":229,"box":{"x":116,"y":165,"width":677,"height":12}},{"id":"82da9f17-a151-40c0-858c-968fe18ad822","block_type":"box","text":"Ratings assigned on Moody’s global long-term and short-term rating scales are forward-looking","page_number":229,"box":{"x":117,"y":196,"width":711,"height":12}},{"id":"cf744270-d154-49d4-8ae6-22ff868a1f2b","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial","page_number":229,"box":{"x":116,"y":211,"width":759,"height":12}},{"id":"4398cc2c-a1cd-4cf1-846b-cbe44aba6b45","block_type":"box","text":"institutions, structured finance vehicles, project finance vehicles, and public sector entities. Moody’s","page_number":229,"box":{"x":117,"y":227,"width":742,"height":12}},{"id":"7cd63c4b-8156-4d50-89fd-14289fd98a92","block_type":"box","text":"defines credit risk as the risk that an entity may not meet its contractual financial obligations as they","page_number":229,"box":{"x":116,"y":242,"width":744,"height":12}},{"id":"0dff2f28-8d2f-448e-b3fe-19ed10c4e079","block_type":"box","text":"come due and any estimated financial loss in the event of default or impairment. The contractual","page_number":229,"box":{"x":116,"y":258,"width":720,"height":12}},{"id":"63fdb754-540d-41dc-8ec9-c17312185eed","block_type":"box","text":"financial obligations addressed by Moody’s ratings are those that call for, without regard to","page_number":229,"box":{"x":116,"y":273,"width":676,"height":12}},{"id":"01313c7d-d169-4118-95ac-41d1e1a452fc","block_type":"box","text":"enforceability, the payment of an ascertainable amount, which may vary based upon standard sources","page_number":229,"box":{"x":116,"y":289,"width":765,"height":12}},{"id":"3fd8574a-540a-4927-9052-9c723aedc317","block_type":"box","text":"of variation (e.g., floating interest rates), by an ascertainable date. Moody’s rating addresses the","page_number":229,"box":{"x":116,"y":304,"width":719,"height":12}},{"id":"b498fbd1-0da4-49b0-b85a-df61071e3666","block_type":"box","text":"issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s","page_number":229,"box":{"x":117,"y":320,"width":738,"height":12}},{"id":"ef88c7dc-8f51-4a5d-8095-7f351bbe5b65","block_type":"box","text":"ratings do not address non-standard sources of variation in the amount of the principal obligation (e.g.,","page_number":229,"box":{"x":117,"y":335,"width":765,"height":12}},{"id":"7fef72d6-630e-4301-8f41-e14d0cef2f3c","block_type":"box","text":"equity indexed), absent an express statement to the contrary in a press release accompanying an","page_number":229,"box":{"x":116,"y":351,"width":731,"height":12}},{"id":"66ffff97-b722-4c95-aed1-2ea879f827c9","block_type":"box","text":"initial rating. Long-term ratings are assigned to issuers or obligations with an original maturity of one","page_number":229,"box":{"x":117,"y":366,"width":745,"height":12}},{"id":"27d3c0a3-c7f2-4d21-84ca-298627a35be3","block_type":"box","text":"year or more and reflect both on the likelihood of a default or impairment on contractual financial","page_number":229,"box":{"x":116,"y":382,"width":719,"height":12}},{"id":"f6eee7d3-3930-4805-ae6f-a84cf97723d7","block_type":"box","text":"obligations and the expected financial loss suffered in the event of default or impairment. Short-term","page_number":229,"box":{"x":116,"y":397,"width":747,"height":12}},{"id":"8b0b8856-7043-405c-8244-de128149e600","block_type":"box","text":"ratings are assigned for obligations with an original maturity of thirteen months or less and reflect both","page_number":229,"box":{"x":117,"y":413,"width":760,"height":12}},{"id":"d49fe38e-0d47-4921-9ba9-b63513c35dee","block_type":"box","text":"on the likelihood of a default or impairment on contractual financial obligations and the expected","page_number":229,"box":{"x":116,"y":428,"width":717,"height":12}},{"id":"9efbe70f-5f31-4ced-b505-27214b0069ce","block_type":"box","text":"financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":229,"box":{"x":116,"y":444,"width":755,"height":12}},{"id":"e09ef541-b376-41f5-a736-bad75a4775b7","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made","page_number":229,"box":{"x":116,"y":459,"width":761,"height":12}},{"id":"4b8aad9b-7f91-478a-a2b8-ef6a23b9cea8","block_type":"box","text":"publicly available although private and unpublished ratings may also be assigned.","page_number":229,"box":{"x":117,"y":475,"width":610,"height":12}},{"id":"e43be861-4b75-41d8-85ec-5378a42ab376","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (i.e., ratings on nonfinancial","page_number":229,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"09bab2af-500b-47cd-b525-2c28410b2bbb","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to","page_number":229,"box":{"x":116,"y":521,"width":769,"height":12}},{"id":"8b93f8a4-95a5-4445-a6a0-3cace12a0475","block_type":"box","text":"all structured finance ratings. The addition of (sf) to structured finance ratings should eliminate any","page_number":229,"box":{"x":116,"y":537,"width":735,"height":12}},{"id":"114d039c-ebc7-4d14-8381-423f1c901b6f","block_type":"box","text":"presumption that such ratings and fundamental ratings at the same letter grade level will behave the","page_number":229,"box":{"x":117,"y":552,"width":747,"height":12}},{"id":"7bdd786e-ceb7-497c-8b35-3ec1e0de72b5","block_type":"box","text":"same. The (sf) indicator for structured finance security ratings indicates that otherwise similarly rated","page_number":229,"box":{"x":116,"y":568,"width":751,"height":12}},{"id":"f1c82775-0ca2-42e7-b455-df06defd7a67","block_type":"box","text":"structured finance and fundamental securities may have different risk characteristics. Through its","page_number":229,"box":{"x":116,"y":583,"width":724,"height":12}},{"id":"c7baed22-2deb-4146-a4c0-4503baf20978","block_type":"box","text":"current methodologies, however, Moody’s aspires to achieve broad expected equivalence in structured","page_number":229,"box":{"x":116,"y":599,"width":769,"height":12}},{"id":"3f6e595d-d243-46c9-b67d-0a8b7e63ee8f","block_type":"box","text":"finance and fundamental rating performance when measured over a long period of time.","page_number":229,"box":{"x":116,"y":614,"width":658,"height":12}},{"id":"1d5db145-34b0-4af1-84fd-865af672554d","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":229,"box":{"x":117,"y":645,"width":445,"height":12}},{"id":"3f43f418-7cf4-43f7-90b2-aa59ad1d959f","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of","page_number":229,"box":{"x":116,"y":676,"width":726,"height":12}},{"id":"f2290e95-fef2-4f1f-a21a-dedacb913b98","block_type":"box","text":"credit risk.","page_number":229,"box":{"x":175,"y":692,"width":75,"height":9}},{"id":"dad03f1f-7ab3-4c36-a6c8-c40530c405dd","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":229,"box":{"x":116,"y":715,"width":731,"height":12}},{"id":"b4c26dd1-bdd1-4c5e-bb82-b2aee4888f8f","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":229,"box":{"x":116,"y":738,"width":737,"height":12}},{"id":"f2e6050e-01f6-4c8a-b265-5aa273fcb287","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and","page_number":229,"box":{"x":117,"y":761,"width":753,"height":13}},{"id":"fe895a5e-400e-4ec0-933b-a3b320cef00f","block_type":"box","text":"as such may possess certain speculative characteristics.","page_number":229,"box":{"x":175,"y":777,"width":420,"height":12}},{"id":"a6995bfd-b7c7-4f5b-b975-984a8ee1bc0c","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":229,"box":{"x":117,"y":800,"width":729,"height":12}},{"id":"25766874-c8ad-4520-a25e-fbe0702a9754","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":229,"box":{"x":117,"y":823,"width":660,"height":13}},{"id":"3daf438d-98c6-474f-8fc8-e1115d30f97a","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very","page_number":229,"box":{"x":117,"y":847,"width":741,"height":12}},{"id":"11442275-0bb9-4628-819b-c394bb29ea3d","block_type":"box","text":"high credit risk.","page_number":229,"box":{"x":176,"y":862,"width":116,"height":12}},{"id":"3d84bf51-5bee-4e6e-ba9b-771bed64dbc3","block_type":"box","text":"A-2","page_number":229,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"36e92bb5-04f3-4ef4-8d74-2b90113ad4fc","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":229,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"28da3a9d-d0ae-4abb-b48e-963589b8655b","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":230,"box":{"x":117,"y":87,"width":748,"height":12}},{"id":"345d56c5-e975-49f3-af1c-45a117b480ed","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":230,"box":{"x":176,"y":102,"width":339,"height":13}},{"id":"9473e9fb-a6a1-4c18-97d6-b20dc7c65651","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for","page_number":230,"box":{"x":117,"y":126,"width":726,"height":12}},{"id":"2005e905-5845-465d-b121-6fabe1c392ae","block_type":"box","text":"recovery of principal or interest.","page_number":230,"box":{"x":176,"y":141,"width":238,"height":12}},{"id":"241b5209-6e96-472c-8c46-8e8bff8e80e7","block_type":"box","text":"Note","page_number":230,"box":{"x":117,"y":172,"width":34,"height":10}},{"id":"182100fe-18b1-48d9-9c59-e6e12fa56c94","block_type":"box","text":": Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa","page_number":230,"box":{"x":153,"y":172,"width":709,"height":12}},{"id":"02564216-ba2f-406b-8d71-55b9612ac64a","block_type":"box","text":"through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating","page_number":230,"box":{"x":116,"y":188,"width":745,"height":12}},{"id":"31a637e6-0d48-4456-bead-fee4ccd9e683","block_type":"box","text":"category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the","page_number":230,"box":{"x":116,"y":203,"width":741,"height":12}},{"id":"81b704dd-b57c-45f9-b60d-f092e12497e0","block_type":"box","text":"lower end of that generic rating category. Additionally, a “(hyb)” indicator is appended to all ratings of","page_number":230,"box":{"x":117,"y":219,"width":751,"height":12}},{"id":"f44cbee6-a9ff-47f8-b127-7da741dc76de","block_type":"box","text":"hybrid securities issued by banks, insurers, finance companies, and securities firms.","page_number":230,"box":{"x":117,"y":234,"width":628,"height":12}},{"id":"6b51d5d1-3d6a-4ed9-a225-96a5859a751d","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal","page_number":230,"box":{"x":117,"y":265,"width":737,"height":12}},{"id":"bff9bd40-a851-410c-9e49-4ab88cfe3a2d","block_type":"box","text":"payments, which can potentially result in impairment if such an omission occurs. Hybrid securities may","page_number":230,"box":{"x":117,"y":281,"width":765,"height":12}},{"id":"724f2601-fef9-4800-a2f9-1429b13c0d6a","block_type":"box","text":"also be subject to contractually allowable write-downs of principal that could result in impairment.","page_number":230,"box":{"x":116,"y":296,"width":724,"height":12}},{"id":"b6a9e3bb-b48a-441e-ae79-ee49835a8368","block_type":"box","text":"Together with the hybrid indicator, the long-term obligation rating assigned to a hybrid security is an","page_number":230,"box":{"x":116,"y":312,"width":744,"height":12}},{"id":"16f77463-6685-4509-975d-f49631ecd107","block_type":"box","text":"expression of the relative credit risk associated with that security.","page_number":230,"box":{"x":116,"y":327,"width":488,"height":12}},{"id":"8d3c2423-fcc6-4c0f-bef5-7a5f81579905","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":230,"box":{"x":117,"y":358,"width":448,"height":12}},{"id":"22d3a24b-c06e-4d30-96f8-0d78c072069e","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":230,"box":{"x":117,"y":389,"width":616,"height":12}},{"id":"3f6ca21a-7bc2-4c65-a1c4-6777f4135e69","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":230,"box":{"x":117,"y":413,"width":602,"height":12}},{"id":"36f2f8e9-64fc-4ded-9c3c-4df3f9c8f5d8","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":230,"box":{"x":117,"y":436,"width":646,"height":12}},{"id":"e46c022d-0931-4cf2-b6bb-47e5c75229c2","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":230,"box":{"x":117,"y":459,"width":737,"height":12}},{"id":"f48861fd-8b61-41eb-b5da-5403bda92390","block_type":"box","text":"categories.","page_number":230,"box":{"x":175,"y":475,"width":87,"height":12}},{"id":"eb8d06ea-8af9-4c95-9409-16488bf51ec6","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":230,"box":{"x":117,"y":506,"width":707,"height":12}},{"id":"b0da8943-ce0f-48bb-af7b-3f04db312df1","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":230,"box":{"x":117,"y":537,"width":439,"height":12}},{"id":"8fa00117-3d1b-44f5-bcad-f3049de05946","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S.","page_number":230,"box":{"x":117,"y":568,"width":681,"height":12}},{"id":"76d4f16b-4a3b-4720-b16f-fbe98ab1860d","block_type":"box","text":"municipalities and nonprofits. These commercial paper programs may be backed by external letters of","page_number":230,"box":{"x":117,"y":583,"width":761,"height":12}},{"id":"83bfecf9-11e0-4b93-b460-01e431526668","block_type":"box","text":"credit or liquidity facilities, or by an issuer’s self-liquidity.","page_number":230,"box":{"x":116,"y":599,"width":420,"height":12}},{"id":"2341316d-f927-49eb-99fa-6a8a19b7fe9a","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":230,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"ffdbcd71-3d6b-4235-8474-edaf8a38d5a8","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales","page_number":230,"box":{"x":117,"y":645,"width":708,"height":12}},{"id":"ae88c557-ce4d-4c4b-a1f2-ca122dcc076c","block_type":"box","text":"discussed below.","page_number":230,"box":{"x":116,"y":661,"width":126,"height":9}},{"id":"713989f3-8100-4bb4-bd08-5d6a06c16009","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain","page_number":230,"box":{"x":117,"y":692,"width":738,"height":12}},{"id":"eab13290-198e-4168-8450-086a80aa533e","block_type":"box","text":"other short-term obligations, which typically mature in three years or less. Under certain circumstances,","page_number":230,"box":{"x":116,"y":707,"width":766,"height":12}},{"id":"d8967bb1-7df6-4493-89a8-ed7eb43cc47f","block_type":"box","text":"Moody’s uses the MIG scale for bond anticipation notes with maturities of up to five years.","page_number":230,"box":{"x":117,"y":723,"width":665,"height":12}},{"id":"26b1acbd-a884-4300-96f4-2400df5f3936","block_type":"box","text":"MIG Scale","page_number":230,"box":{"x":117,"y":754,"width":77,"height":9}},{"id":"0abde425-93e6-47da-a525-5d8183131408","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":230,"box":{"x":117,"y":785,"width":760,"height":12}},{"id":"190e81d2-2238-4cc3-8360-cb9e6455cf80","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market","page_number":230,"box":{"x":175,"y":800,"width":703,"height":12}},{"id":"873c51e4-27a3-4fc3-8fa0-905fd990b5d1","block_type":"box","text":"for refinancing.","page_number":230,"box":{"x":175,"y":816,"width":110,"height":12}},{"id":"73f57368-0dd0-4310-aa27-ad2c919aa146","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":230,"box":{"x":117,"y":839,"width":771,"height":12}},{"id":"0c317801-4590-4a6b-bf14-980cd2730ade","block_type":"box","text":"large as in the preceding group.","page_number":230,"box":{"x":176,"y":855,"width":240,"height":12}},{"id":"e930dee0-06ec-4e31-96e8-4868be35cdaf","block_type":"box","text":"A-3","page_number":230,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"aade9f6e-b17d-46bc-87dc-03055d6fbfd7","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":230,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"f872f48c-7fc6-48cf-be19-9facd4097e38","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":231,"box":{"x":117,"y":87,"width":753,"height":12}},{"id":"777763d9-652a-4a71-a85c-a060d20d5f50","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":231,"box":{"x":176,"y":102,"width":582,"height":13}},{"id":"6ecea2bf-9617-446b-be20-7771842ddf18","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category","page_number":231,"box":{"x":116,"y":126,"width":741,"height":12}},{"id":"9693a630-cbc3-430b-b42a-60a95bfec0d4","block_type":"box","text":"may lack sufficient margins of protection.","page_number":231,"box":{"x":176,"y":141,"width":307,"height":12}},{"id":"52ef359e-ed31-4e28-ad50-72dadf1fffdd","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":231,"box":{"x":117,"y":172,"width":415,"height":12}},{"id":"66b3d931-522d-4bc0-8691-f6be9ba740ce","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The","page_number":231,"box":{"x":117,"y":203,"width":749,"height":12}},{"id":"8463cdd3-d885-4598-b81f-d5dc8fb2bdd9","block_type":"box","text":"components are a long-term rating and a short-term demand obligation rating. The long-term rating","page_number":231,"box":{"x":116,"y":219,"width":740,"height":12}},{"id":"1648acab-18a5-49ff-9f48-4dc63028c201","block_type":"box","text":"addresses the issuer’s ability to meet scheduled principal and interest payments. The short-term","page_number":231,"box":{"x":116,"y":234,"width":719,"height":12}},{"id":"caf37b4b-1a99-4ab9-9c61-f5032f846836","block_type":"box","text":"demand obligation rating addresses the ability of the issuer or the liquidity provider to make payments","page_number":231,"box":{"x":116,"y":250,"width":759,"height":12}},{"id":"605e91a2-0229-4492-8b0e-6b62a1600723","block_type":"box","text":"associated with the purchase-price-upon-demand feature (“demand feature”) of the VRDO. The short","page_number":231,"box":{"x":116,"y":265,"width":756,"height":12}},{"id":"e66f7c09-1dc6-4583-b6a1-bdb92e999ace","block_type":"box","text":"term demand obligation rating uses the VMIG scale. VMIG ratings with liquidity support use as an input","page_number":231,"box":{"x":116,"y":281,"width":770,"height":12}},{"id":"cfcbd901-6b9a-431a-9137-96882e8b3641","block_type":"box","text":"the short-term Counterparty Risk Assessment of the support provider, or the long-term rating of the","page_number":231,"box":{"x":116,"y":296,"width":740,"height":12}},{"id":"0b97215d-4d2f-4000-9f7c-6af657006688","block_type":"box","text":"underlying obligor in the absence of third party liquidity support. Transitions of VMIG ratings of demand","page_number":231,"box":{"x":117,"y":312,"width":768,"height":12}},{"id":"e6b165c8-a86d-485a-95b8-ec1b3ced9652","block_type":"box","text":"obligations with conditional liquidity support differ from transitions on the Prime scale to reflect the risk","page_number":231,"box":{"x":116,"y":327,"width":760,"height":12}},{"id":"4e609ce7-f6a3-4947-86dd-288c405bf5eb","block_type":"box","text":"that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":231,"box":{"x":116,"y":343,"width":729,"height":12}},{"id":"a3c6cc43-38cc-4de7-9679-6f4758dfcff6","block_type":"box","text":"grade.","page_number":231,"box":{"x":116,"y":358,"width":52,"height":12}},{"id":"85bddf09-b1bc-4343-af7d-0fd4761e0c27","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand","page_number":231,"box":{"x":117,"y":389,"width":771,"height":12}},{"id":"4485739d-b812-4d1b-842b-2344d06c46b6","block_type":"box","text":"feature is less than every three years. If the frequency of the demand feature is less than three years","page_number":231,"box":{"x":116,"y":405,"width":753,"height":12}},{"id":"b4198e10-c612-4301-aa47-27dbf74d495b","block_type":"box","text":"but the purchase price is payable only with remarketing proceeds, the short-term demand obligation","page_number":231,"box":{"x":117,"y":420,"width":745,"height":12}},{"id":"6bdf5741-2f34-484d-b1bc-d9d0b83103d4","block_type":"box","text":"rating is “NR”.","page_number":231,"box":{"x":117,"y":436,"width":107,"height":12}},{"id":"27b5f56f-7d37-4177-b12b-dfcd23187f89","block_type":"box","text":"VMIG Scale","page_number":231,"box":{"x":116,"y":467,"width":94,"height":9}},{"id":"9bf034bb-9b42-432b-a34f-d5d20c411652","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the","page_number":231,"box":{"x":116,"y":498,"width":713,"height":12}},{"id":"7fd03d53-17a5-4733-9ea0-0c6658e9ad51","block_type":"box","text":"superior short-term credit strength of the liquidity provider and structural and legal protections","page_number":231,"box":{"x":184,"y":513,"width":697,"height":12}},{"id":"e3505768-6332-4b7c-8976-c77e39399b32","block_type":"box","text":"that ensure the timely payment of purchase price upon demand.","page_number":231,"box":{"x":183,"y":529,"width":481,"height":12}},{"id":"55799214-36b5-4caa-9cda-d4e17884ee27","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short","page_number":231,"box":{"x":116,"y":552,"width":766,"height":12}},{"id":"dbf2b093-da22-475c-abff-5327eabd0ce8","block_type":"box","text":"term credit strength of the liquidity provider and structural and legal protections that ensure","page_number":231,"box":{"x":183,"y":568,"width":679,"height":12}},{"id":"082ebd85-062c-42a8-83c3-d046efce5f7f","block_type":"box","text":"the timely payment of purchase price upon demand.","page_number":231,"box":{"x":183,"y":583,"width":392,"height":12}},{"id":"e73b6262-1163-4070-8a6e-5fdcc5dc17f1","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":231,"box":{"x":116,"y":606,"width":738,"height":12}},{"id":"14e3db6a-5afd-4ace-8a2f-c56325215a2c","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal","page_number":231,"box":{"x":184,"y":622,"width":635,"height":12}},{"id":"df30eaf1-4d1c-46bf-ad34-1cd9a0bfb473","block_type":"box","text":"protections that ensure the timely payment of purchase price upon demand.","page_number":231,"box":{"x":184,"y":637,"width":567,"height":12}},{"id":"2768a66b-132c-432a-be51-3e4bc6d5a5b5","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this","page_number":231,"box":{"x":116,"y":661,"width":720,"height":12}},{"id":"2114638d-e928-4885-9073-3b239f34e077","block_type":"box","text":"category may be supported by a liquidity provider that does not have a sufficiently strong","page_number":231,"box":{"x":184,"y":676,"width":657,"height":12}},{"id":"8cde60f8-045a-47bf-af83-c5c0e78dd0fa","block_type":"box","text":"short-term rating or may lack the structural or legal protections necessary to ensure the timely","page_number":231,"box":{"x":184,"y":692,"width":695,"height":12}},{"id":"dc2eb214-7ea9-4df3-808f-95df2dabbaed","block_type":"box","text":"payment of purchase price upon demand.","page_number":231,"box":{"x":184,"y":707,"width":308,"height":12}},{"id":"529add3b-1fa2-4d5b-8162-aa02c2d5c98f","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":231,"box":{"x":117,"y":738,"width":753,"height":12}},{"id":"a5b15c9b-8909-4825-a4ab-81462f7412cd","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with","page_number":231,"box":{"x":116,"y":769,"width":737,"height":12}},{"id":"d597ba47-6631-42fc-9d80-cc97adc3eb2c","block_type":"box","text":"respect to a specific financial obligation, a specific class of financial obligations, or a specific financial","page_number":231,"box":{"x":117,"y":785,"width":748,"height":12}},{"id":"facc3ee1-9b0b-4afd-acca-c914ef758a57","block_type":"box","text":"program (including ratings on medium-term note programs and commercial paper programs). It takes","page_number":231,"box":{"x":117,"y":800,"width":750,"height":12}},{"id":"48e118e0-f836-432b-8d32-cd7dd82ed608","block_type":"box","text":"into consideration the creditworthiness of guarantors, insurers, or other forms of credit enhancement","page_number":231,"box":{"x":117,"y":816,"width":744,"height":12}},{"id":"358b88ed-10da-4f69-8485-7a93f2b59851","block_type":"box","text":"on the obligation and takes into account the currency in which the obligation is denominated. The","page_number":231,"box":{"x":116,"y":831,"width":726,"height":12}},{"id":"7aa44951-e657-45d2-98e5-89459e2c6186","block_type":"box","text":"opinion reflects S&P’s view of the obligor’s capacity and willingness to meet its financial commitments","page_number":231,"box":{"x":116,"y":847,"width":759,"height":12}},{"id":"de13d60b-e1a3-4348-8924-f77bccd01002","block_type":"box","text":"as they come due, and this opinion may assess terms, such as collateral security and subordination,","page_number":231,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"be3ada16-728c-4a19-8466-fbc31d099b78","block_type":"box","text":"which could affect ultimate payment in the event of default.","page_number":231,"box":{"x":116,"y":878,"width":441,"height":12}},{"id":"e04293f6-5c74-42dd-b4b1-9656a9162af2","block_type":"box","text":"A-4","page_number":231,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"f6fb579e-0229-4165-8e22-957be61bf116","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":231,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"838b1faf-b487-4c99-bfe3-29d62b3f2d7b","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally","page_number":232,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"e64f95ea-88dc-4f03-835f-87388cd893df","block_type":"box","text":"assigned to those obligations considered short-term in the relevant market, typically with an original","page_number":232,"box":{"x":116,"y":103,"width":743,"height":12}},{"id":"df6e6149-b638-45b3-938a-afa58916328c","block_type":"box","text":"maturity of no more than 365 days. Short-term issue credit ratings are also used to indicate the","page_number":232,"box":{"x":117,"y":118,"width":708,"height":12}},{"id":"93f4703c-05b8-4613-8f2c-e86785f6e5c1","block_type":"box","text":"creditworthiness of an obligor with respect to put features on long-term obligations. S&P would typically","page_number":232,"box":{"x":116,"y":134,"width":771,"height":12}},{"id":"b6fc355c-48cf-44a2-a1d0-f8428768465c","block_type":"box","text":"assign a long-term issue credit rating to an obligation with an original maturity of greater than 365 days.","page_number":232,"box":{"x":116,"y":149,"width":772,"height":12}},{"id":"cd9b8acd-d3f8-45f7-bfe9-2373afae6675","block_type":"box","text":"However, the ratings S&P assigns to certain instruments may diverge from these guidelines based on","page_number":232,"box":{"x":117,"y":165,"width":758,"height":12}},{"id":"6afa2792-96d3-4806-85d6-917a1605e794","block_type":"box","text":"market practices. Medium-term notes are assigned long-term ratings.","page_number":232,"box":{"x":117,"y":180,"width":518,"height":12}},{"id":"5650234f-9b97-4a89-854f-7677b5e488e5","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":232,"box":{"x":117,"y":211,"width":750,"height":12}},{"id":"fa5c44cc-1459-4954-8b5a-23306b802c0b","block_type":"box","text":"• The likelihood of payment—the capacity and willingness of the obligor to meet its financial","page_number":232,"box":{"x":150,"y":242,"width":706,"height":12}},{"id":"c160a5ea-a657-42c1-b1fb-dbe302a2a508","block_type":"box","text":"commitments on an obligation in accordance with the terms of the obligation;","page_number":232,"box":{"x":184,"y":258,"width":575,"height":12}},{"id":"36f9c4ab-d5e4-4e18-ad85-c82a506d612e","block_type":"box","text":"• The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":232,"box":{"x":150,"y":281,"width":692,"height":12}},{"id":"8ec32c3e-ebdf-4d31-b8f2-d4d7d001d645","block_type":"box","text":"• The protection afforded by, and relative position of, the financial obligation in the event of a","page_number":232,"box":{"x":150,"y":304,"width":712,"height":12}},{"id":"835ed5df-b0c2-4ecd-999c-00c0b9195fc8","block_type":"box","text":"bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws","page_number":232,"box":{"x":184,"y":320,"width":704,"height":12}},{"id":"a631da42-42d7-4e58-af1d-eb0eb1e9949e","block_type":"box","text":"affecting creditors’ rights.","page_number":232,"box":{"x":184,"y":335,"width":191,"height":12}},{"id":"49210a8c-397e-4c4d-8d4c-e3a65d609cc6","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority","page_number":232,"box":{"x":116,"y":366,"width":772,"height":12}},{"id":"1fd31f66-c5fd-46d6-8be7-768c5106bed9","block_type":"box","text":"or ultimate recovery in the event of default. Junior obligations are typically rated lower than senior","page_number":232,"box":{"x":116,"y":382,"width":728,"height":12}},{"id":"dabe88e9-9284-4afb-8e35-9ea178760bf1","block_type":"box","text":"obligations, to reflect lower priority in bankruptcy, as noted above. (Such differentiation may apply","page_number":232,"box":{"x":116,"y":397,"width":729,"height":12}},{"id":"86ad7c45-2bbd-48c0-a7f1-25866abffe38","block_type":"box","text":"when an entity has both senior and subordinated obligations, secured and unsecured obligations, or","page_number":232,"box":{"x":116,"y":413,"width":747,"height":12}},{"id":"6b1cb91a-533a-4e3f-b8fc-6822ac417b7b","block_type":"box","text":"operating company and holding company obligations.)","page_number":232,"box":{"x":116,"y":428,"width":407,"height":12}},{"id":"44ae543f-b87c-4f83-bbbf-3fc1f619d0d6","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":232,"box":{"x":117,"y":459,"width":265,"height":12}},{"id":"c8acf153-4740-4129-a896-4e9c37b4b48b","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to","page_number":232,"box":{"x":116,"y":490,"width":755,"height":12}},{"id":"a51487b5-327a-4981-9de8-7a9a245db8c9","block_type":"box","text":"meet its financial commitments on the obligation is extremely strong.","page_number":232,"box":{"x":192,"y":506,"width":513,"height":12}},{"id":"4d6cf1f3-d601-4c3b-9b07-cde4c28520a6","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree.","page_number":232,"box":{"x":116,"y":529,"width":734,"height":12}},{"id":"6cfd1d58-af45-45fc-84c0-823b6f671562","block_type":"box","text":"The obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":232,"box":{"x":191,"y":544,"width":659,"height":12}},{"id":"58d2e758-f77d-4226-a22f-ce94bcdbb6f7","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":232,"box":{"x":116,"y":568,"width":744,"height":12}},{"id":"f62b8a6d-8450-4ef8-81fa-96d9f0a436b7","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories.","page_number":232,"box":{"x":192,"y":583,"width":624,"height":12}},{"id":"e3ff1b21-2812-438c-9b80-a5ecfbd45bd5","block_type":"box","text":"However, the obligor’s capacity to meet its financial commitments on the obligation is still","page_number":232,"box":{"x":192,"y":599,"width":664,"height":12}},{"id":"16d2ad19-4c07-4f88-b06f-ddfc1c7c6158","block_type":"box","text":"strong.","page_number":232,"box":{"x":191,"y":614,"width":56,"height":12}},{"id":"6373f428-a4e1-4e46-9bf3-0d34d6dc03b0","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse","page_number":232,"box":{"x":117,"y":637,"width":715,"height":12}},{"id":"9bf9cd58-8abb-41f4-8a65-b4d280052b65","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken the obligor’s","page_number":232,"box":{"x":192,"y":653,"width":652,"height":12}},{"id":"ba34af93-6bee-4daf-99f6-bc88150bdad7","block_type":"box","text":"capacity to meet its financial commitments on the obligation.","page_number":232,"box":{"x":192,"y":668,"width":446,"height":12}},{"id":"e67a3054-91a5-4e5c-a259-9c4e5a747276","block_type":"box","text":"BB, B,","page_number":232,"box":{"x":117,"y":692,"width":45,"height":11}},{"id":"e5eb0af5-5843-46ed-8ffd-f9ccb7f5c572","block_type":"box","text":"CCC,","page_number":232,"box":{"x":117,"y":707,"width":38,"height":11}},{"id":"001a5d8c-0b47-4e6f-a8e7-6e6dad50b03c","block_type":"box","text":"CC,","page_number":232,"box":{"x":117,"y":723,"width":26,"height":11}},{"id":"f8613c9f-3cfa-406e-b98e-cd11c3fba609","block_type":"box","text":"and C","page_number":232,"box":{"x":116,"y":738,"width":44,"height":10}},{"id":"2eb1b655-b57b-439a-b88e-ffb0d2471096","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant","page_number":232,"box":{"x":192,"y":692,"width":602,"height":12}},{"id":"542cc1e3-29e7-4d76-8307-dfb4e9176f0b","block_type":"box","text":"speculative characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the","page_number":232,"box":{"x":191,"y":707,"width":625,"height":12}},{"id":"832ff9a7-4fe4-4a8e-90e2-89c06ad7c79b","block_type":"box","text":"highest. While such obligations will likely have some quality and protective characteristics,","page_number":232,"box":{"x":192,"y":723,"width":666,"height":12}},{"id":"2e45cfee-afbb-4a6a-a85b-3a081980a039","block_type":"box","text":"these may be outweighed by large uncertainties or major exposure to adverse conditions.","page_number":232,"box":{"x":191,"y":738,"width":664,"height":12}},{"id":"eefa1e0b-3116-4c1c-9d76-fe547ed6bf98","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues.","page_number":232,"box":{"x":117,"y":761,"width":723,"height":13}},{"id":"45a548f3-2829-4b7d-9f05-189d6eb3c0f1","block_type":"box","text":"However, it faces major ongoing uncertainties or exposure to adverse business, financial,","page_number":232,"box":{"x":192,"y":777,"width":662,"height":12}},{"id":"44d7bb81-5211-454b-bfcf-09b2eb3ef55b","block_type":"box","text":"or economic conditions that could lead to the obligor’s inadequate capacity to meet its","page_number":232,"box":{"x":192,"y":793,"width":635,"height":12}},{"id":"5dd80816-9090-4027-837e-28e5eff791d4","block_type":"box","text":"financial commitments on the obligation.","page_number":232,"box":{"x":191,"y":808,"width":298,"height":12}},{"id":"643a7644-ccf3-4413-a059-429a747bf940","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but","page_number":232,"box":{"x":117,"y":831,"width":733,"height":12}},{"id":"04283b3a-d610-482f-8383-bfa174597a35","block_type":"box","text":"the obligor currently has the capacity to meet its financial commitments on the obligation.","page_number":232,"box":{"x":191,"y":847,"width":665,"height":12}},{"id":"2779e8fa-8941-444b-89e8-06d40dc45fac","block_type":"box","text":"Adverse business, financial, or economic conditions will likely impair the obligor’s capacity","page_number":232,"box":{"x":191,"y":862,"width":672,"height":12}},{"id":"95fec3de-b77d-449e-8a8c-5b6f39db430b","block_type":"box","text":"or willingness to meet its financial commitments on the obligation.","page_number":232,"box":{"x":192,"y":878,"width":491,"height":12}},{"id":"ef476d63-b797-4075-a874-264b8c09e3a8","block_type":"box","text":"A-5","page_number":232,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"f757fcb3-f072-4e6b-b633-6465a2b35ad1","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":232,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"3c6a4fc5-5cd1-43ca-ace5-863b3aca3c60","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon","page_number":233,"box":{"x":117,"y":87,"width":728,"height":12}},{"id":"12ba64de-a2ad-43c2-b93a-b82deba86daf","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":233,"box":{"x":191,"y":102,"width":667,"height":13}},{"id":"bb746dd4-f0ea-4146-aa0a-c2c64daa4f4e","block_type":"box","text":"commitments on the obligation. In the event of adverse business, financial, or economic","page_number":233,"box":{"x":192,"y":118,"width":656,"height":12}},{"id":"cceab094-1020-4de7-ad93-49845c5748d2","block_type":"box","text":"conditions, the obligor is not likely to have the capacity to meet its financial commitments","page_number":233,"box":{"x":192,"y":134,"width":662,"height":12}},{"id":"eda5f731-ad35-4d58-b8ae-d6c58a289c0b","block_type":"box","text":"on the obligation.","page_number":233,"box":{"x":192,"y":149,"width":132,"height":12}},{"id":"2578c97f-fedb-4143-8f53-3db5722c1fec","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is","page_number":233,"box":{"x":117,"y":172,"width":727,"height":12}},{"id":"7294ea15-c815-4d58-9fc5-b7d3400fcb82","block_type":"box","text":"used when a default has not yet occurred but S&P expects default to be a virtual certainty,","page_number":233,"box":{"x":192,"y":188,"width":675,"height":12}},{"id":"a52482f3-ccb0-4d06-bcd0-41a6caa73b85","block_type":"box","text":"regardless of the anticipated time to default.","page_number":233,"box":{"x":192,"y":203,"width":330,"height":12}},{"id":"8fe55b78-d2d7-460a-ba74-af17d535e534","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is","page_number":233,"box":{"x":117,"y":227,"width":735,"height":12}},{"id":"6ae63976-b707-4cc2-bdcd-96702d21d190","block_type":"box","text":"expected to have lower relative seniority or lower ultimate recovery compared with","page_number":233,"box":{"x":192,"y":242,"width":615,"height":12}},{"id":"ce48e32e-e475-40bc-9d1d-0670caa13927","block_type":"box","text":"obligations that are rated higher.","page_number":233,"box":{"x":192,"y":258,"width":245,"height":12}},{"id":"903a3782-99ce-4ec1-8827-2377a90fac2e","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":233,"box":{"x":117,"y":281,"width":717,"height":12}},{"id":"dd574584-5bda-4d26-8192-49144cb853e9","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not","page_number":233,"box":{"x":192,"y":296,"width":678,"height":12}},{"id":"588d96b5-9f6a-4815-8f14-c2946d805120","block_type":"box","text":"made on the date due, unless S&P believes that such payments will be made within five","page_number":233,"box":{"x":192,"y":312,"width":657,"height":12}},{"id":"f75a45c4-d2ea-49ff-9a7c-5202e0188363","block_type":"box","text":"business days in the absence of a stated grace period or within the earlier of the stated","page_number":233,"box":{"x":192,"y":327,"width":650,"height":12}},{"id":"1114b7f2-8489-4f62-aa58-a293e61c0a6e","block_type":"box","text":"grace period or 30 calendar days. The ‘D’ rating also will be used upon the filing of a","page_number":233,"box":{"x":191,"y":343,"width":630,"height":12}},{"id":"ec14f0fd-54e1-4468-bfb8-76fe61059399","block_type":"box","text":"bankruptcy petition or the taking of similar action and where default on an obligation is a","page_number":233,"box":{"x":192,"y":358,"width":657,"height":12}},{"id":"b4136522-6f9b-4011-a59f-579dd43b0db0","block_type":"box","text":"virtual certainty, for example due to automatic stay provisions. A rating on an obligation is","page_number":233,"box":{"x":191,"y":374,"width":668,"height":12}},{"id":"427f2ca7-3731-4896-b270-c4d4d5fd472b","block_type":"box","text":"lowered to ‘D’ if it is subject to a distressed debt restructuring.","page_number":233,"box":{"x":192,"y":389,"width":461,"height":12}},{"id":"cc3f0a49-fb2e-4c7d-ad08-27e7dc90c49e","block_type":"box","text":"* Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing","page_number":233,"box":{"x":143,"y":418,"width":705,"height":9}},{"id":"c159af93-33b4-4e4a-a51c-5411e89611f1","block_type":"box","text":"within the rating categories.","page_number":233,"box":{"x":170,"y":431,"width":162,"height":9}},{"id":"00179e54-8ea7-4025-9e34-7ee54d0cd113","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":233,"box":{"x":116,"y":458,"width":263,"height":12}},{"id":"0efce966-856e-419f-9240-b3f11eca7e9f","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s","page_number":233,"box":{"x":116,"y":487,"width":715,"height":12}},{"id":"8df32899-5d43-4dee-b49b-37e6586259a3","block_type":"box","text":"capacity to meet its financial commitments on the obligation is strong. Within this category,","page_number":233,"box":{"x":175,"y":502,"width":677,"height":12}},{"id":"31825efa-c98f-4f50-827e-8fe15d7d987c","block_type":"box","text":"certain obligations are designated with a plus sign (+). This indicates that the obligor’s capacity","page_number":233,"box":{"x":175,"y":518,"width":708,"height":12}},{"id":"34991558-be41-4e40-9a28-22b2fc4cbe72","block_type":"box","text":"to meet its financial commitments on these obligations is extremely strong.","page_number":233,"box":{"x":175,"y":533,"width":558,"height":12}},{"id":"51fa194f-8b53-4068-b165-466f9604092a","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of","page_number":233,"box":{"x":116,"y":556,"width":729,"height":12}},{"id":"97771544-0e53-4899-8610-2848d725c326","block_type":"box","text":"changes in circumstances and economic conditions than obligations in higher rating","page_number":233,"box":{"x":175,"y":571,"width":626,"height":12}},{"id":"fe590c89-dea5-49ad-b665-e5fd0bf7bc14","block_type":"box","text":"categories. However, the obligor’s capacity to meet its financial commitments on the obligation","page_number":233,"box":{"x":175,"y":587,"width":706,"height":12}},{"id":"052112bb-2780-4911-b708-647def10bcce","block_type":"box","text":"is satisfactory.","page_number":233,"box":{"x":176,"y":602,"width":110,"height":12}},{"id":"ac528be1-9472-4c62-b0f9-4b93745af435","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":233,"box":{"x":116,"y":624,"width":764,"height":13}},{"id":"089d5a85-fbe5-44b8-9272-a38a1b35fc9f","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s","page_number":233,"box":{"x":175,"y":640,"width":648,"height":12}},{"id":"432accd5-c043-4071-8657-7500e68a7a72","block_type":"box","text":"capacity to meet its financial commitments on the obligation.","page_number":233,"box":{"x":175,"y":655,"width":453,"height":13}},{"id":"a914feb4-1413-4bfc-9da4-45f33e01d8f8","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":233,"box":{"x":117,"y":678,"width":719,"height":12}},{"id":"6382c781-2047-493c-abfa-e737856591df","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments;","page_number":233,"box":{"x":175,"y":693,"width":653,"height":12}},{"id":"2028eef2-9bd1-4b61-b16e-41357e3ed476","block_type":"box","text":"however, it faces major ongoing uncertainties that could lead to the obligor’s inadequate","page_number":233,"box":{"x":176,"y":709,"width":652,"height":12}},{"id":"ac05ef54-5fdc-4f88-b5cf-42c2b0934816","block_type":"box","text":"capacity to meet its financial commitments.","page_number":233,"box":{"x":175,"y":724,"width":318,"height":12}},{"id":"909c3036-6798-436c-aec5-84cc861efd94","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":233,"box":{"x":117,"y":747,"width":754,"height":12}},{"id":"c807a3f6-5909-4a32-a2f7-cbd92c8eda5b","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":233,"box":{"x":175,"y":762,"width":661,"height":12}},{"id":"a94b58e6-2207-44fa-9846-b854d8f919c0","block_type":"box","text":"commitments on the obligation.","page_number":233,"box":{"x":175,"y":778,"width":231,"height":12}},{"id":"16c1c36b-db56-471d-a99f-bda1df183d23","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For","page_number":233,"box":{"x":117,"y":800,"width":684,"height":12}},{"id":"fb15982c-853f-4e29-ab5f-42443c7360d0","block_type":"box","text":"non-hybrid capital instruments, the ‘D’ rating category is used when payments on an obligation","page_number":233,"box":{"x":176,"y":815,"width":699,"height":12}},{"id":"ab887dcf-e33e-4c88-8568-bdd7c117b9b2","block_type":"box","text":"are not made on the date due, unless S&P believes that such payments will be made within","page_number":233,"box":{"x":175,"y":831,"width":684,"height":12}},{"id":"ceeede06-740d-4820-9f09-bf165dbd7522","block_type":"box","text":"any stated grace period. However, any stated grace period longer than five business days will","page_number":233,"box":{"x":175,"y":846,"width":700,"height":12}},{"id":"07ada046-1532-4f6f-9ab2-ce888263e15d","block_type":"box","text":"be treated as five business days. The ‘D’ rating also will be used upon the filing of a bankruptcy","page_number":233,"box":{"x":176,"y":862,"width":711,"height":12}},{"id":"5deb095a-2eff-4cee-b547-fee2beb1b473","block_type":"box","text":"petition or the taking of a similar action and where default on an obligation is a virtual certainty,","page_number":233,"box":{"x":176,"y":877,"width":706,"height":12}},{"id":"8c44f722-651c-42de-8946-5d25b9358d03","block_type":"box","text":"A-6","page_number":233,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"1b0f6fd0-e6a7-4515-8b0e-efe9dbb5edc8","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":233,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"698ae4bb-cfed-43f9-9014-d1b7d4120c57","block_type":"box","text":"for example due to automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is","page_number":234,"box":{"x":175,"y":87,"width":695,"height":12}},{"id":"9334136e-5a25-4853-b5ec-f05a1381e4f9","block_type":"box","text":"subject to a distressed debt restructuring.","page_number":234,"box":{"x":175,"y":103,"width":312,"height":12}},{"id":"e0af30bc-33ec-4ef3-aa2b-d050c8cabd18","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":234,"box":{"x":117,"y":134,"width":456,"height":12}},{"id":"71595af8-3521-4fd4-9135-080647dd468d","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access","page_number":234,"box":{"x":116,"y":165,"width":766,"height":12}},{"id":"1e4d17be-b709-4add-9721-edcd5b8dde74","block_type":"box","text":"risks unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with","page_number":234,"box":{"x":117,"y":180,"width":748,"height":12}},{"id":"f4395c78-5095-4f90-80e0-767141d8133e","block_type":"box","text":"an original maturity of more than three years will most likely receive a long-term debt rating. In","page_number":234,"box":{"x":116,"y":196,"width":703,"height":12}},{"id":"0994708b-b548-4ba3-b742-59f9d24dccc6","block_type":"box","text":"determining which type of rating, if any, to assign, S&P’s analysis will review the following","page_number":234,"box":{"x":116,"y":211,"width":668,"height":12}},{"id":"55540d99-8ac2-46cd-823d-fbf851031277","block_type":"box","text":"considerations:","page_number":234,"box":{"x":116,"y":227,"width":118,"height":9}},{"id":"ee1ebcb4-66e6-4892-9a28-3690cc7620c3","block_type":"box","text":"• Amortization schedule—the larger the final maturity relative to other maturities, the more likely","page_number":234,"box":{"x":150,"y":258,"width":736,"height":12}},{"id":"44c9bb7a-9f1d-4314-a14c-de3b004c3e03","block_type":"box","text":"it will be treated as a note; and","page_number":234,"box":{"x":184,"y":273,"width":232,"height":11}},{"id":"2aca93d5-07d6-4b45-bc81-858fbaf76ff0","block_type":"box","text":"• Source of payment—the more dependent the issue is on the market for its refinancing, the","page_number":234,"box":{"x":150,"y":296,"width":709,"height":12}},{"id":"1040da5e-9f6f-416a-9855-48c909151743","block_type":"box","text":"more likely it will be treated as a note.","page_number":234,"box":{"x":184,"y":312,"width":284,"height":12}},{"id":"5d20c227-b8f5-4328-97dc-bdce837fd5d4","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":234,"box":{"x":116,"y":343,"width":470,"height":12}},{"id":"f653e276-8d20-430f-8229-e118eb4347d8","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":234,"box":{"x":116,"y":374,"width":740,"height":12}},{"id":"c22746c2-90d4-4047-8f4b-4131f9dbdae9","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":234,"box":{"x":175,"y":389,"width":445,"height":12}},{"id":"5603c1a4-0789-4694-a000-fb90c1dd5b7a","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial","page_number":234,"box":{"x":116,"y":413,"width":757,"height":12}},{"id":"d05f38bd-3a02-4e15-b421-ec68f9c5c740","block_type":"box","text":"and economic changes over the term of the notes.","page_number":234,"box":{"x":175,"y":428,"width":379,"height":12}},{"id":"45eecea1-313b-4962-8003-19fd83e03bd1","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":234,"box":{"x":116,"y":451,"width":432,"height":12}},{"id":"30826b0e-43dc-4e68-8c2a-e66b9a276b04","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":234,"box":{"x":117,"y":475,"width":699,"height":12}},{"id":"1f722b47-311c-4fc9-b004-8404545ce076","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where","page_number":234,"box":{"x":176,"y":490,"width":670,"height":12}},{"id":"26d231c5-0eaa-409c-9768-484359db9d46","block_type":"box","text":"default on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":234,"box":{"x":175,"y":506,"width":674,"height":12}},{"id":"dff401d2-14a9-4a38-8b7d-44e39bb21063","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":234,"box":{"x":117,"y":537,"width":498,"height":12}},{"id":"3fde6b10-a8ae-4287-be46-3ac64e962563","block_type":"box","text":"Fitch Ratings publishes opinions on a variety of scales. The most common of these are credit ratings,","page_number":234,"box":{"x":117,"y":568,"width":756,"height":12}},{"id":"01138756-e0c7-477f-992a-16f684a981a0","block_type":"box","text":"but the agency also publishes ratings, scores and other relative opinions relating to financial or","page_number":234,"box":{"x":117,"y":583,"width":706,"height":12}},{"id":"3e35ed57-0f37-4cab-803c-c5a3825680db","block_type":"box","text":"operational strength. For example, Fitch also provides specialized ratings of servicers of residential","page_number":234,"box":{"x":116,"y":599,"width":740,"height":12}},{"id":"a441fe62-be07-4a80-98b5-85921abf4aad","block_type":"box","text":"and commercial mortgages, asset managers and funds. In each case, users should refer to the","page_number":234,"box":{"x":116,"y":614,"width":711,"height":12}},{"id":"96346da7-edf4-4e3b-af3a-5c6622082432","block_type":"box","text":"definitions of each individual scale for guidance on the dimensions of risk covered in each assessment.","page_number":234,"box":{"x":116,"y":630,"width":769,"height":12}},{"id":"7d4b9e18-a467-4979-af51-883099bfc803","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet","page_number":234,"box":{"x":117,"y":661,"width":702,"height":12}},{"id":"f9886f18-5d67-43fc-a705-09b4c9c70a4c","block_type":"box","text":"financial commitments, such as interest, preferred dividends, repayment of principal, insurance claims","page_number":234,"box":{"x":116,"y":676,"width":756,"height":12}},{"id":"8bc5dd6b-3e85-4b2d-b1c2-636af3496e45","block_type":"box","text":"or counterparty obligations. Credit ratings relating to securities and obligations of an issuer can include","page_number":234,"box":{"x":116,"y":692,"width":761,"height":12}},{"id":"9d61f830-f451-4a60-baa4-c84828b6b8b4","block_type":"box","text":"a recovery expectation. Credit ratings are used by investors as indications of the likelihood of receiving","page_number":234,"box":{"x":116,"y":707,"width":761,"height":12}},{"id":"cdb54ba8-de7d-486c-95dd-3ebf5dedf5ab","block_type":"box","text":"the money owed to them in accordance with the terms on which they invested. The agency’s credit","page_number":234,"box":{"x":116,"y":723,"width":733,"height":12}},{"id":"11d85ed2-c63b-465b-831b-266f3c15c1a5","block_type":"box","text":"ratings cover the global spectrum of corporate, sovereign financial, bank, insurance, and public finance","page_number":234,"box":{"x":117,"y":738,"width":763,"height":12}},{"id":"b5ee469d-d7b8-481b-a628-7db82ced1537","block_type":"box","text":"entities (including supranational and sub-national entities) and the securities or other obligations they","page_number":234,"box":{"x":116,"y":754,"width":749,"height":12}},{"id":"0bae3bde-3dab-4d7d-a56a-d07ffa27be40","block_type":"box","text":"issue, as well as structured finance securities backed by receivables or other financial assets.","page_number":234,"box":{"x":117,"y":769,"width":692,"height":12}},{"id":"5f90ec08-8eaa-4db3-b1f6-b7ad1f925efb","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as","page_number":234,"box":{"x":116,"y":800,"width":718,"height":12}},{"id":"1dd74d38-612c-4fff-971a-30836adb4d86","block_type":"box","text":"shorthand to describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative","page_number":234,"box":{"x":116,"y":816,"width":732,"height":12}},{"id":"9b6a2f4a-cc72-401a-bf00-3a20b57b3505","block_type":"box","text":"grade). The terms investment grade and speculative grade are market conventions and do not imply","page_number":234,"box":{"x":116,"y":831,"width":749,"height":12}},{"id":"91b88e6f-a51a-45a3-a7ca-bb60bd58ab05","block_type":"box","text":"any recommendation or endorsement of a specific security for investment purposes. Investment grade","page_number":234,"box":{"x":116,"y":847,"width":764,"height":12}},{"id":"f27f9e9d-06c6-4221-831f-73329651a4f9","block_type":"box","text":"categories indicate relatively low to moderate credit risk, while ratings in the speculative categories","page_number":234,"box":{"x":116,"y":862,"width":737,"height":12}},{"id":"28a642c0-4558-4fb7-81c6-66e5fc385879","block_type":"box","text":"either signal a higher level of credit risk or that a default has already occurred.","page_number":234,"box":{"x":116,"y":878,"width":584,"height":12}},{"id":"2d61e452-4f4d-4b22-a98c-747372ccb6db","block_type":"box","text":"A-7","page_number":234,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"c53db725-de63-4d96-a6f4-4a099742a604","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":234,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"6028895c-f63a-4c2b-ac4c-e57db358422c","block_type":"box","text":"For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not","page_number":235,"box":{"x":117,"y":87,"width":750,"height":12}},{"id":"e335f78d-ad0f-4c10-b477-fa7e81db57b1","block_type":"box","text":"and have not been rated on its web page. Such issues are also denoted as ‘NR’.","page_number":235,"box":{"x":116,"y":102,"width":603,"height":13}},{"id":"74676788-1415-4552-b996-9be3c05d9dbd","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk","page_number":235,"box":{"x":117,"y":132,"width":770,"height":12}},{"id":"b38049b9-0931-4469-909f-b352c18834d8","block_type":"box","text":"and are not predictive of a specific frequency of default or loss. For information about the historical","page_number":235,"box":{"x":116,"y":147,"width":735,"height":12}},{"id":"17da4e19-ab9d-46f1-a725-e6bf22718982","block_type":"box","text":"performance of ratings please refer to Fitch’s Ratings Transition and Default studies which detail the","page_number":235,"box":{"x":117,"y":163,"width":747,"height":12}},{"id":"0403cb29-19b0-43a3-8ba8-18cae8c9785a","block_type":"box","text":"historical default rates and their meaning. The European Securities and Markets Authority also","page_number":235,"box":{"x":117,"y":178,"width":705,"height":12}},{"id":"195c3a01-bfed-4357-8082-329a1bca1fd0","block_type":"box","text":"maintains a central repository of historical default rates.","page_number":235,"box":{"x":117,"y":194,"width":415,"height":12}},{"id":"8f7215b7-9618-4ce9-9936-9282e91cf37e","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not","page_number":235,"box":{"x":117,"y":223,"width":756,"height":12}},{"id":"77caada4-4294-4339-93e6-d65d8f3caad5","block_type":"box","text":"deal with the risk of a market value loss on a rated security due to changes in interest rates, liquidity","page_number":235,"box":{"x":116,"y":239,"width":747,"height":12}},{"id":"8a797d2e-e1e9-404f-8677-a82b62816804","block_type":"box","text":"and other market considerations. However, in terms of payment obligation on the rated liability, market","page_number":235,"box":{"x":116,"y":254,"width":765,"height":12}},{"id":"9f8c7955-da30-4c4c-b815-1c60a86fb86d","block_type":"box","text":"risk may be considered to the extent that it influences the ability of an issuer to pay upon a","page_number":235,"box":{"x":117,"y":270,"width":674,"height":12}},{"id":"444130f5-bb4d-4f40-a142-18a147bb49d3","block_type":"box","text":"commitment.","page_number":235,"box":{"x":116,"y":285,"width":101,"height":10}},{"id":"65230523-e51f-4b64-a06a-e5d42ab0594b","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other","page_number":235,"box":{"x":117,"y":314,"width":709,"height":12}},{"id":"98d86734-afc0-4c24-bbcb-d86ecfe95995","block_type":"box","text":"conditionality of the obligation to pay upon a commitment (for example, in the case of index-linked","page_number":235,"box":{"x":116,"y":330,"width":731,"height":12}},{"id":"09d1b562-c1f6-4285-a3c6-888a467f8550","block_type":"box","text":"bonds).","page_number":235,"box":{"x":117,"y":345,"width":59,"height":12}},{"id":"559ad357-7a6f-47d9-99c2-052c67fe753e","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency","page_number":235,"box":{"x":117,"y":375,"width":725,"height":12}},{"id":"9a924952-85ac-4afe-b80a-496b9c4dbd88","block_type":"box","text":"typically rates to the likelihood of non-payment or default in accordance with the terms of that","page_number":235,"box":{"x":116,"y":390,"width":695,"height":12}},{"id":"f33ce797-33d2-47b4-ae20-b8fdff2d8eba","block_type":"box","text":"instrument’s documentation. In limited cases, Fitch may include additional considerations (i.e. rate to a","page_number":235,"box":{"x":117,"y":406,"width":764,"height":12}},{"id":"98f9e454-eb76-4e48-a4bb-d3dfe061e480","block_type":"box","text":"higher or lower standard than that implied in the obligation’s documentation).","page_number":235,"box":{"x":117,"y":421,"width":573,"height":12}},{"id":"83637929-9c53-47d3-9770-3f19b6eb699c","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or","page_number":235,"box":{"x":116,"y":450,"width":719,"height":12}},{"id":"2cdece25-7972-41b3-aa0a-7cc2accf33b4","block_type":"box","text":"certain note issuance programs or for private ratings. In this case the rating is not published, but only","page_number":235,"box":{"x":116,"y":466,"width":753,"height":12}},{"id":"21f07306-7694-46eb-8515-c5edee063dcd","block_type":"box","text":"provided to the issuer or its agents in the form of a rating letter.","page_number":235,"box":{"x":117,"y":481,"width":472,"height":12}},{"id":"02cabdd6-cd57-46a3-8e28-ce45fb550d5a","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope,","page_number":235,"box":{"x":116,"y":511,"width":702,"height":12}},{"id":"60c7ab1c-b918-4f67-99ee-e42bd4c530af","block_type":"box","text":"including interest strips and return of principal or in other forms of opinions such as credit opinions or","page_number":235,"box":{"x":117,"y":526,"width":751,"height":12}},{"id":"07f67c81-f4e3-4a60-977d-d0d33aa2a91a","block_type":"box","text":"rating assessment services. Credit opinions are either a notch- or category-specific view using the","page_number":235,"box":{"x":117,"y":542,"width":731,"height":12}},{"id":"06b43555-aca2-42c7-9b89-e35308107443","block_type":"box","text":"primary rating scale and omit one or more characteristics of a full rating or meet them to a different","page_number":235,"box":{"x":117,"y":557,"width":736,"height":12}},{"id":"03783817-dfe7-413d-93fc-bcffc2e14483","block_type":"box","text":"standard. Credit opinions will be indicated using a lower case letter symbol combined with either an ‘*’","page_number":235,"box":{"x":116,"y":573,"width":760,"height":12}},{"id":"1f3ab003-cf39-4c2b-94b8-e27c0050bb54","block_type":"box","text":"(e.g. ‘bbb+*’) or (cat) suffix to denote the opinion status. Credit opinions will be point-in-time typically","page_number":235,"box":{"x":117,"y":588,"width":748,"height":12}},{"id":"a58ae27f-f520-4c8c-a257-a746a8b109bf","block_type":"box","text":"but may be monitored if the analytical group believes information will be sufficiently available. Rating","page_number":235,"box":{"x":117,"y":604,"width":748,"height":12}},{"id":"79c6f2bd-60f8-4932-8a72-fb1340b45215","block_type":"box","text":"assessment services are a notch-specific view using the primary rating scale of how an existing or","page_number":235,"box":{"x":116,"y":619,"width":733,"height":12}},{"id":"37a3b043-af0c-48b0-bdd1-62bc7e5a9841","block_type":"box","text":"potential rating may be changed by a given set of hypothetical circumstances. While credit opinions","page_number":235,"box":{"x":117,"y":635,"width":742,"height":12}},{"id":"2ea8123c-6802-4604-a226-448abdb08561","block_type":"box","text":"and rating assessment services are point-in-time and are not monitored, they may have a directional","page_number":235,"box":{"x":116,"y":650,"width":750,"height":12}},{"id":"65cf8994-1f4a-4acd-ba4b-d9b7f09e7c0e","block_type":"box","text":"watch or outlook assigned, which can signify the trajectory of the credit profile.","page_number":235,"box":{"x":116,"y":666,"width":579,"height":12}},{"id":"6560ef54-a89c-4d14-86bd-9269bdece7e4","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":235,"box":{"x":117,"y":695,"width":629,"height":12}},{"id":"d1faec4b-a3d0-432c-978d-a0f52b0db6a3","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative","page_number":235,"box":{"x":117,"y":724,"width":677,"height":12}},{"id":"02facd13-6044-446e-855b-c2ceb2cdac85","block_type":"box","text":"vulnerability to default on an ordinal scale. In addition, for financial obligations in corporate finance, a","page_number":235,"box":{"x":116,"y":740,"width":746,"height":12}},{"id":"299cd45c-1275-4524-a589-4858a80b9baf","block_type":"box","text":"measure of recovery given default on that liability is also included in the rating assessment. This","page_number":235,"box":{"x":117,"y":755,"width":711,"height":12}},{"id":"c22209c9-8162-43c4-8137-ae92d53c6b0a","block_type":"box","text":"notably applies to covered bonds ratings, which incorporate both an indication of the probability of","page_number":235,"box":{"x":117,"y":771,"width":725,"height":12}},{"id":"12347f60-2094-4a57-985a-40cd95bf7360","block_type":"box","text":"default and of the recovery given a default of this debt instrument. On the contrary, Ratings of","page_number":235,"box":{"x":116,"y":786,"width":695,"height":12}},{"id":"bd94606d-fc7d-4085-95d0-9420253e2b66","block_type":"box","text":"debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":235,"box":{"x":116,"y":802,"width":636,"height":12}},{"id":"6c7a10d2-d79b-41a5-8cc5-a1bf75f5a7b0","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average","page_number":235,"box":{"x":116,"y":831,"width":750,"height":12}},{"id":"24f86ff5-b939-40f2-b9ab-ecfb0a39f30b","block_type":"box","text":"recovery. Individual obligations can be assigned ratings higher, lower, or the same as that entity’s","page_number":235,"box":{"x":117,"y":847,"width":728,"height":12}},{"id":"37e8125b-6f98-48c8-99d4-649e77bf8609","block_type":"box","text":"issuer rating or issuer default rating (“IDR”), based on their relative ranking, relative vulnerability to","page_number":235,"box":{"x":117,"y":862,"width":733,"height":12}},{"id":"cc395edb-abbd-4117-988c-1e8405598527","block_type":"box","text":"default or based on explicit Recovery Ratings.","page_number":235,"box":{"x":116,"y":877,"width":347,"height":13}},{"id":"e3663268-03fc-4026-b59d-ff8ed129c1cf","block_type":"box","text":"A-8","page_number":235,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"4c930a0b-61f0-4a56-b8d8-48aeee446829","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":235,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"7459de82-a1fa-4a6a-a13e-6bd7ec0b04d0","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower,","page_number":236,"box":{"x":116,"y":87,"width":756,"height":12}},{"id":"802a2b71-ab4f-4a5b-a11f-7f7c359a04ee","block_type":"box","text":"or the same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an","page_number":236,"box":{"x":116,"y":102,"width":766,"height":13}},{"id":"4036e8e9-51d4-4357-b454-ff8aca434d55","block_type":"box","text":"IDR. At the lower end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to","page_number":236,"box":{"x":117,"y":118,"width":756,"height":12}},{"id":"a220ad56-82ef-45da-b046-0f8848e4e8d6","block_type":"box","text":"complement issuer and obligation ratings.","page_number":236,"box":{"x":116,"y":134,"width":315,"height":12}},{"id":"9f7390f8-0402-4062-912d-4d147099d348","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":236,"box":{"x":117,"y":165,"width":412,"height":12}},{"id":"dce20af7-0909-4b9e-b2c8-484be3ade768","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are","page_number":236,"box":{"x":116,"y":196,"width":731,"height":12}},{"id":"32a8b118-8198-4a59-9cda-f33fa9be9d00","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments.","page_number":236,"box":{"x":175,"y":211,"width":700,"height":12}},{"id":"1f314ed1-ced8-4f53-af26-983405283eb3","block_type":"box","text":"This capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":236,"box":{"x":175,"y":227,"width":586,"height":12}},{"id":"3db74cb2-e744-47ff-b02a-9ca8668a1f99","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate","page_number":236,"box":{"x":116,"y":250,"width":765,"height":12}},{"id":"b1cd6483-cc10-46df-9f41-b96cd477f676","block_type":"box","text":"very strong capacity for payment of financial commitments. This capacity is not significantly","page_number":236,"box":{"x":175,"y":265,"width":682,"height":12}},{"id":"ab054225-0e46-4e43-8884-4793418bee6b","block_type":"box","text":"vulnerable to foreseeable events.","page_number":236,"box":{"x":175,"y":281,"width":252,"height":9}},{"id":"30042380-1f73-4068-9419-0ab95f17e3e6","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment","page_number":236,"box":{"x":116,"y":304,"width":767,"height":12}},{"id":"7af786e8-52eb-4153-bc86-292964382bdc","block_type":"box","text":"of financial commitments is considered strong. This capacity may, nevertheless, be more","page_number":236,"box":{"x":175,"y":320,"width":665,"height":12}},{"id":"8ef4f7a8-f7b2-4175-9d9a-e7194b1d97ec","block_type":"box","text":"vulnerable to adverse business or economic conditions than is the case for higher ratings.","page_number":236,"box":{"x":175,"y":335,"width":671,"height":12}},{"id":"0c1c8954-6248-4bfc-95bb-5614ed6995b8","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low.","page_number":236,"box":{"x":117,"y":358,"width":739,"height":12}},{"id":"e88afa15-334f-49e3-b11c-2ae924089287","block_type":"box","text":"The capacity for payment of financial commitments is considered adequate, but adverse","page_number":236,"box":{"x":175,"y":374,"width":659,"height":12}},{"id":"2f2613eb-f396-47a1-bd6b-ca9200f1d4a6","block_type":"box","text":"business or economic conditions are more likely to impair this capacity.","page_number":236,"box":{"x":176,"y":389,"width":532,"height":12}},{"id":"74a84fde-8554-4096-91e7-59cbe13970da","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, particularly in the event","page_number":236,"box":{"x":117,"y":413,"width":769,"height":12}},{"id":"e7c75fb3-3ab8-454e-9620-2ff7524a2714","block_type":"box","text":"of adverse changes in business or economic conditions over time; however, business or","page_number":236,"box":{"x":175,"y":428,"width":659,"height":12}},{"id":"454d2080-5eb3-4776-8ff7-1097356dd010","block_type":"box","text":"financial alternatives may be available to allow financial commitments to be met.","page_number":236,"box":{"x":175,"y":444,"width":600,"height":12}},{"id":"7142ea0c-fa68-4018-95ec-76b5fb751bf0","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material credit risk is present.","page_number":236,"box":{"x":117,"y":467,"width":603,"height":12}},{"id":"1b14be83-9e1c-4145-95a9-74ff8af08cc7","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present.","page_number":236,"box":{"x":117,"y":490,"width":681,"height":12}},{"id":"90d520d9-ca60-41e4-a23a-b2f7056db0c8","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk.","page_number":236,"box":{"x":117,"y":513,"width":675,"height":12}},{"id":"20b402db-c147-43ca-93c3-12ecd31b29ed","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk.","page_number":236,"box":{"x":117,"y":537,"width":746,"height":12}},{"id":"f23ab36c-769a-4316-bce0-df9d85102281","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating","page_number":236,"box":{"x":116,"y":568,"width":765,"height":12}},{"id":"bbb34537-c046-47db-b3fc-c82f2d27554d","block_type":"box","text":"to denote relative status within major rating categories.","page_number":236,"box":{"x":116,"y":583,"width":411,"height":12}},{"id":"da8540b3-5178-4ef4-b7cf-af3c232bc29d","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a","page_number":236,"box":{"x":117,"y":614,"width":755,"height":12}},{"id":"f4c1bd8c-81d0-4e40-b243-9a0c3281dbc2","block_type":"box","text":"rating level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For","page_number":236,"box":{"x":117,"y":630,"width":745,"height":12}},{"id":"2612f26e-2b75-431a-ad5f-bf1ed11f1b23","block_type":"box","text":"the short-term rating category of ‘F1’, a ‘+’ may be appended.","page_number":236,"box":{"x":116,"y":645,"width":461,"height":12}},{"id":"904f2665-1b3f-4676-9c1a-87190216dc8e","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":236,"box":{"x":117,"y":676,"width":629,"height":12}},{"id":"8a8473d3-291f-441c-bf8b-328ceadae52c","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of","page_number":236,"box":{"x":116,"y":707,"width":760,"height":12}},{"id":"601ce049-6c48-4d34-bd58-060e882230f9","block_type":"box","text":"the rated entity and relates to the capacity to meet financial obligations in accordance with the","page_number":236,"box":{"x":116,"y":723,"width":696,"height":12}},{"id":"897d106c-93e0-44e7-bd8b-77905c1e08e1","block_type":"box","text":"documentation governing the relevant obligation. Short-term deposit ratings may be adjusted for loss","page_number":236,"box":{"x":116,"y":738,"width":748,"height":12}},{"id":"446d0fea-51b3-46af-97e5-2c237512c883","block_type":"box","text":"severity. Short-term ratings are assigned to obligations whose initial maturity is viewed as “short term”","page_number":236,"box":{"x":116,"y":754,"width":755,"height":12}},{"id":"fea9ca87-bc9a-4e2c-9558-3c3fc53936a2","block_type":"box","text":"based on market convention. 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The Guidelines include “climate and decarbonization”","page_number":238,"box":{"x":117,"y":615,"width":741,"height":12}},{"id":"22e94222-b917-4a51-8854-9ed3df7f882b","block_type":"box","text":"guidelines which apply to the Funds listed in Appendix A, if any.","page_number":238,"box":{"x":116,"y":631,"width":477,"height":12}},{"id":"ba88fbc2-795a-4276-b158-62f6c7391a39","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy","page_number":238,"box":{"x":117,"y":661,"width":714,"height":12}},{"id":"e1dd4e4b-e400-4009-9562-4060d6c61cf5","block_type":"box","text":"issues in respect of securities held by each such Fund (or may refrain from voting) in accordance with","page_number":238,"box":{"x":117,"y":677,"width":753,"height":12}},{"id":"94e15c1a-8ae8-45bf-9670-c66756d9aad0","block_type":"box","text":"the Guidelines.","page_number":238,"box":{"x":116,"y":692,"width":110,"height":10}},{"id":"bae833fb-c51e-451a-a3de-4c0626cf1794","block_type":"box","text":"Conflicts Management","page_number":238,"box":{"x":116,"y":723,"width":179,"height":12}},{"id":"174bba3b-15c7-4c4f-9f7a-eeeb15d78293","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to","page_number":238,"box":{"x":117,"y":753,"width":729,"height":12}},{"id":"30ddebeb-0f6f-4bbc-96a8-ea7da2576789","block_type":"box","text":"prevent undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of","page_number":238,"box":{"x":117,"y":769,"width":714,"height":12}},{"id":"9fb2d7c4-d5c9-4dcb-9897-becb4ed2586e","block_type":"box","text":"interest in the exercise of proxy voting responsibilities. Potential material conflicts, and the resultant","page_number":238,"box":{"x":117,"y":784,"width":736,"height":12}},{"id":"354691f2-a1fe-4b41-a693-df26dbeffe12","block_type":"box","text":"potential for undue influence, might be due to a relationship between the investee company (or any","page_number":238,"box":{"x":117,"y":800,"width":734,"height":12}},{"id":"c0a88977-0940-4b8f-a01c-ce3b69ccc7d9","block_type":"box","text":"shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates or employees,","page_number":238,"box":{"x":116,"y":815,"width":752,"height":12}},{"id":"d45f0fd5-140a-4fd3-8dd9-0f9fce1cd1ff","block_type":"box","text":"or a Fund or a Fund’s affiliates. BlackRock has taken certain steps to mitigate potential conflicts, which","page_number":238,"box":{"x":116,"y":831,"width":767,"height":12}},{"id":"f7e5cf32-e50b-4628-bb22-4ec820837443","block_type":"box","text":"are outlined in detail in the Guidelines. In mitigating conflicts, BAIS will adhere to the Guidelines.","page_number":238,"box":{"x":116,"y":846,"width":719,"height":12}},{"id":"1149c676-0d63-42ae-85e7-1de400da3aaa","block_type":"box","text":"BlackRock","page_number":238,"box":{"x":117,"y":878,"width":89,"height":9}},{"id":"68541dca-156b-4c12-8409-8afef06d4d01","block_type":"box","text":"Public Page 1 of 3","page_number":238,"box":{"x":488,"y":878,"width":400,"height":12}},{"id":"f34c955d-d632-4d5d-87d3-8d1b9e54a2de","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":238,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"3f7dfbe9-47ce-45b1-a768-7c426b1bf36d","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":239,"box":{"x":380,"y":87,"width":508,"height":12}},{"id":"74d64a80-ec24-424d-8b2f-2374248544ba","block_type":"box","text":"In certain instances, BAIS will engage an independent third-party voting service provider to make proxy","page_number":239,"box":{"x":117,"y":118,"width":770,"height":12}},{"id":"8a8fde6c-8318-46bb-a521-982ee28d20bc","block_type":"box","text":"voting recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy","page_number":239,"box":{"x":116,"y":134,"width":709,"height":12}},{"id":"a5632947-35bd-4a4a-a645-62e071fea2d5","block_type":"box","text":"regulatory compliance requirements, or as may be otherwise required by applicable law.","page_number":239,"box":{"x":117,"y":149,"width":658,"height":12}},{"id":"418afee6-31bd-4c25-87be-25c3283f68b4","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be","page_number":239,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"1184a4dc-e37a-4d58-b490-a443bb70599c","block_type":"box","text":"voted and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary","page_number":239,"box":{"x":116,"y":196,"width":727,"height":12}},{"id":"c1ab9d62-e39f-4247-a811-7d295c647d5d","block_type":"box","text":"responsibility to act in clients’ financial interests. The Guidelines set forth BlackRock’s approach to","page_number":239,"box":{"x":117,"y":211,"width":733,"height":12}},{"id":"2860c230-a9db-4e92-8a97-175868fa18ce","block_type":"box","text":"recalling securities on loan in connection with proxy voting.","page_number":239,"box":{"x":117,"y":227,"width":440,"height":12}},{"id":"07322277-e192-4cc7-83ce-1c5c4997513d","block_type":"box","text":"Reports to the Board","page_number":239,"box":{"x":117,"y":258,"width":171,"height":11}},{"id":"9f3334c5-1f7e-45ed-8163-7350d8dcd48e","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process","page_number":239,"box":{"x":117,"y":289,"width":767,"height":12}},{"id":"567f7af8-ac09-4206-9f23-7e24a26f7def","block_type":"box","text":"as applicable to the Funds covered by this policy in the preceding year together with a representation","page_number":239,"box":{"x":116,"y":304,"width":756,"height":12}},{"id":"c0497a40-5aa7-4529-92c4-3fc0dc4f1ddf","block_type":"box","text":"that all votes were in accordance with the Guidelines and (2) any material changes to the Guidelines,","page_number":239,"box":{"x":116,"y":320,"width":755,"height":12}},{"id":"e34de82d-e4aa-4b5b-827b-81c4d4d3ad57","block_type":"box","text":"including material changes to conflicts management practices, that have not previously been reported.","page_number":239,"box":{"x":117,"y":335,"width":763,"height":12}},{"id":"eb0775bd-a3b6-47af-92a8-808446670be3","block_type":"box","text":"BlackRock","page_number":239,"box":{"x":117,"y":878,"width":89,"height":9}},{"id":"8b4b4348-486e-47f1-be7c-32d5a88a8f64","block_type":"box","text":"Public Page 2 of 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We are committed to building strong relationships through","page_number":244,"box":{"x":117,"y":287,"width":736,"height":12}},{"id":"04bf55d6-03fd-4ada-8eea-898b13357176","block_type":"box","text":"constructive, ongoing dialogue with the boards and executive management of the companies in which","page_number":244,"box":{"x":116,"y":303,"width":760,"height":12}},{"id":"3ff96dc9-1780-422f-927e-30246bde42df","block_type":"box","text":"our clients are invested.","page_number":244,"box":{"x":116,"y":318,"width":182,"height":10}},{"id":"beaf8195-a7c8-47a9-9f1a-cfb2f9ab6a0b","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":244,"box":{"x":259,"y":356,"width":486,"height":9}},{"id":"18808f8b-034b-4b3f-b9f7-316bd76afa72","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management","page_number":244,"box":{"x":117,"y":386,"width":764,"height":12}},{"id":"023b24a7-0ae7-4c4f-aa84-a7bd2a6f8441","block_type":"box","text":"Group and manages BlackRock’s stewardship engagement and voting on behalf of clients invested in","page_number":244,"box":{"x":117,"y":402,"width":758,"height":12}},{"id":"b0db3d71-e3a3-4782-b8b4-439ae809cb8e","block_type":"box","text":"active strategies globally. BAIS is also responsible for engagement with issuers in index fixed income","page_number":244,"box":{"x":116,"y":417,"width":755,"height":12}},{"id":"be1f6efb-0517-48dd-b5c5-35ce5da95607","block_type":"box","text":"strategies, where appropriate. Our activities are informed by these Global Engagement and Voting","page_number":244,"box":{"x":116,"y":433,"width":735,"height":12}},{"id":"c1d9414c-359c-4c4b-b4ec-85c00f232571","block_type":"box","text":"Guidelines (the “Guidelines”) and insights from active investment analysts and portfolio managers, with","page_number":244,"box":{"x":117,"y":448,"width":768,"height":12}},{"id":"5ffc6572-ba5b-4d47-819f-1f9311ca6667","block_type":"box","text":"whom we work closely in engaging companies and voting at shareholder meetings.","page_number":244,"box":{"x":116,"y":464,"width":622,"height":12}},{"id":"1cb3b6d9-7411-4ee5-8f50-52d9b5b7287b","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within","page_number":244,"box":{"x":117,"y":494,"width":680,"height":12}},{"id":"a4502ee3-ddeb-4902-b35f-82ab42059741","block_type":"box","text":"fundamental active investing.","page_number":244,"box":{"x":116,"y":509,"width":215,"height":13}},{"id":"f6156426-b617-4791-905e-806f029f2842","block_type":"box","text":"3","page_number":244,"box":{"x":333,"y":510,"width":5,"height":6}},{"id":"2dbbf107-6199-4f56-a3af-e6c80744d06f","block_type":"box","text":"Through direct dialogue with company leadership, we seek to","page_number":244,"box":{"x":339,"y":510,"width":466,"height":12}},{"id":"e5f37794-bcd5-440a-8ecf-127ee3d05709","block_type":"box","text":"understand their businesses and how they manage risks and opportunities to deliver durable, risk","page_number":244,"box":{"x":117,"y":525,"width":727,"height":12}},{"id":"15ea05d9-d9e5-4ae1-bbc3-8def3daf8e27","block_type":"box","text":"adjusted financial returns. Portfolio managers and stewardship specialists may engage jointly or","page_number":244,"box":{"x":116,"y":540,"width":716,"height":13}},{"id":"9b1aad82-1d64-4903-9d10-826f14b7b119","block_type":"box","text":"independently on material corporate governance matters. Our discussions focus on topics relevant to a","page_number":244,"box":{"x":117,"y":556,"width":769,"height":12}},{"id":"623e8555-84c3-4e1b-b7b1-f3edaf9a0987","block_type":"box","text":"company’s success over time, including governance and leadership, corporate strategy, capital","page_number":244,"box":{"x":116,"y":572,"width":711,"height":12}},{"id":"386fb9e2-b710-4f24-81b1-4cfe2bf64d4c","block_type":"box","text":"structure and financial performance, operations and material sustainability-related risks, as well as","page_number":244,"box":{"x":116,"y":587,"width":734,"height":12}},{"id":"60573544-7e77-4f44-98ee-1ed623df1247","block_type":"box","text":"macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are","page_number":244,"box":{"x":117,"y":603,"width":717,"height":12}},{"id":"ffd7e141-5403-4f0f-b7cf-682e29c130eb","block_type":"box","text":"generally supportive of management teams that have a track record of financial value creation. We aim","page_number":244,"box":{"x":116,"y":618,"width":770,"height":12}},{"id":"3f9cd76d-4b37-4c16-ac2a-772d1b189459","block_type":"box","text":"to build and maintain strong relationships with company leadership based on open dialogue and","page_number":244,"box":{"x":116,"y":634,"width":717,"height":12}},{"id":"463c0333-a378-416c-a0de-42419ebcbc08","block_type":"box","text":"mutual respect.","page_number":244,"box":{"x":117,"y":649,"width":118,"height":12}},{"id":"7825ff4a-9204-4839-b672-dd778ce8f686","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the","page_number":244,"box":{"x":117,"y":679,"width":744,"height":12}},{"id":"a146b6bf-a9e6-4bd1-9567-85b098dd9e02","block_type":"box","text":"latitude each portfolio manager has to make independent voting decisions on their holdings. For","page_number":244,"box":{"x":117,"y":695,"width":711,"height":12}},{"id":"9de5552b-13be-4396-8986-ae5f83aa0388","block_type":"box","text":"example, BAIS will generally vote the holdings in Systematic Active Equity portfolios in accordance","page_number":244,"box":{"x":116,"y":710,"width":732,"height":12}},{"id":"65aa0593-913b-4d71-96f7-fa0e053655ba","block_type":"box","text":"with these guidelines. We provide voting recommendations to fundamental equity portfolio managers,","page_number":244,"box":{"x":116,"y":726,"width":751,"height":12}},{"id":"b507aa4a-e799-4585-bda8-c3670a559f0c","block_type":"box","text":"who may determine to vote differently based on each portfolio’s investment objectives and strategy.","page_number":244,"box":{"x":116,"y":741,"width":737,"height":12}},{"id":"5d964ce1-e243-43dc-880a-c3d3afaaa2c9","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":244,"box":{"x":116,"y":772,"width":749,"height":12}},{"id":"9e9693ae-7d29-4031-a298-130191a73407","block_type":"box","text":"management teams and board directors","page_number":244,"box":{"x":117,"y":787,"width":297,"height":12}},{"id":"b86d7829-6611-4ea5-9d0a-ad39b25988e9","block_type":"box","text":"4","page_number":244,"box":{"x":414,"y":787,"width":6,"height":6}},{"id":"5bca6b55-f6ae-4962-ba76-48e45a812c2e","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We","page_number":244,"box":{"x":424,"y":787,"width":456,"height":12}},{"id":"a52838a9-55d4-462c-b055-1cfafab90dcb","block_type":"box","text":"3","page_number":244,"box":{"x":143,"y":812,"width":4,"height":5}},{"id":"746ddba0-4ea4-4431-bab2-4781277fcfae","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":244,"box":{"x":170,"y":812,"width":660,"height":10}},{"id":"04db20f0-190e-47c0-916c-fad64f61965d","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":244,"box":{"x":170,"y":825,"width":695,"height":10}},{"id":"baa1e7bb-9e8a-46f9-8bea-87cac9d67017","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the effect,","page_number":244,"box":{"x":170,"y":838,"width":707,"height":10}},{"id":"4ee9d2c5-3253-4af8-9ab3-3c7d22d73578","block_type":"box","text":"of changing or influencing control of the company.","page_number":244,"box":{"x":170,"y":851,"width":295,"height":10}},{"id":"18fc9ebe-71e0-4887-ab88-5826960b57dd","block_type":"box","text":"4","page_number":244,"box":{"x":143,"y":867,"width":4,"height":4}},{"id":"ae123b4c-980b-4015-919b-dea9c1e94453","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory boards","page_number":244,"box":{"x":171,"y":866,"width":710,"height":10}},{"id":"5fb801ce-1ebf-451f-b81d-1fadd5e7c20a","block_type":"box","text":"and their members, where relevant.","page_number":244,"box":{"x":170,"y":879,"width":210,"height":9}},{"id":"2e01fb18-b18d-42cd-9fb1-613848a0105a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":244,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"ce0cc4f5-8773-4299-be72-a6a61cf57d33","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":244,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"03fc7080-41f8-4c66-91a7-05487180ef87","block_type":"box","text":"4","page_number":244,"box":{"x":874,"y":909,"width":9,"height":9}},{"id":"1e3342e1-fada-4ba4-8118-940e64b6ce51","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":244,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"8cd48364-74a3-41c1-92cd-dfc756b3e327","block_type":"box","text":"recognize that accepted corporate governance norms can differ across markets, and believe these","page_number":245,"box":{"x":117,"y":87,"width":736,"height":12}},{"id":"2a5888b1-0b54-4626-9070-95e4dbb02b59","block_type":"box","text":"guidelines represent globally applicable elements of governance that support a company’s ability to","page_number":245,"box":{"x":116,"y":102,"width":741,"height":13}},{"id":"15a103da-3384-488b-ba49-8f06ed47bbe8","block_type":"box","text":"manage material risks and opportunities and deliver financial returns to investors. Generally, we","page_number":245,"box":{"x":117,"y":118,"width":715,"height":12}},{"id":"705c9501-1360-477d-ba6e-5242f67c802e","block_type":"box","text":"believe companies should observe accepted corporate governance norms within their local markets or,","page_number":245,"box":{"x":117,"y":134,"width":768,"height":12}},{"id":"aae24e04-60b8-4a6d-8a2d-5c2531b794b0","block_type":"box","text":"particularly in markets without well-established norms, aspire to widely recognized international best","page_number":245,"box":{"x":117,"y":149,"width":746,"height":12}},{"id":"b8604058-1c9a-4bdc-9e35-021396a1d061","block_type":"box","text":"practices. As one of many minority shareholders, BlackRock cannot – and does not try to – direct a","page_number":245,"box":{"x":117,"y":165,"width":739,"height":12}},{"id":"61b53c53-86f4-494a-9b8d-9c4fc24679e2","block_type":"box","text":"company’s strategy or its implementation. We look to companies to provide disclosures that explain","page_number":245,"box":{"x":116,"y":180,"width":743,"height":12}},{"id":"a586d720-bc1e-4ef6-8098-827ddd41eca3","block_type":"box","text":"how their approach to corporate governance best aligns with the financial interests of their investors.","page_number":245,"box":{"x":117,"y":196,"width":749,"height":12}},{"id":"b8157443-2cfe-4eb1-a98c-44e63d588f8f","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":245,"box":{"x":246,"y":234,"width":513,"height":11}},{"id":"dadbc16e-3f50-42bd-b6fd-d58395b136a1","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of","page_number":245,"box":{"x":116,"y":265,"width":713,"height":12}},{"id":"a517b62f-f0c7-4d37-9b17-86986866cb5f","block_type":"box","text":"corporate governance. The voting rights attached to clients’ holdings are an important mechanism for","page_number":245,"box":{"x":116,"y":281,"width":756,"height":12}},{"id":"d6f0bf7f-4e27-492c-883f-761a1fd7f801","block_type":"box","text":"investors to express support for, or concern about, a company’s performance. As a fiduciary,","page_number":245,"box":{"x":117,"y":296,"width":692,"height":12}},{"id":"4de223b6-150b-4097-973a-4b01647d7b66","block_type":"box","text":"BlackRock is legally required to make proxy voting determinations, on behalf of clients who have","page_number":245,"box":{"x":117,"y":312,"width":720,"height":12}},{"id":"63c8ac8d-df71-4eab-b05a-ad4be162bdc2","block_type":"box","text":"delegated voting authority to us, in a manner consistent with BlackRock’s contractual arrangements","page_number":245,"box":{"x":116,"y":327,"width":743,"height":12}},{"id":"0b505312-0e03-4ea3-ae8b-46ba97b525d9","block_type":"box","text":"with clients and funds.","page_number":245,"box":{"x":116,"y":343,"width":170,"height":9}},{"id":"4dcb61bd-0adf-439c-9a52-0cd59607952a","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As","page_number":245,"box":{"x":117,"y":374,"width":740,"height":12}},{"id":"b59f4481-94ea-4905-a962-13bf384e8356","block_type":"box","text":"indicated below, we may vote against management recommendations when we have concerns about","page_number":245,"box":{"x":117,"y":389,"width":755,"height":12}},{"id":"92b67868-98d2-47a8-9d72-a23be02038f1","block_type":"box","text":"how companies are serving the financial interests of our clients as their shareholders. BAIS takes a","page_number":245,"box":{"x":117,"y":405,"width":740,"height":12}},{"id":"fd014663-a29f-4d04-9a93-74e0641525f9","block_type":"box","text":"globally consistent approach to voting but considers the different corporate governance regulations and","page_number":245,"box":{"x":116,"y":420,"width":772,"height":12}},{"id":"583dfc20-d0a5-40b3-bc0f-bd6bc60a3bed","block_type":"box","text":"norms across markets. Votes are determined on a case-by-case basis, in the context of a company’s","page_number":245,"box":{"x":117,"y":436,"width":753,"height":12}},{"id":"1792f6ff-ddd0-4a65-aa54-ca1a04fabed1","block_type":"box","text":"situation and the investment mandate we have from clients. Please see page 19 for more information","page_number":245,"box":{"x":116,"y":451,"width":756,"height":12}},{"id":"359814a7-4586-48a3-960c-da2c1f94a34d","block_type":"box","text":"about how we fulfill and oversee our investment stewardship responsibilities for BlackRock’s non-index","page_number":245,"box":{"x":116,"y":467,"width":768,"height":12}},{"id":"305ea6ab-2f50-48de-8624-133c74ec536b","block_type":"box","text":"equity strategies.","page_number":245,"box":{"x":116,"y":482,"width":125,"height":12}},{"id":"bc9c540b-630b-4019-a4ea-eca294db1486","block_type":"box","text":"5","page_number":245,"box":{"x":243,"y":483,"width":6,"height":6}},{"id":"85b60270-f3da-48f8-9d3a-952b307a8815","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":245,"box":{"x":257,"y":521,"width":490,"height":10}},{"id":"aab81420-8884-473f-8e94-9501e693ba11","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer","page_number":245,"box":{"x":116,"y":552,"width":695,"height":12}},{"id":"e804c9d1-9c7d-4118-8c10-666c0b65361b","block_type":"box","text":"engagement is a component of fixed income investment strategies at BlackRock, particularly for those","page_number":245,"box":{"x":116,"y":568,"width":762,"height":12}},{"id":"1f821530-26ff-41ba-b2f8-47a8aaba4d85","block_type":"box","text":"with sustainability objectives in addition to financial objectives. Most corporate governance-related","page_number":245,"box":{"x":116,"y":583,"width":732,"height":12}},{"id":"c331f6b1-c1e5-4be1-a661-508157d2ae5a","block_type":"box","text":"fixed income engagements are undertaken in conjunction with the active investment stewardship team,","page_number":245,"box":{"x":116,"y":599,"width":770,"height":12}},{"id":"5835f59e-4245-468b-8514-8bf0e22d3fc1","block_type":"box","text":"and often active equity investors. In addition to the topics listed below, engagement with fixed income","page_number":245,"box":{"x":116,"y":614,"width":757,"height":12}},{"id":"f7e16abc-ee44-471f-b534-d8121b156a77","block_type":"box","text":"investment teams may help inform an issuer’s approach to structuring specialist issuances and the","page_number":245,"box":{"x":117,"y":630,"width":736,"height":12}},{"id":"5851f16f-43ba-4acc-869a-64fa39e56d19","block_type":"box","text":"standard terms and information in bond documentation.","page_number":245,"box":{"x":116,"y":645,"width":417,"height":10}},{"id":"7b3409ab-b85d-4a62-a395-16b9156e8195","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":245,"box":{"x":398,"y":684,"width":203,"height":9}},{"id":"fb6d67d0-5790-4372-aa70-cb1ba016ebae","block_type":"box","text":"Roles and responsibilities","page_number":245,"box":{"x":117,"y":715,"width":207,"height":12}},{"id":"569880e0-6ae1-4714-b458-351899adfb7a","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board","page_number":245,"box":{"x":116,"y":746,"width":764,"height":12}},{"id":"68011a01-8ffd-4ef3-816c-09c7838a155d","block_type":"box","text":"of directors that is able to advise and supervise management in an independent and objective","page_number":245,"box":{"x":116,"y":761,"width":695,"height":13}},{"id":"6a9a7b20-122d-4175-8cc1-af3baa0f9a08","block_type":"box","text":"manner.","page_number":245,"box":{"x":117,"y":779,"width":59,"height":7}},{"id":"942f3bbe-312c-4ac3-b5b8-5e29376bffdb","block_type":"box","text":"6","page_number":245,"box":{"x":178,"y":777,"width":5,"height":6}},{"id":"2aef2fe2-d954-4602-b7e5-522baaa1fcb0","block_type":"box","text":"5","page_number":245,"box":{"x":143,"y":826,"width":4,"height":4}},{"id":"23654e24-8999-4c94-bc73-3fec817cdf18","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":245,"box":{"x":171,"y":825,"width":685,"height":10}},{"id":"8df50619-409b-449d-b7c1-5acc40c28b0e","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":245,"box":{"x":170,"y":838,"width":678,"height":10}},{"id":"2c1b9229-e010-4de7-830b-655647e9bdb0","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":245,"box":{"x":170,"y":851,"width":458,"height":10}},{"id":"8b643517-b431-473f-8fa3-2cbe8eca4079","block_type":"box","text":"6","page_number":245,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"ed27d09a-7468-40e1-82c9-00e08f34df11","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance principles","page_number":245,"box":{"x":170,"y":867,"width":706,"height":9}},{"id":"507decab-a916-48fa-8f13-7b46867378ba","block_type":"box","text":"of the US Business Roundtable as examples.","page_number":245,"box":{"x":170,"y":880,"width":268,"height":9}},{"id":"4c776201-b860-4ea7-96b3-418543c5cbfe","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":245,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"b70e79c4-0fec-4b34-a208-49b65c94fe5e","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":245,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"86152cd3-b787-4a71-bb4a-28d2bd5deee0","block_type":"box","text":"5","page_number":245,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"725b8682-d3ca-45cc-a369-4687f2142d43","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":245,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"f3aeb04e-8c38-404d-99f2-f9d7925c9f79","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment","page_number":246,"box":{"x":116,"y":87,"width":762,"height":12}},{"id":"711dba2d-3e9a-45d3-a7e3-432b66f4b49a","block_type":"box","text":"and realization of a company’s strategy, purpose and culture. These constructs are interdependent","page_number":246,"box":{"x":116,"y":102,"width":738,"height":13}},{"id":"a977018a-2ec2-4e98-b64f-cf6c95d51156","block_type":"box","text":"and, when aligned, can better position a company to be resilient in the face of a changing business","page_number":246,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"3634562d-4120-4810-8f0a-1cd502d9fddd","block_type":"box","text":"environment, help reduce the risks of corporate or employee misconduct, and attract and retain the","page_number":246,"box":{"x":116,"y":134,"width":740,"height":12}},{"id":"58e897ba-e1a6-4de2-9368-aebb76058986","block_type":"box","text":"caliber of workers necessary to deliver financial performance over time.","page_number":246,"box":{"x":116,"y":149,"width":535,"height":12}},{"id":"306b7a96-7d8c-486b-8e22-6b68f33d15d9","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies","page_number":246,"box":{"x":117,"y":178,"width":754,"height":12}},{"id":"6073983f-0ca9-4187-8c99-129be92c4fb9","block_type":"box","text":"and procedures are in place to help management meet its strategic objectives within an agreed risk","page_number":246,"box":{"x":116,"y":194,"width":742,"height":12}},{"id":"1fa3db8e-2bd0-45ae-9136-265f2ad841ef","block_type":"box","text":"tolerance.","page_number":246,"box":{"x":116,"y":210,"width":78,"height":9}},{"id":"8913501c-98f5-4827-9849-636324bfb525","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the","page_number":246,"box":{"x":116,"y":239,"width":739,"height":12}},{"id":"35a00705-fda1-4704-bbe6-9c72d8221e6c","block_type":"box","text":"chief executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the","page_number":246,"box":{"x":116,"y":254,"width":704,"height":12}},{"id":"2eb053f5-1b93-4354-8ecc-89179b2c2356","block_type":"box","text":"performance of the CEO and other key executives, determining executive compensation, ensuring a","page_number":246,"box":{"x":117,"y":270,"width":747,"height":12}},{"id":"3b2a1a6e-6e15-45a4-ab6e-b573376a1fca","block_type":"box","text":"rigorous audit, overseeing strategy execution and risk management and engaging with shareholders,","page_number":246,"box":{"x":117,"y":285,"width":753,"height":12}},{"id":"841cb1dc-d57c-447e-b083-35ecf5555a8c","block_type":"box","text":"and other stakeholders, as necessary.","page_number":246,"box":{"x":116,"y":301,"width":289,"height":12}},{"id":"cce588ff-18c3-41f7-9bde-22b65ee8691a","block_type":"box","text":"Composition and effectiveness","page_number":246,"box":{"x":116,"y":330,"width":253,"height":12}},{"id":"f0a28d27-7baf-49e4-970e-695e3c579978","block_type":"box","text":"Appointment process","page_number":246,"box":{"x":116,"y":359,"width":177,"height":12}},{"id":"f1099055-225e-48ee-9362-447e8b1366ae","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to","page_number":246,"box":{"x":116,"y":389,"width":708,"height":12}},{"id":"6f0f20dc-bb41-4df6-9e11-7e4c1b5cfaf8","block_type":"box","text":"ensuring the board is composed of directors with the appropriate mix of skills and experience.","page_number":246,"box":{"x":116,"y":404,"width":700,"height":12}},{"id":"96ceeda6-42aa-459d-a3e8-99e2c0aca7c8","block_type":"box","text":"Generally, the board or a sub-committee determines the general criteria given the company’s","page_number":246,"box":{"x":117,"y":420,"width":695,"height":12}},{"id":"d6ed8a33-c8c2-4290-8c99-a893aa370132","block_type":"box","text":"circumstances (e.g., sector, maturity, geographic footprint) and any additional criteria for a specific role","page_number":246,"box":{"x":116,"y":435,"width":767,"height":12}},{"id":"d51906a3-589a-4697-b4c2-271a0f9744e0","block_type":"box","text":"being filled (e.g., financial expertise, industry track record). To inform the process, we encourage","page_number":246,"box":{"x":117,"y":451,"width":721,"height":12}},{"id":"f4d77cfe-d14b-42ff-bd9a-0666e19a25c8","block_type":"box","text":"companies to review the skills and experience of incumbent directors to identify any gaps and whether","page_number":246,"box":{"x":116,"y":466,"width":764,"height":12}},{"id":"142646bc-55cc-4eb9-bdce-d01ab71a4065","block_type":"box","text":"the skills and experience of a director candidate would be additive. We welcome disclosures that","page_number":246,"box":{"x":116,"y":482,"width":722,"height":12}},{"id":"de0ae763-b30f-40c7-a91d-68b634710a10","block_type":"box","text":"explain how the board considered different skills and experience to ensure that the directors","page_number":246,"box":{"x":116,"y":497,"width":687,"height":12}},{"id":"a08c7f79-7826-4f39-87bc-15ffdb18f47e","block_type":"box","text":"collectively can be effective in fulfilling their responsibilities. We assess a company’s board","page_number":246,"box":{"x":116,"y":513,"width":678,"height":12}},{"id":"d44eea7f-e759-4bb2-831c-58995486f45d","block_type":"box","text":"composition against that of its peer group and local market requirements.","page_number":246,"box":{"x":116,"y":528,"width":548,"height":12}},{"id":"328a279b-a266-45b1-bdb4-e1dddb26b674","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any","page_number":246,"box":{"x":116,"y":558,"width":714,"height":12}},{"id":"c7c8ec70-a4a3-44ef-ba79-7b8cfe132439","block_type":"box","text":"particular board composition in our engagements or voting but seek to understand how well placed a","page_number":246,"box":{"x":117,"y":573,"width":751,"height":12}},{"id":"126b66c5-3a9c-4738-a677-d82887d30fd4","block_type":"box","text":"board is to act in investors’ interests. We may vote against the election of the most senior independent","page_number":246,"box":{"x":117,"y":589,"width":764,"height":12}},{"id":"056bd99a-46e4-4cb0-9229-4801e31f2394","block_type":"box","text":"director, or the chair of the relevant committee, where a company has not demonstrated it has an","page_number":246,"box":{"x":116,"y":604,"width":726,"height":12}},{"id":"3d1192bf-b102-4fc1-90e1-f508df40b6e6","block_type":"box","text":"appointment process that results in a high functioning board with the appropriate complement of skills","page_number":246,"box":{"x":116,"y":620,"width":759,"height":12}},{"id":"8714ab0f-6045-48b3-8a6c-16a533e2d21e","block_type":"box","text":"and experience amongst the directors to support strong financial performance over time. We may vote","page_number":246,"box":{"x":116,"y":635,"width":764,"height":12}},{"id":"dcc9fa0a-f63f-4003-b61e-a5214b42bc5f","block_type":"box","text":"against newly nominated directors who do not seem to have the appropriate skills or experience to","page_number":246,"box":{"x":116,"y":651,"width":736,"height":12}},{"id":"579e2da6-62ff-4c9a-ae24-3e4f94efd827","block_type":"box","text":"contribute to the board’s effectiveness.","page_number":246,"box":{"x":116,"y":666,"width":286,"height":10}},{"id":"f5e8365b-34f7-43bd-a353-c82dc9e92402","block_type":"box","text":"Independence","page_number":246,"box":{"x":116,"y":696,"width":113,"height":11}},{"id":"8ef7ee38-8008-4f8d-9fb9-54ebad9d9634","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (e.g.,","page_number":246,"box":{"x":117,"y":725,"width":700,"height":12}},{"id":"826b5ce8-c51c-497b-b850-98f64e025e3a","block_type":"box","text":"government or employees) is of paramount importance to the protection of the interests of minority","page_number":246,"box":{"x":116,"y":740,"width":732,"height":12}},{"id":"81777165-2134-4c3c-8567-92ee1084208b","block_type":"box","text":"shareholders such as BlackRock’s clients. We consider it good practice for at least half the directors to","page_number":246,"box":{"x":116,"y":756,"width":761,"height":12}},{"id":"0e3cdd14-6bd8-4405-8fce-c5a8499d692d","block_type":"box","text":"be independent and free from conflicts of interest or undue influence.","page_number":246,"box":{"x":117,"y":771,"width":510,"height":12}},{"id":"db62757d-199b-4b7b-84a8-8f193e79123d","block_type":"box","text":"7","page_number":246,"box":{"x":629,"y":771,"width":5,"height":6}},{"id":"f7662b1c-e87f-4872-83db-39dcd810c71a","block_type":"box","text":"This also helps to ensure that","page_number":246,"box":{"x":640,"y":771,"width":219,"height":12}},{"id":"7e0384fe-3a0e-4e19-84f3-fe12a9275238","block_type":"box","text":"board committees are composed of a sufficient number of independent directors. Companies domiciled","page_number":246,"box":{"x":117,"y":787,"width":764,"height":12}},{"id":"c6d30c02-c24b-41b2-8708-e6a3fa720f3e","block_type":"box","text":"in markets with a higher threshold for board independence should meet those local requirements.","page_number":246,"box":{"x":117,"y":802,"width":720,"height":12}},{"id":"08db1528-57ba-443f-9a4f-c4dd630f2996","block_type":"box","text":"7","page_number":246,"box":{"x":143,"y":828,"width":4,"height":4}},{"id":"2bab9ab7-ceda-4b3e-92af-3d6ad8fec0a2","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":246,"box":{"x":170,"y":827,"width":659,"height":10}},{"id":"ba26164e-b30a-4272-a532-5d79a716d2d3","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":246,"box":{"x":170,"y":840,"width":659,"height":10}},{"id":"6c3bd178-4a44-4cfe-866d-94a7680a06d6","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which could, or","page_number":246,"box":{"x":170,"y":853,"width":702,"height":10}},{"id":"4dd45e99-4cde-48da-8d26-074de014f6ca","block_type":"box","text":"could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests of the company","page_number":246,"box":{"x":170,"y":866,"width":703,"height":10}},{"id":"61ef0582-d732-43cc-8271-4f0fc88d02da","block_type":"box","text":"and shareholders.","page_number":246,"box":{"x":170,"y":879,"width":106,"height":8}},{"id":"aaa1b9fa-f8c2-4d6d-96f1-e968830c026b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":246,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"2d17e287-3b3f-49a4-82e9-85643630cc38","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":246,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"d86173be-a419-41b6-9b35-22c66f4e7ab7","block_type":"box","text":"6","page_number":246,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"774962ad-9724-4985-813a-94653db68c51","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":246,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"8027c464-2735-4191-b82d-91e46980c1e5","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient","page_number":247,"box":{"x":116,"y":87,"width":756,"height":12}},{"id":"a960da87-2a1e-4cf4-b94e-68398f763a64","block_type":"box","text":"balance of independence. We may also vote against the election of the chair of the committee","page_number":247,"box":{"x":117,"y":102,"width":701,"height":13}},{"id":"c741120a-b340-4e3b-a20d-117c1abf42e6","block_type":"box","text":"responsible for board composition if this is a perennial issue.","page_number":247,"box":{"x":117,"y":118,"width":453,"height":12}},{"id":"5de02ad5-5610-43b5-98f8-81be7741c841","block_type":"box","text":"Independent board leadership","page_number":247,"box":{"x":116,"y":149,"width":245,"height":12}},{"id":"9fc16416-1543-4ef9-b3ee-3eb9720e8964","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to","page_number":247,"box":{"x":117,"y":180,"width":718,"height":12}},{"id":"30eda5cc-3987-44bb-8876-3e25a289d873","block_type":"box","text":"independent board leadership. One is a non-executive, independent chair of the board who is","page_number":247,"box":{"x":117,"y":196,"width":697,"height":11}},{"id":"92637488-29ab-4abf-a26b-695aabb5abc7","block_type":"box","text":"responsible for leading the board in the effective exercise of its duties. The other is a lead or senior","page_number":247,"box":{"x":117,"y":211,"width":738,"height":12}},{"id":"67f4dc60-dc2c-4f17-ba16-f09463b6b9e4","block_type":"box","text":"independent director, who is responsible for coordinating with the other non-executive directors and","page_number":247,"box":{"x":117,"y":227,"width":742,"height":12}},{"id":"eb830ba4-72ec-41c8-a761-b5bb9d87fb05","block_type":"box","text":"working closely with the executive chair on the board agenda and other board procedures. In this case,","page_number":247,"box":{"x":116,"y":242,"width":770,"height":12}},{"id":"00a0ec7a-8a6c-4538-a3e6-4abd4e45d244","block_type":"box","text":"the executive chair and the lead independent director work together to ensure the board is effectively","page_number":247,"box":{"x":116,"y":258,"width":754,"height":12}},{"id":"916f65d8-4989-47b5-9a5b-cd093f4005f6","block_type":"box","text":"fulfilling its responsibilities. In our view, the independent leader of the board, and/or the chair of a","page_number":247,"box":{"x":116,"y":273,"width":723,"height":12}},{"id":"9c900381-d6a0-474e-97e4-12fd793b3c92","block_type":"box","text":"relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":247,"box":{"x":117,"y":289,"width":727,"height":12}},{"id":"fe2937a0-712a-41b2-a9dd-d76935f72c45","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board","page_number":247,"box":{"x":116,"y":304,"width":691,"height":12}},{"id":"45a15789-65a3-40e1-b189-4864bfcdcc03","block_type":"box","text":"leadership model and how it serves the interests of shareholders.","page_number":247,"box":{"x":117,"y":320,"width":489,"height":12}},{"id":"bdd76a19-7faf-44bc-af52-54f90b42a70b","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if","page_number":247,"box":{"x":116,"y":351,"width":740,"height":12}},{"id":"5b769325-4061-438b-9d52-38d7dd3da162","block_type":"box","text":"there is not an identified independent leader of the board with clear responsibilities for board","page_number":247,"box":{"x":116,"y":366,"width":689,"height":12}},{"id":"a8aab0e5-7cea-4f34-ad79-126589c91728","block_type":"box","text":"performance. We may vote against the most senior independent director if the board has a policy of","page_number":247,"box":{"x":117,"y":382,"width":744,"height":12}},{"id":"32f627a0-c6ea-4519-a4dc-4396f530d80b","block_type":"box","text":"not engaging with shareholders.","page_number":247,"box":{"x":117,"y":397,"width":242,"height":12}},{"id":"d3fe906c-5d73-46df-a3b4-b6e521d06714","block_type":"box","text":"Tenure and succession","page_number":247,"box":{"x":118,"y":428,"width":189,"height":10}},{"id":"fdfd8025-83ed-4cd6-a010-0774fd1dbd35","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be","page_number":247,"box":{"x":117,"y":459,"width":745,"height":12}},{"id":"349dd074-7691-4444-b552-bae20ec69d76","block_type":"box","text":"expected to serve, in line with market norms where those exist. We find it helpful when companies","page_number":247,"box":{"x":116,"y":475,"width":733,"height":12}},{"id":"f766734a-d92b-450b-afd1-7126ee74e7ee","block_type":"box","text":"disclose their approach to director tenure particularly around the contributions of directors who have","page_number":247,"box":{"x":116,"y":490,"width":745,"height":12}},{"id":"b77f0c92-8f36-46a0-ab5f-638ace85663a","block_type":"box","text":"served for longer periods than typically provided for under local practice. In our experience, long","page_number":247,"box":{"x":116,"y":506,"width":718,"height":12}},{"id":"ffa9576e-80cd-4ea2-9fef-6365f396c07f","block_type":"box","text":"serving directors could become less independent given their long-term relationship with management","page_number":247,"box":{"x":116,"y":521,"width":755,"height":12}},{"id":"bdf4bb80-8ad4-43fd-aa3b-f7669003c0f8","block_type":"box","text":"and involvement in past board decisions.","page_number":247,"box":{"x":116,"y":537,"width":308,"height":12}},{"id":"9d85bca0-e8e8-49f4-bbea-00237212ea29","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances","page_number":247,"box":{"x":116,"y":568,"width":756,"height":12}},{"id":"f3e196d0-9e9b-40ab-9dc8-bb958c8e4be1","block_type":"box","text":"renewal through the regular introduction of directors with fresh perspectives and expertise with","page_number":247,"box":{"x":117,"y":583,"width":705,"height":12}},{"id":"c230f62a-94ec-4c15-be49-fe9e26261e3a","block_type":"box","text":"continuity through the retention of directors with long-term knowledge of the board and company.","page_number":247,"box":{"x":116,"y":599,"width":724,"height":12}},{"id":"9605dd4c-0a33-495d-8bd8-17a124661028","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate","page_number":247,"box":{"x":117,"y":630,"width":680,"height":12}},{"id":"aa4caa27-1a53-4bfd-bef3-c144dd75927c","block_type":"box","text":"governance best practices, we may vote against the election of the chair of the committee responsible","page_number":247,"box":{"x":116,"y":645,"width":763,"height":12}},{"id":"a1fcfdee-ee5f-4e30-8132-0efbf52e4bf2","block_type":"box","text":"for board composition if a company does not clearly disclose its approach to director tenure and board","page_number":247,"box":{"x":116,"y":661,"width":757,"height":12}},{"id":"488f1f03-fdcd-4be5-963d-76aa7081fc6b","block_type":"box","text":"renewal. We may vote against the election of directors who have served for more years than is typical","page_number":247,"box":{"x":117,"y":676,"width":754,"height":12}},{"id":"a11abd7d-1feb-4f51-9377-8ea0debf413c","block_type":"box","text":"in markets with specific guidance, where the case for their continued service is not evident.","page_number":247,"box":{"x":117,"y":692,"width":673,"height":12}},{"id":"46fb4bea-e34a-4b79-b65a-e2976e04137f","block_type":"box","text":"Capacity","page_number":247,"box":{"x":117,"y":723,"width":70,"height":12}},{"id":"608e9968-0eaf-4ebb-bc81-e8b6705c1bd3","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our","page_number":247,"box":{"x":116,"y":754,"width":753,"height":12}},{"id":"ccadfa74-bbd6-4fa7-897c-10709d362e28","block_type":"box","text":"view, an effective board will assess the ability of its members to maintain an appropriate focus on","page_number":247,"box":{"x":116,"y":769,"width":720,"height":12}},{"id":"fb80efa0-ebf6-4137-a90e-a61a04920c8b","block_type":"box","text":"board matters and the company taking into consideration competing responsibilities. We recognize that","page_number":247,"box":{"x":117,"y":785,"width":765,"height":12}},{"id":"6d557443-200b-4b7a-a3c9-64f43f34e99c","block_type":"box","text":"board leadership roles vary across markets in responsibilities and required time commitment but note","page_number":247,"box":{"x":117,"y":800,"width":750,"height":12}},{"id":"b7e54e3f-8d6a-47ac-a218-c6dc68a85f98","block_type":"box","text":"that they are generally more intensive than a standard directorship. We will take local norms and","page_number":247,"box":{"x":116,"y":816,"width":715,"height":12}},{"id":"c4a103f5-0dd5-4a2e-8cf2-5e885a7233cc","block_type":"box","text":"practices into consideration when making our voting determinations across markets.","page_number":247,"box":{"x":117,"y":831,"width":628,"height":12}},{"id":"9275455d-8a53-44d7-9319-461c48e8dcd1","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively","page_number":247,"box":{"x":116,"y":862,"width":769,"height":12}},{"id":"6ea762ba-6e6e-4535-9f6e-bb8f3f447666","block_type":"box","text":"fulfil their duties to the board and company.","page_number":247,"box":{"x":116,"y":878,"width":326,"height":12}},{"id":"b5c7be3e-4003-4c16-842f-5ff4f3550386","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":247,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"af6eb575-19d4-4463-b536-cc187c469111","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":247,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"000efd92-8886-4b39-9cfe-957d0c0973c1","block_type":"box","text":"7","page_number":247,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"e2cc92e7-ae61-462e-ad23-2a3662e3c58a","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":247,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"c558d0d8-fd29-49a5-84a0-c7a7c0f540c9","block_type":"box","text":"Director elections","page_number":248,"box":{"x":116,"y":87,"width":147,"height":10}},{"id":"e4d52d65-2221-4393-8a26-bfe485b2e3eb","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A","page_number":248,"box":{"x":117,"y":116,"width":720,"height":13}},{"id":"0b3da898-0caa-45d6-b2ad-2471ba575c2c","block_type":"box","text":"classified board structure","page_number":248,"box":{"x":116,"y":132,"width":186,"height":10}},{"id":"d3ae69c9-57ae-49a5-bc18-491266ab67e7","block_type":"box","text":"8","page_number":248,"box":{"x":303,"y":132,"width":5,"height":6}},{"id":"bc9a3227-4984-4825-9d63-9228e7521172","block_type":"box","text":"may be justified by a company when it needs consistency and stability","page_number":248,"box":{"x":309,"y":132,"width":530,"height":12}},{"id":"3fec1482-e0a3-4bae-9e12-8efe563ec3a0","block_type":"box","text":"during a time of transition, or on the basis of its business model (e.g., a non-operating company such","page_number":248,"box":{"x":116,"y":147,"width":754,"height":13}},{"id":"f3e07e9c-eb73-4d39-81cd-460db0e77001","block_type":"box","text":"as closed-end funds).","page_number":248,"box":{"x":116,"y":163,"width":165,"height":12}},{"id":"27dda461-d481-4c5c-972b-b5f9aef0950b","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in","page_number":248,"box":{"x":116,"y":192,"width":746,"height":13}},{"id":"030c22ff-08f6-4536-816f-f4799acd30cb","block_type":"box","text":"bundled slates. We look to companies to provide sufficient information on each director standing for","page_number":248,"box":{"x":117,"y":208,"width":743,"height":12}},{"id":"9ab76caf-2bbd-47ac-95f9-dd4d91a1d503","block_type":"box","text":"election so that shareholders can assess their capabilities and suitability. We will generally not support","page_number":248,"box":{"x":116,"y":224,"width":765,"height":12}},{"id":"01edf070-022c-4453-860b-02a57d748ef8","block_type":"box","text":"the election of directors whose names and biographical details have not been disclosed sufficiently in","page_number":248,"box":{"x":116,"y":239,"width":755,"height":12}},{"id":"884f97f8-5014-4799-aadf-1ec7c7a60b54","block_type":"box","text":"advance of the shareholder meeting.","page_number":248,"box":{"x":116,"y":254,"width":278,"height":13}},{"id":"5b50ab13-3d16-4e79-8b44-f32f0a52e8e5","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at","page_number":248,"box":{"x":117,"y":284,"width":746,"height":12}},{"id":"4fdbddb2-d9e5-4c84-8bf6-fba9a042d8a7","block_type":"box","text":"the shareholder meeting. Where a company’s practices differ, we look to the board to provide a","page_number":248,"box":{"x":116,"y":299,"width":712,"height":13}},{"id":"25734ba6-8ebe-4bc3-8280-11b18910edd4","block_type":"box","text":"detailed explanation as to how its approach best serves investors’ interests.","page_number":248,"box":{"x":116,"y":315,"width":567,"height":12}},{"id":"9cab7077-72e2-48e5-b118-e7856db5e99a","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of","page_number":248,"box":{"x":116,"y":344,"width":710,"height":12}},{"id":"d569c2d3-08c5-4e6f-ada0-60e8fd0abd9b","block_type":"box","text":"directors and/or a simple majority vote standard for director elections. We may vote against all the","page_number":248,"box":{"x":116,"y":360,"width":732,"height":12}},{"id":"c7dd41ba-08a0-4a43-b7e4-aafa170d7af0","block_type":"box","text":"directors standing for election as part of a single slate if we have concerns about the profile or","page_number":248,"box":{"x":116,"y":375,"width":701,"height":12}},{"id":"4bfe321a-29f1-46f7-914e-420c80b25826","block_type":"box","text":"performance of an individual director.","page_number":248,"box":{"x":117,"y":391,"width":280,"height":12}},{"id":"2c6e950d-5c38-421b-9d6c-3148aeacd755","block_type":"box","text":"Committees","page_number":248,"box":{"x":117,"y":420,"width":100,"height":10}},{"id":"6a9117aa-c3d4-4436-a353-fc753426d8f2","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and","page_number":248,"box":{"x":117,"y":450,"width":757,"height":12}},{"id":"4585e681-fbf0-4ce5-a3a7-144de7c19dfd","block_type":"box","text":"risk, governance and human capital, and executive compensation, amongst other matters. We do not","page_number":248,"box":{"x":117,"y":465,"width":756,"height":12}},{"id":"7737af66-0282-46d5-9c50-be9aae274cb9","block_type":"box","text":"prescribe to companies what committees they should establish, but we seek to understand the board’s","page_number":248,"box":{"x":117,"y":481,"width":765,"height":12}},{"id":"8f05b6c9-4314-48f1-a15c-3fa357285253","block_type":"box","text":"rationale for the committee structure it determines is appropriate. We note that, in some markets,","page_number":248,"box":{"x":117,"y":496,"width":723,"height":12}},{"id":"2f31d147-a024-4edb-a86f-a1d15f6cc3d8","block_type":"box","text":"regulation requires such committees. The responsibilities of each committee should be clear, and the","page_number":248,"box":{"x":117,"y":512,"width":754,"height":12}},{"id":"3e2fa46e-96ff-452c-bad2-3c429ea83584","block_type":"box","text":"board should ensure that all critical matters are assigned either to the full board or to one of the","page_number":248,"box":{"x":117,"y":527,"width":711,"height":12}},{"id":"05aa8342-bdfb-4fbc-b91e-e1245430ed41","block_type":"box","text":"committees. It is helpful to investor understanding when the board discloses the structure,","page_number":248,"box":{"x":116,"y":543,"width":672,"height":12}},{"id":"42b13a94-80dd-4c93-bda4-3a5b9025f46a","block_type":"box","text":"membership, proportion of independent directors, and responsibilities of each committee. The","page_number":248,"box":{"x":117,"y":558,"width":700,"height":12}},{"id":"ad0a125b-2ac3-4054-a291-4f1c7f4db560","block_type":"box","text":"responsibilities we typically see assigned to the three most common committees include:","page_number":248,"box":{"x":117,"y":574,"width":662,"height":12}},{"id":"243af9ce-7830-4553-8c6f-dfce18dd1669","block_type":"box","text":"• Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management","page_number":248,"box":{"x":117,"y":596,"width":752,"height":12}},{"id":"e6d3f184-699d-4993-95f9-d63f0f4aafeb","block_type":"box","text":"and compliance with legal and regulatory requirements; may also play an oversight role in relation","page_number":248,"box":{"x":150,"y":612,"width":731,"height":12}},{"id":"1d1fe8fe-08f0-4ef2-b7be-9644d1227e2d","block_type":"box","text":"to the internal audit function and whistleblowing mechanisms.","page_number":248,"box":{"x":150,"y":627,"width":460,"height":12}},{"id":"d23cb3e5-ef01-49fe-9c49-d0046865cb33","block_type":"box","text":"• Nominating, governance and human capital – oversight responsibilities for corporate governance","page_number":248,"box":{"x":117,"y":650,"width":756,"height":12}},{"id":"067d7aa0-a822-43e8-ab2e-1d716a32d081","block_type":"box","text":"principles and practices of the company, including the periodic review of board performance;","page_number":248,"box":{"x":150,"y":665,"width":684,"height":12}},{"id":"1201c3a9-6bcb-474d-a780-dbb82153d84e","block_type":"box","text":"responsibility for succession planning for CEO and key board roles, as well as the director","page_number":248,"box":{"x":150,"y":681,"width":667,"height":12}},{"id":"b200ac92-0438-4f6f-adb2-06f806402078","block_type":"box","text":"appointment process; may also have oversight responsibilities for human capital management","page_number":248,"box":{"x":150,"y":696,"width":698,"height":12}},{"id":"ba1f81b7-2bf9-4953-b934-c213c3a51b49","block_type":"box","text":"strategies, including corporate culture and purpose.","page_number":248,"box":{"x":150,"y":712,"width":381,"height":12}},{"id":"416aafd1-54d1-4f5f-b4c4-a293b0c3aa8c","block_type":"box","text":"• Executive compensation – determines the compensation policies and programs for the CEO and","page_number":248,"box":{"x":117,"y":734,"width":749,"height":12}},{"id":"2e37b815-6906-42d9-8736-59054932de33","block_type":"box","text":"other executive officers, approves annual awards and payments under the policies; may also have","page_number":248,"box":{"x":150,"y":750,"width":730,"height":12}},{"id":"b7f36897-2ad9-40c3-b160-fdedd4872d57","block_type":"box","text":"oversight responsibilities for firm-wide compensation policies.","page_number":248,"box":{"x":150,"y":765,"width":453,"height":12}},{"id":"28e8c33c-2275-4bd5-929f-ff88c3be79e9","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee","page_number":248,"box":{"x":116,"y":795,"width":760,"height":12}},{"id":"b100e854-905f-4deb-bf20-efafc566ab9e","block_type":"box","text":"members to convey concerns about how a committee has undertaken its responsibilities. We may vote","page_number":248,"box":{"x":117,"y":810,"width":762,"height":12}},{"id":"c4da1104-2898-4a09-bc70-de0c1976d435","block_type":"box","text":"against the election of the most senior non-executive director if there is not a clearly disclosed","page_number":248,"box":{"x":116,"y":826,"width":702,"height":12}},{"id":"1395ad4d-2d62-47d8-925b-46154446f5da","block_type":"box","text":"approach to board committees.","page_number":248,"box":{"x":116,"y":841,"width":236,"height":12}},{"id":"6afaffb8-01e2-4be2-99c4-8d6e235aece9","block_type":"box","text":"8","page_number":248,"box":{"x":143,"y":867,"width":4,"height":4}},{"id":"506e50c1-8738-4560-b95f-6e9b44fe8c94","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":248,"box":{"x":170,"y":866,"width":673,"height":10}},{"id":"b1cb9c24-c17b-439d-ac0d-0a662ae0daf0","block_type":"box","text":"directors stands for election in any one year.","page_number":248,"box":{"x":170,"y":879,"width":262,"height":10}},{"id":"9b80bffb-b2fb-4927-9928-76ee8d870d1e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":248,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"8ffa9cc7-2398-446d-90c9-7c190f9803a0","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":248,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"7cd74a1f-62ed-416d-a44b-d3285b44ae18","block_type":"box","text":"8","page_number":248,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"9c560875-9d5d-4c8b-9f0b-2cef8091dfd2","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":248,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"b31f5485-e5d5-4778-a45e-550cfafabb3a","block_type":"box","text":"Board and director evaluation","page_number":249,"box":{"x":116,"y":87,"width":243,"height":10}},{"id":"277ead95-1515-48bf-a0c4-70df42b8a590","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the","page_number":249,"box":{"x":116,"y":119,"width":729,"height":12}},{"id":"6468141e-4302-4ea8-8f1f-860daac75f9e","block_type":"box","text":"board, the committees, the chair and individual directors. Periodically, this review could be undertaken","page_number":249,"box":{"x":117,"y":134,"width":762,"height":12}},{"id":"bd969bcf-7129-4051-900f-6e52954acc66","block_type":"box","text":"by an independent third party able to bring objective perspectives to the board on governance and","page_number":249,"box":{"x":117,"y":150,"width":732,"height":12}},{"id":"11bf2165-1f0e-4c10-816b-b2fb0715cc71","block_type":"box","text":"performance. We encourage companies to disclose their approach to and the objectives of","page_number":249,"box":{"x":117,"y":165,"width":677,"height":12}},{"id":"c575434d-39fd-4ce1-a862-efc30e2fe32c","block_type":"box","text":"evaluations, including any changes made to the board’s approach as a result.","page_number":249,"box":{"x":116,"y":181,"width":581,"height":12}},{"id":"e43d0ff5-f141-48d9-bc92-7685044c0e90","block_type":"box","text":"Access to independent advice","page_number":249,"box":{"x":116,"y":213,"width":246,"height":11}},{"id":"4dedb742-bb55-4e3e-a9ff-1c9b9c44f9d1","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they","page_number":249,"box":{"x":116,"y":244,"width":723,"height":12}},{"id":"f8fbe671-61c1-425e-9265-ea6ffaf2fd93","block_type":"box","text":"should have access to independent advice. In certain circumstances, it may be helpful to boards to","page_number":249,"box":{"x":116,"y":260,"width":738,"height":12}},{"id":"d23c3395-0d6a-4206-bcf9-d970d50cce80","block_type":"box","text":"retain independent third parties to advise on critical matters. These might include new industry","page_number":249,"box":{"x":117,"y":275,"width":703,"height":12}},{"id":"8d0288d4-2bdb-4437-8aa0-084d70b4d56b","block_type":"box","text":"developments such as emergent and disruptive technology, operating events with material","page_number":249,"box":{"x":116,"y":291,"width":676,"height":12}},{"id":"93cd7541-2f8a-4625-a20e-d4459515b965","block_type":"box","text":"consequences for the company’s reputation and/or performance, or significant transactions. Board","page_number":249,"box":{"x":116,"y":306,"width":735,"height":12}},{"id":"3c251e11-2976-420a-a693-8fccca7651dd","block_type":"box","text":"committees may similarly retain third parties to advise them on specialist matters such as audit,","page_number":249,"box":{"x":116,"y":322,"width":713,"height":12}},{"id":"54b42dfb-872a-41d3-8d98-d3ad9e49bae3","block_type":"box","text":"compensation and succession planning.","page_number":249,"box":{"x":116,"y":337,"width":303,"height":12}},{"id":"b092af71-aa05-4d3c-b661-af358eb18b61","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":249,"box":{"x":382,"y":369,"width":241,"height":9}},{"id":"89a262d2-931e-4240-8b2a-07af1a349d33","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to","page_number":249,"box":{"x":117,"y":401,"width":760,"height":12}},{"id":"50a70ace-54ed-4989-be1e-6a394ffdfbbf","block_type":"box","text":"recruit, retain and reward the caliber of executive management necessary to lead and operate the","page_number":249,"box":{"x":117,"y":416,"width":730,"height":12}},{"id":"71093170-1301-4e9d-a438-f66f8952e1a9","block_type":"box","text":"company to deliver superior financial returns over time. We focus on alignment between variable pay","page_number":249,"box":{"x":116,"y":432,"width":753,"height":12}},{"id":"cd18bf99-d115-4296-8d7e-bb2b43ba2ff6","block_type":"box","text":"and a company’s financial performance.","page_number":249,"box":{"x":116,"y":447,"width":302,"height":12}},{"id":"bb353a22-fd0b-48a0-a087-02e2a3033f03","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus","page_number":249,"box":{"x":117,"y":479,"width":751,"height":12}},{"id":"bc6160be-10a5-4760-bfb8-bea9e9af9806","block_type":"box","text":"that rewards performance against short-term metrics, incentives—most often share-based- that reward","page_number":249,"box":{"x":116,"y":494,"width":768,"height":12}},{"id":"85458415-1b14-43bc-a017-18d284ede367","block_type":"box","text":"performance against long-term metrics, and pensions and benefits. In our observation, base salary,","page_number":249,"box":{"x":117,"y":510,"width":742,"height":12}},{"id":"b7fd9551-4a82-4f7c-8635-4bdbc98b297d","block_type":"box","text":"pensions and benefits are largely set relative to market norms and benchmarks. The annual bonus and","page_number":249,"box":{"x":117,"y":525,"width":769,"height":12}},{"id":"f4b78277-2a61-41a1-a699-8c2e391eaaed","block_type":"box","text":"share-based incentive, or variable pay plans, tend to be tailored to the company, its sector and long","page_number":249,"box":{"x":116,"y":541,"width":744,"height":12}},{"id":"f526471e-e4ec-49ab-9937-02885d31a118","block_type":"box","text":"term strategy, as well as the individuals the board is seeking to recruit and motivate.","page_number":249,"box":{"x":116,"y":557,"width":629,"height":11}},{"id":"9742fcf2-e192-4966-9f83-b753feca00eb","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a","page_number":249,"box":{"x":117,"y":588,"width":693,"height":12}},{"id":"91d2ee5c-435e-40e2-993d-4da46a387ec5","block_type":"box","text":"company’s approach to executive compensation on a case-by-case basis. We rely on companies","page_number":249,"box":{"x":116,"y":604,"width":726,"height":12}},{"id":"525ac897-b490-43df-a47a-2f82556f2de1","block_type":"box","text":"providing sufficient quantitative and qualitative information in their disclosures to enable shareholders","page_number":249,"box":{"x":117,"y":619,"width":754,"height":12}},{"id":"73b9ac0f-f968-470e-bc96-4d576719895c","block_type":"box","text":"to understand the compensation arrangements and assess the alignment with investors’ interests.","page_number":249,"box":{"x":116,"y":635,"width":732,"height":12}},{"id":"907f33c8-1757-49b8-8562-f003340053e2","block_type":"box","text":"Features we look for in compensation arrangements include:","page_number":249,"box":{"x":117,"y":650,"width":454,"height":12}},{"id":"8b5b1d9f-96cd-4b9d-a7c6-efac1abd5d75","block_type":"box","text":"• Fixed pay components, including base salary, benefits and prerequisites that are appropriate in","page_number":249,"box":{"x":117,"y":682,"width":739,"height":12}},{"id":"a36b4fe1-1876-41ee-8210-cf37ba9dedfd","block_type":"box","text":"the context of the company’s size, sector and market.","page_number":249,"box":{"x":150,"y":697,"width":396,"height":12}},{"id":"5df3fd64-8aa2-45f3-a02b-207f03495feb","block_type":"box","text":"• Variable pay subject to performance metrics that are closely linked to the company’s short- and","page_number":249,"box":{"x":117,"y":721,"width":739,"height":12}},{"id":"aba27330-18f0-45c7-a2cf-bea58fabb275","block_type":"box","text":"long-term strategic objectives.","page_number":249,"box":{"x":150,"y":737,"width":222,"height":12}},{"id":"a9bb5355-4fac-4470-bc5d-bf3d0a5f12fb","block_type":"box","text":"• Long-term incentives that motivate sustained performance across a multi-year period.","page_number":249,"box":{"x":117,"y":760,"width":667,"height":12}},{"id":"d04ef357-a01a-41e9-947c-d97d1255f0e1","block_type":"box","text":"• A balance between fixed and variable pay, short- and long-term incentives, and specific","page_number":249,"box":{"x":117,"y":784,"width":682,"height":12}},{"id":"b353ee0d-34f2-45b4-b80b-a3b4df1cf66f","block_type":"box","text":"instruments (cash and equity awards) that promotes pay program durability and seldom","page_number":249,"box":{"x":150,"y":799,"width":649,"height":12}},{"id":"c05b4a80-835a-4a46-9909-280e934057e9","block_type":"box","text":"necessitates one-off, discretionary payments.","page_number":249,"box":{"x":150,"y":815,"width":336,"height":12}},{"id":"7e18c3a4-9dec-44bc-8728-c846c5f3f584","block_type":"box","text":"• Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":249,"box":{"x":117,"y":838,"width":720,"height":12}},{"id":"be8da4fe-7ab2-42c5-9beb-cf6073ada29f","block_type":"box","text":"• Board discretion, if allowed within the variable pay arrangements, to be used sparingly,","page_number":249,"box":{"x":117,"y":862,"width":683,"height":12}},{"id":"bb7d5f8d-d726-4442-92a3-8740bd9ac8bb","block_type":"box","text":"responsibly and transparently.","page_number":249,"box":{"x":150,"y":877,"width":228,"height":12}},{"id":"c7d69965-cc37-4db1-b0ab-314a9ad4a4a4","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":249,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"211ec54a-372c-4ee0-82a3-76f3afd9c858","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":249,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"ed80b8dd-fb21-441f-b5e4-69ce75e368df","block_type":"box","text":"9","page_number":249,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"3d883314-7efc-4fd8-ba43-a0582b16575c","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":249,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"dd9f0cde-223a-4813-a926-591db1b65a36","block_type":"box","text":"• A requirement, that participants in long-term share-based incentive plans build a meaningful","page_number":250,"box":{"x":117,"y":87,"width":720,"height":12}},{"id":"4416b6fe-bed3-4a13-a481-a6ca8c1c5d9d","block_type":"box","text":"shareholding in the company within a defined time period, as determined by the board or relevant","page_number":250,"box":{"x":150,"y":102,"width":727,"height":13}},{"id":"3390482b-b215-49a4-ba81-d59963e491f0","block_type":"box","text":"board committee.","page_number":250,"box":{"x":150,"y":118,"width":134,"height":10}},{"id":"8156bf99-cbcf-4f11-99a0-81e64f799a9d","block_type":"box","text":"• Change of control provisions that appropriately balance the interests of executives and","page_number":250,"box":{"x":117,"y":142,"width":681,"height":12}},{"id":"98640e4c-bf7a-46ec-b9f2-f2a8e0312e9a","block_type":"box","text":"shareholders.","page_number":250,"box":{"x":150,"y":157,"width":106,"height":10}},{"id":"f349fee8-d6b4-4a5a-8cf0-e86e1e5d1a58","block_type":"box","text":"• Clawback or malus provisions that allow the company to recoup or hold back variable","page_number":250,"box":{"x":117,"y":181,"width":671,"height":12}},{"id":"ecaa53a1-56f5-4890-921a-a52e31842cab","block_type":"box","text":"compensation from individuals whose awards were based on fraudulent activities, misstated","page_number":250,"box":{"x":150,"y":196,"width":688,"height":12}},{"id":"5866e06b-27ee-4c5c-81c8-0db3f5b1c9b0","block_type":"box","text":"financial reports, or executive misconduct.","page_number":250,"box":{"x":149,"y":212,"width":318,"height":12}},{"id":"4d0ec9c5-be38-41bf-a2e3-443b2e0b858d","block_type":"box","text":"• Severance arrangements that protect the company’s interests but do not cost more than is","page_number":250,"box":{"x":117,"y":235,"width":709,"height":12}},{"id":"84099bf6-9396-4de7-bd62-5d52b5a67a3a","block_type":"box","text":"contractual.","page_number":250,"box":{"x":150,"y":251,"width":91,"height":9}},{"id":"3dae894b-aa6a-4bc9-a09d-f47e405e06f6","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or","page_number":250,"box":{"x":116,"y":282,"width":757,"height":12}},{"id":"81f541cc-b669-463c-8c6c-d722ceeaea0c","block_type":"box","text":"plans, or approve the compensation report where we do not see alignment between executive","page_number":250,"box":{"x":117,"y":298,"width":701,"height":12}},{"id":"95feaad1-1618-4586-8622-1fa91525fcba","block_type":"box","text":"compensation arrangements and our clients’ financial interests. When there is not an alternative, or","page_number":250,"box":{"x":116,"y":313,"width":742,"height":12}},{"id":"b9cb2a95-c325-4928-8eb1-eea78de55986","block_type":"box","text":"where there have been multi-year issues with compensation misaligned with performance, we may","page_number":250,"box":{"x":116,"y":329,"width":738,"height":12}},{"id":"441bb42a-f840-4cc8-bad5-e363f83936ba","block_type":"box","text":"vote against the election of the chair of the responsible committee, or the most senior independent","page_number":250,"box":{"x":116,"y":344,"width":735,"height":12}},{"id":"2d87a337-972a-4b1b-abed-b2e25d08e54c","block_type":"box","text":"director.","page_number":250,"box":{"x":116,"y":360,"width":65,"height":9}},{"id":"627a0b49-82bc-454b-b02c-9ae2f94c8541","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":250,"box":{"x":314,"y":399,"width":377,"height":10}},{"id":"7e2ce65e-36d1-44cf-ac74-b13c50c4e622","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a","page_number":250,"box":{"x":117,"y":431,"width":712,"height":12}},{"id":"f8191333-b907-4f4b-8028-3dbc69686c14","block_type":"box","text":"combination of the two. Some companies also pay additional fees for service on board committees or","page_number":250,"box":{"x":116,"y":446,"width":757,"height":13}},{"id":"a3d4c897-e4fb-46cd-b965-430551e53c9c","block_type":"box","text":"in board leadership roles. We do not support non-executive directors participating in performance","page_number":250,"box":{"x":117,"y":462,"width":726,"height":12}},{"id":"b1505740-8f4d-446b-93db-1a9f70ee48a7","block_type":"box","text":"based incentive plans as doing so may create a conflict of interest and undermine their independence","page_number":250,"box":{"x":117,"y":477,"width":759,"height":13}},{"id":"f173861e-5bea-468f-a88f-0523e6a62254","block_type":"box","text":"from management, whom they oversee.","page_number":250,"box":{"x":116,"y":493,"width":301,"height":12}},{"id":"8f97873e-7884-44b2-89d5-aec1e3895dd3","block_type":"box","text":"CAPITAL STRUCTURE","page_number":250,"box":{"x":410,"y":533,"width":185,"height":9}},{"id":"446d4f65-c7b0-4844-a88a-57e5abb9f2d2","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that","page_number":250,"box":{"x":117,"y":564,"width":765,"height":12}},{"id":"c2a3d3f2-2c16-4c58-9a2b-980c0dad0969","block_type":"box","text":"achieves appropriate capital allocation in support of long-term financial resilience.","page_number":250,"box":{"x":116,"y":580,"width":610,"height":12}},{"id":"ee9d0083-b2a8-40e8-9f51-5d664bd0ef5c","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why","page_number":250,"box":{"x":116,"y":611,"width":743,"height":12}},{"id":"3d5516d3-891d-4787-857a-58f666f47051","block_type":"box","text":"they view these practices to be aligned with shareholders’ interests. We may vote against management","page_number":250,"box":{"x":116,"y":627,"width":772,"height":12}},{"id":"5dd6c5b3-a541-4cb7-ad27-3646aea31c0d","block_type":"box","text":"proposals seeking capital-related authorities, or the election of the most senior independent director, if","page_number":250,"box":{"x":117,"y":642,"width":761,"height":12}},{"id":"4974801c-5c34-487f-9c86-cab7cb510f19","block_type":"box","text":"we have concerns about a company’s approach. We may also support a shareholder proposal seeking","page_number":250,"box":{"x":116,"y":658,"width":768,"height":12}},{"id":"c3bd77a6-9f2b-4550-8afb-d1eff0a39b10","block_type":"box","text":"conversion of shares with differentiated voting rights to a one-share, one-vote standard.","page_number":250,"box":{"x":116,"y":673,"width":649,"height":12}},{"id":"e11a28bd-e0f7-4e63-9db4-51af8809cc47","block_type":"box","text":"Share","page_number":250,"box":{"x":116,"y":705,"width":46,"height":9}},{"id":"0fcf8d64-3c01-4897-8585-01035e5fb588","block_type":"box","text":"issuance","page_number":250,"box":{"x":168,"y":705,"width":71,"height":9}},{"id":"82efe6ce-4010-4138-bcaa-f09441123965","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will","page_number":250,"box":{"x":116,"y":736,"width":735,"height":13}},{"id":"09c134e5-8678-497b-abd6-e7e40f978052","block_type":"box","text":"generally support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent","page_number":250,"box":{"x":116,"y":752,"width":763,"height":12}},{"id":"603ccec9-478c-42c4-8ce9-6473c1dfd83c","block_type":"box","text":"pre-emptive rights. We consider it good practice for companies to seek regular approval of these","page_number":250,"box":{"x":117,"y":767,"width":715,"height":13}},{"id":"85e24d89-a0a7-43e0-b08b-2aa28de3b4be","block_type":"box","text":"authorities to allow shareholders to take into consideration how prior authorities were used, as well as","page_number":250,"box":{"x":116,"y":783,"width":754,"height":12}},{"id":"a1b5b101-7aaf-4651-a4e1-1173871e7402","block_type":"box","text":"the current circumstances of the company and the market environment.","page_number":250,"box":{"x":116,"y":798,"width":530,"height":13}},{"id":"004a10ac-a81a-4856-9571-ddcac958b1b3","block_type":"box","text":"Share buybacks","page_number":250,"box":{"x":116,"y":830,"width":133,"height":12}},{"id":"7bd588db-595b-4de1-8fdd-d16d356d3dc7","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management","page_number":250,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"4c4642ab-7658-4dac-ab11-1b4625d7abee","block_type":"box","text":"strategy and management’s determination of the appropriate balance between investment that","page_number":250,"box":{"x":116,"y":877,"width":706,"height":12}},{"id":"c2cabe21-939c-41aa-84c3-a8560b55ed17","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":250,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"de1b77bb-cab7-4d4f-822d-879ec7102607","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":250,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"d2845180-54fb-4930-91b2-1d7fca6af3e6","block_type":"box","text":"10","page_number":250,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"e02757af-9f54-4d6f-a177-3377f3859e74","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":250,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"cdc28f0c-671c-4538-b108-97fdae67caa1","block_type":"box","text":"supports the long-term growth of the company and returning cash to investors. We also take into","page_number":251,"box":{"x":116,"y":87,"width":721,"height":12}},{"id":"d15e3917-5168-4d75-bfef-cc7b0561d59b","block_type":"box","text":"consideration the effect of a buyback program on the company’s balance sheet and executive","page_number":251,"box":{"x":116,"y":102,"width":701,"height":13}},{"id":"9c7f8bde-820b-4e2c-a144-7ccffa3c1cee","block_type":"box","text":"compensation arrangements and the price at which shares are repurchased relative to market price.","page_number":251,"box":{"x":116,"y":118,"width":748,"height":12}},{"id":"9e240981-9da7-4132-af57-0179e81d70f0","block_type":"box","text":"We consider it good practice for companies to seek regular approval of these authorities to allow","page_number":251,"box":{"x":116,"y":134,"width":721,"height":12}},{"id":"0ffa0baa-5816-4d00-9d79-864285832803","block_type":"box","text":"shareholders to take into consideration how prior authorities were used, as well as the current","page_number":251,"box":{"x":116,"y":149,"width":700,"height":12}},{"id":"94d966dc-701a-485f-9fd3-c6e5f9933bde","block_type":"box","text":"circumstances of the company and the market environment.","page_number":251,"box":{"x":116,"y":165,"width":451,"height":12}},{"id":"74f06294-55ea-46d8-b3bd-814e1294e681","block_type":"box","text":"Dividends","page_number":251,"box":{"x":117,"y":193,"width":84,"height":10}},{"id":"69c99abb-68d7-4bf0-8615-07a82327a32c","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further","page_number":251,"box":{"x":116,"y":222,"width":752,"height":12}},{"id":"9fb89892-032e-4270-8461-7bd3df24efc1","block_type":"box","text":"clarification where a proposed dividend appears out of line with the company’s financial position.","page_number":251,"box":{"x":116,"y":238,"width":720,"height":12}},{"id":"51a82abf-a17a-4f94-bcbf-2125b35c89c4","block_type":"box","text":"Differentiated voting rights","page_number":251,"box":{"x":117,"y":266,"width":219,"height":12}},{"id":"a7e4cf08-1dbd-4043-b86b-6eae48dd25e1","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same","page_number":251,"box":{"x":116,"y":295,"width":710,"height":12}},{"id":"c5e0ed4d-233b-46e7-b8aa-457c332fa2aa","block_type":"box","text":"economic exposure. Certain companies, particularly those new to public markets, could make the case","page_number":251,"box":{"x":116,"y":311,"width":768,"height":12}},{"id":"b3329c2c-e175-4a6e-9162-9d3a679ede18","block_type":"box","text":"to adopt a differentiated voting rights structure, or dual class stock. In those situations, we encourage","page_number":251,"box":{"x":116,"y":326,"width":755,"height":12}},{"id":"119852d5-638d-4ed9-96bb-2032dd58a3ff","block_type":"box","text":"companies to evaluate and seek approval for their capital structure on a periodic basis.","page_number":251,"box":{"x":116,"y":342,"width":650,"height":11}},{"id":"ef738d34-6f45-4900-95cd-0fc7c1c18853","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":251,"box":{"x":320,"y":377,"width":364,"height":9}},{"id":"9ef0250a-e306-4173-98b5-b4d6bdf4c17d","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own","page_number":251,"box":{"x":116,"y":406,"width":712,"height":12}},{"id":"381ce063-6584-4a99-a809-941688a8cdcf","block_type":"box","text":"detailed analyses of proposals.","page_number":251,"box":{"x":116,"y":421,"width":235,"height":12}},{"id":"a635b15d-6bde-40b6-b474-c4948eed4273","block_type":"box","text":"Mergers and acquisitions","page_number":251,"box":{"x":117,"y":457,"width":206,"height":12}},{"id":"d46b5e25-e767-498b-8a10-e6a6f197ba51","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as","page_number":251,"box":{"x":116,"y":485,"width":745,"height":12}},{"id":"edda5408-dfd7-4d19-9fe9-6d516fedbde3","block_type":"box","text":"minority shareholders. Management should provide an assessment of the proposed transaction’s","page_number":251,"box":{"x":117,"y":501,"width":725,"height":12}},{"id":"6f3ae928-199a-4e1a-b37f-58b9b3cca17a","block_type":"box","text":"strategic and financial rationale, along with its execution and operational risks. We review each","page_number":251,"box":{"x":116,"y":516,"width":709,"height":12}},{"id":"fff9dd2c-44d2-4235-bd40-bf8ed63c1d07","block_type":"box","text":"transaction independently based on these factors and the degree to which the transaction enhances","page_number":251,"box":{"x":116,"y":532,"width":748,"height":12}},{"id":"a0a049f0-0093-4dbb-8eae-189ad67617dd","block_type":"box","text":"shareholder value. The board might consider establishing an ad hoc transaction committee to","page_number":251,"box":{"x":116,"y":547,"width":699,"height":12}},{"id":"6cbfae3e-06e3-4b83-8294-a763d1901cd7","block_type":"box","text":"undertake an independent assessment of a significant merger or acquisition, in advance of making its","page_number":251,"box":{"x":117,"y":563,"width":757,"height":12}},{"id":"9a07b820-b3f0-4dd2-b383-1f9a9d1e5fa8","block_type":"box","text":"recommendation to shareholders.","page_number":251,"box":{"x":117,"y":578,"width":254,"height":10}},{"id":"c0d6f560-3fad-4c3d-85ea-c1d4e7d6eeca","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial","page_number":251,"box":{"x":116,"y":607,"width":703,"height":12}},{"id":"35e4a32b-e37e-4c5e-9422-10eb3c71b5af","block_type":"box","text":"interests.","page_number":251,"box":{"x":117,"y":623,"width":72,"height":9}},{"id":"56107b3f-eeb8-45b6-9db8-894104c83b64","block_type":"box","text":"Anti-takeover defenses","page_number":251,"box":{"x":116,"y":651,"width":190,"height":10}},{"id":"9d0e7093-74eb-476c-8159-598ecd6b85b3","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":251,"box":{"x":117,"y":680,"width":753,"height":12}},{"id":"8187212b-a5bb-4c68-a702-196899727e1e","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered","page_number":251,"box":{"x":116,"y":696,"width":726,"height":12}},{"id":"ce15ed1e-b405-41dd-be2a-88caf045c21e","block_type":"box","text":"long-term shareholder value. By exception, a poison pill may be supported if its purpose is to delay a","page_number":251,"box":{"x":117,"y":711,"width":746,"height":12}},{"id":"be3d28b1-4bde-4e18-88b0-0b924b229249","block_type":"box","text":"takeover that is considered sub-optimal and enable management to seek an improved offer. Similarly,","page_number":251,"box":{"x":116,"y":727,"width":754,"height":12}},{"id":"2c74bf3d-bbb5-4911-8825-7adbc6acdcb9","block_type":"box","text":"management could make the case to use a poison pill to block a shareholder activism campaign that","page_number":251,"box":{"x":117,"y":742,"width":746,"height":12}},{"id":"97ccba3f-2d6d-49ea-9b91-16f19f2b3718","block_type":"box","text":"may be counter to the interests of other investors. Defense mechanisms introduced in these","page_number":251,"box":{"x":117,"y":758,"width":681,"height":12}},{"id":"0b008b67-1d36-473e-a663-406a113f7ae4","block_type":"box","text":"circumstances should be limited in term and threshold, and also be closely monitored by the","page_number":251,"box":{"x":116,"y":773,"width":683,"height":12}},{"id":"ae44efa7-354b-411b-bbbd-539689bcfaea","block_type":"box","text":"independent members of the board. We consider it good practice for companies to put to a shareholder","page_number":251,"box":{"x":117,"y":789,"width":766,"height":12}},{"id":"d8b89761-8a4e-4582-934a-22dc7d937a60","block_type":"box","text":"vote any mechanisms expected to be in place for more than 12 months.","page_number":251,"box":{"x":116,"y":804,"width":532,"height":12}},{"id":"df56ef0c-e8c5-4566-94c4-5b93be616a7b","block_type":"box","text":"Shareholder activism","page_number":251,"box":{"x":116,"y":833,"width":175,"height":9}},{"id":"33821db4-4a1e-48bc-a315-9052738e8995","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to","page_number":251,"box":{"x":116,"y":862,"width":732,"height":12}},{"id":"0dbfbca4-04c8-492c-ae5b-ba5929169de6","block_type":"box","text":"understand their analysis and objectives, once they have publicly disclosed their campaign. We may","page_number":251,"box":{"x":117,"y":877,"width":748,"height":12}},{"id":"f1001263-cdc3-4969-bba3-a2ebffa1aee2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":251,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"f9fb4bfd-11f8-49de-bbbc-f8f4a3e08ab7","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":251,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"c73b97ef-b5d2-47f0-9f34-3d945d9cede3","block_type":"box","text":"11","page_number":251,"box":{"x":866,"y":909,"width":15,"height":9}},{"id":"abf02914-d730-4be7-96b6-c448b50c2d7f","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":251,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"a094e89f-3ae6-4f03-b7f1-bc5594d7b038","block_type":"box","text":"also engage with company management and possibly board members, especially those the activist","page_number":252,"box":{"x":116,"y":87,"width":741,"height":12}},{"id":"5b6044d8-a856-4240-9038-fd419da6da2e","block_type":"box","text":"may be seeking to replace. In our assessment, we evaluate various factors, including the concerns","page_number":252,"box":{"x":117,"y":102,"width":737,"height":13}},{"id":"7dbd2af8-7f6a-4a02-8515-8dea3800bcb1","block_type":"box","text":"raised by the activist and the case for change; the quality of both the activist’s and management’s","page_number":252,"box":{"x":117,"y":118,"width":728,"height":12}},{"id":"30758b5c-5792-4190-ae29-8b7bc24c56d7","block_type":"box","text":"plans; and the qualifications of each party’s candidates. We evaluate each contested situation by","page_number":252,"box":{"x":117,"y":134,"width":723,"height":12}},{"id":"515f0306-8e3a-4d94-a747-38f2cd7eb934","block_type":"box","text":"assessing the potential financial outcome for our clients as minority shareholders.","page_number":252,"box":{"x":116,"y":149,"width":610,"height":12}},{"id":"6ad3e1c1-275b-42f0-8ae7-efe864b92aa4","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent","page_number":252,"box":{"x":116,"y":181,"width":728,"height":12}},{"id":"f9c15fdd-bec8-4ace-8d72-39dce0448cda","block_type":"box","text":"judgment, or the relevant portfolio manager has determined that there is a case for change to enhance","page_number":252,"box":{"x":115,"y":196,"width":767,"height":12}},{"id":"b7d0be21-d80c-4d79-9df5-a99b43728e2a","block_type":"box","text":"shareholder value, or if the incumbent board members do not demonstrate the relevant skills and","page_number":252,"box":{"x":116,"y":212,"width":725,"height":11}},{"id":"21f0c405-ba0c-4b4c-8ba0-816ebb836dc7","block_type":"box","text":"expertise or have a poor track record of protecting shareholders’ interests.","page_number":252,"box":{"x":116,"y":227,"width":556,"height":12}},{"id":"11eb10d1-2555-452a-89b0-e74290b02718","block_type":"box","text":"Significant shareholders and related party transactions","page_number":252,"box":{"x":116,"y":259,"width":446,"height":12}},{"id":"c51f4d81-d439-44b8-9c8f-b94defce1074","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":252,"box":{"x":117,"y":291,"width":768,"height":12}},{"id":"aa348725-61f3-4c4b-9b9a-7584e5f8eb13","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":252,"box":{"x":117,"y":306,"width":534,"height":12}},{"id":"f02698b4-2bcf-426f-ac47-6f1bbe3f30f0","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or","page_number":252,"box":{"x":116,"y":338,"width":751,"height":12}},{"id":"43911c1d-9a69-40dd-b104-e1ee369b7dee","block_type":"box","text":"companies affiliated with the public company, to be disclosed in detail and conducted on terms similar","page_number":252,"box":{"x":116,"y":354,"width":760,"height":12}},{"id":"9990c96a-22aa-40b6-a9bf-cefabfc89167","block_type":"box","text":"to what would objectively have been agreed with a non-related party. In our view, such transactions","page_number":252,"box":{"x":116,"y":369,"width":743,"height":12}},{"id":"2c9f86f6-ceed-4c33-8b70-bec6d44f4d02","block_type":"box","text":"should be reviewed and approved by the independent members of the board, and if voted on, only","page_number":252,"box":{"x":116,"y":385,"width":734,"height":12}},{"id":"54337e2b-f28d-46d2-9500-f5126ebd39f7","block_type":"box","text":"disinterested shareholders should vote.","page_number":252,"box":{"x":116,"y":400,"width":297,"height":10}},{"id":"686a213c-0066-47da-b026-f9713c7f5985","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":252,"box":{"x":257,"y":440,"width":490,"height":12}},{"id":"95edd3e8-0c00-4a9f-9236-00265104aa15","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s","page_number":252,"box":{"x":117,"y":472,"width":742,"height":12}},{"id":"4cadde66-81e7-4084-b009-085ff9526fa6","block_type":"box","text":"strategy, its implementation and financial performance, as well as to assess the quality of management","page_number":252,"box":{"x":116,"y":487,"width":770,"height":12}},{"id":"3324ea29-06a8-483f-ac1e-4379d3a9af33","block_type":"box","text":"and operations and potential for the company to create shareholder value over time. We consider it","page_number":252,"box":{"x":116,"y":503,"width":741,"height":12}},{"id":"6be63d5b-d2d3-4b63-8c8a-27e869b75377","block_type":"box","text":"good practice for the board to oversee corporate reporting and the policies and procedures","page_number":252,"box":{"x":116,"y":518,"width":679,"height":12}},{"id":"c82a29c8-034c-4687-8f96-0df1b274902b","block_type":"box","text":"underpinning the internal audit function and external audit.","page_number":252,"box":{"x":117,"y":534,"width":436,"height":12}},{"id":"cee9cd31-0fd7-4feb-af74-83f71e823d90","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other","page_number":252,"box":{"x":116,"y":566,"width":734,"height":12}},{"id":"db22167d-a658-4a69-91ea-6cb3572f7988","block_type":"box","text":"stakeholders, on its financial performance and position. It should provide an accurate and balanced","page_number":252,"box":{"x":116,"y":581,"width":742,"height":12}},{"id":"f464ee44-6075-4351-b0f2-2d50fcd2c61f","block_type":"box","text":"assessment of the risks and opportunities the company faces in realizing its long-term strategy.","page_number":252,"box":{"x":116,"y":597,"width":712,"height":12}},{"id":"50710f00-6d5c-469a-a57c-e0c6c4a85144","block_type":"box","text":"Accordingly, the assumptions made by management and reviewed by the auditor in preparing the","page_number":252,"box":{"x":116,"y":612,"width":729,"height":12}},{"id":"dde5e414-26fb-4910-b0f2-290617d02097","block_type":"box","text":"financial statements should be reasonable and justified. Financial statements should be prepared in","page_number":252,"box":{"x":116,"y":628,"width":744,"height":12}},{"id":"cc588af1-81a0-4109-84e3-d0902d877708","block_type":"box","text":"accordance with globally developed reporting standards and any divergence from generally accepted","page_number":252,"box":{"x":116,"y":643,"width":755,"height":12}},{"id":"8f5bc468-4322-4590-a51d-44a21a4600c1","block_type":"box","text":"accounting principles should be explained in detail and justified. Accounting restatements should be","page_number":252,"box":{"x":116,"y":659,"width":745,"height":12}},{"id":"d55603fc-fd2b-49fd-b83c-0ceab9568895","block_type":"box","text":"explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":252,"box":{"x":116,"y":674,"width":631,"height":12}},{"id":"4c36603d-a2c0-4bba-87b0-1eeadd6e6368","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":252,"box":{"x":117,"y":706,"width":763,"height":12}},{"id":"10330248-e270-428c-b5bc-0837f0997c52","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction,","page_number":252,"box":{"x":117,"y":721,"width":731,"height":13}},{"id":"79b3f8d7-3c17-4cfe-ba79-0c3d995ae4ac","block_type":"box","text":"non-financial information, internal control frameworks and Enterprise Risk Management systems. In","page_number":252,"box":{"x":117,"y":737,"width":737,"height":12}},{"id":"bf2bbdb2-9a1d-42b4-a2e1-fe35dbb30f9d","block_type":"box","text":"our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":252,"box":{"x":116,"y":752,"width":725,"height":13}},{"id":"c87a479a-f69b-495d-830c-bc0d8d511ae7","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders. Audit committees","page_number":252,"box":{"x":116,"y":768,"width":762,"height":12}},{"id":"bccca11e-6b7b-4097-bc9d-7b1425491f5c","block_type":"box","text":"should have a procedure in place for assessing the independence of the auditor and the quality of the","page_number":252,"box":{"x":116,"y":784,"width":753,"height":12}},{"id":"69ccc378-d595-4bb4-9caf-900042f7a530","block_type":"box","text":"external audit process annually.","page_number":252,"box":{"x":116,"y":799,"width":235,"height":12}},{"id":"1616ab49-9f76-444f-9983-cec35b827a0c","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to","page_number":252,"box":{"x":116,"y":831,"width":771,"height":12}},{"id":"c5269d5f-1bb9-4288-9318-d99756e32928","block_type":"box","text":"how a company manages risks or generates revenue. BAIS finds it helpful to our understanding when","page_number":252,"box":{"x":117,"y":846,"width":758,"height":12}},{"id":"d2b4c652-597a-4e08-99a6-5dfe9f7058b7","block_type":"box","text":"companies provide robust, standardized disclosures on their material sustainability-related risks and","page_number":252,"box":{"x":116,"y":862,"width":747,"height":12}},{"id":"3269a3dd-421b-49b2-af75-397f9b9ecd64","block_type":"box","text":"opportunities. The International Sustainability Standards Board (ISSB) is one entity working to meet","page_number":252,"box":{"x":116,"y":877,"width":743,"height":12}},{"id":"2d5cd8aa-8789-4709-8bb1-d2852800c165","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":252,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"181a446c-fda2-489f-a1f6-6cea6cb9c45e","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":252,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"afb617b4-3020-4ab1-bb1b-1d8f2fddf1f6","block_type":"box","text":"12","page_number":252,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"5e5e68b0-9d2c-4712-8733-d03da214ade1","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":252,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"49900a64-683f-494a-8956-b11ef72d594f","block_type":"box","text":"these objectives through its reporting standards, which may be helpful to companies in preparing such","page_number":253,"box":{"x":116,"y":87,"width":763,"height":12}},{"id":"e6687116-11bb-4cc2-8da0-d0367f0de45c","block_type":"box","text":"reports.","page_number":253,"box":{"x":117,"y":103,"width":54,"height":11}},{"id":"a882ec6b-a1fb-4d4c-919b-5f110159b70b","block_type":"box","text":"9","page_number":253,"box":{"x":173,"y":103,"width":5,"height":6}},{"id":"5fb3589c-fd9a-442c-9097-3836b817bb11","block_type":"box","text":"However, we do not mandate any specific disclosure framework, and note that companies in","page_number":253,"box":{"x":179,"y":102,"width":696,"height":13}},{"id":"bd0722e9-f092-4d71-9515-fe81e2167f3f","block_type":"box","text":"certain jurisdictions are subject to mandatory reporting requirements under standards specified by","page_number":253,"box":{"x":116,"y":118,"width":731,"height":12}},{"id":"846fef3d-3305-4724-bd1e-c0d902b62983","block_type":"box","text":"policy makers.","page_number":253,"box":{"x":117,"y":134,"width":105,"height":12}},{"id":"38ecb46e-2590-479d-819d-e939d05db6ae","block_type":"box","text":"10","page_number":253,"box":{"x":224,"y":134,"width":11,"height":6}},{"id":"80580261-a14e-42c0-994d-6a4b6e9ca6f8","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":253,"box":{"x":117,"y":161,"width":765,"height":12}},{"id":"7318d797-c23a-4b1d-a5fb-aedd8b84b5f6","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for","page_number":253,"box":{"x":116,"y":176,"width":759,"height":12}},{"id":"1d39778d-5d0c-4d92-a6b6-0d3934bd6687","block_type":"box","text":"employees, and potentially other stakeholders, can be a useful mechanism for ensuring that senior","page_number":253,"box":{"x":116,"y":192,"width":738,"height":12}},{"id":"29d80ec4-e71a-4b1e-b163-889b169c1588","block_type":"box","text":"management and the board are aware of potential misconduct or breaches in risk management and","page_number":253,"box":{"x":117,"y":207,"width":745,"height":12}},{"id":"0d96bb96-f885-4ad6-ad40-29929191a2e7","block_type":"box","text":"internal control processes.","page_number":253,"box":{"x":117,"y":223,"width":200,"height":12}},{"id":"d28aef3d-2467-4200-bb64-db738bc3a930","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in","page_number":253,"box":{"x":116,"y":250,"width":748,"height":12}},{"id":"7208802b-4a85-41f1-b532-7b8d21b17d8f","block_type":"box","text":"the quality of corporate reporting. It is helpful when the audit report gives some insight into the scope","page_number":253,"box":{"x":116,"y":266,"width":752,"height":12}},{"id":"44417d04-ee30-4fda-9d4b-2869e6d1ca28","block_type":"box","text":"and focus of the audit, as well as any critical audit matters identified and how these were resolved. A","page_number":253,"box":{"x":116,"y":281,"width":751,"height":12}},{"id":"a955d064-8726-4482-9a7b-69a795560389","block_type":"box","text":"comprehensive and effective audit is time and resource intensive, and the audit fee should be","page_number":253,"box":{"x":116,"y":297,"width":700,"height":12}},{"id":"cd28ab79-01fd-42f8-a6c3-880c5ab8a682","block_type":"box","text":"commensurate. Fees paid to the audit firm for non-audit consulting should not exceed the audit fee to a","page_number":253,"box":{"x":116,"y":312,"width":771,"height":12}},{"id":"60caf351-607e-438d-8f1a-5ee9649f130f","block_type":"box","text":"degree that may prompt concerns about the independence of the audit. The audit committee should","page_number":253,"box":{"x":116,"y":328,"width":746,"height":12}},{"id":"bfb5303d-e582-452b-b1d3-41b503ae1d90","block_type":"box","text":"explain its position on auditor tenure and how it confirmed that the auditor remained independent.","page_number":253,"box":{"x":116,"y":343,"width":728,"height":12}},{"id":"9b9bdf74-dc29-4681-971f-4373d6609d9d","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or","page_number":253,"box":{"x":116,"y":370,"width":740,"height":12}},{"id":"33b6cb75-0031-4394-8a34-49f1aac354a4","block_type":"box","text":"there are material misstatements in financial reports. In markets where relevant, we may vote against a","page_number":253,"box":{"x":116,"y":386,"width":771,"height":12}},{"id":"4d498ce3-b540-41e0-ba81-96c434abb2ed","block_type":"box","text":"proposal to approve the financial statements or the discharge of the board when we are concerned","page_number":253,"box":{"x":117,"y":401,"width":737,"height":12}},{"id":"5970cf5d-4715-47cf-8e9f-e7cae6a2f68f","block_type":"box","text":"about the quality of corporate reporting or the audit. We may vote against proposals to appoint the","page_number":253,"box":{"x":116,"y":417,"width":734,"height":12}},{"id":"92bda516-a515-4c88-ad9f-3134d1cba814","block_type":"box","text":"auditor, ratify the audit report, or approve the audit fee if we are concerned about the auditor’s","page_number":253,"box":{"x":116,"y":432,"width":702,"height":12}},{"id":"43136fa5-ec3c-4ed9-a8ae-93e8990ac6fa","block_type":"box","text":"independence, the quality of the audit, or there are material misstatements in financial reports and the","page_number":253,"box":{"x":117,"y":448,"width":760,"height":12}},{"id":"ee8eb542-5bc8-42d8-8e2b-5e8fc303a675","block_type":"box","text":"board has not established reasonable remediation plans.","page_number":253,"box":{"x":117,"y":464,"width":426,"height":11}},{"id":"551bc053-6b92-4974-8f7a-1e2fe65b9d0c","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":253,"box":{"x":318,"y":496,"width":369,"height":10}},{"id":"fbb5d41f-3479-4fec-9734-bbc0f551d2d4","block_type":"box","text":"General shareholder meetings","page_number":253,"box":{"x":116,"y":524,"width":247,"height":12}},{"id":"c4d453f7-1407-414c-a0b4-5095b50bb758","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine","page_number":253,"box":{"x":117,"y":551,"width":768,"height":12}},{"id":"278d0278-3f57-4fa4-be3a-af21ff922169","block_type":"box","text":"items of business are discussed and voted on by shareholders in attendance or submitting proxy votes.","page_number":253,"box":{"x":117,"y":567,"width":771,"height":12}},{"id":"da66dac1-6e4c-43d8-add7-64d051cbb734","block_type":"box","text":"Companies should disclose materials relevant to the shareholder meeting sufficiently in advance so","page_number":253,"box":{"x":117,"y":582,"width":742,"height":12}},{"id":"ce797c68-6829-4953-9728-5e17f4565d4a","block_type":"box","text":"that shareholders can take them into consideration in their voting decisions. Many companies offer","page_number":253,"box":{"x":116,"y":598,"width":736,"height":12}},{"id":"daa465ff-4f15-49bd-92c9-184d523825ac","block_type":"box","text":"shareholders the option of participating in the meeting virtually which, whilst welcome, should not limit","page_number":253,"box":{"x":116,"y":613,"width":758,"height":12}},{"id":"d61133e9-e60a-42da-967e-a05c042e4e8c","block_type":"box","text":"the rights of shareholders to participate as they would during an in-person meeting.","page_number":253,"box":{"x":116,"y":629,"width":622,"height":12}},{"id":"98f5bed8-9736-448f-ac8c-b0d3945c5db1","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are","page_number":253,"box":{"x":116,"y":656,"width":757,"height":12}},{"id":"8cadaa2c-c983-4ed2-a7df-a6dc369a3706","block_type":"box","text":"not provided in a timely manner or do not provide sufficient information for us to make an informed","page_number":253,"box":{"x":117,"y":671,"width":728,"height":12}},{"id":"f789db11-8c88-4b1a-ac6b-1c38f176f6a4","block_type":"box","text":"voting decision. We may vote against directors if the format of the shareholder meeting does not","page_number":253,"box":{"x":116,"y":687,"width":715,"height":12}},{"id":"330337e7-b141-4a31-ad0c-67bd6f47c966","block_type":"box","text":"accommodate reasonable shareholder participation.","page_number":253,"box":{"x":116,"y":702,"width":385,"height":12}},{"id":"afb4586d-9179-4539-92eb-6d79714f6ea0","block_type":"box","text":"Bylaw amendments","page_number":253,"box":{"x":117,"y":730,"width":155,"height":12}},{"id":"63b29ca9-3a2e-4df7-9c0c-cff5f30e8fc0","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally","page_number":253,"box":{"x":116,"y":757,"width":748,"height":12}},{"id":"3ef0c251-8eb4-4755-a170-8a6fe254718c","block_type":"box","text":"support those that are aligned with the interests of minority shareholders. Any material changes to the","page_number":253,"box":{"x":116,"y":772,"width":755,"height":12}},{"id":"452f5634-ae9b-46b2-8ed5-4d8c86e8afee","block_type":"box","text":"bylaws should be explained in detail and put to a shareholder vote.","page_number":253,"box":{"x":117,"y":788,"width":494,"height":12}},{"id":"35accfb1-1787-41fd-b5ca-4e58e93250fc","block_type":"box","text":"9","page_number":253,"box":{"x":143,"y":813,"width":4,"height":5}},{"id":"61560bc8-120c-4be8-bd32-04ea0cdfc762","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":253,"box":{"x":170,"y":813,"width":666,"height":10}},{"id":"c1d41fbd-8f85-47e0-ac78-c8a242bc24f9","block_type":"box","text":"Foundation. Please refer to the IFRS website to learn more about the framework and standards S1 “General","page_number":253,"box":{"x":171,"y":826,"width":641,"height":8}},{"id":"d371e8ad-745e-4041-8df0-edfca62af30d","block_type":"box","text":"Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related Disclosures.”","page_number":253,"box":{"x":171,"y":839,"width":672,"height":9}},{"id":"4d56d522-9d77-4844-bbb9-5ec4e144b818","block_type":"box","text":"10","page_number":253,"box":{"x":144,"y":854,"width":8,"height":5}},{"id":"94c92492-158b-4df5-bd07-85c55c148875","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional-profiles","page_number":253,"box":{"x":170,"y":854,"width":705,"height":9}},{"id":"399dc9f6-b451-4678-b29c-355543e68970","block_type":"box","text":"issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company","page_number":253,"box":{"x":170,"y":867,"width":615,"height":9}},{"id":"697fcc5d-8e62-43cb-a7f4-06078cad011e","block_type":"box","text":"reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en","page_number":253,"box":{"x":170,"y":880,"width":468,"height":9}},{"id":"8c87b4dd-4974-4d1e-bfc9-67566cbadfd1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":253,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"48b4162b-6844-43cd-afb0-1782738af762","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":253,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"f09e2119-34f5-421f-84ab-1100d97ddf82","block_type":"box","text":"13","page_number":253,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"3fcbf2ec-c7e3-4f79-885d-9808f2a86923","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":253,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"27189b9f-ff66-4066-b413-ef8ae97ad08a","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce","page_number":254,"box":{"x":116,"y":87,"width":753,"height":12}},{"id":"48808a69-b899-4944-9ca8-e20d59c8b63e","block_type":"box","text":"additional burdens. We may vote against directors if material changes are made to the bylaws without","page_number":254,"box":{"x":116,"y":102,"width":760,"height":13}},{"id":"1d64b199-1c8e-46c6-a43b-7872c8d1a506","block_type":"box","text":"shareholder approval.","page_number":254,"box":{"x":116,"y":118,"width":167,"height":12}},{"id":"a59d6dc6-1ccb-4620-a666-cdd76adbe7d8","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":254,"box":{"x":117,"y":150,"width":688,"height":12}},{"id":"a014a23e-32b4-408d-bd04-c29b3faa09ac","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to call a special meeting of","page_number":254,"box":{"x":117,"y":165,"width":704,"height":12}},{"id":"64709715-192c-4b27-bea8-d3a49d9e5abe","block_type":"box","text":"shareholders. The shareholding required to exercise this right should balance its utility with the cost to","page_number":254,"box":{"x":116,"y":181,"width":761,"height":12}},{"id":"d783314b-0b37-4a82-9d37-4a2bf862f8f6","block_type":"box","text":"the company of holding special meetings.","page_number":254,"box":{"x":116,"y":196,"width":313,"height":12}},{"id":"dd1a6324-e7e5-4cfd-9f55-c63b09f58c19","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":254,"box":{"x":117,"y":228,"width":688,"height":12}},{"id":"aadc3553-5591-4902-9678-53441a9d1d34","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to nominate directors to the","page_number":254,"box":{"x":117,"y":243,"width":710,"height":12}},{"id":"0d8ac56a-3ca0-4ecf-80c8-acb872180b02","block_type":"box","text":"company’s board. The threshold for this right should be set so that shareholders can exercise it without","page_number":254,"box":{"x":116,"y":259,"width":770,"height":12}},{"id":"05e94676-a159-4d1d-91b2-2867c9202cc2","block_type":"box","text":"being unduly disruptive to the board’s own nomination process.","page_number":254,"box":{"x":117,"y":274,"width":473,"height":12}},{"id":"ef2ff2f6-5c67-4c74-ad7f-c16afce8a286","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability","page_number":254,"box":{"x":116,"y":306,"width":728,"height":12}},{"id":"6014e65e-d249-437c-8880-964b3770a5cf","block_type":"box","text":"mechanisms. We may vote for a shareholder proposal seeking the addition of either of these","page_number":254,"box":{"x":117,"y":321,"width":691,"height":12}},{"id":"54c5557a-6fef-4c6d-ac0b-e87ddbaea309","block_type":"box","text":"provisions to a company’s bylaws.","page_number":254,"box":{"x":117,"y":337,"width":258,"height":12}},{"id":"7dcb0730-a3c5-4f5c-baf1-79e80d88fe9f","block_type":"box","text":"Change of domicile","page_number":254,"box":{"x":116,"y":368,"width":160,"height":12}},{"id":"60928519-bef8-4502-aa2b-a038cacd00f2","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the","page_number":254,"box":{"x":116,"y":400,"width":722,"height":12}},{"id":"252f390b-aa3d-400d-97e0-fa668d3b5fe8","block_type":"box","text":"rationale for doing so is consistent with the company’s long-term strategy and business model and the","page_number":254,"box":{"x":117,"y":415,"width":761,"height":12}},{"id":"e1543a34-2ff1-4b0f-b551-502d390386c6","block_type":"box","text":"related costs are immaterial.","page_number":254,"box":{"x":117,"y":431,"width":215,"height":9}},{"id":"67be37f0-21b5-40d2-9f03-6b6e1fcb8fb4","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem","page_number":254,"box":{"x":116,"y":462,"width":757,"height":12}},{"id":"85c0fe6b-be5c-4a5d-84a7-407773196169","block_type":"box","text":"aligned with our clients’ financial interests.","page_number":254,"box":{"x":116,"y":478,"width":318,"height":12}},{"id":"3da090cf-473b-4b21-aa7b-7b8a213131b6","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":254,"box":{"x":116,"y":509,"width":504,"height":12}},{"id":"2f3e71a8-5be5-4f5b-93fc-5cfffc5529d6","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and","page_number":254,"box":{"x":117,"y":541,"width":762,"height":12}},{"id":"89b2861b-0c02-4cac-aef2-d1344aad03da","block_type":"box","text":"explained in the context of long-term strategy and business dynamics. Such changes may significantly","page_number":254,"box":{"x":116,"y":556,"width":764,"height":12}},{"id":"420ca75f-c70a-41c7-99cb-11e3234bd6ec","block_type":"box","text":"alter an investor’s views on the suitability of a company for their investment strategy or portfolio.","page_number":254,"box":{"x":116,"y":572,"width":716,"height":12}},{"id":"dd89e8d7-525d-4ff4-955c-cc53cb31937a","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its","page_number":254,"box":{"x":116,"y":603,"width":743,"height":12}},{"id":"37df05ac-4321-46a1-9abe-f06b96a1699e","block_type":"box","text":"business if the board has not provided a credible argument for change.","page_number":254,"box":{"x":117,"y":619,"width":530,"height":12}},{"id":"4d6a5bae-49b7-4b46-bd09-fb9554d54af6","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":254,"box":{"x":380,"y":658,"width":244,"height":10}},{"id":"b4419091-1dde-4244-b067-b10bcb90f877","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals","page_number":254,"box":{"x":116,"y":690,"width":750,"height":12}},{"id":"0cf2f389-6eb4-4772-b5fb-5f9cdb97ef34","block_type":"box","text":"to the general shareholder meeting asking a company to take a particular course of action subject to","page_number":254,"box":{"x":116,"y":705,"width":744,"height":13}},{"id":"239d455b-d4dd-4569-a593-2a62c4382468","block_type":"box","text":"the proposal being supported by a majority of votes cast at the meeting. The topics raised can address","page_number":254,"box":{"x":116,"y":721,"width":762,"height":12}},{"id":"0bd7e9fd-69a1-4b15-b8b4-47ba68f94413","block_type":"box","text":"a range of matters that may be relevant to a company’s business.","page_number":254,"box":{"x":116,"y":736,"width":486,"height":13}},{"id":"ab0895ac-69ca-496e-a925-01a78b076e98","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":254,"box":{"x":116,"y":768,"width":762,"height":12}},{"id":"d3846144-55f6-4929-ba9d-0da932e2000b","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with","page_number":254,"box":{"x":116,"y":784,"width":691,"height":12}},{"id":"5f7ea461-716b-4127-8b8b-455a119a6ad2","block_type":"box","text":"shareholders’ interests, and what impact the proposal being acted upon might have on financial","page_number":254,"box":{"x":116,"y":799,"width":708,"height":12}},{"id":"b3c3b3ad-1b46-426d-b553-37397a3ef435","block_type":"box","text":"performance.","page_number":254,"box":{"x":117,"y":814,"width":96,"height":12}},{"id":"9fb004e9-9d39-45bb-afa8-a42a0fbb2265","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or","page_number":254,"box":{"x":116,"y":846,"width":711,"height":12}},{"id":"f4fa13bd-1ded-4315-a429-9114d0a8cd25","block_type":"box","text":"performance is to engage to understand the apparent difference in perspective. If we are concerned a","page_number":254,"box":{"x":117,"y":861,"width":760,"height":13}},{"id":"eea3ff28-acfe-4fc0-9a51-39a12f8e6fa7","block_type":"box","text":"company is not acting in shareholders’ financial interests, we may vote against the election of directors.","page_number":254,"box":{"x":116,"y":877,"width":772,"height":12}},{"id":"d1d4a5a1-43cc-4148-8d33-e6160e588115","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":254,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"9bdc5f53-af6d-41b5-8c5c-ebcd241ff41c","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":254,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"f66703ec-c18f-40a7-9e2e-aff16bc695b3","block_type":"box","text":"14","page_number":254,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"b8ef3eb9-3d32-46bc-b6e5-b82e9fab559e","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":254,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"f8c95da9-fc20-4cf3-80ff-13bd236433be","block_type":"box","text":"We may support a relevant shareholder proposal if doing so is aligned with our clients’ financial","page_number":255,"box":{"x":116,"y":87,"width":712,"height":12}},{"id":"03ffb8ca-171f-4560-9b82-a33ffe4381f7","block_type":"box","text":"interests. We generally do not support shareholder proposals that are legally binding on the company,","page_number":255,"box":{"x":117,"y":103,"width":760,"height":12}},{"id":"b69bda84-22c1-43c9-9c70-3b5dc953ef76","block_type":"box","text":"seek to alter a company’s strategy or direct its operations, or are unrelated to how a company","page_number":255,"box":{"x":116,"y":118,"width":700,"height":12}},{"id":"1fe81c76-7639-4cf1-9a72-1a54ebcae568","block_type":"box","text":"manages risk or generates financial returns.","page_number":255,"box":{"x":117,"y":134,"width":331,"height":12}},{"id":"e15e015b-52ae-4671-b99b-ff3418136583","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place","page_number":255,"box":{"x":117,"y":164,"width":737,"height":12}},{"id":"1ea106b8-8fa1-4e76-a13d-c346383231e9","block_type":"box","text":"restrictions and limitations on how we can interact with the companies in which we invest on behalf of","page_number":255,"box":{"x":117,"y":180,"width":755,"height":12}},{"id":"4241dfd9-fd02-4c2e-8ae7-4b6ffb891c8a","block_type":"box","text":"our clients, including our ability to submit shareholder proposals. We do not submit shareholder","page_number":255,"box":{"x":116,"y":195,"width":712,"height":12}},{"id":"d7f4a914-1a36-45d0-829e-ba741eeb28ae","block_type":"box","text":"proposals but can vote, on behalf of clients who authorize us to do so, on proposals put forth by others.","page_number":255,"box":{"x":117,"y":211,"width":770,"height":12}},{"id":"641fa760-1548-4d40-8fa6-d8b586c044ce","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":255,"box":{"x":351,"y":249,"width":302,"height":10}},{"id":"f426dce6-26c5-41b4-8813-ea5823a36fb5","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the","page_number":255,"box":{"x":116,"y":280,"width":733,"height":12}},{"id":"37bc557e-78fd-43e9-a550-e8056d874ece","block_type":"box","text":"jurisdictions in which they engage. When a corporation reports material financial risk related to policy","page_number":255,"box":{"x":115,"y":295,"width":754,"height":12}},{"id":"e2b00982-0c49-4f5a-a2b2-684f6b0bdd33","block_type":"box","text":"and or regulatory changes, BAIS may seek to understand how it is addressing the material risk","page_number":255,"box":{"x":116,"y":311,"width":708,"height":12}},{"id":"b10c7089-aebd-4268-8f8b-75a4aeb9b886","block_type":"box","text":"identified. We seek to understand how companies engage in corporate political activities and ensure","page_number":255,"box":{"x":117,"y":326,"width":748,"height":12}},{"id":"d311abe4-ab76-4c00-ab1f-fc7e0c5efd4c","block_type":"box","text":"that their participation is consistent with their public statements on policy matters material to the","page_number":255,"box":{"x":116,"y":342,"width":714,"height":12}},{"id":"4f990d89-2760-4787-87a2-3b4f8a3826cb","block_type":"box","text":"company’s long-term strategy. The board should be aware of the approach taken by management on","page_number":255,"box":{"x":116,"y":357,"width":756,"height":12}},{"id":"f5c23dcd-3cd3-42f9-84c9-cbd13ca484bb","block_type":"box","text":"corporate political activities as there can be reputational risks arising from inconsistencies between a","page_number":255,"box":{"x":116,"y":373,"width":752,"height":12}},{"id":"5119841b-959f-48ab-b41b-8ad0bff0411b","block_type":"box","text":"company’s policy engagement and stated policy positions. Companies should, as a minimum, meet all","page_number":255,"box":{"x":116,"y":388,"width":764,"height":12}},{"id":"e35ec07f-d048-439a-a514-64124a553f76","block_type":"box","text":"regulatory disclosure requirements on political activities. We may engage a company where we would","page_number":255,"box":{"x":117,"y":404,"width":759,"height":12}},{"id":"7800f950-85f9-465f-b24a-4f5e2befbefc","block_type":"box","text":"like to better understand its approach to policy engagement, where relevant.","page_number":255,"box":{"x":117,"y":419,"width":569,"height":12}},{"id":"ae84a596-1a2f-4c8e-87da-3c290dbbffa4","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their","page_number":255,"box":{"x":116,"y":450,"width":737,"height":12}},{"id":"2a56f537-21ba-40c1-a126-985715a0ed7f","block_type":"box","text":"policy priorities and the policy positions of the trade associations of which they are active members and","page_number":255,"box":{"x":117,"y":465,"width":770,"height":13}},{"id":"e4b13e34-b5e7-4dd8-b31c-627e6031bff8","block_type":"box","text":"any engagements undertaken by trade associations on behalf of members.","page_number":255,"box":{"x":116,"y":481,"width":562,"height":12}},{"id":"deb6b2b9-fd73-4e79-93e6-764ca4ee3ea8","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s","page_number":255,"box":{"x":116,"y":512,"width":712,"height":12}},{"id":"e388cc33-dd02-4539-9c94-8fd71a5be5c2","block_type":"box","text":"disclosures are insufficient to address the material risk it has identified.","page_number":255,"box":{"x":116,"y":527,"width":530,"height":10}},{"id":"09e92f30-7d7d-4659-a401-ab6f1bab9573","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":255,"box":{"x":223,"y":565,"width":559,"height":10}},{"id":"5ad9931f-48c5-4600-aaf2-a9c1b99bf235","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their","page_number":255,"box":{"x":116,"y":596,"width":751,"height":12}},{"id":"c1330614-1998-453d-990c-2c81a59b6527","block_type":"box","text":"business operations. In our experience, sustainability-related factors","page_number":255,"box":{"x":117,"y":612,"width":505,"height":12}},{"id":"e5be0d52-a01d-432f-8523-6f796f545405","block_type":"box","text":"11","page_number":255,"box":{"x":624,"y":612,"width":9,"height":6}},{"id":"666bd426-4b9e-4a67-9b59-f839cdbb2605","block_type":"box","text":"that are relevant to a company’s","page_number":255,"box":{"x":635,"y":612,"width":249,"height":12}},{"id":"3c3334c6-1607-4515-95ab-b0f20a3f2078","block_type":"box","text":"business or material to its financial performance, are generally operational considerations embedded","page_number":255,"box":{"x":117,"y":627,"width":752,"height":12}},{"id":"a926b469-eb10-4b29-8779-43f75cabd6c5","block_type":"box","text":"into day-to-day management systems. Certain sustainability issues may also inform long-term strategic","page_number":255,"box":{"x":117,"y":643,"width":769,"height":12}},{"id":"5a24e736-0a75-49f8-a6d3-0bf596be8c08","block_type":"box","text":"planning, for example, investing in product innovation in anticipation of changing consumer demand or","page_number":255,"box":{"x":117,"y":658,"width":763,"height":12}},{"id":"02b78d83-6b22-4be0-affd-507dbab34bd8","block_type":"box","text":"adapting supply chains in response to changing regulatory requirements.","page_number":255,"box":{"x":116,"y":674,"width":540,"height":12}},{"id":"73bc6491-e604-465a-ad41-b359109dcbe2","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business","page_number":255,"box":{"x":116,"y":704,"width":763,"height":12}},{"id":"779e59b9-2549-44a8-9b36-b5d6073d4b75","block_type":"box","text":"relevant will vary by company business model, sector, key markets, and time horizon, amongst other","page_number":255,"box":{"x":117,"y":720,"width":747,"height":12}},{"id":"645ab599-8824-4752-9e04-61a3b84a8c91","block_type":"box","text":"considerations. From company disclosures and our engagement, we aim to understand how","page_number":255,"box":{"x":116,"y":735,"width":684,"height":12}},{"id":"e9ac66f1-2ddd-4e38-ac19-c6e6a4a4691f","block_type":"box","text":"management is identifying, assessing and integrating material sustainability-related risks and","page_number":255,"box":{"x":117,"y":751,"width":688,"height":12}},{"id":"55e4141d-2f2f-4cd2-b0a8-e9d81351ddce","block_type":"box","text":"11","page_number":255,"box":{"x":144,"y":776,"width":7,"height":5}},{"id":"02bea2f5-a7cf-4d25-be66-53bd3d512b00","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in a","page_number":255,"box":{"x":171,"y":776,"width":691,"height":10}},{"id":"1f6297af-13d2-4c75-9716-c35f7db42746","block_type":"box","text":"company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":255,"box":{"x":170,"y":789,"width":686,"height":10}},{"id":"7e02bb48-5109-4a43-98f5-4c3d53512b64","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":255,"box":{"x":170,"y":802,"width":682,"height":9}},{"id":"fde06a02-3c5a-45b7-88de-f121ea846784","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":255,"box":{"x":170,"y":815,"width":683,"height":9}},{"id":"76f0309c-9a5c-4eb7-9eb5-8bb07af02b40","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will effectively","page_number":255,"box":{"x":170,"y":828,"width":708,"height":9}},{"id":"ed6b1521-9a59-4ac0-996b-187f2e58f21b","block_type":"box","text":"evaluate and manage material sustainability-related risks and opportunities relevant to their businesses. Governance is","page_number":255,"box":{"x":170,"y":841,"width":707,"height":9}},{"id":"f2f4b8d4-f153-40d5-9761-aed874e95901","block_type":"box","text":"the core means by which boards can oversee the creation of durable financial value over time. Appropriate risk","page_number":255,"box":{"x":170,"y":853,"width":658,"height":10}},{"id":"0b5f9431-0ee1-463c-8b33-3fa2ab634583","block_type":"box","text":"oversight of business-relevant and material sustainability-related considerations is a component of a sound governance","page_number":255,"box":{"x":170,"y":866,"width":708,"height":10}},{"id":"26a61cce-a7dd-4e6c-816f-7266a784dcef","block_type":"box","text":"framework.","page_number":255,"box":{"x":170,"y":879,"width":65,"height":8}},{"id":"2b9eda2c-5d08-49c1-9fca-db543cd7bb35","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":255,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"fe0dacd8-bb3f-436e-bea2-fd7504d0fe8e","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":255,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"fdb08922-9092-48c2-bacd-7960d016a9cb","block_type":"box","text":"15","page_number":255,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"471fbd31-dfee-4e19-856c-84429ead2058","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":255,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"6f7b8c2d-9e5f-445d-b003-845143b8d466","block_type":"box","text":"opportunities into their business decision-making and practices. Doing so helps us undertake a more","page_number":256,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"34c49cbf-3de6-4fe4-899b-2443541be6f1","block_type":"box","text":"holistic assessment of a company’s potential financial performance and the likely risk-adjusted returns","page_number":256,"box":{"x":117,"y":102,"width":761,"height":13}},{"id":"ebea0905-edbd-45e0-b950-39a485e792ea","block_type":"box","text":"of an investment.","page_number":256,"box":{"x":116,"y":118,"width":133,"height":10}},{"id":"7a0aec73-259a-4f8f-a52f-966df1ffbb50","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about","page_number":256,"box":{"x":116,"y":145,"width":753,"height":12}},{"id":"621ca411-7fc5-4e8c-9851-d96a62386e7d","block_type":"box","text":"how a company is managing or disclosing its approach to material sustainability-related risks that may","page_number":256,"box":{"x":117,"y":161,"width":761,"height":12}},{"id":"948e3030-437a-4dbf-abf1-aa632b6ceb91","block_type":"box","text":"impact financial returns.","page_number":256,"box":{"x":117,"y":176,"width":181,"height":12}},{"id":"e462ef4e-c4d1-418d-8221-283d753bf89b","block_type":"box","text":"KEY STAKEHOLDERS","page_number":256,"box":{"x":412,"y":209,"width":182,"height":10}},{"id":"6f2d8dd3-1bc7-4d72-aef4-0ed2fb732e2e","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various","page_number":256,"box":{"x":117,"y":236,"width":727,"height":12}},{"id":"dd662340-9f97-4bab-9398-8e8eaeba45f3","block_type":"box","text":"parties on whom they depend for their success over time. It is for each company to determine their key","page_number":256,"box":{"x":117,"y":252,"width":766,"height":12}},{"id":"2453cf25-2b1c-410b-80e9-6cc3cbb666ee","block_type":"box","text":"stakeholders based on what is material to their business and long-term financial performance. For","page_number":256,"box":{"x":116,"y":267,"width":731,"height":12}},{"id":"6a5d9d48-97c5-4a9f-ad49-a27625c19493","block_type":"box","text":"many companies, key stakeholders include employees, business partners (such as suppliers and","page_number":256,"box":{"x":117,"y":283,"width":726,"height":12}},{"id":"d0640510-790b-41f2-98bc-cab53b9b83fb","block_type":"box","text":"distributors), clients and consumers, regulators, and the communities in which they operate.","page_number":256,"box":{"x":116,"y":298,"width":687,"height":12}},{"id":"2d286f15-f71e-433e-b56f-e00bcd44b822","block_type":"box","text":"Companies that appropriately balance the interests of investors and other stakeholders are, in our","page_number":256,"box":{"x":117,"y":314,"width":730,"height":12}},{"id":"1d6fecc5-4d87-4bce-8425-6b5fe8c53cf4","block_type":"box","text":"experience, more likely to be financially resilient over time.","page_number":256,"box":{"x":116,"y":329,"width":438,"height":12}},{"id":"db17d1e6-eb79-42af-8a09-45c3de513ed8","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":256,"box":{"x":246,"y":362,"width":513,"height":10}},{"id":"176276e4-9b5f-4ba4-8c2e-3afa6d1ac08b","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial","page_number":256,"box":{"x":117,"y":389,"width":737,"height":12}},{"id":"1d44a7ff-6bda-468e-ae1b-107431b08a6d","block_type":"box","text":"objectives. Consistent with the objectives of those investment strategies, our stewardship activity in","page_number":256,"box":{"x":116,"y":405,"width":741,"height":12}},{"id":"851c24fb-6c8c-48b1-805a-fa7ced9b2eb8","block_type":"box","text":"relation to the holdings in those funds differs in some respects from BAIS’ benchmark guidelines, which","page_number":256,"box":{"x":117,"y":420,"width":771,"height":12}},{"id":"9d010931-2fc5-459d-bcda-5cb538cd01f0","block_type":"box","text":"are described above. Specifically, for those funds’ holdings, we look to investee companies to","page_number":256,"box":{"x":116,"y":436,"width":699,"height":12}},{"id":"0f049a67-37a5-47d9-ba5d-82af264a158d","block_type":"box","text":"demonstrate that they are aligned with a decarbonization pathway that means their business model","page_number":256,"box":{"x":116,"y":451,"width":742,"height":12}},{"id":"fd14d104-5609-450b-9c1e-0a88a0f568c9","block_type":"box","text":"would be viable in a low-carbon economy, i.e., one in which global temperature rise is limited to 1.5°C","page_number":256,"box":{"x":116,"y":467,"width":759,"height":12}},{"id":"05087769-4754-4b55-9cec-c69a131737c3","block_type":"box","text":"above pre-industrial levels. In addition, clients in separately managed accounts may instruct BlackRock","page_number":256,"box":{"x":116,"y":482,"width":771,"height":12}},{"id":"c12ac9fe-a936-4bc9-beef-7838b4219a0d","block_type":"box","text":"to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":256,"box":{"x":116,"y":498,"width":698,"height":12}},{"id":"21d06ec1-27d1-4ff8-885c-244496ca3b58","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable","page_number":256,"box":{"x":116,"y":514,"width":770,"height":11}},{"id":"ab6b2e28-6db9-4c20-a342-4cee8ffbaf8f","block_type":"box","text":"fund board or client.","page_number":256,"box":{"x":116,"y":529,"width":153,"height":9}},{"id":"23d2c305-86fd-4d77-a096-2e7abd54e481","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services","page_number":256,"box":{"x":116,"y":556,"width":766,"height":12}},{"id":"c6603bed-5208-4be5-81ae-ff7d0471169e","block_type":"box","text":"that contribute to real world decarbonization or have a carbon intensive business model and face","page_number":256,"box":{"x":116,"y":571,"width":724,"height":10}},{"id":"43dd5ae1-4519-41bc-a938-5c53568fdb1c","block_type":"box","text":"outsized impacts from the low carbon transition, based on reported and estimated scopes 1, 2, and 3","page_number":256,"box":{"x":116,"y":587,"width":754,"height":12}},{"id":"823c0cf3-331b-4b81-be18-7c6b7c4e0bbf","block_type":"box","text":"greenhouse gas emissions. These companies should provide disclosures that set out their","page_number":256,"box":{"x":116,"y":603,"width":675,"height":12}},{"id":"da310cbf-2c2b-4d9e-95de-240439ece867","block_type":"box","text":"governance, strategy, risk management processes and metrics and targets relevant to","page_number":256,"box":{"x":116,"y":618,"width":646,"height":12}},{"id":"d838df74-654d-4a5c-b8cb-678ce39bfd63","block_type":"box","text":"decarbonization. It is helpful to investors’ understanding when these disclosures include an explanation","page_number":256,"box":{"x":116,"y":634,"width":770,"height":12}},{"id":"772e0f6d-f2b9-4afc-8fb6-dcfe26c08671","block_type":"box","text":"of the decarbonization scenarios a company is using in its near- and long-term planning, as well as its","page_number":256,"box":{"x":116,"y":649,"width":760,"height":12}},{"id":"aa21a007-acad-46c3-944a-e84dcbe98255","block_type":"box","text":"scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for","page_number":256,"box":{"x":116,"y":665,"width":735,"height":12}},{"id":"f435fbf0-606b-4dee-9495-12bc1a2d55ca","block_type":"box","text":"scope 1 and 2 emissions.","page_number":256,"box":{"x":116,"y":680,"width":188,"height":12}},{"id":"1e05f783-f3b1-4360-ae77-1de2b198352b","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against","page_number":256,"box":{"x":117,"y":707,"width":739,"height":12}},{"id":"e1fa3775-5dbd-4abc-af58-705d57b5a125","block_type":"box","text":"directors or support for a relevant shareholder proposal if a company does not appear to be adequately","page_number":256,"box":{"x":116,"y":723,"width":766,"height":12}},{"id":"8709a4ff-7916-4474-9dbc-635f8d23d8ab","block_type":"box","text":"acting to address or disclosing material climate-related risks, consistent with the parameters set out in","page_number":256,"box":{"x":116,"y":738,"width":755,"height":12}},{"id":"efad5e9a-eb90-4936-b7f2-2b50e0c84de7","block_type":"box","text":"these climate- and decarbonization-specific guidelines. We may recommend supporting shareholder","page_number":256,"box":{"x":116,"y":754,"width":744,"height":12}},{"id":"a7f4d5e3-4288-4d3a-a7f5-a495deca2ca6","block_type":"box","text":"proposals seeking information relevant to a company’s stated low-carbon transition strategy or targets","page_number":256,"box":{"x":117,"y":769,"width":755,"height":12}},{"id":"2f5f7a82-6686-4c14-b069-9fd95948f5e3","block_type":"box","text":"that the company does not currently provide and that would be helpful to investment decision-making.","page_number":256,"box":{"x":116,"y":785,"width":753,"height":12}},{"id":"d5f1d38b-ea3d-4bc9-a63a-8dbc6e3dcb14","block_type":"box","text":"We would not recommend support for shareholder proposals that seek to constrain board or","page_number":256,"box":{"x":116,"y":800,"width":684,"height":12}},{"id":"48fdb1d6-f9df-4afc-8b39-c99b02d93c73","block_type":"box","text":"management decision-making or direct specific business or strategic decisions. As under the BAIS","page_number":256,"box":{"x":117,"y":816,"width":730,"height":12}},{"id":"729039c9-170d-4151-a518-526a98af5568","block_type":"box","text":"benchmark approach, the active portfolio managers are ultimately responsible for voting consistent","page_number":256,"box":{"x":117,"y":831,"width":737,"height":12}},{"id":"e6d47f7b-4aa7-4edd-a717-023759d4c022","block_type":"box","text":"with their investment mandate and fund objectives. For the funds and accounts in scope, voting on","page_number":256,"box":{"x":116,"y":847,"width":736,"height":12}},{"id":"7ec6b8ac-463f-4e72-b3d0-5017b46ab183","block_type":"box","text":"matters not related to climate risk and the energy transition is undertaken in line with BAIS’ benchmark","page_number":256,"box":{"x":117,"y":862,"width":765,"height":12}},{"id":"e5a82f59-fc0c-4eea-bc97-741a73d14243","block_type":"box","text":"guidelines.","page_number":256,"box":{"x":116,"y":878,"width":85,"height":12}},{"id":"aedf2ce9-13f4-4ffc-a802-6b7c0d30d11d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":256,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"a5da3963-06f1-44c8-a9dc-7882305512aa","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":256,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"94516ec2-9bab-4ac4-b1d2-62bd032a8b48","block_type":"box","text":"16","page_number":256,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"cfca4635-6b9c-435f-ab7d-417afccd14b0","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":256,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"c9e74856-aa0e-4d35-99d8-53fd062afe56","block_type":"box","text":"APPENDIX 1: HOW WE FULFIL AND OVERSEE OUR INVESTMENT STEWARDSHIP","page_number":257,"box":{"x":171,"y":87,"width":662,"height":10}},{"id":"62476ca8-dc34-457c-9aca-0c705f7b192c","block_type":"box","text":"RESPONSIBILITIES","page_number":257,"box":{"x":423,"y":102,"width":159,"height":10}},{"id":"6894260d-1336-4e10-948f-d5b0b2e2f5d8","block_type":"box","text":"Oversight","page_number":257,"box":{"x":116,"y":132,"width":83,"height":12}},{"id":"ea726054-00cf-4fca-b9f8-775c5c47ea57","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including","page_number":257,"box":{"x":116,"y":161,"width":764,"height":12}},{"id":"961df82d-34da-4793-9f41-532cd263ca22","block_type":"box","text":"voting in accordance with the BlackRock Active Investment Stewardship Global Engagement and","page_number":257,"box":{"x":116,"y":177,"width":726,"height":12}},{"id":"59c4d9f3-cda8-4ed7-afae-d34a68417cbb","block_type":"box","text":"Voting Guidelines (the “Guidelines”), which require the application of professional judgment and","page_number":257,"box":{"x":116,"y":192,"width":714,"height":12}},{"id":"7a3fec1e-06b8-4ae5-afd7-8da8c8e6f0cb","block_type":"box","text":"consideration of each company’s unique circumstances, as well as input from active investors. BAIS is","page_number":257,"box":{"x":116,"y":208,"width":765,"height":12}},{"id":"5c081e28-b1a0-4ae1-ba06-dbbc5b7079a0","block_type":"box","text":"independent from BlackRock Investment Stewardship in our engagement and voting activities,","page_number":257,"box":{"x":117,"y":223,"width":704,"height":12}},{"id":"9c18f303-9cb8-413c-9ba3-a14f6ebad896","block_type":"box","text":"reporting lines, and oversight.","page_number":257,"box":{"x":117,"y":239,"width":224,"height":12}},{"id":"655ac5f9-f427-4f88-ac0e-b478d462451c","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders","page_number":257,"box":{"x":116,"y":268,"width":765,"height":12}},{"id":"826930f9-693e-4119-8157-7c4bbd07d5a7","block_type":"box","text":"in BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s","page_number":257,"box":{"x":117,"y":283,"width":742,"height":12}},{"id":"5e8c2072-8838-4766-b3f1-986e6ee00be1","block_type":"box","text":"approach to investment stewardship on non-index equity investment strategies. The Group may advise","page_number":257,"box":{"x":116,"y":299,"width":769,"height":12}},{"id":"539a461e-93ec-4b4f-856d-cdccabdd952b","block_type":"box","text":"on and review amendments to BAIS’ policies and practices. It does not determine voting decisions,","page_number":257,"box":{"x":116,"y":314,"width":739,"height":12}},{"id":"09e4b4a0-fb2d-420c-9e62-be1f8018a8f6","block_type":"box","text":"which are the responsibility of BAIS and the relevant active equity investors.","page_number":257,"box":{"x":116,"y":330,"width":568,"height":12}},{"id":"6ecac6c3-9119-4e0e-a6f1-bb3ba8d72b0e","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues,","page_number":257,"box":{"x":117,"y":359,"width":721,"height":12}},{"id":"81716c2b-68b4-42f9-a382-31e8d4fb916a","block_type":"box","text":"executes proxy votes, and conducts vote operations (including maintaining records of votes cast) in a","page_number":257,"box":{"x":116,"y":375,"width":757,"height":12}},{"id":"c85448ca-e071-4dd5-ab9a-b59a6e312086","block_type":"box","text":"manner consistent with the Guidelines. BAIS also conducts research on corporate governance issues","page_number":257,"box":{"x":117,"y":390,"width":757,"height":12}},{"id":"aa53ca67-a311-46a7-b243-9df5d2628042","block_type":"box","text":"and participates in industry discussions to contribute to and keep abreast of important developments in","page_number":257,"box":{"x":116,"y":406,"width":768,"height":12}},{"id":"19d445f8-25ac-4196-b8fe-dfccb88221b1","block_type":"box","text":"the corporate governance field. BAIS may use third parties for certain of the foregoing activities and","page_number":257,"box":{"x":116,"y":421,"width":744,"height":12}},{"id":"4cdcaae0-5b3f-4d01-b623-52637979b4d8","block_type":"box","text":"performs oversight of those third parties (see “Use and oversight of third-party vote services providers”","page_number":257,"box":{"x":117,"y":437,"width":765,"height":12}},{"id":"3a766631-a470-4fac-9dd0-632ddec64766","block_type":"box","text":"below).","page_number":257,"box":{"x":117,"y":452,"width":58,"height":12}},{"id":"573740f6-dc9a-459d-ac2b-c92a18f09afe","block_type":"box","text":"Voting guidelines and vote execution","page_number":257,"box":{"x":116,"y":482,"width":302,"height":11}},{"id":"01a61d61-fd9c-4690-8121-ae9db69acccd","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the","page_number":257,"box":{"x":117,"y":511,"width":735,"height":12}},{"id":"00dd6c4e-7327-418d-97cc-39942dafa296","block_type":"box","text":"voting items submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have","page_number":257,"box":{"x":116,"y":526,"width":728,"height":12}},{"id":"1cb90ac8-f91e-4366-8fdf-7a605310ba5d","block_type":"box","text":"voting authority. BlackRock votes (or refrains from voting) for each Fund for which we have voting","page_number":257,"box":{"x":116,"y":542,"width":730,"height":12}},{"id":"942be22b-3589-4009-ae34-f81a607fe2bc","block_type":"box","text":"authority based on our evaluation of the alignment of the voting items with the long-term economic","page_number":257,"box":{"x":116,"y":557,"width":734,"height":12}},{"id":"c2c29a67-42a0-43f5-947d-fe9682e315b5","block_type":"box","text":"interests of our clients, in the exercise of our independent business judgment, and without regard to the","page_number":257,"box":{"x":117,"y":573,"width":771,"height":12}},{"id":"df25b452-f4e9-459d-8e14-ce72cbe671b0","block_type":"box","text":"relationship of the issuer (or any shareholder proponent or dissident shareholder) to the Fund, the","page_number":257,"box":{"x":117,"y":588,"width":730,"height":12}},{"id":"dd8e4332-6e51-44bb-930e-ba052d283b6c","block_type":"box","text":"Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":257,"box":{"x":117,"y":604,"width":754,"height":12}},{"id":"05767d8e-f551-49ff-82c1-28e8762aad5a","block_type":"box","text":"management policies and procedures,” below).","page_number":257,"box":{"x":117,"y":619,"width":353,"height":12}},{"id":"4068dbdb-095e-4919-9f7c-c9cd6a337544","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the","page_number":257,"box":{"x":116,"y":648,"width":759,"height":13}},{"id":"aa41270f-a879-4fdf-867f-5202bad1f321","block_type":"box","text":"Guidelines, although portfolio managers have the right to vote differently on their holdings if they","page_number":257,"box":{"x":117,"y":664,"width":713,"height":12}},{"id":"fc3d84cb-b932-45e8-9a77-08d44a281134","block_type":"box","text":"determine doing so is more aligned with the investment objective and financial interests of clients","page_number":257,"box":{"x":116,"y":679,"width":719,"height":13}},{"id":"37c5c7be-b7ea-4870-bbb3-1ef3704db33e","block_type":"box","text":"invested in the funds they manage.","page_number":257,"box":{"x":117,"y":695,"width":258,"height":12}},{"id":"83f78c00-da26-4d1f-aa8a-6db09970a914","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case","page_number":257,"box":{"x":116,"y":724,"width":726,"height":12}},{"id":"f226b74c-5e50-42a3-a6e2-db4682531eb9","block_type":"box","text":"basis, in the context of the individual circumstances of each company and the specific issue under","page_number":257,"box":{"x":117,"y":740,"width":728,"height":12}},{"id":"c060eb94-10ff-41f6-ab39-250d5f384a1c","block_type":"box","text":"review. As such, the Guidelines do not indicate how BAIS will vote in every instance. Rather, they","page_number":257,"box":{"x":117,"y":755,"width":723,"height":12}},{"id":"a9d8b653-a195-44dc-b43d-a1c43e47b5ce","block_type":"box","text":"reflect our view about corporate governance issues generally, and provide insight into how we typically","page_number":257,"box":{"x":117,"y":771,"width":761,"height":12}},{"id":"e9de99ae-b1e3-4094-bcfe-6ce134aa3344","block_type":"box","text":"approach issues that are commonly put to a shareholder vote. The Guidelines are reviewed annually","page_number":257,"box":{"x":116,"y":786,"width":747,"height":12}},{"id":"ac907412-4783-49a0-896d-aac0b3e1f01b","block_type":"box","text":"and updated as necessary to reflect changes in market practices, developments in corporate","page_number":257,"box":{"x":116,"y":802,"width":688,"height":12}},{"id":"a79e5e71-598f-4c23-9fcf-cb0580c1e672","block_type":"box","text":"governance and feedback from companies and clients. 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We are not supportive of impediments to the exercise of voting rights","page_number":258,"box":{"x":116,"y":165,"width":746,"height":12}},{"id":"e0b21fbd-033d-456a-903f-90cc72fe6378","block_type":"box","text":"such as share-blocking or overly burdensome administrative requirements.","page_number":258,"box":{"x":116,"y":180,"width":560,"height":12}},{"id":"e212fe4f-f754-44ed-ac5a-a27037ad6d69","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine","page_number":258,"box":{"x":117,"y":211,"width":759,"height":12}},{"id":"2cc4794f-25ee-4afe-8d4a-ddae6476edbd","block_type":"box","text":"that it is generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full","page_number":258,"box":{"x":116,"y":226,"width":723,"height":12}},{"id":"6225d875-6c46-4c24-86f5-2b07ccc2fc7d","block_type":"box","text":"allocation) if the costs (including but not limited to opportunity costs associated with share-blocking","page_number":258,"box":{"x":116,"y":242,"width":737,"height":12}},{"id":"ee0a358e-d65d-4a0b-abfd-e6aa3243d607","block_type":"box","text":"constraints) associated with exercising a vote are expected to outweigh the benefit the client would","page_number":258,"box":{"x":116,"y":257,"width":739,"height":12}},{"id":"51688dfb-d4dc-4ec7-82ef-66da43392bbb","block_type":"box","text":"derive by voting on the proposal.","page_number":258,"box":{"x":116,"y":273,"width":248,"height":12}},{"id":"0a801aff-d831-4d78-8e4e-df2608c6649e","block_type":"box","text":"Voting Choice","page_number":258,"box":{"x":116,"y":303,"width":118,"height":13}},{"id":"f851f4c9-0684-4dbf-94f7-671427d37fd7","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to","page_number":258,"box":{"x":117,"y":334,"width":733,"height":12}},{"id":"f91bd9e6-186f-4229-8050-4914debbdb49","block_type":"box","text":"participate in the proxy voting process where legally and operationally viable.","page_number":258,"box":{"x":117,"y":350,"width":575,"height":12}},{"id":"9d9db230-0f5c-4f07-af56-7a8ff7e51721","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in","page_number":258,"box":{"x":116,"y":380,"width":748,"height":12}},{"id":"61030f0a-5680-47f8-89d2-eef91e9e6ead","block_type":"box","text":"the U.S., UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In","page_number":258,"box":{"x":116,"y":396,"width":716,"height":12}},{"id":"48339965-00ef-46f8-a56f-c96f23bbf4f7","block_type":"box","text":"addition, institutional clients in separately managed accounts (SMAs) are eligible for BlackRock Voting","page_number":258,"box":{"x":116,"y":411,"width":764,"height":12}},{"id":"5be1afa4-d4c9-4a52-b385-6252b9f0b274","block_type":"box","text":"Choice regardless of their investment strategies.","page_number":258,"box":{"x":117,"y":427,"width":357,"height":12}},{"id":"8ef0d5cf-fd3a-432c-b67f-fb0e620c807a","block_type":"box","text":"12","page_number":258,"box":{"x":477,"y":427,"width":11,"height":6}},{"id":"a5fb5d70-b6d8-4914-9c4a-8f8763ed296d","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently","page_number":258,"box":{"x":116,"y":457,"width":740,"height":13}},{"id":"6277a658-1e8d-4dc7-92f9-76b376f14494","block_type":"box","text":"depending on whether our clients have authorized BAIS to vote on their behalf, have authorized","page_number":258,"box":{"x":116,"y":473,"width":715,"height":12}},{"id":"abb92a84-a046-4788-8439-d0c12f799a0c","block_type":"box","text":"BlackRock to vote in accordance with a third-party policy, or have elected to vote shares in accordance","page_number":258,"box":{"x":117,"y":489,"width":769,"height":12}},{"id":"35c64195-c27a-4315-97f4-a6f240f9ff34","block_type":"box","text":"with their own policy. Our clients have greater control over proxy voting because of Voting Choice.","page_number":258,"box":{"x":116,"y":504,"width":727,"height":12}},{"id":"e7698fde-5044-4b18-8bfd-5e00547a2bd6","block_type":"box","text":"13","page_number":258,"box":{"x":846,"y":504,"width":10,"height":6}},{"id":"53a06851-8a32-4fc6-b5b1-00bbfdbdce90","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":258,"box":{"x":117,"y":535,"width":452,"height":12}},{"id":"c49fa245-0cdf-4ede-a1a5-61ebf9995686","block_type":"box","text":"Third-party vote services providers – or proxy research firms – provide research and recommendations","page_number":258,"box":{"x":116,"y":565,"width":769,"height":12}},{"id":"7ece1ee8-e654-47fa-ade4-af9c61afb1c7","block_type":"box","text":"on proxy votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services","page_number":258,"box":{"x":116,"y":581,"width":746,"height":12}},{"id":"3281a89e-8fcd-41fa-939f-81a551b6bc5e","block_type":"box","text":"provider ISS and leverages its online platform to supply research and support voting, record keeping,","page_number":258,"box":{"x":117,"y":596,"width":754,"height":12}},{"id":"bf668031-20a7-4f6a-bdd6-a5227ada1127","block_type":"box","text":"and reporting processes. We also use Glass Lewis’ research and analysis as an input into our voting","page_number":258,"box":{"x":116,"y":612,"width":752,"height":12}},{"id":"0d895b4e-520e-46a5-90ec-cc788ed164df","block_type":"box","text":"process. It is important to note that, although proxy research firms provide important data and analysis,","page_number":258,"box":{"x":117,"y":627,"width":768,"height":12}},{"id":"7d342f6d-9c49-494c-8ffb-eb98dea25127","block_type":"box","text":"BAIS does not rely solely on their information or follow their voting recommendations. A company’s","page_number":258,"box":{"x":117,"y":643,"width":738,"height":12}},{"id":"4fe6b4a6-2647-4387-9775-87b91f961fde","block_type":"box","text":"disclosures, our engagements and voting, investment colleagues’ insights and our Guidelines are","page_number":258,"box":{"x":116,"y":658,"width":727,"height":12}},{"id":"c53c1a37-42ab-42b6-85f2-4e3eaf93f073","block_type":"box","text":"important inputs into our voting decisions on behalf of clients.","page_number":258,"box":{"x":117,"y":674,"width":452,"height":12}},{"id":"cb6f5e50-f79d-448a-be70-01e3f2d1875e","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to","page_number":258,"box":{"x":117,"y":705,"width":722,"height":12}},{"id":"c415546b-1262-4575-bc5d-783e724643ed","block_type":"box","text":"streamline the voting process by making voting recommendations based on BAIS’ Guidelines when the","page_number":258,"box":{"x":116,"y":720,"width":765,"height":12}},{"id":"bc960d92-4ba6-4e4f-8c18-281c64192bf2","block_type":"box","text":"items on a shareholder meeting agenda are routine. Agenda items that are not routine are referred","page_number":258,"box":{"x":117,"y":736,"width":730,"height":12}},{"id":"3a69e8dc-db4f-410f-a8d5-991bb8b633bd","block_type":"box","text":"back to BAIS to assess, escalate as necessary to the relevant portfolio managers and vote. BAIS","page_number":258,"box":{"x":117,"y":751,"width":719,"height":12}},{"id":"33394155-60db-4aea-af8f-aceb756b5b6a","block_type":"box","text":"reviews and can override the recommendations of the vote services provider at any time prior to the","page_number":258,"box":{"x":117,"y":767,"width":739,"height":12}},{"id":"1859f14b-e913-4d41-ac97-5b1d7122c266","block_type":"box","text":"vote deadline. Both BAIS and the vote services provider actively monitor securities filings, research","page_number":258,"box":{"x":116,"y":782,"width":735,"height":12}},{"id":"5c6215ab-5c64-4a83-8414-c959966c1dd5","block_type":"box","text":"reports, company announcements, and direct communications from companies to ensure awareness","page_number":258,"box":{"x":117,"y":798,"width":748,"height":12}},{"id":"480468ba-377f-420e-97d9-a7518ff1ca51","block_type":"box","text":"of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":258,"box":{"x":116,"y":813,"width":661,"height":12}},{"id":"d35164df-13ff-4066-b6b2-712f71e4beb5","block_type":"box","text":"12","page_number":258,"box":{"x":144,"y":838,"width":8,"height":5}},{"id":"b4245b42-a870-4fdb-a146-98f07f75d055","block_type":"box","text":"With Voting Choice, SMAs have the ability to select from a set of voting policies from third-party proxy advisers the","page_number":258,"box":{"x":170,"y":838,"width":679,"height":10}},{"id":"f4dc0785-4673-4d18-b1ec-d1524439a049","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":258,"box":{"x":170,"y":851,"width":695,"height":10}},{"id":"4d664b66-4e56-4d4c-87ec-e380656d7dad","block_type":"box","text":"votes based on the client’s selected voting policy.","page_number":258,"box":{"x":170,"y":864,"width":292,"height":10}},{"id":"ca91fba3-759c-418a-81c1-3392c1ded3bc","block_type":"box","text":"13","page_number":258,"box":{"x":144,"y":880,"width":8,"height":5}},{"id":"65bed578-dba6-40cf-841e-28c5f0f41acc","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":258,"box":{"x":171,"y":880,"width":678,"height":9}},{"id":"576df925-e773-47c3-9ef2-12adb2c08499","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":258,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"88b8672c-bd90-4852-8bca-56d4bc5e7f95","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":258,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"f4f2a79d-0264-4955-a050-4132fedaf25c","block_type":"box","text":"18","page_number":258,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"cae3907c-90e9-4099-9bcf-bf0db8b4b9ce","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":258,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"4c1037bb-253d-47d5-a6ee-22062cf6ccf8","block_type":"box","text":"BAIS closely monitors the third-party vote services providers we contract with to ensure that they are","page_number":259,"box":{"x":117,"y":87,"width":751,"height":12}},{"id":"d2cbbaed-8758-4d42-a031-8c5fc96eb94c","block_type":"box","text":"meeting our service level expectations and have effective policies and procedures in place to manage","page_number":259,"box":{"x":117,"y":102,"width":759,"height":13}},{"id":"1df39b75-cfda-4076-8bc5-fda2e381206b","block_type":"box","text":"potential conflicts of interest. Our oversight of service providers includes regular meetings with client","page_number":259,"box":{"x":117,"y":118,"width":747,"height":12}},{"id":"72a70e36-1637-4988-b69e-b688d2aa4f09","block_type":"box","text":"service teams, systematic monitoring of vendor operations, as well as annual due diligence meetings in","page_number":259,"box":{"x":116,"y":134,"width":771,"height":12}},{"id":"195a4885-e7b7-4fbc-b25a-956fc64f6a59","block_type":"box","text":"accordance with BlackRock’s firmwide policies.","page_number":259,"box":{"x":116,"y":149,"width":355,"height":12}},{"id":"f5d4fd8d-cadb-40c8-908a-c691bdbb1313","block_type":"box","text":"Conflicts management policies and procedures","page_number":259,"box":{"x":116,"y":179,"width":383,"height":12}},{"id":"c882341f-f795-4ff8-8a2e-1cabdf93d136","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy","page_number":259,"box":{"x":117,"y":209,"width":734,"height":12}},{"id":"5ba79899-b8ec-422c-b272-0039f0d2c644","block_type":"box","text":"voting activity. Such influence might stem from any relationship between the investee company (or any","page_number":259,"box":{"x":116,"y":225,"width":767,"height":12}},{"id":"fbb2b17e-f4e9-45a4-a770-f4aa6d630491","block_type":"box","text":"shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a","page_number":259,"box":{"x":116,"y":240,"width":743,"height":12}},{"id":"c4bdab80-5b30-4f8e-8901-8ebd5e1cb5ed","block_type":"box","text":"Fund’s affiliates, or BlackRock employees. The following are examples of sources of perceived or","page_number":259,"box":{"x":117,"y":256,"width":727,"height":12}},{"id":"113978d8-3068-4f67-b237-ae2f9ce169e1","block_type":"box","text":"potential conflicts of interest:","page_number":259,"box":{"x":117,"y":271,"width":216,"height":12}},{"id":"d08a233b-d5bd-4f4e-8380-457d42354c6f","block_type":"box","text":"• BlackRock clients who may be issuers of securities or proponents of shareholder resolutions","page_number":259,"box":{"x":117,"y":301,"width":724,"height":12}},{"id":"90f7e969-1c85-4bae-a30b-9973d15cb7e8","block_type":"box","text":"• BlackRock business partners or third parties who may be issuers of securities or proponents of","page_number":259,"box":{"x":117,"y":324,"width":742,"height":12}},{"id":"7e30f899-a7da-4eb9-a07a-751e6846314d","block_type":"box","text":"shareholder resolutions","page_number":259,"box":{"x":150,"y":340,"width":179,"height":9}},{"id":"4a1200c3-1004-4a51-9e70-fbf3a1543da9","block_type":"box","text":"• BlackRock employees who may sit on the boards of public companies held in Funds managed by","page_number":259,"box":{"x":117,"y":362,"width":760,"height":12}},{"id":"43937567-2396-492b-8736-6e82ef8388d1","block_type":"box","text":"BlackRock","page_number":259,"box":{"x":151,"y":378,"width":83,"height":9}},{"id":"46a782f2-34bb-42f6-85f6-9cf70011bf7c","block_type":"box","text":"• Significant BlackRock, Inc. investors who may be issuers of securities held in Funds managed by","page_number":259,"box":{"x":117,"y":400,"width":758,"height":12}},{"id":"91120b59-1fcf-4afc-b500-256a2135209c","block_type":"box","text":"BlackRock","page_number":259,"box":{"x":151,"y":416,"width":83,"height":9}},{"id":"04efe23e-c02b-4162-8df1-db8e92036be0","block_type":"box","text":"• Securities of BlackRock, Inc. or BlackRock investment funds held in Funds managed by","page_number":259,"box":{"x":117,"y":439,"width":689,"height":12}},{"id":"2b770691-ce76-4afc-8155-06615e0ac89f","block_type":"box","text":"BlackRock","page_number":259,"box":{"x":151,"y":454,"width":83,"height":10}},{"id":"8f036279-8281-4474-930a-874d6d320ef3","block_type":"box","text":"• BlackRock, Inc. board members who serve as senior executives or directors of public companies","page_number":259,"box":{"x":117,"y":477,"width":757,"height":12}},{"id":"61463b6a-60ec-4602-8933-6036a710415e","block_type":"box","text":"held in Funds managed by BlackRock","page_number":259,"box":{"x":150,"y":493,"width":286,"height":11}},{"id":"eb5c5622-6924-4205-92a9-3ff130efeae3","block_type":"box","text":"BlackRock has taken certain steps to mitigate perceived or potential conflicts including, but not limited","page_number":259,"box":{"x":117,"y":522,"width":759,"height":13}},{"id":"6ce4756c-d278-46db-9fc4-4a9d0a428e20","block_type":"box","text":"to, the following:","page_number":259,"box":{"x":116,"y":538,"width":126,"height":12}},{"id":"6d2be204-0171-49b1-a3c8-7d1bbb18e496","block_type":"box","text":"• Adopted these Guidelines which are designed to advance our clients’ long-term financial interests","page_number":259,"box":{"x":117,"y":568,"width":762,"height":12}},{"id":"b049973a-3c49-4a84-974b-b99358186d5d","block_type":"box","text":"in the companies in which BlackRock invests on their behalf","page_number":259,"box":{"x":150,"y":583,"width":449,"height":12}},{"id":"9568a480-517f-4152-b63d-d5666e9a6617","block_type":"box","text":"• Established a reporting structure that separates BAIS from employees with sales, vendor","page_number":259,"box":{"x":117,"y":606,"width":698,"height":12}},{"id":"719fce71-c8e6-40cd-bb01-481d46fdf3ad","block_type":"box","text":"management, or business partnership roles. 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Reporting on our activities to inform clients","page_number":267,"box":{"x":150,"y":397,"width":382,"height":12}},{"id":"38d5b5c4-e543-4e2e-b13c-4a30c544a67a","block_type":"box","text":"about our stewardship efforts on their behalf","page_number":267,"box":{"x":532,"y":397,"width":338,"height":12}},{"id":"cda92feb-f02e-429f-9067-8ffa7c0f0617","block_type":"box","text":"through a range of publications on our website and direct client communications.","page_number":267,"box":{"x":183,"y":413,"width":603,"height":12}},{"id":"0d8746e8-4c2d-43ee-b969-b48a27d0037e","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to","page_number":267,"box":{"x":116,"y":444,"width":713,"height":12}},{"id":"8ebbfddc-534d-4ad3-8e93-7428a3554d93","block_type":"box","text":"engaging and voting on corporate governance matters and other material risks and opportunities under","page_number":267,"box":{"x":116,"y":459,"width":770,"height":12}},{"id":"8e1c8e4d-385d-4691-8d0a-52fd0dbc0e35","block_type":"box","text":"BIS’ Benchmark Policies. 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We maintain","page_number":267,"box":{"x":116,"y":591,"width":741,"height":12}},{"id":"603767df-ef6a-4719-aeb3-10b14c1b0187","block_type":"box","text":"global principles on corporate governance, which guide our approach to stewardship across","page_number":267,"box":{"x":116,"y":607,"width":686,"height":11}},{"id":"fd46451a-c7ed-4756-869f-e4cf5787cd1e","block_type":"box","text":"jurisdictions, while recognizing the unique characteristics of the different markets where companies","page_number":267,"box":{"x":115,"y":622,"width":741,"height":12}},{"id":"68d93e7d-3278-43f2-b81c-8c2bf6cfdcc1","block_type":"box","text":"operate.","page_number":267,"box":{"x":116,"y":638,"width":66,"height":11}},{"id":"c35c8287-26f8-4ac5-aeff-62094e77b432","block_type":"box","text":"Setting, executing, and overseeing strategy are the responsibility of management and the board. As","page_number":267,"box":{"x":116,"y":668,"width":740,"height":12}},{"id":"d2328ae5-05dd-4236-8bea-8dd611230140","block_type":"box","text":"one of many minority shareholders in public companies, BlackRock does not direct a company’s","page_number":267,"box":{"x":116,"y":684,"width":713,"height":12}},{"id":"0e5ac1aa-4a73-4e8c-975b-5fa60f1eb507","block_type":"box","text":"strategy or its implementation, nor how they should manage material business risks. 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Through stewardship, we assess how companies","page_number":268,"box":{"x":117,"y":149,"width":745,"height":12}},{"id":"a55d20b9-32cf-42ff-b043-dc202bc92579","block_type":"box","text":"are creating long-term financial value to serve our clients, many of whom are saving for long-term","page_number":268,"box":{"x":116,"y":165,"width":728,"height":12}},{"id":"9794bc0b-47da-496a-bc39-b275a5b9a1b7","block_type":"box","text":"goals, such as retirement. Our stewardship program – including when engaging with companies and","page_number":268,"box":{"x":116,"y":180,"width":749,"height":12}},{"id":"87f77c26-cc3f-4060-b622-6f4ce284aa89","block_type":"box","text":"voting at shareholder meetings on behalf of clients – is conducted from a long-term investor","page_number":268,"box":{"x":116,"y":196,"width":685,"height":12}},{"id":"d681feab-af9b-414d-8609-b76a4a939cd0","block_type":"box","text":"perspective and takes a financial materiality-based approach, focused solely on advancing clients’","page_number":268,"box":{"x":117,"y":211,"width":732,"height":12}},{"id":"db394fa4-6099-45fd-b81a-01aa29dba871","block_type":"box","text":"long-term financial interests.","page_number":268,"box":{"x":117,"y":227,"width":214,"height":12}},{"id":"cb83d368-019c-453a-aace-e33dd381226a","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen","page_number":268,"box":{"x":117,"y":258,"width":753,"height":12}},{"id":"81fcc0da-b67f-4690-aed1-222115291451","block_type":"box","text":"our understanding of a company’s business model, including how they are overseeing material","page_number":268,"box":{"x":116,"y":273,"width":708,"height":12}},{"id":"9afbebed-c4f0-40db-a06a-838569252874","block_type":"box","text":"business risks and opportunities over time, and to help inform our voting on behalf of clients.","page_number":268,"box":{"x":117,"y":289,"width":689,"height":12}},{"id":"aa41ea51-6ade-44d7-8f89-8631b5ea2f82","block_type":"box","text":"Engagements provide companies with the opportunity to share their perspectives on topics that, in BIS’","page_number":268,"box":{"x":117,"y":304,"width":769,"height":12}},{"id":"acbd242d-8e2a-4b6e-94f6-5ce516d06668","block_type":"box","text":"experience, impact the long-term financial returns BlackRock’s clients depend on to meet their financial","page_number":268,"box":{"x":116,"y":320,"width":771,"height":12}},{"id":"d56177c8-099f-41e0-bcf6-c2fe4eb2b8be","block_type":"box","text":"goals.","page_number":268,"box":{"x":116,"y":335,"width":49,"height":12}},{"id":"71767c17-8df3-477e-8deb-0d0443337164","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of","page_number":268,"box":{"x":116,"y":366,"width":713,"height":12}},{"id":"0463a320-82ab-40c1-8e6b-0978bab7d3ec","block_type":"box","text":"corporate governance. As a fiduciary, BlackRock is legally required to make proxy voting","page_number":268,"box":{"x":116,"y":382,"width":663,"height":12}},{"id":"4feeb3fd-83e3-4aba-bdcd-7665bcba86d3","block_type":"box","text":"determinations in a manner that is consistent with the investment objectives of clients who have","page_number":268,"box":{"x":116,"y":397,"width":715,"height":12}},{"id":"a44f2d41-d708-45fb-96cf-28125ea53113","block_type":"box","text":"delegated voting authority to us. BIS’ Benchmark Policies, and the vote decisions made consistent with","page_number":268,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"496970ef-b239-430d-93d8-98ffac738ea8","block_type":"box","text":"those policies, reflect our reasonable and independent judgment of what is in the long-term financial","page_number":268,"box":{"x":116,"y":428,"width":746,"height":12}},{"id":"7e397d0d-d4c0-4c78-846f-056a02ae1ee2","block_type":"box","text":"interests of clients. Our vote decisions are often informed by several factors, including in-depth","page_number":268,"box":{"x":117,"y":444,"width":706,"height":12}},{"id":"1af7e749-1183-4062-8bac-cd1e7fb5a6f6","block_type":"box","text":"analysis of company disclosures, comparisons against industry peers, third-party research, and, where","page_number":268,"box":{"x":116,"y":459,"width":768,"height":12}},{"id":"ada8fc87-57f0-4fb0-95d9-401ca6a3d332","block_type":"box","text":"appropriate, engagement with companies.","page_number":268,"box":{"x":116,"y":475,"width":318,"height":12}},{"id":"68d1b69c-cfd9-43c1-bdf5-afb8b8fa0410","block_type":"box","text":"Generally, BIS supports the vote recommendations of the board of directors and management at","page_number":268,"box":{"x":117,"y":506,"width":721,"height":12}},{"id":"db5c5261-a047-4254-8694-43d86e90ac6a","block_type":"box","text":"companies which have sound corporate governance and deliver strong financial returns over time.","page_number":268,"box":{"x":116,"y":521,"width":734,"height":12}},{"id":"e84f94e0-7f68-4969-b02b-69d04d25a7eb","block_type":"box","text":"When we determine it is in our clients’ financial interests to convey concern to companies through","page_number":268,"box":{"x":116,"y":537,"width":729,"height":12}},{"id":"285437c5-b272-41fe-939d-ebd635c871b2","block_type":"box","text":"voting, we may do so in two forms: we might not support the election of directors or other management","page_number":268,"box":{"x":116,"y":552,"width":768,"height":12}},{"id":"b6635392-d079-4d12-acfe-251481aa5820","block_type":"box","text":"proposals, or we might not support management’s voting recommendation on a shareholder proposal.","page_number":268,"box":{"x":117,"y":568,"width":761,"height":12}},{"id":"7cefe26d-1e6e-46db-aae7-8beb8634c41c","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":268,"box":{"x":401,"y":606,"width":202,"height":10}},{"id":"b20ca3e9-70b4-426b-a5eb-2a3819adadf1","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by certain rights","page_number":268,"box":{"x":117,"y":637,"width":762,"height":12}},{"id":"8265dbad-39c0-4bb6-bf6a-d5cce0994244","block_type":"box","text":"attached to shareholding in most markets, as established by corporate laws, regulations, and listing","page_number":268,"box":{"x":116,"y":653,"width":743,"height":12}},{"id":"09797056-74c7-49a2-b15c-5f651c01d7aa","block_type":"box","text":"rules.","page_number":268,"box":{"x":117,"y":669,"width":38,"height":9}},{"id":"a0e66997-62a1-4b3f-8e16-e371281c225a","block_type":"box","text":"3","page_number":268,"box":{"x":157,"y":669,"width":5,"height":6}},{"id":"61354966-5529-4ed1-b3c6-30d19d1c57f2","block_type":"box","text":"For example, in most markets, shareholders have the right to:","page_number":268,"box":{"x":169,"y":669,"width":456,"height":11}},{"id":"c7d9fb92-7a9d-42af-a4ee-c7c4f2a7d493","block_type":"box","text":"• Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend","page_number":268,"box":{"x":117,"y":699,"width":763,"height":12}},{"id":"375d7614-10a1-4e6a-bd88-ab3e793794f1","block_type":"box","text":"the corporate charter or bylaws.","page_number":268,"box":{"x":150,"y":715,"width":235,"height":12}},{"id":"48d2bfc5-d16e-4fa7-8bba-158711055cf6","block_type":"box","text":"• Vote on key board decisions that are material to the protection of their investment, including but","page_number":268,"box":{"x":117,"y":738,"width":742,"height":12}},{"id":"ebfd1d87-826b-4137-829d-2793e3a94f1a","block_type":"box","text":"not limited to, changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":268,"box":{"x":150,"y":754,"width":688,"height":12}},{"id":"300f348e-a6dc-41c0-bc77-70ffcbd48c9c","block_type":"box","text":"• Access sufficient and timely information on governance, strategic, and business matters – where","page_number":268,"box":{"x":117,"y":777,"width":750,"height":12}},{"id":"1ad4b983-05fb-40df-adf6-12e59f56456e","block_type":"box","text":"such matters are material – to make informed decisions.","page_number":268,"box":{"x":150,"y":792,"width":416,"height":10}},{"id":"aabbfd07-42c8-48a7-b142-34425db602ba","block_type":"box","text":"3","page_number":268,"box":{"x":143,"y":854,"width":4,"height":5}},{"id":"a5263405-7e61-4690-9267-e82fa5ae470f","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":268,"box":{"x":171,"y":854,"width":682,"height":9}},{"id":"7bf415f0-4178-4cf0-8d93-d2020d41b9f1","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":268,"box":{"x":170,"y":867,"width":651,"height":9}},{"id":"b11676f5-be14-4a09-b5b2-b26331fefb64","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":268,"box":{"x":170,"y":880,"width":538,"height":9}},{"id":"5662e0a8-8b66-499f-95d7-abc8dec09108","block_type":"box","text":"BlackRock Investment Stewardship","page_number":268,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"d7995a56-b97a-44be-a7a9-47c192ba933e","block_type":"box","text":"Global Principles |","page_number":268,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"0c497122-58ea-4d39-ab83-30ed06d9bf54","block_type":"box","text":"4","page_number":268,"box":{"x":874,"y":909,"width":9,"height":9}},{"id":"2a7699e2-7e60-4397-b5fc-c969c2149bc9","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":268,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"980399a7-e52c-4d72-833f-7bf567dc18d9","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":269,"box":{"x":387,"y":87,"width":231,"height":10}},{"id":"e40fe58e-4570-4dfa-bb0d-74012eda5fa3","block_type":"box","text":"In our experience, there are certain globally applicable elements of corporate governance that","page_number":269,"box":{"x":117,"y":118,"width":700,"height":12}},{"id":"03b676c1-ebe7-4a04-8d7a-3a253db67a31","block_type":"box","text":"contribute to a company’s ability to create long-term financial value for shareholders. These are topics","page_number":269,"box":{"x":116,"y":134,"width":761,"height":12}},{"id":"9d87ff49-8558-4b69-b75e-25ff5b13eb7b","block_type":"box","text":"that shareholders may have the ability to vote on at shareholder meetings. These areas include:","page_number":269,"box":{"x":116,"y":149,"width":717,"height":12}},{"id":"676f635e-bd1a-448a-9c3f-5e5f0dcab443","block_type":"box","text":"• Boards and directors","page_number":269,"box":{"x":117,"y":180,"width":192,"height":10}},{"id":"7a9e294b-421b-4380-a44e-f0c9a85ad377","block_type":"box","text":"• Auditors and audit-related issues","page_number":269,"box":{"x":117,"y":203,"width":282,"height":10}},{"id":"5847f0e1-3e7f-447e-91c9-635abe35d9b4","block_type":"box","text":"• Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":269,"box":{"x":117,"y":227,"width":635,"height":12}},{"id":"d52e571d-1241-44c0-9b36-b23e49a0f191","block_type":"box","text":"• Executive compensation","page_number":269,"box":{"x":117,"y":250,"width":219,"height":12}},{"id":"677bfe9e-2d55-4958-be11-eefefc9e56cd","block_type":"box","text":"• Shareholder protections and other significant corporate governance matters","page_number":269,"box":{"x":117,"y":273,"width":600,"height":12}},{"id":"af8d20da-176b-4aa7-b508-918efb38e4bd","block_type":"box","text":"• Shareholder proposals","page_number":269,"box":{"x":117,"y":296,"width":206,"height":12}},{"id":"445ba8ce-e83e-4311-8fc1-f709db014cef","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking","page_number":269,"box":{"x":116,"y":327,"width":744,"height":12}},{"id":"a9d76a75-b8ab-44f0-b1fd-c7c284d3986b","block_type":"box","text":"into consideration a number of company-specific factors, including the sector, market, and business","page_number":269,"box":{"x":117,"y":343,"width":744,"height":12}},{"id":"9ca49ffb-3678-4397-b731-00d9aaf3f65d","block_type":"box","text":"environment within which companies operate.","page_number":269,"box":{"x":116,"y":358,"width":345,"height":12}},{"id":"f63355da-0b8d-405a-a672-04a375ec0d1d","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance","page_number":269,"box":{"x":116,"y":389,"width":761,"height":12}},{"id":"4ec71dfe-3738-46dc-ae44-96868ecdcae4","block_type":"box","text":"standards in their domestic market at a minimum, and we ask that, if they do not, they explain how","page_number":269,"box":{"x":116,"y":405,"width":736,"height":12}},{"id":"3f2f3152-7c57-471b-9275-99759b2bb665","block_type":"box","text":"their approach better supports durable, long-term financial value creation. Our regional voting","page_number":269,"box":{"x":116,"y":420,"width":698,"height":12}},{"id":"c0d3eaab-fcfc-47b2-9ea9-eb53d170a9b9","block_type":"box","text":"guidelines explain how the BIS Global Principles inform our voting decisions in relation to common","page_number":269,"box":{"x":116,"y":436,"width":735,"height":12}},{"id":"77d9acc6-594e-4171-bc6c-ad0900cb49bb","block_type":"box","text":"ballot items for shareholder meetings in those markets.","page_number":269,"box":{"x":117,"y":451,"width":406,"height":12}},{"id":"96055926-f966-401b-aa5a-287fc5ea6343","block_type":"box","text":"4","page_number":269,"box":{"x":525,"y":451,"width":5,"height":7}},{"id":"ae22d6b2-90e0-498d-afc7-d96c72210147","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":269,"box":{"x":392,"y":490,"width":221,"height":10}},{"id":"b5dd62ae-15bf-40be-8403-3934e71dd195","block_type":"box","text":"Oversight role of the board","page_number":269,"box":{"x":116,"y":521,"width":221,"height":12}},{"id":"1f7d27dc-beab-4dea-bdcd-4cc910a4b921","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with","page_number":269,"box":{"x":117,"y":552,"width":676,"height":12}},{"id":"88a89dfc-fe6e-4fe7-9061-08f928e809ec","block_type":"box","text":"professional characteristics relevant to a company’s business enhance the board’s ability to add long","page_number":269,"box":{"x":117,"y":568,"width":753,"height":12}},{"id":"0c52ffc9-4d18-42cd-a945-7fba20490f27","block_type":"box","text":"term financial value and serve as the voice of shareholders in board discussions. In our view, a strong","page_number":269,"box":{"x":116,"y":583,"width":761,"height":12}},{"id":"2e86565c-6a9b-4f8b-afcd-e72a0a45db3a","block_type":"box","text":"board gives a company a competitive advantage, providing valuable oversight and contributing to the","page_number":269,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"70e01ecd-438b-49de-8f3e-eef127f54889","block_type":"box","text":"most important management decisions that support long-term financial performance.","page_number":269,"box":{"x":117,"y":614,"width":632,"height":12}},{"id":"38e62c49-5d8e-42b7-adfa-b95b811e530b","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors.","page_number":269,"box":{"x":117,"y":645,"width":768,"height":12}},{"id":"08b3a12e-1745-4695-b73e-4952ade8b61a","block_type":"box","text":"We engage, as necessary, with members of the board’s nominating and/or governance committee to","page_number":269,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"d9f96ec4-5581-4c9f-bae8-b2d75bf8ba09","block_type":"box","text":"assess whether governance practices and board composition are effective given a company’s","page_number":269,"box":{"x":116,"y":676,"width":696,"height":12}},{"id":"f2077d6c-48c1-4785-9b34-c55b018ce273","block_type":"box","text":"business model, sector, market, and the business environment in which a company is operating.","page_number":269,"box":{"x":117,"y":692,"width":713,"height":12}},{"id":"16b55c47-5701-45f0-acca-ca67d6748bb2","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and","page_number":269,"box":{"x":116,"y":723,"width":730,"height":12}},{"id":"6ba4e6cd-9e81-4669-a32f-b5fd43c192aa","block_type":"box","text":"effective governance mechanisms that supports its oversight of the company’s strategy and","page_number":269,"box":{"x":116,"y":738,"width":679,"height":12}},{"id":"aa73cd21-b49e-48cf-ac41-3d0928c7c31d","block_type":"box","text":"operations, consistent with the long-term financial interests of investors. This includes having clear","page_number":269,"box":{"x":116,"y":754,"width":731,"height":12}},{"id":"bb598639-f7b6-457a-b655-3554b240cc83","block_type":"box","text":"descriptions of the role of the board and the committees of the board and how directors engage with","page_number":269,"box":{"x":116,"y":769,"width":742,"height":12}},{"id":"80d67dfa-1a33-4717-90b0-641ae268d1a7","block_type":"box","text":"and oversee management, as well as disclosure of material risks that may affect a company’s long","page_number":269,"box":{"x":116,"y":785,"width":738,"height":12}},{"id":"df4b57d9-3307-484b-aeca-5ed9284a55f2","block_type":"box","text":"term strategy and how management is effectively identifying, managing, and mitigating such risks.","page_number":269,"box":{"x":116,"y":800,"width":726,"height":12}},{"id":"203265dd-639d-4af7-966e-e2b1934a45c2","block_type":"box","text":"4","page_number":269,"box":{"x":143,"y":841,"width":4,"height":5}},{"id":"31e371a1-88b4-4883-8e79-78beb5d41d32","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market, generally","page_number":269,"box":{"x":170,"y":841,"width":702,"height":9}},{"id":"18342e79-a167-44ac-9269-a0637a16168a","block_type":"box","text":"accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives, amongst other","page_number":269,"box":{"x":170,"y":854,"width":712,"height":9}},{"id":"c2832157-190d-4ddd-8dd4-6a7328ed47b0","block_type":"box","text":"factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote operations (including","page_number":269,"box":{"x":170,"y":867,"width":688,"height":9}},{"id":"505b552a-2873-4cf5-9d73-0189e3ad4acf","block_type":"box","text":"maintaining records of votes cast) in a manner consistent with the relevant regional voting guidelines.","page_number":269,"box":{"x":170,"y":880,"width":600,"height":9}},{"id":"ee48de6c-a9e9-4c91-a7f1-2ea9f635434c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":269,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"c4090458-e856-4adf-bb5e-43dd74e18868","block_type":"box","text":"Global Principles |","page_number":269,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"a90fe2b5-e634-4c5b-989c-ae5850e193fb","block_type":"box","text":"5","page_number":269,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"acea59a5-0d03-44cc-aa43-df2b2cbf8192","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":269,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"870d7ef7-dafe-457a-8cb5-1c2862fef695","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should","page_number":270,"box":{"x":117,"y":87,"width":747,"height":12}},{"id":"5b00a3c4-b9f7-4559-a904-dd6ee92e6956","block_type":"box","text":"assess its implementation is central to our approach. If any strategic targets are significantly missed or","page_number":270,"box":{"x":116,"y":102,"width":765,"height":13}},{"id":"31f9712e-2675-450d-bef7-e99c7a68e5a6","block_type":"box","text":"materially restated, we find it helpful when company disclosures provide a detailed explanation of the","page_number":270,"box":{"x":117,"y":118,"width":753,"height":12}},{"id":"b5804cc4-65eb-42ed-9d18-42296ba5192b","block_type":"box","text":"changes and an indication of the board’s role in reviewing the revised targets. We look to the board to","page_number":270,"box":{"x":116,"y":134,"width":759,"height":12}},{"id":"0c3ab2df-3a93-4e26-9ec4-68f25b3305e0","block_type":"box","text":"articulate the effectiveness of these mechanisms in overseeing the management of business risks and","page_number":270,"box":{"x":116,"y":149,"width":765,"height":12}},{"id":"fa41116d-fde8-49c2-af3c-2d219b4ed5c6","block_type":"box","text":"opportunities and the fulfillment of the company’s strategy.","page_number":270,"box":{"x":116,"y":165,"width":439,"height":12}},{"id":"21b5705c-4ba8-42d8-8033-00918c76e84a","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these","page_number":270,"box":{"x":116,"y":196,"width":727,"height":12}},{"id":"f1ccce3a-7deb-41fe-aa41-47da13f21b64","block_type":"box","text":"corporate governance and risk oversight responsibilities, we may consider not supporting the election","page_number":270,"box":{"x":116,"y":211,"width":757,"height":12}},{"id":"a0e2929e-b2eb-4b60-a114-829eee0307bb","block_type":"box","text":"of directors who, in our assessment, have particular responsibility for the issues.","page_number":270,"box":{"x":116,"y":227,"width":601,"height":12}},{"id":"92c55306-540e-4054-91d2-0325b36aced8","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that","page_number":270,"box":{"x":116,"y":258,"width":750,"height":12}},{"id":"d67bdb56-fa1e-4b05-8f72-d81a2c308c7b","block_type":"box","text":"speak to the board’s effectiveness as a group include the relevance of individual directors’","page_number":270,"box":{"x":116,"y":273,"width":673,"height":12}},{"id":"e4d58d78-21df-4217-ab23-dcbb48fcfa72","block_type":"box","text":"qualifications and skillsets, as well as directors’ capacity and other time commitments, and how these","page_number":270,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"c8bc9da8-4561-4a5f-8121-a52626cf7efd","block_type":"box","text":"factors may contribute to the company’s financial performance. We look to boards to establish formal","page_number":270,"box":{"x":116,"y":304,"width":754,"height":12}},{"id":"8cb0554a-4d38-491b-9ab2-f8c35f23763b","block_type":"box","text":"and transparent processes for nominating directors that reflect the company’s long-term strategy and","page_number":270,"box":{"x":116,"y":320,"width":754,"height":12}},{"id":"8f07c38e-aed5-4ea7-bc57-38d783a5a7a4","block_type":"box","text":"business model.","page_number":270,"box":{"x":117,"y":335,"width":125,"height":10}},{"id":"37074b8c-917d-4e14-853d-8a90dd6ffcfb","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our","page_number":270,"box":{"x":117,"y":366,"width":697,"height":12}},{"id":"fdcb7b48-f8bb-4547-a331-74ba8f526743","block_type":"box","text":"approach to board composition and how it underpins board effectiveness and long-term financial value","page_number":270,"box":{"x":116,"y":382,"width":766,"height":12}},{"id":"a5d0663d-7bae-4f4f-bb45-b8233866d993","block_type":"box","text":"creation.","page_number":270,"box":{"x":116,"y":397,"width":69,"height":10}},{"id":"3940aaa3-0d48-4198-8807-49555a7e7e76","block_type":"box","text":"Regular accountability through director elections","page_number":270,"box":{"x":117,"y":428,"width":397,"height":12}},{"id":"917475a3-b562-4513-903e-ccbb4b8801fc","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for,","page_number":270,"box":{"x":116,"y":459,"width":756,"height":12}},{"id":"d1942066-a965-4859-ae72-f248d1bf0bbd","block_type":"box","text":"or concern about, the performance of the board in overseeing and advising management. To ensure","page_number":270,"box":{"x":116,"y":475,"width":749,"height":12}},{"id":"b8bc066e-fdf8-49ec-a8aa-1b586e172e68","block_type":"box","text":"accountability for their decisions on behalf of shareholders, directors should stand for election on a","page_number":270,"box":{"x":116,"y":490,"width":736,"height":12}},{"id":"7dfc2e8b-9ed3-4cc5-8d06-cf389f6c1b03","block_type":"box","text":"regular basis, ideally annually.","page_number":270,"box":{"x":117,"y":506,"width":223,"height":12}},{"id":"d5f1b8cd-aded-45ff-b0d5-5a4aa4b34dbb","block_type":"box","text":"5","page_number":270,"box":{"x":341,"y":506,"width":6,"height":6}},{"id":"c7551422-28b1-47c8-a2f8-76ad9d4277a8","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support","page_number":270,"box":{"x":347,"y":506,"width":517,"height":12}},{"id":"8d54a281-0181-43c5-9cfa-31ed16aeeb56","block_type":"box","text":"for, or concerns about, board members’ decisions in a timely manner. When board members are not","page_number":270,"box":{"x":116,"y":521,"width":749,"height":12}},{"id":"c2269523-e4bf-4a99-80f9-677eabd0fadf","block_type":"box","text":"elected annually, we consider it good practice for boards to have a rotation policy to ensure that,","page_number":270,"box":{"x":116,"y":537,"width":719,"height":12}},{"id":"ac149827-c08c-441f-8b4f-762201065811","block_type":"box","text":"through a board cycle, all directors have had their appointment re-confirmed, with a proportion of","page_number":270,"box":{"x":116,"y":552,"width":722,"height":12}},{"id":"b2ffae0b-8461-47e7-8324-2c83d1a0712e","block_type":"box","text":"directors being put forward for election at each shareholder meeting.","page_number":270,"box":{"x":116,"y":568,"width":513,"height":12}},{"id":"78bee190-8664-49a9-ad43-1529a904e6a2","block_type":"box","text":"Board quality and effectiveness","page_number":270,"box":{"x":117,"y":599,"width":257,"height":12}},{"id":"6ffba360-2173-4ccc-a8e2-58ee91bfe58a","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way","page_number":270,"box":{"x":117,"y":630,"width":770,"height":12}},{"id":"45f6b59e-5785-4f0a-804e-cdfc84f7e556","block_type":"box","text":"to reflect developments in the company’s strategy and the market environment. In our view, it is","page_number":270,"box":{"x":116,"y":645,"width":714,"height":12}},{"id":"d2ad2890-2338-4876-aee9-86d324db9c38","block_type":"box","text":"beneficial for new directors to be brought onto the board periodically to refresh the group’s thinking,","page_number":270,"box":{"x":117,"y":661,"width":735,"height":12}},{"id":"9942c8be-1385-4938-ba4e-1d3720be785e","block_type":"box","text":"while supporting both continuity and appropriate succession planning. We consider the average overall","page_number":270,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"6478b41b-6532-49d9-b51f-e2bac2d2d4e2","block_type":"box","text":"tenure of the board and seek a balance between the knowledge and experience of longer-serving","page_number":270,"box":{"x":116,"y":692,"width":723,"height":12}},{"id":"cb8da90e-cce2-406c-88d1-aa494b243668","block_type":"box","text":"directors and the fresh perspectives of directors who joined more recently.","page_number":270,"box":{"x":116,"y":707,"width":549,"height":12}},{"id":"3c28e451-d90e-43ec-87b1-f6d1020b78de","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election","page_number":270,"box":{"x":116,"y":738,"width":725,"height":12}},{"id":"9bff6167-5bf7-40b7-9b75-150d94c4a037","block_type":"box","text":"contribute to the effectiveness of the board. In our view, the company’s assessment should consider a","page_number":270,"box":{"x":116,"y":754,"width":757,"height":12}},{"id":"115d0df8-72d7-4d8f-a62b-f05915259c31","block_type":"box","text":"number of factors, including each director’s independence and time commitments, as well as the","page_number":270,"box":{"x":117,"y":769,"width":715,"height":12}},{"id":"42ef946b-11c2-43b5-9102-195615e4358c","block_type":"box","text":"breadth and relevance of director experiences and skillsets, and how these collectively contribute to","page_number":270,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"c58e298f-e35b-41d7-8d63-aa3f6dc5e3a2","block_type":"box","text":"the board’s effectiveness in advising and overseeing management in delivering long-term financial","page_number":270,"box":{"x":116,"y":800,"width":728,"height":12}},{"id":"69f6b592-a307-4d83-9ef6-916ffd836905","block_type":"box","text":"returns.","page_number":270,"box":{"x":117,"y":816,"width":54,"height":9}},{"id":"bb3d7a66-64d6-4988-8c90-bdbcde41b95f","block_type":"box","text":"5","page_number":270,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"3072d6e4-26f2-4d57-a9a4-88f738781a80","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law, market","page_number":270,"box":{"x":171,"y":867,"width":703,"height":9}},{"id":"287cd185-a900-42e4-bd7e-8d7010e46201","block_type":"box","text":"regulation or voluntary best practice.","page_number":270,"box":{"x":170,"y":880,"width":215,"height":9}},{"id":"ad3a87f9-c62c-487b-8890-08f7fc0b7a7d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":270,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"c54a33ef-d205-4d8c-b8ea-42bb9f3b25b5","block_type":"box","text":"Global Principles |","page_number":270,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"d1feb93c-c62c-48f8-bb4d-d5a62311a8e6","block_type":"box","text":"6","page_number":270,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"e058d616-9559-41aa-bb51-a61b4c951e4d","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":270,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"a5eb33d7-5723-4f1e-8aa6-49473f18ed6e","block_type":"box","text":"Director independence","page_number":271,"box":{"x":117,"y":87,"width":186,"height":12}},{"id":"f7f5a99b-c775-42fc-a664-00e33e9a7c3c","block_type":"box","text":"Director independence – from management, significant shareholders, or other related parties – is a","page_number":271,"box":{"x":117,"y":117,"width":738,"height":12}},{"id":"f86d4e65-94b8-446f-8373-3b350d920ef2","block_type":"box","text":"central tenet of sound corporate governance across markets.","page_number":271,"box":{"x":116,"y":132,"width":452,"height":12}},{"id":"5703d7cc-f6ce-4e13-a1a7-e4399d0137d9","block_type":"box","text":"6","page_number":271,"box":{"x":570,"y":132,"width":5,"height":6}},{"id":"8d50d621-f779-445e-9dd1-447a0fc317c1","block_type":"box","text":"We look to boards to have a sufficient","page_number":271,"box":{"x":576,"y":132,"width":290,"height":10}},{"id":"c035fea1-56da-4a29-ab01-1001c049eb50","block_type":"box","text":"number of independent directors, free from conflicts of interest or undue influence, to ensure objectivity","page_number":271,"box":{"x":117,"y":148,"width":768,"height":12}},{"id":"316f534b-4d5c-4b3a-babf-e8bc3bf84b4c","block_type":"box","text":"in the decision-making of the board and its ability to oversee management. We generally consider it","page_number":271,"box":{"x":117,"y":163,"width":742,"height":12}},{"id":"880beca4-ffb0-4aa9-84e5-16e87903cfb0","block_type":"box","text":"good practice for independent directors to make a majority of the board, or in the case of controlled","page_number":271,"box":{"x":116,"y":179,"width":740,"height":12}},{"id":"c410cdd2-b4d5-4543-9c9f-884f78c2cfa7","block_type":"box","text":"companies, at least one-third.","page_number":271,"box":{"x":116,"y":194,"width":225,"height":12}},{"id":"ada2c02c-5532-4ed7-aa6c-d22fca5ddc17","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":271,"box":{"x":117,"y":224,"width":557,"height":12}},{"id":"2fd2d3ae-ebff-46fd-9b73-4ce1cbdc0b37","block_type":"box","text":"• Current or recent employment at the company or a subsidiary","page_number":271,"box":{"x":117,"y":254,"width":495,"height":12}},{"id":"15ce94c8-0c86-4ff0-b3d3-cb75a6e56fc8","block_type":"box","text":"• Being, or representing, a shareholder with a substantial shareholding in the company","page_number":271,"box":{"x":117,"y":276,"width":668,"height":12}},{"id":"f1a21e5a-772b-4a39-80ce-ab1952f29ad5","block_type":"box","text":"• Interlocking directorates","page_number":271,"box":{"x":117,"y":299,"width":216,"height":12}},{"id":"cc3bc8c3-b302-49d4-b351-b0cba25ef759","block_type":"box","text":"• Having any other interest, business, or other relationship which could, or could reasonably be","page_number":271,"box":{"x":117,"y":322,"width":730,"height":12}},{"id":"a7de4134-324b-4f53-8363-159d7f6062b8","block_type":"box","text":"perceived to, materially interfere with a director’s ability to act in the best interests of the company","page_number":271,"box":{"x":150,"y":337,"width":729,"height":12}},{"id":"39ea44e8-b994-4080-9a1d-b9a99260ec7e","block_type":"box","text":"and shareholders","page_number":271,"box":{"x":150,"y":353,"width":134,"height":9}},{"id":"eaa06f29-b5f3-4388-b83c-7b304aab9ccb","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a","page_number":271,"box":{"x":117,"y":382,"width":759,"height":12}},{"id":"8097a740-405c-40d5-b669-4b52784613cd","block_type":"box","text":"senior, independent board leader. This director may chair the board, or, where the chair is also the","page_number":271,"box":{"x":116,"y":398,"width":736,"height":12}},{"id":"5b241fb9-9af9-47dc-96ad-f2ef8a328b0f","block_type":"box","text":"CEO (or is otherwise not independent), be designated as a lead independent director. The role of this","page_number":271,"box":{"x":117,"y":413,"width":757,"height":12}},{"id":"9f120655-cf6d-42b3-bb0a-2f07e08e6ad5","block_type":"box","text":"director is to support independent board members in fulfilling their oversight responsibilities effectively","page_number":271,"box":{"x":116,"y":429,"width":760,"height":12}},{"id":"d905f49a-d35d-402c-8b58-98604063e488","block_type":"box","text":"by shaping the agenda, ensuring adequate information is provided to the board, and encouraging","page_number":271,"box":{"x":117,"y":444,"width":726,"height":12}},{"id":"fed4c700-e720-435f-be25-9fa92f8d094a","block_type":"box","text":"independent director participation in board deliberations. We appreciate when the lead independent","page_number":271,"box":{"x":117,"y":460,"width":742,"height":12}},{"id":"fb53792b-1422-46a4-8e24-6077a0997fe1","block_type":"box","text":"director or another appropriate director is available to meet with shareholders to explain and","page_number":271,"box":{"x":116,"y":475,"width":687,"height":12}},{"id":"48c9f83d-00f8-4978-a283-d95229d34443","block_type":"box","text":"contextualize a company’s approach as a situation warrants.","page_number":271,"box":{"x":116,"y":491,"width":454,"height":12}},{"id":"98e2309f-17bc-490e-8304-7f5a34528c73","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or","page_number":271,"box":{"x":117,"y":520,"width":759,"height":13}},{"id":"3a365f56-0fd0-49b2-9d3a-c98eeffdb718","block_type":"box","text":"that require additional focus. It is our view that objective oversight of such matters is best achieved","page_number":271,"box":{"x":116,"y":536,"width":736,"height":12}},{"id":"0d9c10b1-bbfd-4903-b277-99ea75e316c1","block_type":"box","text":"when the board forms committees with a majority of independent directors, depending on market","page_number":271,"box":{"x":116,"y":551,"width":723,"height":13}},{"id":"0c4c0fb8-9c34-4acb-b8b7-0160c2acd363","block_type":"box","text":"norms and a company’s ownership structure. In many markets, these committees of the board","page_number":271,"box":{"x":117,"y":567,"width":704,"height":12}},{"id":"81560e5b-74f8-483d-923d-d6dfe748e039","block_type":"box","text":"specialize in audit, director nominations, and compensation matters, among others. An ad hoc","page_number":271,"box":{"x":116,"y":583,"width":703,"height":12}},{"id":"332894c7-3e41-4658-a47c-8e0ced931c8f","block_type":"box","text":"committee might also be formed to decide on a special transaction, particularly one involving a related","page_number":271,"box":{"x":116,"y":598,"width":762,"height":12}},{"id":"737978ef-574d-48d3-b182-5db5cc2e12c0","block_type":"box","text":"party, or to investigate a significant adverse event.","page_number":271,"box":{"x":117,"y":613,"width":378,"height":13}},{"id":"99ba6d48-3105-4f42-8f69-96f92c0fda26","block_type":"box","text":"Sufficient capacity","page_number":271,"box":{"x":116,"y":643,"width":153,"height":12}},{"id":"274b97e0-ed8f-40b2-af46-f20900ae6f68","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to","page_number":271,"box":{"x":116,"y":673,"width":709,"height":12}},{"id":"e1cbea5b-345e-4673-9acb-7c66e4067aa2","block_type":"box","text":"commit an appropriate amount of time to board and committee matters. It is important that directors","page_number":271,"box":{"x":116,"y":688,"width":738,"height":12}},{"id":"0c952cfe-c5d6-45b2-a681-9a672428a551","block_type":"box","text":"have the capacity to meet all of their responsibilities – including when there are unforeseen events –","page_number":271,"box":{"x":117,"y":704,"width":743,"height":12}},{"id":"6905659a-08ad-4da0-8590-31f593466d7d","block_type":"box","text":"and therefore, we consider it best practice when they don’t take on an excessive number of roles that","page_number":271,"box":{"x":116,"y":719,"width":751,"height":13}},{"id":"5774f5cd-2f9f-4739-9768-9da574c6ec2f","block_type":"box","text":"would impair their ability to fulfill their duties.","page_number":271,"box":{"x":116,"y":735,"width":326,"height":12}},{"id":"78ad1b16-adfd-4f61-b965-e10c42c16d38","block_type":"box","text":"Board composition","page_number":271,"box":{"x":117,"y":765,"width":151,"height":12}},{"id":"4ddf43b9-c328-439d-a897-46e383d3ec12","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model,","page_number":271,"box":{"x":117,"y":795,"width":708,"height":11}},{"id":"5a20b7bb-2687-40d5-838b-031e05a99245","block_type":"box","text":"strategy, market capitalization, and ownership structure, as well as the market in which the company","page_number":271,"box":{"x":116,"y":810,"width":745,"height":12}},{"id":"ff6e471a-e1fb-4ae9-838f-c7f3bb01ecc0","block_type":"box","text":"operates. We find it helpful when companies explain how their approach to board composition supports","page_number":271,"box":{"x":116,"y":825,"width":771,"height":12}},{"id":"e670c0e9-08f8-4b21-aca4-a5da309d34c4","block_type":"box","text":"the company’s governance practices.","page_number":271,"box":{"x":116,"y":841,"width":282,"height":12}},{"id":"63780b9a-0d6b-4f74-aa31-1fd35959da46","block_type":"box","text":"6","page_number":271,"box":{"x":143,"y":866,"width":4,"height":5}},{"id":"b4a81f54-e126-4bf8-88a5-49b29cc716cd","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":271,"box":{"x":171,"y":866,"width":683,"height":10}},{"id":"0cddc278-0266-477b-a87d-78e3d5124d7e","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":271,"box":{"x":171,"y":879,"width":587,"height":10}},{"id":"68a2fa0a-68e2-4685-b0c4-e0111cadf075","block_type":"box","text":"BlackRock Investment Stewardship","page_number":271,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"359c969b-5751-4edc-bd87-c467fd996dad","block_type":"box","text":"Global Principles |","page_number":271,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"18ffd49a-a845-443a-a7ce-a24d849efe6e","block_type":"box","text":"7","page_number":271,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"df4168e2-047f-4ac0-b8fd-1aff46fb97d0","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":271,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"5749105d-9434-448a-8a88-3eb32c7eaee7","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the","page_number":272,"box":{"x":116,"y":87,"width":760,"height":12}},{"id":"d40623e8-7692-4fa8-b435-7b13c383b3e7","block_type":"box","text":"individual candidates so that shareholders can assess the capabilities and suitability of each individual","page_number":272,"box":{"x":117,"y":102,"width":763,"height":13}},{"id":"8c2537e4-ab3b-40db-83d5-a2babfbe6cbe","block_type":"box","text":"nominee and their fit within overall board composition. These disclosures should explain how the","page_number":272,"box":{"x":117,"y":118,"width":721,"height":12}},{"id":"b5088648-37ca-4cfe-ba68-0d85cb9b87ba","block_type":"box","text":"collective experience and expertise of the board, as well as the particular skillsets of individual","page_number":272,"box":{"x":116,"y":134,"width":703,"height":11}},{"id":"b94e5502-bb1e-49da-a143-7f0e1945711c","block_type":"box","text":"directors, aligns with the company’s long-term strategy. Highly qualified, engaged directors with","page_number":272,"box":{"x":116,"y":149,"width":713,"height":12}},{"id":"0b708f5e-1c08-4732-afc3-2052caf5639d","block_type":"box","text":"professional characteristics relevant to a company’s business and strategy enhance the ability of the","page_number":272,"box":{"x":117,"y":165,"width":749,"height":12}},{"id":"12d3ba6d-d2aa-4113-a77f-55f7e92fda14","block_type":"box","text":"board to add value and be the voice of shareholders in board discussions.","page_number":272,"box":{"x":117,"y":180,"width":554,"height":10}},{"id":"8f0186ee-de6e-449d-9a34-2210e89115f1","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the","page_number":272,"box":{"x":117,"y":208,"width":755,"height":12}},{"id":"dc6c54d3-afb5-4800-967b-f555065981af","block_type":"box","text":"board room. We see it as a means of avoiding “group think” in the board’s exercise of its","page_number":272,"box":{"x":117,"y":224,"width":659,"height":12}},{"id":"69e8d90b-91da-45f3-a508-317caae46a11","block_type":"box","text":"responsibilities to advise and oversee management. We note that in many markets, policymakers have","page_number":272,"box":{"x":117,"y":239,"width":768,"height":12}},{"id":"77cfc1b5-96c9-4512-90f6-2728e60d90dd","block_type":"box","text":"set board gender diversity goals which we may discuss with companies, particularly if there is a risk","page_number":272,"box":{"x":116,"y":255,"width":743,"height":12}},{"id":"4040eb84-6ebc-4f19-bb0c-e63eeb229070","block_type":"box","text":"their board composition may be misaligned.","page_number":272,"box":{"x":116,"y":270,"width":329,"height":12}},{"id":"0cd73632-bdd2-4db2-a4d5-b4f3f6734808","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":272,"box":{"x":331,"y":305,"width":341,"height":9}},{"id":"7fa4f1df-6d13-4589-900f-1e255a590979","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate","page_number":272,"box":{"x":117,"y":333,"width":725,"height":12}},{"id":"639d564a-dfde-4a5e-bc8d-7ba276a61354","block_type":"box","text":"portrayal of a company’s financial condition. Accordingly, we look for the assumptions made by","page_number":272,"box":{"x":117,"y":349,"width":709,"height":12}},{"id":"8a568ffa-da67-4314-bb4e-1621dd0ed0c8","block_type":"box","text":"management, and reviewed by the auditor in preparing the financial statements, to be reasonable and","page_number":272,"box":{"x":117,"y":364,"width":760,"height":12}},{"id":"bc65c7d5-2693-4e9a-afd6-a9cd5ba12121","block_type":"box","text":"justified.","page_number":272,"box":{"x":115,"y":380,"width":67,"height":12}},{"id":"32e73a97-0ec3-4b87-863e-b9f21fde99d7","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":272,"box":{"x":116,"y":408,"width":754,"height":12}},{"id":"de49b166-3865-4949-b38e-191a5c4aa3a4","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important","page_number":272,"box":{"x":117,"y":423,"width":746,"height":12}},{"id":"c8327d51-4725-4352-ad2c-83bf48c83d2e","block_type":"box","text":"role in a company’s financial reporting system by providing independent oversight of the accounts,","page_number":272,"box":{"x":117,"y":439,"width":733,"height":12}},{"id":"a0fc8a2e-0670-4bae-9921-e7e28b1e3768","block_type":"box","text":"material financial, and, where appropriate to the jurisdiction, non-financial information and internal","page_number":272,"box":{"x":117,"y":454,"width":728,"height":12}},{"id":"307156c4-ac7a-47ed-9276-fad914b58b1c","block_type":"box","text":"control frameworks. Moreover, in the absence of a dedicated risk committee, these committees can","page_number":272,"box":{"x":116,"y":470,"width":743,"height":11}},{"id":"57dfae39-48d7-44a6-9975-4144c9eac2bb","block_type":"box","text":"provide oversight of Enterprise Risk Management systems.","page_number":272,"box":{"x":117,"y":485,"width":437,"height":12}},{"id":"2ef2c6d9-85cd-4ad2-832f-9e260451bdfc","block_type":"box","text":"7","page_number":272,"box":{"x":556,"y":486,"width":5,"height":5}},{"id":"197de407-2032-4968-a7cc-6d25c76ab4f4","block_type":"box","text":"In our view, effective audit committee","page_number":272,"box":{"x":562,"y":485,"width":286,"height":12}},{"id":"4b8b4cff-f0f6-4d92-839e-9ea6377b1b7a","block_type":"box","text":"oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":272,"box":{"x":116,"y":501,"width":745,"height":12}},{"id":"0d7be742-b909-4a43-924f-d86edf45ebe2","block_type":"box","text":"important level of reassurance to shareholders.","page_number":272,"box":{"x":117,"y":516,"width":354,"height":12}},{"id":"5cc6cc02-09d7-4ba2-8e66-c62e0d1348d7","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":272,"box":{"x":116,"y":545,"width":750,"height":12}},{"id":"32399977-2d41-4a83-8d53-fe91fc0c6997","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership","page_number":272,"box":{"x":117,"y":560,"width":765,"height":12}},{"id":"ca6e65d5-6480-4018-9bea-82a8929c8f7c","block_type":"box","text":"and introduce new perspectives. We recognize that audit committees will rely on management, internal","page_number":272,"box":{"x":116,"y":576,"width":769,"height":12}},{"id":"6b34e1ac-2d4c-4bef-b8b7-9d46aa3b0cc2","block_type":"box","text":"audit, and the independent auditor to fulfill their responsibilities. However, we look to committee","page_number":272,"box":{"x":116,"y":591,"width":712,"height":12}},{"id":"a18227ba-66a8-47a7-93dc-10a3ec63c647","block_type":"box","text":"members to demonstrate they have relevant expertise to monitor and oversee the audit process and","page_number":272,"box":{"x":117,"y":607,"width":749,"height":12}},{"id":"61e6ac12-918e-4944-9a9c-6421aa2e2b00","block_type":"box","text":"related activities.","page_number":272,"box":{"x":117,"y":622,"width":129,"height":10}},{"id":"f0743bfe-9ac6-4a1d-b691-a5114104b134","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant","page_number":272,"box":{"x":116,"y":650,"width":753,"height":12}},{"id":"8e497a85-5454-416c-baa5-25314547a381","block_type":"box","text":"financial restatements, or ad hoc notifications of material financial weakness. In this respect, we look to","page_number":272,"box":{"x":116,"y":666,"width":765,"height":12}},{"id":"e3ec756f-782d-4c9b-bf5e-ae621254ec4b","block_type":"box","text":"audit committees to provide timely disclosure on the remediation of key and critical audit matters","page_number":272,"box":{"x":116,"y":681,"width":715,"height":12}},{"id":"430b5277-53ec-4a66-8c44-0151fc648202","block_type":"box","text":"identified either by the external auditor or internal audit function.","page_number":272,"box":{"x":117,"y":697,"width":472,"height":12}},{"id":"4fc87569-a540-49c4-a832-a5e5f5cd72c0","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":272,"box":{"x":116,"y":725,"width":748,"height":12}},{"id":"36279ba0-f92e-4a17-959c-93544b063d0d","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that","page_number":272,"box":{"x":116,"y":741,"width":750,"height":12}},{"id":"93bd4b14-f26d-4575-aca4-48cb23d70e2c","block_type":"box","text":"auditors are, and are seen to be, independent. Where an audit firm provides services to the company","page_number":272,"box":{"x":116,"y":756,"width":751,"height":12}},{"id":"7eacc82c-6d9f-4f01-875d-39deb6b1b550","block_type":"box","text":"in addition to the audit, we look for the fees","page_number":272,"box":{"x":117,"y":772,"width":318,"height":11}},{"id":"e5d7bf54-114e-4495-a63f-b1907d71f9fd","block_type":"box","text":"earned to be disclosed and explained. We look for audit","page_number":272,"box":{"x":441,"y":772,"width":414,"height":12}},{"id":"e8ccc0d9-02d5-439d-85dc-5688b6f9c915","block_type":"box","text":"committees to have in place a procedure for assessing the independence of the auditor and the quality","page_number":272,"box":{"x":116,"y":787,"width":762,"height":12}},{"id":"dce34890-ac8b-44e3-9c03-a3d95613fd29","block_type":"box","text":"of the external audit process on an annual basis.","page_number":272,"box":{"x":116,"y":803,"width":360,"height":12}},{"id":"774083ef-58cd-49be-83ee-27e80e7afbb7","block_type":"box","text":"7","page_number":272,"box":{"x":143,"y":828,"width":4,"height":5}},{"id":"f6c63079-4209-42b6-befa-6f1801371755","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":272,"box":{"x":171,"y":828,"width":648,"height":9}},{"id":"abb97cf8-3420-4375-b6d6-cf1939c6a5d6","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the","page_number":272,"box":{"x":170,"y":841,"width":709,"height":9}},{"id":"00664551-c5c9-405d-b32e-4736a9c0050b","block_type":"box","text":"entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement of","page_number":272,"box":{"x":170,"y":854,"width":690,"height":9}},{"id":"fa1cbcf3-9446-4c81-9019-32b8e129f5da","block_type":"box","text":"objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO), “Enterprise","page_number":272,"box":{"x":170,"y":866,"width":710,"height":10}},{"id":"59ee0e1b-9a2f-4828-b047-ea26fec79059","block_type":"box","text":"Risk Management,” 2023, accessed in December 2025.","page_number":272,"box":{"x":171,"y":879,"width":329,"height":10}},{"id":"dcd29b35-0774-44dc-8538-928c00df0b4e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":272,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"99f4fa7f-d195-4086-9305-c516ec64e583","block_type":"box","text":"Global Principles |","page_number":272,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"5bdb9191-e80f-4e5d-97bd-5fb64609e3a8","block_type":"box","text":"8","page_number":272,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"2a8092e2-d6ed-4eb2-8730-c1a7fd6d2bc7","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":272,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"f22d3362-594f-43b9-b646-bdc9da1c4c00","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term","page_number":273,"box":{"x":117,"y":87,"width":719,"height":12}},{"id":"73536420-2a32-456b-8787-dbddfbd5d1bd","block_type":"box","text":"operational risk management practices and, more broadly, the quality of the board’s oversight. We look","page_number":273,"box":{"x":116,"y":102,"width":770,"height":13}},{"id":"11056082-1342-4244-a798-785683415df2","block_type":"box","text":"to the audit or risk committee to periodically review the company’s risk assessment and risk","page_number":273,"box":{"x":116,"y":118,"width":684,"height":12}},{"id":"316a385f-b091-4c64-8551-5d6b9aedbe38","block_type":"box","text":"management policies and the significant risks and exposures identified by management, the internal","page_number":273,"box":{"x":117,"y":134,"width":747,"height":12}},{"id":"cb90ad79-edce-4f24-8c64-d51dff1884cb","block_type":"box","text":"auditors or the independent auditors, and management’s steps to address them. In the absence of","page_number":273,"box":{"x":116,"y":149,"width":735,"height":12}},{"id":"74a4fd0b-a8f3-4522-a553-8079ea5305de","block_type":"box","text":"detailed disclosures, we may conclude that companies are not adequately managing risk.","page_number":273,"box":{"x":116,"y":165,"width":668,"height":12}},{"id":"4eac9b1c-7549-4adc-abba-ed5ce12ac27f","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL","page_number":273,"box":{"x":141,"y":203,"width":723,"height":12}},{"id":"27881839-ef9a-401f-b61d-f0dd2c2d1e6f","block_type":"box","text":"SITUATIONS","page_number":273,"box":{"x":449,"y":219,"width":106,"height":9}},{"id":"9ce9cb99-775c-4e2b-9934-2fe802556993","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment","page_number":273,"box":{"x":116,"y":250,"width":766,"height":12}},{"id":"1820ae4c-2d8f-4162-8b7e-c27e7ebe3625","block_type":"box","text":"and the priority of their interest in the company relative to that of other equity or debt investors.","page_number":273,"box":{"x":116,"y":265,"width":707,"height":12}},{"id":"9ae9662e-44f2-40a7-96ce-1bdd55ab17f2","block_type":"box","text":"Pre-emptive rights are a key protection for shareholders against the dilution of their interests.","page_number":273,"box":{"x":117,"y":281,"width":693,"height":12}},{"id":"6b66f0b8-78f4-4e3f-a2e1-b44a6708b694","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure","page_number":273,"box":{"x":117,"y":312,"width":746,"height":12}},{"id":"9713d3b2-4481-4a44-96ee-893ff46ca95a","block_type":"box","text":"and differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce","page_number":273,"box":{"x":116,"y":327,"width":754,"height":12}},{"id":"ce42065a-bdd2-4a1b-b357-35661316f994","block_type":"box","text":"the adoption of “one share, one vote” for registered shareholders.","page_number":273,"box":{"x":116,"y":343,"width":491,"height":12}},{"id":"327784de-0e77-4c52-9ae7-26b312805aa1","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a","page_number":273,"box":{"x":117,"y":374,"width":740,"height":12}},{"id":"bbac6eb6-1920-4b5a-ae35-4a21944e7caa","block_type":"box","text":"valid reason for listing dual classes of shares with differentiated voting rights. In our view, such","page_number":273,"box":{"x":116,"y":389,"width":706,"height":12}},{"id":"90de62ce-d2cf-42ce-8d55-7adbd37a4654","block_type":"box","text":"companies should review these share class structures on a regular basis or as company","page_number":273,"box":{"x":116,"y":405,"width":661,"height":12}},{"id":"db964c16-44a7-428c-83f5-246bde1fe107","block_type":"box","text":"circumstances change. Additionally, they should seek shareholder approval of their capital structure on","page_number":273,"box":{"x":116,"y":420,"width":769,"height":12}},{"id":"65f9ca42-bcc4-4588-b3af-67a1b8386bd7","block_type":"box","text":"a periodic basis via a management proposal at the company’s shareholder meeting. The proposal","page_number":273,"box":{"x":116,"y":436,"width":731,"height":12}},{"id":"22b60633-2287-40e3-a78c-7112c0a04fd2","block_type":"box","text":"should give unaffiliated shareholders the opportunity to affirm the current structure or establish","page_number":273,"box":{"x":116,"y":451,"width":705,"height":12}},{"id":"6c26daa6-c868-4dd9-aaaf-5482c4bd1ef6","block_type":"box","text":"mechanisms to end or phase out controlling structures at the appropriate time, while minimizing costs","page_number":273,"box":{"x":117,"y":467,"width":757,"height":12}},{"id":"bc3ee35b-f13a-4b3c-a580-d19672ce3421","block_type":"box","text":"to shareholders.","page_number":273,"box":{"x":116,"y":482,"width":125,"height":10}},{"id":"755bb367-7148-499f-bc98-02abf476226b","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long","page_number":273,"box":{"x":117,"y":513,"width":745,"height":12}},{"id":"b54acd59-b92a-4c22-aeb3-e9d813789505","block_type":"box","text":"term financial interests of our clients as shareholders, and so we will review any proposed transaction","page_number":273,"box":{"x":116,"y":529,"width":758,"height":12}},{"id":"4a3cc439-baa8-4566-9244-c8386bfb92a8","block_type":"box","text":"with that objective in mind. Typically, we review factors such as whether the proposed transaction has","page_number":273,"box":{"x":116,"y":544,"width":760,"height":12}},{"id":"b760e86a-3a78-438e-a5c4-6612f9c5c5df","block_type":"box","text":"the unanimous support of the board and has been negotiated at arm’s length, and whether the board","page_number":273,"box":{"x":116,"y":560,"width":753,"height":12}},{"id":"01c9cecc-e087-4872-b295-1393734bd8fe","block_type":"box","text":"or management has clearly explained its economic and strategic rationale. We may also seek","page_number":273,"box":{"x":116,"y":576,"width":699,"height":11}},{"id":"8de272d6-54a7-42e8-84ed-1d359b3e97e4","block_type":"box","text":"reassurance from the board that the financial interests of executives and/or board members in a given","page_number":273,"box":{"x":117,"y":591,"width":761,"height":12}},{"id":"d98897a3-263e-4ce5-bc1f-b82de5e7ce51","block_type":"box","text":"transaction have not adversely affected their ability to place shareholders’ interests before their own.","page_number":273,"box":{"x":116,"y":606,"width":750,"height":12}},{"id":"18ae7a34-5f4e-4105-821a-72466beca0dc","block_type":"box","text":"Where the transaction involves related parties, the recommendation to support should come from the","page_number":273,"box":{"x":116,"y":622,"width":755,"height":12}},{"id":"e6ccfd2f-c23c-4904-84b2-cdad4f4275ab","block_type":"box","text":"independent directors, a best practice in most markets, and ideally, the terms should have been","page_number":273,"box":{"x":117,"y":638,"width":715,"height":11}},{"id":"cd7a99c6-2035-4ed6-947a-3ffddc23cd81","block_type":"box","text":"assessed through an independent appraisal process. In addition, it is good practice that it be approved","page_number":273,"box":{"x":116,"y":653,"width":766,"height":12}},{"id":"ceb9885f-6a16-4daa-ac07-1bb3e30d3577","block_type":"box","text":"by a separate vote of the non-conflicted parties.","page_number":273,"box":{"x":117,"y":668,"width":352,"height":12}},{"id":"4464b15e-1db0-4f7b-81eb-b2f73a410a17","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company","page_number":273,"box":{"x":116,"y":699,"width":738,"height":13}},{"id":"d6daabe6-105c-46e2-adde-9ab0ea258a37","block_type":"box","text":"shares in the open market without unnecessary restriction. In our view, corporate mechanisms","page_number":273,"box":{"x":116,"y":715,"width":700,"height":12}},{"id":"5b4219ed-a8ac-411a-8d66-1aac66dd70b6","block_type":"box","text":"designed to limit shareholders’ ability to sell their shares are contrary to basic property rights. Such","page_number":273,"box":{"x":116,"y":730,"width":732,"height":13}},{"id":"dd33221a-c041-4c46-a8d6-9a0eac9af8be","block_type":"box","text":"mechanisms can serve to protect and entrench interests other than those of the shareholders. In our","page_number":273,"box":{"x":117,"y":746,"width":745,"height":12}},{"id":"0ca0cf11-7734-4ead-ad66-57781e0e1ec3","block_type":"box","text":"view, shareholders are broadly capable of making decisions in their own best interests. We encourage","page_number":273,"box":{"x":116,"y":761,"width":759,"height":13}},{"id":"2e8d7ee3-f61d-4b2e-90dc-5730c235b8e4","block_type":"box","text":"any shareholder rights plans proposed by a board to be subject to shareholder approval upon","page_number":273,"box":{"x":116,"y":777,"width":693,"height":12}},{"id":"9df43d35-67cd-4cd8-b1c8-d12ecc2269d3","block_type":"box","text":"introduction and periodically thereafter.","page_number":273,"box":{"x":117,"y":792,"width":287,"height":13}},{"id":"da343eae-67b2-4c00-9b46-5be9898d8660","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":273,"box":{"x":318,"y":831,"width":369,"height":10}},{"id":"be44b0f2-de04-48a6-9620-84246f23533f","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value","page_number":273,"box":{"x":117,"y":862,"width":749,"height":12}},{"id":"40c05a33-7e39-4ec6-8cf2-5aa39a1016e8","block_type":"box","text":"creation. A well-structured compensation policy rewards the successful delivery of strategic,","page_number":273,"box":{"x":116,"y":878,"width":686,"height":12}},{"id":"8f62d019-5d90-4788-a16b-2a09763200cc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":273,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"b11413cb-bd2f-4769-a159-89f015770177","block_type":"box","text":"Global Principles |","page_number":273,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"ca9fc121-45df-49d2-8596-a1c3b555c536","block_type":"box","text":"9","page_number":273,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"af64e2dc-6f0e-4137-a5e7-1075f88397c9","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":273,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"3efff514-47bb-4567-a0ab-82c688ce712c","block_type":"box","text":"operational, and/or financial goals; encourages an appropriate risk appetite; and aligns the interests of","page_number":274,"box":{"x":116,"y":87,"width":763,"height":12}},{"id":"f5bae435-7bcf-4863-a53a-4342d2b4c6ce","block_type":"box","text":"shareholders and executives through equity ownership.","page_number":274,"box":{"x":116,"y":103,"width":410,"height":12}},{"id":"86dae5ce-c1c5-4d01-93ff-0e475efa41f8","block_type":"box","text":"8","page_number":274,"box":{"x":528,"y":103,"width":5,"height":6}},{"id":"c13a9c0b-4041-4a69-9d1e-05555c96507f","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support","page_number":274,"box":{"x":116,"y":134,"width":751,"height":12}},{"id":"fb9c18d2-64bd-44b8-84cd-2f737072f515","block_type":"box","text":"sustained financial value creation for our clients as shareholders. We appreciate when performance","page_number":274,"box":{"x":116,"y":149,"width":744,"height":12}},{"id":"c4cfda90-a797-443b-a66b-9799826a6d86","block_type":"box","text":"targets incorporate ambitious objectives, and the corresponding metrics are aligned with the","page_number":274,"box":{"x":116,"y":165,"width":687,"height":12}},{"id":"54d61d3c-862a-4562-aee5-ae015515ebed","block_type":"box","text":"company’s strategy and business model. BIS does not have a position on whether companies choose","page_number":274,"box":{"x":116,"y":180,"width":760,"height":12}},{"id":"9f8674b7-df7e-4d2c-8610-64d438b520e2","block_type":"box","text":"to use sustainability-related criteria in compensation structures, but, where they are included, we look","page_number":274,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"a91f780c-0de2-4bfb-b003-17b1bd49fde1","block_type":"box","text":"to companies to be as rigorous as they would be in setting other financial or operational targets. We","page_number":274,"box":{"x":116,"y":211,"width":745,"height":12}},{"id":"91b61e68-06d5-41da-928d-ccbf200e7015","block_type":"box","text":"appreciate when long-term incentive plans encompass timeframes that: 1) are distinct from annual","page_number":274,"box":{"x":116,"y":227,"width":735,"height":12}},{"id":"dae79885-241d-4c4f-821d-8b5306f56d27","block_type":"box","text":"executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":274,"box":{"x":116,"y":242,"width":724,"height":12}},{"id":"bca5946d-f625-4e68-9c5e-f4fab359d00b","block_type":"box","text":"results over a period of years.","page_number":274,"box":{"x":117,"y":258,"width":225,"height":12}},{"id":"cab25815-c8d3-4f7b-afa7-663b789fa542","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":274,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"c2443561-3895-4301-aef0-ba796e19ebc8","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may","page_number":274,"box":{"x":116,"y":304,"width":720,"height":12}},{"id":"bd6dbf06-062b-4c26-a4bc-eb5b9ebf15a1","block_type":"box","text":"include the company’s risk profile, the environment it operates in, and the individuals the board is trying","page_number":274,"box":{"x":117,"y":320,"width":770,"height":12}},{"id":"763c3c67-b5e0-49e8-8d11-eb4fbddb7ffb","block_type":"box","text":"to attract and retain. We look to the compensation committees to guard against contractual","page_number":274,"box":{"x":116,"y":335,"width":679,"height":12}},{"id":"d8d8541c-9377-4b53-8ad9-d065799cfeca","block_type":"box","text":"arrangements that would entitle executives to material compensation for early termination of their","page_number":274,"box":{"x":116,"y":351,"width":726,"height":12}},{"id":"53d908ea-b347-4b59-8cb4-145283241757","block_type":"box","text":"employment. Finally, we look for pension contributions and other deferred compensation arrangements","page_number":274,"box":{"x":116,"y":366,"width":770,"height":12}},{"id":"99fc45d9-f7e5-4478-96e5-5b356430b5a8","block_type":"box","text":"to be reasonable in light of market practices or the company’s business and executive compensation","page_number":274,"box":{"x":116,"y":382,"width":752,"height":12}},{"id":"b52f0ccd-b10f-49ce-8b26-212548127582","block_type":"box","text":"strategies.","page_number":274,"box":{"x":116,"y":397,"width":82,"height":12}},{"id":"a0edd3eb-0c8b-4523-89ce-d5af175da7d1","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance.","page_number":274,"box":{"x":116,"y":428,"width":755,"height":12}},{"id":"7810d151-82a5-4905-9a0c-9640af16aa05","block_type":"box","text":"Where discretion has been used by the compensation committee, or its equivalent, we appreciate","page_number":274,"box":{"x":116,"y":444,"width":730,"height":12}},{"id":"7dd917af-258c-4668-9f43-f1324cde6728","block_type":"box","text":"disclosure relating to how and why the discretion was used, and how the adjusted outcome is aligned","page_number":274,"box":{"x":116,"y":459,"width":757,"height":12}},{"id":"7daf6abe-62b2-4afb-9d4e-38c30a078d10","block_type":"box","text":"with the interests of shareholders. In addition, we acknowledge that the use of peer group evaluation","page_number":274,"box":{"x":116,"y":475,"width":751,"height":12}},{"id":"6ce0ce3d-17f5-4463-ad3a-db0f09d075bf","block_type":"box","text":"by compensation committees can help ensure competitive pay. However, we encourage companies to","page_number":274,"box":{"x":117,"y":490,"width":763,"height":12}},{"id":"4ec271b6-731c-499b-be4b-40692b28412e","block_type":"box","text":"clearly explain how compensation outcomes have rewarded performance rather than solely base","page_number":274,"box":{"x":116,"y":506,"width":724,"height":12}},{"id":"fe1dde71-925c-4390-ad24-72017b199369","block_type":"box","text":"increases in total compensation on peer benchmarking.","page_number":274,"box":{"x":117,"y":521,"width":416,"height":12}},{"id":"10402a5e-5f0d-49ab-af90-b854db5922f8","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such","page_number":274,"box":{"x":116,"y":552,"width":755,"height":12}},{"id":"bfa1fdfb-5240-4914-8364-1a7471cf9da9","block_type":"box","text":"provisions could require executives to forgo awards when compensation was based on faulty financial","page_number":274,"box":{"x":117,"y":568,"width":760,"height":12}},{"id":"8460b421-0946-4597-abb5-6697d435e4e4","block_type":"box","text":"statements or deceptive business practices, or when their behavior caused material financial harm to","page_number":274,"box":{"x":116,"y":583,"width":754,"height":12}},{"id":"0c2f4b66-c1fa-41d5-be2c-2f423d58b7d5","block_type":"box","text":"shareholders, material reputational risk to the company, or resulted in a criminal investigation.","page_number":274,"box":{"x":116,"y":599,"width":701,"height":12}},{"id":"a05acf8f-02e0-46de-ae32-60f77bd0842c","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with","page_number":274,"box":{"x":117,"y":630,"width":745,"height":12}},{"id":"f11bb3ee-d9af-4f13-a588-2dfc5716f4df","block_type":"box","text":"the time and effort expended in fulfilling their professional responsibilities. Additionally, these","page_number":274,"box":{"x":116,"y":645,"width":691,"height":12}},{"id":"5c8d98f5-5c99-479b-b2bb-e2326c658a37","block_type":"box","text":"compensation arrangements should not risk compromising directors’ independence or aligning their","page_number":274,"box":{"x":116,"y":661,"width":739,"height":12}},{"id":"ffb6b0cd-4462-45f1-805f-8921a46093db","block_type":"box","text":"interests too closely with those of the management, whom they are charged with overseeing.","page_number":274,"box":{"x":117,"y":676,"width":687,"height":12}},{"id":"9c9941da-dd84-4db5-971c-bf750f8d2185","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether","page_number":274,"box":{"x":116,"y":707,"width":750,"height":12}},{"id":"116d97df-266b-4792-a673-ab718d228560","block_type":"box","text":"the board’s approach to executive compensation is rigorous in light of the company’s stated long-term","page_number":274,"box":{"x":116,"y":723,"width":755,"height":12}},{"id":"6b14cac4-56ae-49d0-a5e4-061edb92077a","block_type":"box","text":"corporate strategy and specific circumstances, as well as local market and policy developments.","page_number":274,"box":{"x":116,"y":738,"width":713,"height":12}},{"id":"849a5022-52a2-4f69-873b-2ecf2ea33cbe","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance,","page_number":274,"box":{"x":116,"y":769,"width":739,"height":12}},{"id":"9a265906-3548-4e71-b941-644602f8f513","block_type":"box","text":"BIS may not support management’s proposals to approve compensation, where they are on the","page_number":274,"box":{"x":117,"y":785,"width":709,"height":12}},{"id":"0d86346f-3b29-4ab9-87b0-730a490fb8d9","block_type":"box","text":"agenda. We may also not support members of the compensation committee or equivalent board","page_number":274,"box":{"x":116,"y":800,"width":713,"height":12}},{"id":"45033d18-294e-4cf9-accd-979f47e4939a","block_type":"box","text":"members for poor compensation practices or structures.","page_number":274,"box":{"x":117,"y":816,"width":415,"height":12}},{"id":"e43424e0-5e05-43c6-9bb9-1dc738960e24","block_type":"box","text":"8","page_number":274,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"956e5a8b-e16b-4532-809d-e73c39285562","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":274,"box":{"x":170,"y":867,"width":664,"height":9}},{"id":"6d6d18f1-476b-48e8-84c6-79fc90766af6","block_type":"box","text":"different markets.","page_number":274,"box":{"x":170,"y":880,"width":102,"height":7}},{"id":"bd84fc0f-8986-47cb-b015-475ebf53bb6b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":274,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"a7790100-d345-4122-994e-e447419517a9","block_type":"box","text":"Global Principles |","page_number":274,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"830f12d8-3a19-4600-a64c-003ab2cf2307","block_type":"box","text":"10","page_number":274,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"3589b1d5-fe5a-4805-a377-f27e0e0c02d8","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":274,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"d271bb50-8227-4555-b5ea-c904ad3b2121","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":275,"box":{"x":158,"y":87,"width":688,"height":10}},{"id":"f8fbbf61-5dff-4cd3-bda4-fbd53746e3fc","block_type":"box","text":"Corporate form","page_number":275,"box":{"x":116,"y":116,"width":127,"height":12}},{"id":"44387ed2-fc84-46b8-a57b-5513a0407708","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate","page_number":275,"box":{"x":117,"y":145,"width":766,"height":12}},{"id":"ffc50cb6-2577-4236-8eb7-df5669f2f271","block_type":"box","text":"given the company’s purpose and business model.","page_number":275,"box":{"x":116,"y":161,"width":376,"height":12}},{"id":"6c6dfaf3-dbce-493d-92a5-9b4698185c18","block_type":"box","text":"9","page_number":275,"box":{"x":494,"y":161,"width":5,"height":6}},{"id":"2eae0eb4-d4d6-4a5f-875d-d7a66242a81d","block_type":"box","text":"We look to companies proposing to change their","page_number":275,"box":{"x":500,"y":161,"width":369,"height":12}},{"id":"29ed5d53-7da6-41d7-b2bb-63010021f298","block_type":"box","text":"corporate form to a public benefit corporation, or similar entity, to put it to a shareholder vote if not","page_number":275,"box":{"x":116,"y":176,"width":731,"height":12}},{"id":"3ba55b1d-a9d4-40ba-a478-ba304104ec2f","block_type":"box","text":"already required to do so under applicable law. We appreciate when supporting documentation from","page_number":275,"box":{"x":116,"y":192,"width":748,"height":12}},{"id":"ae3c0469-e89e-499b-a128-59f56ac5c1b7","block_type":"box","text":"companies or shareholders proposing to alter the corporate form clearly explains how the interests of","page_number":275,"box":{"x":116,"y":207,"width":755,"height":12}},{"id":"a356bdea-4880-4571-a6fc-a1af1f5bdc17","block_type":"box","text":"shareholders and different stakeholders would be impacted as well as the accountability and voting","page_number":275,"box":{"x":116,"y":223,"width":741,"height":12}},{"id":"c531dceb-71cc-4c6d-9ffc-9385b51f65f5","block_type":"box","text":"mechanisms that would be available to shareholders. We generally support management proposals if","page_number":275,"box":{"x":117,"y":238,"width":756,"height":12}},{"id":"745c7625-327b-4a49-9787-8c88ca830cc5","block_type":"box","text":"our analysis indicates that shareholders’ financial interests are adequately protected. Corporate form","page_number":275,"box":{"x":116,"y":254,"width":752,"height":12}},{"id":"288832f1-18ae-47d3-a43b-b076cb3a1fe4","block_type":"box","text":"shareholder proposals are evaluated on a case-by-case basis.","page_number":275,"box":{"x":116,"y":269,"width":468,"height":12}},{"id":"766ca6c6-d823-4421-a5a7-0af496b2eb11","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":275,"box":{"x":380,"y":305,"width":244,"height":10}},{"id":"3872f1f9-3860-4def-af78-3d74838844ae","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder","page_number":275,"box":{"x":117,"y":335,"width":717,"height":12}},{"id":"7397d78b-296a-460c-8a08-e3454ecb1439","block_type":"box","text":"meeting, as long as certain requirements are met. Shareholder proposals span a wide range of topics,","page_number":275,"box":{"x":117,"y":350,"width":762,"height":12}},{"id":"bb0b5afe-490f-425a-82de-59677902d74f","block_type":"box","text":"including governance reforms, capital management, and changes in the management or disclosure of","page_number":275,"box":{"x":117,"y":365,"width":758,"height":13}},{"id":"ad1e74fd-810b-40cc-b192-da4d3dfe83a6","block_type":"box","text":"sustainability-related risks. These proposals have a varying degree of relevance for companies across","page_number":275,"box":{"x":116,"y":381,"width":763,"height":12}},{"id":"34dc5fc4-c9cd-450e-9419-c7dfde97bbf5","block_type":"box","text":"sectors, locations, and business models.","page_number":275,"box":{"x":116,"y":397,"width":307,"height":11}},{"id":"00dafc7d-1c70-4cf6-9857-5265a020a39e","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus","page_number":275,"box":{"x":117,"y":426,"width":764,"height":12}},{"id":"4c4ff19d-741c-4c1a-a577-a175a0321190","block_type":"box","text":"on the proposal’s implications for long-term financial value creation for shareholders. Our analysis","page_number":275,"box":{"x":116,"y":441,"width":730,"height":12}},{"id":"4e304832-cf07-4da2-b780-d0433883ed2a","block_type":"box","text":"considers whether a shareholder proposal addresses a material risk that may impact a company’s","page_number":275,"box":{"x":116,"y":457,"width":732,"height":12}},{"id":"a22bbaf8-4a21-49a9-9bb5-61506fca54b0","block_type":"box","text":"long-term financial performance. BIS may support shareholder proposals that request disclosures that","page_number":275,"box":{"x":117,"y":472,"width":760,"height":12}},{"id":"fa285d7f-8bef-4929-a486-0461dc44aac1","block_type":"box","text":"help us, as long-term investors on behalf of our clients, better understand the material risks and","page_number":275,"box":{"x":117,"y":488,"width":713,"height":12}},{"id":"b9c5be5b-a7cd-45ff-b64d-e2e53e2385d7","block_type":"box","text":"opportunities companies face and how they are managing them, especially where this information is","page_number":275,"box":{"x":116,"y":503,"width":747,"height":12}},{"id":"3b5a7975-acbc-478e-a0f6-f9fae5f4207b","block_type":"box","text":"additive given the company’s existing disclosures. We look for consistency between the specific","page_number":275,"box":{"x":116,"y":519,"width":715,"height":12}},{"id":"3791ee1e-16be-4a5d-be49-80a4e6aa680c","block_type":"box","text":"request formally made in the proposal, the supporting documentation, and the proponents’ other","page_number":275,"box":{"x":117,"y":534,"width":717,"height":12}},{"id":"10190ada-d0eb-4603-8dcc-e8759a1e09d8","block_type":"box","text":"communications on the issues. We also assess the company’s practices and disclosures and the costs","page_number":275,"box":{"x":116,"y":550,"width":769,"height":12}},{"id":"f496ea80-a529-40ba-a3df-b7e494338362","block_type":"box","text":"and benefits to the company of meeting the request made in the proposal. We take into consideration a","page_number":275,"box":{"x":116,"y":565,"width":772,"height":12}},{"id":"f583f848-96d0-457f-bd78-3ca0ca777246","block_type":"box","text":"company’s governance practices and disclosures against those of their peers.","page_number":275,"box":{"x":116,"y":581,"width":583,"height":12}},{"id":"844c884c-8b68-4514-8295-c606a97378c1","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value","page_number":275,"box":{"x":117,"y":610,"width":767,"height":12}},{"id":"c84eb952-0bf7-47c2-b5f9-529e346101bf","block_type":"box","text":"or that seek to micromanage companies. We take into consideration the legal effect of the proposal, as","page_number":275,"box":{"x":116,"y":625,"width":769,"height":12}},{"id":"7554492c-8284-42b4-9a5f-dd99c17ee42d","block_type":"box","text":"shareholder proposals may be advisory or legally binding depending on the jurisdiction, while others","page_number":275,"box":{"x":116,"y":641,"width":747,"height":12}},{"id":"a8c71e7e-1255-427d-a65e-72d98dbd4b3a","block_type":"box","text":"may make requests that would be deemed illegal in a given jurisdiction.","page_number":275,"box":{"x":117,"y":656,"width":534,"height":12}},{"id":"70afc8ce-5205-4f1d-acaf-a86887728c93","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization","page_number":275,"box":{"x":117,"y":685,"width":740,"height":12}},{"id":"21c3499f-7d7a-4c17-aa88-8cc50b94a582","block_type":"box","text":"that has submitted or advised on the proposal. We recognize that some shareholder proposals bundle","page_number":275,"box":{"x":116,"y":701,"width":757,"height":12}},{"id":"a83cb178-521f-405d-ad1f-c95ae8045d85","block_type":"box","text":"topics and/or specific requests. Further, the proponent’s supporting statement may refer to topics that","page_number":275,"box":{"x":116,"y":716,"width":753,"height":12}},{"id":"1cb59750-c1cf-4090-b338-6b802b764f2d","block_type":"box","text":"are not directly related to the request made in the proposal. In voting on behalf of clients, we must vote","page_number":275,"box":{"x":116,"y":732,"width":762,"height":12}},{"id":"cbd07efa-8c1d-48fe-97c4-8c5078e71bd0","block_type":"box","text":"yes or no on the proposal as phrased by the proponent. Therefore, when we vote in support of a","page_number":275,"box":{"x":116,"y":747,"width":714,"height":13}},{"id":"b4ef54ba-1dad-4086-bb09-932519c1cc9f","block_type":"box","text":"proposal, we are not necessarily endorsing every element of the proposal or the reasoning, objectives,","page_number":275,"box":{"x":117,"y":763,"width":759,"height":12}},{"id":"cf790329-b31a-4d5c-be3f-38c8969a6cfc","block_type":"box","text":"or supporting statement of the proponent. We may support a proposal for different reasons than those","page_number":275,"box":{"x":116,"y":778,"width":757,"height":13}},{"id":"0a31433c-52db-46c0-bac6-c61d48e29eb1","block_type":"box","text":"put forth by the proponent, when we believe that overall it may advance our clients’ long-term financial","page_number":275,"box":{"x":117,"y":794,"width":757,"height":12}},{"id":"a9550cb1-c0a5-4e72-9467-8f7d0cbe2a0a","block_type":"box","text":"interests.","page_number":275,"box":{"x":117,"y":810,"width":65,"height":9}},{"id":"ac39a927-fbac-4796-901d-cf661dbf20fe","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that","page_number":275,"box":{"x":117,"y":839,"width":752,"height":12}},{"id":"4eca515d-f22c-4bdf-a114-7ffb22d40b17","block_type":"box","text":"place restrictions and limitations on how BlackRock can interact with the companies in which we invest","page_number":275,"box":{"x":117,"y":854,"width":766,"height":12}},{"id":"4122609b-0968-4dd7-80ad-0ccd583d7aaf","block_type":"box","text":"9","page_number":275,"box":{"x":143,"y":879,"width":4,"height":5}},{"id":"ab944dd8-bf0c-4db9-bb4d-c27ed1fd5611","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":275,"box":{"x":170,"y":879,"width":457,"height":10}},{"id":"3c2c9f29-2a1c-4037-8c73-892ada701830","block_type":"box","text":"BlackRock Investment Stewardship","page_number":275,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"11139e35-24b6-4762-941c-b54c0fd86b58","block_type":"box","text":"Global Principles |","page_number":275,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"18ee1f7a-86e8-4658-9fb8-882e38140cce","block_type":"box","text":"11","page_number":275,"box":{"x":866,"y":909,"width":15,"height":9}},{"id":"199978b1-bca1-43ba-97cf-8e02b172def5","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":275,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"9b354e4d-01fd-4e5a-bb82-fe202c520970","block_type":"box","text":"on behalf of our clients. BlackRock does not nominate directors for board elections or submit","page_number":276,"box":{"x":116,"y":87,"width":692,"height":10}},{"id":"c139a455-3571-44ba-968c-785851ca7590","block_type":"box","text":"shareholder proposals to companies. Non-compliance with these requirements could adversely affect","page_number":276,"box":{"x":116,"y":102,"width":757,"height":13}},{"id":"91223d9d-5c79-4f2f-9ca7-19eec3070b4d","block_type":"box","text":"BlackRock’s ability to serve its clients’ interests.","page_number":276,"box":{"x":117,"y":118,"width":358,"height":12}},{"id":"07f5ee86-7c92-488a-b2dc-ad6c689fa335","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":276,"box":{"x":223,"y":155,"width":559,"height":10}},{"id":"38955bc4-325a-4f17-9ce9-9ad23fbe890a","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks","page_number":276,"box":{"x":116,"y":186,"width":758,"height":12}},{"id":"4eeb348f-b28c-4896-9feb-53ff0af662f0","block_type":"box","text":"and opportunities, is an important component of having an effective governance framework that","page_number":276,"box":{"x":116,"y":201,"width":714,"height":12}},{"id":"09d8f2e4-b8ce-4b35-9301-54c9de383b3a","block_type":"box","text":"supports durable, long-term financial value creation.","page_number":276,"box":{"x":116,"y":217,"width":385,"height":12}},{"id":"86c72934-f347-4ccc-8bb3-7fc662a4ea5e","block_type":"box","text":"10","page_number":276,"box":{"x":503,"y":217,"width":11,"height":6}},{"id":"9690e168-8e06-40de-822a-88d7f0344caf","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate","page_number":276,"box":{"x":116,"y":247,"width":703,"height":12}},{"id":"01c45f23-8366-4132-9757-ba46a7aade36","block_type":"box","text":"companies’ strategy and business practices related to material sustainability-related risks and","page_number":276,"box":{"x":116,"y":262,"width":699,"height":12}},{"id":"d3a07ed6-2db2-40dd-9845-d639292731e5","block_type":"box","text":"opportunities. We find it helpful when companies’ disclosures demonstrate that they have a resilient","page_number":276,"box":{"x":116,"y":278,"width":743,"height":12}},{"id":"372513cb-f4e2-466a-82da-3855cbfd30e2","block_type":"box","text":"business model that integrates material sustainability-related risks and opportunities into their strategy,","page_number":276,"box":{"x":117,"y":293,"width":766,"height":12}},{"id":"f9b4e6a6-eec1-430e-a069-58ad650dd0fd","block_type":"box","text":"risk management, and metrics and targets, including industry-specific metrics.","page_number":276,"box":{"x":117,"y":309,"width":583,"height":12}},{"id":"5e1bea05-3946-4fd9-b5b4-72f03a5d4392","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions.","page_number":276,"box":{"x":116,"y":339,"width":766,"height":12}},{"id":"5bd08a6b-9f87-4250-b3e2-171848dd737d","block_type":"box","text":"The International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one","page_number":276,"box":{"x":116,"y":354,"width":743,"height":12}},{"id":"a21da0a6-7d74-4e9b-8c40-3ba90ce4051c","block_type":"box","text":"such approach to standardization that we find useful in our analysis.","page_number":276,"box":{"x":116,"y":370,"width":503,"height":12}},{"id":"241aebc0-c60e-481f-b4f3-e9cedc18ffc2","block_type":"box","text":"11","page_number":276,"box":{"x":622,"y":370,"width":9,"height":6}},{"id":"773ce810-d82e-4fce-b87b-e1044f71a5b5","block_type":"box","text":"However, we do not mandate","page_number":276,"box":{"x":633,"y":370,"width":228,"height":11}},{"id":"e19f6443-7798-4970-a658-c93ff792c505","block_type":"box","text":"any specific disclosure framework companies should use, and recognize that companies may report","page_number":276,"box":{"x":116,"y":385,"width":747,"height":12}},{"id":"a6dede39-61b1-4ece-b76b-a9ba43eae6f6","block_type":"box","text":"using different standards, some of which may be required by regulation. In such cases, we ask that","page_number":276,"box":{"x":117,"y":401,"width":739,"height":12}},{"id":"25afa54a-be9c-48f7-9f25-1e1f84c20f65","block_type":"box","text":"companies highlight the metrics that are industry- or company-specific.","page_number":276,"box":{"x":116,"y":416,"width":530,"height":12}},{"id":"b8069517-0a1a-42b5-a314-000557deab99","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not","page_number":276,"box":{"x":116,"y":447,"width":702,"height":11}},{"id":"3391d2e0-ce52-4679-83f7-c4ab95342c07","block_type":"box","text":"prescribe timelines regarding when companies should make sustainability-related disclosures but","page_number":276,"box":{"x":117,"y":462,"width":725,"height":12}},{"id":"ad4d7a30-0d08-40b7-ac5a-625ad0fa03d4","block_type":"box","text":"appreciate it when companies produce them sufficiently in advance of their shareholder meeting, to the","page_number":276,"box":{"x":116,"y":477,"width":770,"height":12}},{"id":"585a9ef6-e108-4148-866d-f630f67452e4","block_type":"box","text":"best of their abilities, to provide investors with time to assess the data and make informed voting","page_number":276,"box":{"x":117,"y":493,"width":718,"height":12}},{"id":"d9cabfe2-08ea-4334-bb55-6e9d19aa3cfc","block_type":"box","text":"decisions.","page_number":276,"box":{"x":116,"y":509,"width":79,"height":9}},{"id":"a0058191-1724-4c45-841b-f33ebfcda9d5","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to","page_number":276,"box":{"x":117,"y":538,"width":700,"height":13}},{"id":"3c0e0e64-b534-4622-87dc-6541d71cd40e","block_type":"box","text":"companies on best practices and disclosures. While not a voting item, we find it helpful to our","page_number":276,"box":{"x":116,"y":554,"width":697,"height":12}},{"id":"13d97b6a-3b3c-4cf9-a033-26543bcc6d6e","block_type":"box","text":"understanding of investment risk when companies disclose any relevant global sustainability-related","page_number":276,"box":{"x":117,"y":569,"width":746,"height":13}},{"id":"2191091f-35fd-4ebc-9b9a-f62ac7025713","block_type":"box","text":"standards adopted, the industry initiatives in which they participate, any peer group benchmarking","page_number":276,"box":{"x":116,"y":585,"width":731,"height":12}},{"id":"2c1112b8-f4be-464f-83af-f525368a8c1e","block_type":"box","text":"undertaken, and any assurance processes to help investors understand their approach to sustainable","page_number":276,"box":{"x":117,"y":601,"width":758,"height":12}},{"id":"ff1b01a7-8f2a-492a-ba27-0e1ecf398095","block_type":"box","text":"and responsible business practices.","page_number":276,"box":{"x":116,"y":616,"width":271,"height":12}},{"id":"d8c6ba97-833f-4530-ba4c-2f9096029394","block_type":"box","text":"Climate and nature-related risk","page_number":276,"box":{"x":116,"y":646,"width":251,"height":10}},{"id":"a6a1efb6-ac3a-480b-9f84-65662c69db47","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term","page_number":276,"box":{"x":117,"y":676,"width":739,"height":12}},{"id":"cf4c1e83-e8c9-4dab-9b28-3e206135f10f","block_type":"box","text":"financial value to investors. For companies facing material climate-related risks, we find it helpful when","page_number":276,"box":{"x":116,"y":692,"width":760,"height":12}},{"id":"f1099a44-3f74-4507-ad9d-53d4534ec67f","block_type":"box","text":"they publicly disclose, consistent with their business model and sector, how they intend to deliver long","page_number":276,"box":{"x":116,"y":707,"width":762,"height":12}},{"id":"0848dee2-77f1-4a48-a7b8-1634e68619ed","block_type":"box","text":"term financial performance through the low-carbon transition, including where available, their transition","page_number":276,"box":{"x":116,"y":723,"width":760,"height":12}},{"id":"c4c38bc1-e982-45bd-9d46-1fa1b37c67e8","block_type":"box","text":"10","page_number":276,"box":{"x":144,"y":748,"width":8,"height":5}},{"id":"86bf09bf-7862-4468-aab8-6902551b6e2f","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in a","page_number":276,"box":{"x":171,"y":748,"width":691,"height":10}},{"id":"d589cce3-d479-4d5b-9e1b-96f1a0c1e2d8","block_type":"box","text":"company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":276,"box":{"x":170,"y":761,"width":686,"height":9}},{"id":"82f3531d-b082-4907-a6b6-52e5ce96484f","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":276,"box":{"x":170,"y":774,"width":682,"height":9}},{"id":"da50925e-a55a-41b4-b8a6-2bed75bd4f64","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":276,"box":{"x":170,"y":787,"width":683,"height":9}},{"id":"d38f572e-ee5e-4454-90f3-dbd745e6093a","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":276,"box":{"x":170,"y":800,"width":360,"height":9}},{"id":"c5da798e-2893-45f7-98ca-e3cfd054623c","block_type":"box","text":"11","page_number":276,"box":{"x":144,"y":815,"width":7,"height":5}},{"id":"a26754e8-11ea-40fe-91d6-47f18ae38b05","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":276,"box":{"x":170,"y":815,"width":666,"height":10}},{"id":"f8b2436b-10f4-46ae-9a49-3a754d459570","block_type":"box","text":"Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework and the","page_number":276,"box":{"x":171,"y":828,"width":712,"height":9}},{"id":"5eea8b9a-8272-4f21-abbe-1219e88661ff","block_type":"box","text":"standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":276,"box":{"x":170,"y":841,"width":649,"height":9}},{"id":"398fdab2-2efd-4d37-a52b-b8f938adf4db","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":276,"box":{"x":170,"y":854,"width":674,"height":9}},{"id":"fd571c5a-0662-4a60-8ccf-24efd041d497","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":276,"box":{"x":170,"y":867,"width":647,"height":9}},{"id":"148dd460-2ee4-451a-b8ea-0bd1a51a4a44","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":276,"box":{"x":171,"y":880,"width":312,"height":7}},{"id":"00cfaa19-1ff8-410f-b372-b4d0ac7693ba","block_type":"box","text":"BlackRock Investment Stewardship","page_number":276,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"94b0dafd-024d-404a-a6b4-53eb65522230","block_type":"box","text":"Global Principles |","page_number":276,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"5f9167af-dc3e-4b90-925d-e65af5e17707","block_type":"box","text":"12","page_number":276,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"e896f08d-fb08-4d9c-abe8-7c880779b5d7","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":276,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"09c9186a-758d-40b0-b350-cc2201f58cdc","block_type":"box","text":"plan.","page_number":277,"box":{"x":117,"y":87,"width":34,"height":12}},{"id":"cda1bfe4-c568-4225-9f37-d549304386ef","block_type":"box","text":"12, 13","page_number":277,"box":{"x":153,"y":87,"width":29,"height":7}},{"id":"703d4304-e0bc-4daf-887f-c5739a6e3cd5","block_type":"box","text":"From company disclosures and engagement, we seek to understand the strategies","page_number":277,"box":{"x":182,"y":87,"width":626,"height":12}},{"id":"90f4d72e-fae8-4fd6-9072-035a4951110a","block_type":"box","text":"companies have in place to manage material risks to, and opportunities for, their long-term business","page_number":277,"box":{"x":116,"y":102,"width":748,"height":13}},{"id":"d6c5f7c9-23b2-48dc-8f14-d1fa9381d633","block_type":"box","text":"model associated with a range of climate-related scenarios.","page_number":277,"box":{"x":117,"y":118,"width":446,"height":12}},{"id":"772a59ae-0175-474e-9c6d-3db077530c58","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate","page_number":277,"box":{"x":117,"y":152,"width":734,"height":12}},{"id":"74b0c99e-594a-42ff-b9ca-0a0b3de057b6","block_type":"box","text":"large companies to disclose such climate-related financial information, while in other jurisdictions these","page_number":277,"box":{"x":117,"y":168,"width":767,"height":12}},{"id":"3e573eaa-5b25-4480-95be-63d55160e084","block_type":"box","text":"disclosures are viewed as best practice in the market.","page_number":277,"box":{"x":116,"y":183,"width":404,"height":12}},{"id":"8a53c338-3bca-4630-8b6f-9a58c2bc353e","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company","page_number":277,"box":{"x":116,"y":217,"width":726,"height":12}},{"id":"0255e0eb-1625-403d-8637-f5bfcd75f90b","block_type":"box","text":"specific climate-related risks and opportunities, and informing investment decisions. Such disclosures","page_number":277,"box":{"x":116,"y":233,"width":757,"height":12}},{"id":"58343f49-5d17-4e9c-883e-473af0c4d955","block_type":"box","text":"also provide investors with insights into how companies are managing the risks associated with a","page_number":277,"box":{"x":116,"y":248,"width":726,"height":12}},{"id":"82f8fe93-dff4-4e97-8caf-d917923c197b","block_type":"box","text":"transition to a low-carbon economy by managing their own carbon emissions or emissions intensities","page_number":277,"box":{"x":116,"y":264,"width":754,"height":12}},{"id":"ad5186b2-6e92-4184-a19c-9cd4eaa99143","block_type":"box","text":"to the extent financially practicable.","page_number":277,"box":{"x":116,"y":279,"width":266,"height":12}},{"id":"68ea6e89-977b-49cf-b9aa-e983d41a87f5","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-,","page_number":277,"box":{"x":116,"y":313,"width":723,"height":12}},{"id":"1a100e32-674c-45da-ae71-fc860e420d5f","block_type":"box","text":"medium- and long-term targets, ideally science-based where these are available for their sector, for","page_number":277,"box":{"x":117,"y":329,"width":742,"height":12}},{"id":"6e481aa9-9ca6-4264-8899-1681ff075947","block_type":"box","text":"scope 1 and 2 greenhouse gas emissions (GHG) reductions and to demonstrate how their targets are","page_number":277,"box":{"x":116,"y":344,"width":760,"height":12}},{"id":"e392f78f-2b77-4b76-9841-3f43eb31f038","block_type":"box","text":"consistent with the long-term financial interests of their investors.","page_number":277,"box":{"x":116,"y":360,"width":486,"height":12}},{"id":"8dcf6f55-cc6c-43e7-b7c0-0ea12ad87439","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this","page_number":277,"box":{"x":116,"y":394,"width":766,"height":12}},{"id":"d0be0427-35bf-49ba-afc6-c1126493debb","block_type":"box","text":"stage, we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity,","page_number":277,"box":{"x":116,"y":409,"width":749,"height":13}},{"id":"2740945b-306d-4287-a106-99887fa2c1e2","block_type":"box","text":"regulatory uncertainty, concerns about double-counting, and lack of direct control by companies. We","page_number":277,"box":{"x":117,"y":425,"width":749,"height":12}},{"id":"3f86881b-d87a-446c-ae92-f9cd206cf4d4","block_type":"box","text":"welcome disclosures and commitments that companies choose to make regarding material scope 3","page_number":277,"box":{"x":116,"y":441,"width":744,"height":12}},{"id":"750afbc0-77f0-445f-9deb-18d1ef10284d","block_type":"box","text":"emissions and recognize that these are provided on a good-faith basis as methodology develops.","page_number":277,"box":{"x":116,"y":456,"width":728,"height":12}},{"id":"df61c71c-78e5-4047-9f62-1fb24316ad56","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or","page_number":277,"box":{"x":117,"y":490,"width":742,"height":12}},{"id":"c2f4693a-56fe-4672-95a8-493c85c124cd","block_type":"box","text":"supply chains are materially reliant on natural capital, nature-related risks and opportunities may affect","page_number":277,"box":{"x":116,"y":506,"width":765,"height":12}},{"id":"3e0b04ca-f2d0-4cb0-ae41-96b7daecc3cd","block_type":"box","text":"their ability to generate long-term financial returns.","page_number":277,"box":{"x":116,"y":521,"width":372,"height":12}},{"id":"bc40d781-b6fe-4c4f-ae05-eafc82e65421","block_type":"box","text":"14","page_number":277,"box":{"x":491,"y":521,"width":11,"height":6}},{"id":"2ab54c33-9f6b-4d29-9535-5269026f0cc0","block_type":"box","text":"For these companies, we rely on disclosures to","page_number":277,"box":{"x":502,"y":521,"width":360,"height":12}},{"id":"945949e0-ea04-4864-bd06-8c64ae1d9c3e","block_type":"box","text":"understand how their strategies consider nature-related impacts and dependencies and to assess how","page_number":277,"box":{"x":117,"y":537,"width":765,"height":12}},{"id":"66d0001a-9dc9-41c0-924b-74073f4c4fe5","block_type":"box","text":"the board oversees these risks.","page_number":277,"box":{"x":116,"y":552,"width":232,"height":10}},{"id":"003a90e5-c79c-4273-ab61-98359056767f","block_type":"box","text":"15","page_number":277,"box":{"x":351,"y":552,"width":10,"height":6}},{"id":"f9e96af1-fccd-44d2-95c8-601710bd6686","block_type":"box","text":"Companies’ impact on their workforce, supply chains, and communities","page_number":277,"box":{"x":116,"y":586,"width":580,"height":12}},{"id":"4aa0579b-af8b-47b9-a743-08f0614d411a","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term","page_number":277,"box":{"x":117,"y":620,"width":768,"height":12}},{"id":"1a9232c7-9e4e-4907-aa3d-6f50e1aa1c50","block_type":"box","text":"financial performance. For many companies, key stakeholders include employees, business supply","page_number":277,"box":{"x":116,"y":636,"width":741,"height":12}},{"id":"c4c70189-6c23-4bd4-84a1-51d34d2f0064","block_type":"box","text":"chains, clients and consumers, regulators, and the communities in which they operate.","page_number":277,"box":{"x":116,"y":651,"width":647,"height":12}},{"id":"7b3f6757-e9e3-4ff4-89c9-c04236305a5a","block_type":"box","text":"12","page_number":277,"box":{"x":144,"y":677,"width":8,"height":4}},{"id":"90eb8baf-e620-452f-8902-885e0919bad4","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":277,"box":{"x":170,"y":677,"width":685,"height":9}},{"id":"b37e7bea-fb23-47fc-aab4-6e689edceecb","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":277,"box":{"x":170,"y":690,"width":670,"height":9}},{"id":"be4c9961-6810-474a-87e8-485489611035","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":277,"box":{"x":171,"y":702,"width":691,"height":10}},{"id":"a2e2d3d7-988c-4636-8b07-4d6e28d5268e","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives,","page_number":277,"box":{"x":170,"y":715,"width":710,"height":10}},{"id":"2ed90b63-7bdd-4d88-a4aa-9fc31c3f0cbd","block_type":"box","text":"and actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":277,"box":{"x":170,"y":728,"width":709,"height":10}},{"id":"0c26a47b-9746-431a-877f-0e9e95c4e8fa","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. While transition plans can","page_number":277,"box":{"x":170,"y":741,"width":710,"height":10}},{"id":"66fd223a-a6a6-43db-b097-4271fe25ed7f","block_type":"box","text":"be helpful disclosure, BIS does not make the preparation and production of transition plans a voting issue. BIS may","page_number":277,"box":{"x":170,"y":754,"width":684,"height":10}},{"id":"ae8612e0-db3c-448c-9d2f-1624efa7e180","block_type":"box","text":"engage companies that have chosen to publish a transition plan to understand their planned actions and resource","page_number":277,"box":{"x":170,"y":767,"width":675,"height":10}},{"id":"ee23f60e-cf8e-4aa8-962f-b850f42411e2","block_type":"box","text":"implications. Website accessed in December 2025.","page_number":277,"box":{"x":170,"y":780,"width":303,"height":9}},{"id":"c997b050-cb90-4ad5-8952-b2c668a114a7","block_type":"box","text":"13","page_number":277,"box":{"x":144,"y":796,"width":8,"height":5}},{"id":"7b946291-19cc-4b4a-9f3b-0d4abf34b9eb","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December 2025.","page_number":277,"box":{"x":171,"y":796,"width":703,"height":10}},{"id":"bc92a187-d5a5-461c-9bab-0986a42be2ce","block_type":"box","text":"14","page_number":277,"box":{"x":144,"y":812,"width":8,"height":5}},{"id":"eff71782-fe8e-4079-9019-99ce6e04b296","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December 2025.","page_number":277,"box":{"x":171,"y":812,"width":697,"height":10}},{"id":"036fe9ea-a7d9-4f25-92bc-ee0cd643e786","block_type":"box","text":"15","page_number":277,"box":{"x":144,"y":828,"width":8,"height":5}},{"id":"6bb74d52-8d98-45f5-a9f8-7b1960fe4fb9","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":277,"box":{"x":170,"y":828,"width":660,"height":10}},{"id":"5569f6f1-fb86-429e-b032-1233447ae278","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of the","page_number":277,"box":{"x":170,"y":841,"width":704,"height":9}},{"id":"90252f08-3dfc-44f0-916b-b7517b0b5162","block_type":"box","text":"Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":277,"box":{"x":170,"y":854,"width":689,"height":9}},{"id":"a45e3804-dcb0-439c-933c-0936d6d07d11","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":277,"box":{"x":170,"y":867,"width":680,"height":9}},{"id":"4ebb8f81-70d6-49e1-8534-e7b074acf739","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":277,"box":{"x":170,"y":880,"width":680,"height":9}},{"id":"07c2398a-fe0d-4504-82a4-c18c9e179598","block_type":"box","text":"BlackRock Investment Stewardship","page_number":277,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"50f12340-5904-4ace-9e77-7925d7cc1902","block_type":"box","text":"Global Principles |","page_number":277,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"afe0d58e-4081-4dbe-97a6-c65ea8a2f3e9","block_type":"box","text":"13","page_number":277,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"596da27c-03d0-4dcc-941f-3b3ad0fa51bb","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":277,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"f4f6dcfb-fdef-4ef2-a3d1-661790081a14","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives","page_number":278,"box":{"x":117,"y":87,"width":769,"height":12}},{"id":"f300a77e-5be9-40cf-b181-b9e589878882","block_type":"box","text":"are more likely to deliver durable, long-term financial performance. By contrast, we have found that","page_number":278,"box":{"x":116,"y":102,"width":739,"height":13}},{"id":"2aa530ff-8857-4664-a42c-1070f6e39e2b","block_type":"box","text":"poor relationships may create adverse impacts that could expose companies to legal, regulatory,","page_number":278,"box":{"x":117,"y":118,"width":722,"height":12}},{"id":"8e0fa190-9572-4620-82b4-5ac3abc5476f","block_type":"box","text":"operational, and reputational risks. This is particularly relevant to a company’s workforce, which is","page_number":278,"box":{"x":116,"y":134,"width":730,"height":12}},{"id":"3b01e3f6-8689-4ebb-93f5-a5e1a4ee50ec","block_type":"box","text":"central to long-term financial value creation.","page_number":278,"box":{"x":116,"y":149,"width":324,"height":12}},{"id":"f46ae4bb-9d40-40b0-8a9b-a233bb9f5eec","block_type":"box","text":"16","page_number":278,"box":{"x":442,"y":149,"width":11,"height":6}},{"id":"5ddcfb6e-ff1a-4b76-99af-d4b8d7784456","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how","page_number":278,"box":{"x":116,"y":179,"width":743,"height":13}},{"id":"9d8c19a2-281f-4eb7-8d89-aa3c6910271a","block_type":"box","text":"they have identified their key stakeholders and considered their interests in business decision-making.","page_number":278,"box":{"x":116,"y":195,"width":763,"height":12}},{"id":"7989b895-a29b-48f5-965f-ef94b4b986fe","block_type":"box","text":"In addition to understanding broader stakeholder relationships, BIS finds it helpful when companies","page_number":278,"box":{"x":117,"y":210,"width":740,"height":13}},{"id":"8c63f14b-ad4a-4405-a61d-3b9e110144af","block_type":"box","text":"discuss how they consider the needs of their workforce today, and the skills required for their future","page_number":278,"box":{"x":116,"y":226,"width":742,"height":12}},{"id":"06372d2d-5bdc-40ee-94e7-58682de83d54","block_type":"box","text":"business strategy. We are also interested in understanding how the board monitors and engages on","page_number":278,"box":{"x":117,"y":242,"width":747,"height":12}},{"id":"964fbcca-3a5d-4cc2-8c83-7c10299827c6","block_type":"box","text":"these matters, given it is well positioned to ensure that the approach taken by management is informed","page_number":278,"box":{"x":116,"y":257,"width":770,"height":12}},{"id":"df67505a-d1d8-47b3-8cda-2fbc1a78e866","block_type":"box","text":"by and aligns with the company’s strategy. BIS does not direct a company’s policies or practices, which","page_number":278,"box":{"x":117,"y":272,"width":771,"height":13}},{"id":"af48e05d-fe8b-449f-adf1-074302264bd0","block_type":"box","text":"are the responsibility of management and the board.","page_number":278,"box":{"x":116,"y":288,"width":394,"height":12}},{"id":"1f434ff0-c37a-4820-9ab2-52aa668a1c10","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse","page_number":278,"box":{"x":117,"y":318,"width":754,"height":12}},{"id":"84021b6b-3e72-4c1d-8a80-79cdbfd81b80","block_type":"box","text":"impacts that could arise from their business practices and affect critical relationships with their","page_number":278,"box":{"x":117,"y":334,"width":701,"height":12}},{"id":"c1739072-e28d-4cb9-a2e5-730cf195f38a","block_type":"box","text":"stakeholders. We encourage companies to implement, to the extent appropriate, monitoring processes","page_number":278,"box":{"x":116,"y":350,"width":767,"height":12}},{"id":"36c45db9-6e94-43df-baa4-0c8318a9a8fa","block_type":"box","text":"(often referred to as due diligence) to identify and mitigate potential adverse impacts and grievance","page_number":278,"box":{"x":117,"y":365,"width":740,"height":12}},{"id":"75d319a9-552e-4fa0-b588-b847102e6f92","block_type":"box","text":"mechanisms to remediate any actual adverse material impacts.","page_number":278,"box":{"x":117,"y":381,"width":474,"height":12}},{"id":"df8acc87-971e-4f1c-bca0-3df74031c04e","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key","page_number":278,"box":{"x":116,"y":411,"width":729,"height":12}},{"id":"208acf45-4291-495c-b939-01755f57a78c","block_type":"box","text":"stakeholders and may convey concerns about board oversight in our voting on director elections or","page_number":278,"box":{"x":116,"y":426,"width":739,"height":12}},{"id":"dcccdf7e-a732-41ee-864e-b2826dbc68ef","block_type":"box","text":"supporting a business relevant shareholder proposal when, in our assessment, the board is not acting","page_number":278,"box":{"x":116,"y":442,"width":761,"height":12}},{"id":"627b0788-3ac8-4715-8112-404c6a80c81d","block_type":"box","text":"in shareholders’ long-term financial interests.","page_number":278,"box":{"x":117,"y":457,"width":337,"height":12}},{"id":"0e0571a3-ff88-4603-b10e-fe4af8563830","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":278,"box":{"x":188,"y":495,"width":629,"height":10}},{"id":"471d6c22-ff9c-4dcb-a75c-e7aad0d67f18","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on","page_number":278,"box":{"x":117,"y":526,"width":742,"height":12}},{"id":"39f38789-f932-4a66-9f79-c3a7c691b56e","block_type":"box","text":"behalf of clients at the global and regional level.","page_number":278,"box":{"x":117,"y":541,"width":358,"height":12}},{"id":"136fc8f4-d88b-4f0f-a168-39256a729329","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the","page_number":278,"box":{"x":116,"y":572,"width":699,"height":12}},{"id":"432a3603-c6d6-4cd0-9ea2-40f88519c8d9","block_type":"box","text":"Committee) supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to","page_number":278,"box":{"x":117,"y":587,"width":760,"height":12}},{"id":"de504338-5d21-41ce-810f-ab821bbc6918","block_type":"box","text":"policies and procedures as well as market-level stewardship requirements. The Committee reviews","page_number":278,"box":{"x":117,"y":603,"width":740,"height":12}},{"id":"d16195ec-3c52-442b-944b-6675a7639683","block_type":"box","text":"and approves amendments to the Global Principles and regional voting guidelines. The Committee","page_number":278,"box":{"x":116,"y":618,"width":738,"height":12}},{"id":"3904b018-1ab2-4201-a771-bba0ca7be411","block_type":"box","text":"also reviews periodic reports regarding the votes cast by BIS on behalf of clients, as well as updates","page_number":278,"box":{"x":116,"y":634,"width":749,"height":12}},{"id":"55c660c6-c26d-4ada-9607-e8d98acdb964","block_type":"box","text":"on material process issues, procedural changes, and other risk oversight considerations. The","page_number":278,"box":{"x":116,"y":649,"width":697,"height":12}},{"id":"8bc00f46-bee9-4115-9951-3df0322c1e48","block_type":"box","text":"Committee is chaired by the Global Heads of the Investment Stewardship function and its members","page_number":278,"box":{"x":117,"y":665,"width":737,"height":12}},{"id":"5c3db2b8-a734-4908-be6e-5883d569678e","block_type":"box","text":"include senior BlackRock executives with legal, risk, and other experience relevant to team oversight","page_number":278,"box":{"x":117,"y":680,"width":747,"height":12}},{"id":"11dcd869-324b-4f12-a012-595004634e47","block_type":"box","text":"who are independent from the investment stewardship function.","page_number":278,"box":{"x":116,"y":696,"width":471,"height":12}},{"id":"4d8cac2e-e49f-4ad6-956b-d174070a9245","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with","page_number":278,"box":{"x":116,"y":726,"width":764,"height":12}},{"id":"f9ae80c0-ee24-472e-8713-fdfa79b8d9ae","block_type":"box","text":"the Global Principles and regional voting guidelines. At the regional level, three regional Heads for the","page_number":278,"box":{"x":116,"y":742,"width":756,"height":12}},{"id":"5edba3b0-a852-403a-b1a1-4f7ceab7d8b3","block_type":"box","text":"Americas, APAC, and EMEA oversee BIS’ activities for their specific markets.","page_number":278,"box":{"x":116,"y":757,"width":574,"height":12}},{"id":"ca38122c-6d4f-4f0b-8694-14ebad1068f0","block_type":"box","text":"VOTE EXECUTION","page_number":278,"box":{"x":425,"y":795,"width":148,"height":10}},{"id":"d452dfc8-6f56-4bff-b62a-9e6b00977e79","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We","page_number":278,"box":{"x":117,"y":825,"width":739,"height":13}},{"id":"a7e1cd39-3448-4756-aa1d-b99abc362503","block_type":"box","text":"have processes in place to consider all proxies for which we have voting authority, and submit voting","page_number":278,"box":{"x":117,"y":841,"width":751,"height":12}},{"id":"b4cd9e13-288c-4c96-8622-19769ba28406","block_type":"box","text":"16","page_number":278,"box":{"x":144,"y":866,"width":8,"height":5}},{"id":"5676e3d6-c09b-4594-bef8-bbb38c712f8d","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":278,"box":{"x":171,"y":866,"width":677,"height":10}},{"id":"3e3169c2-9c8f-4f56-90aa-6397c5e468fa","block_type":"box","text":"December 2025.","page_number":278,"box":{"x":171,"y":879,"width":97,"height":8}},{"id":"07e4f157-c04a-4c7c-afa9-98ec5b5a94c4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":278,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"4de5ccea-8b9b-4a9a-ba58-bf233c6c65eb","block_type":"box","text":"Global Principles |","page_number":278,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"0e8a46ee-9fa0-4038-b633-d5770a176e76","block_type":"box","text":"14","page_number":278,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"b0101391-dc02-4363-907e-214bec6d4ddf","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":278,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"6d7e97dc-d975-447e-95d5-ecfbd6e50486","block_type":"box","text":"decisions, or refrain from voting when logistical issues arise (see below). The BIS Benchmark","page_number":279,"box":{"x":116,"y":87,"width":698,"height":12}},{"id":"bf6b7a58-d388-412b-b6c5-2eb9bcd20e31","block_type":"box","text":"Policies – and the vote decisions made consistent with those policies – reflect our reasonable and","page_number":279,"box":{"x":117,"y":102,"width":730,"height":12}},{"id":"67a5d6eb-6343-4971-8500-45d312cbcb5d","block_type":"box","text":"independent judgment and are made without regard to the relationship between the issuer of the proxy","page_number":279,"box":{"x":117,"y":118,"width":766,"height":12}},{"id":"43a740c9-4a06-49bc-9ed7-ffc2301c0de3","block_type":"box","text":"(or any shareholder proponent or dissident shareholder) and the Fund, the Fund’s affiliates (if any),","page_number":279,"box":{"x":117,"y":134,"width":739,"height":12}},{"id":"c1c626c5-1a3a-407f-a76a-d7b38eb93990","block_type":"box","text":"BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts management policies and","page_number":279,"box":{"x":117,"y":149,"width":768,"height":12}},{"id":"716399fd-f212-43a6-aa02-3d901b1f3da6","block_type":"box","text":"procedures,” below).","page_number":279,"box":{"x":117,"y":165,"width":157,"height":12}},{"id":"c02beafe-5648-4a2b-846a-319751f199fb","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well","page_number":279,"box":{"x":117,"y":196,"width":749,"height":12}},{"id":"4899f8c3-25e7-4334-868c-5d7ca312ca96","block_type":"box","text":"as the cost of voting such proxies on behalf of our clients. These issues include, but are not limited to:","page_number":279,"box":{"x":116,"y":212,"width":761,"height":12}},{"id":"73af3bb6-3092-4efa-80a0-de1093ecbded","block_type":"box","text":"1) untimely notice of shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3)","page_number":279,"box":{"x":118,"y":227,"width":754,"height":12}},{"id":"77d408ae-e8ba-431f-9c64-5693b68d0eda","block_type":"box","text":"requirements to vote proxies in person; 4) “share-blocking” (requirements that investors who exercise","page_number":279,"box":{"x":117,"y":243,"width":756,"height":12}},{"id":"8d31dc61-b169-4b5f-93e2-c6cc69eff3ec","block_type":"box","text":"their voting rights surrender the right to dispose of their holdings from the point at which votes are","page_number":279,"box":{"x":116,"y":258,"width":728,"height":12}},{"id":"51623ae0-580f-42af-8848-16b78e5113b0","block_type":"box","text":"submitted until after the after the shareholder meeting has occurred); 5) potential difficulties in","page_number":279,"box":{"x":116,"y":274,"width":701,"height":12}},{"id":"db229949-ad0e-4a46-8b82-866ffb096d01","block_type":"box","text":"translating the proxy; 6) regulatory constraints; and 7) requirements to provide local agents with","page_number":279,"box":{"x":116,"y":289,"width":714,"height":12}},{"id":"22fb50bb-62e9-43e2-be55-5ab7444af376","block_type":"box","text":"powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":279,"box":{"x":117,"y":305,"width":706,"height":12}},{"id":"4d80c3e9-d6df-4e28-96d4-a4cbc8954e9c","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":279,"box":{"x":116,"y":320,"width":742,"height":12}},{"id":"bc10ede1-93e8-42c9-8c37-70bb094202a6","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is","page_number":279,"box":{"x":117,"y":352,"width":758,"height":12}},{"id":"3fb3a94c-afa8-40a5-86f7-9fdc26a513c9","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if","page_number":279,"box":{"x":116,"y":368,"width":755,"height":12}},{"id":"e85380ec-3396-47c3-9b9a-b4d6c26156cf","block_type":"box","text":"the costs (including but not limited to opportunity costs associated with share-blocking constraints)","page_number":279,"box":{"x":116,"y":383,"width":734,"height":12}},{"id":"d4ebeeea-776a-4b42-a616-63839c66c07b","block_type":"box","text":"associated with exercising a vote are expected to outweigh the benefit the client would derive by voting","page_number":279,"box":{"x":116,"y":399,"width":770,"height":12}},{"id":"fbf01e2c-4b71-4241-a9be-514f1df02029","block_type":"box","text":"on the proposal.","page_number":279,"box":{"x":116,"y":414,"width":125,"height":12}},{"id":"bac10d45-aa70-42d3-b26d-74732019f339","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":279,"box":{"x":265,"y":454,"width":475,"height":10}},{"id":"9b30cf5a-77bb-4b1f-860f-09ed6a313f30","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business","page_number":279,"box":{"x":117,"y":486,"width":724,"height":12}},{"id":"d727e042-affd-454e-acc0-dcb920f3b8f1","block_type":"box","text":"partnership or enterprise-level vendor management activities.","page_number":279,"box":{"x":117,"y":501,"width":460,"height":12}},{"id":"236a217e-f631-431e-91f1-0c355a7d1f9d","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’","page_number":279,"box":{"x":117,"y":533,"width":739,"height":12}},{"id":"338a94d2-2ffb-49a1-8aeb-46aec72693e2","block_type":"box","text":"proxy voting activity. Such influence might stem from any relationship between the investee company","page_number":279,"box":{"x":117,"y":549,"width":755,"height":12}},{"id":"5e09f9cb-743d-48c2-bb13-77a4df9ddf12","block_type":"box","text":"(or any shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund","page_number":279,"box":{"x":117,"y":564,"width":766,"height":12}},{"id":"373ad711-0cb7-4366-bde3-29a8f11d5a20","block_type":"box","text":"or a Fund’s affiliates, or BlackRock employees.","page_number":279,"box":{"x":116,"y":580,"width":354,"height":12}},{"id":"97770ec1-6a86-4116-886c-a7a56df7fd5d","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":279,"box":{"x":117,"y":611,"width":630,"height":13}},{"id":"11996673-f863-418e-99a4-0c674982098b","block_type":"box","text":"SECURITIES LENDING","page_number":279,"box":{"x":410,"y":643,"width":185,"height":10}},{"id":"d6d2b4ba-0c47-4c8a-9c84-2d5905fbcea0","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending","page_number":279,"box":{"x":116,"y":675,"width":704,"height":12}},{"id":"6e8571d3-7e63-449c-beb7-7f082e5035cb","block_type":"box","text":"securities enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending","page_number":279,"box":{"x":116,"y":690,"width":729,"height":13}},{"id":"28244c09-3bf8-4dab-9111-483d828b2c5f","block_type":"box","text":"agreements allow it to recall securities out on loan at any time. BlackRock (or any other lender) does","page_number":279,"box":{"x":116,"y":706,"width":746,"height":12}},{"id":"21e85ecb-6f49-4d83-862c-b034f0040964","block_type":"box","text":"not retain voting rights for securities out on loan. Entitlements associated with the lent securities","page_number":279,"box":{"x":117,"y":721,"width":709,"height":13}},{"id":"0b30d320-3c72-4564-97fe-56278fee50bb","block_type":"box","text":"(dividends, coupons, etc.), while on loan are paid back to the lender of the security as stipulated in","page_number":279,"box":{"x":117,"y":737,"width":727,"height":12}},{"id":"b93b7804-6300-451a-8a22-76824709e1e6","block_type":"box","text":"industry standard legal agreements.","page_number":279,"box":{"x":117,"y":753,"width":265,"height":12}},{"id":"b6dafa89-20e1-47e3-844f-ed5cf6a8ccee","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote","page_number":279,"box":{"x":116,"y":784,"width":735,"height":12}},{"id":"6f919f23-fdb5-41c8-8da9-8fffc184ebd0","block_type":"box","text":"shares on loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset","page_number":279,"box":{"x":116,"y":800,"width":767,"height":12}},{"id":"fd52ce76-e415-4cf2-ad15-dd6e83dfd52d","block_type":"box","text":"manager to our clients in helping them achieve their investment goals. 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Aladdin","page_number":286,"box":{"x":170,"y":828,"width":103,"height":10}},{"id":"bc398401-2638-4799-aca6-24e1f1918203","block_type":"box","text":"®","page_number":286,"box":{"x":274,"y":827,"width":8,"height":6}},{"id":"4b42d766-e02b-4620-b75d-9404d5a946b5","block_type":"box","text":"is a proprietary investment and risk management platform.","page_number":286,"box":{"x":286,"y":828,"width":345,"height":10}},{"id":"44f1762c-c5ec-4584-b60e-8edc99bbd63a","block_type":"box","text":"12","page_number":286,"box":{"x":144,"y":841,"width":8,"height":5}},{"id":"638ea339-000b-43c0-9789-5ffeec84eaec","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide as","page_number":286,"box":{"x":170,"y":841,"width":701,"height":9}},{"id":"79aa375e-c930-4e3b-b967-7a5e72082281","block_type":"box","text":"to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated team","page_number":286,"box":{"x":170,"y":854,"width":708,"height":9}},{"id":"bc7bcd5a-3828-4864-b9e2-2d107edbd447","block_type":"box","text":"with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":286,"box":{"x":170,"y":867,"width":651,"height":9}},{"id":"a099d06e-330e-42a2-bf23-8081938b883f","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":286,"box":{"x":170,"y":880,"width":403,"height":9}},{"id":"34d70f26-ce79-4b8e-bf1c-93bef0b5e365","block_type":"box","text":"BlackRock Investment Stewardship","page_number":286,"box":{"x":117,"y":909,"width":262,"height":11}},{"id":"889dbd83-0ff2-4736-8cb3-dcb8d87bfe84","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines |","page_number":286,"box":{"x":490,"y":909,"width":375,"height":11}},{"id":"fa175452-24ec-487c-82c2-50ef3313cc63","block_type":"box","text":"5","page_number":286,"box":{"x":875,"y":910,"width":8,"height":8}},{"id":"4762fc59-2e8c-4110-9943-4a5d0eba49ab","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":286,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"f817b685-3ba1-4cb3-8337-17990557738e","block_type":"box","text":"and SMAs – on similar proposals included on different companies’ shareholder meeting agendas may","page_number":287,"box":{"x":116,"y":87,"width":760,"height":12}},{"id":"7fc4a139-5dfc-4bb4-b648-253739a0cf3e","block_type":"box","text":"vary depending on company, sector, or market-specific circumstances.","page_number":287,"box":{"x":116,"y":102,"width":530,"height":13}},{"id":"48945bd6-7705-4eb0-a35f-b5cf19229588","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines,","page_number":287,"box":{"x":117,"y":134,"width":750,"height":12}},{"id":"4ce9011d-3c4e-448f-adec-fc911c863aee","block_type":"box","text":"the dedicated team will look to the companies to demonstrate the following:","page_number":287,"box":{"x":116,"y":149,"width":564,"height":12}},{"id":"df339383-9989-4f13-9230-35343a79e039","block_type":"box","text":"Corporate Disclosures","page_number":287,"box":{"x":116,"y":180,"width":180,"height":12}},{"id":"bfd715a6-be26-492b-901f-0dbe5500c204","block_type":"box","text":"13","page_number":287,"box":{"x":297,"y":180,"width":11,"height":6}},{"id":"4a8eeff3-c8e2-4b9a-96e6-112b2cc7f68f","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient","page_number":287,"box":{"x":117,"y":211,"width":710,"height":12}},{"id":"246524ff-b269-405a-9e7e-490212d50f4e","block_type":"box","text":"disclosure to assess whether the company’s strategy is aligned with the low-carbon transition. As a","page_number":287,"box":{"x":116,"y":227,"width":740,"height":12}},{"id":"c7c0c9a3-6e1e-4984-a741-5610b7a0f474","block_type":"box","text":"general point, the team looks to companies that are important to the transition to a low-carbon","page_number":287,"box":{"x":116,"y":242,"width":702,"height":12}},{"id":"b80864d5-07b9-4a05-afea-42eb4604a95d","block_type":"box","text":"economy to explain the strategy and governance frameworks that they have determined most","page_number":287,"box":{"x":116,"y":258,"width":700,"height":12}},{"id":"698d096a-5612-4e8a-b975-d5465f541768","block_type":"box","text":"appropriate, which may include:","page_number":287,"box":{"x":116,"y":273,"width":241,"height":12}},{"id":"b8a38d20-f2f9-4c27-8bbf-4738a883ab38","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit","page_number":287,"box":{"x":150,"y":304,"width":688,"height":12}},{"id":"63d0274c-053c-4901-8f4b-91b4fb53b26e","block_type":"box","text":"average global temperature rise to 1.5°C above pre-industrial levels. This would typically","page_number":287,"box":{"x":184,"y":320,"width":661,"height":12}},{"id":"78d3a194-d29e-41ed-a470-8b793a37d0d2","block_type":"box","text":"include a long-term strategy to achieve net-zero GHG emissions by 2050, with appropriate","page_number":287,"box":{"x":184,"y":335,"width":676,"height":12}},{"id":"6f85ba5f-2443-4488-b26c-245b068a8f44","block_type":"box","text":"near- and medium-term milestones to assess their progress.","page_number":287,"box":{"x":184,"y":351,"width":453,"height":12}},{"id":"211760e1-1c2e-46c9-9789-75e337f550ea","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data","page_number":287,"box":{"x":150,"y":374,"width":724,"height":12}},{"id":"61d1381c-a0f5-42be-88d5-c17129a10aa1","block_type":"box","text":"supports investors in making informed decisions. The International Sustainability Standards","page_number":287,"box":{"x":184,"y":389,"width":683,"height":12}},{"id":"e1ebf4bf-c1a4-4ef2-a570-5c2bc41578ac","block_type":"box","text":"Board (ISSB) standards, IFRS S1 and S2, represent one such approach to standardization","page_number":287,"box":{"x":184,"y":405,"width":678,"height":12}},{"id":"701e6f95-97fa-4cff-97ba-b322563e1fd9","block_type":"box","text":"that the dedicated team finds useful in its analysis.","page_number":287,"box":{"x":183,"y":420,"width":374,"height":12}},{"id":"a3c6642b-0f27-4a66-b473-e8b79c98dc4e","block_type":"box","text":"14","page_number":287,"box":{"x":559,"y":420,"width":11,"height":7}},{"id":"efe3a5c8-973e-4dba-b9e7-968e2084e938","block_type":"box","text":",","page_number":287,"box":{"x":572,"y":428,"width":8,"height":4}},{"id":"a5b1fe86-7aec-4d26-b0ab-a22cec4d5cc6","block_type":"box","text":"15","page_number":287,"box":{"x":581,"y":420,"width":11,"height":7}},{"id":"3750d741-4ad8-4230-a828-c0b5ac7c0fff","block_type":"box","text":"IFRS S1 addresses the general","page_number":287,"box":{"x":592,"y":420,"width":244,"height":12}},{"id":"69b5cdc0-6803-4317-a17b-78e462ec8650","block_type":"box","text":"requirements of sustainability reporting and IFRS S2 sets out the disclosures that provide","page_number":287,"box":{"x":184,"y":436,"width":667,"height":12}},{"id":"b6b28757-e6d4-4a1f-bc8b-72004b138114","block_type":"box","text":"investors with decision-useful information about a company’s most significant climate- and","page_number":287,"box":{"x":184,"y":451,"width":674,"height":12}},{"id":"db1a74a3-1cdc-4a58-a90a-4c320737cb87","block_type":"box","text":"low-carbon transition-related risks and opportunities. This includes receiving independent,","page_number":287,"box":{"x":184,"y":467,"width":671,"height":12}},{"id":"f9ae46a8-1bac-4bf4-bece-0dbdb9db6863","block_type":"box","text":"third-party assurances, as audit and assurance standards are developed.","page_number":287,"box":{"x":183,"y":482,"width":549,"height":12}},{"id":"e175d504-3edc-421d-bccb-74f0ea1ecbba","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions.","page_number":287,"box":{"x":150,"y":506,"width":536,"height":12}},{"id":"77bf47df-7f03-40cf-a473-0eb95740ebd9","block_type":"box","text":"16","page_number":287,"box":{"x":689,"y":506,"width":10,"height":6}},{"id":"effb34e4-26c8-4a0b-b9f6-5489e4b47ec0","block_type":"box","text":",","page_number":287,"box":{"x":701,"y":514,"width":8,"height":3}},{"id":"a11f10cb-cc06-48bb-8ae1-2b7e806e9136","block_type":"box","text":"17","page_number":287,"box":{"x":710,"y":506,"width":11,"height":6}},{"id":"664d497b-c941-4973-a09b-031392a764b4","block_type":"box","text":"In addition, the","page_number":287,"box":{"x":721,"y":506,"width":120,"height":11}},{"id":"82bb5518-96c5-4151-9750-249a4ee96bcd","block_type":"box","text":"dedicated team looks to companies to disclose their emissions reduction targets for scope 1","page_number":287,"box":{"x":184,"y":521,"width":687,"height":12}},{"id":"1a85a01d-45d7-4f6c-b877-8971194b4ff1","block_type":"box","text":"and 2 emissions, science-based where possible. The team welcomes disclosure of targets or","page_number":287,"box":{"x":184,"y":537,"width":695,"height":12}},{"id":"02b0da89-676e-4257-987b-8f6b62a861af","block_type":"box","text":"13","page_number":287,"box":{"x":144,"y":572,"width":8,"height":5}},{"id":"dd9881ef-1605-422c-a33b-60e3e8477af9","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where reporting","page_number":287,"box":{"x":170,"y":572,"width":695,"height":10}},{"id":"4b5bb1de-1b93-4856-9d6d-d798eaf6bc96","block_type":"box","text":"methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their business","page_number":287,"box":{"x":170,"y":585,"width":686,"height":10}},{"id":"db318946-9ff8-4fa9-af49-fc2b8bdd0b59","block_type":"box","text":"models through the low-carbon transition may require forward-looking statements.","page_number":287,"box":{"x":170,"y":598,"width":485,"height":10}},{"id":"d6753c95-eda3-4bcc-996f-5a31d21f0a75","block_type":"box","text":"14","page_number":287,"box":{"x":144,"y":614,"width":8,"height":4}},{"id":"4338d96c-41fc-4e8c-a3b8-9faead81c5a1","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":287,"box":{"x":170,"y":613,"width":666,"height":10}},{"id":"8fc1f59b-146a-4f57-9973-200ecc5642ab","block_type":"box","text":"Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework and the","page_number":287,"box":{"x":171,"y":626,"width":712,"height":10}},{"id":"25e4dd79-305f-4b4b-b428-c57ed41b6a75","block_type":"box","text":"standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":287,"box":{"x":170,"y":639,"width":649,"height":10}},{"id":"34c45de3-3e05-41ed-95d4-b8ba580a29fa","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":287,"box":{"x":170,"y":652,"width":674,"height":10}},{"id":"ac986243-8f0f-4ab2-aeb0-9ebf85b291cb","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":287,"box":{"x":170,"y":665,"width":647,"height":10}},{"id":"ae182770-faca-4550-af28-949689accb70","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":287,"box":{"x":171,"y":678,"width":312,"height":8}},{"id":"ccaac7b2-6475-45b0-b5d7-2552659678dc","block_type":"box","text":"15","page_number":287,"box":{"x":144,"y":694,"width":8,"height":5}},{"id":"11442f08-9e46-4d67-a914-13fbede8d566","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to doing","page_number":287,"box":{"x":170,"y":694,"width":694,"height":9}},{"id":"fa6483f3-b864-4449-bbdc-5f8bf68a4c17","block_type":"box","text":"so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":287,"box":{"x":170,"y":706,"width":651,"height":10}},{"id":"c3b2e845-23f7-4578-8250-fa42aa7b7239","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we ask","page_number":287,"box":{"x":170,"y":719,"width":698,"height":10}},{"id":"40255ec9-ab19-47aa-81ab-1813c4b02b67","block_type":"box","text":"that companies highlight the metrics that are industry- or company-specific. We also recognize that companies may be","page_number":287,"box":{"x":170,"y":732,"width":703,"height":10}},{"id":"24e15aea-8161-452a-804f-11a673f28b90","block_type":"box","text":"phasing in reporting over several years. We do not prescribe timelines regarding when companies should make","page_number":287,"box":{"x":170,"y":745,"width":661,"height":10}},{"id":"4caa46c9-898e-4d80-aebf-a90cf5780a99","block_type":"box","text":"sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of their","page_number":287,"box":{"x":170,"y":758,"width":664,"height":10}},{"id":"1f8ad87d-517e-4442-a1c5-50c4ec08bce4","block_type":"box","text":"shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make informed","page_number":287,"box":{"x":170,"y":771,"width":698,"height":10}},{"id":"65c9ac5b-485a-4ed9-a585-ab56b21d3bbb","block_type":"box","text":"voting decisions.","page_number":287,"box":{"x":170,"y":784,"width":98,"height":10}},{"id":"2400bb7e-fdc8-4207-a96d-1aae0b679d0d","block_type":"box","text":"16","page_number":287,"box":{"x":144,"y":800,"width":8,"height":4}},{"id":"25ef7d0a-ab61-4427-b6ba-a7f7da7c6699","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":287,"box":{"x":171,"y":799,"width":685,"height":10}},{"id":"bb9fc477-25de-4aea-8452-9a388f494352","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in December","page_number":287,"box":{"x":170,"y":812,"width":708,"height":10}},{"id":"f3567d60-73b6-47b6-b61f-2ebeab933243","block_type":"box","text":"2025.","page_number":287,"box":{"x":170,"y":825,"width":32,"height":8}},{"id":"49ef27b1-188f-4104-aefa-572e15f022d9","block_type":"box","text":"17","page_number":287,"box":{"x":144,"y":841,"width":8,"height":5}},{"id":"73d1f4c5-9b36-45cb-8b2f-015ad71dfb46","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":287,"box":{"x":171,"y":841,"width":680,"height":9}},{"id":"d9bef393-23d8-433d-b6a2-56742b6a2d7e","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":287,"box":{"x":171,"y":854,"width":706,"height":9}},{"id":"babf02c0-1347-4480-9c42-5cbde53c1e0f","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":287,"box":{"x":170,"y":867,"width":677,"height":9}},{"id":"50f9904b-7159-4cc1-a04e-da9683854394","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":287,"box":{"x":170,"y":880,"width":650,"height":9}},{"id":"3dcbd48d-b3ed-4b09-b9b0-61fa1cbbcb47","block_type":"box","text":"BlackRock Investment Stewardship","page_number":287,"box":{"x":117,"y":909,"width":262,"height":11}},{"id":"162d98e7-054a-4680-961a-7500f87a6f64","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines |","page_number":287,"box":{"x":490,"y":909,"width":375,"height":11}},{"id":"d406198a-455b-493e-b0ef-1fa15f5738cc","block_type":"box","text":"6","page_number":287,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"c6eb86f2-e759-4fbc-a781-bb9272e9056d","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":287,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"d4fb5c53-e7a4-4ced-a32f-e8842ed74164","block_type":"box","text":"indicative goals, where companies have set them, for scope 3 emissions reductions. Scope 3","page_number":288,"box":{"x":184,"y":87,"width":696,"height":12}},{"id":"5459edac-e135-4826-8996-207760e07a1a","block_type":"box","text":"information, including how a company is working with its value chain to accelerate reductions","page_number":288,"box":{"x":184,"y":102,"width":694,"height":13}},{"id":"42b6194f-792b-4d4d-a0e2-1da52959e5ab","block_type":"box","text":"in GHG intensity, provides useful insight to investors focused on investing in the low-carbon","page_number":288,"box":{"x":184,"y":118,"width":684,"height":12}},{"id":"feb442f0-6d8c-4971-a441-a177258deb95","block_type":"box","text":"transition and understanding the impact of their investments on their decarbonization goals.","page_number":288,"box":{"x":183,"y":134,"width":678,"height":12}},{"id":"4afab9c8-0bb0-4e82-86b8-3a09c26d48d4","block_type":"box","text":"18","page_number":288,"box":{"x":864,"y":134,"width":10,"height":6}},{"id":"373f3e9a-822d-4bbf-923c-c366a3c15534","block_type":"box","text":"However, the team recognizes that companies have varying ability to influence the emissions","page_number":288,"box":{"x":184,"y":149,"width":696,"height":12}},{"id":"6fb0e170-894a-4ddc-82ca-88b100df951d","block_type":"box","text":"across the different parts of their value chain and, therefore, it is helpful when disclosures","page_number":288,"box":{"x":184,"y":165,"width":667,"height":11}},{"id":"7557626b-1ce5-4e53-a857-ce5307cc8958","block_type":"box","text":"explain the implications for the achievement of their decarbonization targets. For some","page_number":288,"box":{"x":184,"y":180,"width":647,"height":12}},{"id":"bdc25593-8cd0-4247-8c87-81ae206b9e45","block_type":"box","text":"companies that play an important role in the low-carbon transition, scope 3 may represent","page_number":288,"box":{"x":184,"y":196,"width":671,"height":12}},{"id":"b30c7520-8cf2-43c3-9e89-d530f36cffb0","block_type":"box","text":"their only significant source of GHG emissions in the value chain. While we do not believe","page_number":288,"box":{"x":183,"y":211,"width":672,"height":12}},{"id":"3b1403b9-bba2-48da-9eb8-9c7e40f5d87c","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control,","page_number":288,"box":{"x":184,"y":227,"width":693,"height":12}},{"id":"9a11953f-2633-4525-b829-94e625e35856","block_type":"box","text":"where relevant, we look for disclosures on how the company approaches the low-carbon","page_number":288,"box":{"x":183,"y":242,"width":662,"height":12}},{"id":"9b4c2119-e052-44b4-bcf3-25d36e0c54b4","block_type":"box","text":"transition in these cases. This may include plans and targets to grow businesses that","page_number":288,"box":{"x":183,"y":258,"width":636,"height":12}},{"id":"54d18f94-74fe-4589-a509-ef05699a502c","block_type":"box","text":"contribute to real world decarbonization, forward-looking capital or procurement allocation","page_number":288,"box":{"x":184,"y":273,"width":670,"height":12}},{"id":"a93fe72a-2c07-426f-9647-7fec23a8c639","block_type":"box","text":"plans to net-zero aligned activities or suppliers, and strategies to mitigate material transition","page_number":288,"box":{"x":184,"y":289,"width":684,"height":12}},{"id":"7e6f25e0-2189-40e1-be8b-d99ccc08f6ac","block_type":"box","text":"risks.","page_number":288,"box":{"x":184,"y":304,"width":43,"height":10}},{"id":"345acedb-1629-4449-8ca7-e017610c197b","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical","page_number":288,"box":{"x":150,"y":327,"width":729,"height":12}},{"id":"6c0573a3-1f49-47d7-8b2e-289e702f5c03","block_type":"box","text":"risks – such as acute risks from extreme weather events or chronic risks from long-term shifts","page_number":288,"box":{"x":184,"y":343,"width":699,"height":12}},{"id":"a0636988-9dc8-4ea2-bef0-1f8925116bbf","block_type":"box","text":"in climate patterns – and how these risks could reasonably be expected to affect the","page_number":288,"box":{"x":184,"y":358,"width":629,"height":12}},{"id":"6e93b566-51b4-4aee-9d98-eb429a89b071","block_type":"box","text":"company’s operations, assets, or supply chains.","page_number":288,"box":{"x":184,"y":374,"width":361,"height":12}},{"id":"b3390e3b-4db4-43f8-818b-e7411d65d5b8","block_type":"box","text":"Transition plans","page_number":288,"box":{"x":118,"y":405,"width":132,"height":12}},{"id":"9fa83b4b-a05f-488d-9d34-1ea6dabf21a1","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their","page_number":288,"box":{"x":116,"y":436,"width":698,"height":12}},{"id":"e0212823-9b54-4cca-be71-969609b153d1","block_type":"box","text":"low-carbon transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s targets,","page_number":288,"box":{"x":117,"y":451,"width":761,"height":12}},{"id":"f3e45fc1-4d68-4e5a-9750-ceb73d8a3dfb","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as","page_number":288,"box":{"x":116,"y":467,"width":724,"height":12}},{"id":"8193df65-8e2e-4012-83a0-636eac72a996","block_type":"box","text":"reducing its greenhouse gas emissions” (see Appendix 1).","page_number":288,"box":{"x":117,"y":482,"width":430,"height":12}},{"id":"133081e3-7557-419a-8d36-202f9b39f1d9","block_type":"box","text":"19","page_number":288,"box":{"x":550,"y":482,"width":10,"height":7}},{"id":"7ac5c13c-e50b-4b74-b86e-ad29e108228c","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to","page_number":288,"box":{"x":116,"y":513,"width":760,"height":12}},{"id":"8fcb33a1-dc15-4d05-8995-6bd684ffea47","block_type":"box","text":"corporate transition plans.","page_number":288,"box":{"x":116,"y":529,"width":192,"height":12}},{"id":"b7afb4c9-0267-4723-97db-7df4251d5f2b","block_type":"box","text":"20","page_number":288,"box":{"x":310,"y":529,"width":11,"height":6}},{"id":"875e8251-1b19-49d0-9644-8a9e7f9534ae","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans","page_number":288,"box":{"x":321,"y":529,"width":523,"height":12}},{"id":"9cca1f0b-7655-49f3-8b8c-afead3feae9c","block_type":"box","text":"highlights the convergence of reporting approaches.","page_number":288,"box":{"x":117,"y":544,"width":391,"height":12}},{"id":"0aff3880-a102-4e79-a7b9-5e1d865a0e5f","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these","page_number":288,"box":{"x":116,"y":575,"width":697,"height":12}},{"id":"0c8e35f3-bcbf-4d69-9a09-e4ecb7e52cf2","block_type":"box","text":"disclosures typically provide valuable insights that inform the dedicated team’s approach to engaging","page_number":288,"box":{"x":116,"y":591,"width":754,"height":12}},{"id":"ae09868c-b6b0-4c6b-892a-bac662645fe9","block_type":"box","text":"and voting on matters related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":288,"box":{"x":116,"y":606,"width":761,"height":12}},{"id":"ebc7c680-7898-481e-a16e-dbea8d8304d3","block_type":"box","text":"Boards and directors","page_number":288,"box":{"x":117,"y":638,"width":173,"height":9}},{"id":"fa0f4073-fda0-46a7-9dbb-eba2da72ce48","block_type":"box","text":"An effective and well-functioning board that has appropriate governance structures to facilitate","page_number":288,"box":{"x":116,"y":668,"width":699,"height":12}},{"id":"ebdec205-e008-4f7b-a486-943f3f77f006","block_type":"box","text":"oversight of a company’s management and strategic initiatives is critical to the company’s ability to","page_number":288,"box":{"x":116,"y":684,"width":731,"height":12}},{"id":"63aed2c3-2613-4ac8-a50f-039f4411916b","block_type":"box","text":"18","page_number":288,"box":{"x":144,"y":722,"width":8,"height":5}},{"id":"3ac11a96-27fc-47de-a2b3-01592bb95609","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly traded","page_number":288,"box":{"x":170,"y":722,"width":707,"height":10}},{"id":"0539fad7-e75c-499f-a9ed-d3e2b61e0349","block_type":"box","text":"companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":288,"box":{"x":170,"y":735,"width":645,"height":10}},{"id":"d15b53db-8b4a-42d5-9753-6d8a0452e9e5","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":288,"box":{"x":170,"y":748,"width":686,"height":9}},{"id":"5409e16d-8331-47fc-896a-c95abdbbd891","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":288,"box":{"x":170,"y":761,"width":663,"height":9}},{"id":"9b1a8ec3-b106-4414-82d1-6f0293e8c1ac","block_type":"box","text":"material to their business models.","page_number":288,"box":{"x":170,"y":774,"width":199,"height":7}},{"id":"12c9d2f6-9bca-49e3-be54-829d52b5a9f1","block_type":"box","text":"19","page_number":288,"box":{"x":144,"y":789,"width":8,"height":5}},{"id":"57792b8a-bc63-49a2-aa88-349a6872a271","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in December","page_number":288,"box":{"x":171,"y":789,"width":712,"height":10}},{"id":"993fe912-df9a-4b1f-9332-797a198382be","block_type":"box","text":"2025.","page_number":288,"box":{"x":170,"y":802,"width":32,"height":8}},{"id":"9c1809d2-c31c-4414-81cf-7d3146e30009","block_type":"box","text":"20","page_number":288,"box":{"x":143,"y":815,"width":9,"height":5}},{"id":"1d08c2dc-bb8b-4d33-be94-5f8378a0ab0e","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their intentions to","page_number":288,"box":{"x":171,"y":815,"width":705,"height":10}},{"id":"c2aa1931-f930-4ad5-af2f-6e498c4aca2c","block_type":"box","text":"require them or already have requirements in place, such as Australia, Brazil, and the European Union (please see the","page_number":288,"box":{"x":170,"y":828,"width":704,"height":10}},{"id":"efc7825a-f0f8-4ad6-b9a6-0534c47671cb","block_type":"box","text":"International Transition Plan Network for information). BlackRock views transition plans as a method for a company to","page_number":288,"box":{"x":171,"y":841,"width":697,"height":9}},{"id":"d373e2b5-ea2c-4057-a94c-aca01db6404c","block_type":"box","text":"both internally assess and externally communicate its long-term strategy, ambition, objectives, and actions to create","page_number":288,"box":{"x":170,"y":854,"width":687,"height":9}},{"id":"6792c934-05ff-4c2f-a6d6-151ee2565344","block_type":"box","text":"financial value through the global transition towards a low-carbon economy. Across the landscape there remains","page_number":288,"box":{"x":170,"y":867,"width":666,"height":9}},{"id":"e3e3de5c-f073-4e8a-a290-69cb9d0c1173","block_type":"box","text":"divergence on the objectives of such plans and the details they should contain. 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In assessing the role and effectiveness of the board in this","page_number":289,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"f8432262-9c9d-4757-bcea-fd8c5b7959fd","block_type":"box","text":"regard, the dedicated team seeks to understand whether:","page_number":289,"box":{"x":117,"y":103,"width":430,"height":12}},{"id":"0664e69a-6714-488b-bfdd-992f41e8b74e","block_type":"box","text":"• The board has clear oversight responsibilities for climate and low-carbon transition-related risks","page_number":289,"box":{"x":125,"y":134,"width":738,"height":12}},{"id":"96ffb9e3-b4b0-48d2-8de9-16e99ec1919f","block_type":"box","text":"and opportunities in the company’s business model. The Guidelines consider the whole board to","page_number":289,"box":{"x":150,"y":149,"width":719,"height":12}},{"id":"8f71fbfc-cdd6-46dd-a9bf-fa6cc26946cd","block_type":"box","text":"have responsibility for oversight of the company’s long-term strategy, including those aspects","page_number":289,"box":{"x":150,"y":165,"width":696,"height":12}},{"id":"1e0c9213-06ed-4fd3-93b5-a8b6c81b61a9","block_type":"box","text":"related to the transition to a low-carbon economy.","page_number":289,"box":{"x":150,"y":180,"width":373,"height":12}},{"id":"f10e3a89-983c-4db1-aa0f-67308ff54eb5","block_type":"box","text":"• Management has established a robust low-carbon transition framework and long-term strategy,","page_number":289,"box":{"x":125,"y":203,"width":735,"height":12}},{"id":"9590404b-b259-48b0-952c-94c2aa33043c","block_type":"box","text":"with clear accountability for delivery by senior executives.","page_number":289,"box":{"x":149,"y":219,"width":432,"height":12}},{"id":"3736f5b6-b162-4ac0-9ebe-13faa705acb2","block_type":"box","text":"• The capital management strategy explains how the company allocates investments to (traditional","page_number":289,"box":{"x":125,"y":242,"width":749,"height":12}},{"id":"b278c1e8-7cef-429f-ba59-9a677eb5b94c","block_type":"box","text":"and next generation) business lines and innovation, and returns cash to shareholders, consistent","page_number":289,"box":{"x":150,"y":258,"width":724,"height":12}},{"id":"9516af72-161c-486b-96f0-92adaa385508","block_type":"box","text":"with the company’s stated low-carbon transition strategy.","page_number":289,"box":{"x":149,"y":273,"width":428,"height":12}},{"id":"488d219d-e229-45d2-a9fd-e91f2134c46a","block_type":"box","text":"• The climate and low-carbon transition risks most likely to significantly impact the business are","page_number":289,"box":{"x":125,"y":296,"width":724,"height":12}},{"id":"66476899-f3d0-445a-8109-540a429c5fda","block_type":"box","text":"integrated into the company’s enterprise risk management processes and reporting.","page_number":289,"box":{"x":150,"y":312,"width":627,"height":12}},{"id":"f7f76d9b-4532-420a-b318-d9c94e63aa63","block_type":"box","text":"• The company has set scope 1 and 2 GHG emissions reduction targets, science-based and","page_number":289,"box":{"x":125,"y":335,"width":704,"height":12}},{"id":"fd0c50eb-87d7-4058-bd49-1ee7ef6df19d","block_type":"box","text":"independently verified where possible, against a baseline, that are consistent with the ambition to","page_number":289,"box":{"x":150,"y":351,"width":726,"height":12}},{"id":"dbce6055-ef75-4f41-ba91-9c5e337547a8","block_type":"box","text":"limit average global temperature rise to no more than 1.5°C above pre-industrial levels.","page_number":289,"box":{"x":150,"y":366,"width":651,"height":12}},{"id":"f122a98b-d22f-4be6-a6f3-d05bd9a1a770","block_type":"box","text":"• There is a clear link between the company’s scope 1 and 2 GHG emissions reduction targets over","page_number":289,"box":{"x":125,"y":389,"width":757,"height":12}},{"id":"8b69e4d7-46a4-41fc-8750-13249f65328e","block_type":"box","text":"time and its long-term low-carbon transition strategy.","page_number":289,"box":{"x":150,"y":405,"width":395,"height":12}},{"id":"0bb1473a-5649-43f6-9a79-1f2cd0a5d6ac","block_type":"box","text":"• The company is monitoring its most significant scope 3 emissions and disclosing these where it is","page_number":289,"box":{"x":125,"y":428,"width":754,"height":12}},{"id":"5c88b954-80e7-4619-aed6-f62996964866","block_type":"box","text":"confident in the data. Given forthcoming regulatory requirements in certain jurisdictions, some","page_number":289,"box":{"x":150,"y":444,"width":700,"height":12}},{"id":"97ea458e-8b9f-49b9-a22b-eaaac8c898f3","block_type":"box","text":"companies are voluntarily disclosing scope 3 emissions reductions targets and plans, setting out","page_number":289,"box":{"x":150,"y":459,"width":720,"height":12}},{"id":"34b81055-94bc-47eb-a96b-86a2be29e24b","block_type":"box","text":"how they are working on decarbonization with the different constituents in their value chain.","page_number":289,"box":{"x":150,"y":475,"width":682,"height":12}},{"id":"0a73cded-272c-456f-bd3b-8c38c70cd25f","block_type":"box","text":"21","page_number":289,"box":{"x":833,"y":475,"width":10,"height":6}},{"id":"2b6bf8a9-7f99-4f7c-947a-d2988b075a25","block_type":"box","text":"• The company’s governance and oversight processes for managing material risks associated with","page_number":289,"box":{"x":125,"y":498,"width":749,"height":12}},{"id":"4eb39929-492c-4fbd-90c3-4a459e1aa9e9","block_type":"box","text":"corporate political activities including applicable policies and procedures where relevant.","page_number":289,"box":{"x":150,"y":514,"width":652,"height":11}},{"id":"4371ccc1-8907-418b-9e43-e6878facafda","block_type":"box","text":"22","page_number":289,"box":{"x":804,"y":513,"width":11,"height":7}},{"id":"491b7ead-5eb0-4c51-b759-5f24b72f2cc1","block_type":"box","text":"The","page_number":289,"box":{"x":816,"y":514,"width":38,"height":9}},{"id":"72add421-457d-4ff2-a9a1-1baac91a3b6b","block_type":"box","text":"dedicated team looks for public policy engagement to be consistent with a company’s stated","page_number":289,"box":{"x":150,"y":529,"width":689,"height":12}},{"id":"56a9f2af-96fe-48d2-a983-f8b1cdc7568b","block_type":"box","text":"strategic policy objectives, including those related to the low-carbon transition.","page_number":289,"box":{"x":150,"y":545,"width":584,"height":11}},{"id":"1c3e172f-97bb-467b-957a-f79bab7ce2fe","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":289,"box":{"x":118,"y":576,"width":463,"height":11}},{"id":"e97ccba0-e199-4649-85e2-0b91b00ddab7","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors","page_number":289,"box":{"x":117,"y":606,"width":726,"height":12}},{"id":"b7af6f5e-d153-4ca7-83fd-a5898ba136ec","block_type":"box","text":"standing for election where, in its assessment based on company disclosures and engagement, a","page_number":289,"box":{"x":116,"y":622,"width":729,"height":12}},{"id":"407c71e7-aa55-4f42-ae1a-6158298f6618","block_type":"box","text":"company is executing on its commitment to align with the transition to a low-carbon economy, as","page_number":289,"box":{"x":116,"y":638,"width":722,"height":11}},{"id":"bd38dfb8-675a-47ec-ad79-0109363dc9ca","block_type":"box","text":"defined above. Where the dedicated team determines this is not the case, it may vote against the","page_number":289,"box":{"x":116,"y":653,"width":727,"height":12}},{"id":"68374b0a-2366-477a-adb6-6bc28f2bbe6d","block_type":"box","text":"election of one or more directors who the team identifies as having the most responsibility for the issue.","page_number":289,"box":{"x":116,"y":668,"width":766,"height":12}},{"id":"2e5f9e17-0623-4d71-a8f9-4f60b91b8fda","block_type":"box","text":"The directors most likely to be in focus are the chair of the board committee with low-carbon transition,","page_number":289,"box":{"x":116,"y":684,"width":759,"height":12}},{"id":"44f0fd7d-35df-4c61-96f0-a36b9caca4e5","block_type":"box","text":"climate or sustainability risk oversight responsibilities, other members of the relevant committee, the","page_number":289,"box":{"x":116,"y":699,"width":741,"height":13}},{"id":"4e9961b2-064c-4123-8327-060a38ed7b89","block_type":"box","text":"lead independent director or the non-executive chair of the board. In certain markets, the team may","page_number":289,"box":{"x":117,"y":715,"width":736,"height":12}},{"id":"2b18bad1-ebb0-4b2c-b4fa-116dcee0deed","block_type":"box","text":"withhold support for the discharge of the supervisory board or equivalent and/or board reports.","page_number":289,"box":{"x":116,"y":730,"width":699,"height":13}},{"id":"2e6735c1-672d-4c86-8443-a911626e0b4d","block_type":"box","text":"23","page_number":289,"box":{"x":817,"y":731,"width":11,"height":6}},{"id":"deb69fcf-9ecd-47e6-acf0-e3c058931aea","block_type":"box","text":"21","page_number":289,"box":{"x":143,"y":758,"width":8,"height":5}},{"id":"1e5d816e-0515-4efc-ba6b-1d694b754e37","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":289,"box":{"x":171,"y":758,"width":685,"height":10}},{"id":"29ba2870-b254-481b-a67d-93d19af2b16f","block_type":"box","text":"paper “Scope for improvement: Solving the Scope 3 conundrum.” Their research indicates that there are 2-3 material","page_number":289,"box":{"x":170,"y":771,"width":692,"height":10}},{"id":"730e6289-d441-4035-9e69-04efb2779a14","block_type":"box","text":"scope 3 GHG emissions categories by sector. The research uses a definition of materiality from the GHG Protocol,","page_number":289,"box":{"x":170,"y":784,"width":679,"height":10}},{"id":"49b09e8e-84c6-49a8-97e3-1c64f6d72396","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, that offer","page_number":289,"box":{"x":170,"y":797,"width":706,"height":10}},{"id":"73d7166e-06cf-4023-80d5-eea717a865a1","block_type":"box","text":"the most significant GHG reduction opportunities and are most relevant to the company’s business goals.” Website","page_number":289,"box":{"x":170,"y":810,"width":681,"height":9}},{"id":"1fc431a1-999b-4d44-80f5-09e554d71c96","block_type":"box","text":"accessed in December 2025.","page_number":289,"box":{"x":170,"y":823,"width":173,"height":7}},{"id":"4a6499ef-4b0f-4535-898a-332d6bed875b","block_type":"box","text":"22","page_number":289,"box":{"x":143,"y":838,"width":9,"height":5}},{"id":"12cf3fad-09ee-4a1b-a3f3-e77ee8e005bc","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including trade","page_number":289,"box":{"x":170,"y":838,"width":694,"height":10}},{"id":"7d3005c4-d633-4539-807d-3e5f07848079","block_type":"box","text":"association memberships), and corporate political contributions.","page_number":289,"box":{"x":170,"y":851,"width":378,"height":10}},{"id":"99930501-e91c-4d9c-b566-bdc67cc856b1","block_type":"box","text":"23","page_number":289,"box":{"x":143,"y":867,"width":9,"height":5}},{"id":"d2597139-b05c-46ee-8427-c85ac7bfba7b","block_type":"box","text":"Board report votes are generally advisory and relate to reports issued by the board of directors that may contain","page_number":289,"box":{"x":171,"y":867,"width":661,"height":9}},{"id":"377cb904-4983-42e9-9aa0-0414c1b58824","block_type":"box","text":"information on a company’s sustainability efforts, operational resilience, or financial condition, among others.","page_number":289,"box":{"x":170,"y":880,"width":643,"height":9}},{"id":"b7f840bd-605a-46f0-b860-9f5a87739a46","block_type":"box","text":"BlackRock Investment Stewardship","page_number":289,"box":{"x":117,"y":909,"width":262,"height":11}},{"id":"22ac490d-9afc-4e71-8f49-7c45ffd8234a","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines |","page_number":289,"box":{"x":490,"y":909,"width":375,"height":11}},{"id":"8090022b-bb86-4e6b-939c-6d54d9e24153","block_type":"box","text":"8","page_number":289,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"0c31b955-57a3-4cae-a9a8-87ca48a5f13c","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":289,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"6b4e6e25-bb1f-40a8-bf57-b995202f6803","block_type":"box","text":"Where the dedicated team has not supported director elections over climate concerns in a prior year,","page_number":290,"box":{"x":116,"y":87,"width":754,"height":12}},{"id":"b9395316-0adc-4183-912e-7330a0371161","block_type":"box","text":"and the company has not subsequently made progress towards aligning with the transition to a","page_number":290,"box":{"x":116,"y":103,"width":709,"height":12}},{"id":"d20fcbe3-87e0-4949-bfbf-f636dc66461f","block_type":"box","text":"low-carbon economy, the team may escalate by not supporting the re-election of additional responsible","page_number":290,"box":{"x":117,"y":118,"width":769,"height":12}},{"id":"d2316684-4788-4f51-8c77-ee7637d47a00","block_type":"box","text":"directors.","page_number":290,"box":{"x":116,"y":134,"width":67,"height":9}},{"id":"20eca744-2838-43ce-b295-cb2bb7c13824","block_type":"box","text":"24","page_number":290,"box":{"x":185,"y":134,"width":12,"height":6}},{"id":"a0f34563-1693-4246-853c-cfa56a08a123","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":290,"box":{"x":117,"y":165,"width":581,"height":12}},{"id":"77d2129c-1cfd-4927-9801-c2e180915b94","block_type":"box","text":"In certain markets, company management may submit proposals – commonly referred to as “Say on","page_number":290,"box":{"x":117,"y":196,"width":749,"height":12}},{"id":"56b1f3d7-aa15-493e-823a-f078f639dffa","block_type":"box","text":"Climate” – seeking shareholder approval of their climate action plans or progress reports. The","page_number":290,"box":{"x":117,"y":211,"width":700,"height":12}},{"id":"9c80f668-25d0-4cc6-94f0-9c1a5cb364c8","block_type":"box","text":"Guidelines consider these proposals as a valuable governance mechanism that can enhance","page_number":290,"box":{"x":117,"y":227,"width":696,"height":12}},{"id":"e7160d64-84c5-47cf-9df8-3221b432d4ab","block_type":"box","text":"transparency, accountability, and investors’ understanding of a company’s climate strategy. The","page_number":290,"box":{"x":116,"y":242,"width":716,"height":12}},{"id":"f7d4cd23-68c1-4c7d-b8ba-2726f8a4260e","block_type":"box","text":"dedicated team generally supports management’s climate strategy proposal if, in the team’s","page_number":290,"box":{"x":116,"y":258,"width":687,"height":12}},{"id":"7c2e5203-2bda-4294-9992-1ee1f4725096","block_type":"box","text":"assessment based on these Guidelines, the strategy is aligned with the low-carbon transition. Similarly,","page_number":290,"box":{"x":116,"y":273,"width":772,"height":12}},{"id":"93ab746e-6bcf-426f-b713-448f6bc3e80b","block_type":"box","text":"the dedicated team generally supports management’s proposal on a progress report if the company","page_number":290,"box":{"x":116,"y":289,"width":745,"height":12}},{"id":"0c280ee2-2cfc-4daa-90e4-6955f46d8a92","block_type":"box","text":"has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":290,"box":{"x":117,"y":304,"width":770,"height":12}},{"id":"fc5c4b0a-7f62-451e-af6d-1a8fd310b5ab","block_type":"box","text":"transition plan and targets.","page_number":290,"box":{"x":116,"y":320,"width":203,"height":12}},{"id":"4757f4b5-86b8-4101-88a6-0b164ee62c46","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":290,"box":{"x":116,"y":351,"width":552,"height":11}},{"id":"8ea1966f-d32c-412d-9789-a40aa62ad833","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder","page_number":290,"box":{"x":117,"y":382,"width":717,"height":12}},{"id":"adb0c8dd-19cb-4881-8dff-fe3005ecc183","block_type":"box","text":"meeting, as long as certain requirements are met. Shareholder proposals span a wide range of topics","page_number":290,"box":{"x":117,"y":397,"width":758,"height":12}},{"id":"89b9ba3b-4dc6-4699-848e-14ffd36ad87f","block_type":"box","text":"and have varying degrees of relevance for companies across sectors, locations, and business models.","page_number":290,"box":{"x":116,"y":413,"width":766,"height":12}},{"id":"684e3d48-e697-4bb1-b01f-6906726f20ad","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while","page_number":290,"box":{"x":117,"y":444,"width":687,"height":12}},{"id":"48e1230b-4c92-4334-985f-a215669a0969","block_type":"box","text":"considering the company’s individual circumstances. When the dedicated team votes in support of a","page_number":290,"box":{"x":116,"y":459,"width":748,"height":12}},{"id":"79c74f56-5b22-4c95-ad5c-9f3ed69871cd","block_type":"box","text":"proposal, it is not necessarily endorsing every element of the proposal or the reasoning, objectives, or","page_number":290,"box":{"x":117,"y":475,"width":759,"height":12}},{"id":"be2b9943-a333-40c7-a185-8456d387fd1d","block_type":"box","text":"supporting statement of the proponent.","page_number":290,"box":{"x":116,"y":490,"width":294,"height":12}},{"id":"4ab01bde-5801-45be-ad08-875c5ff66230","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s","page_number":290,"box":{"x":117,"y":521,"width":752,"height":12}},{"id":"10bd7c28-f6a8-4f9d-b14b-1c796d691415","block_type":"box","text":"low-carbon transition strategy and targets. The dedicated team assesses the implications for, and the","page_number":290,"box":{"x":117,"y":537,"width":756,"height":12}},{"id":"dce6660e-b00a-4a53-b515-850a7e5f802e","block_type":"box","text":"relevance to, the company’s stated low-carbon transition strategy and targets. Under the Guidelines,","page_number":290,"box":{"x":117,"y":552,"width":749,"height":12}},{"id":"dc358097-a9ed-4321-8fd6-171507ab6c73","block_type":"box","text":"the team may support shareholder proposals that, for example, ask a company to:","page_number":290,"box":{"x":116,"y":568,"width":615,"height":12}},{"id":"831cc0eb-b6b6-4cc2-a7cf-d01696fa3612","block_type":"box","text":"• Publish a business plan, and related disclosures, consistent with the ambition to limit average","page_number":290,"box":{"x":150,"y":599,"width":732,"height":12}},{"id":"a999ed15-e905-4979-83d3-76d76a2240c8","block_type":"box","text":"global temperature rise to no more than 1.5°C above pre-industrial levels","page_number":290,"box":{"x":184,"y":614,"width":546,"height":12}},{"id":"c0449bcc-9355-43b0-87f5-d5b3ef7f79bc","block_type":"box","text":"• Align scope 1 and 2 GHG emissions reduction targets to, and/or discuss how their targets","page_number":290,"box":{"x":150,"y":637,"width":704,"height":12}},{"id":"1f0468e6-8699-4b9b-831a-6846a4abb0b9","block_type":"box","text":"align with, a long-term goal of the company achieving net zero GHG emissions by 2050","page_number":290,"box":{"x":184,"y":653,"width":653,"height":12}},{"id":"5756b58e-cdd3-4543-a6b8-4e3d8514045a","block_type":"box","text":"• Disclose the categories of scope 3 GHG emissions most significant to a company’s business","page_number":290,"box":{"x":150,"y":676,"width":721,"height":12}},{"id":"951faf88-b602-4e75-a055-de72548541e1","block_type":"box","text":"model","page_number":290,"box":{"x":184,"y":692,"width":44,"height":9}},{"id":"5c7f4d79-43b2-4169-a8a9-eeba9a72c830","block_type":"box","text":"• Improve voluntary disclosures on the alignment of a company’s climate-related corporate","page_number":290,"box":{"x":150,"y":715,"width":693,"height":12}},{"id":"b0f4249b-31ff-4bf5-a138-1617958ce548","block_type":"box","text":"political activities with its strategic policy positions, where existing disclosure is insufficient","page_number":290,"box":{"x":184,"y":730,"width":666,"height":13}},{"id":"b3405bde-7c90-460b-8b36-ac5eaa805d0e","block_type":"box","text":"25","page_number":290,"box":{"x":850,"y":731,"width":11,"height":6}},{"id":"4aec179f-60cd-444d-8afd-83bca5fc84ca","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or","page_number":290,"box":{"x":116,"y":762,"width":682,"height":11}},{"id":"4bfb6b5c-2c12-4863-80fc-7cfa665eb59a","block_type":"box","text":"management decision-making or direct specific business or strategic decisions.","page_number":290,"box":{"x":117,"y":777,"width":587,"height":12}},{"id":"1729df48-060c-4aaf-8b18-3531ae8df5be","block_type":"box","text":"24","page_number":290,"box":{"x":143,"y":815,"width":9,"height":5}},{"id":"e3ccba57-ad1a-4940-981b-592f1466f087","block_type":"box","text":"While the dedicated team may escalate voting by not supporting additional management proposals, principally director","page_number":290,"box":{"x":170,"y":815,"width":703,"height":10}},{"id":"93a874ed-b599-499b-9552-696bb819f385","block_type":"box","text":"elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using the media","page_number":290,"box":{"x":170,"y":828,"width":702,"height":10}},{"id":"7ca42c48-32b6-4e2b-8dac-aa388c66c5de","block_type":"box","text":"to amplify concerns as appropriate courses of action. The dedicated team will continue to take a constructive, long-term","page_number":290,"box":{"x":170,"y":841,"width":708,"height":9}},{"id":"d037d70d-014b-4573-9f3a-6b9c2a81ba6b","block_type":"box","text":"focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":290,"box":{"x":170,"y":854,"width":530,"height":9}},{"id":"1a5f36da-41fc-4baa-babd-fee183973e3f","block_type":"box","text":"25","page_number":290,"box":{"x":143,"y":867,"width":9,"height":5}},{"id":"be2aa6d0-44b5-4014-83ee-d874c033682d","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including trade","page_number":290,"box":{"x":170,"y":867,"width":694,"height":9}},{"id":"8a9f050e-403f-49a2-8613-4e61d2ddc4e8","block_type":"box","text":"association memberships), and corporate political contributions.","page_number":290,"box":{"x":170,"y":880,"width":378,"height":9}},{"id":"b97a78e4-c75a-4e09-82c7-b07d0157ae62","block_type":"box","text":"BlackRock Investment Stewardship","page_number":290,"box":{"x":117,"y":909,"width":262,"height":11}},{"id":"128ffacc-3953-40a8-bfe6-e6f093910ed2","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines |","page_number":290,"box":{"x":490,"y":909,"width":375,"height":11}},{"id":"18cb0eea-e075-4499-b272-1be7b6d6506a","block_type":"box","text":"9","page_number":290,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"c52510f4-dcd9-47a9-8194-d73d6500f6d0","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":290,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"c5fecc20-0217-422d-b992-5f140b54f018","block_type":"box","text":"RELATED MATTERS","page_number":291,"box":{"x":418,"y":87,"width":169,"height":10}},{"id":"9ce328ff-7597-4387-b39b-8f6487729194","block_type":"box","text":"There are other business items not covered above that may be put to a shareholder vote that could","page_number":291,"box":{"x":116,"y":118,"width":741,"height":12}},{"id":"19855446-8ebc-47ff-94f7-8f8080e372dd","block_type":"box","text":"address matters relevant to the transition to a low-carbon economy. Under these Guidelines, the","page_number":291,"box":{"x":116,"y":134,"width":720,"height":12}},{"id":"c7c92891-f041-44cd-8fb5-792109f3ba36","block_type":"box","text":"dedicated team engages, where appropriate, to enhance its understanding of a company’s approach.","page_number":291,"box":{"x":116,"y":149,"width":757,"height":12}},{"id":"65c1d2b0-fd34-4f20-ae5e-e60a04ce0131","block_type":"box","text":"Generally, voting on these matters would be covered by BIS’ Benchmark Policies.","page_number":291,"box":{"x":117,"y":165,"width":612,"height":12}},{"id":"29b29edc-bdd6-47ae-8040-81fe79134903","block_type":"box","text":"Executive compensation","page_number":291,"box":{"x":117,"y":203,"width":201,"height":12}},{"id":"b4135929-29ca-44a6-9a32-59988cc05ebe","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that","page_number":291,"box":{"x":116,"y":234,"width":681,"height":12}},{"id":"9bd7422c-2b69-4232-b0f1-14fd5f0e49ba","block_type":"box","text":"incentivizes and rewards executives appropriately. Some companies, in light of their long-term","page_number":291,"box":{"x":117,"y":250,"width":703,"height":12}},{"id":"5c69f0f4-372e-4929-9457-73554d3579a5","block_type":"box","text":"strategy, may decide to include relevant GHG emissions reduction targets or low-carbon transition","page_number":291,"box":{"x":116,"y":265,"width":734,"height":12}},{"id":"cfb1c3d5-dc12-45d7-b142-f39217a572a5","block_type":"box","text":"related metrics in their incentive plans. In such cases, the dedicated team would engage to understand","page_number":291,"box":{"x":117,"y":281,"width":767,"height":12}},{"id":"9f83dde4-522e-48db-b765-1a52714bdcd5","block_type":"box","text":"the alignment between those metrics and the company’s stated climate strategy. Clear disclosure also","page_number":291,"box":{"x":116,"y":296,"width":763,"height":12}},{"id":"eb82fac2-e72e-4edc-a7bc-81e0b29bb78d","block_type":"box","text":"helps investors assess whether pay structures are consistent with long-term climate strategy and risk","page_number":291,"box":{"x":117,"y":312,"width":754,"height":12}},{"id":"ca96f58d-0799-48ee-b6ae-7d4c84c95b70","block_type":"box","text":"management.","page_number":291,"box":{"x":117,"y":328,"width":106,"height":11}},{"id":"f4bb7732-21cd-4ab7-87c2-c97e702543ed","block_type":"box","text":"Auditors and audit-related issues","page_number":291,"box":{"x":116,"y":366,"width":271,"height":10}},{"id":"5c1acd5f-ba8b-4f4a-bf00-16b8e4703c88","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the","page_number":291,"box":{"x":117,"y":397,"width":742,"height":12}},{"id":"7e3f133d-9cd9-4a87-8bd4-2bec4f02191f","block_type":"box","text":"dedicated team is interested in understanding whether the company considers and, if relevant,","page_number":291,"box":{"x":116,"y":413,"width":706,"height":12}},{"id":"be19cd91-e9b4-4cf6-8723-d5e628824416","block_type":"box","text":"quantifies, and accounts for material climate-related risks in its financial statements, including if the","page_number":291,"box":{"x":116,"y":428,"width":739,"height":12}},{"id":"d78cacdf-dc11-4ab7-91c8-893ebfd3089f","block_type":"box","text":"company explains such risks within the context of its audit report. 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The dedicated team does not promote changes in corporate","page_number":291,"box":{"x":116,"y":576,"width":723,"height":11}},{"id":"3bcf92f8-2f8e-4341-86de-04032e6a06d2","block_type":"box","text":"control or engage in shareholder activism.","page_number":291,"box":{"x":116,"y":591,"width":317,"height":12}},{"id":"d7025e8f-2739-4da0-81cd-37ac39cc4047","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":291,"box":{"x":116,"y":630,"width":560,"height":12}},{"id":"74469d25-6bf6-417e-9cdb-c15da55b3ea7","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other","page_number":291,"box":{"x":117,"y":661,"width":730,"height":12}},{"id":"c95b3fc4-c9b1-4daa-a300-ec5ad23d5b30","block_type":"box","text":"material sustainability-related risks and opportunities that may be relevant to a company’s business","page_number":291,"box":{"x":117,"y":676,"width":735,"height":12}},{"id":"ab767191-9ffa-448a-b75b-457570645a99","block_type":"box","text":"model and long-term financial performance. These include a company’s impacts or dependencies on","page_number":291,"box":{"x":117,"y":692,"width":746,"height":12}},{"id":"f03265bf-121e-4981-ba7e-9449a726bd15","block_type":"box","text":"natural capital and key stakeholders.","page_number":291,"box":{"x":117,"y":707,"width":270,"height":12}},{"id":"797622b4-ce62-4294-97ec-cb1e6a3fa22f","block_type":"box","text":"26","page_number":291,"box":{"x":389,"y":707,"width":12,"height":6}},{"id":"0b10cf16-eff4-4992-b750-c151876aeb60","block_type":"box","text":"In the context of these Guidelines, the dedicated team may","page_number":291,"box":{"x":407,"y":707,"width":438,"height":12}},{"id":"257d41c8-ff57-406a-b4cb-67dc7b30a837","block_type":"box","text":"engage companies to better understand how they are managing the impact on people (e.g.,","page_number":291,"box":{"x":116,"y":723,"width":679,"height":12}},{"id":"abfccd93-51ec-4c80-8108-f7f548721a15","block_type":"box","text":"employees, suppliers, customers and communities) of any strategic or operational changes they are","page_number":291,"box":{"x":116,"y":738,"width":742,"height":12}},{"id":"a44c258b-a659-4d8d-9fa5-4517833f032c","block_type":"box","text":"making in relation to their transition to a low-carbon economy. 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The economic transformation is being","page_number":292,"box":{"x":117,"y":248,"width":735,"height":13}},{"id":"32ec16ea-b5ef-4931-9195-7ad4d100cd08","block_type":"box","text":"driven by changes in government policy, technology, and consumer and investor preferences, as well","page_number":292,"box":{"x":116,"y":264,"width":758,"height":12}},{"id":"c1ec2e04-af3d-4c41-bf34-630324b425b2","block_type":"box","text":"as the physical effects of climate change (e.g., extreme weather), and can potentially have a material","page_number":292,"box":{"x":116,"y":279,"width":755,"height":13}},{"id":"15896c40-ca29-4883-8dca-69a26bdc8156","block_type":"box","text":"impact on clients’ investments and portfolios.","page_number":292,"box":{"x":117,"y":295,"width":337,"height":12}},{"id":"b04b30a6-e0f4-4ce3-8760-b29c3c6d77bd","block_type":"box","text":"Decarbonization","page_number":292,"box":{"x":117,"y":324,"width":128,"height":9}},{"id":"456e9c7a-b4cf-4150-befd-24d2ef95f370","block_type":"box","text":": the process of reducing or eliminating emissions of carbon dioxide (CO","page_number":292,"box":{"x":248,"y":324,"width":535,"height":12}},{"id":"f2840016-120e-445e-911f-870f841754c4","block_type":"box","text":"2","page_number":292,"box":{"x":784,"y":330,"width":5,"height":6}},{"id":"81a1cf2b-c50d-44f7-901c-68fafb76b987","block_type":"box","text":") from","page_number":292,"box":{"x":790,"y":324,"width":48,"height":12}},{"id":"c11a015e-3f6b-46ed-9031-ca56734af2fc","block_type":"box","text":"human activity and removing carbon currently in the atmosphere. This can be carried out by countries,","page_number":292,"box":{"x":117,"y":339,"width":763,"height":12}},{"id":"a9700998-7391-4140-8889-5f9d51ad0461","block_type":"box","text":"companies and even individual consumers. Sometimes the concept is understood to include the","page_number":292,"box":{"x":116,"y":355,"width":717,"height":12}},{"id":"4d895c5b-78d9-4bbc-ac41-09b001e3b01f","block_type":"box","text":"reduction and elimination of other GHG, e.g., methane.","page_number":292,"box":{"x":117,"y":370,"width":412,"height":12}},{"id":"2f309393-31e1-48a4-ac65-f3af0d1e336e","block_type":"box","text":"Climate-related risks and opportunities","page_number":292,"box":{"x":116,"y":399,"width":312,"height":12}},{"id":"296633af-c590-4365-800b-c40659357766","block_type":"box","text":": The investment opportunities and risks associated with the","page_number":292,"box":{"x":430,"y":399,"width":448,"height":12}},{"id":"df2a97e6-211d-478a-ae2f-3f1a7e852a09","block_type":"box","text":"transition to a low-carbon economy, including transition risks and opportunities and physical risks and","page_number":292,"box":{"x":116,"y":415,"width":757,"height":12}},{"id":"fdc2f1a8-5296-44d1-aa41-0afad4feb6f3","block_type":"box","text":"opportunities in adapting to physical climate change.","page_number":292,"box":{"x":116,"y":430,"width":394,"height":12}},{"id":"7bb78647-f28e-4518-ae8a-c9305afccb1a","block_type":"box","text":"Climate-related transition plan","page_number":292,"box":{"x":116,"y":459,"width":241,"height":12}},{"id":"0aae5a69-d4dc-4849-a18a-377860f91743","block_type":"box","text":": “An aspect of an entity’s overall strategy that lays out the entity’s","page_number":292,"box":{"x":360,"y":459,"width":492,"height":12}},{"id":"60260449-693d-4d40-81ee-13e95911067f","block_type":"box","text":"targets, actions or resources for its transition towards a lower-carbon economy, including actions such","page_number":292,"box":{"x":116,"y":474,"width":762,"height":12}},{"id":"d008066a-25d9-4ee4-a0c1-5d50e086997c","block_type":"box","text":"as reducing its greenhouse gas emissions.”","page_number":292,"box":{"x":116,"y":490,"width":323,"height":12}},{"id":"27469088-6743-4e3e-9774-a6578a77d8fb","block_type":"box","text":"27","page_number":292,"box":{"x":440,"y":490,"width":11,"height":6}},{"id":"ad593538-d7b7-4033-86f0-0146f591b20f","block_type":"box","text":"Science-based GHG emissions reduction targets","page_number":292,"box":{"x":116,"y":519,"width":389,"height":12}},{"id":"646bd363-6e0d-4d81-9ac6-f5ea0edae879","block_type":"box","text":": Targets that “…are in line with what the latest","page_number":292,"box":{"x":507,"y":519,"width":351,"height":12}},{"id":"67d31bba-ac0f-4a47-b174-2c935dd4006e","block_type":"box","text":"climate science deems necessary to meet the goals of the Paris Agreement – limiting global warming","page_number":292,"box":{"x":116,"y":534,"width":756,"height":12}},{"id":"d3fdff94-00f5-4a2f-ac18-7997adfc239d","block_type":"box","text":"to 1.5°C above pre-industrial levels. Science-based targets give companies a clearly defined path to","page_number":292,"box":{"x":116,"y":550,"width":747,"height":12}},{"id":"a30c1725-9cdb-468a-b9e0-d978cc8fc102","block_type":"box","text":"reduce GHG emissions in line with limiting global warming to 1.5°C. They define how much and how","page_number":292,"box":{"x":117,"y":565,"width":748,"height":12}},{"id":"94d0cfdf-683b-4a10-9f17-e1d83f467194","block_type":"box","text":"quickly a business must reduce its emissions to be in line with the Paris Agreement goals.”","page_number":292,"box":{"x":116,"y":581,"width":673,"height":12}},{"id":"00b12fe7-0197-4c8d-9dc9-568cce4ebc15","block_type":"box","text":"28","page_number":292,"box":{"x":790,"y":581,"width":11,"height":6}},{"id":"3f06eb20-80a1-48c9-9b07-278a184e67ce","block_type":"box","text":"Scope 1:","page_number":292,"box":{"x":116,"y":609,"width":68,"height":12}},{"id":"49b41555-cac4-4add-ae4d-16cfffba59e7","block_type":"box","text":"Direct GHG emissions.","page_number":292,"box":{"x":186,"y":609,"width":174,"height":10}},{"id":"7fc29b5a-5e11-4bd8-bfc7-60f2e7609aaf","block_type":"box","text":"Direct GHG emissions occur from sources that are owned or","page_number":292,"box":{"x":368,"y":609,"width":453,"height":10}},{"id":"5dcb925f-949e-4471-94e9-8f95882df449","block_type":"box","text":"controlled by the company, for example, emissions from combustion in owned or controlled boilers,","page_number":292,"box":{"x":116,"y":625,"width":740,"height":12}},{"id":"47470222-792d-4fef-818d-87bb64735212","block_type":"box","text":"furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process","page_number":292,"box":{"x":116,"y":640,"width":686,"height":12}},{"id":"fcb4d586-753b-4371-b702-20bf7d96dab9","block_type":"box","text":"equipment.","page_number":292,"box":{"x":116,"y":656,"width":81,"height":12}},{"id":"92d8a306-987a-4563-9790-80bd5ec0ef50","block_type":"box","text":"29","page_number":292,"box":{"x":199,"y":656,"width":12,"height":6}},{"id":"73939b75-aea1-445c-a945-c28883c64ef4","block_type":"box","text":"Scope 2:","page_number":292,"box":{"x":116,"y":685,"width":68,"height":11}},{"id":"746c7d76-6b63-4b21-a0e6-7adcc3d02837","block_type":"box","text":"Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation","page_number":292,"box":{"x":192,"y":685,"width":687,"height":12}},{"id":"2e08fadf-c7e6-4ac9-ac81-cbd94e39ec00","block_type":"box","text":"of purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as","page_number":292,"box":{"x":116,"y":700,"width":720,"height":12}},{"id":"f3518458-9b66-45a5-8fc0-7bf51f55bd41","block_type":"box","text":"electricity [steam, and heating/cooling] that is purchased or otherwise brought into the organizational","page_number":292,"box":{"x":116,"y":716,"width":744,"height":12}},{"id":"33ac5ffe-1c47-4457-8d6f-25f2476bce50","block_type":"box","text":"boundary of the company.","page_number":292,"box":{"x":117,"y":731,"width":192,"height":12}},{"id":"00f1d235-47eb-423e-ba5a-ac35014ff101","block_type":"box","text":"30","page_number":292,"box":{"x":311,"y":731,"width":11,"height":6}},{"id":"90abca30-3041-4833-826b-8bbc9976f4cb","block_type":"box","text":"27","page_number":292,"box":{"x":143,"y":756,"width":9,"height":5}},{"id":"361e6501-c7b2-4739-a124-4bb0dbd8928f","block_type":"box","text":"As defined by the International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":292,"box":{"x":170,"y":756,"width":682,"height":10}},{"id":"2d4537a5-7aee-4a6d-96eb-f1704cd79b1c","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We anticipate","page_number":292,"box":{"x":170,"y":769,"width":711,"height":10}},{"id":"65be107e-22ae-41dd-8c1a-5e6f680a293b","block_type":"box","text":"transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":292,"box":{"x":170,"y":782,"width":630,"height":10}},{"id":"310b8364-cbcd-42e6-95d0-7a8b040da488","block_type":"box","text":"28","page_number":292,"box":{"x":143,"y":797,"width":9,"height":5}},{"id":"123b2e63-16a1-4db9-8e03-e728343798c4","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that enables","page_number":292,"box":{"x":170,"y":797,"width":707,"height":10}},{"id":"e9e28879-a6d8-4e41-a05a-d0097020d480","block_type":"box","text":"companies and financial institutions worldwide to play their part in combating the climate crisis. We develop standards,","page_number":292,"box":{"x":170,"y":810,"width":702,"height":10}},{"id":"bbb5d3d7-f4a0-4c45-a584-da37197cfc3f","block_type":"box","text":"tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in line with what","page_number":292,"box":{"x":170,"y":823,"width":707,"height":10}},{"id":"16e474f8-50b6-426c-9310-4baeaf437da1","block_type":"box","text":"is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.” Source: Science","page_number":292,"box":{"x":170,"y":836,"width":675,"height":10}},{"id":"0776f0bf-fc09-42d6-aba7-0d08ed64a893","block_type":"box","text":"Based Targets initiative, “About Us.” Websites accessed in December 2025.","page_number":292,"box":{"x":171,"y":849,"width":450,"height":10}},{"id":"d9c77676-e486-4dd2-bcf4-1f3dca15e468","block_type":"box","text":"29","page_number":292,"box":{"x":143,"y":864,"width":9,"height":5}},{"id":"cf8229ca-bfc0-45f1-a80a-a9834bb3a684","block_type":"box","text":"Greenhouse Gas Protocol, “A Corporate Accounting and Reporting Standard,” Revised Edition.","page_number":292,"box":{"x":170,"y":864,"width":565,"height":10}},{"id":"9d0d4f8a-7002-4eec-83e7-6d9e660097c7","block_type":"box","text":"30","page_number":292,"box":{"x":143,"y":879,"width":9,"height":5}},{"id":"d0555eb1-e4ed-4796-8ba6-3f33c6d1c7f1","block_type":"box","text":"Greenhouse Gas Protocol, “A Corporate Accounting and Reporting Standard,” Revised Edition.","page_number":292,"box":{"x":170,"y":879,"width":565,"height":10}},{"id":"e6271243-7770-41f0-934b-ea1046ac4ded","block_type":"box","text":"BlackRock Investment Stewardship","page_number":292,"box":{"x":117,"y":909,"width":262,"height":11}},{"id":"8d59b61f-e33a-4a6e-bdbe-9a984973dc86","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines |","page_number":292,"box":{"x":481,"y":909,"width":375,"height":11}},{"id":"e5da52cf-6bc1-41b4-b92d-a9211ff11839","block_type":"box","text":"11","page_number":292,"box":{"x":867,"y":909,"width":14,"height":9}},{"id":"ffe73c1f-36bd-4110-9505-f1ee082b75a3","block_type":"box","text":"BNM1026U-6033397-19205810","page_number":292,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"d7dbba66-64e2-47e3-bcef-538ec197ff0f","block_type":"box","text":"Scope 3:","page_number":293,"box":{"x":116,"y":87,"width":74,"height":12}},{"id":"cfd2d21b-abaf-482d-a40c-1ace6f5d77d8","block_type":"box","text":"Other indirect GHG emissions. 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