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The Fund will not invest more than 5% of its net assets,","page_number":10,"box":{"x":101,"y":271,"width":781,"height":12}},{"id":"181d52e5-bae0-49ad-8083-6d1da0ee3660","block_type":"box","text":"taken at market value, in warrants, or more than 2% of its net assets, taken at market value, in warrants not listed","page_number":10,"box":{"x":68,"y":286,"width":820,"height":11}},{"id":"7f3a5ea6-baa3-4cbb-a6fa-a4599f8f1c6d","block_type":"box","text":"on the New York Stock Exchange (“NYSE”) or NYSE Alternext U.S. (formerly known as The American Stock Exchange).","page_number":10,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"a3cf5c22-0a85-4a16-bbb7-677bf1c5d140","block_type":"box","text":"Warrants acquired by the Fund in units or attached to other securities are not subject to this restriction.","page_number":10,"box":{"x":68,"y":317,"width":739,"height":11}},{"id":"ae0c573d-41dd-49de-85ab-7a9cab38969f","block_type":"box","text":"In implementing the Fund’s investment strategy, from time to time, BlackRock Advisors, LLC (“BlackRock” or the","page_number":10,"box":{"x":102,"y":339,"width":799,"height":12}},{"id":"7b32a11e-d7d1-4195-933a-6e9081eee084","block_type":"box","text":"“Manager”), the Fund’s investment manager, may consider and employ techniques and strategies designed to","page_number":10,"box":{"x":70,"y":355,"width":784,"height":11}},{"id":"fb445206-46de-416b-8ba5-948f47a3b07d","block_type":"box","text":"minimize and defer the U.S. federal income taxes which may be incurred by shareholders in connection with their","page_number":10,"box":{"x":69,"y":370,"width":805,"height":11}},{"id":"4dff9064-e791-400f-9342-e4403457b0c2","block_type":"box","text":"investment in such Fund.","page_number":10,"box":{"x":70,"y":385,"width":176,"height":9}},{"id":"8c0f96c0-fa92-4fee-85cb-dd0e1172b759","block_type":"box","text":"Set for th below is a listing of some of the types of investments and investment strategies that the Fund may","page_number":10,"box":{"x":102,"y":407,"width":774,"height":12}},{"id":"60004045-3c11-40ac-978f-a31035fca34f","block_type":"box","text":"use, and the risks and considerations associated with those investments and investment strategies. 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Only information that is clearly identified as applicable to the Fund is considered to form a","page_number":10,"box":{"x":69,"y":551,"width":822,"height":11}},{"id":"2944ba3c-19c4-40b3-bc1e-e193e124fd61","block_type":"box","text":"par t of the Fund’s SAI.","page_number":10,"box":{"x":70,"y":566,"width":158,"height":11}},{"id":"fb0f6003-da19-485f-b104-997a309b7710","block_type":"box","text":"Mid-Cap Growth Equity","page_number":10,"box":{"x":756,"y":595,"width":133,"height":9}},{"id":"5aedfee8-25de-44e1-978e-28b645a53eec","block_type":"box","text":"Asset-Backed Securities","page_number":10,"box":{"x":72,"y":614,"width":161,"height":8}},{"id":"25bd3a9c-c558-424d-88be-f7a11c0a75eb","block_type":"box","text":"Asset-Based 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The Commodity Futures Trading Commission (“CFTC”) subjects advisers to","page_number":14,"box":{"x":346,"y":711,"width":539,"height":11}},{"id":"d91dc31b-0108-44ed-b713-0e72e0f45ebd","block_type":"box","text":"registered investment companies to regulation by the CFTC if a fund that is advised by the investment adviser either","page_number":14,"box":{"x":69,"y":726,"width":828,"height":11}},{"id":"7d3177b6-97e9-434f-bb17-4b44a09008f3","block_type":"box","text":"(i) invests, directly or indirectly, more than a prescribed level of its liquidation value in CFTC-regulated futures, options","page_number":14,"box":{"x":69,"y":741,"width":837,"height":12}},{"id":"7f085116-cfc3-4203-b603-42097a163eca","block_type":"box","text":"and swaps (“CFTC Derivatives”), or (ii) markets itself as providing investment exposure to such instruments. 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Purchase securities of any one issuer (other than securities issued or guaranteed by the U.S.","page_number":15,"box":{"x":135,"y":173,"width":682,"height":11}},{"id":"0924437b-2717-4c13-80f8-da584992d4d4","block_type":"box","text":"Government, its agencies or instrumentalities or cer tificates of deposit for any such securities) if more than 5%","page_number":15,"box":{"x":102,"y":188,"width":794,"height":12}},{"id":"fbe79f58-bdd4-47ed-b5b8-42df88052b64","block_type":"box","text":"of the value of the Fund’s total assets would (taken at current value) be invested in the securities of such issuer,","page_number":15,"box":{"x":102,"y":203,"width":804,"height":11}},{"id":"bd0c6a45-1e03-450c-a00f-7577ea17dff4","block_type":"box","text":"or more than 10% of the issuer’s outstanding voting securities would be owned by the Fund or the Trust, except","page_number":15,"box":{"x":102,"y":218,"width":795,"height":12}},{"id":"6d0f3450-bd97-47cb-ab0c-5d08e88c57e5","block_type":"box","text":"that up to 25% of the value of the Fund’s total assets may (taken at current value) be invested without regard to","page_number":15,"box":{"x":101,"y":234,"width":800,"height":11}},{"id":"e12411d5-5cf1-4c5a-98d8-28e01c9b3bc3","block_type":"box","text":"these limitations. For purposes of this limitation, a security is considered to be issued by the entity (or entities)","page_number":15,"box":{"x":101,"y":249,"width":793,"height":11}},{"id":"ee577f8b-ec50-46ce-b386-27e37020f680","block_type":"box","text":"whose assets and revenues back the security. A guarantee of a security shall not be deemed to be a security","page_number":15,"box":{"x":101,"y":264,"width":779,"height":11}},{"id":"50f9dd3d-ab04-44ad-a018-747f9a5c21c1","block_type":"box","text":"issued by the guarantors when the value of all securities issued and guaranteed by the guarantor, and owned by","page_number":15,"box":{"x":102,"y":279,"width":799,"height":11}},{"id":"11bb5269-c51a-43a0-b2e5-81833aede17d","block_type":"box","text":"the Fund, does not exceed 10% of the value of the Fund’s total assets.","page_number":15,"box":{"x":101,"y":294,"width":506,"height":11}},{"id":"2f56042c-edd8-403a-a549-dc2f4c1fb9f3","block_type":"box","text":"2. Purchase any securities which would cause 25% or more of the value of the Fund’s total assets at the","page_number":15,"box":{"x":134,"y":317,"width":747,"height":11}},{"id":"c6d4c81b-f7a9-46af-a92b-aa1544e7705e","block_type":"box","text":"time of purchase to be invested in the securities of one or more issuers conducting their principal business","page_number":15,"box":{"x":101,"y":332,"width":766,"height":11}},{"id":"48a8beb2-5678-4d30-9cae-42aaee15f8a0","block_type":"box","text":"activities in the same industry, provided that (a) there is no limitation with respect to (i) instruments issued or","page_number":15,"box":{"x":102,"y":347,"width":784,"height":11}},{"id":"4b79fc1e-5bcc-4df7-9c34-adaab5cb2229","block_type":"box","text":"guaranteed by the United States and tax exempt instruments issued by any state, territory or possession of the","page_number":15,"box":{"x":101,"y":362,"width":797,"height":11}},{"id":"fa1b3928-78b8-4049-b404-7a164c64cbf6","block_type":"box","text":"United States, the District of Columbia or any of their authorities, agencies, instrumentalities or political","page_number":15,"box":{"x":102,"y":377,"width":740,"height":12}},{"id":"ccd5e75f-44b5-4210-9fbb-2396182954f0","block_type":"box","text":"subdivisions, and (ii) repurchase agreements secured by the instruments described in clause (i); (b) wholly","page_number":15,"box":{"x":102,"y":393,"width":763,"height":11}},{"id":"8044c159-c8fb-4c08-a79f-c267c8c55223","block_type":"box","text":"owned finance companies will be considered to be in the industries of their parents if their activities are primarily","page_number":15,"box":{"x":102,"y":407,"width":806,"height":12}},{"id":"28a2f59f-afa9-4acf-9573-cf434213e8be","block_type":"box","text":"related to financing the activities of the parents; and (c) utilities will be divided according to their services; for","page_number":15,"box":{"x":102,"y":423,"width":781,"height":11}},{"id":"a3765f14-36ae-4fc0-bc06-ffe38ed6d05c","block_type":"box","text":"example, gas, gas transmission, electric and gas, electric and telephone will each be considered a separate","page_number":15,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"e71e7d9d-23af-4cf9-a45c-aacf919c3c7b","block_type":"box","text":"industry.","page_number":15,"box":{"x":102,"y":453,"width":59,"height":11}},{"id":"2d39998d-3742-4a6a-9fbb-3aad732d81d3","block_type":"box","text":"3. Borrow money or issue senior securities, except that the Fund may borrow from banks and enter into","page_number":15,"box":{"x":134,"y":475,"width":738,"height":12}},{"id":"466a29c3-d881-43f1-a6b4-64210b911a63","block_type":"box","text":"reverse repurchase agreements for temporary purposes in amounts up to one-third of the value of its total","page_number":15,"box":{"x":102,"y":491,"width":757,"height":11}},{"id":"a86ca854-6c40-4ec3-8a17-4fc17f4ae1dd","block_type":"box","text":"assets at the time of such borrowing; or mor tgage, pledge or hypothecate any assets, except in connection with","page_number":15,"box":{"x":102,"y":506,"width":797,"height":11}},{"id":"d739f20d-850c-4e79-b0dc-a674d0ac3cce","block_type":"box","text":"any such borrowing and then in amounts not in excess of one-third of the value of the Fund’s total assets at the","page_number":15,"box":{"x":102,"y":521,"width":798,"height":11}},{"id":"c55580d4-7190-4ccb-86bb-bbbd6eadcd1c","block_type":"box","text":"time of such borrowing. No Fund will purchase securities while its aggregate borrowings (including reverse","page_number":15,"box":{"x":101,"y":536,"width":755,"height":11}},{"id":"3b63bed7-0a5c-4f92-9468-da923ee2324a","block_type":"box","text":"repurchase agreements and borrowings from banks) in excess of 5% of its total assets are outstanding.","page_number":15,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"94c4649f-0ae1-4358-a0cf-9b05712156ee","block_type":"box","text":"Securities held in escrow or separate accounts in connection with the Fund’s investment practices are not","page_number":15,"box":{"x":102,"y":566,"width":757,"height":11}},{"id":"fa93ee39-8e80-46ab-930b-864e210ee6c4","block_type":"box","text":"deemed to be pledged for purposes of this limitation.","page_number":15,"box":{"x":101,"y":581,"width":379,"height":12}},{"id":"29dd9136-77c3-47bd-a94a-eb9f26b39634","block_type":"box","text":"4. 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Act as an underwriter of securities within the meaning of the Securities Act of 1933, as amended, except","page_number":15,"box":{"x":134,"y":695,"width":771,"height":11}},{"id":"bcbf0dbf-e2d3-43a0-852c-7a88bd9422c0","block_type":"box","text":"to the extent that the purchase of obligations directly from the issuer thereof, or the disposition of securities, in","page_number":15,"box":{"x":101,"y":710,"width":797,"height":11}},{"id":"f830ab85-e74e-4804-ba0a-5146f042e1c0","block_type":"box","text":"accordance with the Fund’s investment objective, policies and limitations may be deemed to be underwriting.","page_number":15,"box":{"x":102,"y":725,"width":777,"height":11}},{"id":"c1b50a39-d7b4-4692-9a11-d9c5b6516017","block_type":"box","text":"7. Write or sell put options, call options, straddles, spreads, or any combination thereof, except for","page_number":15,"box":{"x":135,"y":748,"width":705,"height":11}},{"id":"59547763-8241-4327-9f6c-1da981047ce2","block_type":"box","text":"transactions in options on securities and securities indices, futures contracts and options on futures contracts.","page_number":15,"box":{"x":101,"y":763,"width":794,"height":11}},{"id":"13d77019-401b-40f8-8041-4d2735b24c21","block_type":"box","text":"8. Purchase securities of companies for the purpose of exercising control.","page_number":15,"box":{"x":134,"y":785,"width":527,"height":12}},{"id":"c5649d58-9c18-4f3b-9d71-22ce6ca1410d","block_type":"box","text":"9. Purchase securities on margin, make shor t sales of securities or maintain a shor t position, except that","page_number":15,"box":{"x":134,"y":808,"width":757,"height":11}},{"id":"bf3272f6-1b27-4058-9e62-491fb07d097d","block_type":"box","text":"(a) this investment limitation shall not apply to the Fund’s transactions in futures contracts and related options","page_number":15,"box":{"x":102,"y":823,"width":791,"height":11}},{"id":"b1f6663a-8ebd-418c-b4df-c0e7b63099a5","block_type":"box","text":"or the Fund’s sale of securities shor t against the box, and (b) the Fund may obtain shor t-term credit as may be","page_number":15,"box":{"x":102,"y":838,"width":790,"height":12}},{"id":"e1ec1533-5e51-4314-bc6e-a942478be078","block_type":"box","text":"necessary for the clearance of purchases and sales of por tfolio securities.","page_number":15,"box":{"x":102,"y":853,"width":531,"height":12}},{"id":"62f810d4-9a35-4c43-aa88-bf4ac43191c6","block_type":"box","text":"10. Purchase or sell commodity contracts, or invest in oil, gas or mineral exploration or development","page_number":15,"box":{"x":135,"y":876,"width":716,"height":11}},{"id":"f80d33ae-7158-4edd-a7a1-b9f575a0438b","block_type":"box","text":"programs, except that the Fund may, to the extent appropriate to its investment policies, purchase securities of","page_number":15,"box":{"x":102,"y":891,"width":795,"height":12}},{"id":"9fcb5aab-1ad6-4393-937c-7edcdf0963ef","block_type":"box","text":"companies engaging in whole or in par t in such and may enter into futures contracts and related options.","page_number":15,"box":{"x":101,"y":906,"width":749,"height":12}},{"id":"b3c9b796-09a4-48c8-9c63-f40cf57f5dc9","block_type":"box","text":"I-6","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"acaff4ea-99fb-4911-bda9-fec17448856c","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":15,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"cc6384e2-b3ef-4c6f-b055-9af346c31744","block_type":"box","text":"11. Make loans, except that the Fund may purchase and hold debt instruments and enter into repurchase","page_number":16,"box":{"x":135,"y":45,"width":754,"height":11}},{"id":"295a092d-dfc6-4644-bea5-04f9bb1b0a85","block_type":"box","text":"agreements in accordance with its investment objective and policies and may lend por tfolio securities.","page_number":16,"box":{"x":102,"y":60,"width":729,"height":11}},{"id":"83cfe4dc-6acc-46af-95ab-501bbd0ca0ba","block_type":"box","text":"12. Purchase or sell commodities except that the Fund may, to the extent appropriate to its investment","page_number":16,"box":{"x":135,"y":83,"width":735,"height":11}},{"id":"3bacbc10-26da-4158-8c86-3ee925b60e88","block_type":"box","text":"policies, purchase securities of companies engaging in whole or in par t in such activities, may engage in","page_number":16,"box":{"x":102,"y":98,"width":744,"height":11}},{"id":"be269ed1-51bb-48a3-88f7-0ab24ca02531","block_type":"box","text":"currency transactions and may enter into futures contracts and related options.","page_number":16,"box":{"x":101,"y":113,"width":565,"height":11}},{"id":"acf99204-c2be-47ad-832c-04e77a8d59f2","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":16,"box":{"x":102,"y":136,"width":494,"height":11}},{"id":"4c347e16-a78c-42e6-b26d-709eba3cd972","block_type":"box","text":"The following notations are not considered to be par t of the Fund’s fundamental investment restrictions and are","page_number":16,"box":{"x":101,"y":158,"width":799,"height":11}},{"id":"be396815-9548-4d59-b0b1-572afe62b169","block_type":"box","text":"subject to change without shareholder approval.","page_number":16,"box":{"x":69,"y":173,"width":341,"height":11}},{"id":"8ae655a5-45dd-494a-a66c-dfc252ff82b0","block_type":"box","text":"With respect to the fundamental policy relating to issuing senior securities above, the Investment Company Act,","page_number":16,"box":{"x":101,"y":196,"width":795,"height":11}},{"id":"5bf6e865-7a20-4977-8a85-782b5f28ce76","block_type":"box","text":"including the rules and regulations thereunder, generally prohibits the Fund from issuing senior securities (other than","page_number":16,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"e876e1aa-73d6-4bd6-a1bb-71572a63cf9a","block_type":"box","text":"cer tain temporary borrowings) unless immediately after the issuance the Fund has satisfied an asset coverage","page_number":16,"box":{"x":69,"y":226,"width":790,"height":11}},{"id":"538b36db-3fab-4529-8718-bac31d18a578","block_type":"box","text":"requirement with respect to senior securities representing indebtedness prescribed by the Investment Company Act.","page_number":16,"box":{"x":69,"y":241,"width":828,"height":11}},{"id":"8fea72fd-4b50-40b5-a55a-5ab18e0800a5","block_type":"box","text":"Cer tain trading practices and investments, such as derivatives transactions, may be treated as senior securities.","page_number":16,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"930c88ed-a279-4cdf-ac74-bbb3d24a2a2b","block_type":"box","text":"Prior to the adoption and implementation of Rule 18f-4 under the Investment Company Act, when the Fund/Por tfolio","page_number":16,"box":{"x":69,"y":271,"width":826,"height":12}},{"id":"ce8dca5f-7562-41b7-a9b1-5a91020b8f98","block_type":"box","text":"engaged in a derivatives transaction that creates future payment obligations, consistent with SEC staff guidance and","page_number":16,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"7747f1e8-ac76-4c62-8dbf-9dc9a9b00f0b","block_type":"box","text":"interpretations, the Fund was permitted to segregate or earmark liquid assets, or enter into an offsetting position, in","page_number":16,"box":{"x":70,"y":302,"width":830,"height":11}},{"id":"457a1165-aa7a-404c-8e69-8dd9c80d8cb5","block_type":"box","text":"an amount at least equal to the Fund’s exposure, on a mark-to-market basis, to the transaction, instead of meeting","page_number":16,"box":{"x":69,"y":317,"width":823,"height":11}},{"id":"17f40193-93e0-4068-b8d9-83b8a932a98a","block_type":"box","text":"the asset coverage requirement with respect to senior securities prescribed by the Investment Company Act. The SEC","page_number":16,"box":{"x":68,"y":332,"width":840,"height":11}},{"id":"ddca6f6b-f3eb-4af4-b137-ad9dcb67ec96","block_type":"box","text":"staff guidance and interpretations were rescinded in connection with the adoption of Rule 18f-4, and the Fund now","page_number":16,"box":{"x":69,"y":347,"width":817,"height":11}},{"id":"72f20ed0-4bee-4475-8d73-63c54c4d34c9","block_type":"box","text":"complies with Rule 18f-4 with respect to its derivatives transactions. Thus, the fundamental policy relating to issuing","page_number":16,"box":{"x":69,"y":362,"width":831,"height":11}},{"id":"6c77caea-c0e7-4e1a-9fa9-268994a68c6a","block_type":"box","text":"senior securities above will not restrict the Fund from entering into derivatives transactions that are treated as senior","page_number":16,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"8e514c21-98f0-4890-82b6-cd91389e71bb","block_type":"box","text":"securities so long as the Fund complies with Rule 18f-4 with respect to such derivatives transactions.","page_number":16,"box":{"x":69,"y":392,"width":724,"height":12}},{"id":"53054f8b-f173-43b7-9d64-b03e01df5d1e","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":16,"box":{"x":101,"y":415,"width":781,"height":11}},{"id":"92768ffc-5554-4e4c-a0c8-439eb563d063","block_type":"box","text":"sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined","page_number":16,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"5bc87b8f-c67c-4d1a-9d9c-ec6deadc7043","block_type":"box","text":"by Fund management. The policy also will be interpreted to give broad authority to the Fund as to how to classify","page_number":16,"box":{"x":69,"y":445,"width":801,"height":12}},{"id":"6a06aca1-5679-452e-898d-5476341df0be","block_type":"box","text":"issuers within or among industries.","page_number":16,"box":{"x":70,"y":461,"width":247,"height":11}},{"id":"c0d87270-0cd1-45a0-b02b-9450aa94ba9e","block_type":"box","text":"While cer tain swaps are now considered commodity interests for purposes of the Commodity Exchange Act and","page_number":16,"box":{"x":101,"y":483,"width":793,"height":11}},{"id":"8ffb4590-5aa6-4b06-bece-2560b9ff2cb8","block_type":"box","text":"the rules thereunder, at the time of the Fund’s adoption of fundamental investment restrictions no. 7, 10 and 12","page_number":16,"box":{"x":68,"y":498,"width":806,"height":11}},{"id":"b100c67e-550c-4d95-b799-878b0f878e66","block_type":"box","text":"above, many swaps were treated as securities for purposes of the Fund’s compliance with applicable law.","page_number":16,"box":{"x":69,"y":513,"width":752,"height":11}},{"id":"c4716646-01a5-4f8c-aae3-a83159b23b3e","block_type":"box","text":"Accordingly, fundamental investment restriction no. 7, which does not restrict transactions in options on securities","page_number":16,"box":{"x":68,"y":528,"width":817,"height":12}},{"id":"b0f1767d-ba1b-4cda-a24e-3aed4df99d6e","block_type":"box","text":"and securities indices, and fundamental restrictions no. 10 and 12 are being interpreted to permit the Fund to","page_number":16,"box":{"x":69,"y":543,"width":787,"height":12}},{"id":"b4461d36-849b-4fac-87e3-05a6880f93b4","block_type":"box","text":"engage in transactions in swaps and options on swaps, as applicable, related to financial instruments, such as","page_number":16,"box":{"x":69,"y":559,"width":794,"height":11}},{"id":"7f7e4615-821b-4c19-af57-0ca55d8c941f","block_type":"box","text":"securities, securities indices and currencies, but not to engage in transactions in swaps or options on swaps related","page_number":16,"box":{"x":69,"y":574,"width":831,"height":11}},{"id":"9e3bedf6-f635-471a-b3bb-287b1631a137","block_type":"box","text":"to physical commodities, such as oil or metals.","page_number":16,"box":{"x":68,"y":589,"width":336,"height":11}},{"id":"36984502-fc7f-4c1a-ad6d-eb79498c477c","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":16,"box":{"x":102,"y":612,"width":768,"height":11}},{"id":"3670e16a-7d32-4c90-bab7-6cf53345ca25","block_type":"box","text":"approval, the Fund may not:","page_number":16,"box":{"x":69,"y":627,"width":197,"height":11}},{"id":"c8d880cf-9293-4def-814b-f1e604157e05","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":16,"box":{"x":102,"y":649,"width":747,"height":12}},{"id":"77cdedca-a83c-458e-bd66-7f291c663c15","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":16,"box":{"x":69,"y":664,"width":759,"height":12}},{"id":"601a6928-126b-4444-b438-e3071ed2a7fe","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":16,"box":{"x":70,"y":680,"width":829,"height":11}},{"id":"22be8362-8026-4bcc-91d1-e1c6a5352fd0","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by","page_number":16,"box":{"x":70,"y":695,"width":808,"height":11}},{"id":"349879a5-2933-46a6-9d1f-26aade174ff0","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":16,"box":{"x":69,"y":710,"width":763,"height":11}},{"id":"76e7ee12-fa74-4fe2-8944-9b976bd608f9","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":16,"box":{"x":102,"y":733,"width":771,"height":10}},{"id":"49f497c0-ecef-47e0-a557-3c861c772aea","block_type":"box","text":"Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions apply only at","page_number":16,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"626b2773-ff6b-4035-8c3a-d1fbf3f249f3","block_type":"box","text":"the time that a transaction is under taken. Any change in the percentage of the Fund’s assets invested in cer tain","page_number":16,"box":{"x":68,"y":763,"width":803,"height":11}},{"id":"38f30a9b-3ad0-441c-9ac7-3eec7bcea9b1","block_type":"box","text":"securities or other instruments resulting from market fluctuations or other changes in the Fund’s total assets will not","page_number":16,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"3054934b-0326-4830-99d0-90f9543981df","block_type":"box","text":"require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell or close out the","page_number":16,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"406fb22b-63bb-4481-ae81-2aff9716e4a3","block_type":"box","text":"investment without undue market or tax consequences.","page_number":16,"box":{"x":70,"y":808,"width":393,"height":11}},{"id":"a3054740-4ed2-47ca-a6c7-7ac09b66dd31","block_type":"box","text":"III. Information on Trustees and Officers","page_number":16,"box":{"x":69,"y":838,"width":290,"height":9}},{"id":"5398ea83-b10c-49f7-8775-e75c787ee912","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thir teen of whom are not “interested persons” of","page_number":16,"box":{"x":101,"y":861,"width":788,"height":11}},{"id":"512e8480-624e-4fae-b2be-ff5fa02f92ac","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":16,"box":{"x":68,"y":876,"width":779,"height":11}},{"id":"91b02ce5-dcc5-4222-b653-77409d38275b","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":16,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"d5147245-1627-4cf4-95cd-91c2eb6a3eef","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":16,"box":{"x":70,"y":906,"width":793,"height":11}},{"id":"5213dc4b-6296-4371-bfc8-c4bced3d8263","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"f630d27a-523a-4bf5-9f22-5a1c87b3d865","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":16,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"ff430f20-d134-407f-9de1-ea912d4ecdd7","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":17,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"fd69ca6c-1d05-48e5-8541-d54922ae387f","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":17,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"d9286a68-2a2b-4b63-92b4-004dc8c6cbab","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":17,"box":{"x":70,"y":75,"width":335,"height":11}},{"id":"05fd2297-5f06-4ce2-9f17-bf3a6d4aefa8","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board is an","page_number":17,"box":{"x":101,"y":98,"width":769,"height":11}},{"id":"dbdd08f2-6c63-4d3b-845d-b367660bc8ba","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":17,"box":{"x":70,"y":113,"width":827,"height":11}},{"id":"12f4375a-45f0-4829-ba64-395b6cda85f2","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":17,"box":{"x":70,"y":128,"width":821,"height":11}},{"id":"ed7a8136-1b3c-48b9-b7b9-2688ee6ab3b7","block_type":"box","text":"Committee, a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":17,"box":{"x":69,"y":143,"width":835,"height":11}},{"id":"6e8e0b82-31a5-4ef0-955c-eb54298b7d8d","block_type":"box","text":"is to preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":17,"box":{"x":70,"y":158,"width":830,"height":11}},{"id":"527faa6f-d906-40c0-9441-26b51d7c8338","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":17,"box":{"x":68,"y":173,"width":789,"height":11}},{"id":"e9b76d31-0181-4a4b-8d69-867cc4db5fa4","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions as may be","page_number":17,"box":{"x":69,"y":188,"width":810,"height":11}},{"id":"408c2d11-92ac-4f4f-b4e6-b92023ccbfac","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":17,"box":{"x":69,"y":203,"width":809,"height":12}},{"id":"ff9be5e3-db90-4c0e-a79f-c6b3c6a7f54e","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":17,"box":{"x":70,"y":218,"width":794,"height":12}},{"id":"da7e2c28-2c7f-4a76-829e-dd9ca95c17b8","block_type":"box","text":"regular meetings five times a year, and may hold special meetings if required before its next regular meeting. Each","page_number":17,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"66018980-b379-4ab1-91a0-ac42de78265b","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":17,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"223dea8a-fc6f-4eeb-8840-5a777009a2dc","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":17,"box":{"x":70,"y":264,"width":811,"height":11}},{"id":"e22c1bf3-e364-460a-bd1a-6cbcbaa0b4ad","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":17,"box":{"x":68,"y":279,"width":809,"height":11}},{"id":"332b2aa8-da34-4c87-96a7-b14a8ea193de","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":17,"box":{"x":69,"y":294,"width":825,"height":11}},{"id":"edcfcb6a-f535-4dbb-a0eb-783fc7441a2d","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":17,"box":{"x":69,"y":309,"width":441,"height":11}},{"id":"8957e886-9d99-4e30-bcd4-a72304d8c376","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":17,"box":{"x":101,"y":332,"width":777,"height":11}},{"id":"2a6d43a4-4d84-490a-9974-9a7efc5ff62f","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":17,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"719946ce-70af-41f2-9b40-74267f02e9c7","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s char ter, and the Fund’s","page_number":17,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"aa53eaec-a93c-449f-bbb0-568d8e5fae87","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":17,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"2ea0f6cb-3e8a-4e2f-acc1-996c1462fd87","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":17,"box":{"x":69,"y":392,"width":819,"height":12}},{"id":"62f3527d-0216-4500-9f5c-86efa3430306","block_type":"box","text":"the operations of the Fund.","page_number":17,"box":{"x":68,"y":407,"width":192,"height":11}},{"id":"04530a8a-5b1e-4a3a-8846-866fe1611635","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager or of sub-advisers or","page_number":17,"box":{"x":102,"y":430,"width":785,"height":11}},{"id":"d7594289-24dc-4752-95a2-b5deb6e72649","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":17,"box":{"x":69,"y":445,"width":828,"height":12}},{"id":"8720a840-4ddc-4bba-b2b8-d8d80b2d8c9e","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":17,"box":{"x":69,"y":460,"width":832,"height":12}},{"id":"0beb9fa5-7cff-4d96-8c5d-689434708c3a","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":17,"box":{"x":68,"y":475,"width":820,"height":12}},{"id":"75bd6ecd-53c8-4d55-b5dd-b4c3310323f0","block_type":"box","text":"providers, as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight forms","page_number":17,"box":{"x":70,"y":491,"width":811,"height":11}},{"id":"61b726b1-ca95-4e26-b910-7fe09b96580c","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":17,"box":{"x":70,"y":506,"width":767,"height":11}},{"id":"a5ee4cec-e7dc-4bd8-b0ef-d31a539912cd","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":17,"box":{"x":69,"y":521,"width":815,"height":11}},{"id":"f25bb1e5-9d5d-4180-b512-2c8ca91fd009","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":17,"box":{"x":70,"y":536,"width":803,"height":11}},{"id":"80bd45bc-af91-4c89-b8e2-38b966f1bc0c","block_type":"box","text":"adviser or its affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s","page_number":17,"box":{"x":69,"y":551,"width":840,"height":11}},{"id":"275260f7-44ee-43c5-9e77-b461e658e158","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":17,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"9659f901-16ab-45e9-b085-b6fa6a8f0aa2","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":17,"box":{"x":69,"y":581,"width":817,"height":12}},{"id":"106ddb13-1811-4068-9334-01dac0bc2198","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":17,"box":{"x":69,"y":596,"width":812,"height":11}},{"id":"7be528af-1dd7-4cea-839b-d0ef986f7038","block_type":"box","text":"testing of the Trust’s compliance program and repor ts to the Board regarding compliance matters for the Fund and","page_number":17,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"ff425928-66a9-427e-94d6-c8d950017932","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":17,"box":{"x":70,"y":627,"width":759,"height":11}},{"id":"a88b8d58-7d59-4653-bf2a-1af665181ecd","block_type":"box","text":"per forming their oversight responsibilities.","page_number":17,"box":{"x":70,"y":642,"width":299,"height":11}},{"id":"bb6b4017-a19e-401a-a824-fcb5f4d694a4","block_type":"box","text":"Audit Committee.","page_number":17,"box":{"x":101,"y":665,"width":122,"height":8}},{"id":"8cfe37cb-af3b-4fbb-afab-717b74fb51f6","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":17,"box":{"x":229,"y":664,"width":673,"height":12}},{"id":"29c73de4-74a9-4029-a05f-e93550aaf160","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees.","page_number":17,"box":{"x":68,"y":680,"width":831,"height":11}},{"id":"9b31ea0d-da1c-460b-a31b-ce2e22d06dec","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":17,"box":{"x":68,"y":695,"width":820,"height":11}},{"id":"c9944b41-2ab6-41a6-ba8e-2cad1c2ead43","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":17,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"3539c390-917f-45cc-b30a-366c5a0c8cca","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"61478aea-11be-4185-a015-3b674fe2c0e6","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":17,"box":{"x":70,"y":740,"width":825,"height":11}},{"id":"378f1fd8-12f3-4ae8-a6ea-ced05c659283","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":17,"box":{"x":70,"y":755,"width":807,"height":11}},{"id":"4063e990-4ea3-41bc-9193-71ee22aa6cf0","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":17,"box":{"x":68,"y":770,"width":781,"height":11}},{"id":"13dd2ff2-a7f9-4a57-b194-706ec4cb6eca","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":17,"box":{"x":69,"y":786,"width":834,"height":11}},{"id":"d8df3ffc-fdd3-4cff-9a7b-de243219be2d","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":17,"box":{"x":69,"y":801,"width":838,"height":11}},{"id":"bb8d48a6-b193-4440-b33e-07b89f006a78","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":816,"width":825,"height":11}},{"id":"4d67cddd-bc72-46ca-940e-c86693386d88","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":17,"box":{"x":70,"y":831,"width":809,"height":11}},{"id":"3ea98335-36b4-4895-b81e-8fba67660aa6","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":17,"box":{"x":70,"y":846,"width":815,"height":11}},{"id":"33d8986f-372e-4534-9835-10b20c1581af","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":17,"box":{"x":69,"y":861,"width":774,"height":11}},{"id":"75b05680-839b-45de-821e-12c2188222c8","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":17,"box":{"x":69,"y":876,"width":815,"height":11}},{"id":"38739ffd-52c4-4878-a83c-a27ffee4e533","block_type":"box","text":"regarding financial repor ting; and (9) under take such other duties and responsibilities as may from time to time be","page_number":17,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"2941878b-dbcd-4f4f-a311-e2a2497ca5e2","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"aec7acdf-edd9-46d7-b0e7-021c3258c953","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":17,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"ece72f0e-23cc-4dba-8651-a799813a9766","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":18,"box":{"x":69,"y":45,"width":812,"height":11}},{"id":"7e9a57c4-eca2-4ae4-a7e2-719a800a8a31","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":18,"box":{"x":70,"y":60,"width":574,"height":11}},{"id":"17c6a701-6b14-4aec-a75e-47d624a228ce","block_type":"box","text":"Governance and Nominating Committee.","page_number":18,"box":{"x":102,"y":83,"width":286,"height":11}},{"id":"76b6e6a4-7d0c-4eb6-97bc-857f4458cc81","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":18,"box":{"x":394,"y":82,"width":464,"height":12}},{"id":"0e044b45-b0c1-4fc5-af61-c0a536162ba6","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":18,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"2bff2a37-e4e4-431a-a1b7-7664f74daad6","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":18,"box":{"x":70,"y":113,"width":784,"height":11}},{"id":"03dfbad3-edbf-4c4c-a075-d1d0cc5803cf","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":18,"box":{"x":69,"y":128,"width":803,"height":11}},{"id":"0dbee802-0f2d-4e49-8db0-b6ab80fc38e9","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":18,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"f0e207a2-ade7-4cf4-8d06-0e30738a65db","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":18,"box":{"x":70,"y":158,"width":828,"height":11}},{"id":"f9cff0d6-ec57-49cf-b4ee-fa606ac0450c","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":18,"box":{"x":70,"y":173,"width":809,"height":11}},{"id":"7b79d5af-9bcc-4b8d-9685-afde59429662","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":18,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"d6e6555f-8586-468f-b105-499676bc3477","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":18,"box":{"x":69,"y":203,"width":800,"height":11}},{"id":"d44985af-0e9c-4f34-afdf-15d2f3e389fe","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":18,"box":{"x":70,"y":218,"width":813,"height":12}},{"id":"c59d1d12-5980-4aaa-987e-8d29afd59c04","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from","page_number":18,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"7d7a2e8d-4352-4ed7-96eb-21ce0367324d","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":18,"box":{"x":68,"y":249,"width":804,"height":11}},{"id":"c2dd87bf-f948-45b4-b666-fea208cd233e","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Amended and","page_number":18,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"ed3c56d3-15ee-4929-9858-f046ebfda0a3","block_type":"box","text":"Restated Code of Regulations (“Bylaws”), shareholders must follow cer tain procedures to nominate a person for","page_number":18,"box":{"x":70,"y":279,"width":801,"height":11}},{"id":"a4b8fc24-cc1b-46eb-bbd4-d3bd0a92fe81","block_type":"box","text":"election as a Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice","page_number":18,"box":{"x":69,"y":294,"width":799,"height":11}},{"id":"2ae290d8-0673-4654-a8c5-1a472eb5485d","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Trust must be delivered to or mailed and","page_number":18,"box":{"x":70,"y":309,"width":776,"height":11}},{"id":"db4f1717-d17b-42c1-8d3a-f3ceccc911c2","block_type":"box","text":"received at the principal executive offices of the Trust not later than the close of business on the fifth day following","page_number":18,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"4d46ab2e-aa16-4d42-b7a5-a5bf2d7f0875","block_type":"box","text":"the day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was","page_number":18,"box":{"x":68,"y":339,"width":812,"height":12}},{"id":"107d45c3-f7b2-4c83-95d6-f00890e86519","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain","page_number":18,"box":{"x":69,"y":355,"width":823,"height":11}},{"id":"c30b2f91-ad19-475f-9efd-c2d57e796e60","block_type":"box","text":"information about the shareholder and the nominee, as well as cer tain other information, including a written consent","page_number":18,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"3ef2987a-665a-43b8-a773-b1e8bca2cd91","block_type":"box","text":"of the proposed nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board","page_number":18,"box":{"x":69,"y":385,"width":811,"height":11}},{"id":"3dab69d4-00e7-4d72-b821-94ea51bfab40","block_type":"box","text":"has adopted a written char ter for the Governance Committee. During the fiscal year ended May 31, 2026, the","page_number":18,"box":{"x":69,"y":400,"width":783,"height":11}},{"id":"96c42deb-e3b9-44cf-9ad7-1019768cc9c0","block_type":"box","text":"Governance Committee met ten times.","page_number":18,"box":{"x":69,"y":415,"width":274,"height":9}},{"id":"aaded524-21c7-4008-96f1-87bc62bbb692","block_type":"box","text":"Compliance Committee.","page_number":18,"box":{"x":102,"y":438,"width":168,"height":11}},{"id":"131c242c-5f72-4c4d-a948-9f6233e947c4","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":18,"box":{"x":276,"y":438,"width":629,"height":11}},{"id":"ae3a5604-22eb-47bb-b5a4-f276c525c131","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":18,"box":{"x":68,"y":453,"width":828,"height":11}},{"id":"29bf3db8-5004-4d66-94b5-eabcc82287e7","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":18,"box":{"x":68,"y":468,"width":771,"height":11}},{"id":"a91e2356-c880-448c-a81f-d3edb2dcb1bf","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of","page_number":18,"box":{"x":69,"y":483,"width":835,"height":11}},{"id":"52a444f4-e07e-412e-a17a-3ea8b6041aea","block_type":"box","text":"BlackRock and any sub-adviser and the Fund’s third-par ty service providers. The Compliance Committee’s","page_number":18,"box":{"x":70,"y":498,"width":753,"height":11}},{"id":"a7a7980c-421c-4a3d-9c66-3f150fd0dcd0","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":18,"box":{"x":69,"y":513,"width":834,"height":11}},{"id":"c8294111-39af-442d-ad84-b1cb170d2176","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":18,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"106e6827-70fe-4edf-947d-9d934880a7bb","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":18,"box":{"x":69,"y":544,"width":785,"height":11}},{"id":"1dc7b22f-d8b3-486d-8e69-e3e0bf4e91b5","block_type":"box","text":"repor ts from, oversee the annual per formance review of, and make cer tain recommendations and determinations","page_number":18,"box":{"x":69,"y":559,"width":811,"height":11}},{"id":"b255a332-bfc6-4080-810e-9410a862dcdf","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":18,"box":{"x":69,"y":574,"width":812,"height":11}},{"id":"b77602ca-2718-4d51-a9e0-3d4c1247656f","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":18,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"794e5008-ac1b-48cb-bcf2-e479824f3e1d","block_type":"box","text":"and (4) under take such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":18,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"37d1279b-01de-4b7e-979c-3b975fea071d","block_type":"box","text":"Compliance Committee. The Board has adopted a written char ter for the Compliance Committee. During the fiscal","page_number":18,"box":{"x":69,"y":619,"width":811,"height":11}},{"id":"caa496b1-f77b-4dd0-86e4-ad6c27933976","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met four times.","page_number":18,"box":{"x":68,"y":634,"width":502,"height":11}},{"id":"31643761-347b-4eb6-9765-18d1f2926061","block_type":"box","text":"Per formance Oversight Committee.","page_number":18,"box":{"x":102,"y":657,"width":248,"height":11}},{"id":"847b0f8f-55ba-4ccc-a5ea-d48ecea119d2","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":18,"box":{"x":356,"y":657,"width":531,"height":11}},{"id":"ce3d55e9-9632-420c-9cf7-719ea1c6d493","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":18,"box":{"x":69,"y":672,"width":829,"height":11}},{"id":"ca872d4f-a666-411a-84b4-9c4f6b730afd","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is","page_number":18,"box":{"x":69,"y":687,"width":830,"height":11}},{"id":"de5c94ad-ebda-49b9-8d90-69763f7c6976","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":18,"box":{"x":68,"y":702,"width":832,"height":12}},{"id":"12c3a186-bf80-4f08-aec1-ac8e77379f2d","block_type":"box","text":"upon per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":18,"box":{"x":69,"y":717,"width":816,"height":12}},{"id":"d2d4ae69-b3d3-4b7d-875d-965bdc67dcb8","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":18,"box":{"x":69,"y":732,"width":782,"height":12}},{"id":"3bfa7b00-8f51-42a1-9390-46be836b43d2","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":18,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"e85a3695-b336-4853-9f4f-711b36f9e836","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":18,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"a01f3e0d-be79-4668-9f00-cca02fc78bdf","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":18,"box":{"x":69,"y":778,"width":803,"height":11}},{"id":"bb8ecdfa-6754-4465-a35b-c5a95c589063","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":18,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"04fd35f6-e264-46ae-bd56-106d1d36c597","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":18,"box":{"x":68,"y":808,"width":811,"height":11}},{"id":"25139781-e27d-4717-9732-67c28e1f9936","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":18,"box":{"x":69,"y":823,"width":757,"height":12}},{"id":"cf3e3b2b-79b5-4fc3-8742-f1ed87b6cbf6","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":18,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"f35b5845-aee0-41c4-b766-efe1416291c4","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":18,"box":{"x":68,"y":853,"width":800,"height":12}},{"id":"556a0dfe-e8e7-4cc7-b16c-84c13bd06c3e","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Per formance Oversight","page_number":18,"box":{"x":69,"y":869,"width":780,"height":11}},{"id":"b2932372-4b7a-4e0a-8440-f17c063ceb3b","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the fiscal year","page_number":18,"box":{"x":69,"y":884,"width":838,"height":11}},{"id":"aabf06a9-3ead-4837-ab77-8c80cf62ce5e","block_type":"box","text":"ended May 31, 2026, the Per formance Oversight Committee met five times.","page_number":18,"box":{"x":69,"y":899,"width":544,"height":11}},{"id":"16d12cfc-9476-4c78-b32f-97ba63be876d","block_type":"box","text":"I-9","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"8a004cbe-b694-48c9-a2fb-8e73a60beaa1","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":18,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"884f43b8-0811-47b3-aaef-a93ff062cb2a","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":19,"box":{"x":101,"y":45,"width":186,"height":11}},{"id":"9b137246-b10b-434f-a55b-1f6332f99ffc","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":19,"box":{"x":293,"y":45,"width":598,"height":11}},{"id":"9333cd78-273a-4a33-a4a8-c9a349915076","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":19,"box":{"x":70,"y":60,"width":817,"height":11}},{"id":"820539a5-89cc-4dde-abac-7cf9480b5038","block_type":"box","text":"serves as an interested Trustee. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":19,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"6c9981af-28d1-44b3-8baa-040df84879db","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":19,"box":{"x":69,"y":90,"width":788,"height":11}},{"id":"6c2305ec-f808-4ec2-bfeb-a0bad9b3a4b4","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":19,"box":{"x":69,"y":105,"width":813,"height":11}},{"id":"6b31ccc1-5399-41cb-9386-444f0fd54875","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":19,"box":{"x":68,"y":120,"width":816,"height":12}},{"id":"08d77718-27ac-4054-a6fb-a343a1129639","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":19,"box":{"x":68,"y":135,"width":575,"height":11}},{"id":"7c98c20d-633a-4b77-a7af-fa6638e645d7","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":19,"box":{"x":101,"y":158,"width":771,"height":11}},{"id":"60ac7e43-d4fd-436c-a85e-9df57710d227","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":19,"box":{"x":69,"y":173,"width":827,"height":11}},{"id":"209a42b4-dea8-47ad-95c6-7d326c75d86a","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":19,"box":{"x":69,"y":188,"width":830,"height":11}},{"id":"367f8565-c8e1-41e0-82eb-6d0456d9ba57","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":19,"box":{"x":69,"y":203,"width":825,"height":12}},{"id":"0dd3a1db-d207-441e-aa4c-32310e2f6241","block_type":"box","text":"in determining that a par ticular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":19,"box":{"x":70,"y":218,"width":807,"height":12}},{"id":"6675ad3f-ff91-4ede-9c2b-03a954cfda4b","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":19,"box":{"x":70,"y":234,"width":787,"height":11}},{"id":"99a9fc6f-89b5-413e-b402-27d7a9b4105e","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":19,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"3c9d6ef3-0b6c-4b14-a9c5-6ecf0081d769","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":19,"box":{"x":68,"y":264,"width":794,"height":11}},{"id":"e5389256-f938-4cf4-ae31-cf34975fbe19","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":19,"box":{"x":68,"y":279,"width":829,"height":11}},{"id":"e9aff950-4a15-4794-9438-6d42e7910c0f","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":19,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"523d698b-e4fc-40f0-ad4c-bd47b2fd7553","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":19,"box":{"x":69,"y":309,"width":771,"height":11}},{"id":"0055db96-9c5b-49d3-877c-dc5509ddd324","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":19,"box":{"x":69,"y":324,"width":473,"height":12}},{"id":"d0585ca4-4196-4375-b944-4ed244350efe","block_type":"box","text":"Each Trustee’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":19,"box":{"x":102,"y":347,"width":792,"height":11}},{"id":"1d1ded1e-b044-4e65-aed1-a346e72c1463","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":19,"box":{"x":69,"y":362,"width":807,"height":11}},{"id":"dc6d51f9-d5df-4937-8ecf-85ca1ac21e52","block_type":"box","text":"board member of the Trust and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":19,"box":{"x":69,"y":377,"width":837,"height":11}},{"id":"06d65060-bde5-4abe-896b-217186f73ce3","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":19,"box":{"x":70,"y":392,"width":759,"height":12}},{"id":"bf0e110e-ed9f-4546-9212-6428c16f3f27","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":19,"box":{"x":70,"y":407,"width":685,"height":12}},{"id":"636b62b3-f99b-4779-b7a3-468eb02b7062","block_type":"box","text":"ad hoc","page_number":19,"box":{"x":762,"y":408,"width":47,"height":8}},{"id":"f21799c3-2cef-4b89-9d7f-56d6585b9125","block_type":"box","text":"committees","page_number":19,"box":{"x":814,"y":408,"width":82,"height":8}},{"id":"9b29f6f4-d475-49c4-8d6b-d5d7bc4dcb30","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":19,"box":{"x":68,"y":423,"width":395,"height":11}},{"id":"cd80e5cd-3f2d-4488-b765-5617f700d3ad","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":19,"box":{"x":101,"y":445,"width":751,"height":11}},{"id":"60669449-3b18-48d5-b8fb-a10bd19a7467","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":19,"box":{"x":69,"y":461,"width":492,"height":10}},{"id":"79eba0ca-a443-4a01-b3a9-70d87305b413","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":19,"box":{"x":68,"y":489,"width":409,"height":8}},{"id":"641a4251-e24c-46cf-ba82-0c2e24535d5b","block_type":"box","text":"Independent Trustees","page_number":19,"box":{"x":70,"y":505,"width":154,"height":11}},{"id":"2d9b0f9e-1cd3-4320-a0f4-49fb8ad44ffc","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":19,"box":{"x":69,"y":520,"width":781,"height":11}},{"id":"59fac130-64ed-4cda-bf7a-176b19ec8150","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":19,"box":{"x":265,"y":535,"width":604,"height":12}},{"id":"bbcba60c-b1e9-42da-a081-2211d7454b82","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":19,"box":{"x":265,"y":550,"width":623,"height":12}},{"id":"40b82fb0-36c9-4bac-add0-7c7133a47365","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":19,"box":{"x":265,"y":566,"width":637,"height":11}},{"id":"c09fdb15-83fd-4f53-823d-3cca605446d7","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":19,"box":{"x":265,"y":581,"width":631,"height":11}},{"id":"9e00b6ee-c329-4da1-bb5d-9801c4d98e8e","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":19,"box":{"x":264,"y":596,"width":626,"height":10}},{"id":"6390acae-3987-4ac4-9080-2d8f13734a60","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":19,"box":{"x":265,"y":611,"width":639,"height":11}},{"id":"b2891115-dee2-4572-842f-0cf3c370808b","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":19,"box":{"x":264,"y":626,"width":637,"height":11}},{"id":"3d6a1c41-141d-418b-ba68-08e64e7b5f19","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":19,"box":{"x":265,"y":641,"width":586,"height":11}},{"id":"e5911622-908d-4604-83c8-ba406cac3323","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":19,"box":{"x":265,"y":656,"width":640,"height":11}},{"id":"dbcea01e-28be-4712-b6b0-71efe15815a6","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":19,"box":{"x":265,"y":671,"width":389,"height":12}},{"id":"d12ff0a4-a6bb-4a66-a71f-390ea0e028d5","block_type":"box","text":"Susan J. Car ter Susan J. Car ter has over 35 years of experience in investment management. She has","page_number":19,"box":{"x":69,"y":694,"width":806,"height":11}},{"id":"46b9eee3-39df-4f10-8f90-f7f08a383563","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":19,"box":{"x":265,"y":709,"width":604,"height":11}},{"id":"79b20a3f-4a3c-48af-b922-ccf0553450b8","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":19,"box":{"x":265,"y":724,"width":632,"height":12}},{"id":"aa3cae51-6c89-462c-9a31-e15a5b543c18","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":19,"box":{"x":265,"y":739,"width":562,"height":9}},{"id":"b854acc3-c96d-427a-a372-432d6f6b5687","block_type":"box","text":"Ms. Car ter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":19,"box":{"x":265,"y":755,"width":616,"height":10}},{"id":"64c02692-6efd-48b6-b80b-e889255abdc8","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":19,"box":{"x":264,"y":770,"width":591,"height":11}},{"id":"e48eb51b-f916-4cd6-a75d-515cc632f95f","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":19,"box":{"x":265,"y":785,"width":641,"height":11}},{"id":"fdf27741-8bf2-489a-94ae-f7238b67d2a5","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":19,"box":{"x":264,"y":800,"width":638,"height":11}},{"id":"473a5884-d7e1-448d-a76e-4ec42938cf9b","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":19,"box":{"x":265,"y":815,"width":584,"height":11}},{"id":"b066c244-042b-431f-a034-04ab7da2977c","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":19,"box":{"x":265,"y":830,"width":630,"height":11}},{"id":"ffe12c77-2c6a-4ac2-92a9-167970207ff1","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":19,"box":{"x":265,"y":845,"width":634,"height":11}},{"id":"638d28f7-9aef-42aa-a289-7d4b989cf91a","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":19,"box":{"x":265,"y":860,"width":599,"height":11}},{"id":"ca546942-50cc-477a-9dcf-9da7b00990f5","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":876,"width":407,"height":11}},{"id":"0214c340-3fa0-449a-ae8f-aa35eb3dbc87","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"829353f7-9c3f-46f7-bcab-3ed9fbe4ecd8","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":19,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"716f49a3-6120-45a7-88f7-7fb5cfd828e9","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":20,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"3501b04f-2931-4528-93f3-f71521a8b361","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":20,"box":{"x":69,"y":65,"width":837,"height":12}},{"id":"4fc11834-e82a-498b-bb5f-f648e4a5833f","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":20,"box":{"x":265,"y":81,"width":638,"height":11}},{"id":"b156745d-bc80-4fcc-8fad-39702699b213","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":20,"box":{"x":265,"y":96,"width":642,"height":11}},{"id":"837aee23-768e-477e-85df-96962372cd89","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":20,"box":{"x":265,"y":110,"width":601,"height":12}},{"id":"4a858a4c-a540-4506-86cb-f1c564cbbf53","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":20,"box":{"x":265,"y":126,"width":595,"height":11}},{"id":"63d1d46a-5148-4293-990d-4074b1f6109b","block_type":"box","text":"perspective on the markets and the economy.","page_number":20,"box":{"x":265,"y":141,"width":323,"height":11}},{"id":"9ff19c09-fb1f-492d-ad83-88b32e8098a1","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":20,"box":{"x":70,"y":164,"width":798,"height":11}},{"id":"3b9d3eaf-8a8e-430d-87b7-d9fb3c8a6c78","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":20,"box":{"x":265,"y":179,"width":631,"height":11}},{"id":"3883fbaa-c3b4-4ad1-9343-69c359703645","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":20,"box":{"x":265,"y":194,"width":633,"height":11}},{"id":"5621414b-2291-4998-8703-9d59a3448f4f","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":20,"box":{"x":265,"y":209,"width":628,"height":11}},{"id":"d716b28f-8a79-4755-82f8-48d779ee5b81","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":20,"box":{"x":265,"y":224,"width":596,"height":11}},{"id":"b9d7a01d-27eb-4b46-a44e-083d3b8deae3","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial exper t, as such","page_number":20,"box":{"x":265,"y":239,"width":616,"height":11}},{"id":"93cb005d-e64e-42e0-aa5f-e4cfe834becd","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":20,"box":{"x":264,"y":254,"width":368,"height":11}},{"id":"12068c92-f122-4cd9-a5a8-02781a3d6cb3","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":20,"box":{"x":69,"y":277,"width":777,"height":11}},{"id":"b3fcbfde-9506-44b7-b10b-f10e38b88a83","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":20,"box":{"x":265,"y":292,"width":613,"height":11}},{"id":"54cb747e-2aa5-4886-bede-eb4d3b070cff","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":20,"box":{"x":265,"y":307,"width":563,"height":12}},{"id":"bee2f0b0-1a2e-4863-9760-85a149c5f322","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":20,"box":{"x":265,"y":323,"width":607,"height":11}},{"id":"c86dcc17-b36c-4b82-b89d-d89dcd877a90","block_type":"box","text":"par tner at Deloitte and Ar thur Andersen for approximately 17 years. These positions have","page_number":20,"box":{"x":265,"y":338,"width":638,"height":11}},{"id":"7df30e1f-4071-4d44-984c-30ab2c66233a","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":20,"box":{"x":265,"y":353,"width":626,"height":11}},{"id":"09254fe1-f657-4a9f-ac62-600086b54887","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":20,"box":{"x":265,"y":368,"width":563,"height":11}},{"id":"b95ec276-5a38-4907-8d26-1de8d14edc91","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Trustees prior to becoming an","page_number":20,"box":{"x":265,"y":383,"width":625,"height":11}},{"id":"5998cc9a-8d39-4803-a54d-502d63c4365d","block_type":"box","text":"Independent Trustee. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":20,"box":{"x":265,"y":398,"width":625,"height":11}},{"id":"8a130bb1-cf97-4d7b-a8e5-3fbcde040b30","block_type":"box","text":"audit committee financial exper t, as such term is defined in the applicable Commission","page_number":20,"box":{"x":265,"y":413,"width":623,"height":11}},{"id":"72faaf7c-aa23-4d34-818a-f5aad2546f68","block_type":"box","text":"rules.","page_number":20,"box":{"x":265,"y":428,"width":38,"height":9}},{"id":"637d973f-9a99-4bd8-8455-74e6d16a00d2","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":20,"box":{"x":70,"y":451,"width":806,"height":11}},{"id":"afe4af21-b000-46d0-85f4-99339c869dbc","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":20,"box":{"x":264,"y":466,"width":584,"height":11}},{"id":"fe4483a4-1e4d-4c32-bece-221a9fd45f80","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":20,"box":{"x":265,"y":481,"width":622,"height":11}},{"id":"52293592-5bec-4a0c-8b52-2dc936f0807f","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":20,"box":{"x":265,"y":496,"width":638,"height":12}},{"id":"3e827785-274f-4399-b085-86da6b29048c","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":20,"box":{"x":265,"y":511,"width":570,"height":12}},{"id":"629ed46b-4b6d-425d-a1bd-4fb9647f2886","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":20,"box":{"x":265,"y":526,"width":642,"height":12}},{"id":"e843f58e-f316-4b58-a5c2-6279bc703aa9","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":20,"box":{"x":265,"y":542,"width":626,"height":11}},{"id":"e94a9629-ad9b-4165-ba28-7eb1dd43a18c","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":20,"box":{"x":265,"y":557,"width":630,"height":11}},{"id":"17c8303e-00b0-4ef7-b3e7-9c3abdc25a63","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":20,"box":{"x":265,"y":572,"width":602,"height":11}},{"id":"cf425dea-63ee-4c33-a8bc-e81263787421","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":20,"box":{"x":264,"y":587,"width":643,"height":11}},{"id":"253bfc89-8bd6-46c2-b2f1-38c33c05088d","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":20,"box":{"x":264,"y":602,"width":639,"height":11}},{"id":"18b4137a-5333-40a7-94b2-67b71782cc28","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":20,"box":{"x":264,"y":617,"width":641,"height":11}},{"id":"dff8722d-2638-49ca-9126-5d33dc715889","block_type":"box","text":"applicable Commission rules.","page_number":20,"box":{"x":265,"y":632,"width":208,"height":11}},{"id":"3585fa4c-7d69-4f62-849e-555695ae4b52","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":20,"box":{"x":69,"y":655,"width":769,"height":11}},{"id":"7bf61e4f-97d3-499d-9066-75137981870b","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":20,"box":{"x":265,"y":670,"width":621,"height":11}},{"id":"4f900d62-9535-482b-9fa4-5efbeba2b32f","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":20,"box":{"x":265,"y":685,"width":599,"height":12}},{"id":"2a09d5c2-2d3a-401d-9d58-19fd6a1dc078","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":20,"box":{"x":265,"y":700,"width":641,"height":12}},{"id":"4e623ba9-df48-4ed4-855c-200bd2c69b23","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":20,"box":{"x":264,"y":715,"width":602,"height":12}},{"id":"a8b9cfef-acb7-4716-a269-88252a4cb87e","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":20,"box":{"x":264,"y":731,"width":617,"height":11}},{"id":"3fc15053-59b3-4a85-a8ca-884954261db9","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":20,"box":{"x":265,"y":746,"width":629,"height":11}},{"id":"2a141422-99be-493d-a303-9eb0df40b5e7","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":20,"box":{"x":264,"y":761,"width":628,"height":11}},{"id":"14a39496-59d1-4248-afe3-02c15e6d0061","block_type":"box","text":"ar ticles and books on these topics.","page_number":20,"box":{"x":265,"y":776,"width":251,"height":11}},{"id":"4110c4bf-492c-40e7-89ba-a21fb6e88f32","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":20,"box":{"x":70,"y":799,"width":764,"height":11}},{"id":"79493006-05be-4682-b63f-d93fdc8ec6f3","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":20,"box":{"x":265,"y":814,"width":642,"height":11}},{"id":"29006a69-a262-401c-9276-32314064f639","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":20,"box":{"x":264,"y":829,"width":593,"height":11}},{"id":"29fc613a-97a7-462a-a16d-4e03ad4d599b","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":20,"box":{"x":265,"y":844,"width":603,"height":11}},{"id":"4712fc7a-becc-4891-a8bb-58d138aeef31","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":20,"box":{"x":265,"y":859,"width":629,"height":11}},{"id":"34884f6d-bffa-4189-a0d8-bd3d146841ef","block_type":"box","text":"I-11","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"857fdd57-0fd9-4200-9e96-e4ecf603c358","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":20,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a826727e-369c-4541-bfc3-af686c16b767","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":21,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"dbed487c-23a9-4b3d-a312-1660b2de2c61","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":21,"box":{"x":70,"y":65,"width":804,"height":12}},{"id":"5322f293-6e07-4c73-9849-bca0b7e5fb62","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":21,"box":{"x":265,"y":81,"width":552,"height":11}},{"id":"4bffe3ee-7eaa-42c1-aec5-3f117cf7d6f5","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":21,"box":{"x":265,"y":96,"width":636,"height":11}},{"id":"5f962000-48b4-44c1-a637-8367419fc38d","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":21,"box":{"x":265,"y":111,"width":639,"height":11}},{"id":"aaffc30c-131d-4f3b-96d6-92c13629547f","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":21,"box":{"x":265,"y":126,"width":576,"height":11}},{"id":"64d4aa3b-ef14-4c49-8a9e-b7b2dab5c26d","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":21,"box":{"x":265,"y":141,"width":626,"height":11}},{"id":"8db2f7eb-bf90-4ae4-9854-142a6cf16c1f","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":21,"box":{"x":265,"y":156,"width":592,"height":11}},{"id":"e7e54f92-4fb5-4cc3-98f8-90240658f40e","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":21,"box":{"x":265,"y":171,"width":629,"height":12}},{"id":"d56db013-714a-4d02-ae98-09a24ace2d39","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":21,"box":{"x":265,"y":186,"width":626,"height":12}},{"id":"093ec302-94f7-4333-ab6d-dd81d6f3f2f3","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":21,"box":{"x":264,"y":201,"width":608,"height":12}},{"id":"4b1d4f6d-a46f-44ba-99a1-b553de1c093b","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":21,"box":{"x":265,"y":217,"width":575,"height":11}},{"id":"b6c2a709-0454-42d3-99fb-c8d5be65ae6e","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":21,"box":{"x":264,"y":232,"width":591,"height":11}},{"id":"cca3a46c-d3f7-4fa9-a0f1-1cf84bd97431","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":21,"box":{"x":265,"y":247,"width":627,"height":11}},{"id":"591ed5d2-ff10-48c1-ac3c-3e764870d0a3","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":21,"box":{"x":265,"y":262,"width":578,"height":11}},{"id":"e46188f6-bd29-439f-8486-4157c9c2f2ad","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":21,"box":{"x":265,"y":277,"width":607,"height":11}},{"id":"b8395b80-026f-48d0-814d-68fcec983a6f","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":21,"box":{"x":265,"y":292,"width":615,"height":11}},{"id":"f3a79a0a-913a-4863-9fba-d541d69c34ef","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":21,"box":{"x":265,"y":307,"width":638,"height":12}},{"id":"35b0bf2a-45fd-439e-8199-051e086116b9","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":21,"box":{"x":265,"y":322,"width":635,"height":12}},{"id":"0fdaa82f-1a84-4d2f-94ee-edd214401af9","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":21,"box":{"x":265,"y":338,"width":642,"height":11}},{"id":"18543a91-6989-4216-aec2-1a495b923850","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":21,"box":{"x":265,"y":353,"width":627,"height":11}},{"id":"359e26aa-24ec-4c4d-be75-ce8092606781","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":21,"box":{"x":265,"y":368,"width":628,"height":11}},{"id":"447da8a6-d7ad-42b3-bd08-99bcf1ddd2e7","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":21,"box":{"x":265,"y":383,"width":460,"height":11}},{"id":"031bbc00-1d18-4b9c-99ae-aef00c46c020","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":21,"box":{"x":70,"y":406,"width":818,"height":11}},{"id":"61dc860f-7829-4ba6-a0fd-61b9c35f6d9d","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":21,"box":{"x":264,"y":421,"width":603,"height":11}},{"id":"85d82021-31f2-45c5-b79a-96e5dc92af69","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":21,"box":{"x":265,"y":436,"width":606,"height":11}},{"id":"dec33fff-10d8-44e2-909a-702d1cf61fdd","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":21,"box":{"x":265,"y":451,"width":608,"height":9}},{"id":"de4e3a0d-0ad1-4de2-87ad-3cdd951c9e65","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":21,"box":{"x":265,"y":466,"width":626,"height":11}},{"id":"8a4fabaf-39b1-4386-b397-1da80cffe338","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":21,"box":{"x":265,"y":481,"width":591,"height":11}},{"id":"5dd83c4f-4591-4d56-b1da-ddb348459883","block_type":"box","text":"various private and non-profit boards.","page_number":21,"box":{"x":264,"y":496,"width":265,"height":11}},{"id":"505efa3a-96bb-49e0-8b7b-955a88c400ae","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":21,"box":{"x":70,"y":519,"width":833,"height":11}},{"id":"5b33916b-ab8e-4e2d-904e-38c20f0d9e7a","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":21,"box":{"x":265,"y":534,"width":638,"height":11}},{"id":"f53b600d-de28-4f05-9995-aa6fbf8f581b","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":21,"box":{"x":265,"y":549,"width":608,"height":11}},{"id":"a61d2f10-0140-42fd-aea1-3854f82e72bf","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":21,"box":{"x":264,"y":564,"width":645,"height":11}},{"id":"712102c3-6f37-499b-bb65-d5a97d50ba8e","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":21,"box":{"x":264,"y":579,"width":639,"height":9}},{"id":"73cc7b5d-dde0-4940-8e5d-1931ed1442ca","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":21,"box":{"x":264,"y":595,"width":573,"height":11}},{"id":"f6d22c52-5d10-41d9-a141-998f83b51889","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":21,"box":{"x":265,"y":610,"width":625,"height":11}},{"id":"af97d642-14e1-46a9-8683-4edc0ca56172","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":21,"box":{"x":265,"y":625,"width":610,"height":11}},{"id":"54436ca7-9de9-42b4-a586-9d933c77fcb3","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":21,"box":{"x":265,"y":640,"width":642,"height":11}},{"id":"fc36f2e2-ffd6-461f-bfb2-1432687b8e64","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":21,"box":{"x":265,"y":655,"width":583,"height":11}},{"id":"0af1adf6-1eed-4e75-a05a-803f64ed9648","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":21,"box":{"x":264,"y":670,"width":369,"height":11}},{"id":"b3fb9203-a301-4cc3-9bf6-706173ea18ff","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":21,"box":{"x":70,"y":693,"width":807,"height":11}},{"id":"057964d6-1957-4ba4-9589-370780e9cb19","block_type":"box","text":"companies, most recently as a member of the boards of cer tain BlackRock-advised Funds","page_number":21,"box":{"x":264,"y":708,"width":641,"height":11}},{"id":"633dc4e7-d57c-407f-977d-6303be321001","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":21,"box":{"x":265,"y":723,"width":618,"height":11}},{"id":"844db6fc-4217-4f1a-a12b-e53c1b455509","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":21,"box":{"x":265,"y":738,"width":594,"height":11}},{"id":"56492a9f-523d-4159-a4ac-9c5e75c1283c","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":21,"box":{"x":265,"y":753,"width":639,"height":12}},{"id":"69a1d9f9-8139-4084-b253-2177dab8a0aa","block_type":"box","text":"be an audit committee financial exper t, as such term is defined in the applicable","page_number":21,"box":{"x":265,"y":768,"width":575,"height":11}},{"id":"84fdd0d1-3724-46c0-81a6-b5634f4acf9a","block_type":"box","text":"Commission rules.","page_number":21,"box":{"x":265,"y":784,"width":131,"height":9}},{"id":"e521ee36-e8d8-4ac9-9822-9cd483464cbf","block_type":"box","text":"I-12","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"bf9abd34-1b91-4e08-8690-d7f1c944109d","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":21,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f5cd48fb-8673-4184-862d-f1f53f207059","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":22,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"eb8f86bc-09d2-403f-8aa3-759a7e44866b","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":22,"box":{"x":69,"y":65,"width":808,"height":12}},{"id":"c629f029-27bb-478b-b54d-33bf5fb1f576","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liber ty Square Asset","page_number":22,"box":{"x":265,"y":81,"width":630,"height":11}},{"id":"4abaa17c-c04d-493d-b91a-b09cba24eee3","block_type":"box","text":"Management, LP / Steel Par tners Japan Asset Management, LP from 1998 to 2015, an","page_number":22,"box":{"x":265,"y":96,"width":627,"height":11}},{"id":"0e2545d7-6fe3-4afd-abc2-719bb343b9fa","block_type":"box","text":"investment manager that specialized in long/shor t non-U.S. equity investments, and was","page_number":22,"box":{"x":265,"y":111,"width":632,"height":11}},{"id":"98d2d090-7728-42ad-83d7-37a80b3ccb54","block_type":"box","text":"an owner and General Par tner of Neon Liber ty Capital Management, LLC from 2003 to","page_number":22,"box":{"x":265,"y":126,"width":615,"height":11}},{"id":"92a45f78-4cda-413e-baef-3a10e5b947ae","block_type":"box","text":"2023, a firm focusing on long/shor t equities in global emerging and frontier markets.","page_number":22,"box":{"x":265,"y":141,"width":608,"height":11}},{"id":"b9215d27-aad7-4332-af7a-9272a59bc3a2","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":22,"box":{"x":264,"y":156,"width":620,"height":11}},{"id":"4bccf235-2b73-4ba7-9385-d6d3cf6b92d5","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":22,"box":{"x":265,"y":171,"width":584,"height":11}},{"id":"86192bd7-8923-47be-b013-d8cfbe54980a","block_type":"box","text":"committee financial exper t, as such term is defined in the applicable Commission rules.","page_number":22,"box":{"x":264,"y":186,"width":629,"height":11}},{"id":"eb03a604-9392-4550-ae70-5692f4664699","block_type":"box","text":"Interested Trustees","page_number":22,"box":{"x":70,"y":209,"width":138,"height":9}},{"id":"434b10bc-17ce-4158-bd74-f47d7c976ff7","block_type":"box","text":"Rober t Fairbairn Rober t Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":22,"box":{"x":70,"y":224,"width":823,"height":11}},{"id":"9c80581d-9578-4e1d-b5ee-a867461ee83f","block_type":"box","text":"years of experience in finance and asset management. In par ticular, Mr. Fairbairn’s","page_number":22,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"0255e577-8aa0-42dc-8348-034fb1fafd45","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":22,"box":{"x":265,"y":254,"width":629,"height":12}},{"id":"67e3a3b1-7228-4b99-85f8-5cd05ff9ea53","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":22,"box":{"x":265,"y":269,"width":639,"height":11}},{"id":"f7dd70bc-3c9f-481e-a665-b452b6c6b218","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":22,"box":{"x":265,"y":285,"width":617,"height":11}},{"id":"3aa311d9-e124-4a72-8887-9b49cf7cafed","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":22,"box":{"x":264,"y":300,"width":634,"height":11}},{"id":"d8230503-7a8b-45f5-9090-06015ac9add8","block_type":"box","text":"Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":22,"box":{"x":265,"y":315,"width":624,"height":10}},{"id":"4eb8c117-6179-4499-aea2-90b6536fa8c8","block_type":"box","text":"and iShares","page_number":22,"box":{"x":265,"y":330,"width":84,"height":9}},{"id":"335d9952-45b8-4e17-a0b8-666120ce37bd","block_type":"box","text":"®","page_number":22,"box":{"x":350,"y":330,"width":6,"height":5}},{"id":"42ed1144-3e28-4930-b322-6022d01be70f","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":22,"box":{"x":362,"y":330,"width":478,"height":11}},{"id":"e64d22de-708c-453a-b2ab-c0aa46d9637b","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":22,"box":{"x":265,"y":345,"width":585,"height":11}},{"id":"9ad61990-73b2-4f67-8cbd-95183cc48636","block_type":"box","text":"Strategic Par tner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":22,"box":{"x":265,"y":360,"width":620,"height":12}},{"id":"b8126974-66d5-4f80-8b7d-ad7ea9aaa0c3","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":22,"box":{"x":265,"y":375,"width":578,"height":11}},{"id":"723278fd-444f-4ae4-8aaf-ac805ac83c93","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Senior Managing Director of BlackRock, Inc. since","page_number":22,"box":{"x":69,"y":398,"width":800,"height":11}},{"id":"bfdf4764-3859-42ef-b9ad-58ccf80311ed","block_type":"box","text":"2026, as Managing Director of BlackRock, Inc. from 2009 to 2025, as the Head of","page_number":22,"box":{"x":265,"y":413,"width":593,"height":11}},{"id":"d816b032-986b-4908-9a70-34f95bab50be","block_type":"box","text":"BlackRock Global Business Operations Services since 2009, and as President and Chief","page_number":22,"box":{"x":265,"y":428,"width":633,"height":11}},{"id":"137460dd-5979-4c81-8220-2965a85ab456","block_type":"box","text":"Executive Officer of the BlackRock-advised Funds provides him with a strong","page_number":22,"box":{"x":265,"y":443,"width":542,"height":12}},{"id":"a9564294-fc0b-4018-a157-2044934777de","block_type":"box","text":"understanding of the BlackRock-advised Funds, their operations, and the business and","page_number":22,"box":{"x":265,"y":458,"width":617,"height":12}},{"id":"6dcef6b9-ce63-4c91-afe6-06bc24f8d741","block_type":"box","text":"regulatory issues facing the BlackRock-advised Funds. Mr. Perlowski’s prior position as","page_number":22,"box":{"x":265,"y":474,"width":620,"height":11}},{"id":"7daaebb2-0dc0-4639-9d95-f4794ee1189c","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":22,"box":{"x":265,"y":489,"width":616,"height":11}},{"id":"2041ecf0-42b3-4ad6-b497-f8e346b266fa","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":22,"box":{"x":265,"y":504,"width":639,"height":11}},{"id":"063f7119-0c4d-49e3-9c35-b8c30bbeedb5","block_type":"box","text":"of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":22,"box":{"x":265,"y":519,"width":603,"height":9}},{"id":"645efd10-6cd7-46fc-9dcd-6853ba0ce697","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":22,"box":{"x":265,"y":534,"width":582,"height":11}},{"id":"2de30170-acae-4c91-9678-25045d8eebaf","block_type":"box","text":"practices of other financial companies. Mr. Perlowski also serves as a board member for","page_number":22,"box":{"x":265,"y":549,"width":632,"height":11}},{"id":"6f1199d9-0a93-4251-a0a4-d326c652a2a3","block_type":"box","text":"the funds in the BlackRock Fixed-Income Complex. 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Keizer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":79,"y":905,"width":503,"height":11}},{"id":"67c448d8-2a59-4c8d-bfce-66610138ae55","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":659,"y":904,"width":235,"height":11}},{"id":"acd763ca-c249-4a5c-8851-1966ac0c9df7","block_type":"box","text":"I-17","page_number":26,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"1a9b2302-62a3-47e7-b49a-9729a72524d6","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":26,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"0eac6766-6158-40f7-bf27-efdfce1355ec","block_type":"box","text":"Name","page_number":27,"box":{"x":69,"y":79,"width":32,"height":7}},{"id":"9fc44234-88d2-4f55-a548-d4e4d3bd60ba","block_type":"box","text":"Dollar Range","page_number":27,"box":{"x":640,"y":59,"width":74,"height":9}},{"id":"7e008033-cfa5-4982-a2b1-a6f8624cd3d2","block_type":"box","text":"of Equity","page_number":27,"box":{"x":651,"y":69,"width":51,"height":9}},{"id":"50177feb-b518-4350-ad87-c685432191d4","block_type":"box","text":"Securities in the Fund","page_number":27,"box":{"x":612,"y":79,"width":128,"height":7}},{"id":"ad0ba040-167c-4b37-865d-71fe6b9497c4","block_type":"box","text":"Aggregate Dollar Range","page_number":27,"box":{"x":770,"y":49,"width":139,"height":9}},{"id":"0871438e-03c8-4c1e-94c5-fb2616027ed8","block_type":"box","text":"of Equity","page_number":27,"box":{"x":814,"y":59,"width":51,"height":9}},{"id":"cf524b6d-d1a3-4375-a1bf-5dbf5d389d14","block_type":"box","text":"Securities in","page_number":27,"box":{"x":803,"y":69,"width":73,"height":7}},{"id":"9a1bf1c4-94f9-485f-8436-6411f4c8fbf1","block_type":"box","text":"Supervised Funds","page_number":27,"box":{"x":788,"y":79,"width":103,"height":9}},{"id":"eece02ef-af3b-433f-b63f-793fd1f3f7a5","block_type":"box","text":"Cynthia A. Montgomery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":97,"width":503,"height":11}},{"id":"7d41da68-f2c1-438f-a434-366b19bf43ac","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":659,"y":96,"width":235,"height":11}},{"id":"f6446511-4904-449f-b4c7-8400538a6d8d","block_type":"box","text":"Donald C. 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Stern* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":158,"width":503,"height":8}},{"id":"e0bb0faf-c969-4baa-8bcd-23de915d71be","block_type":"box","text":"None None","page_number":27,"box":{"x":659,"y":158,"width":199,"height":8}},{"id":"615041f8-8437-47bb-aedd-6e4ee8adc097","block_type":"box","text":"Kenneth L. Urish","page_number":27,"box":{"x":79,"y":173,"width":117,"height":9}},{"id":"5dd1efa3-e821-4d60-acfe-63953b7bbfe8","block_type":"box","text":"...............................................","page_number":27,"box":{"x":205,"y":180,"width":377,"height":1}},{"id":"5e3999e3-0df6-4f76-b97a-f14ceebfbc9b","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":659,"y":172,"width":235,"height":11}},{"id":"4cd79866-7609-4a09-88d3-4297b427051d","block_type":"box","text":"Claire A. Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":188,"width":503,"height":9}},{"id":"d7facad3-73f4-4173-874e-df9775d8967a","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":659,"y":187,"width":235,"height":11}},{"id":"5516b468-98f1-4155-b784-6fa4bb701bdc","block_type":"box","text":"Interested Trustees","page_number":27,"box":{"x":70,"y":203,"width":138,"height":9}},{"id":"754a3f0d-9b03-4918-bdf2-ad44fa07e3ed","block_type":"box","text":"Rober t Fairbairn","page_number":27,"box":{"x":79,"y":218,"width":113,"height":9}},{"id":"6bbe20d1-2b83-4bef-9e01-cc55429182fa","block_type":"box","text":"................................................","page_number":27,"box":{"x":197,"y":225,"width":385,"height":2}},{"id":"b4e63104-e5e0-4fe3-903f-20c425384bd2","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":659,"y":217,"width":235,"height":11}},{"id":"c714cce9-010a-4754-8b2c-9441ec2bd862","block_type":"box","text":"John M. 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As of December 31, 2025","page_number":27,"box":{"x":69,"y":293,"width":819,"height":12}},{"id":"b3e1ecb2-1cd3-49f3-bfc7-6de8264f40cc","block_type":"box","text":"(and, with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026), none of the Independent Trustees of the Trust or","page_number":27,"box":{"x":69,"y":309,"width":839,"height":11}},{"id":"2dc35ae3-c6b8-4585-946f-34e8632159f4","block_type":"box","text":"their immediate family members owned beneficially or of record any securities of the Fund’s investment adviser,","page_number":27,"box":{"x":68,"y":324,"width":798,"height":11}},{"id":"2ce98c26-39dc-4e18-8fcd-44f8ef76036e","block_type":"box","text":"principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such","page_number":27,"box":{"x":70,"y":339,"width":831,"height":11}},{"id":"539f81e4-240f-491a-9b5b-9e7b946be070","block_type":"box","text":"entities.","page_number":27,"box":{"x":69,"y":354,"width":56,"height":9}},{"id":"e66c7b51-2ca9-4e6c-8f5c-961efe72c427","block_type":"box","text":"Compensation of Trustees","page_number":27,"box":{"x":69,"y":384,"width":190,"height":11}},{"id":"a8466138-85c6-4c11-8ba4-a7651a75d1a5","block_type":"box","text":"Each Trustee who is an Independent Trustee is paid as compensation an annual retainer of $375,000 per year","page_number":27,"box":{"x":102,"y":406,"width":791,"height":12}},{"id":"8b4372c0-593c-4af5-8e36-41c51c0722bb","block_type":"box","text":"for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex,","page_number":27,"box":{"x":68,"y":422,"width":810,"height":11}},{"id":"972ce2cf-c71c-41d2-aad7-d6481dab7a58","block_type":"box","text":"including the Trust, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":27,"box":{"x":70,"y":436,"width":838,"height":12}},{"id":"c3a3f7c2-454e-443c-9ba6-d6a97f80ec19","block_type":"box","text":"receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings held in a","page_number":27,"box":{"x":69,"y":452,"width":807,"height":11}},{"id":"02d505fb-1c99-426d-9ea2-7b4e73e951b8","block_type":"box","text":"calendar year (compensation for meetings in excess of this number to be determined on a case-by-case basis),","page_number":27,"box":{"x":69,"y":467,"width":791,"height":12}},{"id":"2070a17f-0b03-4323-89d9-c7004594916d","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":27,"box":{"x":68,"y":482,"width":786,"height":12}},{"id":"75037067-cab3-4927-9fbf-1ef2b70d1d29","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":27,"box":{"x":69,"y":498,"width":769,"height":11}},{"id":"5b591062-bc7f-44e8-bc7e-7cb13bf9c166","block_type":"box","text":"Committee and Per formance Oversight Committee are paid as compensation an additional annual retainer of","page_number":27,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"62c93b29-1bb3-4906-b0d9-647f4a8632c0","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":27,"box":{"x":69,"y":527,"width":689,"height":12}},{"id":"6586f59a-946f-4bfe-84bf-016131d0930e","block_type":"box","text":"The following table sets for th the compensation the Trust paid to the Trustees on behalf of the Fund for the","page_number":27,"box":{"x":101,"y":550,"width":766,"height":12}},{"id":"48833234-0d7f-4104-945b-e0ad17dcfdd7","block_type":"box","text":"fiscal year ended May 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for the","page_number":27,"box":{"x":68,"y":566,"width":841,"height":11}},{"id":"b328fc69-8407-4c18-b5c0-ebb3149ec972","block_type":"box","text":"calendar year ended December 31, 2025.","page_number":27,"box":{"x":69,"y":581,"width":298,"height":11}},{"id":"2008c194-0c66-4c55-a771-2e237d05ad48","block_type":"box","text":"Name","page_number":27,"box":{"x":69,"y":670,"width":32,"height":7}},{"id":"c43a0a65-b216-4068-af72-1717726d0812","block_type":"box","text":"Compensation","page_number":27,"box":{"x":614,"y":659,"width":83,"height":9}},{"id":"2d64b0e9-862c-42fa-b07f-c8ca36ab9a7a","block_type":"box","text":"from the Fund","page_number":27,"box":{"x":615,"y":669,"width":81,"height":8}},{"id":"26877435-f9e8-4a7c-8485-88553530aba5","block_type":"box","text":"Estimated","page_number":27,"box":{"x":731,"y":629,"width":57,"height":7}},{"id":"58bac01f-cbd3-4a1d-bd8b-a073de7df6e1","block_type":"box","text":"Annual","page_number":27,"box":{"x":739,"y":639,"width":40,"height":7}},{"id":"cdb64b1e-827e-4aff-bb3f-73cfbc099875","block_type":"box","text":"Benefits","page_number":27,"box":{"x":736,"y":649,"width":47,"height":7}},{"id":"0b71be00-04ed-44ea-bfb1-cd23d004e996","block_type":"box","text":"upon","page_number":27,"box":{"x":746,"y":661,"width":27,"height":7}},{"id":"6d906c17-432e-4c93-8942-6afd71cb50ab","block_type":"box","text":"Retirement","page_number":27,"box":{"x":727,"y":669,"width":65,"height":8}},{"id":"6583c037-027b-43b7-a358-3ee8cabcf853","block_type":"box","text":"Aggregate","page_number":27,"box":{"x":835,"y":609,"width":61,"height":9}},{"id":"7aff0be9-3a54-4dee-97b1-7e85a8c39b39","block_type":"box","text":"Compensation","page_number":27,"box":{"x":824,"y":619,"width":83,"height":9}},{"id":"dc7fe0ab-f712-41cf-a060-8f80d9a613f2","block_type":"box","text":"from the","page_number":27,"box":{"x":841,"y":629,"width":49,"height":7}},{"id":"40001e16-f4c1-4a98-98cc-86c52f0e5e4d","block_type":"box","text":"Fund and","page_number":27,"box":{"x":840,"y":639,"width":51,"height":7}},{"id":"d718c94b-9c6f-437e-b3fb-0d0338280f56","block_type":"box","text":"Other","page_number":27,"box":{"x":850,"y":649,"width":31,"height":7}},{"id":"0137c204-38f0-46a8-b2c2-f24334ac0278","block_type":"box","text":"BlackRock","page_number":27,"box":{"x":833,"y":660,"width":66,"height":7}},{"id":"eb45dd3b-8bb2-43f7-9731-8d628bd56222","block_type":"box","text":"Advised Funds","page_number":27,"box":{"x":821,"y":669,"width":84,"height":8}},{"id":"6d05776e-454c-4b39-966f-926f701f46b9","block_type":"box","text":"1","page_number":27,"box":{"x":906,"y":670,"width":4,"height":3}},{"id":"7b595e7e-f9b2-41a5-b784-7635bd76c35f","block_type":"box","text":"Independent Trustees","page_number":27,"box":{"x":70,"y":687,"width":154,"height":11}},{"id":"c0f869af-d837-4e8f-803a-387b3f42fa90","block_type":"box","text":"Christopher J. Ailman . . . .","page_number":27,"box":{"x":79,"y":702,"width":186,"height":11}},{"id":"f4a3113d-f365-46fe-9f7b-1617abb01b41","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,561 None","page_number":27,"box":{"x":271,"y":702,"width":506,"height":11}},{"id":"8d41e065-ef06-4684-a727-3ff6c2389bb1","block_type":"box","text":"$445,000","page_number":27,"box":{"x":830,"y":702,"width":72,"height":11}},{"id":"b95bd7e0-fe2f-4143-a0e4-76db8caccc21","block_type":"box","text":"Susan J. Car ter . . .","page_number":27,"box":{"x":79,"y":718,"width":137,"height":8}},{"id":"b31aa8dd-98a2-4e8c-b490-6dafd19ae9db","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,561 None","page_number":27,"box":{"x":223,"y":717,"width":554,"height":11}},{"id":"91b1574b-f7ae-4c2e-a7ef-581ad9f6dc54","block_type":"box","text":"$445,000","page_number":27,"box":{"x":830,"y":717,"width":72,"height":11}},{"id":"aa9401d8-6acd-4fb2-83c8-a0b9b24568af","block_type":"box","text":"Collette Chilton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,561 None","page_number":27,"box":{"x":79,"y":732,"width":698,"height":11}},{"id":"2ecf879f-7bf9-48d5-80ba-9dbbec9b88a7","block_type":"box","text":"$445,000","page_number":27,"box":{"x":830,"y":732,"width":72,"height":11}},{"id":"2c683ab9-2031-4e0b-b47c-efa6c0c0e9c4","block_type":"box","text":"Neil A. Cotty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,780 None","page_number":27,"box":{"x":79,"y":747,"width":698,"height":12}},{"id":"af12426e-3e8e-4062-890b-8951964aa6e9","block_type":"box","text":"$467,500","page_number":27,"box":{"x":830,"y":747,"width":72,"height":11}},{"id":"753cfb27-954c-4f62-b040-56d1b25ee683","block_type":"box","text":"Jeffrey Jarczyk","page_number":27,"box":{"x":78,"y":763,"width":102,"height":11}},{"id":"bc68f85c-d6ad-46da-bed2-3c3813312c07","block_type":"box","text":"2","page_number":27,"box":{"x":180,"y":763,"width":4,"height":5}},{"id":"50fe7ef4-d496-4bb6-a2b1-f55841a8d24f","block_type":"box","text":".................................................","page_number":27,"box":{"x":190,"y":770,"width":393,"height":2}},{"id":"aae8721b-6a44-4eae-89ab-a1f3c05fea27","block_type":"box","text":"$737 None None","page_number":27,"box":{"x":637,"y":762,"width":246,"height":11}},{"id":"9fc84be3-ba40-4d65-a4cd-99a2f1ee5cff","block_type":"box","text":"Henry R. 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$0","page_number":30,"box":{"x":321,"y":128,"width":553,"height":8}},{"id":"41a26004-3eb6-45b4-91a3-c2cdcad41d15","block_type":"box","text":"Reid Menge 16 7 2 0 0 0","page_number":30,"box":{"x":74,"y":141,"width":797,"height":9}},{"id":"4b64ec13-8b2a-4291-b2f3-b0ed92e7de88","block_type":"box","text":"$46.54 Billion $28.24 Billion $231.78 Million $0 $0 $0","page_number":30,"box":{"x":321,"y":153,"width":553,"height":8}},{"id":"8c56708b-b72a-459c-860f-ffd62dd96d25","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":30,"box":{"x":69,"y":188,"width":304,"height":11}},{"id":"b487e903-c498-4256-92e8-302a69130f73","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of May 31, 2026.","page_number":30,"box":{"x":101,"y":210,"width":656,"height":12}},{"id":"a9b5b8bb-578b-4860-aad9-96c2027d65af","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":30,"box":{"x":102,"y":233,"width":774,"height":11}},{"id":"c86c0495-5ace-43a6-8d5f-f17413731363","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":30,"box":{"x":70,"y":248,"width":837,"height":11}},{"id":"dd398cb9-5c6a-4cc2-b9b1-6c1ef6fde160","block_type":"box","text":"a variety of components and may vary from year to year based on a number of factors. The principal components of","page_number":30,"box":{"x":69,"y":263,"width":823,"height":11}},{"id":"3d922dac-adf8-43da-a889-b7e7bcbcc11f","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":30,"box":{"x":69,"y":278,"width":799,"height":11}},{"id":"d2f2a6ec-9e4e-4ce0-81b6-3dcadbeed5fa","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":30,"box":{"x":70,"y":293,"width":670,"height":12}},{"id":"b070d050-9bcc-44f5-bd8c-fa82c991ef12","block_type":"box","text":"Base Compensation.","page_number":30,"box":{"x":102,"y":316,"width":148,"height":11}},{"id":"d847b8da-a4d4-4d3d-b043-8a19f24abb54","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":30,"box":{"x":257,"y":316,"width":640,"height":11}},{"id":"01e1cfc5-e829-4777-b5db-7f174ba518c0","block_type":"box","text":"firm.","page_number":30,"box":{"x":68,"y":331,"width":32,"height":9}},{"id":"26b27427-8496-4d45-ad6f-0d3556ca8f11","block_type":"box","text":"Discretionary Incentive Compensation","page_number":30,"box":{"x":69,"y":362,"width":277,"height":11}},{"id":"8b232188-3d0a-46d2-b351-f75ba7da6a93","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities por tfolio managers is based on a","page_number":30,"box":{"x":102,"y":384,"width":763,"height":11}},{"id":"a1ef3ac3-5c46-4a78-95c2-7320609bcaa9","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic por tfolio manager compensation program is based on team","page_number":30,"box":{"x":68,"y":399,"width":832,"height":12}},{"id":"da300201-d020-4c75-8900-fa4641f35e26","block_type":"box","text":"revenue and pre-tax investment per formance relative to appropriate competitors or benchmarks over 3- and 5-year","page_number":30,"box":{"x":69,"y":414,"width":815,"height":12}},{"id":"0d020dc2-e6bc-41ba-9c46-ae1cb37d3ff2","block_type":"box","text":"per formance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":30,"box":{"x":70,"y":429,"width":757,"height":11}},{"id":"3f011641-6460-4551-893e-ddc53d7aa918","block_type":"box","text":"benchmarks against which the per formance of the Fund or other accounts managed by the por tfolio managers are","page_number":30,"box":{"x":69,"y":445,"width":814,"height":11}},{"id":"3557c94b-d735-48f4-88a3-a51494c74b64","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":30,"box":{"x":69,"y":460,"width":780,"height":11}},{"id":"76d07632-2866-43c9-a670-c3ab469a834d","block_type":"box","text":"per formance of the Fund and other accounts managed by the por tfolio management team is compared and the","page_number":30,"box":{"x":70,"y":475,"width":791,"height":11}},{"id":"8370f7fc-eba4-423e-b83d-b26272730d0f","block_type":"box","text":"period of time over which per formance is evaluated. With respect to these por tfolio managers such benchmarks for","page_number":30,"box":{"x":70,"y":490,"width":823,"height":11}},{"id":"25e5a612-0166-4c0f-9e6b-ab80b1307f56","block_type":"box","text":"the Fund and other accounts are:","page_number":30,"box":{"x":68,"y":505,"width":236,"height":9}},{"id":"bddcf744-5b2f-40d7-947c-949d8669c3ea","block_type":"box","text":"Portfolio Manager Benchmarks","page_number":30,"box":{"x":69,"y":533,"width":267,"height":9}},{"id":"5dbeeb59-0c0c-4688-8952-2022c61dd094","block_type":"box","text":"Sally Du, CFA S&P 500 Index; ICE BofA US 3-month Treasury Bill Index; Russell 1000 Index.","page_number":30,"box":{"x":69,"y":550,"width":750,"height":11}},{"id":"04c3c8a7-26c7-45b6-944f-8a1e3950d84f","block_type":"box","text":"Reid Menge MSCI ACWI 25% Call Overwrite Index; MSCI All Country World Index (Net Total Return);","page_number":30,"box":{"x":70,"y":573,"width":807,"height":11}},{"id":"7af0a076-097f-41b7-a634-826a9e3e4096","block_type":"box","text":"MSCI All Country World Information Technology Index - Net Return in USD.","page_number":30,"box":{"x":265,"y":588,"width":523,"height":11}},{"id":"b7bd2b7b-3944-4d0b-90fd-5e582e17d58f","block_type":"box","text":"A smaller element of por tfolio manager discretionary compensation may include consideration of: financial","page_number":30,"box":{"x":101,"y":634,"width":759,"height":12}},{"id":"b154ac6e-66dc-43f3-b999-8bda23565c25","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":30,"box":{"x":69,"y":649,"width":798,"height":12}},{"id":"bd97a1e1-d084-4770-af9a-056a1bb6e115","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":30,"box":{"x":69,"y":665,"width":814,"height":11}},{"id":"38bf24e3-be12-4551-b6c6-a8045f1dc07b","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":30,"box":{"x":68,"y":680,"width":798,"height":11}},{"id":"7fd2835d-4a99-4c3f-995e-789a9765458a","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":30,"box":{"x":102,"y":702,"width":389,"height":11}},{"id":"9906db9f-5683-46ee-a99b-f7744a14ed49","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":30,"box":{"x":499,"y":703,"width":383,"height":10}},{"id":"2459cf55-de66-4ad2-9fbe-b5fa75674b13","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":30,"box":{"x":70,"y":717,"width":815,"height":12}},{"id":"d122ba53-5b9f-4d6e-a469-adac9fbcbe90","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":30,"box":{"x":68,"y":732,"width":522,"height":12}},{"id":"e349add6-b32b-4359-a383-54b7e9cbbb13","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":30,"box":{"x":102,"y":755,"width":760,"height":11}},{"id":"9afd9077-7d1b-4027-a9c5-eeda89412fcb","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":30,"box":{"x":69,"y":770,"width":795,"height":12}},{"id":"582450a4-c292-4d22-9051-ec687b6882b7","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":30,"box":{"x":69,"y":785,"width":805,"height":12}},{"id":"c22553e5-bbef-48c4-b13e-3dc7ef1d5e84","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":30,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"922a7f47-632b-4a30-97b8-9aeda35f7a09","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":30,"box":{"x":68,"y":816,"width":839,"height":11}},{"id":"2a52fef9-f027-4f92-8e2b-1e49b0433568","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":30,"box":{"x":69,"y":831,"width":802,"height":11}},{"id":"bc5c0ca7-66bf-4e14-82aa-353d5b0a81b6","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":30,"box":{"x":70,"y":846,"width":820,"height":11}},{"id":"edd02f22-1ebe-4adc-b362-9a0ca04e9577","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":30,"box":{"x":70,"y":861,"width":801,"height":11}},{"id":"f28fec2a-5ef4-4a5b-866a-2cb7620d2f64","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":30,"box":{"x":70,"y":876,"width":831,"height":11}},{"id":"71983571-2cc8-4b6f-95d7-20186c393150","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":30,"box":{"x":69,"y":891,"width":479,"height":12}},{"id":"dae57918-5597-44cf-b9be-ce43ae79c082","block_type":"box","text":"I-21","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"7afcb104-a92a-42f2-92b9-61dca19a4987","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":30,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5d49d0c8-d43d-4cab-8329-8fa89cea982f","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":31,"box":{"x":102,"y":45,"width":785,"height":11}},{"id":"50ac946b-ede4-4392-a117-c3ea933e072a","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":31,"box":{"x":68,"y":60,"width":836,"height":11}},{"id":"8f6a90b4-f8ca-40fd-b80c-ab83acf95aa4","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":31,"box":{"x":68,"y":75,"width":821,"height":11}},{"id":"25cd9572-c012-40fa-93c0-2a1dc16363ef","block_type":"box","text":"results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only","page_number":31,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"30be87aa-f3b2-4498-9c4e-ecbd891c1b92","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":31,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"388a3213-584d-414e-93d4-0f6980f0577e","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":31,"box":{"x":69,"y":120,"width":414,"height":12}},{"id":"1ca062c3-f4dd-4c85-bb43-20bf0ed62aee","block_type":"box","text":"Other Compensation Benefits.","page_number":31,"box":{"x":101,"y":143,"width":218,"height":11}},{"id":"1625e2b8-0f76-4bc8-9d53-48a1af5d3068","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":31,"box":{"x":327,"y":143,"width":552,"height":11}},{"id":"766637cf-bc4f-4c1e-8f2b-325f2b22a719","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":31,"box":{"x":69,"y":158,"width":582,"height":11}},{"id":"0b7eb576-73ec-414a-80b1-f999fe179b95","block_type":"box","text":"Incentive Savings Plans","page_number":31,"box":{"x":102,"y":181,"width":167,"height":11}},{"id":"2085f02f-6fc7-4fff-ae97-d9b61272e995","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":31,"box":{"x":274,"y":181,"width":614,"height":11}},{"id":"2db18d4c-0521-4fcd-a1d4-54716fed32fc","block_type":"box","text":"employees are eligible to par ticipate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":31,"box":{"x":69,"y":196,"width":831,"height":11}},{"id":"e9c6941d-2435-4282-bc49-0dafc3cd7e89","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":31,"box":{"x":70,"y":211,"width":785,"height":11}},{"id":"7d8ac568-53fe-4379-8e2b-42f6c441cb82","block_type":"box","text":"company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a","page_number":31,"box":{"x":69,"y":225,"width":830,"height":12}},{"id":"bf46915f-1963-4afd-b660-6bfc8044782d","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":31,"box":{"x":69,"y":241,"width":799,"height":11}},{"id":"47f1fa5c-9a86-439c-9148-82084f493e81","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":31,"box":{"x":69,"y":256,"width":831,"height":12}},{"id":"80f70ea0-4e1a-4208-9c46-d9d6885d75e3","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":31,"box":{"x":69,"y":271,"width":798,"height":12}},{"id":"e416b44a-dffe-4517-89d5-192b1b6b8fbc","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":31,"box":{"x":70,"y":286,"width":809,"height":12}},{"id":"02281a7f-b98e-4540-90bb-31454d5d7d90","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for","page_number":31,"box":{"x":68,"y":302,"width":793,"height":11}},{"id":"ceed2400-5f41-4447-86dd-88a4e980decd","block_type":"box","text":"investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.","page_number":31,"box":{"x":70,"y":317,"width":832,"height":11}},{"id":"22128b52-ea9d-4d11-b4b0-447c45edbfd3","block_type":"box","text":"Annual par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":31,"box":{"x":68,"y":332,"width":805,"height":11}},{"id":"e4fec9d9-5a05-49dc-854f-32c0f154223a","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":31,"box":{"x":69,"y":346,"width":808,"height":12}},{"id":"18c60539-b985-4584-adb9-9cca94897e77","block_type":"box","text":"par ticipate in these plans.","page_number":31,"box":{"x":70,"y":362,"width":185,"height":11}},{"id":"50e1cdc2-f2c3-451a-8add-ee6fb72c3398","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":31,"box":{"x":69,"y":392,"width":268,"height":12}},{"id":"9d1b30ee-ec5c-4ad6-801d-ae87f0a1c5c7","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":31,"box":{"x":101,"y":415,"width":731,"height":11}},{"id":"23ccd436-a931-455b-bc33-34125e77911e","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":31,"box":{"x":69,"y":430,"width":519,"height":11}},{"id":"794d0e92-f2ca-4186-b976-f38f151f6f41","block_type":"box","text":"Portfolio Manager","page_number":31,"box":{"x":69,"y":468,"width":105,"height":9}},{"id":"4dbf92d2-df7e-46d4-b1fc-ecc0834e5849","block_type":"box","text":"Dollar Range of Equity","page_number":31,"box":{"x":759,"y":458,"width":129,"height":9}},{"id":"f97c7817-dc39-4c74-bf1b-0c6bc11daddf","block_type":"box","text":"Securities Beneficially Owned","page_number":31,"box":{"x":736,"y":468,"width":173,"height":9}},{"id":"c156fb80-4af6-4bac-b111-92eb59868db1","block_type":"box","text":"Sally Du, CFA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":31,"box":{"x":69,"y":486,"width":772,"height":11}},{"id":"36f42f25-a72e-48f9-be61-241be1f98bc3","block_type":"box","text":"Reid Menge . . .","page_number":31,"box":{"x":70,"y":502,"width":105,"height":11}},{"id":"32953142-f821-443d-abe1-3d9d4038fa6d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":31,"box":{"x":182,"y":502,"width":659,"height":8}},{"id":"a9281e2d-3edd-4aff-9c21-0c8f83087960","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":31,"box":{"x":69,"y":533,"width":403,"height":11}},{"id":"32bf31a8-6abc-4201-bfed-50b9332f5ca8","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":31,"box":{"x":102,"y":555,"width":727,"height":12}},{"id":"a60afd5a-34b0-4de0-82ae-13d1d07db777","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":31,"box":{"x":70,"y":571,"width":814,"height":11}},{"id":"dc11ba6c-614e-488e-a27b-cfc7c7a5868a","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":31,"box":{"x":70,"y":586,"width":837,"height":11}},{"id":"d14a3103-ee52-41a5-bede-f6336b631a44","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":31,"box":{"x":70,"y":601,"width":810,"height":11}},{"id":"92501288-adcb-4561-a3a3-253d7fe1de16","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":31,"box":{"x":69,"y":616,"width":782,"height":11}},{"id":"47e2d773-aa27-4153-a1f8-db677e50e21f","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":31,"box":{"x":69,"y":631,"width":830,"height":11}},{"id":"4c763a81-c22c-425c-8585-447abd6681f3","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":31,"box":{"x":69,"y":646,"width":828,"height":11}},{"id":"a910c914-57fa-47b9-ae2c-52752b4ac672","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":31,"box":{"x":68,"y":661,"width":834,"height":12}},{"id":"0a20b313-0092-4473-8f3b-6ae2dc66b7bc","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":31,"box":{"x":70,"y":676,"width":777,"height":12}},{"id":"775c97f1-967e-42b4-b254-8ba6ffda1daf","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":31,"box":{"x":70,"y":692,"width":821,"height":11}},{"id":"be98d6a9-ad1c-460e-8d80-b8725e6b3896","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":31,"box":{"x":69,"y":707,"width":819,"height":11}},{"id":"4e473928-f86b-4568-98d0-7eb34a5d6406","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":31,"box":{"x":69,"y":722,"width":832,"height":11}},{"id":"030bfb09-dd26-41b9-be2f-4afe099ec69f","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":31,"box":{"x":68,"y":737,"width":804,"height":11}},{"id":"7b573753-2f19-4f65-a513-5847fa3e9845","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":31,"box":{"x":69,"y":752,"width":760,"height":11}},{"id":"71ba7dfb-4e51-487e-aa3d-c38614deaf07","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":31,"box":{"x":69,"y":767,"width":834,"height":11}},{"id":"e1c3117a-d3cd-4862-8400-6c370c4aa4d5","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":31,"box":{"x":69,"y":782,"width":836,"height":12}},{"id":"0ff9658b-4475-4b86-93a7-74efbe033014","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":31,"box":{"x":69,"y":797,"width":822,"height":12}},{"id":"d0d02881-5e9c-4927-b654-1654a0eea8fc","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":31,"box":{"x":70,"y":812,"width":835,"height":12}},{"id":"727aadfc-2ff6-4238-953b-6ec0da4dc686","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Mr. Menge may be managing hedge fund","page_number":31,"box":{"x":69,"y":828,"width":838,"height":11}},{"id":"b37e48aa-b69f-429c-ae2e-af1e94b3fadc","block_type":"box","text":"and/or long only accounts, or may be par t of a team managing hedge fund and/or long only accounts, subject to","page_number":31,"box":{"x":69,"y":843,"width":802,"height":11}},{"id":"0d0ec65f-49c1-4016-b5d6-98ab837e7d5e","block_type":"box","text":"incentive fees. Mr. Menge may therefore be entitled to receive a por tion of any incentive fees earned on such","page_number":31,"box":{"x":70,"y":858,"width":778,"height":11}},{"id":"faba5c22-3f24-4a36-8328-3e3b736c21e7","block_type":"box","text":"accounts.","page_number":31,"box":{"x":69,"y":874,"width":67,"height":8}},{"id":"b6b38a20-6eee-41cb-ab5d-ce8988b74711","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":31,"box":{"x":101,"y":896,"width":788,"height":11}},{"id":"61d2e2a7-9a48-48ee-bf13-47f1bd9eb217","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":31,"box":{"x":70,"y":911,"width":839,"height":11}},{"id":"bb18a79a-96bd-448d-bac9-93c0584c584d","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0ffbc427-3b3d-4657-a576-061e80621e4a","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":31,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"db1a4051-c6d1-4923-91d9-f3ad9693fcff","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":32,"box":{"x":68,"y":45,"width":823,"height":11}},{"id":"9d0e5002-51c7-4359-8c3b-a78f5f6dec88","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":32,"box":{"x":68,"y":60,"width":812,"height":11}},{"id":"9cfd4da6-9ec2-4de0-accf-00903a663d3e","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":32,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"10eba53e-4fd6-4a89-93ab-39373d7221c4","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":32,"box":{"x":70,"y":90,"width":826,"height":11}},{"id":"02e38326-dd36-4852-af5e-9e17d5302eae","block_type":"box","text":"Accounting Services","page_number":32,"box":{"x":68,"y":120,"width":150,"height":11}},{"id":"a2ba7905-f22b-4a1a-9ae7-8ee5b55834a3","block_type":"box","text":"The Bank of New York Mellon (”BNY Mellon“) serves as the accounting services provider for the Fund. BNY","page_number":32,"box":{"x":101,"y":143,"width":762,"height":11}},{"id":"343c739e-5778-43cb-897f-a509ca1c532b","block_type":"box","text":"Mellon records investment, capital share and income and expense activities; verifies and transmits trade tickets;","page_number":32,"box":{"x":70,"y":158,"width":804,"height":11}},{"id":"d15c73a1-3811-4e3f-8ac8-dbe467bbef11","block_type":"box","text":"maintains accounting ledgers for investment securities; maintains tax lots; reconciles cash with the Fund’s","page_number":32,"box":{"x":69,"y":173,"width":761,"height":11}},{"id":"388736ee-2ce4-4ee8-997f-9eeeeaf67496","block_type":"box","text":"custodian; repor ts cash balances to BlackRock; prepares cer tain financial statements; calculates expenses, gains,","page_number":32,"box":{"x":69,"y":188,"width":821,"height":12}},{"id":"6824a908-cece-42ac-8960-5de6070d097f","block_type":"box","text":"losses and income; controls disbursements; works with independent pricing sources; and computes and repor ts net","page_number":32,"box":{"x":70,"y":204,"width":829,"height":11}},{"id":"c2525580-110d-41b8-abb0-d9dec92402e9","block_type":"box","text":"asset value. In connection with its accounting services, BNY Mellon also provides cer tain administration services.","page_number":32,"box":{"x":69,"y":219,"width":812,"height":11}},{"id":"3620df51-1c0d-4a61-bcd0-bb6046125bba","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY Mellon for accounting services for the periods","page_number":32,"box":{"x":101,"y":241,"width":765,"height":11}},{"id":"dda7e746-f2d6-4731-9b44-0acbda026ec4","block_type":"box","text":"shown:","page_number":32,"box":{"x":69,"y":257,"width":48,"height":8}},{"id":"046cf38f-a4d7-48c5-b6a1-0e50f1a3c1ab","block_type":"box","text":"Fees Paid to BNY Mellon","page_number":32,"box":{"x":765,"y":285,"width":144,"height":7}},{"id":"5d9123c3-5b69-4933-ae2e-5d8a8b4e75cc","block_type":"box","text":"Fiscal Year Ended May 31, 2026 .","page_number":32,"box":{"x":70,"y":302,"width":240,"height":11}},{"id":"f467beef-9b05-4135-af44-28205635f8a0","block_type":"box","text":"....................................................","page_number":32,"box":{"x":316,"y":310,"width":418,"height":1}},{"id":"d61d7d1f-6c3f-4926-9b18-2f3ba6bcc061","block_type":"box","text":"$405,806","page_number":32,"box":{"x":801,"y":302,"width":72,"height":11}},{"id":"88accf9c-b1d5-4144-b9fc-408085e34287","block_type":"box","text":"Fiscal Year Ended May 31, 2025 .","page_number":32,"box":{"x":70,"y":318,"width":240,"height":11}},{"id":"cc112225-9ae6-400a-b13a-0f222e66618d","block_type":"box","text":"....................................................","page_number":32,"box":{"x":316,"y":325,"width":418,"height":1}},{"id":"63f261e1-d8f4-4c0f-8b4a-69b2afa47b88","block_type":"box","text":"$599,412","page_number":32,"box":{"x":801,"y":317,"width":72,"height":11}},{"id":"e27048b2-9e98-49a7-9ae2-3ed96e0207ac","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":32,"box":{"x":70,"y":333,"width":240,"height":11}},{"id":"59c14260-0438-4aa6-a3ba-46abb6ff14a3","block_type":"box","text":"....................................................","page_number":32,"box":{"x":316,"y":340,"width":418,"height":1}},{"id":"e2ca0073-f6b5-404a-8f14-94743f39bfc9","block_type":"box","text":"$681,539","page_number":32,"box":{"x":801,"y":332,"width":72,"height":11}},{"id":"1e5882d0-9938-42ab-b506-0a8a241ac81e","block_type":"box","text":"Custodian","page_number":32,"box":{"x":69,"y":364,"width":72,"height":9}},{"id":"3fda3e5d-ea7e-4806-8662-6e8f3e0d1afc","block_type":"box","text":"BNY Mellon, which has its principal place of business at 240 Greenwich Street, New York, NY 10286, also","page_number":32,"box":{"x":102,"y":387,"width":758,"height":11}},{"id":"63af18dd-8097-476f-b6e2-0377d2fdf479","block_type":"box","text":"serves as the custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities, maintains a","page_number":32,"box":{"x":69,"y":402,"width":810,"height":11}},{"id":"8dc00cd8-878d-4a49-94e8-8e76b13b3eb8","block_type":"box","text":"custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase","page_number":32,"box":{"x":69,"y":417,"width":815,"height":11}},{"id":"0dcb10c5-8cc9-494f-9659-0eebd2a2143f","block_type":"box","text":"and upon sale or maturity, and collects and receives all income and other payments and distributions on account of","page_number":32,"box":{"x":69,"y":432,"width":824,"height":11}},{"id":"b6a15126-d5b7-432a-8c68-e4a6f4550f2b","block_type":"box","text":"the assets of the Fund.","page_number":32,"box":{"x":68,"y":447,"width":165,"height":9}},{"id":"12ab478c-4202-4950-ba8d-97c6caae33de","block_type":"box","text":"Transfer Agent","page_number":32,"box":{"x":68,"y":477,"width":107,"height":12}},{"id":"d07a3559-8123-44b3-89b6-2955eb35ce5b","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":32,"box":{"x":102,"y":500,"width":764,"height":11}},{"id":"3a4996eb-de17-494d-abde-ea5d3b4013fc","block_type":"box","text":"Westborough, MA, serves as transfer agent and dividend disbursing agent for the Fund.","page_number":32,"box":{"x":68,"y":515,"width":623,"height":11}},{"id":"1c721047-a5ba-436d-adeb-0041472ee0f9","block_type":"box","text":"Credit Agreement","page_number":32,"box":{"x":69,"y":546,"width":129,"height":11}},{"id":"674251eb-51bc-4c00-9857-c09fdbfcb303","block_type":"box","text":"The Trust, on behalf of the Fund, along with cer tain other funds managed by the Manager and its affiliates","page_number":32,"box":{"x":101,"y":568,"width":757,"height":11}},{"id":"12bb7def-458b-4369-88b1-3b6d66817f26","block_type":"box","text":"(“Par ticipating Funds”), is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":32,"box":{"x":69,"y":583,"width":817,"height":12}},{"id":"2afecee6-bc41-410a-830d-9c0460c66add","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":32,"box":{"x":68,"y":598,"width":743,"height":12}},{"id":"f845be98-a946-4358-8ab7-bca09554bba2","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up","page_number":32,"box":{"x":69,"y":613,"width":825,"height":12}},{"id":"27b1cfae-3ec7-48e3-ae0c-94eb3f91cd88","block_type":"box","text":"to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":32,"box":{"x":68,"y":628,"width":818,"height":12}},{"id":"6b3e547a-d634-402e-828a-24eebe92a14b","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":32,"box":{"x":70,"y":644,"width":761,"height":11}},{"id":"70281eca-0d55-4bde-988a-78c1a6a33173","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":32,"box":{"x":69,"y":659,"width":768,"height":11}},{"id":"04efe9a0-9650-43bd-b935-6d7261fa2c4e","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses","page_number":32,"box":{"x":68,"y":674,"width":825,"height":11}},{"id":"9d7e6e65-b1b3-4fa7-9c15-f570466f67a7","block_type":"box","text":"and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and","page_number":32,"box":{"x":69,"y":689,"width":805,"height":11}},{"id":"092d41e1-acb5-4dc0-ae06-6429b8ef05ee","block_type":"box","text":"other fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce","page_number":32,"box":{"x":69,"y":704,"width":838,"height":11}},{"id":"eff0381f-159a-4d88-b96f-0ea47f6c3689","block_type":"box","text":"the Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":32,"box":{"x":68,"y":719,"width":801,"height":12}},{"id":"ed91d5c7-2f71-404a-86c8-97f524105ac0","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":32,"box":{"x":69,"y":734,"width":833,"height":12}},{"id":"cb1d0075-d356-4f3c-afeb-bfb4731dedbb","block_type":"box","text":"charged interest at a variable rate.","page_number":32,"box":{"x":69,"y":750,"width":245,"height":11}},{"id":"a851d0f8-7c44-41d1-9159-6553310ff5fc","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":32,"box":{"x":68,"y":780,"width":491,"height":11}},{"id":"95110bb3-6cfb-4c91-b115-55eb01b87234","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":32,"box":{"x":102,"y":802,"width":773,"height":12}},{"id":"8585c672-a12d-4b65-a48b-d7e471d28a7c","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the past three fiscal","page_number":32,"box":{"x":69,"y":818,"width":812,"height":11}},{"id":"fc545576-0e1a-4bfe-b0e2-b4b7475e8581","block_type":"box","text":"years. BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor.","page_number":32,"box":{"x":68,"y":833,"width":706,"height":11}},{"id":"d2b9a6cc-2384-4189-9dcc-b4979efee4e5","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"e0c8ea38-47fa-497f-bbf0-fcc2cf0e4be3","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":32,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"1af8c5fc-8c46-496c-8941-61c35bfd9a7f","block_type":"box","text":"Investor A 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To","page_number":33,"box":{"x":743,"y":95,"width":42,"height":7}},{"id":"605f8cff-4b6c-4894-ab3e-58fc8b89783e","block_type":"box","text":"Affiliates","page_number":33,"box":{"x":738,"y":105,"width":51,"height":7}},{"id":"327ec4db-469d-4698-a578-5dc8daa4ad21","block_type":"box","text":"CDSCs","page_number":33,"box":{"x":847,"y":65,"width":40,"height":7}},{"id":"bccc3c38-9a62-4abf-b23b-34106f24f754","block_type":"box","text":"Received on","page_number":33,"box":{"x":832,"y":75,"width":70,"height":7}},{"id":"76d48418-7e25-410b-ad2e-3fb2b86851a3","block_type":"box","text":"Redemption 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.","page_number":33,"box":{"x":70,"y":153,"width":242,"height":11}},{"id":"90a02ba5-d2e0-472b-9a54-00fa6a15be40","block_type":"box","text":".......................","page_number":33,"box":{"x":319,"y":160,"width":181,"height":2}},{"id":"15ffd62a-7382-4b97-a909-47491b80d22e","block_type":"box","text":"$541,873 $39,427 $39,427 $17,674","page_number":33,"box":{"x":531,"y":152,"width":367,"height":11}},{"id":"d68918a3-1144-4a0a-84ad-8935ca90e3b1","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":33,"box":{"x":70,"y":168,"width":242,"height":11}},{"id":"089c4112-5268-4abf-ac7d-cead0d5269f4","block_type":"box","text":".......................","page_number":33,"box":{"x":319,"y":176,"width":181,"height":1}},{"id":"f12b59e9-8269-45da-8bfe-dd626fc2d833","block_type":"box","text":"$552,522 $38,641 $38,641 $ 3,931","page_number":33,"box":{"x":531,"y":167,"width":367,"height":12}},{"id":"cd4c0f4e-e94c-44e0-8008-11fa110241e4","block_type":"box","text":"Investor C 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$5,190 $5,190","page_number":33,"box":{"x":341,"y":266,"width":568,"height":11}},{"id":"649d25c1-3e3a-4418-81de-d81453719aa1","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . .","page_number":33,"box":{"x":70,"y":282,"width":264,"height":11}},{"id":"ae07235c-a493-42a6-81d4-509d2922ddc4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,573 $6,573","page_number":33,"box":{"x":341,"y":281,"width":568,"height":11}},{"id":"e35beb43-c241-428c-bc1c-a7dd3168ec34","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Fund paid","page_number":33,"box":{"x":101,"y":305,"width":805,"height":12}},{"id":"7b562309-65e8-4631-a149-25c2194d3987","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plan. A por tion of the fees collected by BRIL were paid to affiliates for providing","page_number":33,"box":{"x":68,"y":321,"width":796,"height":11}},{"id":"4d61ba44-c6d1-4eb8-8738-653470e0c354","block_type":"box","text":"shareholder servicing activities for Investor A and Service Shares and for providing shareholder servicing and","page_number":33,"box":{"x":69,"y":336,"width":777,"height":11}},{"id":"1059690c-26dc-44b0-aa79-b1f85ba0554c","block_type":"box","text":"distribution related activities and services for Investor C and Class R Shares.","page_number":33,"box":{"x":69,"y":351,"width":549,"height":9}},{"id":"135a773a-4a2a-4ccf-a55d-857fdd1d434d","block_type":"box","text":"Class Name","page_number":33,"box":{"x":69,"y":379,"width":68,"height":7}},{"id":"e8993f84-156e-4d0c-968c-8d7742b1ed1c","block_type":"box","text":"Fees Paid to BRIL","page_number":33,"box":{"x":806,"y":379,"width":103,"height":7}},{"id":"c5547d95-96c2-4771-a71a-2e2d1f18695e","block_type":"box","text":"Investor A Shares .","page_number":33,"box":{"x":70,"y":397,"width":134,"height":9}},{"id":"324e5870-e7f8-4cee-889e-d27409e64369","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,","page_number":33,"box":{"x":210,"y":396,"width":626,"height":11}},{"id":"85260059-b62b-46a4-b1e4-4b2acb2e56a5","block_type":"box","text":"457,338","page_number":33,"box":{"x":838,"y":397,"width":63,"height":10}},{"id":"4f49dc7d-02f8-4681-8027-83631327f05f","block_type":"box","text":"Investor C Shares . . .","page_number":33,"box":{"x":70,"y":412,"width":150,"height":9}},{"id":"f69524df-7c0a-43a2-97d3-1d9a4f154704","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":33,"box":{"x":226,"y":411,"width":610,"height":11}},{"id":"94e22809-dc20-4b90-825e-62fa2b3aabc7","block_type":"box","text":"242,152","page_number":33,"box":{"x":839,"y":412,"width":61,"height":10}},{"id":"73bbef80-f386-453f-9a6b-49feff5e7d90","block_type":"box","text":"Class R Shares","page_number":33,"box":{"x":69,"y":427,"width":109,"height":9}},{"id":"46cd9003-e1be-4312-a643-865b9c109c22","block_type":"box","text":"......................................................................... $","page_number":33,"box":{"x":185,"y":426,"width":637,"height":11}},{"id":"f368dfa9-fc2c-4b8e-9079-75903005a3db","block_type":"box","text":"287,382","page_number":33,"box":{"x":839,"y":427,"width":61,"height":10}},{"id":"7dfcc7b3-3a39-4c04-b086-dfb3d85a6059","block_type":"box","text":"Service Shares . .","page_number":33,"box":{"x":69,"y":442,"width":126,"height":9}},{"id":"10aa8354-3fd5-4da6-8e66-3f1429497212","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,873","page_number":33,"box":{"x":202,"y":441,"width":699,"height":12}},{"id":"2eead41d-73ee-4a5e-9acd-1b61da21e3d6","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":33,"box":{"x":68,"y":474,"width":318,"height":11}},{"id":"9e7033bb-ccdc-406b-96bf-4a71580458c7","block_type":"box","text":"An illustration of the computation of the offering price of the Investor A Shares of the Fund based on the value of","page_number":33,"box":{"x":101,"y":496,"width":805,"height":12}},{"id":"e78652b7-20f4-4d7a-9b0c-e3b61fdede6a","block_type":"box","text":"the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on May 31, 2026, is set","page_number":33,"box":{"x":68,"y":511,"width":827,"height":12}},{"id":"eb6197d6-1e2d-4e72-a2b4-83e86eec2c2b","block_type":"box","text":"for th below.","page_number":33,"box":{"x":68,"y":526,"width":83,"height":10}},{"id":"d83cf585-0fb2-490b-8626-012830dd62a1","block_type":"box","text":"Investor A Shares","page_number":33,"box":{"x":798,"y":555,"width":102,"height":7}},{"id":"2ae3142d-0aa9-426a-b858-96a5a42d292c","block_type":"box","text":"Net Assets","page_number":33,"box":{"x":70,"y":573,"width":76,"height":9}},{"id":"ebffa5a9-a6d6-4d4d-b3cb-bb65e51fc0a3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,311,","page_number":33,"box":{"x":160,"y":572,"width":685,"height":11}},{"id":"a76ff2e2-5551-48ec-ad6e-4290b949a144","block_type":"box","text":"678,627","page_number":33,"box":{"x":847,"y":573,"width":61,"height":10}},{"id":"c5596500-f986-4f39-a54d-b53d54e88b02","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":588,"width":320,"height":11}},{"id":"86e071d5-f83d-49e3-8e4b-e182133e8d2a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,","page_number":33,"box":{"x":396,"y":588,"width":449,"height":10}},{"id":"9ee72068-029f-438e-9a51-0ab0d964ffe1","block_type":"box","text":"890,186","page_number":33,"box":{"x":847,"y":588,"width":62,"height":10}},{"id":"64ca2844-a16e-4ccb-a0d6-b692422cc349","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":33,"box":{"x":70,"y":603,"width":571,"height":11}},{"id":"89f77902-74e0-4894-9cea-9547b392257d","block_type":"box","text":"..............","page_number":33,"box":{"x":649,"y":610,"width":108,"height":2}},{"id":"bdd3288f-41a7-472a-aa7b-61ac289de620","block_type":"box","text":"$32.08","page_number":33,"box":{"x":857,"y":602,"width":52,"height":11}},{"id":"957754f4-a14a-4186-aa7d-873d34c22031","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":33,"box":{"x":69,"y":618,"width":534,"height":11}},{"id":"b48feafa-01b0-40d1-96f7-b232d01c9bb5","block_type":"box","text":"1","page_number":33,"box":{"x":604,"y":618,"width":4,"height":5}},{"id":"3c1a3f4b-6941-43c3-8efa-e3d9235a9c2e","block_type":"box","text":". . . . . . . . . . . . . . . . . . 1.78","page_number":33,"box":{"x":616,"y":618,"width":293,"height":9}},{"id":"7dbf7fbb-6c69-4713-a715-32105332f1c0","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":69,"y":637,"width":687,"height":12}},{"id":"db0c8796-2313-4691-a5bc-544b185ba4d9","block_type":"box","text":"$33.86","page_number":33,"box":{"x":857,"y":637,"width":52,"height":10}},{"id":"ab086d7a-7171-46fe-982e-aa7606900dad","block_type":"box","text":"1","page_number":33,"box":{"x":69,"y":670,"width":3,"height":3}},{"id":"adb20063-0c55-4a05-a0b3-5c3f02d9ef3d","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":33,"box":{"x":94,"y":670,"width":541,"height":8}},{"id":"3476bd74-7195-486f-bfec-411e088d48b7","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’s net asset value computed as","page_number":33,"box":{"x":101,"y":690,"width":796,"height":12}},{"id":"7bbdcc78-2c12-4e2e-94cc-a14e6741922a","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":33,"box":{"x":69,"y":705,"width":833,"height":12}},{"id":"c0ba5807-5d8b-4786-a7b2-05dfc92a8c8f","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":33,"box":{"x":69,"y":721,"width":813,"height":11}},{"id":"022cc7fd-35b7-4dbf-916b-df1ac1d3a73b","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":33,"box":{"x":69,"y":736,"width":377,"height":11}},{"id":"e7a31b73-fe57-4528-ad24-c8e0e9013aa3","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":33,"box":{"x":68,"y":766,"width":302,"height":11}},{"id":"7abc6a98-5fd1-4d7f-bd7d-c25a25b1011f","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":33,"box":{"x":102,"y":789,"width":609,"height":11}},{"id":"cb5fbcb5-921d-4acc-9408-f33edf6d5ee4","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, during","page_number":33,"box":{"x":102,"y":811,"width":798,"height":12}},{"id":"2f40fdcf-726b-47de-9e77-773e1d2d2f01","block_type":"box","text":"the periods shown is set for th in the following table:","page_number":33,"box":{"x":68,"y":826,"width":371,"height":12}},{"id":"03c64ba7-3829-40c3-83da-942e35705047","block_type":"box","text":"Aggregate Brokerage","page_number":33,"box":{"x":613,"y":855,"width":125,"height":8}},{"id":"af59bfd4-5b6f-4e11-b282-d2511604e628","block_type":"box","text":"Commissions Paid","page_number":33,"box":{"x":623,"y":865,"width":106,"height":7}},{"id":"5ab6d7fa-49fb-44cd-a518-cee21c64c8e2","block_type":"box","text":"Brokerage Commissions","page_number":33,"box":{"x":769,"y":855,"width":140,"height":8}},{"id":"cff14aad-1e08-44be-85ec-c95f009325a3","block_type":"box","text":"Paid to Affiliates","page_number":33,"box":{"x":791,"y":865,"width":96,"height":7}},{"id":"f22dd5d0-7c63-4ff3-83fb-88662ba27d85","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":33,"box":{"x":70,"y":883,"width":292,"height":11}},{"id":"76a132f8-bdcf-45bd-ad32-5ae12a8f32aa","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $3,","page_number":33,"box":{"x":369,"y":882,"width":286,"height":11}},{"id":"af7b30ff-f3ea-4e8f-bee1-9fe16204c87c","block_type":"box","text":"721,671 $0","page_number":33,"box":{"x":657,"y":882,"width":191,"height":11}},{"id":"b7edf943-b5e6-4dbe-a700-1d3a84d9fbe3","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . .","page_number":33,"box":{"x":70,"y":898,"width":292,"height":11}},{"id":"fadbcc5a-7bd2-4868-976f-65730286bf25","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $4,","page_number":33,"box":{"x":369,"y":897,"width":286,"height":11}},{"id":"63e3b5f7-16b5-44ea-a428-c20964e482cf","block_type":"box","text":"528,756 $0","page_number":33,"box":{"x":657,"y":897,"width":191,"height":11}},{"id":"f2f38bf8-6d49-4711-b93a-8814595136ab","block_type":"box","text":"I-24","page_number":33,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"d2192a51-d4d2-4bef-85d6-1d4c29984604","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":33,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"4ce31247-3110-419c-b19f-6a4f12f39f94","block_type":"box","text":"Aggregate Brokerage","page_number":34,"box":{"x":613,"y":49,"width":125,"height":9}},{"id":"cd53ccd7-ddad-4a69-82f7-9909969a243a","block_type":"box","text":"Commissions Paid","page_number":34,"box":{"x":623,"y":59,"width":106,"height":7}},{"id":"277267ac-304b-4f67-b286-2a7fabc01190","block_type":"box","text":"Brokerage Commissions","page_number":34,"box":{"x":769,"y":49,"width":140,"height":9}},{"id":"0542efca-ff4f-4ba8-8c63-307a86f858a1","block_type":"box","text":"Paid to Affiliates","page_number":34,"box":{"x":791,"y":59,"width":96,"height":7}},{"id":"74dfff0c-e147-4a1d-be9f-e6bd6e949481","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":34,"box":{"x":70,"y":77,"width":292,"height":11}},{"id":"fc6ee04a-d73d-4ea7-8111-b52067a576c2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $2,","page_number":34,"box":{"x":369,"y":76,"width":286,"height":11}},{"id":"44047187-91b3-40df-986d-74e09c1c413c","block_type":"box","text":"859,499 $0","page_number":34,"box":{"x":657,"y":76,"width":191,"height":11}},{"id":"680786af-98d5-470f-aab6-2738539ed775","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":34,"box":{"x":101,"y":101,"width":770,"height":11}},{"id":"5a5281e8-e156-4a8d-90fb-58d4a8e339fa","block_type":"box","text":"28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as amended, and","page_number":34,"box":{"x":69,"y":116,"width":814,"height":11}},{"id":"ce281bc8-0050-49f6-ba57-b11175800f72","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026. The provision of","page_number":34,"box":{"x":68,"y":131,"width":829,"height":11}},{"id":"42761059-ef45-434e-9c8f-b7d727928846","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":34,"box":{"x":69,"y":146,"width":822,"height":11}},{"id":"0758be35-0e6a-45b1-9e95-bf676796eaa4","block_type":"box","text":"with such brokers.","page_number":34,"box":{"x":68,"y":161,"width":130,"height":9}},{"id":"fa46c1dc-dc2a-42f0-a18e-498b6a3981a5","block_type":"box","text":"Amount of Commissions","page_number":34,"box":{"x":325,"y":189,"width":141,"height":8}},{"id":"e25aa5b8-6a03-427c-8a90-2d4d4246ade0","block_type":"box","text":"Paid to Brokers for","page_number":34,"box":{"x":341,"y":200,"width":109,"height":7}},{"id":"87b9fccc-adcc-4ca6-b9ae-fe6755c3a983","block_type":"box","text":"Providing 28(e) Eligible","page_number":34,"box":{"x":327,"y":210,"width":136,"height":8}},{"id":"d5fd0479-3ae1-4e46-bf25-c642cf512bb0","block_type":"box","text":"Research Services","page_number":34,"box":{"x":342,"y":220,"width":107,"height":7}},{"id":"ea70e64e-e764-4895-8c7c-a49db4f8a269","block_type":"box","text":"Amount of Brokerage","page_number":34,"box":{"x":528,"y":210,"width":124,"height":8}},{"id":"e57c73c4-4080-4bcf-8bc3-b32bf01b8c96","block_type":"box","text":"Transactions Involved","page_number":34,"box":{"x":527,"y":220,"width":126,"height":7}},{"id":"fe20468b-69f7-44a1-9f5d-14fe98d69c08","block_type":"box","text":"$2,198,915 $8,472,096,069","page_number":34,"box":{"x":352,"y":237,"width":298,"height":11}},{"id":"420a5471-67a2-49f2-a50c-7abdc4c4fcf3","block_type":"box","text":"As of May 31, 2026, the Fund held no securities of its regular brokers or dealers (as defined in Rule 10b-1 under","page_number":34,"box":{"x":101,"y":261,"width":808,"height":12}},{"id":"9f646da2-e36b-43bf-85cb-0c42163ab78a","block_type":"box","text":"the Investment Company Act) or their parents whose shares were purchased during the fiscal year ended","page_number":34,"box":{"x":68,"y":276,"width":748,"height":12}},{"id":"a08959c1-db07-4843-8d54-641a69d15f25","block_type":"box","text":"May 31, 2026.","page_number":34,"box":{"x":70,"y":292,"width":104,"height":11}},{"id":"2e1a5a09-45f3-4308-9779-89f26119bb56","block_type":"box","text":"Securities Lending","page_number":34,"box":{"x":68,"y":322,"width":135,"height":11}},{"id":"0dccbde0-1ee3-4365-a58e-4330d9441389","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":34,"box":{"x":101,"y":345,"width":807,"height":11}},{"id":"b57bd566-5e03-40e9-94c6-bdae0393c03d","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":34,"box":{"x":69,"y":360,"width":817,"height":11}},{"id":"fca45bd3-34e9-4fbe-905e-d38ba0d95047","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":34,"box":{"x":69,"y":375,"width":813,"height":11}},{"id":"e9a81c04-b687-4034-b225-81ab0c510ea1","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":34,"box":{"x":70,"y":390,"width":838,"height":11}},{"id":"98441363-07b6-4be1-add3-18d41f1de456","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":34,"box":{"x":69,"y":405,"width":813,"height":11}},{"id":"327f143b-ae2c-43a4-9bd2-06caef8b5ceb","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":34,"box":{"x":70,"y":420,"width":646,"height":11}},{"id":"9c163060-d33d-4304-a3cf-5a97a85248cc","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":34,"box":{"x":101,"y":443,"width":735,"height":11}},{"id":"a497d720-8e43-424c-95b5-3479ba730a9a","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":34,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"6cfdd5a3-b6aa-4610-98b5-68d9dc497660","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":34,"box":{"x":70,"y":473,"width":822,"height":11}},{"id":"95072e93-6c2f-4442-b18d-5bdb829ee4aa","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":34,"box":{"x":69,"y":488,"width":787,"height":11}},{"id":"3a6e2ee4-9eb6-4fc6-8dca-bab826674b8c","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":34,"box":{"x":69,"y":503,"width":783,"height":12}},{"id":"55f816ab-38d5-48df-8c84-7628b0fe99df","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":34,"box":{"x":70,"y":518,"width":800,"height":12}},{"id":"1323df4e-b92e-4992-9f5c-53cc2285006d","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":34,"box":{"x":70,"y":533,"width":813,"height":12}},{"id":"38f846b5-9957-43e8-8923-fc3abafc69dc","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate","page_number":34,"box":{"x":70,"y":549,"width":830,"height":11}},{"id":"b4eb3d70-b6ca-466a-8a6f-edb38a2975c9","block_type":"box","text":"of 0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":34,"box":{"x":69,"y":564,"width":773,"height":11}},{"id":"7c736e8c-df71-4614-955a-fba74834fb1e","block_type":"box","text":"To the extent that the Fund invests cash collateral in a non-government money market fund, the Fund may be","page_number":34,"box":{"x":101,"y":586,"width":776,"height":12}},{"id":"c72e35e0-9be4-499c-8cfb-74b40e09cbad","block_type":"box","text":"subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or","page_number":34,"box":{"x":69,"y":601,"width":831,"height":12}},{"id":"5705badf-0834-4e4e-8adc-e6990fc2f547","block_type":"box","text":"terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is","page_number":34,"box":{"x":68,"y":617,"width":812,"height":11}},{"id":"c8e7e927-5e99-4377-8ed5-b1cc86627226","block_type":"box","text":"determined that such fee would be, or would not be, respectively, in the best interest of the money market fund.","page_number":34,"box":{"x":69,"y":632,"width":799,"height":11}},{"id":"760120d5-3c46-44c1-82a6-d000136aaa62","block_type":"box","text":"Additionally, the Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on","page_number":34,"box":{"x":68,"y":647,"width":835,"height":11}},{"id":"ad392940-7d30-4f32-a7dd-6c182f87bd29","block_type":"box","text":"a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less","page_number":34,"box":{"x":69,"y":662,"width":818,"height":11}},{"id":"40ff50e6-08fe-47d6-a824-5ef9801e7361","block_type":"box","text":"than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":34,"box":{"x":68,"y":677,"width":789,"height":11}},{"id":"2ff6abdd-3394-411a-a338-d5b0bf93402f","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":34,"box":{"x":69,"y":692,"width":829,"height":11}},{"id":"e53addb0-9331-4cb8-9c61-69b062090d69","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":34,"box":{"x":69,"y":707,"width":839,"height":11}},{"id":"9a10e17b-fd8e-4282-a1cd-fe2db889939b","block_type":"box","text":"mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each","page_number":34,"box":{"x":69,"y":722,"width":802,"height":12}},{"id":"f789b938-750d-4875-9cc9-599bc2e76a91","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":34,"box":{"x":70,"y":738,"width":830,"height":11}},{"id":"373885e6-33d9-4064-9d84-8805ea846883","block_type":"box","text":"of shares redeemed on that day. The imposition of any such discretionary or mandatory liquidity fee would reduce the","page_number":34,"box":{"x":69,"y":753,"width":838,"height":11}},{"id":"3f76ac04-e42f-4af6-9a4f-7ca9cd972e55","block_type":"box","text":"Fund’s returns on securities lending.","page_number":34,"box":{"x":70,"y":768,"width":258,"height":11}},{"id":"04f93d4e-d936-40b5-adb7-747280e1f6fc","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":34,"box":{"x":102,"y":790,"width":774,"height":12}},{"id":"4d3431ca-328f-4154-a58a-0a0c6ee8ba60","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":34,"box":{"x":69,"y":806,"width":790,"height":11}},{"id":"324ad8de-f2ba-4b4c-b81a-1675aa7c9da8","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by the","page_number":34,"box":{"x":68,"y":821,"width":809,"height":11}},{"id":"f87dbefe-d249-4a3f-8146-ea7317a8c1bd","block_type":"box","text":"Trust and BIM.","page_number":34,"box":{"x":68,"y":836,"width":103,"height":9}},{"id":"9d06d0ff-9525-4173-8366-23b230b4691c","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":34,"box":{"x":102,"y":858,"width":783,"height":12}},{"id":"d1240bf6-3878-4d05-a720-124f2b6a549d","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":34,"box":{"x":70,"y":874,"width":815,"height":11}},{"id":"df2a929e-969e-4b9c-9f22-9cdec8dedb0e","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":34,"box":{"x":69,"y":889,"width":463,"height":11}},{"id":"75c4855e-5b05-45a6-869a-9a243a069286","block_type":"box","text":"I-25","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b69ecbb3-f9d1-4ffd-8369-da4c7605ea1e","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":34,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"9d44ed07-bd61-4e1d-b46b-d3e142ba384f","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":35,"box":{"x":102,"y":45,"width":753,"height":11}},{"id":"e8e3d9da-6752-411a-b7e6-5145df12ddff","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":35,"box":{"x":69,"y":60,"width":778,"height":11}},{"id":"e6cd0c9e-9d40-4736-9200-e444cc4304e0","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":35,"box":{"x":70,"y":75,"width":817,"height":11}},{"id":"987695fa-72ac-431f-9241-c6f0c100ff9d","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":35,"box":{"x":70,"y":90,"width":794,"height":11}},{"id":"4f906f5e-b890-4a51-ab30-c29ff1996f68","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":35,"box":{"x":69,"y":105,"width":825,"height":11}},{"id":"72e3b664-2833-42fe-a9a5-84c353d724d1","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":35,"box":{"x":102,"y":128,"width":683,"height":11}},{"id":"4c0241d2-6d4c-4efb-9431-d11ed472a66f","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended May 31, 2026, primarily included","page_number":35,"box":{"x":101,"y":150,"width":803,"height":12}},{"id":"eadb113f-01c9-4979-978d-95822feae948","block_type":"box","text":"the following:","page_number":35,"box":{"x":68,"y":166,"width":93,"height":11}},{"id":"acc4386f-d752-4fa7-910a-6cce9a8b2435","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":35,"box":{"x":69,"y":186,"width":818,"height":11}},{"id":"796861ff-445a-456a-807f-8884c4b16d10","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":35,"box":{"x":102,"y":201,"width":333,"height":10}},{"id":"080a9deb-225f-431a-a517-141f8331d8dc","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":35,"box":{"x":69,"y":221,"width":538,"height":11}},{"id":"d788641f-a9b6-4f1b-9581-57caa98e8e7b","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":35,"box":{"x":69,"y":241,"width":330,"height":11}},{"id":"c5083662-2b18-4ad5-8ebb-c8e235c5af51","block_type":"box","text":"(4) monitoring the daily value of the loaned securities and directing the payment of additional collateral or the return","page_number":35,"box":{"x":69,"y":261,"width":834,"height":12}},{"id":"79091acc-46b9-449f-9fb3-0194f7d7caeb","block_type":"box","text":"of excess collateral, as necessary;","page_number":35,"box":{"x":102,"y":276,"width":246,"height":12}},{"id":"f8775c92-c265-4ad3-8788-cf1c538417c3","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":35,"box":{"x":69,"y":297,"width":562,"height":11}},{"id":"f218bb3a-e910-4b52-b75d-4441b9720443","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":35,"box":{"x":69,"y":317,"width":665,"height":11}},{"id":"9985a632-128e-4de3-939b-ee7be05067e7","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":35,"box":{"x":69,"y":337,"width":822,"height":11}},{"id":"6e030045-49d7-4ec9-a577-4ea4aaf5033c","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":35,"box":{"x":101,"y":352,"width":803,"height":11}},{"id":"c5693d76-5e7b-4273-bf47-3a320c96bee9","block_type":"box","text":"of the loaned securities; and","page_number":35,"box":{"x":102,"y":367,"width":203,"height":11}},{"id":"d74093d0-3a18-4598-a4e6-3ffc8f0a7dd1","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":35,"box":{"x":69,"y":387,"width":808,"height":12}},{"id":"3dcecf18-ec51-4646-9c0e-fac1866ec59a","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":35,"box":{"x":101,"y":410,"width":805,"height":11}},{"id":"bd143b75-8908-4e4b-a94c-c0b5bbcbeaae","block_type":"box","text":"activities of the Fund during the fiscal year ended May 31, 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For ease and clarity of presentation, shares of common","page_number":39,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"b3002768-17c8-4c6e-a93f-ce0291236a9a","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":39,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"053ab776-96b7-4046-9315-90b3fb1aa1d1","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":39,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"e703631f-f779-41db-bc74-d091661c9f6a","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":39,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"134e8abe-7670-4cc3-bea9-28999fbdfd96","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":39,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"96759427-2409-49f3-a056-af229dac9529","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":39,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"c9785ea9-a530-4b97-a628-aec5706a36f2","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":39,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"0f9e34bb-772a-4e79-9e47-dae194fbb2b4","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":39,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"7cc7c75e-b48c-4f20-b483-068a03c8d356","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":39,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"f5a35316-13e4-4ab7-b9ea-b39d713808a1","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":39,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"33379522-c729-4d71-a496-d66a8d8aae12","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":39,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"048b6a90-a5e3-4701-91c8-7b1cca74651a","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":39,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"727f5a3f-737f-42b9-96c7-c58b031c5a37","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":39,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"a9717673-44a2-426b-9950-38070ff49f67","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":39,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"3b9ef6e5-6444-4c40-b5d8-ab9e6fdab963","block_type":"box","text":"made at the level of the Master Por tfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":39,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"ca379461-24f2-4a0f-84d7-67f884369b51","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":39,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"04e036fa-ae9b-43c4-a3e3-ce6f58da393c","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":39,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"e9b14663-63b8-48a4-adb2-b7387448f707","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":39,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"36eacf22-1d8e-46c7-b158-4cbcf95be2d5","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":39,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"4e6b8402-d6ae-4c72-9555-9c876ef20685","block_type":"box","text":"par ticular Fund.","page_number":39,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"eb106b25-3974-4167-937a-dd2b0ae0b2e2","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":39,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"6634234d-52dc-4da7-9ae0-99898888f59e","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":39,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"9ca12b99-6d02-4fb5-b70b-e83329d6cb63","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":39,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"02553a23-1cae-4743-be09-c1912b20adda","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":39,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"108fcc61-aefd-4b78-b377-e4573a8b5029","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":39,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"8849bb12-8877-4c73-9c15-0010bf4f8a14","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":39,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"5505a01a-5b25-41a0-9fc4-3d24478d8c2b","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":39,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"00b4fb02-fc05-41ee-a8a8-17980488a6dc","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":39,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"691b12c4-fc2b-45e2-a3fc-75c3ff635533","block_type":"box","text":"each investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does not form","page_number":39,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"ee12b795-a4f8-40cc-af66-b26c507b7e3c","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":39,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"954ed345-dc93-4692-9549-33428e051aaf","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":39,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"633a4686-c13d-4d05-b191-8aa6c98f2e4b","block_type":"box","text":"Asset-Backed Securities.","page_number":39,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"1c795481-e7b4-4232-aa15-e1091eeb1572","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":39,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"e7427afd-66dd-4314-9e92-2adb3a0c298b","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":39,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"cddcba0b-21a2-4fe5-b11a-2671d3aff9a3","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":39,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"5702cda9-33f3-4765-b1f2-f082c24cfc9d","block_type":"box","text":"credit card receivables) are passed through to a Fund. The value of asset-backed securities, like that of traditional","page_number":39,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"d5906e80-af33-40bc-b2c5-fc026a531d1e","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":39,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"43bf61af-088a-41c4-a138-ed6a5907e283","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":39,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"271dc794-0b10-4b23-a4b4-f7609eb5d4d4","block_type":"box","text":"price paid by a Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and","page_number":39,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"5a644282-e320-4b44-bc42-d2b41e7552a4","block_type":"box","text":"the average life of the securities are based on a number of factors, including the anticipated rate of prepayment of","page_number":39,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"018d1fcd-a753-4374-a1c3-9976a4745ee7","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":39,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"d6908d37-6106-4332-9f87-8be6f24dab87","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":39,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"6765212f-e621-4021-ad58-4045de3919e2","block_type":"box","text":"Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely receive a rate of","page_number":39,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"8c1c11d5-3010-4669-ab0f-7cf7edffd126","block_type":"box","text":"interest that is lower than the rate on the security that was prepaid. To the extent that a Fund purchases asset","page_number":39,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"0d52698f-c903-4900-928e-9ec2c42570e8","block_type":"box","text":"backed securities at a premium, prepayments may result in a loss to the extent of the premium paid. If a Fund buys","page_number":39,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"fbf1bd6d-24ab-4181-9427-dd526ebee3e9","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":39,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"7a6044bc-a570-4b91-941d-52f76333ccc0","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":39,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"3b583e01-2344-49f2-8271-c75c88c7a127","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":39,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"4d37a3bf-5d24-4368-a649-437eff2e2871","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":39,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"a45fd58c-e135-4ba4-a383-70c079090630","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":39,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"625ee139-77a2-4410-b114-1eae366a5699","block_type":"box","text":"II-1","page_number":39,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"339a9152-4c1f-47f0-a6a5-3d05c357490c","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":39,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"84210d98-39d0-4a9c-8ed0-f609d4782185","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":40,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"6a33ff08-5937-48fd-b196-77ab35567ebf","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":40,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"46708139-293c-46e3-b00d-8feadbf256f4","block_type":"box","text":"interest rates decline, the value of an asset-backed security with prepayment features may not increase as much as","page_number":40,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"69903279-cbc3-4fd3-afb2-bf747aa28103","block_type":"box","text":"that of other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate or","page_number":40,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"e92334d6-118d-4a9f-bcbb-1bdc547692a6","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":40,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"65cc90e5-119b-4fa0-b411-38016390f402","block_type":"box","text":"Asset-Based Securities.","page_number":40,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"b52a7ff9-c58d-4b63-b0a6-f1562c995f9f","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":40,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"c2cac3b9-93ef-4ca2-9b37-f2d32092c4f5","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":40,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"9cb4b67b-a5f8-4f15-a577-62b7a144d459","block_type":"box","text":"asset such as gold bullion. These securities are referred to as “asset-based securities.” A Fund will purchase only","page_number":40,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"a75ba442-2d6e-4f4a-9397-1e2107364719","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":40,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"04e3a17b-9f76-4afb-941e-c17a78adde23","block_type":"box","text":"investment grade (for example, AAA, AA, A or BBB by S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by","page_number":40,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"23f63ee0-b9b8-4970-8083-74f8dd2ce063","block_type":"box","text":"Moody’s Investors Service, Inc. (“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by","page_number":40,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"60d0274a-bc28-4049-8dfc-5c6a78e296c2","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":40,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"f010c5e4-4815-4841-b1c7-593441f9e7f2","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":40,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"495f6841-e972-4311-afb1-c57a707085c9","block_type":"box","text":"likely to be downgraded than securities rated in the three highest rating categories. If an asset-based security is","page_number":40,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"2192e700-1702-4de6-9b63-ad1a6d8708b9","block_type":"box","text":"backed by a bank letter of credit or other similar facility, the Manager may take such backing into account in","page_number":40,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"c644d3f6-ba24-49e6-a611-6c7f3f0af25e","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":40,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"4e3c961a-a9a2-42f7-b816-ce813d105270","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":40,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"024e1e5b-ed94-4d17-8d21-b791c21f8b10","block_type":"box","text":"the two price movements. Asset-based securities may not be secured by a security interest in or claim on the","page_number":40,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"74a5bdcf-97d1-4474-8e3b-e637a7b29834","block_type":"box","text":"underlying natural resource asset. The asset-based securities in which a Fund may invest may bear interest or pay","page_number":40,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"f5b87ca7-84c6-472a-b575-4cc0d8da1a4d","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":40,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"f352862f-fe02-4b35-b27d-3c7981347176","block_type":"box","text":"at maturity in cash at the stated principal amount or, at the option of the holder, directly in a stated amount of the","page_number":40,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"07830278-0eba-4e99-9134-26613f8c9daa","block_type":"box","text":"asset to which it is related. In such instance, because no Fund presently intends to invest directly in natural resource","page_number":40,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"91ee2316-18b3-46c6-b0ba-4bea3243e191","block_type":"box","text":"assets, a Fund would sell the asset-based security in the secondary market, to the extent one exists, prior to","page_number":40,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"c5f87679-c0ec-4205-8640-153f70def815","block_type":"box","text":"maturity if the value of the stated amount of the asset exceeds the stated principal amount and thereby realize the","page_number":40,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"2ae57136-fd3a-4e9b-b158-e8f330defa1a","block_type":"box","text":"appreciation in the underlying asset.","page_number":40,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"03c5cda3-ff53-48a3-9b2a-d648b05a9e08","block_type":"box","text":"Precious Metal-Related Securities.","page_number":40,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"6a8d915b-da7e-4e12-8e25-078f88523973","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":40,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"af06d4c8-c6c9-47db-ae26-6d9296ccd46d","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":40,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"04fac745-5cff-4368-ab03-55ed1ba0a5bd","block_type":"box","text":"e.g.","page_number":40,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"e4dcb6cc-7bb4-4307-aa66-fed0e5e56e54","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":40,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"94437d7c-4f1c-4984-a8ec-cac7652e2cc6","block_type":"box","text":"indexed to the value of such metals. Such securities may be purchased when they are believed to be attractively","page_number":40,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"ab80924d-8494-48a7-bcb7-477fc2f01cc6","block_type":"box","text":"priced in relation to the value of a company’s precious metal-related assets or when the values of precious metals","page_number":40,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"48f1ca5f-9fb5-49c2-902b-55342c7d93bc","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":40,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"ae90f6e5-ad35-48ff-afd1-9ff02f9586d7","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":40,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"c86a7df5-7c92-4144-9c3e-082f2f24eb0f","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":40,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"5d7acb7e-67be-404e-9ecd-8a5e28592572","block_type":"box","text":"metal prices during such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":40,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"61436f83-caf6-4b7e-9ffb-315c184c8913","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":40,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"8dd26c46-8e3e-43cb-b876-8d9f3e38130b","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":40,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"8a21fd95-41d9-40fa-a4ed-82a0a043fd55","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":40,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"9e355a0d-7faf-4b2b-8c24-428fa438f6d0","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":40,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"36e8b7e7-9134-419c-bc11-b72ea47fde5b","block_type":"box","text":"South African gold production.","page_number":40,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"76465293-d0b9-4999-8cb1-b26c1cefef92","block_type":"box","text":"Borrowing and Leverage.","page_number":40,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"756716ca-8033-4f87-9827-82f818961640","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":40,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"fab7880d-f9cf-4bce-b8c9-361896d30664","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":40,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"82116d3b-e118-4659-8331-207eb75f1c8e","block_type":"box","text":"securities at any time when borrowings exceed 5% of their total assets, except (a) to honor prior commitments or","page_number":40,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"81339d8e-99ce-4e7d-8fc9-b655195a97b4","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":40,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"f9c28bb5-8b25-4137-aa70-4d6525b159bb","block_type":"box","text":"other securities transactions.","page_number":40,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"a79d3fe6-7922-4686-bcdd-9b0e477bfd2e","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":40,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"3cd5e470-55b6-4af4-a0ae-a91d8851f7b0","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":40,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"95b82565-a4cd-4eda-b734-da74eca594ed","block_type":"box","text":"leveraging increases the Fund’s exposure to capital risk, and borrowed funds are subject to interest costs that will","page_number":40,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"f2f3a999-ba9c-497a-a812-a007836e8e3c","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":40,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"4379be7d-f33b-4621-9ef8-827a8458671c","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":40,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"0719f404-6151-4d5a-a4b7-4f9715a85b56","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":40,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"1afa0e31-dc78-4e92-b904-5337fb37baa5","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":40,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"2ffff78a-93dc-4588-8230-baeba79ca91b","block_type":"box","text":"for the Fund that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":40,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"eb6b5a92-ad2d-4ec1-9959-eca0d0b633f2","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":40,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"3cc9e9de-fd87-46cb-b5d1-7e964f7786bf","block_type":"box","text":"pay on the borrowings, the Fund’s return will be greater than if leverage had not been used. Conversely, if the income","page_number":40,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"4efc25d9-444d-4d5b-a85d-469bc332f3b4","block_type":"box","text":"or capital appreciation from the securities purchased with such borrowed funds is not sufficient to cover the cost of","page_number":40,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"4a8789c4-22d4-4016-a133-2ebafce89726","block_type":"box","text":"borrowing, the return to the Fund will be less than if leverage had not been used and, therefore, the amount available","page_number":40,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"f256e20f-8b39-4f5f-a271-902883d1b3f6","block_type":"box","text":"for distribution to shareholders as dividends will be reduced. In the latter case, the Manager in its best judgment","page_number":40,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"05d50134-f766-4e55-b6a4-a8c500ac8487","block_type":"box","text":"II-2","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f6c22c5a-0446-4e29-923d-d9777ff1a526","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":40,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"ad1c6910-0088-4c37-a365-da5dcc0e2e9c","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":41,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"086bb006-9b26-4dd8-87ae-70b7ba1ea441","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":41,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"01599c10-2185-4a2b-a85d-e88e327f4dc0","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":41,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"7725041e-44a6-40a6-af8b-011383ed1287","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":41,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"35cec833-c2a5-46ed-b17e-03633ff593bb","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":41,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"78ec8223-1e17-4c12-9d24-155c5bba394a","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":41,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"bcc8c8b4-098f-4660-9926-5538372b4040","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":41,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"145fe5aa-d495-413d-b689-272aa25660b3","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":41,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"89e04809-8284-406a-aab7-3da0bbfb6903","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such borrowings are","page_number":41,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"1cd9c79b-a140-4b43-8b60-dbf62015f8c2","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":41,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"1cd9e6c5-3440-4c10-ada1-fa77f458d76f","block_type":"box","text":"Cash Management.","page_number":41,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"d66c5497-d879-4548-af91-2224c6dad6c4","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":41,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"9a167a9f-86e8-4b79-b3a2-eca226e56742","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":41,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"a2f9e086-9514-4e78-bb9c-c2153f4d579d","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":41,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"664ef3eb-a774-4756-8089-05c6e9919e83","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":41,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"d407151d-da02-4ece-ae8d-12ea55cd3d06","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":41,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"9af1c9b4-f248-4471-8df1-419f8a642430","block_type":"box","text":"Securities”); (ii) other fixed-income securities rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of","page_number":41,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"fda62cf8-8837-4b1a-81b9-1c705ef0eff4","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":41,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"a2ec29ce-a046-4b8e-a3f7-b1ba955a29c0","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":41,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"53505918-5c45-40cb-b1a7-94cdacd358d7","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":41,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"8482fea0-dcdc-4100-881e-dddc0c6dc10c","block_type":"box","text":"have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or outstanding commercial paper, bank","page_number":41,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"f8b5ddec-4d3e-4180-85f0-c2167b333f41","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":41,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"cf6725e1-b84d-4a0f-b6d8-6e2301e90d36","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":41,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"8fd948f7-fcff-41bf-8128-e49ad1346044","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":41,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"3b7ffc5d-3978-4f5f-88e5-b1b19abd193a","block_type":"box","text":"Collateralized Debt Obligations.","page_number":41,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"9c80ee0b-f230-40b7-837b-0b072611c510","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":41,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"3d8cf974-6dc8-4360-a400-7640f5d8259e","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":41,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"35e170f4-68b5-48a9-b74e-4fa9dffb34b2","block_type":"box","text":"structured securities. CDOs are types of asset-backed securities. A CBO is ordinarily issued by a trust or other","page_number":41,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"5428f49e-3d72-45aa-bd80-5ac4fe98bf46","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":41,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"a92cd21b-3bcd-4937-a2f8-852fb9b0c2f7","block_type":"box","text":"include high risk, below investment grade securities) held by such issuer. A CLO is ordinarily issued by a trust or","page_number":41,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"6cb288bb-5a7c-4593-a8fc-2bc5b44e184f","block_type":"box","text":"other SPE and is typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S.","page_number":41,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"debe7b4c-4962-45fc-a70c-8efbe5631318","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":41,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"d6d3bab9-2290-4c58-837a-5e1048cf6b4b","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":41,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"bae0aaa1-5a3b-42b8-96a9-ddd3c5acbb00","block_type":"box","text":"the United States may not be deemed to be foreign securities if the CLO is collateralized by a pool of loans, a","page_number":41,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"b536ddd1-74a1-46f3-8e9b-eb50ac987e7f","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":41,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"9f281f11-c44c-4332-810b-ae48b7cdf34f","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":41,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"5422da8b-d58f-4a7f-bb0e-dfec017a7293","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":41,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"242866bd-9507-4882-8aab-86ded5ef807a","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":41,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"90144ad5-a056-4608-a8f8-9bcbe3977371","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":41,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"972273b2-7fdd-435e-b216-81e98057b96c","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":41,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"1c9e83b0-90ba-4aa1-91a1-91a75ccaa472","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":41,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"5c5bf4da-8347-4707-af02-0c558e8fa998","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":41,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"af3a31c4-bc71-4fdb-8800-a2e6fae32872","block_type":"box","text":"bonds or loans in the SPE and serves to protect the other, more senior tranches from default (though such protection","page_number":41,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"ccf59778-71f7-4347-bc74-174fc56d7791","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":41,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"e83e9e33-afe8-41f2-99a0-124962ed3937","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":41,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"8a2ce894-04a8-4a65-9430-7a88ff5d7e51","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":41,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"29c15993-f2f9-4472-8655-86e7039cd9ed","block_type":"box","text":"of the underlying collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage","page_number":41,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"f5c9a1f6-f95f-4b8e-8e7e-e84fcdb76bc6","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":41,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"10aac054-ebc3-4489-afef-d3ca2a281687","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":41,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"7cf33804-e00f-4f8e-a878-569fa14ae180","block_type":"box","text":"of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than","page_number":41,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"0fc639a0-76e1-46d8-9fc3-e9517d55f50e","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":41,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"cc1cb7a9-b41a-4a40-9ffb-1071b6a828c5","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the","page_number":41,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"5a753940-f4db-4a46-b64c-7e4e502f9aa4","block_type":"box","text":"CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus are not","page_number":41,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"43eab963-4bed-4126-adde-b541a8502914","block_type":"box","text":"registered under the securities laws. However, an active dealer market may exist for CDOs, allowing a CDO to qualify","page_number":41,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"3b690407-6a78-4892-9792-2ba91f5852e0","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":41,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"03ccca86-835a-40d0-9b39-3a9053a9de80","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":41,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"e4c67fa2-5d76-446a-a3a3-c22205fc817e","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":41,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"6c9084bb-854e-46d4-821a-db8f07b46934","block_type":"box","text":"II-3","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"8d8a595f-b026-4c6c-b847-b3660e9f8eb6","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":41,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"e9795797-268a-41f7-a38d-09802a2bcc03","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical","page_number":42,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"eedc7eee-00d0-4580-af7b-e68b06eae1c3","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":42,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"0217d773-dcb6-4d3c-a484-a2c19d044d16","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":42,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"649a5e0e-fbb4-45d5-a32d-259f221f35ae","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":42,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"787208b3-0b6f-427e-994b-73d94f59e95b","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":42,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"03c22943-28ae-40f0-bf52-cd84930ce05e","block_type":"box","text":"(vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the","page_number":42,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"a8db9e0e-8de8-4d14-bb5c-4a6e3147d91e","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":42,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"5722f8d9-8d26-4bce-ab23-5867ad1f02a9","block_type":"box","text":"Commercial Paper.","page_number":42,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"7a96b452-e500-4836-bdbd-c6d4b8c8b306","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":42,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"98f23765-e434-41fa-b151-3323ff3c5338","block_type":"box","text":"Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance on the “private","page_number":42,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"21dc94f4-246c-44c7-a49f-3ae265fc2b63","block_type":"box","text":"placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act. Section 4(a)(2) paper is","page_number":42,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"cd949d8f-767f-44ab-88c3-887c7ab275e1","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":42,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"fa93e5ea-1df9-4866-98c1-bfd4e3c1e4e5","block_type":"box","text":"investors such as the Fund through or with the assistance of investment dealers who make a market in the Section","page_number":42,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"a38ea602-3b98-41ac-9c23-9b02a26780de","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":42,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"8f7416d4-4e59-4a6f-947f-159d68b3d03f","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":42,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"a7386f4e-d419-4957-ab9f-59b5e3da3287","block_type":"box","text":"time of purchase) “A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub","page_number":42,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"c08a1b14-ab9c-4410-8c27-71b332eddf94","block_type":"box","text":"adviser, “high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":42,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"b2201a5d-8e57-415a-a865-9bd51bf063c1","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":42,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"bfb35fae-cc1c-40d7-b823-48e6765b5f68","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":42,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"5d1a4a84-8a90-4fe9-9261-405cd11a153c","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":42,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"c91200ad-3661-422f-b842-06a920618991","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":42,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"8180c18d-cf99-4a8b-bb5f-52a0b897d43a","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":42,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"f62b0d7d-5b3c-4834-9257-a03c63ad3d09","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":42,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"2ba88627-f5dd-4899-9df2-ae024be83fac","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":42,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"f0d32d3c-eca3-4aad-b7da-e7624b9a7949","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":42,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"109fb6d0-1d47-4adb-81c0-9c9a3e884d60","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":42,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"3eafec07-2487-4316-96c5-63f8ca14e326","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":42,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"b78b37c0-7d38-41a9-ae0b-0a4bc6b4875c","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":42,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"ee94c17e-48d7-42a9-aa02-2399b52293f3","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":42,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"5a0c8609-9ddf-4f14-8198-ba0786147e9d","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":42,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"6cfa92b3-fbaa-4211-959c-09902839d016","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":42,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"f6f28d90-7936-4cba-8108-a46f9e1743aa","block_type":"box","text":"variable.","page_number":42,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"c441c686-8225-4207-81cf-0b98c90f67f9","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":42,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"9eae0367-ee0d-4a63-a703-3777d2530a21","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":42,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"4b997227-ea8e-4a4f-b5ab-96e051683fe3","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":42,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"5e9bb808-2be6-4cb0-8e40-491cad4f6cf0","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":42,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"444caaf2-367c-488f-a26e-76acff75188a","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":42,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"ee9e7b57-3e01-407f-8ec5-078f5367524e","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":42,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"334f5d7d-b642-4ed7-8eb6-dc1c0a7dc16d","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":42,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"c401cf4a-999a-44b2-8858-93b9c8107bb9","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":42,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"1686f958-e065-478a-895a-bf08a6495bb0","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":42,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"c3ccb986-3ace-444a-b522-46827916a455","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":42,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"fa5dfece-61bd-44dd-9695-de0ccf555a36","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":42,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"7784250f-a48a-4618-ad47-00a0b1edb4f4","block_type":"box","text":"securities. Over the long term, the returns on the Fund’s investments are expected to exhibit low or negative","page_number":42,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"5823cfe3-f2ba-47f5-a690-2f100419ab8b","block_type":"box","text":"correlation with stocks and bonds.","page_number":42,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"af1de4e2-eace-459f-af49-4c5539c4f58b","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":42,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"e97a93cc-40eb-40a2-b24d-167a49e18abd","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":42,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"2cc79afb-0108-4138-b50b-895796989899","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":42,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"db5cad09-4245-49f7-865d-f02e772e8688","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":42,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"a7c607c4-aa6a-4c12-871a-50e01b864d2b","block_type":"box","text":"be predominantly a security if (a) the issuer of the hybrid instrument receives payment in full of the purchase price of","page_number":42,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"ae010ef2-1c4d-4f90-8b1d-1d9617a173cc","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":42,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"fdc1f304-f221-4c00-aa07-4d0d98b9bb30","block_type":"box","text":"holder of the hybrid instrument is not required to make any payment to the issuer in addition to the purchase price","page_number":42,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"47c8ef4c-17f0-4173-8da0-d85bd1e74d2c","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":42,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"d89ddafb-80c0-467b-8b8b-1556de0d8a05","block_type":"box","text":"instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the instrument to","page_number":42,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"750ffb66-3a5a-46b7-a235-bfea7a4c1ea9","block_type":"box","text":"mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as a contract of sale of a","page_number":42,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"96252951-aa9a-4d7a-b37f-5163f0f9e52b","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":42,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"c4320ddc-62ad-4247-82ac-22f32e3352e1","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":42,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"3642a0a9-6f98-477a-94d2-237a817c11ae","block_type":"box","text":"principal protected hybrid instrument means that the issuer will pay, at a minimum, the par value of the note at","page_number":42,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"58dd65ea-50ed-440d-8aa5-7ab419e0bb70","block_type":"box","text":"II-4","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"bd6f3587-de36-4b0c-9ec9-670484f7b857","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":42,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6e21efa6-d5eb-42ef-bcfa-0cd80c664130","block_type":"box","text":"maturity. Therefore, if the commodity value to which the hybrid instrument is linked declines over the life of the note,","page_number":43,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"17e3b6de-ab25-464e-b0f9-f7afeddddbfb","block_type":"box","text":"the Fund will receive at maturity the face or stated value of the note. With a principal protected hybrid instrument, the","page_number":43,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"daac7f5c-1780-4f0c-8214-834841dd1356","block_type":"box","text":"Fund will receive at maturity the greater of the par value of the note or the increase in its value based on the","page_number":43,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"d04a7bd9-e303-4295-82ab-581eb2d2a776","block_type":"box","text":"underlying commodity or index. This protection is, in effect, an option whose value is subject to the volatility and price","page_number":43,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"195042d2-0af2-4492-b12b-1ad2abdf0dd0","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":43,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"28136cdf-5221-4d75-a6cf-e7b8cde620e1","block_type":"box","text":"cost of the protection. In addition, the protection feature depends upon the ability of the issuer to meet its obligation","page_number":43,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"e1bcd7d9-bfa5-4cf8-a22d-eee53b857a48","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":43,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"6b2ff28c-0763-4d60-93c7-6dc60de3b9a6","block_type":"box","text":"the Fund will receive at maturity of the hybrid instrument either the stated par value of the hybrid instrument, or","page_number":43,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"3b4f49ba-f603-4b11-ab24-df4155e29faa","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":43,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"f42629da-e946-494f-b55f-ad983171d1c0","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":43,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"b91f42f3-3287-468e-95b3-7212ec6aac9d","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":43,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"a1724f67-abb8-428d-98a3-86a3bec3342a","block_type":"box","text":"variable to which the hybrid instrument is linked declines in value during the term of the hybrid instrument. However,","page_number":43,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"b0ff3e95-a8e9-445b-b6e5-580b840da811","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":43,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"f8bf846a-580e-4712-ac6b-40ae972b3af4","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":43,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"fd9a52e2-180a-43d3-8c3d-f5729a9d7819","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":43,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"023291d8-121f-4b56-8999-49003e86666f","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":43,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"13f7777c-a4ae-4336-9ba6-90086c2594f6","block_type":"box","text":"economic variable may have declined sufficiently in value such that some or all of the face value of the hybrid","page_number":43,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"31c1c7c2-167b-438a-bb31-5bf7dbab95e6","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":43,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"ffec39ea-6181-4cc9-ad85-d839aa3b8d20","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":43,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"43dd4fc6-29d4-4bed-908c-59bffd46e117","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":43,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"ebce3cec-b554-48ed-8d4e-1898d62f5954","block_type":"box","text":"index or other economic variable over the term of the note, the cost of the note, and any other economic factors that","page_number":43,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"a2b7a721-3f3c-435c-adfc-ee1533dd1eba","block_type":"box","text":"the Manager believes are relevant.","page_number":43,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"6023be7e-d60b-4601-956f-c042a4909133","block_type":"box","text":"Limitations on Leverage.","page_number":43,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"46914d25-5ec4-45b9-a982-e18022c17800","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":43,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"7c81a8d6-8ea7-440b-8974-ecc89b1fc2be","block_type":"box","text":"avoid being subject to undue leverage risk, a Fund will seek to limit the amount of economic leverage it has under any","page_number":43,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"76e57a17-e87d-4135-a022-ef4e19733b97","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":43,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"108270ad-7606-41b1-880e-22827f5e43b7","block_type":"box","text":"instrument if, at the time of purchase: (i) that instrument’s “leverage ratio” exceeds 300% of the price increase in","page_number":43,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"7e162f41-fb48-43ff-b39f-2d2dd28c0aa4","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":43,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"f36b5613-1f3d-4d32-92af-af995c9acf8d","block_type":"box","text":"ratio” exceeds 150%, measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a","page_number":43,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"68617af1-166e-4098-b0ec-d4fe84b4ede6","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":43,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"94a83268-3e68-4f75-9b64-cc58cef7eb01","block_type":"box","text":"other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1% gain in the","page_number":43,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"f2e0e565-e021-4300-9c62-9d38599e7e56","block_type":"box","text":"underlying economic variable would be expected to result in a 1.5% gain in value for the hybrid instrument.","page_number":43,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"e84fc793-2ff6-4372-abf4-8971058a7b3c","block_type":"box","text":"Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5% loss if the underlying economic","page_number":43,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"c2df7a02-e89a-4bd7-9fac-7af4a83e9d29","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":43,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"904a44af-47d7-4451-b443-3ed18f564f4a","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":43,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"3d842946-559f-4ba5-b6b7-4b68bf98aad5","block_type":"box","text":"contracts, their notional values. A Fund may at times or from time to time decide not to use leverage in its","page_number":43,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"e92f715e-b1fe-46b5-aab6-1421248a582c","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":43,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"506371e3-46aa-4b54-aa20-11dbb2ec6cff","block_type":"box","text":"Counterpar ty Risk.","page_number":43,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"e022535e-8497-4e2f-a446-31d0adfeb60e","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":43,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"40845e04-ae1e-4295-9322-5a43c433aa43","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":43,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"828769b4-bd54-4963-8f61-9e389a8bd120","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":43,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"aa1af001-1702-4e02-8d8d-d4be906e08dd","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":43,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"c5f5a055-440f-41fe-8da3-2ead5cb0e837","block_type":"box","text":"e.g.","page_number":43,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"eea94fe9-1c66-41bc-acc0-bc5b0eb4a44e","block_type":"box","text":",","page_number":43,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"515af43e-8be0-44a4-ab6f-118053fe496e","block_type":"box","text":"ratings of AAA or AA by S&P). Therefore, the risk is small that an exchange clearinghouse might be unable to meet its","page_number":43,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"6fdb0948-b63e-492d-9931-baed0ec358af","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":43,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"f1b29e31-fa37-49a2-b0cf-154092dc74f9","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":43,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"7e0a4c00-7f46-447d-af03-0fc0f7ecf67b","block_type":"box","text":"obligations under the structured note.","page_number":43,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"fdb784c0-ce34-40cc-9f26-874feaf7cf72","block_type":"box","text":"Convertible Securities.","page_number":43,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"c7724669-cd3a-4cd4-a9c4-323242af0db2","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":43,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"d1f5cb62-82c0-43ef-be22-dd6aff26fe2d","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":43,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"dbcaf2cf-a448-40b4-b17c-868033253329","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":43,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"4ba04a3d-544d-4c48-9c2a-085c9b91b972","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":43,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"9d53b145-4362-47c6-b154-68d0c38ff07b","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":43,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"c2b734bb-8f96-4d18-99ca-6f07a17a0741","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":43,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"81401a94-e1e4-4db5-9cae-085382757852","block_type":"box","text":"with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than","page_number":43,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"39ce6f27-7671-44ef-81f2-b0e8ceb45d77","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":43,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"21b9dae8-6448-4014-86ac-1416a259ab97","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":43,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"4f93698c-01da-4a20-8491-764aba570b51","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":43,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"8b13efac-9554-4b2b-b9e6-fa9df9d3d2dd","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":43,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"3c67c287-d614-49d7-bf00-28a65e24ee6d","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":43,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"a869ace8-130f-444e-9790-264c86fac1dd","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":43,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"af4eb92a-f8d5-45de-bdea-a89066f0bf7c","block_type":"box","text":"II-5","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"50cbfda2-83b4-409b-84eb-b22dc652ff60","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":43,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"3fa3da3e-8d33-41ce-95ce-733e0511b61c","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":44,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"d4f3fb4b-4238-4a83-9189-8e0507620c14","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":44,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"d9d84038-8ce0-4b21-95db-5c74538379d1","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":44,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"41bd67d2-7b96-4e85-84fc-67df3d3fb458","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":44,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"035f24c3-3921-4db8-b0c2-cc6823b6f7bb","block_type":"box","text":"in value relative to the underlying common stock due to their fixed-income nature. As a result of the conversion","page_number":44,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"903641e2-4786-4ec9-b42c-16a9c9779644","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":44,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"80ad81ac-c621-4a44-bf67-5b78a1ea333b","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":44,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"d2865575-3220-4c99-a457-8bdb843b2de0","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":44,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"105e38fe-0cc4-48d1-9357-54fd8324d04c","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":44,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"4dd1c2bb-c31f-42dc-b306-5a407810fce3","block_type":"box","text":"things.","page_number":44,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"2a8babb9-216a-471c-9a54-217e74144d45","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":44,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"0f0e2264-76aa-4677-9a5b-c5c394209c9a","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":44,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"e36f132e-59a5-48d0-b999-c56ef9384c6f","block_type":"box","text":"securities may be quoted in the currency of the country where the issuer is domiciled. As a result, fluctuations in the","page_number":44,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"160bff18-37f6-456b-bb5c-b48582de5729","block_type":"box","text":"exchange rate between the currency in which the debt security is denominated and the currency in which the share","page_number":44,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"cb45daac-a767-4ad0-95ad-efd83fb5e9b3","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":44,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"d6df6e2f-17e4-44bd-afb1-a32c7593ad85","block_type":"box","text":"a currency different from that of the underlying equity securities, the conversion price may be based on a fixed","page_number":44,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"0a6c654b-624c-4369-827d-aca0c8362cdd","block_type":"box","text":"exchange rate established at the time the security is issued, which may increase the effects of currency risk. As","page_number":44,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"9f2afed0-72a0-41df-a53e-ad4d264fd613","block_type":"box","text":"described below, a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to","page_number":44,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"25b9ba74-3390-469b-b71e-804382654c46","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":44,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"a97ae649-c7a5-4f22-9dcc-58bf820d167c","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":44,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"c13ffb3f-ba12-4104-950e-7131a54e98ac","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":44,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"179f37b0-bad2-429c-a705-15af75a555c5","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":44,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"135d976d-e74d-4132-96ab-748d14d0bd8f","block_type":"box","text":"i.e.","page_number":44,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"697ff703-a873-4a29-8827-fa73eb9c9522","block_type":"box","text":", strictly on the basis of its yield) is","page_number":44,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"55c86f7a-b572-40e9-b85d-e0ce029b464b","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":44,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"bfe87a98-7967-4832-aa2a-d287a82d0a54","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":44,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"22cc4fbc-c518-4908-ad26-1aa7a548fd0e","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":44,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"7cee502b-2807-40c4-9810-db1e30a8d685","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":44,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"8c482048-ecc2-49e4-9b99-d66eaf0d8b44","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":44,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"515e9c9d-9020-40d9-9ed2-33d2f97451f9","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":44,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"46c37e02-b455-41e3-8e96-c6938f69177f","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":44,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"309e8249-d357-4fcb-a6f1-d3c02aceff8e","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":44,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"4bb56e26-57c3-43e0-a824-57258b5f1c73","block_type":"box","text":"over the conversion value to the extent investors place value on the right to acquire the underlying common stock","page_number":44,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"69a4ae92-d61a-4a66-ab81-a7931094f9af","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":44,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"b9df0741-7239-4aaa-bd35-f6163ed6b2f6","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":44,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"7523b2d4-75cd-4229-a5df-4c13ca19f6f9","block_type":"box","text":"than the securities’ investment value.","page_number":44,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"717a8aad-38d5-45a2-8113-812d69809af9","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":44,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"7010b4e3-67b0-427f-aeaa-c57b4f5f4b0a","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":44,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"01dcd6ab-5e20-4099-a71e-bb07708ade7c","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":44,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"a76cb1ff-24cc-4720-aa44-9adbed173cc2","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":44,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"86d1766c-7391-4c72-8d85-f704989b16b2","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":44,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"0b47f3ef-31e9-48d0-801c-b108a0e57aa6","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":44,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"a2932be0-8196-4ad6-805c-8b3503a5f30f","block_type":"box","text":"holder to cause the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":44,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"d069ddf7-56f0-414b-8afc-d7d2b86575ec","block_type":"box","text":"security under cer tain circumstances.","page_number":44,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"3edd0fc3-d020-4bc0-9594-7a5f7ae79858","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":44,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"62479f9d-4537-417a-9730-f62c9e8bf711","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":44,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"7d738905-e570-4254-9c87-3904c9e13a49","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":44,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"7b0d9bf9-e7e1-4f91-830b-6a758bd316b0","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":44,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"232366bb-95b8-4ad2-8195-c7c6cff96280","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":44,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"ec1f2015-2324-47c1-9030-fd7907121380","block_type":"box","text":"public offering of its common stock prior to maturity and otherwise pays a cash amount to reflect any equity","page_number":44,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"c3e96ca7-72c8-410b-be2e-83986501ebf7","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":44,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"18add67e-0589-4519-9c5c-d37c556093fa","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":44,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"97f339ec-5cff-4cee-8865-06a4a0d11d5a","block_type":"box","text":"i.e.","page_number":44,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"900e8df8-0c7b-4efe-8102-62da39117e4b","block_type":"box","text":", fixed-income (“fixed","page_number":44,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"88017753-5a79-4e4e-b467-8bc7db7c267b","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":44,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"8ea047db-b2bf-4989-b16a-efb96f83c37f","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":44,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"0d71b012-a2ba-4363-aa69-3e3bdc646ee8","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":44,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"a9c5bbd8-e69b-46bf-a339-c3c4eab27c90","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":44,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"157e42c2-4655-4f8c-be39-d477ec671dff","block_type":"box","text":"II-6","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"20422c0b-9cc3-4d61-adf1-2c445054663a","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":44,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c4f24fd7-ea15-48e1-983c-e7ebe8fde1b0","block_type":"box","text":"specified quantity of the underlying stocks within a specified period of time at a specified price or, in the case of a","page_number":45,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"fe830852-9dc4-4ea8-95ef-9fa070280810","block_type":"box","text":"stock index option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":45,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"44a3cd72-32d4-420d-8017-205732535c85","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":45,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"d7091f84-fc8f-46bd-9245-703857a34081","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":45,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"e7b3c685-3bb9-42f6-88b9-6078dd91a8e9","block_type":"box","text":"comprised of two or more separate securities, each with its own market value. Therefore, the total “market value” of","page_number":45,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"d26a2df8-f10c-427d-aebd-a80d697fe999","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":45,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"0a91f27e-1b6a-424e-a4db-881267110b60","block_type":"box","text":"component.","page_number":45,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"79ae3930-9a64-4241-aaf8-7dcac9cb3c99","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":45,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"cb71f4b1-1d2d-4373-a34f-f855d5212264","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":45,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"c2f7696c-217e-4601-acfc-b5f04ffb4fa9","block_type":"box","text":"fixed-income instrument and an equity feature with respect to the stock of the issuer of the fixed-income instrument","page_number":45,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"d0d72908-0d1d-42e1-8d8f-70ee405a1f6c","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":45,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"67651c74-a8a6-41f3-a0a9-8baf63d034fb","block_type":"box","text":"fixed-income instrument of an issuer with an equity feature with respect to the stock of a different issuer when the","page_number":45,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"bf63f25d-c11e-40bb-bb7a-05ed753d3b8c","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":45,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"4e02db70-5b62-48b7-a570-dcde06f67beb","block_type":"box","text":"investments. For example, the Manager may combine an equity feature with respect to an issuer’s stock with a fixed","page_number":45,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"630ee938-ecfd-4b46-b2ea-7b85281baada","block_type":"box","text":"income security of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":45,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"8284735e-fc35-432b-b983-f62db9da9f14","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":45,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"492341f2-abbb-43fe-8168-ec3f45bf6c68","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":45,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"6896b396-f43e-4e1d-b18c-876140e14cce","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":45,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"6753c446-609d-45c1-9f27-a40a4ba52f5e","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":45,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"6cc50b46-a0b8-473f-982a-15f004010870","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":45,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"aebc438b-a891-4af4-ae28-6f86f4363e88","block_type":"box","text":"favorable market conditions.","page_number":45,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"99e22246-3cee-41fc-a992-8444232682cf","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":45,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"55ec2bd1-d137-4740-beb1-320693b269fa","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":45,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"8afcb8ec-268a-4df2-8dd9-c1170071ec09","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":45,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"beba9909-4723-4863-a330-5afe030078da","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":45,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"688759af-472e-47ba-9a76-5fe2b3d0cdec","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":45,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"2ae4beba-94b8-4031-818a-b26da0b815f6","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":45,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"7e60a12f-8f6e-4248-9490-0eace56b22bd","block_type":"box","text":"Corporate Loans.","page_number":45,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"44e6d7fe-7aa0-4ef6-9650-12bc3ffbf72b","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":45,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"57bd4a1c-5225-4d61-93cf-85cb82e5f039","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":45,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"f1007207-c325-4bdf-a858-6c3e57f14d5e","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":45,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"bf1acfdc-5817-4748-a31e-cb700265245a","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":45,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"afd83479-835a-49d6-97a7-ee391e74d6f4","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":45,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"ca5100ba-66dc-49d1-9fc4-1afa82b8268b","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":45,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"572d5389-ddd2-4270-b4ef-68c5ab7302b4","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":45,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"92ce8e7a-a6a3-41cf-b0b1-a6996e4a1545","block_type":"box","text":"only with the Lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and","page_number":45,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"53ea6601-d5b1-49ad-8862-477e9794583b","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":45,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"93ec1610-7c7a-4643-b853-2a7bbba78114","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":45,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"d7a998f9-6c87-4336-997a-2f35d4dd8cf6","block_type":"box","text":"enforce compliance by the borrower with the terms of the loan agreement relating to the Loans, nor any rights of set","page_number":45,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"15861cd7-a1d4-416e-a428-cfd75928eb8b","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":45,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"d11dc3ff-0afc-4ba6-9382-1ad15a647cd4","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":45,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"9e2e9621-5783-45f4-902f-9293cf2709ba","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":45,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"c3a40ed7-eb50-45f5-8590-349e2036dda5","block_type":"box","text":"treated as a general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":45,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"770c6003-111a-4b81-b4ff-c0e26d13c735","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":45,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"4835d509-e9b2-4f64-933b-fcee6f79e0fc","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":45,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"e2513b8a-2222-46ab-ae83-bc9f5737aa8d","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":45,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"f2138005-70c8-40ef-b0a9-bdd3f577212a","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":45,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"9f56f73e-66e4-4350-ab20-fc964b05ac9a","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":45,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"e2301cbc-9041-4cee-afc6-6f26e1fbedb1","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":45,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"a714bf37-e8e3-48c8-8bf3-eb4868566844","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":45,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"55dbb9eb-81e4-40c2-82cd-5c4d265b2326","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":45,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"7815ed17-d123-44a6-9ab9-e9e128e20a69","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":45,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"6c4288d2-5653-483d-8005-396297e4da49","block_type":"box","text":"could be sold only to a limited number of institutional investors. The lack of a sufficiently liquid secondary market","page_number":45,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"9811d470-3aac-4c5c-8461-971b671c43f9","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":45,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"eb998d29-67e4-45f2-9244-444c59faff08","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":45,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"b88415a5-2e8e-4201-ae51-3c379410a974","block_type":"box","text":"of the borrower.","page_number":45,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"a566d506-facd-4e3c-ae9f-86a1fd6e936f","block_type":"box","text":"II-7","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"0ed0fa99-1c7f-4911-9426-0da11f869d5e","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":45,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f46450ed-3b40-4f72-8370-e54cfd96bd99","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":46,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"35bd6f94-d03c-4026-986d-7bbf12622850","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":46,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"731c9278-06d0-415f-a944-62a32405ae3a","block_type":"box","text":"Failure by the syndicate agent to fulfill its obligations may delay or adversely affect receipt of payment by the Fund.","page_number":46,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"b31cfc2a-b5d1-4dba-bc32-f16021803d9e","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income. Although","page_number":46,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"09a2054a-d4df-4cd9-bd95-9c5fb89bbb50","block_type":"box","text":"borrowers frequently provide collateral to secure repayment of these obligations they do not always do so. If they do","page_number":46,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"44f7020a-9b76-4f81-84dc-4ca75cdb90e6","block_type":"box","text":"provide collateral, the value of the collateral may not completely cover the borrower’s obligations at the time of a","page_number":46,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"583cc11e-899c-46b0-8498-c7d777b3853e","block_type":"box","text":"default. If a borrower files for protection from its creditors under the U.S. bankruptcy laws, these laws may limit a","page_number":46,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"0f1134ee-01d1-4be2-8dd3-a58fcf60d5c4","block_type":"box","text":"Fund’s rights to its collateral. In addition, the value of collateral may erode during a bankruptcy case. In the event of","page_number":46,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"1371b016-2623-4c26-8d4c-34c332f9783e","block_type":"box","text":"a bankruptcy, the holder of a Loan may not recover its principal, may experience a long delay in recovering its","page_number":46,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"c9dd110c-2655-4f4c-8baf-c60de2407a8b","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":46,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"e17f0209-14ea-4d43-9974-199a8acf5c1e","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of","page_number":46,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"365284cb-aeeb-4bd1-9f93-5a842e0bf3b0","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":46,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"cae071a3-0360-4ddd-bf1e-aea6f40d9bcc","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":46,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"8412e05b-1a6b-4a8e-aa54-2e8ca4792af7","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":46,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"7c46d32d-e065-4496-959a-f801647a8140","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":46,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"c7e2d8fc-a749-4d9a-862c-09f96284546f","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":46,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"a02ff8dc-2581-424e-8d1b-7cee54a45012","block_type":"box","text":"interests in Loans, such as the Funds, may not have the protection of the anti-fraud provisions of the federal","page_number":46,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"ee54548b-2524-4ae5-b94d-38bc63a43182","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":46,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"6fdcb8ab-89e6-4efe-8894-1f516d332515","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":46,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"b582a7b4-2bcb-4fc0-aa12-027a7612f248","block_type":"box","text":"state law.","page_number":46,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"3a349ae2-3ac8-4c83-a5a1-9963b7b44f21","block_type":"box","text":"Direct Lending.","page_number":46,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"81f06a4e-d8fc-4ec8-ae5f-e392070cf08b","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":46,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"25bd1211-8d08-44d3-b4f7-621eb225b2df","block_type":"box","text":"between the Fund and a borrower may not be administered by an underwriter or agent bank. The Fund may provide","page_number":46,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"68ac9b9a-de12-44c4-a344-08303bc49420","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":46,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"1f498bc9-c0da-437d-8416-0b2b0a600585","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":46,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"8f45044d-7a36-42c8-961a-6c8a4dfa3b56","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":46,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"cb763fd9-5fd7-4928-b145-0ebbe2b68fe3","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":46,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"80cdbca2-4898-4240-84c2-1e0fc2862b65","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":46,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"d4d9a48b-45c1-47ca-be6f-c85d8be955b7","block_type":"box","text":"loans are substantially similar to those associated with investing in corporate loans. In making a direct loan, the Fund","page_number":46,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"5ec82856-b956-48f5-841f-960c4e31affb","block_type":"box","text":"is exposed to the risk that the borrower may default or become insolvent and, consequently, that the Fund will lose","page_number":46,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"f2eae3de-de48-4f6c-8a91-867c5c510e9d","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":46,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"15c92fc2-bc27-49d6-a19d-7b5c21e4b49e","block_type":"box","text":"direct loans may be deemed illiquid. Direct loans are not publicly traded and may not have a secondary market. The","page_number":46,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"7f1d2ce3-9943-42d1-918c-30aa86ec9773","block_type":"box","text":"lack of a secondary market for direct loans may have an adverse impact on the ability of the Fund to dispose of a","page_number":46,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"2ceddbf0-4805-4a30-9175-745327aad2f0","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":46,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"0d20e978-1163-49b9-840d-60928e46ee4d","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":46,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"d2370301-598c-4191-9bda-0e1e0b202208","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":46,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"610c43e7-b3a6-4967-9c15-05ff0f00271a","block_type":"box","text":"Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on","page_number":46,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"095c668d-d55f-4112-a5fb-f01e2e8c52ec","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":46,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"d39b9daa-031a-4566-9ed8-fab3b14e3bbf","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":46,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"9948f1b0-1633-454e-921e-f59c30050f40","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":46,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"dacba8df-e3ab-4008-bf2a-dea2dd241841","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":46,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"21ab6d83-ad47-415c-8ffe-31cbf3787f34","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":46,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"90f17f8a-4c5b-41d8-8d31-98fece4c98f7","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":46,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"a2f6852a-b2bd-425c-a952-c2a5de4a201d","block_type":"box","text":"Credit Linked Securities.","page_number":46,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"03e18dc7-ef60-4c05-8c63-10ed08ac4f31","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":46,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"a9854f69-6dfb-4333-9453-5753fb589bbd","block_type":"box","text":"securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument","page_number":46,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"9af5760d-b20e-4a3d-b233-f250ec53052c","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":46,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"4e2b2fc2-ee5b-4225-abb5-62ae13918584","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":46,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"5ad9597c-9b2a-46e4-86d8-6a3f65ce5f12","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":46,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"c524b72b-199d-4806-81e9-c34485a93751","block_type":"box","text":"traditional income producing securities are not available.","page_number":46,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"f6545d0b-9956-42f3-b815-c1f8f777bbf0","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":46,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"1eb6c99c-d0ab-4cd9-a7e4-fcca2c1c64d1","block_type":"box","text":"income payments (in the form of distributions) and payment of principal at the end of the term of the security.","page_number":46,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"b9a7a779-1879-48e4-a098-1362a12f69df","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":46,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"ee960518-d671-474b-96f6-5d7c72d92d41","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":46,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"e14a26c3-40a4-4427-b162-be2c7d600f0e","block_type":"box","text":"instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of","page_number":46,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"ca20cb4d-39e2-47cf-b88c-a6b84be2d5fc","block_type":"box","text":"II-8","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a4d1f5ff-3f2a-4fac-a43e-0dcf74b84ba7","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":46,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"99cffb04-9df9-4590-9b7b-c382b3264267","block_type":"box","text":"payments over the term of the swap agreements provided that no event of default has occurred with respect to the","page_number":47,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"9b04b60a-135e-470f-aa9c-a1dc8d7d1e94","block_type":"box","text":"referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and","page_number":47,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"a2114452-6907-458d-a775-f0d92ff3cd5d","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":47,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"f50dfc34-fdd1-4405-ab25-89ee63d8a37a","block_type":"box","text":"obligation. This, in turn, would reduce the amount of income and principal that a Fund would receive. A Fund’s","page_number":47,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"c0beb309-47cd-491c-a6c8-02a3c035bacb","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":47,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"acde3aaf-a724-441a-960b-9c7f313b0a45","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":47,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"0ef5ec2c-fa91-4032-86e0-105c1929a00d","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":47,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"b0a3f4be-8be2-4ca2-b9b3-5ba42ecf01da","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":47,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"724c7a01-215b-412b-a869-5486363bc2e8","block_type":"box","text":"investments.","page_number":47,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"acf35cb9-27c5-416d-b21c-2fe82b0b30a9","block_type":"box","text":"Debt Securities.","page_number":47,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"e33b0412-a140-4415-96f1-53851d8d283b","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":47,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"87c8d48d-121c-49de-b58a-bb253ad1ba0a","block_type":"box","text":"timely payments of principal and interest. The degree of credit risk depends on the issuer’s financial condition and on","page_number":47,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"3a0d883c-2fbf-4ecd-a272-78d8178f1a04","block_type":"box","text":"the terms of the debt securities. Changes in an issuer’s credit rating or the market’s perception of an issuer’s","page_number":47,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"3cfe1a5e-5453-4287-846d-d6977e369ec7","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":47,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"d311a8aa-33f4-4ab4-b3e8-af63d2eafa92","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":47,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"e965d772-3f4d-4d68-a0f9-91edb5afeea6","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the security may","page_number":47,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"b25d2677-bd93-45bd-8f4d-d34ca55a9d8d","block_type":"box","text":"fall when interest rates rise. If interest rates move sharply in a manner not anticipated by Fund management, a","page_number":47,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"69d29341-88f6-43a1-9a6f-35630653982a","block_type":"box","text":"Fund’s investments in debt securities could be adversely affected and the Fund could lose money. In general, the","page_number":47,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"a1b98964-4547-4c07-8385-d0936d5be644","block_type":"box","text":"market price of debt securities with longer maturities will go up or down more in response to changes in interest","page_number":47,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"d0bd95a7-e1f9-4709-a484-415d9e871a56","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":47,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"b0a0c8e0-5c26-4c64-aec9-c6d540e41bdc","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":47,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"d85ac870-0b53-404b-a999-6be2bb58a569","block_type":"box","text":"slower than expected principal payments. This may lock in a below-market interest rate and extend the duration of","page_number":47,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"233a9bd3-a1ad-4097-b776-c746d9d1663d","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":47,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"fd80826d-9c99-4ad7-9fe0-329882d78620","block_type":"box","text":"interest rates. As a result, in a period of rising interest rates, these securities may exhibit additional volatility and","page_number":47,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"789f6c54-eda0-4c40-b942-f81c8b24c24e","block_type":"box","text":"lose value. This is known as extension risk.","page_number":47,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"1cdd40ec-b22f-4882-b45a-e3862c67bb88","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in prevailing","page_number":47,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"16b14e7a-ec69-4b66-b283-8c9772b9032d","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":47,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"815f7a32-cc8f-46e3-853a-5de57a64b058","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":47,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"3b8aa058-2976-4240-938e-5d74b4655135","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":47,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"89ace6be-a9b1-4566-804f-94525f46a416","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":47,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"fca455e0-5b67-4da8-b474-e596d0072e6f","block_type":"box","text":"Floating and Variable Rate Securities","page_number":47,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"03a18ac8-2230-4630-b19e-ec4bfae8777b","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":47,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"b218e2e5-5a81-42f2-bcda-8c01813d4e97","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":47,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"e9e4086a-8e84-4350-8999-affc0e2b761c","block_type":"box","text":"with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest","page_number":47,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"6f26dd61-be91-4497-8601-bbace563aed5","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":47,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"9fdfcf99-8b7d-4ed7-a005-8cb85ce74f98","block_type":"box","text":"impact of interest rate changes on floating rate investments is typically mitigated by the periodic interest rate reset of","page_number":47,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"ddce14d9-f761-4384-a525-631570d9026c","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":47,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"0ea6c06a-d5d3-435f-8a80-d38bf1277957","block_type":"box","text":"market interest rates.","page_number":47,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"70ca0f94-6e07-44e8-af4e-ee3d5a78a08b","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":47,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"ceeb385e-8572-4f8c-8c47-8e4b804e4569","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":47,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"0cd43ef8-2a1f-48da-a7d7-099c75120449","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":47,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"1aa0c23a-70f8-43e4-bf79-4dff9528a72c","block_type":"box","text":"common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of","page_number":47,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"39def284-c361-464e-a119-384ea5741676","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":47,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"7527bba6-1733-4817-8f0e-3920fc00c959","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":47,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"f83e3fa1-b725-4717-8e07-050f59a2f196","block_type":"box","text":"possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on","page_number":47,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"b27c5322-0c9e-4a0c-997d-177c03233dad","block_type":"box","text":"a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount. For example, if a Fund","page_number":47,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"1530a003-2331-4138-9d17-cea2f9a2e87f","block_type":"box","text":"purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%","page_number":47,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"cfbd3aa5-5d64-4c00-b6b2-6f284d850163","block_type":"box","text":"semi-annually), and inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010","page_number":47,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"ec07e35a-1d4f-4323-b5ee-79f3ada5514c","block_type":"box","text":"and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half","page_number":47,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"c5665ad3-5038-4ccd-a62e-71bbf578c2cf","block_type":"box","text":"of the year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be $1,030","page_number":47,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"ebec881f-330f-4f78-b9c8-f194b70da1dc","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":47,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"2945ff11-6084-4f2d-8a65-b725c862bd65","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":47,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"2c8033ed-7329-4721-acc7-34df6b79492e","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":47,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"82128594-807e-453d-af5b-56376e4d9fac","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":47,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"0052899e-d2d7-4dde-a29b-c36d7fc68acc","block_type":"box","text":"guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the","page_number":47,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"893ade6a-7d6d-4906-8ccb-2068730e9fce","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":47,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"0e2941f2-6c43-46fd-8bad-de77c87d688b","block_type":"box","text":"inflation related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided,","page_number":47,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"dd7c6437-cf0c-4e97-8f10-12e36d461c0d","block_type":"box","text":"II-9","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"64597da7-c67f-4b64-89e6-e502674dc056","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":47,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a139de0f-143c-40c9-bfd4-14f9034bad9c","block_type":"box","text":"the adjusted principal value of the bond repaid at maturity may be less than the original principal. In addition, if the","page_number":48,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"09ecd5f6-b7d3-4e1c-b436-3cecfbbeea39","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":48,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"621d4e9d-f8b3-4b45-984c-aa371ea0918e","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":48,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"6fe89426-efcc-413e-8a54-5de0848d0d6a","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real","page_number":48,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"adcf5fa0-796b-4ca4-9303-d1b05a9f7489","block_type":"box","text":"interest rates, in turn, are tied to the relationship between nominal interest rates and the rate of inflation. Therefore,","page_number":48,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"7801cac7-9c91-4911-b2d6-a874f482a646","block_type":"box","text":"if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an","page_number":48,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"9e7e0271-b80a-4654-8a9c-53ff4659f0a1","block_type":"box","text":"increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than","page_number":48,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"79f52e10-d0cc-4819-9ec9-cc35d1bb8058","block_type":"box","text":"inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no","page_number":48,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"a940f493-ccb4-4ef3-8362-5ed9e96b6c96","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":48,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"4cfbe881-6175-4b67-8c02-4a3a9cc041f8","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":48,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"02e5ca26-be98-4ac9-988e-4b765679d201","block_type":"box","text":"inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to","page_number":48,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"c00fc352-f4ac-4631-b77f-95e4a0f1f549","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":48,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"3d973b4e-f4cd-4ac9-931b-e4ad50ab5b03","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":48,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"f3779f99-747d-4da6-9d79-6c8e802d4e75","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":48,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"3b8f0f47-6ca7-46f2-a844-d03b57d784f3","block_type":"box","text":"Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor","page_number":48,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"35287fe2-e960-4342-ba8c-a4ec26ce9121","block_type":"box","text":"Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing,","page_number":48,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"ae337877-63b6-4795-8a4e-35fe492729f6","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":48,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"19f67760-d5eb-46a0-bddd-3f2226d1474a","block_type":"box","text":"reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any","page_number":48,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"d9b17b69-b368-48fe-a6ef-297c048f63b6","block_type":"box","text":"foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover,","page_number":48,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"c1de21e1-df5b-4837-825c-463dbdd3b4c7","block_type":"box","text":"there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":48,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"bd99c544-f716-41ef-b528-3c8ceaa7f758","block_type":"box","text":"United States.","page_number":48,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"6fed0c78-491b-48d0-9c97-710ce6204e7c","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":48,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"6e8ef3c9-1783-4f56-9b98-0161a67a24b5","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":48,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"ea9e0b4a-7441-493d-affa-13fb2a4dd14c","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":48,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"207bf9e7-f209-46cc-a9e3-6e220f8e4327","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":48,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"5de730a3-71e9-4f3a-99f3-a9a12039abe4","block_type":"box","text":"securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent quality by a Fund’s","page_number":48,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"c3f712ef-a585-40c8-ae59-45f77db2a252","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":48,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"8ac73684-50ff-4e32-94cd-e390cb24c8e6","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":48,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"cddc1f0a-c696-430d-82b7-e9a3823d74ac","block_type":"box","text":"i.e.","page_number":48,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"acb09dae-465d-48d5-befd-d507c18b0955","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":48,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"efdfe401-3c75-4cc1-9088-a971efc5ec77","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":48,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"908aa840-4daa-44f0-8a9f-daf430883f65","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":48,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"f82205b3-af89-45f8-a2bb-040939274fa5","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":48,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"6815b8b7-ac19-4ce5-9080-fb6c65d88f68","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":48,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"f5eeb0c4-d792-42a3-acb2-6e5848b93fc2","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":48,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"1d114ba3-d3ca-4937-b04a-95f0441d986a","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":48,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"20dcf03b-bc3c-4078-a944-406164e4ece8","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":48,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"280268c2-5d43-4790-8fe9-961478140a53","block_type":"box","text":"“junk bonds” are debt securities that are rated below investment grade by the major rating agencies or are securities","page_number":48,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"ee3d9d3c-2842-40d2-abb5-c6ab038e5b76","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":48,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"1eb619bf-7564-4706-87c7-556eb76bd038","block_type":"box","text":"for gain, non-investment grade debt securities may be subject to greater risks than securities which have higher credit","page_number":48,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"9bc71bad-956f-40a9-adc2-7d1e1067a896","block_type":"box","text":"ratings, including a high risk of default, and their yields will fluctuate over time. High yield securities will generally be","page_number":48,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"f01d321f-5dc9-495e-95c8-02a5c7b7ec00","block_type":"box","text":"in the lower rating categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P)","page_number":48,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"69579364-a56c-45e9-9eb5-fb6234525290","block_type":"box","text":"or will be non-rated. The credit rating of a high yield security does not necessarily address its market value risk, and","page_number":48,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"052011e0-ad9f-4a05-a099-563b469d249d","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":48,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"ab5d427c-1690-42d2-a513-bf879bad81c1","block_type":"box","text":"condition. High yield securities are considered to be speculative with respect to the capacity of the issuer to timely","page_number":48,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"874efb1f-3361-4dbc-834f-becc440ce38f","block_type":"box","text":"repay principal and pay interest or dividends in accordance with the terms of the obligation and may have more credit","page_number":48,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"b1f8e815-cb6d-4258-a5f1-9f4121752138","block_type":"box","text":"risk than higher rated securities.","page_number":48,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"fa90eec6-a2e5-448a-8e35-718c765ac34f","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":48,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"d7848752-0359-4451-9798-38f856038308","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"11a124be-abfb-4667-a4e5-0282c7b2b589","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":48,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"1cd2fadc-2d75-45d7-b755-c83690531c5c","block_type":"box","text":"in the issuer’s industry and to general economic conditions. Issuers of junk bonds may be unable to meet their","page_number":48,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"7723ad9c-c331-4e1e-9ff2-f95dcc58ffdb","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":48,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"572c8d2a-f546-44ad-8ed2-3506e2c15d59","block_type":"box","text":"unavailability of additional financing.","page_number":48,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"1dae87c8-e192-472d-a333-58f18e6e8784","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"4fe9baa9-d12d-4aa4-a8c8-6fae74d693ea","block_type":"box","text":"The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of","page_number":48,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"4aeaecf7-a892-4e12-a9cf-bb7c285688fe","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":48,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"700e56ec-c23b-4d90-9f79-3a921b49581b","block_type":"box","text":"The issuer’s ability to pay its debt obligations also may be lessened by specific issuer developments, or the","page_number":48,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"4aaa47d9-71b1-4648-bee4-a53ed56160eb","block_type":"box","text":"II-10","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b62c8620-105f-4bcb-a1a0-23531792acb5","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":48,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d707cac9-a4d6-49e4-bb2d-72f11d83ed58","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":49,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"fcce0042-6650-48eb-9704-13fc99db2cbe","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":49,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"987f239d-a680-4503-ab73-c77cf676cce9","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"d41fdf36-a704-4634-9df3-3c0a79220978","block_type":"box","text":"Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the","page_number":49,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"9e80e8e2-76e1-4447-869d-60c362a90ea9","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":49,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"b6b77e46-7ade-40c4-b0fd-11fd9d61ee4f","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":49,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"246a99eb-f1dc-4c2e-a303-01d3d95046b7","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":49,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"38be2ba4-d431-4b1b-8710-e67b5035c82b","block_type":"box","text":"investors in higher rated securities.","page_number":49,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"4d47d223-5a9c-4892-91d7-5d377680a550","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"1c135f98-fd88-48cb-9330-ee9ad6d50684","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":49,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"dc270eb9-a140-412b-883f-ad29a690c957","block_type":"box","text":"before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the proceeds in bonds with","page_number":49,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"ca864a15-70a3-4f6c-997d-47affb4ce500","block_type":"box","text":"lower yields and may lose income.","page_number":49,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"4310d242-a9dd-448e-8cb1-709e6e6e29c5","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"feff8fd5-cc6a-4538-b5a9-e18fe7e14813","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":49,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"9fb81f4b-b04c-4706-bd05-8cbdbd8423ad","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":49,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"6e1756b7-9d9d-4111-8e9c-2fd4fdc3c798","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"cb280edb-8553-4caa-9859-0ade4c2ccffb","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":49,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"80366222-24d7-47df-a2f7-a6f36bced1e5","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":49,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"532918b5-0f67-4327-9218-b0c57c8c886c","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. There are fewer dealers in the junk","page_number":49,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"b16e9fde-1c48-4eff-9ae0-33e7aa723ba1","block_type":"box","text":"bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers, and","page_number":49,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"bce17b3b-a08b-4b84-9b1c-5ab1dcd4eda0","block_type":"box","text":"such quotations may not be the actual prices available for a purchase or sale. Because junk bonds are less","page_number":49,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"3a400652-a7da-40cb-9438-efc90002a0af","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":49,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"1dc799a8-6bef-4b7c-92df-6a5a0a73fa38","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":49,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"c8b2f2a9-3264-4c79-b3e5-0380340a7aff","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"9d3c5e18-75a5-4590-aac8-3cc9a560f5bf","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":49,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"4799bf20-6848-4d08-9b32-81a43e5320d3","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":49,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"0d7989db-9370-4f09-96ef-c8c2d3835280","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":49,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"de5e160b-266f-47f2-9f47-a694d96cd523","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":49,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"4b25113e-8375-48ae-9b48-620e6b99fc27","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":49,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"4080349b-676f-4027-ab3d-2eb6c70c092e","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":49,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"8f5d2503-fd95-454d-962a-38066fa91f3d","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":49,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"886e2fa1-0483-4789-ac80-927014da1127","block_type":"box","text":"due to the limited number of investors in that sector of the market. An illiquid secondary market may adversely","page_number":49,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"9ca50b13-56ca-4e7e-ae7f-598c16d104e4","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":49,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"921f4889-cdc1-4d50-a1e0-7ce47210c349","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":49,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"7feb176f-d4c9-439e-8c5a-93391ef1e9b1","block_type":"box","text":"on high yield securities are available only from a limited number of dealers, and such quotations may not be the","page_number":49,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"502383e0-7fb3-4810-b77e-f8743cbcd348","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":49,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"3908ee4d-9712-42db-a9df-ad2ac60fda93","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":49,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"462eea88-928d-4e3e-ba44-9d6d139a8aad","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":49,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"a643e502-657e-4aea-a401-d6ced2fbb64d","block_type":"box","text":"role in determining such valuations.","page_number":49,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"12d1bae6-9ae2-4636-926c-14fcbcdbd75f","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"b04ea84a-1a9c-4c84-8c37-4244a77d9a09","block_type":"box","text":"A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with","page_number":49,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"4ee714a3-4ceb-4c07-873f-38e6f6600aa0","block_type":"box","text":"a defaulting issuer.","page_number":49,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"9ffd6423-467a-4362-9a28-2b672d973bf0","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"e7693347-c4a7-4deb-acbb-216c8d969627","block_type":"box","text":"The junk bond markets may react strongly to adverse news about an issuer or the economy, or to the perception","page_number":49,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"cf8c0ecb-0cb6-4ab7-ba64-880a38a6d4b5","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":49,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"8aee2ab7-5d2f-4d76-ae29-712725531342","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":49,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"f8c87831-84ad-40bd-8590-773a2d4369ab","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":49,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"8e7e9862-c106-40fc-8dea-e717095cf20d","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":49,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"7cef45df-6ec9-4903-a4df-01acdd53ad83","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":49,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"2e0dc722-232a-4ed6-acef-e7e84218f8fe","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":49,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"0f415db6-8bbc-4e5b-ab46-ca26ffabc4bd","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":49,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"3a192e93-86a5-4255-9425-95c8fe4fb326","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"029cd80a-8196-4426-bcc9-343bebacef00","block_type":"box","text":"The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of a non","page_number":49,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"14a22f44-a192-47b7-8a73-2c7c31eab6fa","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":49,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"3200cfe0-61db-48d8-a636-3659ada47242","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":49,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"b961a11f-bd2c-4f02-92e0-4d4eb019976d","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":49,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"72a3e1fa-4ad9-42ea-bbda-fd879e11805c","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":49,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"df35791e-4db6-4a15-ba4c-7baa4e8e366d","block_type":"box","text":"depend more on the Manager’s or sub-adviser’s own credit analysis than in the case of mutual funds investing in","page_number":49,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"4832c70d-1108-4662-915f-71adb3303ed6","block_type":"box","text":"higher-rated securities.","page_number":49,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"bb9be70d-1dff-4b11-b28b-ab8d86690a37","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":49,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"377c2ca6-25dc-49ab-b966-f7d47e0d5549","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":49,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"bedccf19-b68b-4237-b7c2-0f3b00ee0674","block_type":"box","text":"the securities and the diversity of the Fund. The Manager or sub-adviser continuously monitors the issuers of non","page_number":49,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"333f31f1-662f-4df3-a260-82ba593490b1","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":49,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"8d28e3bb-fa2f-42ca-bf19-b9bd78efd669","block_type":"box","text":"II-11","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ddb5d152-4df2-4721-8acc-685d5275a07c","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":49,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a4c42ad2-65a6-4cf5-85e9-5f7423145b40","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":50,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"643fa4cb-0ee0-4d3e-b624-c5f80950b529","block_type":"box","text":"is reduced below the minimum credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will","page_number":50,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"51ad1b40-e26d-420f-ae92-8d30efbdeb90","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":50,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"e83c4c07-13b1-4bf8-a4ba-8fa8bae18cfb","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":50,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"e4399668-ca34-401f-845f-c0c9c1ee3124","block_type":"box","text":"the Fund could be forced to sell its holdings without regard to the investment merits, thereby decreasing the assets","page_number":50,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"dcb443a7-717b-43b9-9ec1-19c2af351f5c","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":50,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"7cffe8bd-0f4b-4246-a6c4-6eb41ef82b53","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":50,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"f5e9a7e7-2fb3-4008-bdf7-29011f6995a3","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":50,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"6f32ebd7-583a-4f9a-8251-b2f7b7ae6cdb","block_type":"box","text":"Mezzanine Investments.","page_number":50,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"27118b4a-3ef0-46b2-a56d-c3fda8fe2e79","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":50,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"1a11199c-465f-4eb7-9fd6-595da46703ee","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":50,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"2418116a-a96c-46e2-8a33-b110d13faa6b","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":50,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"fccd0d11-3ee3-47da-beea-c79c1b810428","block_type":"box","text":"e.g.","page_number":50,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"b1f47162-7fcb-4fcd-affd-5736abe47252","block_type":"box","text":", with","page_number":50,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"cd9c7643-029b-4ffa-a054-4e21416f1f82","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":50,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"968730cd-28a0-46ee-aa43-d960712a1d90","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":50,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"4939c9e0-98a6-48d2-a30f-3cd32fed3551","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":50,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"c291e43e-c256-4d04-ab4b-c0447b8996ae","block_type":"box","text":"other obligations of the issuer.","page_number":50,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"0b2e51f3-940b-4499-a7c7-49e3d1ccf413","block_type":"box","text":"Pay-in-kind Bonds.","page_number":50,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"b2061690-78e9-4073-9741-89eeaa34e7c5","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":50,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"b4ecbed7-58c7-46a1-9b3b-b39bed4fca05","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":50,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"39c02312-3cba-409a-a830-b2026739de7e","block_type":"box","text":"bonds also carry additional risk as holders of these types of securities realize no cash until the cash payment date","page_number":50,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"8d5e9643-4c9e-4e3f-8e32-ed031478ca0b","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":50,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"74b5b691-1b40-40ee-a52c-7fc752a7f658","block_type":"box","text":"investment. The market price of pay-in-kind bonds is affected by interest rate changes to a greater extent, and","page_number":50,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"1a801cae-c743-4b47-9e20-b6001861e415","block_type":"box","text":"therefore tends to be more volatile, than that of securities which pay interest in cash. Additionally, current U.S.","page_number":50,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"fc26f18b-a75d-47c9-8fc8-3052e32e4cbd","block_type":"box","text":"federal tax law requires the holder of pay-in-kind bonds to accrue income with respect to these securities prior to the","page_number":50,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"84d43434-ec86-4e69-abab-bc35884f3700","block_type":"box","text":"receipt of cash payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":50,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"235a97c0-4332-4bff-a254-06adfdba8c93","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":50,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"3356a38f-413b-4372-99f8-036f8208424c","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":50,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"397853d5-64fd-47c1-8c73-a5d450120877","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":50,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"520216ee-139d-4217-831a-a6a805aa8088","block_type":"box","text":"Supranational Entities.","page_number":50,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"2b3d40a8-dcc2-43fa-9976-61969eaee68f","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":50,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"34fac5ba-f58d-4a34-aba9-04b049c9d612","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":50,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"0b225c5e-0a0b-411e-8c88-b957b029707c","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":50,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"e82ca3f0-4bcd-4a2c-a461-6b8dfb78f584","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":50,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"c1421a6e-f187-4295-8e06-b84bb91adbe0","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":50,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"3e5a4449-793c-4b91-8092-d966aace6a44","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":50,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"1f0e8ebb-2c74-472b-9f27-53d2621ce8f4","block_type":"box","text":"additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay","page_number":50,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"d6a27ba4-f8f6-43d0-8e8d-0484485df044","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":50,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"1fdf60fd-8121-4f5e-acbd-5d2812658297","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":50,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"00058cde-c365-49d1-b4f9-252d6d736080","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":50,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"28b160f7-bc65-4d2b-8a4c-247d539bcb47","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":50,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"8fed949f-0f74-4bc3-b92a-88715096f060","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":50,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"db92cfb3-90fc-4a31-a95b-14f380cdb2c3","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":50,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"c0976b47-bd79-4db9-91d5-b3c42bc09132","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":50,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"a8d258d5-bab5-4866-a6a0-adca2b4c08e3","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":50,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"7d205b70-91f4-4604-8980-cc6c2faa387f","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":50,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"820e9b16-9bdb-41c9-834e-b3b9e3139b20","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":50,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"671927bc-c9a7-4f80-9ad6-32d467effe19","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":50,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"40830e8d-4046-4fba-a996-963af74a82c6","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":50,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"4eb3ce3a-f132-48f3-b81e-4b5920c6466e","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":50,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"e4c28c02-98a5-4164-9cba-9f1c85c09b6b","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":50,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"d601d306-69fb-432b-b1ae-344ecf742949","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":50,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"c367fb3b-61e4-409f-befa-8be50fa9c3c2","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":50,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"c21dd850-4a2c-4efa-965e-2eb9e76512c5","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":50,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"ef33f434-72f8-4da5-aad4-cacb6e74f7a7","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":50,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"f758301c-878a-49f0-8a72-73226f21b016","block_type":"box","text":"Available information concerning the issuer may not be as current as for sponsored ADRs, EDRs and GDRs, and the","page_number":50,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"bac81938-0d8e-456d-baf5-f880a4682175","block_type":"box","text":"prices of unsponsored ADRs, EDRs and GDRs may be more volatile than if such instruments were sponsored by the","page_number":50,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"cdc4e0f8-f3cb-4815-b244-afce643a006e","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":50,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"7c454f8a-d5f5-4982-9994-68cc322e7196","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":50,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"1dd4e2df-9dc8-4381-a7b0-ea45c26fe95a","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":50,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"441abfdb-7d9c-440e-b468-1ee5ebdc3bea","block_type":"box","text":"II-12","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d7a2a5a6-1ee3-4378-ae43-bb4b03a44834","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":50,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6b3369d8-2b98-47cb-bd6f-dea359830aaf","block_type":"box","text":"Derivatives.","page_number":51,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"2acc1dce-3d86-495f-a01c-8a90adfc7798","block_type":"box","text":"General.","page_number":51,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"92da7981-3558-4c5b-b08d-c9856c9867d5","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":51,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"ec9a8422-a91c-429a-8734-575dca2ea924","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies, interest rates, credit events or","page_number":51,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"29d6521d-c86f-4f68-ac23-0d65b0444ceb","block_type":"box","text":"indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate) or other reference asset.","page_number":51,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"a0e5ee29-75d8-4209-b5ef-d77ca85baf5d","block_type":"box","text":"Derivatives may allow a Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and","page_number":51,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"3d1370d6-5ac0-4ac5-ba80-59c03aa2fa2b","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":51,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"b85ef8ad-92ca-4801-b3eb-f8dbe4707ab8","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":51,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"22471d09-bde3-4bd4-8488-b3997b573fd6","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":51,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"5ecd752e-244d-4bf9-88a8-c523af9ffef4","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":51,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"27409099-7e84-4c3f-bc71-8bfaddcb8e0a","block_type":"box","text":"i.e.","page_number":51,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"f2bbb7d2-c77c-4a40-8156-09d0d6eb1f8d","block_type":"box","text":", the payment","page_number":51,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"f496d375-3acf-46d2-af58-ea4da4d11c13","block_type":"box","text":"obligations of derivatives contracts are netted against one another with the Fund receiving or paying, as the case may","page_number":51,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"9af8accf-b6d1-48c7-8ae9-f7f771380b9a","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":51,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"46b12846-5f0a-472c-9efb-e0ff888ff63d","block_type":"box","text":"Hedging.","page_number":51,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"342a66f2-506f-4135-829c-00a5b78b70e8","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":51,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"349f902f-1910-4765-b17d-bd31751fcf37","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":51,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"442b2979-b478-43d2-a0c6-31a75ba06f0e","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":51,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"742f1b25-f5d0-41a0-97d4-371f06d686d9","block_type":"box","text":"reduce or eliminate gains. In addition, hedging may cause losses if the market moves in an unanticipated manner, or","page_number":51,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"ced9cace-cb8f-417b-8155-ec60df954ee4","block_type":"box","text":"if the cost of the derivative outweighs the benefit of the hedge. The effectiveness of hedging may be reduced by","page_number":51,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"87686618-48f6-4880-9a04-b6fa285d5948","block_type":"box","text":"correlation risk,","page_number":51,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"30fb0a6b-1c47-486a-8f2d-87d5e6f00acc","block_type":"box","text":"i.e.","page_number":51,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"523c4ddb-3624-4b2d-98eb-347a2f565378","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":51,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"71eb18f9-ce7d-4269-bf9b-406edb5ee216","block_type":"box","text":"hedged as expected by a Fund, which may result in additional losses to the Fund. The inability to close or offset","page_number":51,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"33cdc57b-2046-4972-ab7c-d104f11a6554","block_type":"box","text":"derivatives could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging will","page_number":51,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"47c21e05-b848-4ae4-91b4-1715acf771a6","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":51,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"515f286f-8b5c-4945-b42e-fb67486cc175","block_type":"box","text":"Speculation.","page_number":51,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"db1e0997-5b3a-4af9-aa4f-52a7c724ee6d","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":51,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"76828276-ed2b-4c5b-b77e-6d49e8178b2d","block_type":"box","text":"use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather than offset the risk of other","page_number":51,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"8fac7ae4-bb54-4015-90b7-bbb241357570","block_type":"box","text":"positions. To the extent a Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the","page_number":51,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"12876d35-a309-435a-9ea0-8ee67de97a4a","block_type":"box","text":"risks of loss of that derivative, which may sometimes be greater than the derivative’s cost, and the potential for loss","page_number":51,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"9535f40e-ceeb-4104-bc46-d241bd510dd8","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":51,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"e1556ca0-4fcf-4bfd-9aa7-a873c50c03ca","block_type":"box","text":"Regulation of Derivatives.","page_number":51,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"1cedd3f8-a295-4044-84c8-0cb0efcca34a","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":51,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"28f2aa66-e5bf-45a1-9362-ee84d788dd02","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":51,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"43c76067-07dd-474e-8114-e5790633b4c5","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":51,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"4556c082-c8aa-472d-b915-94d783c697cd","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":51,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"fbe4fdce-8127-46d1-82c4-8603593c3f4c","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":51,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"d9f7196b-4a68-412d-b415-feba2002a482","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":51,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"b89139d1-ae88-4296-9758-b368efa00f0c","block_type":"box","text":"coverage”).","page_number":51,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"d33edeca-2849-412c-bcb3-c16232b0fa3b","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":51,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"dadbf395-2f58-47e3-9082-0cf5020a1e60","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":51,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"56890166-0916-4b31-9f85-d46881d44936","block_type":"box","text":"of the foregoing, or any similar instrument, under which a Fund is or may be required to make any payment or delivery","page_number":51,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"791cffe7-5ba5-4067-b65a-1b224c228f86","block_type":"box","text":"of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or","page_number":51,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"b1ddd32f-b329-460b-90fa-88c3039a50c9","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":51,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"39cb40ca-3f7c-4c39-bdfd-6454813e2a67","block_type":"box","text":"financing transactions (","page_number":51,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"76729152-8c09-4a5d-9914-cc98efe320fa","block_type":"box","text":"e.g.","page_number":51,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"dbccdfdf-382d-4a2f-9d57-37271cd5bfc8","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":51,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"9a4e6d58-95a1-4fa5-a79f-c9379668ddbe","block_type":"box","text":"treat all of these transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":51,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"df75e2eb-f945-43e3-99a7-366da31fb7be","block_type":"box","text":"securities (","page_number":51,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"4b7f5833-6d1d-4095-904d-2f1e59144470","block_type":"box","text":"e.g.","page_number":51,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"e9966691-534a-478a-9422-6ce8e52431c8","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":51,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"743c36ee-d112-4622-9025-bd8d4551db31","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":51,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"43095384-bd98-4d35-8b5b-208e2084d7ef","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":51,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"483d7b77-3eef-4d8c-8ea0-cba231328690","block_type":"box","text":"Commitments”).","page_number":51,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"2c53d8a2-a439-481c-9a6f-58f8593efcc3","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must comply with","page_number":51,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"70536c42-75b1-45cf-8076-4244dfbf3ef7","block_type":"box","text":"Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires a Fund to adopt and","page_number":51,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"db22ab95-9341-4d07-953b-65a098d948bd","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":51,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"89c02f30-93cd-4fd9-af39-c04ba1b3f44c","block_type":"box","text":"absolute limit on Fund leverage risk calculated based on value-at-risk (“VaR”). The DRMP is administered by a","page_number":51,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"cff5e4e5-5dbc-43fb-abbb-8b82004c7699","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":51,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"4309b749-3e8c-4d33-89d7-37a0aa71ae9e","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":51,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"01bb1da6-a228-4542-9ad7-7a57b6b87e9f","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":51,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"def70e42-df26-4caf-a159-475cf12a384d","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund","page_number":51,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"61fd071a-3518-4505-9534-c5cc82943b23","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":51,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"d0d93107-84ec-40d8-8b30-c03f9606c66d","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":51,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"e83bdfd0-914a-468a-acfe-65aa62219a33","block_type":"box","text":"II-13","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"99c32b64-915c-46a9-a8ff-3a8595b2fefb","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":51,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"4b18cb63-dfeb-4870-b6dd-079da2e9d4dd","block_type":"box","text":"Dodd-Frank Regulations.","page_number":52,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"21f6a2b7-748b-46a6-a66b-3d9cb632f215","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":52,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"e83a1f2b-168a-49de-b33d-8c06769681c0","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":52,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"02d4872a-59ff-4ec8-b7d7-f31b952c50b0","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":52,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"82bc0f97-9621-44a9-baea-dc0792bb219e","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":52,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"a41dca79-6a31-48be-9770-ee6aa018b567","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":52,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"ca1da56e-f988-4f38-abc7-03377299af66","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the SEC as","page_number":52,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"9abfdb0f-e854-4916-a473-353068f2bf5c","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":52,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"2c693687-6af9-4b7a-b97f-348f74c2c568","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":52,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"8907b222-3f87-4863-9940-e8d2718ee9ff","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":52,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"5ee0e6ab-5199-4e98-8049-a48670a110b7","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":52,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"97e1e7dd-9973-4a5e-ab8f-ff19bc1721d6","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":52,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"df40264a-2f68-4c61-b643-c504b262905c","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":52,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"ed489c4e-ae83-4928-b608-6b9ffb889290","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":52,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"52be023c-319b-4489-86b4-8cc568564113","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":52,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"8fa6bfc8-86e2-429f-9f58-86cc55f8005c","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":52,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"13876c2d-206d-4b83-b14a-9144121b9ea9","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":52,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"990cb3ae-2919-411c-94a4-e4b6c2504301","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":52,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"da28dd5e-84aa-4347-8fc4-86020331e590","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":52,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"86701258-fb43-4235-b726-6658b560616e","block_type":"box","text":"the FCM and the customer. These regulatory requirements may make it more difficult and costly for the Funds to","page_number":52,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"da29d5fe-c23a-410b-bd5f-f8e8a02ff0f4","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":52,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"5e5bf9fa-d471-4ef9-a125-b46d01f2caa0","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":52,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"e10dec5d-e471-4b2f-8835-6271c4a85fc5","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":52,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"96994919-acea-4ecd-83c9-d25dc111f426","block_type":"box","text":"member FCM or as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":52,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"97076352-8af1-4bd5-ba7c-1ada2c8af6a2","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":52,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"6960f899-b1c6-49b5-80a1-f4a092bf9e00","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not face a","page_number":52,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"29c36902-2834-4ef0-9a86-378fe88c0d73","block_type":"box","text":"clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/or SEC and that acts","page_number":52,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"d0f980c7-c8be-4c24-90b1-297d9277b3d6","block_type":"box","text":"as a clearing member. A Fund may face the indirect risk of the failure of another clearing member customer to meet","page_number":52,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"b1f00898-1d3c-4410-ba97-c06a30107764","block_type":"box","text":"its obligations to its clearing member. Such scenario could arise due to a default by the clearing member on its","page_number":52,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"675edad7-1074-4d4d-8fbb-57c31d51e213","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":52,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"70c8cf86-be52-4b63-b153-f87bdeb2bf37","block_type":"box","text":"member.","page_number":52,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"5908ea9b-b938-43c9-ae7a-98253cc81497","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":52,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"b5e095e3-d945-4dde-ad71-6034416e0dd0","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":52,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"0e96ac40-5d52-4c81-83f8-d4a89d834857","block_type":"box","text":"was widely permitted for OTC derivatives before Dodd-Frank. While an FCM may require its customer to post initial","page_number":52,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"d04af64e-436f-449b-94e1-66573961aabe","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":52,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"c328ec05-0432-4806-9867-7b13b15c0598","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":52,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"8608d564-b9ab-494d-a877-ebaad37b4102","block_type":"box","text":"clearinghouse does not generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on","page_number":52,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"3cdb0c08-823d-4a5d-95a4-0e93edc9c0a1","block_type":"box","text":"initial margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives may cause","page_number":52,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"f197bf5f-bc49-4706-bf40-6525c76ac73e","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":52,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"c0ba67f3-bb94-4652-aa1f-47a4c3537290","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":52,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"ec942e86-7f6b-4fcf-9293-666cdbf49123","block_type":"box","text":"payable to FCMs with respect to cleared OTC derivatives, which may raise the cost to Funds of clearing as compared","page_number":52,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"2d2baa00-2535-4f03-bd3c-7a50e6d76650","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":52,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"519c93ba-b222-4140-a45d-3500ac303172","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":52,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"8db1af88-c83e-421f-9f68-3470cdf1f297","block_type":"box","text":"exchange variation margin with a Fund and may be required by applicable regulations to collect (and in some cases","page_number":52,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"c7cc91dc-f51e-4bb4-95b2-12edb406d54b","block_type":"box","text":"exchange) initial margin with a Fund. Both initial and variation margin may be comprised of cash and/or securities,","page_number":52,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"315cbcbe-6aa0-4c7b-ac55-c6df5e5f2b64","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":52,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"31824d6a-a460-43b0-ba14-2ddbfafe4c37","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":52,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"6a3f7079-68ec-42fa-97c9-5e7aa76e337e","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":52,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"4d6259ae-9c20-4e1e-9d64-67752779d298","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":52,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"574a01ed-0920-4a94-a8ee-366d64ec6a50","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":52,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"84d49ea3-55f2-46b4-a314-681a9d05070b","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":52,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"1bbc6743-af7a-4769-9291-6eed5177318f","block_type":"box","text":"commodities. All positions owned or controlled by the same person or entity, even if in different accounts, must be","page_number":52,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"97d62785-ac8f-4af7-9289-ab67f5af8b83","block_type":"box","text":"aggregated for purposes of complying with the speculative limits. Thus, even if a Fund does not intend to exceed","page_number":52,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"df2e9c1b-4a55-4f5a-8789-792f0ef4fbfb","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":52,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"2423d426-3596-476b-b124-a628f6724178","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":52,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"0b3c0608-f8ef-4ba5-87ed-23b786218dd9","block_type":"box","text":"held by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions or the","page_number":52,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"7cdede97-cefe-4385-884b-e6ce078d248e","block_type":"box","text":"II-14","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"69385431-ce59-42a6-bf90-121781234be3","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":52,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d48ef6ed-bafb-4303-8309-5dac8bfcdc21","block_type":"box","text":"elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A violation of position limits","page_number":53,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"e8d0f25a-1ab4-44d0-924f-30fd77ca1b62","block_type":"box","text":"could also lead to regulatory action materially adverse to a Fund’s investment strategy. A Fund may also be affected","page_number":53,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"799b9c63-96c7-4fa9-84ce-2cfd9364dd2a","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":53,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"1f8b6d9a-11d4-430d-832f-87db28db8c64","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":53,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"156661dc-5ce6-4da7-b2bc-7ee400a944f5","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":53,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"76e751d1-5623-425d-8fb4-c49f58dea436","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":53,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"f86e49fd-1fd5-4fca-8ea7-df5080c9cdfc","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":53,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"90dc0f7f-8e3f-45ec-ba99-29b5a99681a7","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":53,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"11839ce8-7ea7-4df4-bd6e-1003fdf0d666","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":53,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"4e40599c-eff3-4964-8053-a30c57f2b014","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":53,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"138aff0d-6652-4ba7-a240-0f64993fa2a8","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":53,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"e8a59608-bac9-42ea-86e9-aa8f69752d4b","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":53,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"e6367a8f-0250-41c3-8ee1-19b813ebb934","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":53,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"daa842b4-d620-43fe-bd54-62a97e5447e5","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":53,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"c843f9e1-7c73-47e1-b00f-789064dda31c","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":53,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"64575f49-8411-4541-8133-d7739fd7d40c","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":53,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"58cd5ae2-0170-4a55-8635-12d171c74f23","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":53,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"b9e3f2f9-f49c-446c-8d85-51a1336bb9a6","block_type":"box","text":"Member States to apply position limits to the size of a net position a person can hold at any time in commodity","page_number":53,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"65bf0813-b04c-4d9b-a4da-f71059d9f732","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":53,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"b18bdc30-27b6-4494-92e7-91a64f17a71e","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":53,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"4156fdf0-397c-4e2f-bca0-86df9dab8541","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":53,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"c730d7a9-5bd9-455c-a7d3-d80b4dcf8ce8","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":53,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"9813e4cb-fd9d-4345-806c-d97a7f0cca85","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":53,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"acddda90-62e9-438a-a7ef-84c7812f81cc","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":53,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"26a5dd58-9c0c-44aa-9af4-febab4115ad9","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":53,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"5ceed4d7-f667-40a5-b7ae-cd7d40573cc3","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":53,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"a1e8652d-0a54-414a-a9b3-991f7215a433","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":53,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"681b4d93-3e47-429f-b0c4-75a0faac2983","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":53,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"3095c6c3-3793-4fab-9566-d39a4629d176","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":53,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"52640edd-c384-45b4-a625-85f9a4e91e57","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":53,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"72ac0d04-8834-46f9-bdce-d7cc784babc8","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":53,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"1343fd40-82e3-4d40-9df7-679eda876c59","block_type":"box","text":"collateral received under such contracts.","page_number":53,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"caeba3bf-ee72-4cfc-bc79-d2e3d7f4cc06","block_type":"box","text":"Risk Factors in Derivatives.","page_number":53,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"2677b78c-65d5-44a5-9e64-7689c5ee0441","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":53,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"a354b148-445b-4037-8f09-2d2506c06714","block_type":"box","text":"Correlation Risk","page_number":53,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"127afd1e-bf6b-485e-88b9-20d1d251e8a0","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the value of","page_number":53,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"5d4fc210-e128-4bfb-8c4c-1937fd078c62","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":53,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"b0af378a-6051-44bc-8d1e-bfe7aee4e642","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":53,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"885d185b-2afd-45b5-a7f7-b0b1288069b8","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":53,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"24ae748c-f211-4768-9354-7cb2cd19f054","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":53,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"af367128-de8f-4242-b530-e0b83a191252","block_type":"box","text":"Counterpar ty Risk","page_number":53,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"09109c2c-3c0f-4e0b-9aeb-6dd434ca8e7d","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":53,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"36006ad7-2f82-48d4-802a-915f80f8bdb3","block_type":"box","text":"payments or otherwise honor its obligations to a Fund and the related risks of having concentrated exposure to such","page_number":53,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"1ad20878-2835-415e-8ce3-739a7a52e170","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":53,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"1c05d0be-c0ea-48b0-88aa-ca2637bf9467","block_type":"box","text":"corporation and often do not require payment of margin, and to the extent that the Fund has unrealized gains in such","page_number":53,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"6356c10a-9b58-47e8-9025-ec94c8665bec","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":53,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"bf8e445a-44e3-4f97-8f58-03c86edf3a88","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":53,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"aedf05ff-3d16-419c-8eec-bd6369eeb9d6","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":53,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"e8c8c778-1a4b-4f38-bb5e-02bf76f8ad71","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":53,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"5e27fc65-d350-4ba7-9f64-97e792b5026d","block_type":"box","text":"transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is subject to the credit risk of the","page_number":53,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"7d8f8bdc-5467-4e87-9606-6c0f8abffcb1","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":53,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"e729f32a-fc1c-4110-9bf5-2792beb63c6f","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":53,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"5b975f6f-5c5e-4453-a11a-43eccc3140b3","block_type":"box","text":"clearing members. It is not clear how an insolvency proceeding of a clearing house would be conducted and what","page_number":53,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"8fdd8ae5-b6e7-43f6-b32a-8a1cfbcdffe6","block_type":"box","text":"impact an insolvency of a clearing house would have on the financial system. Also, a Fund will not be fully protected","page_number":53,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"4cb363e9-afc5-4d78-9a01-bff4adfa81dc","block_type":"box","text":"in the event of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":53,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"579db7db-9e9d-4edf-a3fb-feb68612f09a","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for cleared","page_number":53,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"d1f5e006-85c7-48f9-8320-9bbe69d5e97f","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":53,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"ed30a555-bd31-4579-8e8b-6ca948332a67","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":53,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"68d16266-a60a-41da-8e95-fa84116955d7","block_type":"box","text":"II-15","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f97e363a-f7ae-4b14-a725-70855b6b1cb8","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":53,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"4eded7ae-9672-48a5-93ca-00ecab2a3206","block_type":"box","text":"applicable regulations, or in the event of fraud or misappropriation of customer assets by a clearing member, a Fund","page_number":54,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"ddaaaf17-e9fa-474a-914e-05000c65680c","block_type":"box","text":"could have only an unsecured creditor claim in an insolvency of the clearing member with respect to the assets held","page_number":54,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"c35bcdaa-7020-4aed-ac13-b76eec1abab9","block_type":"box","text":"by the clearing member.","page_number":54,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"f7e8f687-bdff-4fc3-832c-4e2a90602b92","block_type":"box","text":"Credit Risk","page_number":54,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"e52bbf88-b337-435c-85e1-7f4f585c86c4","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be able to","page_number":54,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"df553a57-f826-40a8-b177-31db473e3a51","block_type":"box","text":"honor its financial obligations.","page_number":54,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"b0dc0acc-fe5c-4a95-9c6e-7d8f2671e9c3","block_type":"box","text":"Currency Risk","page_number":54,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"6071c5bc-2436-498f-b484-f3ad94684640","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":54,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"927cce5d-1413-4c90-bd1e-20f54353932a","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":54,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"d6292bfe-8554-416e-b7ac-8a8bcb104dfb","block_type":"box","text":"Illiquidity Risk","page_number":54,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"c5afe1dc-d544-4a4b-88ef-f6aa39a32808","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":54,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"7145778f-dbb8-4a2b-9102-aacf08fa3214","block_type":"box","text":"or at the price desired by a Fund in connection with payments of margin, collateral, or settlement payments. There","page_number":54,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"e2a05312-5ced-4367-b43d-1dedc5010765","block_type":"box","text":"can be no assurance that a Fund will be able to unwind or offset a derivative at its desired price, in a secondary","page_number":54,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"d4e977fc-9bb9-4377-9cc0-f8ffd2cb7120","block_type":"box","text":"market or otherwise. It may, therefore, not be possible for the Fund to unwind its position in a derivative without","page_number":54,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"2d590a0f-ba18-494e-9242-1caa5a8a0dff","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":54,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"7de60cd1-507f-4435-8132-6e02caa9f651","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":54,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"583061ab-28db-4f5f-92eb-dd00a4d10819","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":54,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"aa23cd57-d274-4442-b84e-447826e97cf2","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which the Manager","page_number":54,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"49d23e05-8ed9-4d48-8a73-9e7f11c9f137","block_type":"box","text":"anticipates the Fund can receive on each business day at least two independent bids or offers, unless a quotation","page_number":54,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"36257bd1-49d3-441d-bcab-574abf81f17d","block_type":"box","text":"from only one dealer is available, in which case that dealer’s quotation may be used. The illiquidity of the derivatives","page_number":54,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"db8c72ac-ed56-41da-831e-90cc3dcc8771","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":54,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"23068b42-ff77-4770-a3dd-8d74dcff06cc","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":54,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"b2921f3a-c41d-4efe-8bac-bc6ed21c7efa","block_type":"box","text":"failures. In addition, the liquidity of a market in an exchange-traded derivative contract may be adversely affected by","page_number":54,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"2b367f8e-5170-40be-8a22-1b4cdf63ec82","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":54,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"b6cea23a-72f1-4e50-8e3d-30a0a815cbab","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract, no trades may","page_number":54,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"710235dd-0518-440e-a60b-b26d2d07e3b4","block_type":"box","text":"be entered into at a price beyond the limit, thus preventing the liquidation of open positions. Prices have in the past","page_number":54,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"3e684164-d9bb-43f4-9505-d7847dc5054e","block_type":"box","text":"moved to the daily limit on a number of consecutive trading days with little to no trading. If it is not possible to close","page_number":54,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"84b1a3ad-67db-42bf-a227-b56ca5b732d2","block_type":"box","text":"an open derivative position entered into by the Fund, the Fund would continue to be required to make daily cash","page_number":54,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"9323da6a-bab3-4002-9124-6ba0a7cc879a","block_type":"box","text":"payments of variation margin in the event of adverse price movements. In such a situation, if the Fund has","page_number":54,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"34e313dd-a5c6-45d6-b064-9b836e3a54aa","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":54,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"e34b2d6c-e99d-4a2c-89c7-617f6c3bcdfb","block_type":"box","text":"may be disadvantageous to do so.","page_number":54,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"9d99f81e-13d0-4a17-8acb-d79acb9d8ba7","block_type":"box","text":"Index Risk","page_number":54,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"d6ee6e67-48bd-494e-a002-33b66f36f873","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":54,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"7e746d72-4d16-47b4-9b75-ec2af0824974","block_type":"box","text":"with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a","page_number":54,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"a38d4f44-a55b-4ebf-a26b-0b3bace6ffcf","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":54,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"8a2192d0-04a7-4be5-b25b-ae18726a6793","block_type":"box","text":"Legal Risk","page_number":54,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"bc7288f4-bc57-46e2-9054-d4f2eb59c4f1","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":54,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"99b9616e-210a-442c-b2b2-bb3a233f74b3","block_type":"box","text":"or enforceability of a contract.","page_number":54,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"9a0b7ad7-e97b-4b92-aa06-f8a953a9119f","block_type":"box","text":"Leverage Risk","page_number":54,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"d0d7344d-594e-4ab9-9d3f-00fe921a02f8","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":54,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"f63f5451-9a10-4d2e-8437-f8b6f74abba6","block_type":"box","text":"Relatively small market movements may result in large changes in the value of a derivatives position and can result","page_number":54,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"ebcf3114-468e-4df4-b48a-fbafd99b2083","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":54,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"2a8d23a0-190c-4c1a-a57e-5d49cb96e4d9","block_type":"box","text":"Market Risk","page_number":54,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"1fd466fa-ae9c-4ded-8380-d3c5e5f3cea1","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to the value of","page_number":54,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"ae0e746d-887d-4223-8714-495324b09950","block_type":"box","text":"the underlying asset will adversely affect the value of a derivative. In the event of an adverse movement, a Fund may","page_number":54,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"5c0b9227-351a-481a-8ee3-0a360ba9e266","block_type":"box","text":"be required to pay substantial additional margin to maintain its position or the Fund’s returns may be adversely","page_number":54,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"eacb2e0c-ca20-4d09-9acc-e1ac0da8313f","block_type":"box","text":"affected.","page_number":54,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"69fcb98a-2184-4ae1-9be3-393c1fe0d655","block_type":"box","text":"Operational Risk","page_number":54,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"b1943940-f079-4d06-b887-01b0b739a886","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":54,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"aa345f12-43e3-4c16-9e15-4188a46cf608","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":54,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"e6611882-8c3d-412c-8685-7281060e1a10","block_type":"box","text":"Valuation Risk","page_number":54,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"697d03fc-164f-4398-9738-523361eff55b","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":54,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"ee5626da-4e4a-4dc1-b2c6-6c17c8231625","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":54,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"697afb49-88a6-4c82-a51b-992a556f7b5f","block_type":"box","text":"complex instruments or quote prices for them.","page_number":54,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"72a874e3-649f-456d-859e-0307d09a3d94","block_type":"box","text":"Volatility Risk","page_number":54,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"10f26096-48b2-4ca6-8d47-1b5a3a6e5322","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":54,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"dc0777ea-1cd0-4e8c-b15b-bb03f38d5a55","block_type":"box","text":"Types of Derivatives Transactions.","page_number":54,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"10af1c7e-27e6-4365-ae04-79839aede2f4","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":54,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"fe74c5ef-9ff6-4e0b-84ac-b0ee0e0c8f7b","block_type":"box","text":"including the following:","page_number":54,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"7843b2eb-b4c6-4ae8-ba58-c1575be7dfc1","block_type":"box","text":"Futures.","page_number":54,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"e9c1daba-07fc-46b8-ad87-62faa70a4194","block_type":"box","text":"II-16","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3bd54d69-72da-4492-acdd-564ef35c90f0","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":54,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"90405bfc-4e13-46a5-8af5-e45977b83755","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":55,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"7854b621-55b9-4e2f-8aa4-691da51650d4","block_type":"box","text":"exchange-traded contracts that require a purchaser to take delivery, and a seller to make delivery, of a specified","page_number":55,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"c979e692-421f-44c5-945d-6a6bd10b761b","block_type":"box","text":"amount of an asset at a specified future date and price. Upon purchasing or selling a futures contract, a Fund is","page_number":55,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"4500e996-65e6-4fe6-9215-ca1a5e99c637","block_type":"box","text":"required to deposit initial margin equal to a percentage of the contract value. Futures contracts are marked to market","page_number":55,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"bf0fc582-ef57-4cc0-9a09-ec674447b3ad","block_type":"box","text":"daily for the duration of the contract, and the Fund will either post additional margin or be entitled to a payment, as","page_number":55,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"069a6958-707e-4f91-825d-05a273507064","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":55,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"2e4df6cd-b25a-4aae-b096-fa70f422401f","block_type":"box","text":"A Fund may sell a futures contract prior to the completion of its term to limit its risk of loss from a decline in the","page_number":55,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"7dfe3349-9d04-4315-9310-d509ad7fe537","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":55,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"e729195b-7d6b-4246-8665-043dadc700e4","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":55,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"14969c27-4cea-4686-b34e-d1bf01ba0386","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":55,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"29c8fde9-d67e-4376-92ed-1ad04a6de437","block_type":"box","text":"of the futures contract.","page_number":55,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"f572a179-1458-4cbc-b70c-3184ae17021e","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":55,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"97050739-4019-49ad-b3d6-9a7a65e3ab3b","block_type":"box","text":"commodities directly. In the event that such securities or commodities decline in value or a Fund determines not to","page_number":55,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"ab7f6231-344d-435c-8c76-85c0d25b63be","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":55,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"f4e65e56-e903-48dc-afd7-ed3f6f00bffb","block_type":"box","text":"relating to the futures position.","page_number":55,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"1068a848-31f7-4fa9-811d-3078b71ac35d","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may be","page_number":55,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"deb8a223-e7bd-432a-99f0-351ca224ed00","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":55,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"1793042e-088f-4f8c-bcd0-166a68234294","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":55,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"fe7eb4aa-475e-443e-a754-cbbbe1cb5820","block_type":"box","text":"Regulations” above.","page_number":55,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"1e6307b1-037c-468d-abe7-760479c25432","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including financial futures","page_number":55,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"78b4dd31-c27a-4bbd-8fe9-c4fa37f1ce2d","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":55,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"edd7b800-f7d6-412d-aa52-aa4355275df4","block_type":"box","text":"(","page_number":55,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"927cf3f0-e299-4c22-ac3c-42672c8bd683","block_type":"box","text":"i.e.","page_number":55,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"4362dc74-349c-4fa1-b4f5-d1931b0f430f","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":55,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"5b20c3e1-3b7c-4fc7-9e33-c56dce188143","block_type":"box","text":"may purchase put options or write call options on futures contracts and stock indices in lieu of selling the underlying","page_number":55,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"b4a6fd3a-c283-4166-8c8a-f29ea95d2cc0","block_type":"box","text":"futures contract in anticipation of a decrease in the market value of its securities. Similarly, a Fund can purchase call","page_number":55,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"4b053202-7529-4e0e-8961-5ec210076550","block_type":"box","text":"options, or write put options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":55,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"99920bc4-2b50-4b24-a3f6-586058a23170","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of securities which the","page_number":55,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"c6d8c5f7-0751-4c78-8b49-c537cb503561","block_type":"box","text":"Fund intends to purchase.","page_number":55,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"b3e1116b-1c85-4e8c-ad38-7fcb28b16721","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":55,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"c8c52f3c-9c13-476c-8ba2-6abeed07ceb9","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":55,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"e58b8300-14bd-43f3-94cc-1cf1fac67026","block_type":"box","text":"determined by reference to the value of a security, an index of securities or a commodity at a future point in time. The","page_number":55,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"c439be18-db47-4117-895c-b38513a8ede3","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":55,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"41d33950-980e-4250-884a-b35171347ad3","block_type":"box","text":"illiquidity.","page_number":55,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"659b150f-7313-4cb6-93d9-c13bc6b34bc8","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":55,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"8c22cb89-0a74-425c-89db-6abe1fe69eff","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":55,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"2a49aef7-9ae1-44bc-b554-25d52d6ec19c","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":55,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"d945f94a-ae10-414b-8750-7c317f3287af","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":55,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"a10e8a78-e79b-4184-820c-9c7caa8c18b4","block_type":"box","text":"set by a regulator, such as a government entity, on the total amount of specific greenhouse gases, such as CO2, that","page_number":55,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"b0dad7ec-a786-40c1-8c92-e6664c8b2907","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":55,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"23223e3e-c851-4b2a-bbe6-c7f3986a9b94","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":55,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"ec710ca8-2b5a-4b7e-a1f6-ab88e8d5f1dc","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":55,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"0ce60fdb-b080-4e40-8d04-c78fca4c66d2","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the demand","page_number":55,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"0b916e1e-709a-43fc-95a0-03530cf10c46","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":55,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"896652de-57a7-45d4-83a8-f96a5ab2b584","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":55,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"762613d1-d620-4f32-a679-43c11c0d27f3","block_type":"box","text":"for carbon futures contracts is still developing and may be subject to periods of illiquidity. During such times it may be","page_number":55,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"400e9330-e95b-4335-8080-9e1608585eaa","block_type":"box","text":"difficult or impossible to buy or sell a position at the desired price. Market disruptions or volatility can also make it","page_number":55,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"1d64c869-ae6b-4c67-aad1-65792432eb57","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":55,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"e3a819a7-fbbd-4c71-97ea-b3b478dc6726","block_type":"box","text":"Swap Agreements.","page_number":55,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"89fa0823-db5c-46d9-b005-b9d506e810c9","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":55,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"76ca148c-0eeb-44bf-ab3c-4de922e3adde","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":55,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"2d9abe27-aa34-4e1d-aaa9-a0926d680efa","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":55,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"3f2f4579-9d71-4270-82b9-ececcf70441b","block_type":"box","text":"earned or realized from one or more underlying assets or rates of return, which may be adjusted for an interest","page_number":55,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"b7aa3fec-4afc-480c-94ef-3df50383ae09","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":55,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"2a76a360-e2ac-443b-9f21-a8dc04a3b447","block_type":"box","text":"a “notional amount,”","page_number":55,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"deb04841-d915-4d50-bcb2-8c6425946f4d","block_type":"box","text":"e.g.","page_number":55,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"3c77ce88-68e9-49c5-9d04-a2b11e145455","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":55,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"45166f39-adcd-4fbe-922d-95d79c8997e6","block_type":"box","text":"II-17","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f2b67cf4-0d62-43d3-bff8-a8955350d461","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":55,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6189c5bb-5cf0-49aa-abe3-85d050ba50dc","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":56,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"ff8547bd-e397-454c-a385-608c63760df8","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":56,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"ca9332db-84ba-4ef4-a036-d0c89da71d13","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will generally be equal","page_number":56,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"3e4d978f-6540-4c26-be62-793c94e92193","block_type":"box","text":"only to the net amount to be paid or received under the agreement based on the relative values of the positions held","page_number":56,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"8928270f-5b97-4b31-84af-3455914fc20c","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":56,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"5ddaf9be-911b-49b6-8fe3-007327b7670f","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":56,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"89acb4b2-8eb4-4fd9-baf9-d37d62b7fd99","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":56,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"76c68efb-5870-4b94-a9bc-ac7a175a4820","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":56,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"a196a30c-e0d9-4fc7-976c-edb6376c1618","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":56,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"e48b3c0e-5c66-431e-bd43-2706e15a8262","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":56,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"171f7cb8-dd3b-4acd-8fd4-e29682ce1f81","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":56,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"d09236df-bac0-4cb2-9ed6-236d2205f083","block_type":"box","text":"“seller” an up-front payment, or a periodic stream of payments, over the term of the contract, provided generally that","page_number":56,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"9e24f4c1-6099-43e9-b1bb-1e10d2c01a8c","block_type":"box","text":"no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the","page_number":56,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"67f67cd8-e119-4096-a522-4615029bd739","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":56,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"2760e4c2-1c6f-42c8-a8a7-a7ee3af7bec4","block_type":"box","text":"the reference entity. A Fund may be either the buyer or seller in the transaction. The Funds may enter into credit","page_number":56,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"b922816e-8009-4e1f-82b6-f8f094d48dc6","block_type":"box","text":"default swaps that reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that","page_number":56,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"05646182-2b7d-44cc-86af-e6ac8a151c52","block_type":"box","text":"make up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name CDS and","page_number":56,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"1c52516e-f862-4fff-aaa5-d56a92aa0769","block_type":"box","text":"index CDS.","page_number":56,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"0dfe4958-5cbf-4567-8bf8-06f2f857b1c3","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not currently held by","page_number":56,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"3a8fe957-6302-41e2-a19d-818a2db6c19e","block_type":"box","text":"a Fund. In circumstances in which a Fund does not own the securities or loans that are deliverable under a credit","page_number":56,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"fc1b58c2-bbdb-46e7-91db-2bfa73cf3dae","block_type":"box","text":"default swap, the Fund is exposed to the risk that deliverable securities will not be available in the market, or will be","page_number":56,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"e689c40e-3ba3-43f5-a2e7-b0b54fb8305b","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":56,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"6f94c852-f69f-4590-ae18-e46c895b0326","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":56,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"20059dd2-8e55-41c0-9839-65f80cf57ee0","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":56,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"4f44fb39-cd2a-44ee-af5c-324b044b018e","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":56,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"bccbe415-39d2-4bee-9141-c1bbce3788f7","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":56,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"87a7c664-e44f-4f47-bbd8-3064b8ecc914","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":56,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"4089a949-431d-47f3-ac9c-f6a28874e2eb","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":56,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"48ba4344-739f-40f9-8cce-aada1b9dd39e","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":56,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"cf267e02-342e-46c1-94e1-4dbe7d9cab26","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":56,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"391b4198-da15-4a82-8e0f-2e6ed2524ff0","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":56,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"f692887c-8243-43bf-b188-da1e3fe6000e","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":56,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"52c51efb-aaab-470c-8913-722d904f2851","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":56,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"210b12bf-0d38-4277-99bf-0f5234e9c078","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":56,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"cbcae505-3521-4733-a937-2f3ea441632c","block_type":"box","text":"respect to a “credit event” or otherwise does not establish a cash settlement auction, a Fund may not be able to","page_number":56,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"8ac74b70-1397-4f4d-a6f9-11fd4362052b","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":56,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"68ba44e4-68e9-4112-b8b1-ed70c4bc8d6c","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":56,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"4cfd12b3-e946-4b06-a2e2-dd71488fffe8","block_type":"box","text":"If a Fund is a buyer, it will lose the payments made under the terms of the credit default swap and recover","page_number":56,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"f84a31c6-7dea-43c1-857b-365f1f827185","block_type":"box","text":"nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value of any deliverable","page_number":56,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"4420dd7c-4a62-4c15-8898-cce72487908b","block_type":"box","text":"obligation received by the Fund or the amount of cash settlement received by the Fund pursuant to the relevant cash","page_number":56,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"a54bd08d-9c49-4e49-983c-d6028f08558a","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":56,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"59e492b2-170a-4d55-8b70-49d35aaa5693","block_type":"box","text":"it pays to the buyer, resulting in a loss of value to the Fund. A Fund that sells credit default swaps incurs leveraged","page_number":56,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"c8c0b99f-e947-4210-97e7-6e385fdcca08","block_type":"box","text":"exposure to the credit of one or more reference entities and is subject to many of the same risks it would incur if it","page_number":56,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"64d94478-bd69-4a7a-881d-0305773fc0f0","block_type":"box","text":"were holding debt securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":56,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"bda2ac92-a330-4b5a-afc3-95db9ded7a16","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt obligations. In","page_number":56,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"856a2b57-0694-4e40-bdb5-b36f8ed85b8d","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":56,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"24dd7e71-5c61-43ba-8c11-3b5670c3f388","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":56,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"d00192ef-b0dc-40e0-baa5-e605ec60adab","block_type":"box","text":"which of the reference entity’s debt obligations to deliver to the Fund following a credit event and will likely choose","page_number":56,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"d0bfa52e-57a2-4714-8f53-e1d66cdc7e36","block_type":"box","text":"the obligations with the lowest market value in order to maximize the payment obligations of the Fund. In addition,","page_number":56,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"6f7e2e5c-0397-41f3-a0db-3385c8da6676","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":56,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"dcc73345-44d6-4950-b086-5ac9408f73c3","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":56,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"908e1ef6-e5fa-4393-9268-e1026684fa18","block_type":"box","text":"conditions.","page_number":56,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"9ff9ba5a-1db2-4200-835d-e6dd54575f15","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":56,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"0e7d2eea-88f3-481e-837c-96e01a6e32fb","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":56,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"9391d8d8-009c-4064-9340-2dc061ea66b9","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":56,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"48498673-cc2e-4079-a972-f3e5d67a77c1","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":56,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"3c683d2b-2f27-479c-b137-65e47c7a5943","block_type":"box","text":"clear some, but not all, of the other credit default swaps not subject to mandatory clearing. The Funds face","page_number":56,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"da38ecc7-0cc1-4888-9f22-e1f2d1e9781c","block_type":"box","text":"II-18","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1daea4a5-b79c-41e6-b624-87c35d0308ff","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":56,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d108654c-1d29-437b-80dc-131d51ed83fc","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":57,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"73df9c5b-33cd-4813-9402-b0a189052c10","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":57,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"b33aa8c8-ac47-476c-8d36-215752577ea8","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":57,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"2527b696-6b98-4ba9-855b-dbc65217e58e","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":57,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"4d637cc3-b4df-4a02-9e01-a6c2cb19b6f7","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":57,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"5bf1ebe4-d88b-403c-b8cd-5e5de48ae9f4","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":57,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"99ffed89-6a3c-4ae8-a6ac-5737a7c4ab61","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":57,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"94150c0c-f53e-47b5-8d55-0982ef829cba","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":57,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"687b1b93-10ce-45b0-9e85-8a81a70484b2","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":57,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"6b955697-c215-4dd4-82a1-c3290eda5fff","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":57,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"9d6dd7ee-c834-49e5-b97b-d1a711be865b","block_type":"box","text":"underlying security or loan to or by the Fund rather than by way of cash settlement, and there may be a wider range of","page_number":57,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"c7461c2d-a825-43c8-bbc3-821285c95688","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":57,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"1909faaf-4d63-47c7-8e94-69ee6165fc54","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":57,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"f1401e9c-fd94-49b3-a543-778db3c03078","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":57,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"e33ffe95-897d-4d44-906e-55dbd1a40437","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"0f703b0f-30f5-42e6-8aa4-d044642aeb9a","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":57,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"b62b788c-e414-4b76-b6e4-e17145e20bd2","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":57,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"c637998f-6da8-44e4-b79d-e02be333acf7","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":57,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"e2372220-67d6-4f98-abcc-75fe2c3650ec","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":57,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"5efe652b-3320-4ba2-9d38-ae2c882f885c","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":57,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"a1519318-8b30-4a67-99cd-9f3ab30ff413","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":57,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"5234025a-f29f-4e9b-90e2-d697d1df9156","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":57,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"851f881d-a02c-4d05-b220-f7c272f6eb10","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":57,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"c2f613de-7ffd-4a6c-8a52-61d8b1f39dfc","block_type":"box","text":"interest rate swaps are permitted, although not required, to be cleared. Most of the interest rate swaps entered into","page_number":57,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"5d0454d2-defd-44b0-8d8b-df4514c9c0ee","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":57,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"7794aaf1-6734-4d1e-858a-2d6c36c90622","block_type":"box","text":"cleared interest rate swaps.","page_number":57,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"949c14cb-faf0-401b-a950-31276519f9f1","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":57,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"cbfc6381-9eb5-405d-8f37-d07e66815cc7","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":57,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"c51d4b3e-ca19-49ad-a79b-175d281b7d85","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":57,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"d88867f2-77ef-4b27-b683-a774e192b307","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":57,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"f0fddaad-7663-4131-b8c9-b09ac2bf816e","block_type":"box","text":"Fund will have contractual remedies with respect to the transaction but there can be no guarantee that the Fund will","page_number":57,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"de760bcb-5d5d-44c1-966c-94914ffb7252","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":57,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"29ac9a41-0227-4297-8bd4-26c8fb3f22b5","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":57,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"864d9357-0713-437d-8f81-2b16e81a5ad3","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":57,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"f36f987a-0384-4cdd-bfca-8fa7c3afaa63","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":57,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"cb4c452f-3c44-4768-bb5d-4d7e037fd93d","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":57,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"24a42abe-aefa-4f2a-8afb-ae98d3bfd11d","block_type":"box","text":"or variable interest rate, index or asset.","page_number":57,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"ae58095b-02bd-4e11-b0e2-633348c48bb8","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a","page_number":57,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"33e54f2a-230e-47be-bc17-b3aa90bf3d75","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":57,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"afc15636-ad55-420e-b9f7-be29936112b5","block_type":"box","text":"such interest rate floor.","page_number":57,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"a3a9b875-2869-4397-95b8-d40d5ec5b46c","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises above a","page_number":57,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"71488d85-cf5c-4e8d-9e7f-21903479541d","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":57,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"9c889e62-7645-454a-b78e-9f52551b8129","block_type":"box","text":"such interest rate cap.","page_number":57,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"0f236446-fcf4-467a-bcc6-8c93e0b4d5c1","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":57,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"55fa2863-a3ef-4192-84b6-da972477e762","block_type":"box","text":"commitments to pay or receive interest,","page_number":57,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"3d59e718-68da-4a05-a210-30cd0fde73a2","block_type":"box","text":"e.g.","page_number":57,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"3c8e681d-57e4-4955-adc2-43e4ec46a864","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":57,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"6c9298c7-c07f-448e-a90a-4e13db02d1b6","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":57,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"c2dd1100-a08c-4054-bc06-20470d1eb8a4","block_type":"box","text":"swap the right to receive interest at this fixed rate for the right to receive interest at a rate that is reset every week.","page_number":57,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"746bc656-d960-4b09-8288-0c78f7614d0c","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":57,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"66a8fafe-ed37-4be2-9d56-107fac84de4e","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":57,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"122616f1-0bb8-47c9-8d1f-4dc9f7459471","block_type":"box","text":"security with an interest rate that is reset every week and it would like to lock in what it believes to be a high interest","page_number":57,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"30a13c72-267e-462b-945d-3e7960911f13","block_type":"box","text":"rate for one year, it may swap the right to receive interest at this variable weekly rate for the right to receive interest","page_number":57,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"01e71085-49ae-4f8d-bc76-f0097b6154f3","block_type":"box","text":"at a rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to falling interest","page_number":57,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"4b313a1f-1d7d-42d9-a7d4-16b3a3cd4b18","block_type":"box","text":"rates and may permit the Fund to enhance its income through the positive differential between one week and one","page_number":57,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"743bad74-c266-473d-aadb-e72b58bdb753","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":57,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"73606e60-6b56-4f68-ac0b-24024b303e81","block_type":"box","text":"II-19","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5369ad8b-5ee4-47e1-8eba-ecf1370881f2","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":57,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"4507d17d-c825-40d3-ae8b-dc1cf59b7a30","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":58,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"10f88788-4208-4906-b21e-d6a6d0857622","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":58,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"3025847a-fa3e-485d-8c10-1ed71a12ef97","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":58,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"2d2da6d6-39cf-481c-9f87-1de2c19e7485","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":58,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"732bba45-4409-422d-a7b1-48713ce20437","block_type":"box","text":"Total Return Swaps.","page_number":58,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"b002ffd1-770a-4240-9bb2-0eac4e361d19","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":58,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"2c03b55f-8071-43e5-8463-2b1e835722c6","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":58,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"2f96c047-6d94-4035-8225-0d754b5fc87c","block_type":"box","text":"a fixed or variable interest rate or the total return from different underlying assets. The return of the assets","page_number":58,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"249923fb-5bef-4008-a64a-37e78fb42b71","block_type":"box","text":"underlying the contract includes both the income generated by the asset and the change in market value of the","page_number":58,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"aeb516ba-9afd-4183-b384-b81076237edc","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":58,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"d1a58033-e02c-44a4-a301-c96529dfcf8f","block_type":"box","text":"Total return swaps on a specified security, basket of securities or securities indices may sometimes be referred to as","page_number":58,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"0fa00e60-7030-40f0-af5f-daf430600c59","block_type":"box","text":"“contracts for difference.”","page_number":58,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"4cd4ea7b-d4c0-49a5-b92a-7f1894f89ee8","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking physical","page_number":58,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"e7a805f0-2866-4455-830f-d78c5e0047da","block_type":"box","text":"custody of such security or investing directly in such market. Upon entering into a total return swap, a Fund is","page_number":58,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"1f11f9d4-fdc6-4e65-9c64-a7b2b2f97f9a","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":58,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"6059faa1-d4f5-4528-ada3-9c08a6e99f6f","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":58,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"b281f06d-de4a-41ef-8c00-d90e61ffead8","block_type":"box","text":"the notional amount of the swap.","page_number":58,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"4934af2e-db4c-4935-8307-a3226f623da5","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":58,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"204876d9-7d06-4f8f-8d1c-885aac2ef459","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":58,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"f292fba3-cc69-4eea-9857-20e59c04e585","block_type":"box","text":"Options.","page_number":58,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"73111ad4-56f1-4785-8336-fd48aa57cb51","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":58,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"9a3d33e8-1032-49d4-ac0c-ee5bdfd89ab2","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":58,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"f35c2b65-b41d-4128-87fb-b3aa938b6e9e","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":58,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"30117077-9f18-49c7-bf70-ea18974bafea","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":58,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"28a8e37f-4cdb-4e3c-aa39-5729a2914ab5","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":58,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"cb979c86-2bdc-4a71-ba44-7debfcb5d4dd","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":58,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"f02e7092-0ec0-470e-ac40-d36f9c8832a5","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":58,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"988bc7b3-c2bb-4af1-8e3c-9dd200a4802a","block_type":"box","text":"OTC options have more flexible terms negotiated between the buyer and the seller, but are subject to greater credit","page_number":58,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"86d30c85-ed62-46f6-b7d7-d2bce48ee25e","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":58,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"339495a2-036c-45a5-9e04-962fabdd4d49","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":58,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"916de271-99c2-46c4-a5f9-c58a6718a6ac","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":58,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"b24c9bcb-25c9-4337-898c-6786b908057d","block_type":"box","text":"exotic options that can only be exercised (or automatically expire) if the price of the underlying asset reaches one or","page_number":58,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"11fc7990-40f9-4a01-861c-3c72eb9ab8f5","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":58,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"416b9375-a556-4c39-81b9-1d8f4d757a4c","block_type":"box","text":"a fixed all-or-nothing payout if one or more predetermined conditions are met. Exotic options are typically traded in","page_number":58,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"e9aed520-7b2d-4da0-9be6-fb489a1a8f7e","block_type":"box","text":"OTC markets.","page_number":58,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"ac4feeeb-6e8e-434d-92fb-06205395cddf","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":58,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"6ce34fb4-418f-4a80-b32e-f1741eb93c5d","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":58,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"8d2323f3-575f-4bfc-a8a7-c2deb68f5798","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":58,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"89dd4c54-d102-4e97-a09b-456170e3cba8","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":58,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"566cb9b8-0241-4504-81b2-bfd989e91b56","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":58,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"6f995848-81df-47de-b4f2-b35ba92da877","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":58,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"84dc21cb-16d9-4749-885a-c4c3bc64c123","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":58,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"c7101993-29c8-4086-9dc9-de199f5d348a","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":58,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"5458be56-14e8-487b-a807-489d0bf8ad6b","block_type":"box","text":"Options Clearing Corporation may not at all times be adequate to handle current trading volume; or one or more","page_number":58,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"2914d03f-0c8e-4940-95b7-c03233873c79","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":58,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"b2adb065-f90d-4348-bff8-17c808ab6f8a","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":58,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"680e38ce-3d0e-45b2-bc23-7018affa8397","block_type":"box","text":"class or series of options) would cease to exist, although outstanding options that had been issued by the Options","page_number":58,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"286c7002-181f-4db2-8871-b7850a69f479","block_type":"box","text":"Clearing Corporation as a result of trades on that Exchange would continue to be exercisable in accordance with their","page_number":58,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"c7ec97b6-efd6-4f0f-a2e5-8156d98cd23e","block_type":"box","text":"terms.","page_number":58,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"08adfee5-914b-446e-a8c8-a7b9d5e58007","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":58,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"2ae98e33-efd1-4a2b-8c8f-561226151653","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":58,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"22c53145-443e-4827-ad4f-524b305d7c75","block_type":"box","text":"(regardless of whether such options are written on the same or different exchanges or are held or written on one or","page_number":58,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"570b901e-dc5c-4eb1-91b9-0692a93bd69f","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":58,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"873f80ac-92d4-4467-aefe-1ec23382b61d","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":58,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"7c69a565-4755-4134-831d-c97d849bbfb8","block_type":"box","text":"II-20","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8eb381ab-88d5-4502-b430-cb84e3253289","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":58,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"be935a3a-5e23-47ee-a7b3-7495e448ac99","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":59,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"aea5fb6a-e7a2-4d36-985f-a83969555598","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":59,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"90a4ce68-40c1-40d7-a52c-b121b8378976","block_type":"box","text":"Call Options.","page_number":59,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"15195034-818d-4e4e-9c21-eaf97fe5361d","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in which it may","page_number":59,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"bd3d9d03-478a-4de4-96a6-d623fdd80e77","block_type":"box","text":"invest. A purchased call option gives a Fund the right to buy, and obligates the seller to sell, the underlying security at","page_number":59,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"5fcf2b2d-18d0-4dde-8349-9f4f6eab06b7","block_type":"box","text":"the exercise price at any time during the option period. A Fund also may purchase and sell call options on indices.","page_number":59,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"1101cd35-24e3-41d6-b814-48344ce6726f","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":59,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"4518a9bb-c28f-4365-8f29-e3a0c8dce959","block_type":"box","text":"underlying the option at a specified price upon exercise, an index option gives the holder the right to receive cash","page_number":59,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"2fddb9b3-176d-424b-a613-231c4aabcd10","block_type":"box","text":"upon exercise of the option if the level of the index upon which the option is based is greater than the exercise price","page_number":59,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"5e9380b6-c6c7-4c04-80e5-f7304d2192ba","block_type":"box","text":"of the option.","page_number":59,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"51aa9138-05bc-4045-9798-b596fa1c5156","block_type":"box","text":"A written call option is covered if a Fund holds a call on the same security or index as the call written where the","page_number":59,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"56d78bfb-047d-488d-a6a7-a10b662f20e6","block_type":"box","text":"exercise price of the call held is (i) equal to or less than the exercise price of the call written, or (ii) greater than the","page_number":59,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"96179bc7-2a23-471d-aa9f-33ea6d68b1fc","block_type":"box","text":"exercise price of the call written provided the difference is maintained by the Fund in assets which are not considered","page_number":59,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"a13d797e-a919-45a1-ba73-0ccb615c5ff9","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":59,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"088abf43-d3df-4dde-b011-25d17a0f6958","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":59,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"de79ba73-98db-4acc-9ba0-145ebfb4a039","block_type":"box","text":"A Fund may write (","page_number":59,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"35c0aaf2-8a61-47b1-803a-e4412fdc0dc2","block_type":"box","text":"i.e.","page_number":59,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"9de4b57a-ff2b-4b25-93ac-c8ad70ba46d7","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":59,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"11cded6b-c368-40d9-b189-572dfa8bdba4","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":59,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"c3b5cc10-2242-44ff-9c46-bf719d99c3c8","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":59,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"f3adb5be-11c0-4deb-95d4-82ce73a6e768","block_type":"box","text":"specified future date and price set at the time of the contract. The principal reason for writing call options is the","page_number":59,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"2777ca8a-4ea9-4263-a4bc-17ac5ac118e5","block_type":"box","text":"attempt to realize, through the receipt of premiums, a greater return than would be realized on the securities alone.","page_number":59,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"10cf7ea7-350f-48f8-8dfa-6f554ba37d89","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":59,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"da3a0f9f-9e82-4c7a-a5c3-4f2dba3a135a","block_type":"box","text":"increase in the underlying security above the option exercise price. In addition, a Fund’s ability to sell the underlying","page_number":59,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"150c3a8e-0ea0-443b-9920-a74ae46c33bf","block_type":"box","text":"security will be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":59,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"16d77e30-d2e7-4394-b02f-ea7909bd8927","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an offsetting","page_number":59,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"6ec55c72-f2a0-457b-8caa-89bfa9aa8364","block_type":"box","text":"purchase of an identical option prior to the expiration of the option it has written. Covered call options also serve as","page_number":59,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"9b0d51e6-5a0e-4052-a839-44bf4ffaad53","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":59,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"c1c8955b-056c-4310-84fc-5bc0db55a6fe","block_type":"box","text":"A Fund may write","page_number":59,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"5cda7f08-4936-4c24-b2d0-4c2320510e3b","block_type":"box","text":"(i.e.","page_number":59,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"0879603d-aee3-4ef9-b014-7a85153da08a","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":59,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"ad10819f-358b-4f4b-883a-cc4becac1b89","block_type":"box","text":"are not currently held by the Fund. The principal reason for writing uncovered call options is to realize income without","page_number":59,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"3737d586-fe7e-47db-b35e-eb912766c550","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":59,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"3a425170-c91a-4d1c-a0af-1638a28db0dc","block_type":"box","text":"a Fund must deposit and maintain sufficient margin with the broker-dealer through which it made the uncovered call","page_number":59,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"0e8e5855-6e2a-47c3-bca6-0804b034a423","block_type":"box","text":"option as collateral to ensure that the securities can be purchased for delivery if and when the option is exercised.","page_number":59,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"b84fd1a1-6c91-42d6-90aa-8b88f8c9fc7d","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":59,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"d21ed2f0-93ab-42dc-9195-80b2670aaa25","block_type":"box","text":"strategy to increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls because","page_number":59,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"ceed7c5f-9b19-4b0d-97e2-1f27befeb158","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":59,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"d9b30ddc-76d6-4ce7-8488-3d6e8561743a","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":59,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"ff30a86a-3848-4fdf-8c08-8831d01e0683","block_type":"box","text":"the underlying security to meet its call obligation. There is also a risk, especially with preferred and debt securities","page_number":59,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"cfecd92f-09bf-4aa6-a0b1-2136b64c7208","block_type":"box","text":"that lack sufficient liquidity, that the securities may not be available for purchase. If the purchase price exceeds the","page_number":59,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"537b36a0-60ce-4ef9-aa70-403e761a1e18","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":59,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"197621ab-aa62-402c-9f32-c97737b79791","block_type":"box","text":"Put Options.","page_number":59,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"bb1c0809-f822-4107-9752-bf88aab2893f","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its securities or","page_number":59,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"4b962a2f-e553-4bd5-8231-d2df3e0158f7","block_type":"box","text":"to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying securities or instruments","page_number":59,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"7aa99849-c07d-49dd-b911-b75b0e8a2e42","block_type":"box","text":"at the exercise price, thus limiting the Fund’s risk of loss through a decline in the market value of the securities or","page_number":59,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"8fb93172-e8a7-451b-8f60-8636b6bfd49e","block_type":"box","text":"instruments until the put option expires. The amount of any appreciation in the value of the underlying securities or","page_number":59,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"737adfde-020b-4708-a1fd-6a4b7fcd7369","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":59,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"e6b9508d-ad82-4c8f-8117-78d045e1b4d1","block_type":"box","text":"costs. Prior to its expiration, a put option may be sold in a closing sale transaction and profit or loss from the sale","page_number":59,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"c5c5ad96-582c-472e-9b0a-f1a087774e79","block_type":"box","text":"will depend on whether the amount received is more or less than the premium paid for the put option plus the related","page_number":59,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"bd9e715a-46d2-4fb4-925c-762e8a6cf826","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an option by means of","page_number":59,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"c3c257fe-11c7-4073-93fb-e38ef73d5f59","block_type":"box","text":"an offsetting sale of an identical option prior to the expiration of the option it has purchased. A Fund also may","page_number":59,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"4edcb8b3-8aaf-4bfc-a90f-a80419978bd2","block_type":"box","text":"purchase uncovered put options.","page_number":59,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"f437047c-f817-4214-8822-38baf699fe43","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"941503ce-0db3-4e83-87e2-21919238aa68","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"e54e3dbf-8a82-4272-b744-acd68ede45e1","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":59,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"8a1772a8-674c-4644-b2a6-e90e545807c7","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":59,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"37663e99-5b74-49de-82ed-709ac689172d","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"eeee9def-17cf-4f1c-bb2f-206d6e035b42","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"2d5a3e8e-f735-4e3c-9cba-b8b87267aace","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":59,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"967b764e-0f49-41bb-a3ba-462884d2f0de","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":59,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"9350c9c6-eec7-4020-85c4-8e01803b9d09","block_type":"box","text":"collateral cash equal to the exercise value of the put option with the broker-dealer through which it made the","page_number":59,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"d7db332d-31af-4157-bb18-0355a226078b","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":59,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"edb952fa-bd07-4c97-971e-a5a73dae6b12","block_type":"box","text":"acquire such securities or instruments at a net cost below the current market value. A Fund has the obligation to buy","page_number":59,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"ff943b92-0e2a-455a-af73-2b3ae3255949","block_type":"box","text":"II-21","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a38fdd46-ef8a-40f1-9ae0-e13bf4b8bc77","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":59,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f857a527-0453-454a-9f38-93af0ca6d0eb","block_type":"box","text":"the securities or instruments at an agreed upon price if the price of the securities or instruments decreases below","page_number":60,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"5ea50637-0097-4291-96fd-f8d3c62f85a8","block_type":"box","text":"the exercise price. If the price of the securities or instruments increases during the option period, the option will","page_number":60,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"69937334-c430-413d-9306-10880d8cefa8","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":60,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"5e0e4686-83be-49bd-a139-c55817fd24c0","block_type":"box","text":"the exercise price.","page_number":60,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"73e8e03f-af1c-4f4a-bd47-8a54f813ddea","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":60,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"7d23ed87-7631-44a1-82eb-b58d38028c9a","block_type":"box","text":"The following information relates","page_number":60,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"0d6e2cff-96bc-49cc-8c34-f295be9a21e0","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":60,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"ec7f730d-ed89-43d4-9d88-8f03f7b596bf","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":60,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"274fca4c-4f9a-4413-be49-3e7e7c3bdd6a","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":60,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"c6af0a9a-3bbe-4e9f-b4db-fade447557f2","block_type":"box","text":"it holds no longer have a sufficient remaining principal balance for this purpose. Should this occur, a Fund will","page_number":60,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"96b6f0ec-f99d-4191-9541-6884ac22dad4","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":60,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"99b8e8c7-23a1-4834-b320-62b4b854ff4c","block_type":"box","text":"market in order to maintain its “cover.”","page_number":60,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"daf22826-a256-440a-93af-8b19f3ada9ee","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":60,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"cfb80dbb-0e46-4550-8ed3-a5a7870c4f3c","block_type":"box","text":"to represent cover for the option in the event of a decline in the GNMA coupon rate at which new pools are originated","page_number":60,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"aa176c0c-79e7-4b2f-9b3f-a7253f40078b","block_type":"box","text":"under the FHA/VA loan ceiling in effect at any given time. If this should occur, a Fund will no longer be covered, and","page_number":60,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"48bfb4b0-e15b-4b2c-b589-76c13b35c64c","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":60,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"242525f4-22cd-496c-a887-b1cc8366e038","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":60,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"301af73e-20ad-4292-9f37-830ef17b1c4e","block_type":"box","text":"and incur transaction costs.","page_number":60,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"fd89d9cb-6c80-4130-a936-591e74dac68b","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":60,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"c340e21e-f4a8-49b8-8681-84b606a68832","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":60,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"809e07fd-1ae6-4b2a-a219-03720a6f7f7f","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":60,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"de0268fc-d8b0-442d-9c7b-5f70da60a0b1","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":60,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"b183cbe8-fa65-432b-bde4-d0bce557592b","block_type":"box","text":"i.e.","page_number":60,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"97b4a60c-e1b4-4575-babb-5b72e29b8a43","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":60,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"860a8a4c-6194-4688-b09c-fcc28d62a266","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":60,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"33818ecd-50d0-45da-8823-2c37f8c38ae9","block_type":"box","text":"it writes a swaption than it will incur when it purchases a swaption. When a Fund purchases a swaption, it risks","page_number":60,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"2021eb9d-9dcd-4dd0-8d33-b5ce5ebc4f74","block_type":"box","text":"losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However,","page_number":60,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"bec12a2a-0d4a-4346-abf6-477581d65d85","block_type":"box","text":"when a Fund writes a swaption, upon exercise of the option the Fund will become obligated according to the terms of","page_number":60,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"1cd32dc2-ddcc-4e01-a7e6-be6842e1622a","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":60,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"58d7cfed-99c7-4755-b81d-51a07c36384e","block_type":"box","text":"required, to be cleared.","page_number":60,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"4c768bda-cb31-4117-8d4e-c6bc5c8c143e","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":60,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"0e1f2245-fb7e-4b8e-87d4-f1e6c7e704b3","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":60,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"a867ff10-c59f-482b-a449-f398668b70fc","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":60,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"ea20ef09-f883-49c2-b7a7-c5ca5b315325","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":60,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"39b8dcf1-06df-41ee-b7c4-cf505d42f8bd","block_type":"box","text":"Derivatives” above.","page_number":60,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"3b1e4842-433b-4ca9-8085-2a9325ff3233","block_type":"box","text":"FLEX Options.","page_number":60,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"40eb4954-e98f-4107-bc0c-0fdd77651b5e","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":60,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"2a3b32ab-42b8-4424-a832-4ed68f28b919","block_type":"box","text":"are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX Options are listed on a U.S. national","page_number":60,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"31876f49-d183-4254-8d01-29ae5a29e811","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":60,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"46c09e28-74b2-4e0e-8be7-df2d0bf983de","block_type":"box","text":"exercise prices, exercise styles (","page_number":60,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"55e25b57-caa4-450e-9d28-f58e544e9e18","block_type":"box","text":"i.e.","page_number":60,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"0ec8bc49-b950-45f4-86f8-8594cc15d1dd","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":60,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"29dc95de-7cea-4bbb-a037-03745b459d61","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":60,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"e97dbc41-7154-4b8d-9d46-cc199b132b44","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":60,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"70d5cb30-5a29-45ed-9ca4-44860880b4ff","block_type":"box","text":"option contract entitles the holder thereof to purchase (for the call options) or sell (for the put options) shares of the","page_number":60,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"615f80ad-877c-46e9-9a71-50c3ecae2878","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":60,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"aaa0b2fa-6a40-4baf-9d9c-73822a60442d","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":60,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"0ed7c0fe-7a09-4a75-b300-4226f09811f5","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":60,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"7e54ddbd-ca40-483d-8e0f-3722623ea038","block_type":"box","text":"FLEX Option’s expiration date.","page_number":60,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"05051a68-35bf-404d-9e56-fbfc3d40e72d","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":60,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"46782f60-a65b-458b-a8bf-d37a732d9f54","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":60,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"4aa1b8a6-b596-41c2-9efa-d0c885d6a779","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":60,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"597eb2be-3041-4031-b795-4fac1651d67b","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":60,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"fae2911d-0cd4-4ef8-ab2f-beee002ef296","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":60,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"8df61d32-8347-43f6-88f8-52e56b14462b","block_type":"box","text":"FLEX Options contracts.","page_number":60,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"26241ab9-ccdd-4a30-9660-1a3f20c72ab9","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":60,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"48403e79-89db-4e90-9335-196a10e4d25a","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":60,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"1840e224-c183-4f88-a198-9740ed387fe4","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":60,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"079aff8b-278d-461a-881b-0c5de6510efe","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":60,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"175c0987-af41-41c8-b7a5-483593027029","block_type":"box","text":"liquidation of the issuer of the underlying security. According to the OCC’s by-laws, the nature and extent of any such","page_number":60,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"d35c04f4-e5ec-4238-8bb8-d14b7c9c184b","block_type":"box","text":"adjustment is to be determined by the OCC’s Securities Committee, in light of the circumstances known to it at the","page_number":60,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"f3786537-8fb4-4429-bc30-1f1342999813","block_type":"box","text":"II-22","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cd9b83f0-8aaa-4498-87ac-961a59e52e1d","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":60,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"99d77de8-e232-4af3-b565-3a9efff3e1e8","block_type":"box","text":"time such determination is made, based on its judgment as to what is appropriate for the protection of investors and","page_number":61,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"2885e35a-7e97-477d-af9d-cf1b13f75a3a","block_type":"box","text":"the public interest, taking into account such factors as fairness to holders and writers (or purchasers and sellers) of","page_number":61,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"951f7fd9-ddb8-4adf-afc3-286a81b997a1","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":61,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"b65b77ab-ce40-4f0f-a7d3-567c22d425e2","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":61,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"87ac7b4e-1e95-4e12-aaaf-03171573a571","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":61,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"ef7eb1b2-dd74-44e2-b18e-ff165fd39eed","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":61,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"8dced320-26c6-4f86-be3b-a33e74d15edb","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":61,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"5e076f8d-5943-42a5-bb73-0d4046aced61","block_type":"box","text":"on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a “Reference Asset”). As","page_number":61,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"12f86578-80d4-4b57-b20b-030c6b84ffe1","block_type":"box","text":"such, the value of a Fund’s FLEX Options will fluctuate with changes in the value of the securities held by the","page_number":61,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"70611f41-d810-4233-8fc4-98d8d4ab7518","block_type":"box","text":"ETF, and thus the ETF’s share price. In addition to the value of the ETF, the value of an option, in general, will","page_number":61,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"3d80c0d6-3e1b-4c05-b13f-932c41442ca7","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":61,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"f8bd8ef9-037d-4452-ab31-3df0dcca02c3","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":61,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"26afa734-026b-4172-a17c-5b138414c457","block_type":"box","text":"expire unexercised have no value.","page_number":61,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"741158a2-f77d-49b8-81fb-a985e958fee7","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase (for a","page_number":61,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"e06b00e3-470e-4863-9e1c-e33bcfa972d3","block_type":"box","text":"call option) or sell (for a put option) the Reference Asset at a predetermined specified price (the “strike price”).","page_number":61,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"97bf76d5-7774-4638-ac90-418481e11db5","block_type":"box","text":"When a Fund writes a call on the Reference Asset, it receives a premium and agrees that the purchaser of the","page_number":61,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"cea12f2a-6c9f-4b94-b139-af89bab173a6","block_type":"box","text":"call, upon exercise of the call, will receive from the Fund the delivery of a specified number of shares of the ETF","page_number":61,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"b8024606-3d78-4023-a6bc-15d4947a9bc3","block_type":"box","text":"in exchange for the strike price. When a Fund buys a call on the Reference Asset, it pays a premium and has the","page_number":61,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"a3af9f35-be10-42c5-9bdf-4b13c128af25","block_type":"box","text":"same rights to such call as indicated above. When a Fund buys a put on the Reference Asset, it pays a premium","page_number":61,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"bcef67ac-566a-4ff4-92fe-8bae82aa9b0a","block_type":"box","text":"and has the right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":61,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"02136367-09b1-4d5f-9d62-2184fe4bb89f","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the Reference Asset,","page_number":61,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"a9f48f99-9860-4785-be49-9f6e72cfce4e","block_type":"box","text":"it receives a premium and the purchaser of the put has the right to require the Fund to deliver the specified","page_number":61,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"0458d60a-3864-4cab-ab17-84babcbcabd0","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":61,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"e3215210-84b8-46c7-8d4f-fb3eb0749cbe","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":61,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"8cc9fabf-2e68-4f58-802b-d96ce2562acc","block_type":"box","text":"FLEX Options that are cash-settled. Cash-settled options give the holder the right to receive an amount (or owe","page_number":61,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"a003900d-2549-48c7-836e-ba4b3c3ad52b","block_type":"box","text":"an amount) of cash upon the exercise of the option. Gain or loss depends on changes in the value of the ETF’s","page_number":61,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"dc2c672c-5977-43ef-9481-fcd407bdb57c","block_type":"box","text":"share price relative to the strike price for a given option contract. The amount of cash is equal to the difference","page_number":61,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"2c54069f-60f1-44d4-9562-3dd237239f3e","block_type":"box","text":"between the closing price of the ETF’s share price and the exercise price of the option contract times a specified","page_number":61,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"9c9364b2-ca68-445d-a4e1-a095db4abcc7","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":61,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"7b7a9020-c010-45ba-9a1d-2d4e41158db1","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":61,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"20874b60-24c0-43e5-9d90-8cd107d15260","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":61,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"13a3b35f-c6f0-40b2-b25e-31fe0a5da102","block_type":"box","text":"closing value for that day is available, it runs the risk that the level of the Reference Asset may subsequently","page_number":61,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"4e59065f-4c86-4f8a-82aa-1bcd418e0d41","block_type":"box","text":"change. If such a change causes the exercised option to fall out of the money, the applicable Fund will be","page_number":61,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"bb297f1c-da18-44bc-801d-c547b7fec4ca","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":61,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"f8b86a97-9a4b-42e0-a8b8-200ac9c1e796","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":61,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"2a81e120-5b3c-4e14-9865-09dacd32db1f","block_type":"box","text":"Foreign Exchange Transactions.","page_number":61,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"4c1bd609-be1f-4ea4-91b8-103ae646079f","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":61,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"17793bc1-8568-47b8-bc81-3152d250d12d","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":61,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"ecb7651e-a9cd-48a0-934a-29669e84150e","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":61,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"50000e6f-0dc0-41f9-b7ba-132669e71a7f","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":61,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"a1392391-b74c-417b-a9f1-710e8021af97","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":61,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"e5331569-39ef-447a-a98e-ff066ebae6b4","block_type":"box","text":"Fund, sold by a Fund but not yet delivered, or committed or anticipated to be purchased by a Fund. As an illustration,","page_number":61,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"db5c4a1e-4f88-430a-b878-b7bb3d3a42fd","block_type":"box","text":"a Fund may use such techniques to hedge the stated value in U.S. dollars of an investment in a yen-denominated","page_number":61,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"56df7196-15d9-4cb3-9ad8-3ebb7625c7a0","block_type":"box","text":"security. For example, the Fund may purchase a foreign currency put option enabling it to sell a specified amount of","page_number":61,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"7eeb3bf3-1202-43ac-a4bd-f1903d8ab25f","block_type":"box","text":"yen for dollars at a specified price by a future date. To the extent the hedge is successful, a loss in the value of the","page_number":61,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"daaa49be-7173-4b07-a4c7-a2616d381f91","block_type":"box","text":"yen relative to the dollar will tend to be offset by an increase in the value of the put option. To offset, in whole or in","page_number":61,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"1cdf9584-0f0d-4e11-8e4a-1a5aa95ffd13","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":61,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"87176420-ce16-4574-89fc-e362ae74b172","block_type":"box","text":"sell a specified amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":61,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"91f1e619-57e4-42d3-9082-3dc60a805d15","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":61,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"8b8b2191-f7b8-4aad-abc7-9e69d8f64a39","block_type":"box","text":"the relative value of the yen to the dollar. “Straddles” of the type that may be used by a Fund are considered hedging","page_number":61,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"438c4f7f-a91e-4ad9-8522-586d09dcbe53","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":61,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"35e37e1a-096c-4d70-8bd6-2b3125605329","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":61,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"849aeb0c-07e6-46a6-a268-4bd7d3466657","block_type":"box","text":"use of Currency Instruments to effect hedging strategies is intended to reduce the volatility of the NAV of the Fund’s","page_number":61,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"3879d935-8508-4a48-8699-1b89851a4605","block_type":"box","text":"shares; however, the use of such hedging strategies will not prevent the NAV of the Fund’s shares from fluctuating.","page_number":61,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"6bc02d96-b683-4f33-89c4-431133b024c5","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":61,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"62aa3220-1c4e-42b1-96b1-98e69d8fe897","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":61,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"51e6a31f-62b0-4ba8-946f-8e500ce938a4","block_type":"box","text":"II-23","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e751b941-a84e-4c4a-b659-a66001f44c42","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":61,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"3791100d-4296-44fd-9512-62c07fd99fc6","block_type":"box","text":"accurately predicted and that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges","page_number":62,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"dd9f62c9-bfa4-4c80-a3f4-2a872f68827c","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":62,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"ab5f5d3f-ae6c-4ba0-a77e-747dcdef6d40","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":62,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"09613dc0-cc43-4706-b546-5be9c4cbc1b6","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":62,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"20197083-3f65-4029-9722-53b36496d608","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":62,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"3abbb827-9fb1-48f7-bb58-e0f8036d1737","block_type":"box","text":"domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified amount of a","page_number":62,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"3c18b157-d86a-435b-b0f3-ae311dddf439","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":62,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"44f7ae58-6601-44ff-b0ba-f8fa4c750a41","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":62,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"9cd76e7c-cc00-4f8f-8010-624ffff97baf","block_type":"box","text":"or dealers have refused to quote prices for such forward contracts or have quoted prices with an unusually wide","page_number":62,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"3a90ca25-235f-48e4-974d-6de8c7f7041e","block_type":"box","text":"spread between the price at which the bank or dealer is prepared to buy and that at which it is prepared to sell.","page_number":62,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"91a6dc4e-ee5f-488b-bdeb-49522b4971d0","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":62,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"07eb55f9-4cc6-4d8d-bf57-ea1fca7a1f68","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":62,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"a648c36b-feb3-4b45-8c8c-28c66b9f2c58","block_type":"box","text":"would deprive the Fund of any profit potential or force the Fund to cover its commitments for resale, if any, at the","page_number":62,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"03d75d50-d51b-4ecb-a892-2df99dc8ece6","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":62,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"b56eced3-7156-4dfc-907b-5654b2d68d21","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":62,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"b9f7bdde-7778-4176-a720-f231b482c00f","block_type":"box","text":"anticipated, in the event that (i) the currency exchange rate movement is so generally anticipated that the Fund is not","page_number":62,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"fb5c1c81-c87b-45c4-bd22-ee79d793807d","block_type":"box","text":"able to enter into a hedging transaction at an effective price, or (ii) the currency exchange rate movement relates to a","page_number":62,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"6972bbd1-a9f2-4049-8098-4e7683110d48","block_type":"box","text":"market with respect to which Currency Instruments are not available and it is not possible to engage in effective","page_number":62,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"e3bd6ccb-d26d-42e4-8a9e-0cfa1cf2e8b0","block_type":"box","text":"foreign currency hedging. The cost to a Fund of engaging in foreign currency transactions varies with such factors as","page_number":62,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"0237b0f2-f45c-450d-82d8-59198646a917","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":62,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"a84e7ece-ca60-4ecc-bc9f-1fa6543045ba","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":62,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"86d8ca47-79ec-4ec9-bdce-768e58fbd69d","block_type":"box","text":"involved.","page_number":62,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"e4c248e0-0dc0-4b43-9898-403ec369e7aa","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns (including","page_number":62,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"ed263631-5500-4c7a-982a-d46ccf22ac5e","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":62,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"8c533eec-31f1-4bdc-90bb-16d056b1f8e3","block_type":"box","text":"denominated in such currency.","page_number":62,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"e391c510-189c-465c-bcaa-9e5d2af30e61","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":62,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"3facc2ed-25c4-4d74-891f-1df8232b06c8","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":62,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"aa14a6df-a3b6-4c75-b2f8-c8ace6d5502b","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":62,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"2e8122ae-870a-4d73-b64a-6e10b1115daa","block_type":"box","text":"transactions are similar but are settled in the current, or “spot”, market. A Fund will enter into foreign exchange","page_number":62,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"9297ffca-a06d-4525-9e2a-ce60d45eb3e1","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":62,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"c4fc3fa2-6902-4ec1-b6e7-606a5a64ed7f","block_type":"box","text":"Funds, to seek to enhance returns. FX forwards involve substantial currency risk, credit risk and liquidity risk. A Fund","page_number":62,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"17787383-b740-4672-8ef4-2326d8541d93","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":62,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"e95f0cef-9f2a-4924-bf83-bbd06b739abf","block_type":"box","text":"purchasing a currency needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":62,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"fdfaa2dc-8d36-43d0-bf9d-f5f5a24c3f01","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":62,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"2c9f016b-634b-4890-b08c-2855624554b1","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":62,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"f1b0032d-760a-4c65-90fe-04cbabd02585","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":62,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"3e314f64-a06d-447f-8145-1abf79230efa","block_type":"box","text":"also hedge a currency by entering into a transaction in a Currency Instrument denominated in a currency other than","page_number":62,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"a71b2de2-47bd-415a-a031-ff4dc5e00c9e","block_type":"box","text":"the currency being hedged (a “cross-hedge”). A Fund will only enter into a cross-hedge if the Manager believes that","page_number":62,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"093e38ac-d5a8-44e1-99d0-ce149e086d71","block_type":"box","text":"(i) there is a demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":62,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"b8f9f4ee-df1e-4bf5-8290-c6e97b831389","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":62,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"f899f288-4c9f-4064-a3df-938db6634c5f","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":62,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"9fac36f5-4cd1-4648-b174-74595d8e6bf1","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":62,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"d23ad6e9-eaa5-4f87-983a-3b7e6c4c4cc9","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on the value","page_number":62,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"93845e99-ca3d-4f15-97b4-496cddfb77ed","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":62,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"c6610e6b-081e-4507-b58c-99d66569a77c","block_type":"box","text":"Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar. Proxy hedging entails entering into a forward","page_number":62,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"7fc37a97-ca75-4e03-bdb6-76164c593d17","block_type":"box","text":"contract to sell a currency whose changes in value are generally considered to be linked to a currency or currencies","page_number":62,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"00ae19ae-2efa-4ee0-9b1a-ed75f2180292","block_type":"box","text":"in which some or all of the Fund’s securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy","page_number":62,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"d378a765-ea0b-4363-8bea-f7035fcec2d2","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":62,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"72c677ac-0f9d-44c3-b449-c72fb832aebc","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a degree or in a","page_number":62,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"62ab3c7e-5b49-43a2-b94b-43f99b7c71f2","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":62,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"0ed4f554-7aa8-492a-ad0e-e4916c3715a6","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":62,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"e84d1163-e355-440f-9bc0-37793e95d3f2","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more currencies that","page_number":62,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"de5cb340-c8a0-4b68-ac18-c2aa8f453211","block_type":"box","text":"are expected to decline in value relative to other currencies to which the Fund has or in which the Fund expects to","page_number":62,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"6d593b5a-b888-4ce4-9fdd-354b0d46d955","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":62,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"9b868076-c5db-48f3-92d0-123e8c90951b","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":62,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"cfef8a15-3363-4da8-96b2-3e8c20afa344","block_type":"box","text":"Fund would sell Canadian dollars to reduce its exposure to that currency and buy Japanese yen. This strategy would","page_number":62,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"e6f06e11-609e-4e00-a3c1-d8286e34b298","block_type":"box","text":"II-24","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cd4e4f53-2d09-4287-a6f0-3e55328f62f9","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":62,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"1f86cc44-d748-4b6d-a3fc-2092e6d5c621","block_type":"box","text":"be a hedge against a decline in the value of Canadian dollars, although it would expose the Fund to declines in the","page_number":63,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"48405eff-9064-4d19-83cf-65b4745876ff","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":63,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"224e0033-f056-423f-a6ce-7b35116848a5","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as non-deliverable","page_number":63,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"e025d6d0-24ac-452f-8fd6-9872562eb6be","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":63,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"e34d7271-4d45-4fd9-8c20-42ceb8f6ea41","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":63,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"685ea04d-5243-4272-bafe-332e492324eb","block_type":"box","text":"the difference between the agreed upon exchange rate and the spot rate at the time of settlement, for an agreed","page_number":63,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"deffb67a-0d5d-4f96-aa6e-6ec6e8537056","block_type":"box","text":"upon notional amount of funds. All NDFs have a fixing date and a settlement date. The fixing date is the date at which","page_number":63,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"b8df27c5-7367-433f-a8ea-ba5f15908fc3","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":63,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"d485a182-db39-45c6-a7f2-ff832f316dcf","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":63,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"ac73b75e-2c4f-451b-8d2a-f1740ffce590","block_type":"box","text":"commonly quoted for time periods of one month up to two years, and are normally quoted and settled in U.S. dollars.","page_number":63,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"fdf2bbe0-4199-4625-8a96-50aabc5027ed","block_type":"box","text":"They are often used to gain exposure to and/or hedge exposure to foreign currencies that are not internationally","page_number":63,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"6158d85b-8eba-4577-88ce-7009c789ee6b","block_type":"box","text":"traded.","page_number":63,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"bf71e26d-a3b1-47a3-ac01-4644af579680","block_type":"box","text":"Currency Futures.","page_number":63,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"3883c594-3f1e-406a-aaa0-e2cb3f9bc40f","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":63,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"8ad44420-8131-4ca3-a36e-d2370d6a588e","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":63,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"be7d163f-5336-406b-b55d-d6084d13f770","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":63,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"5c5c3121-94a1-4862-b5f7-9acc5a955512","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":63,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"b30ecd2c-0926-4e86-8335-69e30652623e","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":63,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"ab797a34-f446-4578-ab1d-c08f4fa51b17","block_type":"box","text":"Currency Options.","page_number":63,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"9260baf0-1fda-4fd5-83db-783782dc6d2e","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":63,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"dc3d171c-82a5-4809-b57b-4a18aa00a2f0","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":63,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"c0a89188-64f9-419c-86ab-6ba3f13eb94a","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":63,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"0d5f833c-e954-4dfa-a208-03f0106085fc","block_type":"box","text":"securities. For example, in consideration for an option premium the writer of a currency option is obligated to sell (in","page_number":63,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"4c68cf51-cced-4db8-82f5-cd836e5c712e","block_type":"box","text":"the case of a call option) or purchase (in the case of a put option) a specified amount of a specified currency on or","page_number":63,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"ad806b63-875c-4e2e-bd9e-3389a5e44806","block_type":"box","text":"before the expiration date for a specified amount of another currency. A Fund may engage in transactions in options","page_number":63,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"5a2e21bc-113c-4fad-9ca2-b140fefb43d5","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":63,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"7b72ff8f-b3ad-4e91-8a9a-5a326b9f3a71","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":63,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"cfbdb5f2-1891-42e9-8013-f7c762f9ff95","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered call options","page_number":63,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"2c9e571e-fce8-4be7-a686-167ad1e1fbf0","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":63,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"320feee2-81bc-4151-b838-297e921b0dc7","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":63,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"608161b3-3fce-41e3-b2cf-457bad89929d","block_type":"box","text":"Currency Swaps.","page_number":63,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"86dc3a01-0417-42f4-be92-08b1e9fd4cda","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":63,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"bdc9b6ff-e048-44ed-bf93-8258da7c6ee7","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":63,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"2481906d-77b8-4653-93c3-ea23221ad913","block_type":"box","text":"second currency on a spot basis and sold for the second currency on a forward basis. Currency swaps involve the","page_number":63,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"733e599c-8d6c-420e-9302-1883204d888e","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":63,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"ce7f38dc-3d0e-47db-aee5-5a1429319850","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":63,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"d276f960-ad3f-4592-8c6d-cf4b45390f4b","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":63,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"5f68ad5b-1b36-4fbd-bff5-8501467bf318","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":63,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"72d224f5-b88c-4654-9d10-76d497e9ca07","block_type":"box","text":"Distressed Securities.","page_number":63,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"f7ad6fc2-8410-4831-a604-3df33276b2ac","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":63,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"a2161c11-01ab-4a69-89f1-3e37ae859293","block_type":"box","text":"are the subject of bankruptcy proceedings or otherwise in default or in risk of being in default as to the repayment of","page_number":63,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"2a49e91f-7a1f-4555-b27b-3d87eb90d498","block_type":"box","text":"principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one","page_number":63,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"59bb0929-ed15-4e9b-a6c4-8a879a950c35","block_type":"box","text":"or more nationally recognized statistical rating organizations (for example, Ca or lower by Moody’s and CC or lower by","page_number":63,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"e628aac2-ecae-4d0c-b7c7-50a9c5557e45","block_type":"box","text":"S&P or Fitch) or, if unrated, are in the judgment of the Manager of equivalent quality (“Distressed Securities”).","page_number":63,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"4bfa18fb-2da2-4574-aac7-4621eccbbf23","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":63,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"581f0d4e-2127-460f-8562-9e0a90c5e72a","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":63,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"cc68d578-c0ab-4e68-b47c-c2be4697c782","block_type":"box","text":"issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan of reorganization","page_number":63,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"f61f0234-b8b9-46d7-a554-2bc31bcc8fe5","block_type":"box","text":"pursuant to which the Fund will receive new securities in return for the Distressed Securities. However, there can be","page_number":63,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"e81d13e2-1067-4f17-a22b-3e7408c532e9","block_type":"box","text":"no assurance that such an exchange offer will be made or that such a plan of reorganization will be adopted. In","page_number":63,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"894a46dc-3ffb-4b1c-8629-2338f682e01c","block_type":"box","text":"addition, a significant period of time may pass between the time at which a Fund makes its investment in Distressed","page_number":63,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"0c2c52cf-91be-4a9a-ae30-7fbab259dda8","block_type":"box","text":"Securities and the time that any such exchange offer or plan of reorganization is completed. During this period, it is","page_number":63,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"035a4727-000a-4e70-893b-59f4fc6da410","block_type":"box","text":"unlikely that a Fund will receive any interest payments on the Distressed Securities, the Fund will be subject to","page_number":63,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"21ed88c0-09f2-4d41-bb9c-5b4800db251f","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":63,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"34b7f4f3-7935-456b-9147-a76ef545bb66","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":63,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"a00626bb-f817-40c5-9e12-3681f17a3d4a","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":63,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"925e779a-7d0f-4d6c-87b2-88c859f94566","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":63,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"05ad7656-59e3-4067-9e6b-6dea9d28f1af","block_type":"box","text":"when and in what manner and for what value the obligations evidenced by the distressed securities will eventually be","page_number":63,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"33296898-9104-4cb0-9ec1-05647533ffd7","block_type":"box","text":"satisfied (","page_number":63,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"7b8a1cce-0089-4081-acc6-e5f588926222","block_type":"box","text":"e.g.","page_number":63,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"00440735-6883-4fa6-922c-78dd571172a5","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":63,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"657183b4-0afa-4439-a206-c0f3eb77c273","block_type":"box","text":"distressed securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":63,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"dac802d8-f4d3-4b66-ae0d-b4e6dfa1e8a1","block_type":"box","text":"II-25","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"073393bc-ebb8-4438-9c7e-67f3cf8d5a7f","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":63,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"af902cd8-bf5f-4862-a8ba-086c52d9a44d","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there can be no","page_number":64,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"d0f4dd83-0fef-491a-bcbf-e38dfa5dcaeb","block_type":"box","text":"assurance that the securities or other assets received by a Fund in connection with such exchange offer or plan of","page_number":64,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"54870d1c-9a1b-42ee-baff-41062fa06665","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":64,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"9875ab32-0c4a-42de-b6cc-959d4a9d7bf5","block_type":"box","text":"was made or no value. Moreover, any securities received by a Fund upon completion of an exchange offer or plan of","page_number":64,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"c852585b-0266-4fc6-8cce-2f2e6adb60b0","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":64,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"ffbb0557-ef79-4480-881a-74731a65c4a7","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":64,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"9e4867f5-1cac-4d6c-9740-d067ce8f3697","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":64,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"01292e26-8428-408a-901d-3c493d9bea94","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":64,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"c115f790-9e0a-4683-9c80-68c184c48152","block_type":"box","text":"Fund, however, will not make investments for the purpose of exercising day-to-day management of any issuer’s","page_number":64,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"bae04e63-351c-497a-a2fd-2d9f200f8fb0","block_type":"box","text":"affairs.","page_number":64,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"e1a25b3b-6f13-41a2-9497-d7a2147be969","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":64,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"b77eab9a-e1a9-4612-b6eb-53871dc759af","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":64,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"dda96c81-3dc8-466b-8d5a-5e4eb4d78b2e","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":64,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"39ccc307-fccc-40bd-8274-4acd97b3374d","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":64,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"d490a396-9d9c-44c3-a375-3048f0bd25c9","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":64,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"cf73b757-2646-4757-b000-2c709eb55a07","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":64,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"b848d144-c1c4-423b-a438-be81c14f98b6","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":64,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"5a1ddb11-a1cf-498c-9333-b54f582a26a5","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":64,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"eee21bed-346e-4bdc-ba7f-ba9b2da1804a","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":64,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"e740e38b-b2cb-407c-b72b-c33e1223b382","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":64,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"5f896344-f50c-4a71-b361-4e40abfeba77","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":64,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"45e12c94-1a47-4191-9381-259e17cae5fa","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":64,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"62311406-ce27-4cfd-9327-557d9c4c26fc","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":64,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"80ab09af-58c6-4aec-b212-440da7812751","block_type":"box","text":"Equity Securities.","page_number":64,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"5e6a8415-a455-443d-9b3d-92f6afca1434","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":64,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"17de70d8-06be-4610-bf7c-069a6c8c15e0","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":64,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"87c07f3b-b020-438c-bf82-12977084263c","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":64,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"bdca9a9e-ae9b-44c7-8e9a-f8ff4943047b","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":64,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"7988a2de-c611-4f9e-8cee-9a3ac55e16aa","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":64,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"c79f909a-8e07-4a1a-8c5d-5218746d146b","block_type":"box","text":"and overall market and economic conditions. The value of equity securities purchased by the Fund could decline if the","page_number":64,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"d76d03fe-3dcb-4421-a7af-6b7069d291bd","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":64,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"0c8ea8f3-f30d-4f64-863f-48292b13cfcb","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":64,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"b02144a6-2328-488d-ae9a-1583c4872fe9","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":64,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"a7d731b8-fd56-4cbb-b572-c5136a6b526e","block_type":"box","text":"due to general market conditions that are not specifically related to a company or industry, such as real or perceived","page_number":64,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"2c3b5d3b-f401-4262-b051-234341a504f6","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":64,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"631dddb0-3a0c-4476-9f83-719fca78bfcf","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":64,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"d03a265b-5ba0-4a77-942d-a68b1cf68585","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":64,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"5b9cd56b-ab57-4df6-a53f-ae386e8f9296","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":64,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"817bd018-4fe6-4aa2-863e-c9c71ef6c717","block_type":"box","text":"no assurance that any Fund will have continued access to profitable IPOs and therefore investors should not rely on","page_number":64,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"767ca73f-9efe-474a-974c-ada95a54820c","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":64,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"2c0e259a-ba95-4254-99f0-5e738f0a9285","block_type":"box","text":"it is unable to invest significantly or at all in IPOs may be lower than during periods when it is able to do so. In","page_number":64,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"38effb27-4703-4f9f-946a-49ba0a6f99e4","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":64,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"32b3d304-960a-4a5c-9cfb-6120129232b7","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":64,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"750a9f80-c9b5-43c0-a08e-7d4293a813d5","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":64,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"b09f18eb-d94a-405c-be54-ea064a4e70cf","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":64,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"c449db76-41dc-404e-a3a1-29afedae92e0","block_type":"box","text":"initial public offering.","page_number":64,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"232f7c9b-b498-4357-b01e-3dc9cfb66e2f","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":64,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"386e1955-4054-444f-85cc-3b6dd4b311d6","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":64,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"76397bfa-2bf3-483b-a044-6f851b422c93","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":64,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"3962e1e7-3c9d-4ad2-bf63-714e86de0a49","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":64,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"035aa687-75e8-47d0-bfc3-9baf436c8ef4","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":64,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"7983cd7a-a3f3-4472-ae67-74ba707f0ec0","block_type":"box","text":"are often traded in the OTC markets and may have fewer market makers and wider price spreads. This may result in","page_number":64,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"fc22e286-566c-4d1a-837b-2c55940aa51f","block_type":"box","text":"greater price movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":64,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"2e4549f1-60da-4fae-a4a3-58bb8e67e050","block_type":"box","text":"more established companies.","page_number":64,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"62b4f5de-1445-4d68-a0d0-082229716ee4","block_type":"box","text":"II-26","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d5b16f69-00e1-43e1-9796-2ac3a08d3911","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":64,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"7638b525-51ec-4881-b88d-38f1c50d20ed","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks associated with","page_number":65,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"7b202c34-5a94-4006-bb60-6e0df86d4852","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":65,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"17d8d062-d376-4b95-bfb8-4c23149d8dbf","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":65,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"4422e9be-21f8-4d65-8629-5051cad02aa4","block_type":"box","text":"below.","page_number":65,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"26c90406-562d-4e07-9269-00338273e627","block_type":"box","text":"Real Estate-Related Securities.","page_number":65,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"7e723daf-7777-487b-9c37-62e6a9c3ea3f","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":65,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"9e9b4a76-659b-4dd3-ba2b-5b6c34f509ae","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":65,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"449b9a6e-2160-4bea-9eba-506f237de739","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":65,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"39236f38-89d9-4205-ae79-8464dbf3152c","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":65,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"8e12b6ae-f707-445d-ad60-044f4ae34b07","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":65,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"6f437574-53c2-41ef-a664-c7bfb5099989","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":65,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"9143c6ac-b9f0-4431-8ba9-b710bff9e153","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":65,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"4de2f421-8fb7-4c2c-af43-5964de79dd7e","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":65,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"20146f42-8976-499a-a468-ce394b5a3b0c","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":65,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"26f7ec43-d175-45ce-af99-0cf0184415f1","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":65,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"febbb7a1-0d85-4bfd-928d-42ea647d028d","block_type":"box","text":"rents; investment in developments that are not completed or that are subject to delays in completion; and changes in","page_number":65,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"43b17fb8-6072-4da0-899a-7dc518fb605c","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":65,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"9dfef3f0-a709-4fd2-b370-6ac81bee51a7","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":65,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"f95fd50e-0cd3-469e-ae44-57fc30aac830","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":65,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"e82937e1-adbe-4eab-a806-7fc3265d96d8","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":65,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"e71b762b-a9ee-4b28-8269-70e76be097e0","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":65,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"7f32a234-7481-4f78-8023-6db217b986c0","block_type":"box","text":"of a default on securities the Fund owns, the receipt of such income may adversely affect the Fund’s ability to retain","page_number":65,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"6bcb599f-4400-4d71-8246-97bc2c6b2648","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":65,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"ab412149-056c-46ba-80b6-525229ead5f4","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":65,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"f4d03143-b6b5-481c-be45-d5d4e9abbd89","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":65,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"4dc96bc2-df21-428b-9c0c-8f80ddf11386","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":65,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"03d78cc7-8700-4112-840d-7c2f23d7843f","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":65,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"b2417d8f-d21d-4f52-9492-db1d53fb4354","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":65,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"24c633d6-4468-4953-9ab0-fe16e8b6a960","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":65,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"f89f41b9-c4aa-466c-a211-0035942b831c","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":65,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"1d881ccf-8838-4fc5-9b20-1d24dba9f105","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":65,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"2888fea4-a5ac-4c0d-9c35-be78519f0ff8","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":65,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"b391d16a-c3ae-4e09-ba7e-de5da8b2188e","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional securities","page_number":65,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"0d4d3f55-1198-41ba-8ab4-10ac759ff578","block_type":"box","text":"exchange and may not be traded every day or in the volume typical of trading on a national securities exchange. As a","page_number":65,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"48c1603d-3942-4be9-a284-c328a2d88287","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":65,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"c2b5eb2d-a071-40f3-9423-e417dade5b1a","block_type":"box","text":"make many small sales over a lengthy period of time, or to sell these securities at a discount from market prices or","page_number":65,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"d94c22ee-3c07-4afe-9116-92d78b59c39a","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":65,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"1285d55d-faec-4b8e-92d3-b0dd55f36799","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":65,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"060f7839-6ffa-421c-82f5-afd6785df35d","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":65,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"38c9bfd2-2e04-45b6-ad75-7af6105cd3b8","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":65,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"ccc632d8-7d4f-40a9-94d1-76ea9499e6ea","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":65,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"ba692772-1a52-40ee-ae6f-f0084da7b286","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":65,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"36324dfe-b83c-4b3a-9ad9-d57503fa69c4","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":65,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"6193af41-eeea-4da1-8788-5d0ff85a5cb6","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":65,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"743d62be-ebb0-4ded-8cee-540dd869ae7a","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":65,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"3fde47ab-9761-4784-be9e-e4733ee03ede","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":65,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"950bc99e-449e-4ade-8a9a-f75ae99ee691","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":65,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"12d2882d-6abd-4709-a0d8-a382c79142b9","block_type":"box","text":"cycles.","page_number":65,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"084aa585-bd81-41c2-9cf7-877f1d7cae7f","block_type":"box","text":"Tracking Stocks","page_number":65,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"6b03833f-d229-4a99-9471-ede7b0162dd4","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":65,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"8c8a24f1-b601-4470-8ff7-552478ae0fab","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":65,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"281e8e85-adc7-4903-b601-56197fdbc671","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":65,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"39162379-fa2b-4026-acd9-47caa8a615af","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":65,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"2edcea98-e645-4fb0-8b16-31e3bb077f46","block_type":"box","text":"holders of the tracking stock may not have the same rights as holders of the company’s common stock.","page_number":65,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"4a5c066d-8354-44c0-93eb-3073e17267c7","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":65,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"dadd1e8b-e378-474c-b080-3f8066637ac9","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":65,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"13d419ce-9352-4d52-a934-e7d6c75b404a","block_type":"box","text":"debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and ETFs. An ETN’s returns","page_number":65,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"662d09c6-736f-4b74-bd3a-1998386ecec9","block_type":"box","text":"II-27","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a4633153-4a31-45b0-b327-52371b52c171","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":65,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"70fe42eb-d6c7-4273-b9aa-e9e2a62b1722","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":66,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"be6e494d-a145-4065-b757-df5cd454ed38","block_type":"box","text":"expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However, unlike an","page_number":66,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"49080604-70ac-41d7-9b57-a0ce82862602","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":66,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"deb34ce8-5711-4f1a-a77e-9cbf43ea4a1e","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":66,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"6b560ac3-e78a-4786-9220-f16c4b2c6551","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":66,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"5a62dd94-37f7-499b-84bb-eea308a0f985","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and demand for","page_number":66,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"ec13aba3-762b-488d-ad41-92125cf310d3","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":66,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"f7f8e9a0-1ca6-4a7c-ac41-7488455805d0","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":66,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"4b39d408-04ab-4150-bc8f-c32d10a1ea23","block_type":"box","text":"geographic events that affect the reference instrument. ETNs are subject to credit risk and the value of the ETN may","page_number":66,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"8417592b-2404-49a6-a184-a1a011e5be61","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":66,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"8c23fa22-2b36-403c-b7e8-8a5361974287","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":66,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"f879632c-f4ed-495c-a271-ff9bea9733ea","block_type":"box","text":"ETN.","page_number":66,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"6b55e69c-f4a2-46a5-b03c-f064b9e0a4f4","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":66,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"92a08ff2-c95a-4cc1-9048-f616af60ddd4","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":66,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"4320c716-80b0-40b8-b689-d75b4ba41d24","block_type":"box","text":"may, at times, be illiquid and may be difficult to purchase or sell at a fair price. Levered ETNs are subject to the same","page_number":66,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"7d9235b9-7e63-4db1-8f4d-6bdb04aa0f53","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":66,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"2c05503b-4bc5-4f2f-908b-0a4928c3345f","block_type":"box","text":"potential for loss is also greater. Finally, additional losses may be incurred if the investment loses value because, in","page_number":66,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"1e06e331-36e8-4482-bd85-e626c265b538","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":66,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"d8d7f3f9-9a9a-4777-b0d1-1cc05e486ecd","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its obligations, the","page_number":66,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"42c529ec-7511-4025-85e1-a814f1fcbce3","block_type":"box","text":"value of the ETN may change due to a change in the issuer’s credit rating, despite no change in the underlying","page_number":66,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"5d3592d9-4640-44d4-86ff-0ac3353e0e63","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":66,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"8f411fc6-4baf-491d-81df-391b34ce4b12","block_type":"box","text":"difference in price may be due to the fact that the supply and demand in the market for ETN shares at any point in","page_number":66,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"d0b19cb5-0183-46ed-bfa7-901c13e17569","block_type":"box","text":"time is not always identical to the supply and demand in the market for the assets underlying the reference","page_number":66,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"b88fd046-dab5-4c4d-ba44-1f538095f628","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":66,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"a6fc63a6-1dbb-4905-b56c-125bb0762320","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally meant to","page_number":66,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"3ad729c9-2653-4d0e-b1fe-32d10463f327","block_type":"box","text":"be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the availability of a secondary","page_number":66,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"672de7e7-37c8-4ec1-939d-55a818903aba","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":66,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"6af94f18-4617-4617-a283-4416fcbbebed","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":66,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"e415ffcd-c915-4190-8c1c-0084e91e722b","block_type":"box","text":"uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and character of income and gains","page_number":66,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"94ff7c53-5993-40b0-950e-954f2dd0c16f","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":66,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"be287c9c-3c0a-470f-b4d1-a5807a8d1f55","block_type":"box","text":"Foreign Investments.","page_number":66,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"6d1ddc46-3be6-436a-9bdc-c2fba9d5efae","block_type":"box","text":"Foreign Investment Risks.","page_number":66,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"c5b7da38-9d3e-4bdb-bdb7-24bb1fb1d6a8","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":66,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"bf7bd11b-b8d4-42a3-b07b-e53b65a20e03","block_type":"box","text":"located in emerging market countries. These securities may be denominated in U.S. dollars or in a foreign currency.","page_number":66,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"5c9b838d-d901-42c9-a127-270584af7df7","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":66,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"1197312e-43ef-405f-a3ba-cf26b1619204","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":66,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"dfa50da5-6729-4829-9d2f-5bba64151d1a","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":66,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"46af8aea-28b7-406e-b1ac-ca9e30131c9e","block_type":"box","text":"securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are conducted from the","page_number":66,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"5d395fde-4509-4841-a3b9-43937f279813","block_type":"box","text":"U.S., (ii) the company’s equity securities trade principally on a U.S. stock exchange, (iii) the company does a","page_number":66,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"20603d0d-48fa-49de-a386-b7e7ae3cfbc3","block_type":"box","text":"substantial amount of business in the U.S. or (iv) the issuer of securities is included in the Fund’s primary U.S.","page_number":66,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"a2ec93b2-6add-449d-af9d-19f36814b7c5","block_type":"box","text":"benchmark index.","page_number":66,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"de1e69a5-3d9c-4ecb-8935-a0d804c73333","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":66,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"690d0aa0-d476-46c2-9d27-cd1721cfe93f","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":66,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"432eb5d6-ad65-4119-922d-4adf2afcb221","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":66,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"02fc6ad1-0941-4a1d-a191-4b3d376236ff","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":66,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"fe0d7ede-bad5-4f20-8d10-810a0dcebb39","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":66,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"25098798-c02b-474d-862a-62db571ff833","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":66,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"8140cc89-4d00-4ae4-b6fd-d9be38619666","block_type":"box","text":"securities and zero-coupon securities.","page_number":66,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"b9f0cf40-9e61-4870-9a49-30cfac3aed67","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":66,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"f0086736-a06c-4343-9931-f8065d3508e8","block_type":"box","text":"taxes.","page_number":66,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"1db02c36-824a-4344-9016-8b4d04c77fde","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign exchanges or in","page_number":66,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"f81c03d5-16d4-4d02-a846-bc7a2a632469","block_type":"box","text":"foreign markets that are closed when the securities exchange on which the Fund’s shares trade is open, there are","page_number":66,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"3678d325-49ad-4181-ab92-0e44fce0737c","block_type":"box","text":"likely to be deviations between the current price of such an underlying security and the last quoted price for the","page_number":66,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"07822fa9-f950-42de-bf9c-1be995774100","block_type":"box","text":"II-28","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7e7f49fb-d59b-4319-90ed-0f40719241d7","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":66,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"78998773-647a-47e8-994b-076e57e39e84","block_type":"box","text":"underlying security (","page_number":67,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"97dcc068-c26c-4038-be24-32191f337ea8","block_type":"box","text":"i.e.","page_number":67,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"4eec48c3-6677-4f76-8f6c-00ab284b895d","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":67,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"1922ca3a-5fa5-41b8-aa4e-1f24d479a62b","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":67,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"f5bd203b-3620-4606-8f99-720618fe572d","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":67,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"a8a762f4-8b47-4837-bf15-a57de4de8e1a","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":67,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"e26fb1d0-8fba-41b1-84dd-22227e33ba32","block_type":"box","text":"Foreign Market Risk.","page_number":67,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"90a4001d-3132-4387-a253-504b2f40ed17","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":67,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"5dfad8cb-7bf1-4398-bd2b-332cbd63325a","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":67,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"5977378d-a2b4-4f5b-98bc-bb65bc5b2be2","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":67,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"6f1536c5-f604-47a8-b3a6-564c65e850fd","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":67,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"62c9b63a-1975-403b-9b54-bbf5dce06280","block_type":"box","text":"is subject to the risk that, because there are generally fewer investors on foreign exchanges and a smaller number of","page_number":67,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"d88ac32a-23c8-40da-ad15-f85742779dd2","block_type":"box","text":"shares traded each day, it may be difficult for the Fund to buy and sell securities on those exchanges. In addition,","page_number":67,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"04b1ca46-fc0f-4f5c-98dd-6def1d3ea891","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":67,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"33d1263c-442c-48d9-a4b5-ca01643c2c75","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":67,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"5e91e3e2-116a-445c-9d3c-1c4c7b2ba888","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":67,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"95f1a2e1-2698-4555-b971-e3f1c9f65c6f","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":67,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"f6d1f37a-0037-49dd-9f40-f15295941828","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":67,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"5d4e5451-b315-44ca-8f6b-505ebad55632","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":67,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"17a0b59f-8556-4747-9109-816398b3cc0a","block_type":"box","text":"controls and/or sanctions may include the prohibition of, or restrictions on, the ability to own or transfer currency,","page_number":67,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"9525f21a-5a21-4a25-b7e0-c0fb576e036a","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":67,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"1f2fe779-274d-439d-b0f4-42297fd5d354","block_type":"box","text":"government, such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":67,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"8564c3fa-7560-4d66-b26f-888e4d2f1d7d","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":67,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"d0776457-4347-4c1a-909a-725b6ba1b765","block_type":"box","text":"transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or","page_number":67,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"f008b113-bf2d-4e14-b846-96a48d1acd66","block_type":"box","text":"liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the Fund to decline in value. Other","page_number":67,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"4c6c7274-8c62-42d9-9ce5-f82155d44458","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":67,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"6ac10042-bc4a-48e6-8a3a-8ec52fbec37f","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":67,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"6e3dd568-c432-452e-b666-ed0ba4379f4c","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":67,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"3859106f-0cc6-436a-b790-deba4cf87c4d","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":67,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"ebe66dcb-1f5e-48d8-9eb9-cfd5a23be5a7","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":67,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"965939b9-96e3-4faa-a77b-ec5b6cdfe71d","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":67,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"d81e931f-f8f0-4954-bc51-fd0a2d80f308","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":67,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"364821cd-a6a0-4d21-9f48-315096f21e65","block_type":"box","text":"Fund’s operations.","page_number":67,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"35d73ac8-6a47-442a-b3e7-b35b62f1de8d","block_type":"box","text":"Foreign Economy Risk.","page_number":67,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"3282c3dc-6d49-45d5-a4ac-518adba492ea","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":67,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"f0d90b18-676f-42ce-9518-2c03728d5100","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":67,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"11c86dbb-d7a4-4377-b1a2-177fe56338b8","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":67,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"83c126c5-dc2e-4e54-a82a-ac544c331b2e","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":67,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"4e3baf85-186d-4ab5-9843-bbed58aae279","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":67,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"c5771955-50f6-404e-b89d-5816f4faf381","block_type":"box","text":"measures.","page_number":67,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"cac7e0aa-d392-4800-9c3a-2988789eb550","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":67,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"b34c50f9-d621-43d3-aa8d-9ab948cb0b95","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":67,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"1d3d647e-903c-44b4-9928-32f538a5e17d","block_type":"box","text":"interest in foreign currencies, the value of a Fund that invests in foreign securities as measured in U.S. dollars will be","page_number":67,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"abce6a6b-bd6c-45ae-89c6-b095a7f391d8","block_type":"box","text":"affected favorably or unfavorably by changes in exchange rates. Generally, when the U.S. dollar rises in value against","page_number":67,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"0ab799c4-4f53-461d-a097-6f2e0b6941da","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":67,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"bbaa1cc8-8de3-409e-b0fc-5bb46f2b66a6","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":67,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"963c6ccc-69a4-4f1f-a808-11155953be06","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":67,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"1acbae3c-0d01-428e-b038-281781869ab0","block_type":"box","text":"risk,” means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will increase","page_number":67,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"91502fe8-15bd-406a-a2be-d66b7200db0e","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":67,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"bb780c36-4b47-4da3-9b56-0f199377e9a3","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":67,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"19e25558-099a-4740-b8c0-bc4b09d1821a","block_type":"box","text":"United States or abroad.","page_number":67,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"28688d6b-8c0c-4c5b-a68d-b26d62ad6810","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":67,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"27569f49-95fd-4736-89e9-dc21f7df3dd4","block_type":"box","text":"Many foreign governments supervise and","page_number":67,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"6eb8b739-0b70-4203-8272-c543ca33df8d","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":67,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"21149a77-74a9-4f86-9c88-b397eea90956","block_type":"box","text":"not have laws to protect investors comparable to the U.S. securities laws. For example, some foreign countries may","page_number":67,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"294070f9-e507-4c06-aec1-9b1204d36d0e","block_type":"box","text":"have no laws or rules against insider trading. Insider trading occurs when a person buys or sells a company’s","page_number":67,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"c85922ea-859e-45aa-8d40-8610ca8dc4f8","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":67,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"b16b5054-18c2-4106-a4a0-27c5fe7b5085","block_type":"box","text":"necessarily the same as in the United States. If the accounting standards in another country do not require as much","page_number":67,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"7d579af7-39f9-42dd-a7ab-8c818599b2d8","block_type":"box","text":"detail as U.S. accounting standards, it may be harder for Fund management to completely and accurately determine a","page_number":67,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"314e0d52-b738-4acf-8bbf-55486e91f97b","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past imposed","page_number":67,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"b202da4e-7add-42a5-89cd-1e171c27ef16","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":67,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"0bfaaf4f-f274-470d-8033-c408ecc45d07","block_type":"box","text":"restrictions should be reinstituted, it might become necessary for the Fund to invest all or substantially all of its","page_number":67,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"eca23610-7a04-4bde-81fe-dd5b64914ef1","block_type":"box","text":"II-29","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9bc0a7e4-287d-4b4f-90f1-019c10a18139","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":67,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"85cf1d49-6c64-455c-9b9e-5a1c523788c5","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":68,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"6d4d3915-e0e7-4cd2-9fb0-4d05001a30b2","block_type":"box","text":"higher in foreign countries than they are in the United States. This reduces the amount the Fund can earn on its","page_number":68,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"a2c57149-af30-4a30-ab5e-f33671ec3e75","block_type":"box","text":"investments.","page_number":68,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"70cd148e-f95e-4faf-85b6-75dd05167c2c","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":68,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"b4570aa9-cde8-4af1-be89-f87b886182a4","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":68,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"cad012db-20bb-4ac0-9987-42d80319d1fc","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":68,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"45ee0888-13a9-44fc-a14f-07bdeab2eeea","block_type":"box","text":"organized or new to the foreign custody business. In addition, there may be limited or no regulatory oversight over","page_number":68,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"c6eb9e51-7a92-4112-9b2e-4b90a1782498","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":68,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"0ceffba9-4fa2-4767-8c54-7696013cbb61","block_type":"box","text":"bank or depository or issuer of a security or any of their agents goes bankrupt. In addition, it is often more expensive","page_number":68,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"efac337d-b37b-4d2f-b8b2-e078aa58c702","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":68,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"b8e759ac-6f34-4bba-9274-f96f4b6710cf","block_type":"box","text":"expense of investing in foreign markets reduces the amount a Fund can earn on its investments and typically results","page_number":68,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"65418445-2a6e-464d-adec-37b7da0bf803","block_type":"box","text":"in a higher operating expense ratio for the Fund as compared to investment companies that invest only in the United","page_number":68,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"b6b467bd-aa0c-43e1-a250-8d73d84baed5","block_type":"box","text":"States.","page_number":68,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"0dcf5089-c5af-4e91-8063-524e8111b76b","block_type":"box","text":"Publicly Available Information.","page_number":68,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"150a011c-990c-408c-8738-d9bc04d329b2","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":68,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"25a075dd-8adc-4284-ad09-06a0b3afb45a","block_type":"box","text":"than is available with respect to U.S. companies. Most foreign companies are also not subject to the uniform","page_number":68,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"7bebf319-405e-4fe7-91f5-3c16263bc996","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":68,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"65ea940d-f841-4205-b7f7-03b464f4ab39","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":68,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"581a5ec4-9a11-45c8-a870-60d849d09313","block_type":"box","text":"the New York Stock Exchange. Accordingly, a Fund’s foreign investments may be less liquid than, and their prices may","page_number":68,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"66c7dec6-a277-45ad-9c23-8a6a334b6beb","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":68,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"777f2633-2825-4ab1-989c-1d3cf6467d8b","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":68,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"1f7087f2-90b8-4718-ad8b-6fb79ca15472","block_type":"box","text":"United States.","page_number":68,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"c5a385b8-fdc5-4395-8152-2f05f9014f9e","block_type":"box","text":"Settlement Risk.","page_number":68,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"ac909f9f-29f3-4708-b108-01f190ecde85","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":68,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"5bc831a2-de51-4c7d-93b4-8a8fdb0d742f","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":68,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"516e3492-eb84-45d6-b5d8-3929526b7e96","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":68,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"6721f246-cabf-47c5-be0f-2aa9310c40ac","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":68,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"aef6e9c6-e961-42ce-bef8-e1be4aa7f23a","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":68,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"361f7ab0-600b-4dcf-bf65-e092e518bd4e","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":68,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"ce23fed1-08c4-4961-a6b3-42dcff800147","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":68,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"91556693-6b25-46bf-9b3b-d1a63cb54770","block_type":"box","text":"these problems may make it difficult for a Fund to carry out transactions. If a Fund cannot settle or is delayed in","page_number":68,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"e3b5f854-2199-4237-a3f7-8b5af276e113","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":68,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"71e49746-65c3-4700-870d-f771d7ec318c","block_type":"box","text":"uninvested with no return earned thereon for some period. If a Fund cannot settle or is delayed in settling a sale of","page_number":68,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"7b5a9ac2-a9f2-4146-ab69-3ac89b42cf7e","block_type":"box","text":"securities, it may lose money if the value of the security then declines or, if it has contracted to sell the security to","page_number":68,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"a4dbce5f-6af6-4c04-a31f-6befa9b6149a","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":68,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"fe96007d-9193-4709-92fe-28caa12e2bac","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":68,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"da1ba0c9-2da3-49aa-8463-5c168ac04cb9","block_type":"box","text":"arise in respect of securities held by or to be transferred to a Fund. Compensation schemes may not exist or may","page_number":68,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"a9a86df5-afb0-419f-9519-6838298d78f6","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":68,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"02cbc195-283e-4bc2-aa54-baedb2dc4aed","block_type":"box","text":"Sovereign Debt.","page_number":68,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"3b580f62-9ae9-4297-8552-afdcf933b7b7","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":68,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"c0a586a8-6684-4c9b-be3f-7a5eda0af81a","block_type":"box","text":"controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in","page_number":68,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"95aa01b9-3c8f-4c19-91a4-6b8cebc7dff5","block_type":"box","text":"accordance with the terms of such debt. A governmental entity’s willingness or ability to repay principal and interest","page_number":68,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"63ad6fae-e161-4a89-a8a6-d4412c14e973","block_type":"box","text":"due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign","page_number":68,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"936a5662-4477-4483-a086-7d5735df5939","block_type":"box","text":"reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt","page_number":68,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"c98eddb5-cbaf-448a-85d2-886520a4f370","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":68,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"6722b4d7-2a4c-4b49-83ab-bda05b9d23d8","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":68,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"a643b05f-1b3e-43be-a227-32eae50b64d3","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":68,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"d4fb47e6-b53a-4374-8114-1d52a7bcbd2b","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":68,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"1557993f-3b74-43d2-a974-723e8860f462","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":68,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"b4c0d1b7-edbb-45fd-82e9-e621d7b56d40","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":68,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"440891dc-5282-4f5b-a638-1b8c9f895102","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":68,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"84a09bc4-3a4e-4eeb-8380-c0c17e932951","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":68,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"85377587-bc3e-44ce-860d-d0b5b6a98f13","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":68,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"cd709530-4c8e-469e-90db-c9b661223599","block_type":"box","text":"debt.","page_number":68,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"e19d4350-c69d-46a5-af87-9a9b4b91a161","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":68,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"9f0570b4-d5d1-4ab3-8487-17ebf2bf0da8","block_type":"box","text":"loans to governmental entities. In the event of a default by a governmental entity, there may be few or no effective","page_number":68,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"cf860382-3e02-4511-88c4-e74b72dbe198","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":68,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"9dbb6a00-6b1b-48a3-8d8f-71fac957c536","block_type":"box","text":"II-30","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"63a127b1-7065-4de8-adca-3a2cfb6e61d0","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":68,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6674feb0-be55-4294-8772-2e5c6ba5eb74","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":69,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"75656efe-04c1-4761-bcd7-2f388fe05732","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":69,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"9da86b0a-174c-4bfd-8910-e53975dd5b01","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":69,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"a7b5c8f3-6d02-4a99-8b33-65317c2ce159","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":69,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"cc7f4568-1af8-40c0-9795-3275e3834703","block_type":"box","text":"refund is within the control of the tax authorities in such countries. Where a Fund expects to recover withholding","page_number":69,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"4aaccb28-5795-4ddd-9444-6e3f0355098b","block_type":"box","text":"taxes, the net asset value of the Fund generally includes accruals for such tax refunds. Each Fund regularly evaluates","page_number":69,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"da6e13c6-1237-4de3-8e0b-e081ef47d6cf","block_type":"box","text":"the probability of recovery. If the likelihood of recovery materially decreases, due to, for example, a change in tax","page_number":69,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"164add80-5ac4-4c3f-85f0-79cd4423421f","block_type":"box","text":"regulation or approach in the foreign country, accruals in a Fund’s net asset value for such refunds may be written","page_number":69,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"1a5c0c36-8fbe-44c9-b736-530dd06f3060","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":69,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"a22741d7-4648-4795-86bd-5984cbae6258","block_type":"box","text":"accrual is written down will bear the impact of the resulting reduction in net asset value regardless of whether they","page_number":69,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"940607a0-d613-44e7-8da7-960b20c06638","block_type":"box","text":"were shareholders during the accrual period. Conversely, if a Fund receives a tax refund that has not been previously","page_number":69,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"1da378f4-84e6-4941-9eef-5de6b6a8ed47","block_type":"box","text":"accrued, shareholders in the Fund at the time of the successful recovery will benefit from the resulting increase in","page_number":69,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"ffb4a4a9-49c4-4d05-bf26-76252807c5ff","block_type":"box","text":"the Fund’s net asset value. Shareholders who sold their shares prior to such time will not benefit from such increase","page_number":69,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"e41d1835-da38-41c6-aad9-78872c44914c","block_type":"box","text":"in the Fund’s net asset value.","page_number":69,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"8c181dc0-f5f2-44b1-bfc2-5629519e1c1a","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":69,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"f756c5fc-5304-4adc-91f4-3f150d72c759","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":69,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"a2a9cf4d-169d-417f-9a68-99eead76138a","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":69,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"87a9221a-56fa-447d-bfb1-ceae35aee15b","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":69,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"c080d109-baf5-428d-bb52-5a5d475f063c","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":69,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"192f2e1b-ef52-4968-932a-a3d4fd284332","block_type":"box","text":"slowdown in the United States may have a material adverse effect on a country’s economic conditions and, as a","page_number":69,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"5a09eb29-dadf-4f23-9a67-e32d0ed2cdd6","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":69,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"eabe6276-f637-4405-a4b9-8d964b068756","block_type":"box","text":"of interest or principal on U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment","page_number":69,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"c345e17a-cc31-4a2e-9256-a5b8e907816e","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":69,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"e2c8f8f6-d137-45cb-ae7e-ee1eb26bd9ba","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":69,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"db8c5666-5685-405d-8342-057b8b5a3912","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":69,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"8a3735be-bfd2-4f13-a1b8-dcda9190e2d7","block_type":"box","text":"If these relations were to worsen, it could adversely affect U.S. issuers as well as non-U.S. issuers that rely on the","page_number":69,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"806f6ed5-6968-4a90-8abf-225d5513a612","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":69,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"c47d5140-30c4-4c3b-a7da-e0136384ff7e","block_type":"box","text":"trends were to continue, it may have an adverse impact on the U.S. economy and many of the issuers in which a","page_number":69,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"910091da-8430-468d-a0d2-88307214fca2","block_type":"box","text":"Fund may invest.","page_number":69,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"e0dab6dc-cc6e-4ea1-a102-484bd3f5f298","block_type":"box","text":"Funding Agreements.","page_number":69,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"a1e801ae-4aaa-4797-891a-6fe72aae4f57","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":69,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"581bce14-9048-4263-8787-17de50abf059","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":69,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"34761b34-be5c-430a-b12c-5b863d18db12","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":69,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"e49e1ae5-484c-462c-a142-b82d9157b392","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":69,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"816e86ec-e40a-4591-820c-bcd0a5052f2f","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":69,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"58988ef2-6bb2-420c-8184-590eae7b74f3","block_type":"box","text":"general assets of the insurance company, and the contract is paid from the general assets of the insurance company.","page_number":69,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"a5870f52-9830-43b1-a7c7-096839fc41b5","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":69,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"ee335fe1-7b0a-4d01-85ec-b4c1dd2579e5","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":69,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"5f2ad5e1-fd47-4b59-a583-966dbac0ab64","block_type":"box","text":"Guarantees.","page_number":69,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"11527e22-ffda-4075-83fe-15c31da72935","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":69,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"81e4795f-2d77-4fcf-991f-d49499834f6e","block_type":"box","text":"issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":69,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"8b753283-6090-4d52-b6f4-4d7e071fe3d7","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":69,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"b1a0b67c-884f-454f-ae99-8a1b99a5407b","block_type":"box","text":"Illiquid Investments.","page_number":69,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"a5e43a55-6e52-4ea9-9da4-88bd3232e6b0","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":69,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"ed3716ea-42d3-4c74-b8a2-8711713465a1","block_type":"box","text":"Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any","page_number":69,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"28b11e4d-c153-4864-8ad1-4b20dee6a4c9","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":69,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"2163df18-cda9-44bb-ab79-ec7e7fe70420","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":69,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"3f45ca1d-d79d-4d65-aa32-3b15f64ca298","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":69,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"4268d572-40b9-4091-a2ea-48a387a2d4ce","block_type":"box","text":"no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid for","page_number":69,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"9679569a-c986-41f5-9fbc-791ccf6e67d1","block_type":"box","text":"as long as it is held by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":69,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"6c5725e7-780a-4b73-9443-4fd37f7e9ad0","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce the returns of","page_number":69,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"ec2d7828-7dfb-4dfd-b02b-e406ce51cb4b","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. In addition, if a","page_number":69,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"41c4ac15-416d-453d-b9be-e09bdb5b0843","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":69,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"01079406-cc16-4cf5-adfd-c3acc1d2fb61","block_type":"box","text":"selling their shares, or the Fund’s net assets otherwise shrink, the Fund will need to dispose of liquid securities to","page_number":69,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"077e6adb-531d-442c-b7cf-fd92a344091d","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":69,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"35f59cfe-405a-43dc-90ec-3502301ce8e7","block_type":"box","text":"investments exceed 15% of a Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as","page_number":69,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"2018ab05-b19c-407f-895d-366a7a42604d","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":69,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"ce566bd3-c63c-4a4a-801a-43d8d68e1e87","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":69,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"bdba96af-cb2b-4984-bfee-0f67d4039a08","block_type":"box","text":"Fund to dispose of its investments in a timely fashion and for a fair price as well as its ability to take advantage of","page_number":69,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"1aa78c54-0c8e-48d2-b4fb-5a854ba4d06d","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":69,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"eb42e063-61ce-4520-94b9-8f7586c54683","block_type":"box","text":"II-31","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f484a9f1-abda-47e8-b309-80fec44d0de5","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":69,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c40711ac-a4db-4086-a397-45ca106cd43d","block_type":"box","text":"cash, such as when the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet","page_number":70,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"2648fc62-c59c-403c-9f8a-60a45affb6f0","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":70,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"7bb9668a-33e2-423f-a68a-17784a238e2f","block_type":"box","text":"Index Funds.","page_number":70,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"ca1de27c-9665-49c0-8ca1-d32042b99031","block_type":"box","text":"Cash Flows; Expenses.","page_number":70,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"fe77c589-2dc1-415a-be6a-a4cb57c76a00","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":70,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"798a4bdf-3bd5-4130-ae25-6191f895c703","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":70,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"0680bda6-890e-4668-b808-5b6f7414406d","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":70,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"302e9d26-851d-498f-b9d5-7d8b3397d57f","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. Investors should also be aware that","page_number":70,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"aae75cb6-85fb-435d-8a58-0ccee9ef6835","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":70,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"20ade848-7e77-40d2-a9c9-d97f526408af","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":70,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"779e4519-f8be-464e-ac40-bd60299e5874","block_type":"box","text":"(","page_number":70,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"f5531a5f-0cc7-45d4-83c0-cb4ab371ab64","block_type":"box","text":"e.g.","page_number":70,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"b6e10deb-d4bf-4eaa-97bd-58c6c4175a0f","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":70,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"ead15728-df3a-44b8-925e-f3eaa2467684","block_type":"box","text":"replicate the total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":70,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"593716b0-7e44-4045-ada6-757414c0b389","block_type":"box","text":"par ticular security as an investment.","page_number":70,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"646e1571-c3b8-4003-bb1c-b266d0875d90","block_type":"box","text":"Tracking Error Risk","page_number":70,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"439675e6-b48d-424b-bd29-fd50a111c6e9","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":70,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"e5d76afb-e3c1-4840-9fc1-f9c4d4850c77","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":70,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"59b4e2b8-c150-4802-a8d6-1c4846bda147","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":70,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"86f65252-1778-4dd9-9eec-2c9fcd3bc903","block_type":"box","text":"applicable, differences between a security’s price at the local market close and the Fund’s valuation of a security at","page_number":70,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"1dc6cf57-14cd-4c16-ac9d-071811712cd6","block_type":"box","text":"the time of calculation of the Fund’s net asset value), differences in transaction costs incurred by the Fund, the","page_number":70,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"de6be28e-76dc-49a0-aae2-365fa570427e","block_type":"box","text":"Fund’s holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or other","page_number":70,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"ef2402bf-2876-467e-948d-7e1b348eeba8","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":70,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"156c44e9-f111-4675-aca6-3a3bb13a8b66","block_type":"box","text":"minimize the distribution of capital gains to shareholders, changes to the Underlying Index or the costs to the Fund of","page_number":70,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"a22b8e38-42e3-4f37-a19e-26d4d3a5461e","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":70,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"b027f31e-ad4b-466e-b663-bdd4f3a276da","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":70,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"cb440ea9-8e4b-41fa-876e-f4c57cc7839f","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":70,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"23e55146-c739-4f6b-8b6e-e133f371dab7","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may conduct an","page_number":70,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"f9462c2e-6e03-4937-b2c0-f8efa4fbf9ee","block_type":"box","text":"analysis on such issuer’s securities to identify and screen for outlier high risk behavior (such as rapid or unusual","page_number":70,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"ce03fec2-0627-4eca-a957-2d4798d2be9f","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":70,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"0d2604a1-a1cd-465e-9fa6-63faf577023f","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":70,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"7161c06b-94b7-42bb-87c8-6a0183ebec93","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":70,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"d3dab779-3e70-41ef-9b2d-41e628d9b8c2","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":70,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"ce5e7317-6d26-4e3f-bbb1-f94e9e9db7ef","block_type":"box","text":"index provider has sole discretion for the determination as to whether to continue to include the issuer’s securities in","page_number":70,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"9818737e-b6ad-4235-8959-3201c8a790cd","block_type":"box","text":"the rebalancing of its index. 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Bloomberg has no obligation to take the needs of any par ticular Fund or its par ticipants or any","page_number":72,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"4fef958e-e692-42a8-8edb-2faa25f40a5f","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":72,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"03d63419-02c7-41cf-b76b-6f3e84fc1205","block_type":"box","text":"ICE BofA Indexes.","page_number":72,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"15d81cec-7b57-47bd-900b-df367e6c755a","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":72,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"28bf7fe2-79dc-47bc-a2cf-45d6577568a5","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":72,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"cdd1f893-eb8d-4557-9eb1-5cb163d25752","block_type":"box","text":"not the issuer or producer of the ICE BofA Indices, and its name is a trademark and service mark of its owner used","page_number":72,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"31e5fa48-d2a3-45cf-a92e-1e69d187de96","block_type":"box","text":"under license. Neither ICE nor BofA is responsible for or has reviewed any Fund nor any associated literature or","page_number":72,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"45c8b0d3-2f40-4978-9714-80fb9c9869b7","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":72,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"eadd4150-22e6-4d11-8606-1f75d4bf025f","block_type":"box","text":"completeness, or otherwise.","page_number":72,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"7eb7d2a1-e8ab-4d25-8f9b-0213120b971c","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change an ICE","page_number":72,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"8e59b89f-0325-43e3-97c0-f73e2481cc56","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":72,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"73ca7439-be53-45fe-9a05-9358bce7b2d2","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":72,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"aff59f96-e3d2-4259-b545-9584d63b41d0","block_type":"box","text":"Indexed and Inverse Securities.","page_number":72,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"43f0ae9a-78bd-436c-9c29-946cb49a9ed9","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":72,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"d203f5b9-85e9-435c-8a1c-074b59583e08","block_type":"box","text":"par ticular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":72,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"9e634d7a-2c43-4933-9b75-a116b30d8ba5","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of cer tain securities also may be based on the","page_number":72,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"033fd348-c2e8-44b1-ac6e-98895a27e4d7","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":72,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"81322647-6a92-4af8-93aa-6084dbb35903","block_type":"box","text":"be subject to risk with respect to the value of the par ticular index: that is, if the value of the index falls, the value of","page_number":72,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"8c3e77a6-bff5-43b0-a6cb-5b644a41a17c","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on cer tain securities may also be","page_number":72,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"e519ab3b-715e-4700-9264-2bd495cdcd0f","block_type":"box","text":"based on relative changes among par ticular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":72,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"5d38b054-73d8-4610-8adb-6959ccdf6153","block_type":"box","text":"or “residual interest bonds” on which the interest rates vary inversely with a floating rate (which may be reset","page_number":72,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"445a375c-4490-4b1f-98db-d316087b9835","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":72,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"15dadff9-0a30-4194-9b3c-d74dd1234ec8","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":72,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"87f30eb6-558f-42db-a6cf-b7a272d84d55","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":72,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"bcd0b233-f083-4e81-bfaa-d5625bc54c1c","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":72,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"077d451b-0246-4c59-a5ac-8abdcdbecce8","block_type":"box","text":"increase or decrease in value in response to changes, as an illustration, in market interest rates at a rate that is a","page_number":72,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"b3582034-1bea-4bf3-8ec8-dcaeecc1e80a","block_type":"box","text":"multiple of the rate at which fixed-rate securities increase or decrease in response to such changes. As a result, the","page_number":72,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"539ceaf0-03e6-4b72-a264-bf851c794ca5","block_type":"box","text":"market values of such securities will generally be more volatile than the market values of fixed-rate securities. To","page_number":72,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"f43d10d3-5ddf-426a-96e1-cd84b033697d","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":72,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"6bf0e9c9-2446-4412-af01-3c988e318f65","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":72,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"9ddbc437-bc7e-4fff-903d-ac7c4b01e696","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":72,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"0a4da6a4-ffb6-46de-9b2a-be83874cc298","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":72,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"5ec4da7a-7b4e-4bf6-996e-84ccb00d81bb","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":72,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"eeb94233-234d-4bc2-b15b-0a0f0f7f5021","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. When used for","page_number":72,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"74467d9a-82ff-4bf0-b741-f9c166d55a5c","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":72,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"e3c33a14-613d-4c91-86a9-18d7cf9f0988","block_type":"box","text":"includes a contingent liability, in the event of an adverse movement in the underlying index or interest rate, a Fund","page_number":72,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"b69e36e3-010a-4fef-bf18-3a8d762ac97a","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":72,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"bb534d84-5ce2-4f16-806f-74047bc4fc3d","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":72,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"8825c81b-9d58-4292-9abe-6096bad6dd17","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":72,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"e60e27bc-7028-4509-bbb5-b3d9526b8ee0","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":72,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"fb35b56c-16be-4b78-8e87-389d92ad43bc","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":72,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"02bbe552-a3fc-40f9-9b08-485c845a928d","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":72,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"0f961663-fc61-4c30-bf5d-8d72974345e2","block_type":"box","text":"Inflation Risk.","page_number":72,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"db0b7c02-9fa9-4ad7-9dce-11d262b360af","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":72,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"adb016ac-1a4c-4134-84be-31ac752fbc4e","block_type":"box","text":"value of assets or income from investments will be less in the future as inflation decreases the value of money. As","page_number":72,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"71cad97b-b005-4d08-87fa-57bc0682bc29","block_type":"box","text":"inflation increases, the present value of a Fund’s assets can decline as can the value of a Fund’s distributions.","page_number":72,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"cbf87edb-b958-4b76-a3de-6ae21cceae74","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":72,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"8aca021b-aa95-490d-8e05-c014c89dfa1d","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":72,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"9b6f15cc-e8ee-4a7c-ba86-abbc9a14912b","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":72,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"e82d0be3-ce15-4ab4-9e72-1078f92e6f96","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":72,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"854ef754-800c-41f3-87ac-132aa548ac2e","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":72,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"dc508084-8bc0-48af-820d-4462ce131bbb","block_type":"box","text":"availability may be limited and a Fund may not be able to buy any shares at the offering price, or if it is able to buy","page_number":72,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"6f229355-b99b-4f43-a58b-81266535a0a3","block_type":"box","text":"shares, it may not be able to buy as many shares at the offering price as it would like. In addition, the prices of","page_number":72,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"37292dcb-ef29-43e6-9643-dab7cf7c5e45","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":72,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"4c0107f0-5ca0-42f8-a3b7-6789c90420ff","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":72,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"73e7d654-8fbc-40c3-98fd-920b0da9498c","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":72,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"05ad8f87-2a09-4a7f-8dbf-bcab90efb75b","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":72,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"13208fd2-eafb-46b2-bd71-454681d5f93a","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":72,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"3c553c10-4816-494f-b19d-3f9df2751c9f","block_type":"box","text":"II-34","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ca149c2c-b545-4b08-9a64-ab06b4ff4983","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":72,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"8357df15-90fb-4f51-bba4-dff44c7eb2db","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":73,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"491fc3fb-230b-4926-bfdd-c14204697af4","block_type":"box","text":"Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when it","page_number":73,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"b4e09aea-b022-4a51-99d2-f2ab7fb3f640","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":73,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"22befc57-bba2-4b82-8992-01adad934e4d","block_type":"box","text":"decrease. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller","page_number":73,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"f0deb873-3dc0-43e5-b9b4-254d23178f68","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":73,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"6dbd5b28-5076-4b86-b806-57d908216305","block_type":"box","text":"be available for very limited periods.","page_number":73,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"5623d4d6-7794-4cf4-aa84-6d944c3e79e4","block_type":"box","text":"Investment in Emerging Markets.","page_number":73,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"c292a567-7ab6-4de8-8946-2a785f5bfaef","block_type":"box","text":"General.","page_number":73,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"6002c506-c715-4cdf-b653-290b736bcf28","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":73,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"e789755e-5e11-45af-a34c-b90b7d4c1ed0","block_type":"box","text":"markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital market is any country","page_number":73,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"6d22c5e3-8e48-419b-95df-2ae458596704","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":73,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"2f064459-df63-450f-82f2-211cc259eec5","block_type":"box","text":"the International Finance Corporation, or determined by the World Bank to have a low, middle or middle upper income","page_number":73,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"e2ae60ea-39b3-45b7-b035-1d0e54ca061e","block_type":"box","text":"economy; (ii) classified by the United Nations or its authorities to be developing; and/or (iii) included in a broad-based","page_number":73,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"f5b11558-0f87-49b5-a20a-b19c50213352","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":73,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"e802478b-311f-4ba1-9f57-5f829f2d853b","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":73,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"5d06aa46-7afe-48ad-870d-8d462a12eab8","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":73,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"dfa2e540-23fd-432a-8ccd-77b57d8d8d5b","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":73,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"cbd96909-7f84-4a0c-9b4e-f19c8f4a7ae9","block_type":"box","text":"such as (i) low or non-existent trading volume, resulting in market illiquidity and increased volatility in prices for such","page_number":73,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"87ce80d2-1719-4d69-aa8b-68874c8528b4","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":73,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"005873b2-cfaa-42ff-b0f0-cad7bdf11274","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":73,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"732a3e43-8a76-44eb-b85b-fcee77ddcd76","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":73,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"4fdf1ac2-a954-4cf3-909b-bc40230167d7","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":73,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"6061e93a-271d-4677-9ee5-f71f160a87b8","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":73,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"ceb4b623-6e19-4262-b60e-29ea4aa24724","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":73,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"3e76d8a6-c6dd-4e7c-aa1f-5b9dd20a7450","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":73,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"dffe2bfa-26a1-4b9d-a340-f40946fdc375","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":73,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"dbebc270-181a-4266-a1db-06e7cee821cc","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":73,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"1fa2900f-306a-4d25-a0c6-6014c3a89db3","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":73,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"28ca99cd-9f12-42ec-b898-8bcbd7fbfbbb","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":73,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"31675694-c7c0-4b05-a87f-caa6fb11dfbe","block_type":"box","text":"developed countries. In such a dynamic environment, there can be no assurance that any or all of these capital","page_number":73,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"b3a1c81e-a517-4444-ab29-3178b78b1e30","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":73,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"11af9de6-3c42-4e6b-a16d-3d0e536a6b91","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":73,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"b2873a05-1045-4dbd-9020-c0064a6daaba","block_type":"box","text":"fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":73,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"9e19b1b1-9d7c-4385-9099-2d6dafe3c1bd","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks described above,","page_number":73,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"a5e5fb24-d8b3-4eec-a7b2-5e7c9f199278","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":73,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"39a392a5-d9bc-48c0-ac77-164365e3bf10","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":73,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"e66fadad-797f-4c51-9b7e-331c9646d262","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":73,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"0649deee-446a-4189-a3be-7105b84d83d3","block_type":"box","text":"the limited volume of trading in securities in these countries may make investments in the countries illiquid and more","page_number":73,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"25ef1c6f-a8c4-488d-a0d5-94a3d8102a6c","block_type":"box","text":"volatile than investments in more established markets.","page_number":73,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"66d429f9-5e96-4bfa-9e8f-3274d647f597","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":73,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"adeee797-9973-4793-a9de-3d812ed55fa9","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":73,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"6a9b675a-c01d-43c6-9cac-b39a818e4dfe","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":73,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"5304ad3e-f45d-4849-83a4-3255699e6bb1","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":73,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"2261ea4c-27d7-4a72-9a1e-84e92170f703","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":73,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"0c78f749-faab-455c-a8d2-289de369053d","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":73,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"826b4d64-cab3-4ae1-962b-9e46823f9f73","block_type":"box","text":"shares may be held by a limited number of persons. This may adversely affect the timing and pricing of the Fund’s","page_number":73,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"5343bd61-df5b-4378-9278-e546203fe2cb","block_type":"box","text":"acquisition or disposal of securities.","page_number":73,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"705801ef-6b55-45d2-899d-90cb4134b0d5","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":73,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"ce5e0b97-123c-4ef4-ab21-71f7ea67550a","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":73,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"12982bbf-6b5f-4570-873f-937acfc66203","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":73,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"73eaa8aa-0925-4e90-a0f1-4d75e39369a4","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":73,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"57f0f686-3f9a-404e-abc2-0d250cf63f43","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":73,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"c9830327-5aaa-46a0-ac69-8de09fdfc0aa","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":73,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"d75bd270-312e-4e3a-b296-77c437503fea","block_type":"box","text":"II-35","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3ea9f88f-2eb1-45a5-8181-eb09fa0c263a","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":73,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"ac35934d-cb71-4417-a6d5-b563cb0068ad","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":74,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"ff151918-4dac-4503-8d23-65f61b9d0a1e","block_type":"box","text":"countries may be on either a currency hedged or unhedged basis, and the Funds may hold from time to time various","page_number":74,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"fbd270d9-bf4c-48f8-929d-4c843765419a","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":74,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"555a9fbd-69a7-42e6-a72f-bf6e5a5df35f","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":74,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"4cbcd676-9118-4f2e-af3f-57a869a5f62f","block_type":"box","text":"to seek to protect against changes in the level of future exchange rates which would adversely affect the Fund’s","page_number":74,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"4999e45e-3650-482b-a2f8-b44b74a737bb","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":74,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"0267a585-899d-4104-93cd-ba595d288cdc","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":74,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"00e42730-ba41-4dce-85f9-996af0218fa9","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":74,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"deb0ce82-8873-415a-a88d-9e136fe3cdf1","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":74,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"acd9751d-65f8-467b-acfd-0edba3181260","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":74,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"0c18f619-f7ce-4db4-9e47-0b2ba0415338","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":74,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"5d3b46d9-e130-442b-91b4-5e08c104a691","block_type":"box","text":"these markets, there is a high concentration of market capitalization and trading volume in a small number of issuers","page_number":74,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"beb3ae29-2b25-4ca4-b198-a337a9ce9e43","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":74,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"7a9425f8-470a-4ae9-9b25-02c31d115b8e","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":74,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"53cbd984-e264-4d63-8409-3b3c428047e7","block_type":"box","text":"region such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are fewer in","page_number":74,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"b1542cd9-d7b0-43a0-93ff-f3a9ba76db56","block_type":"box","text":"number and less well capitalized than brokers in the United States. These factors, combined with the U.S. regulatory","page_number":74,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"230fd3cc-dd32-42e5-b3ea-99fee4c6b2c1","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":74,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"709844b8-aec0-4a69-9a8e-ebd9b6bb0abe","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":74,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"7f5a3f74-f2de-4097-bf6f-102ca7d51cee","block_type":"box","text":"per formance of the Fund.","page_number":74,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"97af935b-886b-4ea1-9eb4-d2110d76c8ea","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":74,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"74e6a129-6828-40a4-82ea-a28587712b1c","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":74,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"14016811-6ed8-4409-8ba6-ec4143cb79eb","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":74,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"70178bf8-c614-432a-bdcb-2227e1c3d9f3","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":74,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"f8e6a4d8-2215-4563-a606-1160d231d8f7","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":74,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"aec03ae7-d56c-444e-8043-5e47258efb88","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":74,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"a3b685f8-37b1-4d1a-bf2c-0de33349fec9","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":74,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"64372b6f-0ead-4c43-8a16-3f191f829893","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":74,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"347e73fc-e893-4e9d-8f08-e5174161897c","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":74,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"1bdd7cb3-d8bd-413c-b668-286ef22e5760","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":74,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"9a3a6e10-1a14-4842-b3c0-6b1a2f72afeb","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":74,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"329df12e-df63-42af-ae13-a38b5e8e30c7","block_type":"box","text":"affected by a variety of factors.","page_number":74,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"a150a3a5-6991-4100-be1b-f8bb1bb03662","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":74,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"d49f2662-c8be-4237-bc9e-fb8a8bf7675b","block_type":"box","text":"Fund. For example, while the potential liability of a shareholder in a U.S. corporation with respect to acts of the","page_number":74,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"3986532f-42f4-4f62-8663-723c5515d625","block_type":"box","text":"corporation is generally limited to the amount of the shareholder’s investment, the notion of limited liability is less","page_number":74,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"3f2e44a0-0dbb-4ddc-8b36-68161629261d","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":74,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"81bb989e-dcfc-4fb3-b975-e3915100b058","block_type":"box","text":"Pacific companies may be more limited than those of shareholders of U.S. corporations. It may be difficult or","page_number":74,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"df01d02a-bc8f-42e8-b1ec-dae622721206","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":74,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"f5b10c14-1919-4dc5-b31d-d1fea12c7a96","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":74,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"746e0f1a-2b8f-43b9-b2cd-ca2f44172b28","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":74,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"4ffe68be-1d53-47a4-b70f-d8ff9f76f54b","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":74,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"239b8214-23ee-4a0e-882b-6d183ff5ece7","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":74,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"a9c72124-5dd0-4893-8866-c9706ef9437f","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":74,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"3c72e3ed-bd1e-420d-acad-4e221fce6ff3","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":74,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"39f28184-7486-4e57-89c0-7d6f07ad2df2","block_type":"box","text":"nations.","page_number":74,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"9f4f8333-e80d-4b6b-8757-0adc97e4038d","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":74,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"5b92d7a2-c4b8-4f04-8011-2def2a60331a","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":74,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"1232b798-5299-43ea-b9c7-616132e0f526","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":74,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"37c324cc-25ce-4793-8337-6c3307ea6c0b","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":74,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"6caeda25-09ec-4a5e-99ac-223d79dcaa01","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":74,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"b6e3ec36-e520-43bc-9a57-0175e629abe7","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":74,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"d91bffbc-897a-436b-b6ae-076a1cfe86c8","block_type":"box","text":"market Asia-Pacific companies.","page_number":74,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"644f7061-1782-4eea-a6ff-e74a482cb057","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":74,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"09422d3b-ce30-425f-b5b8-94120b75b5e2","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":74,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"746424ce-ee2f-4fb6-93b7-e61f91d7a30a","block_type":"box","text":"services for such securities outside such countries.","page_number":74,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"8b2a0424-345a-43bf-a25d-cd686e0a28dc","block_type":"box","text":"II-36","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9892c9a8-129f-47cc-a2cb-a272183b07f4","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":74,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"2f81869e-af35-4f77-b372-d3d64a46c02c","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":75,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"c8c70f74-d3f1-4163-924a-656033ccfcea","block_type":"box","text":"to commercial banks and foreign governments.","page_number":75,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"2c5e79cb-8573-45bf-b605-9dec45b79b58","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":75,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"35520d43-6247-44d4-9c50-1b04e6d6d949","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":75,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"2f6f5f66-e177-40d2-8cb9-eb37fc58368e","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":75,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"7f656a64-cad2-4ca9-9e6d-cbe5f1659ebe","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":75,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"b48ee120-bc93-4645-9642-9584b23f8bb9","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":75,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"c36d1bd9-2527-491f-b3db-87b7af2f181c","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":75,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"f7ceccd2-4d7f-4894-9a7f-bd95c56cc4e3","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":75,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"c81d3aa3-8263-433c-9b2a-0235732107dc","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":75,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"e40b9aa0-66f7-4f9b-b2dd-8fa4d88b7744","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":75,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"68b582cc-165a-423b-9e5f-d584634155f2","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":75,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"5f89275e-7eb3-4168-805f-fc93c5c41dda","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":75,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"df32e6e0-c64a-4a22-b59a-505e2b8ed6d5","block_type":"box","text":"by foreign persons to only a specific class of securities of a company which may have less advantageous terms","page_number":75,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"4f600152-3c49-4fdf-89f8-abb8c8dba5b4","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":75,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"e9ac53b5-0c7d-4f88-bebf-ad5e375a416c","block_type":"box","text":"be no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In addition,","page_number":75,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"13563077-732e-4725-87c8-c54aea54509e","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":75,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"748f8895-4bec-4f1d-b418-70fde07d6640","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":75,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"0d930963-4cd4-44ca-bba7-e1132c71f1b5","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":75,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"3d5ee65d-61d9-4078-990f-6f8421ff7a9c","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":75,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"013a39a5-e6ac-45e4-bae2-9a99cf26abfd","block_type":"box","text":"well as limitations on such investments, also may have an adverse impact on the operations of a Fund. For example,","page_number":75,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"6cd601e3-b9e3-432d-8cf3-8c481c27cd43","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":75,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"c20753b6-0701-457e-9493-95d64016ffe0","block_type":"box","text":"have the shares purchased re-registered in the name of the Fund. Re-registration may in some instances not be able","page_number":75,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"3c6c3d2e-efc6-4441-a27e-0e0fdae88f3a","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":75,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"65013e4a-b399-4c8e-9cae-2dc2010a0d3e","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":75,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"4bd85749-51c4-4715-b7d4-5be92278e60c","block_type":"box","text":"a Fund places a purchase order but is subsequently informed, at the time of re-registration, that the permissible","page_number":75,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"ea153df0-bf92-41c7-be49-70ce446f28b5","block_type":"box","text":"allocation of the investment to foreign investors has been filled, depriving the Fund of the ability to make its desired","page_number":75,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"931610b3-b108-45a7-9679-fdb6df5e3cc4","block_type":"box","text":"investment at that time.","page_number":75,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"d03ac785-e23b-48c5-aaeb-a9922e159b87","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":75,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"f49b41b1-9c74-41b9-a3ed-f128961d0441","block_type":"box","text":"income, capital or the proceeds of sales of securities by foreign investors. A Fund could be adversely affected by","page_number":75,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"22578ca5-d90a-469e-b3b9-e7a419167d02","block_type":"box","text":"delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the","page_number":75,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"12114001-f8f0-4468-bee1-4b37612cf9b2","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":75,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"24583d40-1542-40fe-920f-a5a1b790924c","block_type":"box","text":"controls or other restrictions relating to their currencies or to securities of issuers in those countries. To the extent","page_number":75,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"f3557e12-ed15-4351-bc92-8824f339f618","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":75,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"a1070d3b-c88a-4dba-bad6-f564187d47f7","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":75,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"9f26d9b7-ab9b-43aa-b08d-3a4951cbcea4","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":75,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"1004652b-6914-481e-acb2-a2a7e7a7a76e","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":75,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"5fda350c-d8d3-433b-9305-1a9e18add600","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":75,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"49244f99-6d3f-4127-ab8f-ba57acd6652b","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":75,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"ffe4ca00-78d5-4181-9130-decb77c6ab1d","block_type":"box","text":"government).","page_number":75,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"efa9f221-7550-4d91-a593-eecb39a2bc0d","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":75,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"0366ad2e-9c9b-45b9-8dd3-d1c5da0522e3","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":75,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"6028681d-9f23-4fb2-8b95-b6be1c300617","block_type":"box","text":"securities of an issuer that, in its most recent fiscal year, derived more than 15% of its revenues from “securities","page_number":75,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"b6880e96-2f5d-4622-aa17-fb49fe162002","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":75,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"c23e63a5-a0ae-4158-97ad-522c1e6415d0","block_type":"box","text":"foreign banks and other financial institutions.","page_number":75,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"490125f1-81fd-42ff-acb7-a24a0a0569fe","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":75,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"7124e912-f9f5-4f7c-964d-c840f016dadd","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":75,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"0e19b6ef-d407-4d62-a8f7-33889f038a4c","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":75,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"e60825fb-dfd7-4e21-b313-9e543b4dec1b","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":75,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"3c761c59-34c5-4ef9-905e-f0d25f68fe43","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":75,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"361849e2-eb1c-46f0-a897-7bdea2ab07b1","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":75,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"9eae3432-aabb-4315-af71-ea7f141e5afe","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":75,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"4c6f0c43-23ec-4615-b314-20b09a3fc636","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":75,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"a85fd70f-fe1d-486a-b8f7-60878c757187","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":75,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"acb998ef-dd50-4179-94ce-88f6c122d9fe","block_type":"box","text":"II-37","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ce078313-1540-480a-8150-980a7ea46e4a","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":75,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"ffe0e37d-be98-42a2-8773-91dafc2cb60a","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":76,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"b955b8b6-11ea-4466-8c40-81992e8c86a4","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":76,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"0e21d15f-4fbb-4051-8400-2aafa4ed51e3","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":76,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"3043efae-a8ae-4396-9655-2a11342e39d6","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":76,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"ef5e83a5-b546-4c08-9d4e-68acf1375d3f","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":76,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"dbf7b146-f03a-415d-b535-65ad76ae792c","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":76,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"1821a341-1b00-4dbf-a599-dab485fe5083","block_type":"box","text":"foreign securities.","page_number":76,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"8745ec1a-3f00-4b21-a1fa-a7aec89b3f1c","block_type":"box","text":"Risks of Investments in Russia.","page_number":76,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"3ec15b76-3fcb-4be7-aa21-50666581215d","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":76,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"b864b0ff-c27b-4fb7-b796-1565eb2e7dce","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":76,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"c14452d4-8530-4e2f-a57c-659c9b6d4af2","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":76,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"a83e1202-0533-4545-a0d7-971397019175","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":76,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"3bdaffd3-8f0c-439f-ac55-ad2f271aaa45","block_type":"box","text":"The inexperience of the Russian securities market and the limited volume of trading in securities in the market may","page_number":76,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"4aecfdf7-0c4c-4358-a7d5-4b54f6f0fce9","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":76,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"3b19e00d-5a0b-46a5-91a8-bfb141e6d207","block_type":"box","text":"developed markets.","page_number":76,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"fa56b07f-7bc2-4307-b320-a3c7be7e99e6","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":76,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"48da130c-661d-4251-bb8a-918cf7e5bd32","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":76,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"fa97930e-98c5-4aa6-a400-5336b03da153","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":76,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"376eed8d-9166-48d4-bb43-4dd0b395c812","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":76,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"78cda37c-0b89-4036-b983-3bc34b8240f7","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":76,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"fc0901ea-8fb7-4f24-8a96-52dd44ecf373","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":76,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"b6f6e5d4-d8e1-4cc1-88b2-6ad964bea600","block_type":"box","text":"through the NSD is now based on the records of the NSD and not on the records of the local registrars. Although the","page_number":76,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"49c5b61a-1f37-45ce-bde1-43070e52dce1","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":76,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"36e11abd-c92a-4cc0-b651-bb56216178a8","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":76,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"884c4dcb-5eba-40a1-91d9-44bb5e8c007a","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":76,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"b72b4706-f291-4087-b10f-81be80a6893c","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":76,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"57ce28b8-9cf1-4df7-aeee-18725d0da033","block_type":"box","text":"respect to the completion and submission of corporate action elections. To the extent that a Fund suffers a loss","page_number":76,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"34a56a21-f8bf-4ebf-a5d2-dcefcfc11470","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":76,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"89337fc3-498c-4691-908b-4085bcf6a508","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":76,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"19505e36-d5f2-456e-aed6-4dbeb16901e6","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held on behalf of","page_number":76,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"fb0b4ad2-5372-46c2-b3e4-f8b76658c64f","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":76,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"c4a37723-ad83-45bd-bd32-76b9120f8275","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":76,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"dd788a6e-7bf9-48a5-9a14-cd502b10bcc1","block_type":"box","text":"did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia launched a large-scale invasion","page_number":76,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"11c6aaa9-d49a-489f-9be7-e1ae34ecf4b5","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":76,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"85d58fab-1119-4079-95ae-31edc866f261","block_type":"box","text":"future market disruptions, including declines in its stock markets and the value of the ruble against the U.S. dollar,","page_number":76,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"4d9ef9ab-b17c-4c13-9d61-eb6d04e35065","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":76,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"2493292e-e54f-4110-b54e-e2cb1913ec21","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":76,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"be5b460f-0629-4863-87a8-ed51012c0470","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":76,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"73369713-dedd-4cab-8d64-00834523a81e","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":76,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"30f959df-6d98-43cc-bf8f-656509d8eda6","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":76,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"f63566bd-6a1f-41b2-8640-b4bfe964ccd0","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":76,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"3b551b75-5d41-417a-9990-1c18a761f8e2","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":76,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"288503d2-7975-4c2a-9093-9c755cc6cc6a","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":76,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"1942ee5a-dcb5-4a17-a8ae-c9233b3ed3cc","block_type":"box","text":"oil and natural gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":76,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"1dd38be4-f5a5-405a-a862-d3d1f7939561","block_type":"box","text":"sectors globally.","page_number":76,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"61840d30-d2ac-4044-9590-066c97154320","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":76,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"37f65532-1f71-48ab-b259-71e6c97fa2b3","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":76,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"2ffd629b-8c4d-4125-8d4f-dad6269a6744","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":76,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"5887210b-7d0d-4395-bdd4-c4fc6278ba1a","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":76,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"d850785a-a343-48ca-90aa-f4dccdf2d6e9","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":76,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"b6efaaac-72c7-433e-b6aa-dfc8d7774548","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":76,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"7bd3fa1b-672a-417f-8fe0-6ef5f77112bb","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":76,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"ccca60bf-7b63-4283-b46e-b5795ef7793e","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":76,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"cbc8c976-c19a-4ced-9fc8-8c5cbe972243","block_type":"box","text":"funds invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities","page_number":76,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"404b78bd-ee22-4d93-a099-8392c4001652","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":76,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"9ab674e7-402f-4559-acb9-9b3c5c833e51","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":76,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"2b837165-0107-4049-9759-2763e49acfe6","block_type":"box","text":"II-38","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f4ed3a3c-32e7-4cf9-8ba3-01498342ed76","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":76,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f2f5751a-3d39-4c6a-a625-58b963c3e3e0","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":77,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"16b8af8a-3c88-4c4e-a194-5fd83b9fab68","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":77,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"f925ee2c-51a6-4fff-8860-5c473f7e2483","block_type":"box","text":"issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian government at any time,","page_number":77,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"f7c919d9-8f94-4fd0-af2b-59b34a67aaf0","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":77,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"67d7d7e8-331d-48c7-a440-6f673a277e2b","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":77,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"b16ae318-ff3e-4af2-af34-db8ad762d45b","block_type":"box","text":"including a limitation on a Fund’s ownership of any single issuer listed on the Saudi Arabian Stock Exchange, which","page_number":77,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"a0b099c2-73a5-4fce-af65-9d10b5e5ea34","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":77,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"83559801-32aa-444d-8797-26710b78c184","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":77,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"82ec8cfa-32d3-4832-8d1b-cf5d7944c02f","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain or maintain any","page_number":77,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"1ce7b5a6-09cc-4659-8c83-18cdd21a65ee","block_type":"box","text":"such licenses or approvals and may not be able to buy and sell securities at full value. Major disruptions or","page_number":77,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"c6768b94-09ca-4790-8a5d-02cdb046297e","block_type":"box","text":"regulatory changes could occur in the Saudi Arabian market, any of which could negatively impact a Fund. These risks","page_number":77,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"1f41d05b-4979-4063-be34-861aabf1299a","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":77,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"6e456455-ec7d-4ba8-8992-c91cc5c2855c","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":77,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"4bf1d52b-84dc-4066-a37f-eb6dc4933a9e","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":77,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"9de18a1e-6218-477b-8994-7017b9c97036","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":77,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"c92e08af-83a2-473d-9706-757b85f85ec9","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":77,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"d25ac155-5af9-4822-8b4f-9249ee308901","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":77,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"6f07c39e-854a-47be-af0a-dbb0c4623b9c","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":77,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"91260099-be1e-4c8b-8060-99cad2f16174","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":77,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"dd8f8952-f54e-4400-8e04-c7ead366cb92","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":77,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"9ee67611-9f0e-4393-a33c-0e68826a4c9f","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":77,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"f3b6695e-14fb-4018-8c92-9ca5881d1628","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":77,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"76cf2cbf-e72c-410a-a632-3266394afe0e","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":77,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"94e981b9-0255-45f3-bcad-ccceb5642ef5","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":77,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"c18a5268-99df-4924-9a81-6949327a4a46","block_type":"box","text":"to an applicable treaty). Saudi Arabia is highly reliant on income from the sale of petroleum and trade with other","page_number":77,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"3c3087da-b48d-4f2a-b2d6-f432d4021d0a","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":77,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"327366a5-7bf2-4a7d-a169-9ef3f8ad74ac","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":77,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"8c977ce2-c6db-41e7-a1c7-c316449a0ec8","block_type":"box","text":"impacted.","page_number":77,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"79c00a69-4c98-4d70-b2b6-78e4263e9abf","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":77,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"131c7338-bd97-4230-b837-62844d11dd6a","block_type":"box","text":"many aspects of the private sector. Although liberalization in the wider economy is underway, in many areas it has","page_number":77,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"09f86cd4-3b3b-4d3d-a378-60cc01821525","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":77,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"c350b71c-87c2-4e5b-9d55-eff9a4c6d8e0","block_type":"box","text":"key industries. The situation is exacerbated by the fact that Saudi Arabia is governed by an absolute monarchy. Saudi","page_number":77,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"dcfb768d-1e3a-43d1-a620-4415d35e0040","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":77,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"7fd898a0-9cbb-4830-a520-616108589cbc","block_type":"box","text":"the Middle East due to geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security,","page_number":77,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"910dd7e7-86c7-445b-8939-02bd780384e4","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":77,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"57e205fc-2d8d-404b-a9cf-95de67bfc978","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":77,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"c5da8268-c701-4223-8fbb-9a9e453a7ffa","block_type":"box","text":"Arabia, which could affect private sector companies and a Fund, as well as the value of securities in a Fund’s","page_number":77,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"335ca138-7082-4ec7-8d38-de1fb91df343","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":77,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"34655c20-06ca-4e04-b63d-9053f3a7bbd5","block_type":"box","text":"of sanctions, may result in the decline of the value and liquidity of Saudi Arabian securities, a weakening of the Saudi","page_number":77,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"53800611-bf1c-4f85-a36b-2b17361c00c9","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":77,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"a58816c4-5d31-442f-9bea-cd71926b0cf8","block_type":"box","text":"on cheap, foreign labor, and changes in the availability of this labor supply could have an adverse effect on the","page_number":77,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"50396f5f-6e27-46d9-93a6-ef57f58f803f","block_type":"box","text":"economy.","page_number":77,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"fee470ac-0cc3-425d-b83b-33b16331f8db","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a result,","page_number":77,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"b9cb558e-c9f8-4ceb-bfdc-311abc63e57b","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":77,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"2244dbd5-c476-4281-b2ec-6fadfe1dcf38","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":77,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"0ad62f9e-f48f-42c5-8f17-47d262eb5af3","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":77,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"56a34999-57de-4fc3-91e2-870ef9284c24","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":77,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"46649a34-8e3a-433c-8bd8-6b670322f7e5","block_type":"box","text":"infrequent trading may adversely affect the pricing of these securities and a Fund’s ability to sell these securities in","page_number":77,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"fec98a85-265b-4925-87ac-b18e9fb6ceaf","block_type":"box","text":"the future. Current regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":77,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"53ea6b8b-d349-42ee-b76c-fba612faa372","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a Fund than is","page_number":77,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"0ee80d4b-92c5-490c-88fe-9cc72fcc8d5a","block_type":"box","text":"typically the case for investment managers.","page_number":77,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"0737b25c-df6a-4a5b-b78d-dc437ef68209","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":77,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"4190a6ba-080b-4e5b-9fb0-decb1875bcc2","block_type":"box","text":"instability, and there remains the possibility that the stability will not hold in the future or that instability in the larger","page_number":77,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"511260c4-36dc-41ae-affc-0265b79ef15f","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":77,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"0bca692e-64b3-44ca-b94e-9fba5fe7089d","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":77,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"4c6c75f4-0eb2-47c0-87a2-b5c7f0ee8136","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":77,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"da48c6ea-a018-4214-b05c-7b2cce6a403f","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":77,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"e39d230b-7eca-49b0-8d44-d53e66b46c13","block_type":"box","text":"II-39","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"28ea9018-85ef-4dfd-a470-2d5da00ec73f","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":77,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d867a59d-8deb-46db-a4a9-d881d59ce3cf","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S. is a","page_number":78,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"ea1db897-a918-4ded-a1b6-e33e69529f46","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":78,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"0ba07331-23af-4263-a62b-5962819dc635","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":78,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"e5e2befe-c5b7-4dd9-9398-2a95c8bdcd8c","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":78,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"f70085f4-a4a9-43cc-8be5-7d8e2d809b4a","block_type":"box","text":"an economic slowdown in the U.S. may have a material adverse effect on the economic conditions of Saudi Arabia","page_number":78,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"350d0382-ad65-4fb5-904f-e4e8d2548cb3","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":78,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"3752f966-64e4-4470-85f2-f9e621de3c2c","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":78,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"7cb255d1-8854-4b1d-97c0-a82b04358751","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":78,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"b852c655-da05-45a0-ac08-d58cbcd2d450","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":78,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"8052d82f-421b-4b07-b5bc-07d6732deee1","block_type":"box","text":"and/or embargoes imposed by the U.S. Government and the United Nations and/or countries identified by the U.S.","page_number":78,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"d7f4711a-732b-48c8-98bb-dc7d98872cd6","block_type":"box","text":"Government as state sponsors of terrorism. As a result, an issuer may sustain damage to its reputation if it is","page_number":78,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"b1ee3550-9d23-4128-bb5f-a41030d1faa8","block_type":"box","text":"identified as an issuer which operates in, or has dealings with, such countries. A Fund, as an investor in such issuers","page_number":78,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"ee0f79d4-69f0-40fa-a7ef-d3fc4fbeda47","block_type":"box","text":"will be indirectly subject to those risks.","page_number":78,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"13c9ec38-39c5-496d-adb3-a0914c628951","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":78,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"ce2325e2-5362-4185-891c-7a2c01a14fc9","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":78,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"5d26fd0e-d58f-440d-9afa-adaee4336c6b","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":78,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"b08fa24b-1e5d-4aa1-b809-0d899027261f","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":78,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"382e355b-ed53-47bc-bcb6-879f3d91f053","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":78,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"345b8dd4-1275-46e0-a23b-0f43cd799976","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":78,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"2a43fe7c-66ed-47bb-bd52-39f84ca01cf6","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":78,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"c452e053-0206-45bb-bd46-7f36caad72e1","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":78,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"8c569235-a40c-4cb6-bec3-3133148ac9d2","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":78,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"ef7bf357-2221-451b-83ef-aa4ac1409995","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":78,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"29c512b4-c342-4b3e-ac32-a87753a35dc1","block_type":"box","text":"governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions, which consist of asset freezes","page_number":78,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"e3b964a9-5c15-4252-a4f8-3101572cebf9","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":78,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"ffdf682a-b04c-4251-8fea-67bb49998c13","block_type":"box","text":"government. The U.S. could also institute broader sanctions on Venezuela. The U.S. has also taken military action","page_number":78,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"5c3672ca-1a50-4c96-8fb6-3e082489bc5b","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":78,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"7bdad2c8-c7a4-4fab-9c7c-c3be41b8eb03","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":78,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"c6de0ba0-8a4b-4e79-b41d-429f76ddb229","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":78,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"9b40876f-f183-4a94-a07f-65d1a4b31783","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions against Venezuela","page_number":78,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"2ead6e14-06db-493a-a857-4be04aec9725","block_type":"box","text":"may in the future be imposed by the U.S. or other countries. These factors, among others, can have a negative","page_number":78,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"b28979a0-ba7b-4e8a-a0c8-176fc4a05370","block_type":"box","text":"impact on a Fund’s investments.","page_number":78,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"616f9647-e9bb-4e45-992d-eb76577660ec","block_type":"box","text":"Brady Bonds.","page_number":78,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"dbce79e7-8513-4b3e-80f1-28649ee8660f","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":78,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"bb7d07ee-b9ce-4324-b1a8-cefee8e98374","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":78,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"0225b1b6-3f3f-47f1-a976-29a96693a540","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":78,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"f1ab593c-77e7-45eb-b05b-1ddc7911f4f4","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":78,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"6aac055b-1779-46ad-ae03-ea498d9ec4ee","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":78,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"1c23fe74-147c-47ea-8923-379ad440a59b","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":78,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"d3541e87-bc0d-4852-b8be-dc0cfdff6e31","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":78,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"471c950d-0ca6-4e91-b7a0-8e8d5290cd94","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":78,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"de59a35a-e2a3-4dbd-bf68-fddf80d022c5","block_type":"box","text":"Venezuela.","page_number":78,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"f0256781-3b58-44a5-a122-65ddaaa2ace1","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":78,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"a9d5da9b-9477-436d-8632-8806aef6da31","block_type":"box","text":"and are actively traded in the OTC secondary market. Brady Bonds are not considered to be U.S. Government","page_number":78,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"47bb63d5-40b5-4d4d-ac04-2c41c9273776","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":78,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"63293f72-e8b1-4bc2-9008-73be804b25b5","block_type":"box","text":"discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero-coupon bonds having the","page_number":78,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"99e3e768-efac-4d5c-bcf4-a7cf2873df4d","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":78,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"2f355f1c-5d5a-4976-9dcf-5189fa6ff989","block_type":"box","text":"year or longer rolling-forward basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal","page_number":78,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"1490fce6-7304-48ca-bcc4-f2a87c54f6f4","block_type":"box","text":"to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":78,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"0d5f046a-4075-47a1-9a05-382c1d76abfa","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":78,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"d03fcf33-429e-476f-a3c2-5585632fe0e6","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":78,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"c5c0a7a7-0f0f-4028-9ab4-b8d1b7f26434","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":78,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"4501bb6a-53d6-41d4-8ab9-eba0d4bf7135","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":78,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"ee5c8826-d900-4add-8e5e-286883af2106","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":78,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"a4782840-aeef-47ea-9c6c-4e639a8b94b8","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":78,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"92efd0f8-b595-41fa-b1ab-4899fd7f8614","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":78,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"4cb1e847-bff4-4ded-95b8-d7731230d166","block_type":"box","text":"the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady","page_number":78,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"ab8945a1-7061-426f-ba62-fec02b4cd2fc","block_type":"box","text":"II-40","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0461d6d4-a3be-41ec-aed1-05edbcbbe962","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":78,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"cf2bd4b8-bfe0-43a9-804e-cd5eb89dece9","block_type":"box","text":"Bonds. In light of the residual risk of Brady Bonds and, among other factors, the history of defaults, investments in","page_number":79,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"2ef2660b-1797-4526-83ab-6b7c6fc6f686","block_type":"box","text":"Brady Bonds are considered speculative. There can be no assurance that Brady Bonds in which the Funds may invest","page_number":79,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"8d1cef34-e5e9-461d-9916-71afe4ea0866","block_type":"box","text":"will not be subject to restructuring arrangements or to requests for new credit, which may cause the Funds to suffer a","page_number":79,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"040eaea6-204e-42aa-99c2-18002fc3e185","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":79,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"26af6a64-a62f-4deb-9172-a9c39e373e7a","block_type":"box","text":"China Investments Risk.","page_number":79,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"2b4e6a24-4676-4e23-b0a4-048ac5db6df4","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":79,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"3af1222d-1803-4c0c-984c-a743eb22ad50","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":79,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"201251d2-2cde-4db9-8b07-08299b2616ef","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":79,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"953a1216-6f92-4e7b-9d94-2b79be602c1a","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":79,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"aae401f5-d134-4fc7-ab65-8eb019f0a873","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":79,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"31832490-34ee-4cd9-b6bd-7d4f7f52de66","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":79,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"d402f13b-f4b2-4334-bd90-4580ed59fe98","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":79,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"6c304815-b67b-4e49-806c-8012f23f88ff","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":79,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"ba07424c-73af-40ae-bc72-a287ce1aacd8","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":79,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"2e1637af-b963-4b2e-ab40-26b160d4202a","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":79,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"7e2ad9c2-83f4-4b5f-ba8a-37746e4753cb","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":79,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"e8a6abe9-85d0-4a77-af7e-b76b6dbd417f","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":79,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"7dea557b-e203-4462-9e0b-f08a8bfd5c53","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":79,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"166faa51-e35c-4138-91bc-4d397f786079","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":79,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"7ed2ee8b-3145-4c99-980f-ef8a1f4dbbe8","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":79,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"820adab8-1fef-4de6-9e0e-98dcfa18edaa","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":79,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"40f55f16-d107-4ea8-9329-10a5f74fe714","block_type":"box","text":"hostility between China and Taiwan would likely have a significant adverse impact on the value of the Fund’s","page_number":79,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"1cbe75ea-f76f-49e3-bf3c-660a1f73d111","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":79,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"45f468ee-7f42-46ef-98e4-e1ca7f73f87d","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":79,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"37dc0291-b5f0-4dee-af75-86d124c98a5a","block_type":"box","text":"Frictions between China and the Philippines in the South China Sea pose a risk of escalation potentially leading to","page_number":79,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"d5721d66-3c54-4b2e-8c4b-858b3b29903a","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":79,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"3c05278a-e4c6-416b-b19e-81f4b9dcdd3f","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":79,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"dd1cf409-bf09-4af4-875d-78970e01a96d","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":79,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"afe60cbe-caef-4ff8-a2af-3118c3646b15","block_type":"box","text":"companies, may impact China’s economy and Chinese issuers of securities in which a Fund invests. China could be","page_number":79,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"0c1f6b9b-c38e-420c-9db8-228c56178e80","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":79,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"0c301152-2314-4ade-8f3f-5eac91f112e0","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":79,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"5a29220e-6222-4cf3-9c8e-4af188ba3418","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":79,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"5eb81f3a-f653-4e92-8070-280a5750697c","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":79,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"5e5f09a9-e93b-4152-a630-1164e15c4c83","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":79,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"1e597da2-1898-4345-b5dd-dd743a69eaa0","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":79,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"e9de76be-16e0-40b7-ac57-4ef08ea6e857","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":79,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"0148df17-734b-4f0b-8b15-c0c4f16ac45b","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":79,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"cae36fb1-906a-46be-b65e-b8c9b4e40331","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":79,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"e5b9fd66-5d04-47f7-af89-728144710b98","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":79,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"0bc393b4-df85-45a9-8352-c099d9f418b3","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":79,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"393bf871-0679-48d5-bf3a-d9185fa4ea0a","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":79,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"b734194c-8113-47a2-8e4d-d55a4b82b241","block_type":"box","text":"market price and liquidity of these stocks, and may have an unpredictable impact on the investment activities of the","page_number":79,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"fa452cb5-3df5-45d9-a17c-974d30b38f4b","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":79,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"afd313bb-5efc-4426-a160-bdb0534691a2","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":79,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"adb795a2-7c63-44ab-9f9e-cf252e8dedb5","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":79,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"8e73d308-d2ab-4339-82f2-d544d2eddc09","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":79,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"7d307a24-0694-4076-ba5c-c4364f640faa","block_type":"box","text":"Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulation as are U.S.","page_number":79,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"bc370d45-2ab7-4df0-abbe-760a999d495d","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":79,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"fbeca892-e726-4a92-b109-d9331e6f6af7","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":79,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"47c99b0e-5b85-4545-8a5b-0a4275be0ae2","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":79,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"17c685d7-89c1-484a-841d-7cd7de6997f5","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":79,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"23c37244-add1-4e82-83b7-2f485c432e99","block_type":"box","text":"the relevant regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":79,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"23edbc8d-e46c-40be-8f69-9949093a4982","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":79,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"dd57e968-8b97-4a6c-b97d-5a1f0f23f0f0","block_type":"box","text":"there is a risk that a Fund may not be recognized as the owner of securities that are held on behalf of the Fund by a","page_number":79,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"9d2e52ab-8441-416b-9de9-1d7b04d29803","block_type":"box","text":"sub-custodian.","page_number":79,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"00887f9d-6c65-4763-969d-ebe955ae2441","block_type":"box","text":"II-41","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4831d9eb-46a4-46a1-abe9-99c8add7a18e","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":79,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d2d6eec2-4968-45cf-be2c-9c8f55eda2da","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":80,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"542b9c28-69ce-4d2f-bb10-f89520e47154","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":80,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"c146515c-fcab-420e-b934-e665d0c2629b","block_type":"box","text":"on investor protection considerations.","page_number":80,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"34a3d0cb-5a1f-4fb5-8c0b-050d69b60850","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":80,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"87e5af9e-dc18-45a2-ab00-2dc4f8ee10f5","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":80,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"0f518190-5fb4-4c22-87e1-70f292715e4b","block_type":"box","text":"for compliance with U.S. law and professional standards. On August 26, 2022, the PCAOB signed a Statement of","page_number":80,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"b51428c8-f780-4cfa-8c73-f02644532a09","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":80,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"5e8bdec4-538f-452a-acb2-0d2f6d3e1607","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":80,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"cc851fa7-5de6-4e2d-bf9c-c4c99f6d6cbc","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":80,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"cae3cffb-7e14-4f25-974a-aec60055dc3e","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":80,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"7b0b86b9-34c8-4ff6-8e91-7ba1d35cb8fa","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":80,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"af0de28b-5f5e-4c7c-a729-c2cc011a3a45","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":80,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"00db9ff3-19bc-46db-8ac4-5fdfcb28f1b5","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":80,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"cc17ce68-fb45-4990-9621-8d50f6951592","block_type":"box","text":"2020, which requires that the PCAOB be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer,","page_number":80,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"11e755a6-33d9-467b-8a25-b3e08996cf50","block_type":"box","text":"Chinese companies with securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the","page_number":80,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"cd2a88c4-dc7f-4dc0-9e85-5ef109d7d6a6","block_type":"box","text":"accounting firm.","page_number":80,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"ee4ff2ab-65d6-4734-a38c-3e0094f3974b","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":80,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"2c62b306-b3ff-4f8d-a016-c4a49d76990c","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":80,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"64b59447-c3d3-4a90-93ca-27a046383442","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":80,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"7acba0aa-848b-40ff-9d55-aa63b7c6421c","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":80,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"770246ff-2d27-4f9f-b820-0007d42d459e","block_type":"box","text":"capital, as well as by the application to the Funds of any restrictions on investments. Investing in entities either in, or","page_number":80,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"94bf9e60-d1f0-4270-89e8-317a39f33a4a","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":80,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"b999858f-6675-4f59-a1b0-32977878dc50","block_type":"box","text":"seek local government approvals or take other actions, each of which may involve additional costs and delays to the","page_number":80,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"dd70ce1f-f048-4730-8488-669ae8057ca2","block_type":"box","text":"Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and RMB, as well as in","page_number":80,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"25fa78f8-9987-44a0-8ccf-f61dc38026a9","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":80,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"905d125e-19f0-493e-a909-aca5fe336698","block_type":"box","text":"RMB (“CNH”).","page_number":80,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"3703f789-1a97-4a26-9f7d-a540e4f6f1ba","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their structure as a","page_number":80,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"d250c9cd-f109-458f-9744-897c46f6274d","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":80,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"e2f7fb71-0053-40d8-ab67-e4007cc663ed","block_type":"box","text":"in another jurisdiction to issue stock to public shareholders. When a VIE structure is used by a Chinese company to","page_number":80,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"c92da50a-3363-45a7-8bd2-39ccb2f311b0","block_type":"box","text":"list its stock in the U.S., instead of owning the equity securities of the Chinese company, the U.S.-listed shell","page_number":80,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"a4d626ea-5b44-4795-b30f-54594673f5f3","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":80,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"213832f6-8102-452d-b63a-5975a1448fe0","block_type":"box","text":"contracts provide the U.S.-listed shell company with only economic exposure to the Chinese company and do not","page_number":80,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"fb166509-5f03-4fe6-b939-68bf8f36f37d","block_type":"box","text":"represent equity ownership in the operating company.","page_number":80,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"1875b515-e775-485a-8fc3-cc200cee4e34","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have not been","page_number":80,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"6ec0bb0b-e62e-4861-b214-bd794ce9b0a3","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":80,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"c77ba819-76ed-4d57-b3ba-070d193e1916","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":80,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"caa8834c-f67d-4937-bed4-d6ca9bd7cae5","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":80,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"eb6228ac-0e51-4855-b5b9-39b9fd7caa31","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":80,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"f6b0a3c4-ab5d-40df-b502-bd91de3d145a","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":80,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"a69da351-b378-448d-92c5-1a2c6127800d","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":80,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"8035c43c-e31e-4578-b27a-8532ca5a3b9b","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":80,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"15bed944-cba4-4855-b246-a9b12a0be340","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":80,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"5f6beab4-8b95-4eb1-a933-14d820c8a8f3","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":80,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"eb75f655-ff80-4250-b78c-dd71cfde617b","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":80,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"0e62ccae-4d81-49ef-8193-578731ce7d93","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":80,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"ce1ce365-3925-48b8-bc64-aba0c4006234","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":80,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"b129b3cf-86d3-4cf9-803f-6b7d87232efb","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":80,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"57ebda7a-ad63-49dc-9e4a-627a004a9ab5","block_type":"box","text":"losses on its investments through a VIE structure with little or no recourse available. Any change in the operations of","page_number":80,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"e2ad28c1-76d6-4455-84a6-60edf5cebda9","block_type":"box","text":"entities in a VIE structure, the status of VIE contractual arrangements or the legal or regulatory environment in China,","page_number":80,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"b18b4348-df67-4e35-ad20-e62673ef0ee1","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":80,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"f9ed4987-47f5-4d58-9643-786dfaab745d","block_type":"box","text":"losses to a Fund.","page_number":80,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"0a402ebd-7d34-42d8-a6ca-5848cf7270d9","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":80,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"be308fb2-5570-42c4-8545-ef4709d2102e","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":80,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"a079d534-42c0-4d02-bd15-22197b87ccf6","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":80,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"b87622c3-676e-408d-bede-b9a6f746920e","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":80,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"bddb1df6-519b-441e-9cf5-d500b7a68efa","block_type":"box","text":"II-42","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"081e9b50-9449-4006-a538-3d20714ce2e1","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":80,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c8e54ff6-46bb-4961-bce9-0789ae434887","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":81,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"3400ad10-0235-405f-8e0f-e15d12e82061","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":81,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"ead5174c-2a0c-4272-9234-e74ae255bcec","block_type":"box","text":"and the United States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":81,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"abde716d-3105-45c2-9ab2-7b76009edcd0","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":81,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"29772bc3-bb66-4529-84ba-8d6e359d5823","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":81,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"d77bb051-c8f2-448b-b103-132f9712187f","block_type":"box","text":"subject to economic or trade restrictions imposed by the U.S. or other governments due to national security, human","page_number":81,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"84666d2f-288d-4dd7-9d78-b50c9d4f71c3","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":81,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"3c105756-8da2-4002-ad11-8408a6278120","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":81,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"fe31666c-f824-471e-9baa-83fa34958718","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":81,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"8a2cce5b-e31d-4900-a977-8302ee3c78f5","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":81,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"f844ca69-e080-4ce4-89f2-e4a9fd10e392","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":81,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"6832916d-391e-4ac3-a2d6-a1d024f3ae0d","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":81,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"16cade2e-a62a-480f-acc8-355196db1fe5","block_type":"box","text":"restrictions) imposed by the U.S. or other governments due to national security, human rights or other concerns of","page_number":81,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"7fb61024-a5e2-41e8-9f12-565e5bb01599","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":81,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"708ae9a6-a694-4689-9aaf-51a52d4551b5","block_type":"box","text":"such companies.","page_number":81,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"e41ee2d5-d0a3-4358-a41c-745984518831","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":81,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"d713898d-5132-400e-801c-70643d0587d2","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":81,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"ee57ffa3-b90b-4bc9-aecc-d9815239f0f5","block_type":"box","text":"tax authorities are not as consistent and transparent as those of more developed nations, and may vary over time","page_number":81,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"07346273-7b5e-47bb-9b66-1734ca1d0b29","block_type":"box","text":"and from region to region. The application and enforcement of PRC tax rules could have a significant adverse effect","page_number":81,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"d234934e-6394-4f4a-a375-54db3263a7bc","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":81,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"be1ae2f9-c0ba-41ba-8e3e-843d20b18c4e","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":81,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"d97bd92d-79a8-4c1c-b981-0cd952e983c7","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":81,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"fb5650b3-e765-45b4-9e03-b206507b8c97","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":81,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"d8cda3e4-404a-49f8-bd53-132b0b21c351","block_type":"box","text":"standards.","page_number":81,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"20b03d61-d645-4784-9254-8d6395f67f55","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":81,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"3813e9fb-d6b5-49e5-ba9e-7dc98b1cc00d","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":81,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"9f33d3db-6cd4-4180-98b2-c61604ddb2ca","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":81,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"66b0a7af-8e99-41e1-b2ad-e69a1b433ab6","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":81,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"cf9c3630-fdc9-412c-ac92-9a231cfaa979","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":81,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"5a0bfa02-e4dc-48cd-9379-0b3705dcf962","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":81,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"d28b9d4a-c135-41a1-af17-a6135b065f70","block_type":"box","text":"General","page_number":81,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"f65e740e-0525-4cbe-9006-2d5f12ca0efb","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":81,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"09029565-ea3f-4eca-9588-b9c5f340e852","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":81,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"2103c151-90d2-4065-a899-22ff12c070c5","block_type":"box","text":"Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the SSE and SZSE is not permitted, other","page_number":81,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"e097a27d-bcff-4761-b50b-c2f4f7675aa7","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":81,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"ca6e0c0a-0676-4f3b-803f-49f6b4341454","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":81,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"e10a8635-0664-4098-a3f7-9842f894ad13","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":81,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"54597d15-3b58-4dd6-b905-2dc7711ad750","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":81,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"e11208a5-2336-4155-a4a7-b99f15f52ef6","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":81,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"8599d099-832c-4e78-864f-dbae6b95714f","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":81,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"0f36573b-9631-4a8f-a242-d654d06baddd","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":81,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"b7bde50e-ac78-45d0-86f9-351fc85a2144","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":81,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"928b4545-685e-43f6-869f-46983fd7c78c","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on each market","page_number":81,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"02fcc57b-daac-40ab-940a-33e55b9e23e3","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":81,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"2937a1eb-25c9-44f4-b19b-73757ec5ac96","block_type":"box","text":"the SSE or SZSE, as applicable, would be effectuated through its Hong Kong broker and a securities trading service","page_number":81,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"0a78aa2a-0ee9-4033-b468-dca108620c76","block_type":"box","text":"company established by SEHK.","page_number":81,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"754a2cd1-55f6-434a-9b9c-eca0ead6037f","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":81,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"75327f77-c359-42ba-8e24-654f53832a10","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":81,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"ef18af37-a880-4e23-8c9b-50852bb5152b","block_type":"box","text":"buy orders for Stock Connect Securities be rejected once the daily quota is exceeded (although a Fund will be","page_number":81,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"4a15ecb3-13ee-4df1-922f-b8d14cf062c0","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":81,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"6c3170d7-7445-456a-ad1a-0b918f208320","block_type":"box","text":"investing in Stock Connect Securities on a timely basis, which could affect the Fund’s ability to effectively pursue its","page_number":81,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"cef378ee-f1f5-4b90-b857-fe2b360b5ae3","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":81,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"8fd61f67-5f72-4267-a820-77a0ca49507c","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":81,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"f0c60a2c-6a80-4078-88de-1841bb700bb1","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":81,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"fda9584c-bcb1-47ce-ae61-8cb3c8e9851a","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":81,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"b99a812c-2322-4063-92e0-5a0a6c1a6186","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":81,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"6f5bb10a-5537-41ff-aaee-b517748ff6fb","block_type":"box","text":"II-43","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"85e3444e-adf9-4bb9-98d5-d4009062969c","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":81,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5d498882-bd41-4424-8537-521d18da6492","block_type":"box","text":"Securities in the investor’s account before the market opens on that day. If there are insufficient Stock Connect","page_number":82,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"235a4c2a-f5f9-4d25-9d97-15348dfd7d56","block_type":"box","text":"Securities in the investor’s account, the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries","page_number":82,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"ebd76f26-fa65-41f6-b6e6-3dd1d60e32db","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":82,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"012feeea-f499-43b2-ae31-0f88f4becc3d","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":82,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"5b1e397d-d7a1-4c0f-83ac-fddcdaad0e3b","block_type":"box","text":"i.e.","page_number":82,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"bf151467-7c5f-4db1-988b-ed1b9b0b2719","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":82,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"e5b7a498-a164-4d89-b26d-8fb26888a365","block_type":"box","text":"must be designated as eligible to be traded under a Stock Connect, those shares may also lose such designation,","page_number":82,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"2424a001-ee13-4348-a813-d2e01a1b2347","block_type":"box","text":"and if this occurs, such shares may be sold but cannot be purchased through a Stock Connect. In addition, Stock","page_number":82,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"c3f730c4-395b-4105-a5e7-81e2be31ce06","block_type":"box","text":"Connects will only operate on days when both the Chinese and Hong Kong markets are open for trading, and banking","page_number":82,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"8ff16efb-2812-4c4a-be67-d235127d5e36","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":82,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"5ffc0439-fcd6-4299-8c4d-f6528ef3fa1c","block_type":"box","text":"Connect Securities through a Stock Connect may subject a Fund to a risk of price fluctuations on days when the","page_number":82,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"b4dd80ff-4576-48e6-9ab4-78fb12dc47f1","block_type":"box","text":"Chinese market is open, but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on","page_number":82,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"f86cac83-ff8a-4dcb-9e7e-5af9dd6a6eb9","block_type":"box","text":"the Stock Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will only","page_number":82,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"f5ae467d-9a7e-4d69-b6a6-aea359e9742a","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":82,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"5d72eba7-61de-40a9-9b69-870b523eea56","block_type":"box","text":"must be settled in RMB, investors must have timely access to a reliable supply of offshore RMB, which cannot be","page_number":82,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"325934da-c455-4c44-9af5-651017153baf","block_type":"box","text":"guaranteed. There is also no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could","page_number":82,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"b0062002-8dcc-42e0-b9fd-5cc5c648c217","block_type":"box","text":"adversely affect a Fund’s investments. If a Fund holds a class of shares denominated in a local currency other than","page_number":82,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"1ef9bfb5-a5f9-49a5-9df2-2e981c5e2d8a","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":82,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"b3a98c08-80a2-4fd8-8016-97b44006d4f4","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":82,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"15bd836e-9424-4dfa-8061-48984759e25c","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":82,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"99960fe9-48c9-40d2-bd39-fa1cfb4fcb88","block_type":"box","text":"as nominee on behalf of investors. The precise nature and rights of a Fund as the beneficial owner of the SSE","page_number":82,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"3f4c51b6-f742-47aa-8dc8-cd4c8e8e3611","block_type":"box","text":"Securities or SZSE Securities through HKSCC as nominee is not well defined under the PRC laws. There is a lack of a","page_number":82,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"44018fe6-993e-4efd-a2a7-6401f9c304c5","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":82,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"74904d52-b67e-4841-9e81-a153cb421e80","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":82,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"0af2651a-9b40-4120-8877-db51a4a0cfba","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":82,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"9ae4901a-dfcc-435d-a535-acdaafae0c59","block_type":"box","text":"HKSCC becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or SZSE","page_number":82,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"e07c2320-1ddb-4e98-a5ff-87ef887edf8c","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":82,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"a0c3537a-8ddc-4ed0-ac49-a9f58ca2c055","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":82,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"098c9925-37d4-4211-be08-7f17445e0ac1","block_type":"box","text":"proprietary interests in the SSE Securities or SZSE Securities held in its omnibus stock account in the CSDCC, the","page_number":82,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"e71e69b3-950d-42ce-b6e6-643cc7f47b80","block_type":"box","text":"CSDCC as the share registrar for SSE- or SZSE-listed companies will still treat HKSCC as one of the shareholders","page_number":82,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"040ed879-e62c-4c3b-8e48-8364bae1beab","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":82,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"01f2ae33-bc62-4d99-b75f-cce27b38a511","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":82,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"0df09219-591a-4a25-b678-4b630a6b5fd6","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":82,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"16414732-545d-4b48-90b0-9f46117c6db4","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":82,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"cbb355c9-e42b-457f-9939-4b86a776cd55","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":82,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"e179b5f8-4c14-46e0-b432-2011bfe6f9ef","block_type":"box","text":"HKSCC, who will then submit a combined single voting instruction to the relevant SSE- or SZSE-listed company. As a","page_number":82,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"d33f55bf-e18a-4ac5-8dab-077ccae37363","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":82,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"6893e1f6-8181-4e21-b44c-df04868d7a7c","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":82,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"ae83a024-36cb-406e-9823-44559d102b11","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":82,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"d377a56c-06c8-425d-82da-8959f73fc88b","block_type":"box","text":"to exchange-traded products in Hong Kong. For defaults occurring on or after January 1, 2020, Hong Kong’s","page_number":82,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"3042f61e-aa50-419c-93fd-e80ac921a54a","block_type":"box","text":"Investor Compensation Fund covers investors’ losses in relation to securities (i) that are traded on the SSE or the","page_number":82,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"e7bad170-1131-47a2-830c-79b69166f813","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":82,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"705ac5e7-05ee-466e-b295-d526031d28b2","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":82,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"33048a7e-9a17-4520-b95b-ad3a26944f99","block_type":"box","text":"brokers in Hong Kong but not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the","page_number":82,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"9a0c9b9e-b6b6-4d6e-9c4e-2ea4bb27713e","block_type":"box","text":"PRC.","page_number":82,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"c6028061-60c1-45b1-8b1a-939088877184","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":82,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"fd042d70-b8cd-44dd-8a90-9539b4d7dd6a","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":82,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"e02be237-64b4-4671-a36a-4a9bfafea133","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":82,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"1518bfce-b697-4f66-adb9-f0aa2c67a3ee","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":82,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"4ddaacdd-e805-4454-9681-f04a9dfad83c","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":82,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"a5b3c6b5-05ad-4788-8343-f399244fba6c","block_type":"box","text":"continue to be adapted to changes and developments in both markets. In the event that the relevant systems fail to","page_number":82,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"4bc587c0-c466-4953-8b30-e1c2ea22431b","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":82,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"55fcc311-2205-4c14-82b7-95e4362bead4","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":82,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"59c6e9d8-b9af-455f-852d-eb2dc3fc1cb3","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":82,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"b17d1272-3275-404a-ae86-3de290dcf40a","block_type":"box","text":"New or revised regulations may be issued from time to time by the regulators and stock exchanges in China and","page_number":82,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"fcaf444b-3cf3-4357-b77c-eab793ece451","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":82,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"de2fc849-adc5-4877-9909-96002c86f0bb","block_type":"box","text":"addition, there can be no assurance that Stock Connect will not be discontinued. A Fund may be adversely affected","page_number":82,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"c0ca4597-1da0-4589-948c-149004b5d7ae","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":82,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"d3a4a524-94d9-4d71-b691-99403a033e82","block_type":"box","text":"II-44","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4232c99b-5848-4c4d-ac13-a319bf654639","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":82,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"36f63c98-ae42-458a-9422-d34da7c57fad","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the relevant systems","page_number":83,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"5e31011b-3867-4f16-b1f1-8e25c62bdeab","block_type":"box","text":"fail to function properly, trading in both markets through Stock Connects could be disrupted and a Fund’s ability to","page_number":83,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"cead899b-6eba-414e-b846-e742e57a4518","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":83,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"c2aa4ba9-4073-4b73-bbb6-42b1c70eb7d4","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":83,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"4ff26607-4fd7-4432-ab50-2ac3d94a77e2","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":83,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"e21c46da-cfb5-4d49-8974-350b51e30745","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":83,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"ac72c8b7-cc7a-4871-bcfe-3198ed14c60d","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":83,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"88c8b873-1978-498c-9c78-f269017b7add","block_type":"box","text":"Suspension Risk.","page_number":83,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"e942dfd2-fa92-4904-80c4-248dedcd9f75","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":83,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"b5b91489-7489-4b4c-9bc2-58f8a2fe9b62","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":83,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"06cb5165-c74c-44c0-83cb-5acd173d6fe7","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":83,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"bd507a49-3525-4f11-b977-3a8087d62e7f","block_type":"box","text":"global equity markets. Each of the SEHK, SSE and SZSE reserves the right to suspend trading of SSE Securities and","page_number":83,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"bc4bcdb1-bf3c-4093-ac9a-96a737d63a69","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":83,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"67a8df74-1b1d-4667-bb4f-c91d2868f7fe","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":83,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"98f6237c-e8d1-4b79-8bb5-788345780938","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":83,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"4d377db8-0bfc-4fed-9405-bb1cf88dccb6","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":83,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"655a9913-a602-4b9e-b4cb-0e762e893b3c","block_type":"box","text":"Connect is effected, the Fund’s ability to access the PRC market will be adversely affected. Trading suspensions in","page_number":83,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"eaff6e65-9e78-4e85-95ba-84789babbdea","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":83,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"336c3b1f-577a-4586-8714-ae94193aff2e","block_type":"box","text":"daily price limit, generally set at 10%, of the amount of fluctuation permitted in the prices of the relevant SSE","page_number":83,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"255d7c09-5a23-474b-bd04-8937aeee1a51","block_type":"box","text":"Securities and SZSE Securities during a single trading day. The daily price limit refers to price movements only and","page_number":83,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"632d6862-024d-4d38-b6e3-f473a487f62e","block_type":"box","text":"does not restrict trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":83,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"a67e9646-f2e1-44ab-8f52-c176eaab589c","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":83,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"c1c77b01-d0cc-4563-a225-e1540d285237","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":83,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"34ba94a7-e8de-4dba-b6ca-faea48bdd5f8","block_type":"box","text":"A Fund may invest directly in the","page_number":83,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"ecb72558-f008-494a-b6e7-18ed2deba7ce","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":83,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"ce279645-80a1-49b9-a840-2d7ac24b0ba3","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":83,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"7d16e7cf-bcf1-488f-82a5-a60248ddf7a0","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":83,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"be5ec6f7-4426-4530-b439-d75e155a508a","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":83,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"4782f512-d7c5-4aef-a434-2b1335c75249","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":83,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"6f410d5c-236c-4d70-ac7b-b9cab923eff4","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the China Interbank","page_number":83,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"ecb33986-c570-4ed2-b6c2-e73d1f610305","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":83,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"7e29760e-7bd4-4eb3-b755-634090dffe87","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":83,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"81988283-fd02-4b98-a4a5-699901119427","block_type":"box","text":"turn transmit their requests for quotation to CFETS. CFETS will send the requests for quotation to a number of","page_number":83,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"fd21869c-d75b-4156-936c-56b8bc46c1c9","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":83,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"8e0c7357-819c-41e6-814e-f985373c47c6","block_type":"box","text":"The approved onshore dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their","page_number":83,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"407c002b-7ed0-45c3-8655-3362cf45a3eb","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":83,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"7753344e-0f4e-4341-8f3c-bd03a9b01227","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":83,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"a07576ea-74d4-46e6-8dca-2475e1199441","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":83,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"dc65801a-8afa-44b5-b9b8-2078223db716","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":83,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"14e1c4a7-45d0-4d1e-8bcc-d6db055eccf4","block_type":"box","text":"as onshore custodians and clearing institutions in the PRC. Under the settlement link, CDCC or SCH will effect gross","page_number":83,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"f89e56fe-b27f-42cc-af37-41e54b5a5663","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":83,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"e3f91a88-7503-43b7-80ce-09c183aa7c4c","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":83,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"8608f063-2a31-49af-b969-61c2543c5ce5","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":83,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"d91a9de5-41cc-47d3-994c-52aa4b0bfa3a","block_type":"box","text":"carried out simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":83,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"12a9b208-675a-48a6-b38d-24708693cfda","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":83,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"d815a9d2-0a30-4c1f-84f1-22f36dc67028","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":83,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"f218a81a-a66f-4cd3-81d5-86190c9698ca","block_type":"box","text":"i.e.","page_number":83,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"9ce940bc-03d5-456c-a8f4-434f20d3a925","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":83,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"7a5ae7e1-4ad7-4029-985f-4a189f9bc20e","block_type":"box","text":"eligible foreign investors through Bond Connect will be registered in the name of CMU, which will hold such bonds as","page_number":83,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"9c747a3d-f54c-4c3a-a257-f4b289926a06","block_type":"box","text":"a nominee owner. Therefore, a Fund will be exposed to custody risks with respect to CMU. In the remote event of a","page_number":83,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"cba46aa2-e8e7-4824-9348-f220fe448223","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":83,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"9c0d66f8-5187-4a07-8b62-4ddc990beecc","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":83,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"74e9f5e8-7e41-4c31-93b1-16a5a777055f","block_type":"box","text":"delay in the recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":83,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"c4887010-6e9f-4123-aa2c-2e026612d944","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":83,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"1871b47f-6be1-4659-bcdf-8638c5f39eb5","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":83,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"ddafa49e-0191-45c5-af57-52a06c78b485","block_type":"box","text":"par ties.","page_number":83,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"dde98930-e0df-4377-954e-596232fe7ff7","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China Interbank Bond","page_number":83,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"6ac8f694-7383-46e2-a965-44883247b121","block_type":"box","text":"Market through CMU as nominee is not well-defined under PRC law. There is a lack of a clear definition of, and","page_number":83,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"a3f56dac-8933-48fc-a325-6c9df5ba2bbb","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":83,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"fe9d3ee9-656c-49ca-abd9-fb0e6c5e79fa","block_type":"box","text":"II-45","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bac60336-0168-4908-8bb9-3e7f392dfe89","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":83,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c62d43da-e31b-4a3b-994f-a3025a4028c7","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":84,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"27d3d33d-b84c-4c2e-8c39-9b8017ad937a","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":84,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"38a9309a-81b3-420d-8c5b-990a4d1cdfde","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":84,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"5000dbb7-f9d3-41f9-989a-fc145f8ad5f6","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":84,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"ce9d8340-5cdc-42d4-a299-b39b10a3f598","block_type":"box","text":"such market is therefore subject to liquidity and volatility risks. The bid-ask spreads of the prices of such securities","page_number":84,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"ee09c961-8f33-47a9-9f8c-7dd4ecc68188","block_type":"box","text":"may be large, and a Fund may therefore incur significant costs and may suffer losses when selling such investments.","page_number":84,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"44280adc-c813-4050-a604-9e65ead2f7b1","block_type":"box","text":"The bonds traded in the China Interbank Bond Market may be difficult or impossible to sell, which may impact a","page_number":84,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"366f30b5-d00a-46c2-8d99-d6aa663ca778","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":84,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"6712b48e-f640-4cb6-8c5d-914c5a93284a","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":84,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"181c0eaf-9691-44e0-8b93-7d08ff10c3d0","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":84,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"ee5101d7-f613-4e3f-ae81-f0f20e9a56b9","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":84,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"82e2f873-3186-417a-947d-572d7d9dc632","block_type":"box","text":"systems of China and Hong Kong differ significantly and issues may arise based on these differences. In the event","page_number":84,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"867725dc-52f0-43ba-a3b0-bfba9117f370","block_type":"box","text":"that the relevant authorities suspend account opening or trading on the China Interbank Bond Market, a Fund’s ability","page_number":84,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"eb674969-0f01-4b19-8a6a-2855816be3a8","block_type":"box","text":"to invest in the China Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability","page_number":84,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"511e5949-3723-49f2-9562-228ab2f2e637","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":84,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"2129ebf0-8e91-44dc-920a-5a864887fe6b","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":84,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"75ccb5e0-02ac-4f32-b9e1-21aa8d88a52f","block_type":"box","text":"acquire or dispose of bonds through Bond Connect in a timely manner, which could adversely affect the Fund’s","page_number":84,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"68761bcf-be54-42e2-bc44-2423129f9bea","block_type":"box","text":"per formance.","page_number":84,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"0cb3a16c-7295-41bc-ae71-b13eb3424807","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":84,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"685c8ad6-cb12-4b25-a7d6-49f80c64fcf6","block_type":"box","text":"There is no assurance that such systems will function properly or will continue to be adapted to changes and","page_number":84,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"d2bb0202-f6c4-45f7-9a34-b25fac8f773a","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":84,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"ed7cae70-fec4-41bb-aed7-1ada0da37c70","block_type":"box","text":"Connect may be disrupted. A Fund’s ability to trade through Bond Connect (and hence to pursue its investment","page_number":84,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"88bddbb8-366f-43c3-9bd9-6e4c0bb465b3","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":84,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"8f782d12-a3dd-4128-84c1-dac07c6adac6","block_type":"box","text":"through Bond Connect, it may be subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":84,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"c0abda29-ed04-4744-a762-7d611e29fb61","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":84,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"cac90943-a980-475a-8f74-d665319e61a4","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":84,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"fd0655b6-3528-4948-bf6c-e010795dc380","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":84,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"780d96ad-ed55-4396-8557-ac76d6f33d49","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":84,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"320bbff6-9743-4667-9c7a-f28ce01bf5d9","block_type":"box","text":".","page_number":84,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"717fed26-3718-45c9-857a-a3a0f9d346da","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":84,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"6361f038-c824-4ae5-85e9-f1bdb8eabe1d","block_type":"box","text":"interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is reduced under an","page_number":84,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"e00fc98d-9750-4ada-999c-300fd4790f51","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":84,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"4d57bcf3-3502-4907-8d62-bd85aab6ebc9","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":84,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"72050798-3ecc-4e13-9d53-a14d69b23eaf","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"f7dc3be7-1870-47bf-9170-bc93d0a6ac5f","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":84,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"dbb429c6-d2da-4e9f-9618-73effeb6748a","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":84,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"2979d8e5-e7a5-411d-a95c-2e444d5b873d","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":84,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"354e3e6b-c8e1-46b7-be4a-fa0fa98b53a6","block_type":"box","text":"(“RQFIIs”) from tax on capital gains derived from the trading of shares and other equity interest investments on or","page_number":84,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"e6e6d772-054e-4a8c-ac94-8a732a34117f","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":84,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"4f0948f2-1542-4752-a27f-cda1bcd657d4","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":84,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"e7944d18-1943-4e89-b6e4-45541455c58e","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":84,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"574a12a9-81a0-4b08-b202-3b1afc021cdf","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":84,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"a213248d-cc55-476f-9e29-210927344c91","block_type":"box","text":"temporary exemptions is not stated in the circulars and is subject to termination by the PRC tax authorities with or","page_number":84,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"06a05a38-0049-4c56-a637-7e375efad446","block_type":"box","text":"without notice.","page_number":84,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"0ecb5306-ad52-4b6b-8d25-d25322d38538","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":84,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"947c33f5-2fee-451b-8fb1-4f545821b364","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":84,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"36c278a3-da88-4498-b73e-4d55c50cc5e1","block_type":"box","text":"the PRC bond market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA","page_number":84,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"625f7215-f47b-4359-b380-5326fd7fe605","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":84,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"aa7ac182-69d4-4e82-bec2-715ef27c380d","block_type":"box","text":"January 15, 2026, it was announced via Public Notice No. 5 of 2026 that the exemption was extended through","page_number":84,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"c90a3391-78ba-49b9-bf53-4bf1dbf2d751","block_type":"box","text":"December 31, 2027.","page_number":84,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"e17438f9-372b-46e5-b675-112e1e5b938d","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":84,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"dcce05b4-1c16-494f-94d4-8167fa978d13","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":84,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"88e32ffa-32f2-4e05-8313-e5055f57cd72","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":84,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"5ae64fff-aeec-4f8e-a9e3-b0ef50c344bd","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"689acc63-9dfa-431d-9600-b0268ea69872","block_type":"box","text":"II-46","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ae55be80-26e6-4365-acc4-a7befae5be8b","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":84,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"8e84b26c-b125-49f7-b754-8009a0973b25","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares traded on the","page_number":85,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"26d6c802-d66e-43f6-a79a-8a3e781c3fa6","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":85,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"bd4e0765-0f7e-4b32-8a13-bf0c41c4e0fc","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":85,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"3c0f0fbd-7921-4bb1-9b6d-0dc69b832199","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":85,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"02c95b0d-85f5-402d-b6f6-70463fb88229","block_type":"box","text":"market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA jointly issued Public","page_number":85,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"7a97b7d7-195d-40f1-a5f3-d15948848abc","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":85,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"985b2a92-3591-4e75-ad97-d8bec9edd2bb","block_type":"box","text":"July 31, 2025, the MoF and STA jointly issued Public Notice No 4 of 2025, stating that VAT will apply with respect to","page_number":85,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"ab31551c-5271-4f43-b01a-815e1d560442","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":85,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"d970841a-2d17-4c62-a531-518ed0c87c88","block_type":"box","text":"August 8, 2025. It is understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption","page_number":85,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"33a44e81-573c-49b9-a2f5-b953ffdf2a18","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":85,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"94343e47-af2d-4e6d-8a29-454322fad27d","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":85,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"e997dd4f-1d94-4665-b4dd-314fd88b2328","block_type":"box","text":"tax authorities may result in a loss which could be material to the Fund. There is a risk the PRC tax authorities may","page_number":85,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"f0161ef2-326a-4273-84aa-8c11f69d12b9","block_type":"box","text":"withdraw the temporary tax exemptions in the future and seek to collect taxes realized on the sale of A-Shares or","page_number":85,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"1814caa7-a832-4dba-8502-fe9728763291","block_type":"box","text":"PRC sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":85,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"410f1f46-f41d-43a5-b54e-95e1b6677faf","block_type":"box","text":"temporary tax exemptions are withdrawn, any taxes may be directly borne by or indirectly passed on to the Fund and","page_number":85,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"53e3004e-de56-4dd9-9641-710b708e64a2","block_type":"box","text":"may result in a substantial impact to its net asset value. As with any net asset value adjustment, investors may be","page_number":85,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"a008b3b4-76f9-45dd-9b72-775774d1ae8c","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":85,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"fb3b09c7-7641-4443-a52a-2483f6a2c015","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":85,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"72de7b77-6d87-41da-b026-becbca10af36","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from time to","page_number":85,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"c089897a-6536-4f48-981b-76c9f0a45922","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":85,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"ada3c26d-d315-448b-a295-97f0509f728d","block_type":"box","text":"the PRC in notifications.","page_number":85,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"8f461102-6f50-45b3-9b7f-2153831ba75c","block_type":"box","text":"Investment in Other Investment Companies.","page_number":85,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"3697cdae-6d48-4758-8762-7a6f04acfab4","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":85,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"60fa0e6d-2789-4712-a896-b5efb01d95fe","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":85,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"1e222c2a-c9df-455b-aefd-378e135c65ff","block_type":"box","text":"market funds and ETFs, which are typically open-end funds or unit investment trusts listed on a stock exchange.","page_number":85,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"42a19b92-1e54-4526-bc8a-089a25686ac7","block_type":"box","text":"Under Section 12(d)(1)(A) of the Investment Company Act, however, a Fund may invest up to 10% of its total assets","page_number":85,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"ea388206-b83f-4479-835a-d07fd916225f","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":85,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"54b5c2a2-22b7-440b-bd75-4d77f8f82186","block_type":"box","text":"12(d)(1)(A) of the Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":85,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"f20aa4e6-292d-4c5c-af8a-42d9c79b6830","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such investment","page_number":85,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"da290bae-67c0-4d2c-8712-50379d131db4","block_type":"box","text":"company and a Fund may not invest in another investment company if such investment would cause more than 5% of","page_number":85,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"3fe87195-3e6b-4cec-a019-14d016ad26ca","block_type":"box","text":"the value of the Fund’s total assets to be invested in securities of such investment company. (These limits do not","page_number":85,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"29aec32c-d504-4f8f-ae5b-879860453546","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":85,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"dc938b5f-0f9b-4b10-90ba-a9019b9cad70","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":85,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"65ef669a-931f-48e3-9310-33ca2e3b0e40","block_type":"box","text":"Act a Fund may not invest in a registered closed-end investment company if such investment would cause the Fund","page_number":85,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"016f19e9-a90d-4846-a70b-e54453850070","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":85,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"7efee2c1-93e2-4ddf-b80a-bfac7f72fd36","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":85,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"c59729a6-67ea-4c7d-a851-173cbf93da83","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":85,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"d7f571ad-4cd2-4937-b902-749f9a5634a1","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":85,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"014b087a-7c8e-4cf5-a77e-e4e90ddeabf5","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":85,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"d0036a9b-56be-4a26-b50c-d1828230db38","block_type":"box","text":"subject to cer tain conditions.","page_number":85,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"9901e0fd-1b38-4ff6-a6a5-177889070c5e","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":85,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"03ccf561-ada2-40a3-88af-19a6c3d41882","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":85,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"ad48cfc4-e352-41c9-8dba-df05c4ba5a0b","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":85,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"7b189ab8-cc12-4900-86db-edf6fa116212","block_type":"box","text":"held by a Fund that trade on an exchange could trade at a discount from NAV, and such discount could increase while","page_number":85,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"6aa105e9-94df-492b-90ac-fe40476ab12c","block_type":"box","text":"the Fund holds the shares. If the market price of shares of an exchange-traded investment company decreases below","page_number":85,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"f79ef0af-281a-4cdb-9d33-1c3725903ee1","block_type":"box","text":"the price that the Fund paid for the shares and the Fund were to sell its shares of such investment company at a","page_number":85,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"26a4f1d0-06fc-464e-a14b-628475fe648f","block_type":"box","text":"time when the market price is lower than the price at which it purchased the shares, the Fund would experience a","page_number":85,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"70a2e4fe-50da-4d8c-9a76-4357ab2f004d","block_type":"box","text":"loss.","page_number":85,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"6d6d6ef4-6fef-431a-93ce-515f79e1b011","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":85,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"7da4438a-2c72-4dd6-99af-74486bd2713c","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":85,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"7c627b44-fffd-4205-b835-fddc9a8082a1","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":85,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"79d31067-cdf1-44bf-8896-f644c906ce2c","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":85,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"b2f14ac2-a1c5-49b2-b7a1-503ffa9e0c91","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":85,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"e7314302-b2d5-497c-95d3-b033ae501b49","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":85,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"6724cfa8-08ee-4a90-b417-e3b339841025","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":85,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"f256965e-0406-4b95-a788-49756309e2d3","block_type":"box","text":"II-47","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"af2005d0-810d-4003-8e24-c6cc52994b07","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":85,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"7383804a-e0d8-42b0-997a-10ea6625b1ff","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":86,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"8a4c2ad0-e0dd-41d6-8ae8-deef0c95e561","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":86,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"fff11a65-f6ba-4e34-8d83-d9e6cc36116b","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":86,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"e00905e3-833b-4c27-bb0c-28ee49b601d2","block_type":"box","text":"assets.","page_number":86,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"e0dfb846-0049-426a-8c90-4928a384e408","block_type":"box","text":"To the extent shares of a Fund are held by another fund, the ability of the Fund itself to purchase other funds","page_number":86,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"12d22f69-b246-464b-be07-e89ad2e6de5a","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":86,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"aa19fa38-c4a0-4319-9628-604c524294ef","block_type":"box","text":"e.g.","page_number":86,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"7af04955-9411-4dbd-afa7-b76bc6670d81","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":86,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"a7a73753-2c4b-4ed5-aba2-b1eae57f919b","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":86,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"02a4d242-aadd-48be-bf01-6d985759f786","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":86,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"018c4b2b-0d6b-43a3-bbfc-6f3dca363f9e","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":86,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"9876c538-f009-4669-909c-1b148fdf9a7a","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":86,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"43d82eb7-cda5-4e4d-b675-e77aa96926f5","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":86,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"991f6d72-ae61-4c77-8137-967bad316117","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":86,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"4031f0b3-4d28-4d35-9e53-e4810a2cf30e","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":86,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"d8e618b6-73aa-4e41-903e-3b4d44467715","block_type":"box","text":"countries.","page_number":86,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"f0c2e99f-31b7-4a20-ac7d-5131371aa8b9","block_type":"box","text":"Issuer Insolvency Risk.","page_number":86,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"de779e31-00ae-40e8-a806-cccdebc1a49e","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":86,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"581ff8c7-1e23-4a40-bfe8-a4727a717395","block_type":"box","text":"a high degree of credit and market risk, which may be heightened during an economic downturn or recession. Should","page_number":86,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"afabdf21-3417-4761-b5e6-a6b89b72bb4e","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":86,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"fad52b7a-25a8-45cf-8fec-5a92ade67740","block_type":"box","text":"restructuring, a wide variety of considerations make an evaluation of the outcome of the Fund’s exposure to the","page_number":86,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"6cb3d751-2a63-4032-897f-74842aa09f76","block_type":"box","text":"issuer uncer tain.","page_number":86,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"8e280a78-875d-42ee-952a-b50a34b0cdde","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":86,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"9b741f7e-1a4e-4460-abe3-2796984c7473","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":86,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"71179040-f821-4bcb-86ca-72f64f638f8d","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":86,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"a9433dda-d294-4076-ad48-5b1daf5fbf67","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":86,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"9ad7d4e4-2e55-4f85-a7c0-7988895da2d7","block_type":"box","text":"in what manner and for what value the obligations evidenced by the securities of the issuer held by the Fund will","page_number":86,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"882bbd17-225a-4424-9a2a-bcce4b32d1bf","block_type":"box","text":"eventually be satisfied.","page_number":86,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"f19cae79-ceb9-481a-aa74-48d51983ae2b","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer held by the","page_number":86,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"f70b2061-6109-40bb-88d8-1da9ac6ddd72","block_type":"box","text":"Fund, there can be no assurance that the securities or other assets received by a Fund in connection with such plan","page_number":86,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"29ed2719-168d-4a05-825f-10845270e960","block_type":"box","text":"of reorganization or restructuring will not have a lower value or income potential than may have been anticipated or","page_number":86,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"56977b78-5964-4cc5-8e53-5ec030c7a4c6","block_type":"box","text":"no value. A Fund may be unable to enforce its claims or rights in any collateral or may have its claims or security","page_number":86,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"a8c9d25a-064c-488e-b9fc-db1391509b98","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":86,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"15892655-b76d-4029-9e07-bfe9dc793bb0","block_type":"box","text":"In addition, amendments to the U.S. Bankruptcy Code or other relevant laws could alter the expected outcome or","page_number":86,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"5bfe16c7-8276-4224-90d6-3a1b582a8194","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":86,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"e6bd35ed-8bcd-437f-ae4f-48cdcfbdaaf6","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be re-characterized or","page_number":86,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"1421ce3b-2a0b-4805-bdb7-f58548fc94af","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":86,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"0244288f-fe65-4c7d-82c0-4e79958a712f","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":86,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"0336b3f9-2725-4064-85b7-66737835d0b9","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":86,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"41d72582-dcc4-465c-a89f-ecfe52689dd0","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":86,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"b5fe83f0-2395-4f54-a3cf-70b64e3a9b41","block_type":"box","text":"volatile than those of other asset classes. Holders of equity securities are subject to more risk than holders of debt","page_number":86,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"18dd34f1-90f8-42e3-8c4e-32cfc5b9a1b9","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":86,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"2f17c64a-32a4-4457-a5d8-59ecf52cf4b7","block_type":"box","text":"value of equity securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":86,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"e941093e-b7f1-42ed-8932-f4a4fd35f5f3","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":86,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"0016e028-b681-4846-8e14-771f98afc63c","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":86,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"bab7796f-361d-436b-9a77-ede4e36f25cf","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":86,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"352af71e-c742-4190-9106-4e6b2180ffdf","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":86,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"392ad07b-c248-4bb0-b270-de23747e3ab1","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":86,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"d2967ced-6e8e-407e-b85c-e2e1b460d876","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":86,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"d0ea223a-2b90-4591-a59c-5cd60826613c","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":86,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"be0e04db-1a6a-4ce6-b792-086362ebb057","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":86,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"c65be6d8-e2dd-4ab1-a0fb-0736becc8c5e","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":86,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"97a7747a-05e6-4b0e-a77c-49b9e1a50035","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":86,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"af26c321-e517-4bc1-8989-f6aa78fe1150","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":86,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"a6fd87d9-babc-42ae-90da-759660068d9d","block_type":"box","text":"issuer held by a Fund, the Fund also may be restricted from disposing such securities for a period of time. If a Fund","page_number":86,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"752c6d4a-e4f9-48ea-a69b-260a0e430d00","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":86,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"f0a4f1ea-b756-424e-96d1-723e04bf5fde","block_type":"box","text":"that assumed generally by an investor.","page_number":86,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"aee10fba-3d8d-497f-9b4f-79c58c4c685c","block_type":"box","text":"II-48","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"220be3c6-4e07-4a5b-9e85-0895e78e530a","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":86,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5781e86b-9663-4afb-86ac-7ea5bb4abd82","block_type":"box","text":"Lease Obligations.","page_number":87,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"dc467e7f-bc1b-4c5b-a173-0da387cea282","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":87,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"e938a0ad-eb43-4887-8c2a-58ecd6a0d146","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":87,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"96fb8e01-8a22-44af-96f7-5f3d321f21fe","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":87,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"5c8e9dac-56ec-4725-aad4-e877e11753bd","block_type":"box","text":"Life Settlement Investments.","page_number":87,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"b6e7677b-048a-4ae6-b3f2-12001aa91c34","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":87,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"db6e6dab-0d5a-45e6-83e6-c4874b1acc3e","block_type":"box","text":"Fund, of existing life insurance contracts for more than their cash surrender value but less than the net benefits to be","page_number":87,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"3f465028-a2eb-41fb-afc4-433fcceb35dd","block_type":"box","text":"paid under the policies. When a Fund acquires such a contract, it pays the policy premiums in return for the expected","page_number":87,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"12cbf449-29dd-4226-b67e-3ca99c943d29","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":87,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"debf2e88-9408-4a32-bd8c-652c7a80f549","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":87,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"93c869e2-6a99-4ea7-a93c-7cd21c110a29","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":87,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"b7535707-6a3f-49e5-9e63-58ae3575c759","block_type":"box","text":"secondary market through life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a","page_number":87,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"67db6208-e5c8-42e6-a29b-98749a4547af","block_type":"box","text":"policy, the Fund may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":87,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"72c738d8-d39d-4888-82e2-576703c525fb","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":87,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"fc36884a-61fe-4476-9914-5e2deac01593","block_type":"box","text":"losses on its investments if there is an inaccurate estimation of the life expectancies of viators. A Fund intends to","page_number":87,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"dd8a28de-3bb2-49b9-b5c2-2f0a9346e1c0","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":87,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"f01e8bf0-36d7-40eb-a55e-6c1c1e910ba7","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":87,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"c385a3d0-3635-41e2-ac1b-843c71bc35df","block_type":"box","text":"addition, it is unclear whether the income from life settlements is qualifying income for purposes of the IRS 90%","page_number":87,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"c2896de8-8cda-405a-8580-a1db9eb239ff","block_type":"box","text":"gross income test a Fund must satisfy each year to qualify as a regulated investment company. A Fund intends to","page_number":87,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"f85ef51e-3c1a-46f0-964f-72f6ef2a26b1","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":87,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"86cdbd0c-ae0c-4c67-abed-99fd9ddae55b","block_type":"box","text":"Liquidity Risk Management.","page_number":87,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"3a968399-9d1d-4924-8aa3-64063e86a8e4","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":87,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"43c6b083-3949-4876-a654-a8f326eb8b94","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":87,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"fb608b9e-4f2d-420e-80f0-8726e1ba1281","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":87,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"6f70a657-84ea-46b7-9870-624761247c65","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":87,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"19742d68-f2e9-47db-bd2d-9c819bce4978","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":87,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"5ff70710-6f03-4aea-bb18-fbea38f42aae","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":87,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"084d1b6a-0200-42b7-89b9-7a66ee19db3f","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":87,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"beed0d19-7e68-425b-ae0d-e5bb85786a70","block_type":"box","text":"“illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund could not meet requests to","page_number":87,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"d6ff69d3-f9c1-43b4-8d81-c7bfcb7e1deb","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":87,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"1ed15be9-59f7-402e-abc9-85016ca34635","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":87,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"174c76c0-dbcf-4527-8219-091556d30430","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":87,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"20096c23-316a-4460-80c3-48e520d22657","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":87,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"7524912f-a251-421b-bc85-26d530aeae79","block_type":"box","text":"Master Limited Partnerships.","page_number":87,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"d33408c5-68da-4a37-bf56-87b33a51fae9","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":87,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"344f57f4-f38d-40cf-90e6-27b5ccac17a1","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":87,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"a8e4d3a8-3eda-43ef-a071-05da3e0dab5a","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":87,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"f92dd04c-1474-4737-9605-f20037c748cb","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":87,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"27a597e2-cd09-4b93-b837-3d63b4c9a6d1","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":87,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"12487c03-3cac-4a21-8344-925f4a2a1bcf","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":87,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"5af291db-9f26-4ec7-8983-b6f5998300d4","block_type":"box","text":"typically owned by a major energy company, an investment fund, the direct management of the MLP or is an entity","page_number":87,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"1908c766-bea9-4fc3-8cd1-4f3b0d4c7f9a","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":87,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"d27a392d-600e-43b6-8601-8d9eade12748","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":87,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"014309d5-9915-45b9-b77c-c77d71e9555e","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.","page_number":87,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"0b0fa239-2f11-4678-a8d8-d8675acba4bb","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":87,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"222d9fdd-1f4d-4a0e-966c-29474140a350","block_type":"box","text":"in the par tnership’s operations and management.","page_number":87,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"2ced38b0-cd4c-4d64-be8e-ba0c5c8282ad","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":87,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"bf267bc3-1309-4ec5-9de5-9828b3ad714f","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":87,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"e76e47b1-f250-4521-b0b1-dfb4be9b5f28","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":87,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"6e08c1fb-daa2-459e-89e4-9165567cf562","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":87,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"72c07e28-113f-4bce-ab5c-4620805b4355","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":87,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"8dce4ba8-a51d-4e6d-8931-d289130f5b5e","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":87,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"4d7738d0-0895-4c14-b11a-8de4b846cadd","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":87,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"b63ebc98-a188-4515-b44d-7d09461ae86e","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":87,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"7aad02ad-1eb6-4f4e-94a1-39fbe0d89c3a","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":87,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"05963b74-b571-4f4c-bc6f-9e66a160ab2a","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":87,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"dae1bf35-0bce-4757-988e-afd8904ec752","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":87,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"244b8814-cf05-4bcd-b1bb-873c77795f7d","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":87,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"913f91e9-46cc-4981-b7cc-f9d2f97aec95","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":87,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"9e9b910b-1586-4db1-8b51-371788c30e66","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":87,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"3345c166-7656-4943-8eef-813e2bef630f","block_type":"box","text":"II-49","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c06c83d2-627d-446e-9fb0-42073db7ecfe","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":87,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"2b408a66-f401-48e0-818e-087c1f445617","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":88,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"2a989e58-375f-4a1d-bddf-6e895f19b566","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":88,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"4c7d86da-b827-4275-b70b-7182147cb00b","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":88,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"8b6215b3-f8b7-4a8e-8185-9fe16fdd74e9","block_type":"box","text":"common stock of a corporation, owners of common units have limited voting rights and have no ability to annually","page_number":88,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"0890c4c2-9a5b-4492-840f-38f570935004","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":88,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"4caf7253-baed-414c-97d1-b0e3bd5d01f1","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":88,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"bdcff746-54fa-43b3-92aa-4f48280dd454","block_type":"box","text":"Merger Transaction Risk.","page_number":88,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"3bbe0b65-b8e5-463d-9288-0770af9f7ef3","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":88,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"e1bbd166-3790-4321-929e-834e4f16cbc0","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":88,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"17aeadf8-4a01-44a6-b559-84367ad6ce56","block_type":"box","text":"in cash, stock of the acquiring company or a combination of both) in excess of the purchase price paid by the Fund","page_number":88,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"acc186a5-fa16-4879-be56-f4f88cd2f1fa","block_type":"box","text":"for the target company’s stock. However, a Fund is subject to the risk that the merger transaction may be canceled,","page_number":88,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"9680fe4c-2eb4-478c-bac3-b79bd0f987a6","block_type":"box","text":"delayed or restructured, in which case a Fund’s holding of the target company’s stock may not result in any profit for","page_number":88,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"9b46372f-0297-4e05-abe8-e69e05b59989","block_type":"box","text":"the Fund and may lose significant value.","page_number":88,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"72877379-0d47-4ca7-8af0-8a13e36b475f","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":88,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"bab4d3e7-8451-4bda-9c65-319cdd7a6e36","block_type":"box","text":"Cer tain","page_number":88,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"06bbce64-eb86-40be-8e29-2eee152ad1da","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":88,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"41a048ec-36cb-40e9-9226-7cfd56d90b33","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":88,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"8a9f82a9-b1b0-40f2-b880-d34fc0d62d33","block_type":"box","text":"having total assets at the time of purchase in excess of $1 billion. These obligations may be general obligations of","page_number":88,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"75c57ebb-1384-4b31-9d3b-967b9ea645ff","block_type":"box","text":"the parent bank or may be limited to the issuing branch or subsidiary by the terms of a specific obligation or by","page_number":88,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"23a6a429-aae0-4330-a5a6-977323074f4d","block_type":"box","text":"government regulation. The assets of a bank or savings institution will be deemed to include the assets of its","page_number":88,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"beb336ca-c406-42da-a328-2cba84918d07","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":88,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"6f25af58-fcb8-48f4-a358-87cc52c4d84a","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":88,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"2e800e18-8bf6-426c-a4b9-38036f0df106","block_type":"box","text":"branches of domestic banks.","page_number":88,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"49d10f3b-d4f0-4314-909e-e9afff449f22","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":88,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"804988eb-3d20-4e89-8b32-33fce262de2c","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":88,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"cde25a19-97f4-498f-8ea7-34415c02b252","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":88,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"4a0373f3-5c9b-4e18-8394-ee8fd8417179","block_type":"box","text":"paper of a foreign issuer.","page_number":88,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"8703055c-c8fd-4678-9f4e-d8f342f498d6","block_type":"box","text":"Money Market Securities.","page_number":88,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"d97d7fd8-1d56-4f4d-8adc-c42c137b8ce6","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":88,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"40bd49d1-c718-4d4c-9c99-d5282a77c68b","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":88,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"5483b8a7-32ec-4b71-847e-307171eac32d","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":88,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"819962e2-4b0c-4483-94f3-ba09666b2b09","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":88,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"3a66747b-ef21-418d-8138-6bc027227617","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":88,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"64bd83d6-7098-4d2d-8e33-5952674fad22","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":88,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"cc73dd19-081d-461c-8d3c-6f432e967d7a","block_type":"box","text":"other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2 or higher by Moody’s or F-2 or higher","page_number":88,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"b5a355d1-dc47-4ba8-bc9c-e2a10cf0d0a7","block_type":"box","text":"by Fitch, as well as high quality corporate bonds rated (at the time of purchase) A or higher by those rating","page_number":88,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"5a35b585-f490-4332-a7cd-f52ba7a41806","block_type":"box","text":"agencies;","page_number":88,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"c0f9d198-f64a-4ad5-82a6-e6976bbddd34","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":88,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"5f8f0ece-f6ba-4ffc-87ff-7c5a92f28633","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":88,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"3d2cec61-fac0-43b3-a3fd-9622ca05f14b","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":88,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"217b2448-61bf-41ee-8215-d01ee84ad6b1","block_type":"box","text":"obligations and credit card receivables);","page_number":88,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"11e72513-d6ad-4200-87b2-d83ad69f146f","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its agencies or","page_number":88,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"45798c8d-a7f1-4099-9434-e6e8210602ae","block_type":"box","text":"authorities and related custodial receipts;","page_number":88,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"e3d04025-0dc6-4c4a-be54-f89a66ece566","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":88,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"7d7b4724-23ca-424d-b93b-7d6cedfa882e","block_type":"box","text":"agencies or authorities;","page_number":88,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"78f6c35e-6959-4cfa-b4ea-1c7a7fb7bb4c","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":88,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"6fe76d96-757f-4c8b-a71b-2bff7d67061e","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":88,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"51c05a97-ef83-434a-88e1-aa24b9d0730e","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":88,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"56ed4b18-167a-43c3-8ecd-1ad40e5251d5","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":88,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"7e204c1e-d8cc-4c04-8934-c146af3c2e76","block_type":"box","text":"one of its agencies or authorities or which otherwise depend directly or indirectly on the credit of the United","page_number":88,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"807e693d-4a3d-40e1-aa4c-665a16efee96","block_type":"box","text":"States;","page_number":88,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"2faefe5d-526d-43b5-9436-6a1f26dbaa1a","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or higher by Moody’s,","page_number":88,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"90057616-71ef-4687-a442-ec0423af8651","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":88,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"00222c42-3586-44b1-85ac-cf1e729c0ee9","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by Moody’s, A-2 or higher by","page_number":88,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"19cc7b53-4a99-464b-ab52-13240c7d1a1a","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":88,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"c0ecdb60-cd6b-4898-832b-ec53ef853f19","block_type":"box","text":"II-50","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b2619d29-5f8b-46bb-ad47-28af1f678d35","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":88,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"4dc16bf7-d1f7-4f75-833c-e6a51ed5337b","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":89,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"add53fc4-9d39-4bcd-be6f-d1dd82c0ffeb","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":89,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"79fa9b8b-f04d-4fe9-823c-b18666b419f4","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":89,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"20b17baf-a1cf-474e-bb5c-1655976c3ebc","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S. Government or an","page_number":89,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"871f1314-959b-465e-b639-2d39c61c8904","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":89,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"96266a7e-0c52-48f1-b5a9-26693bd776c2","block_type":"box","text":"States.","page_number":89,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"7469c0de-b10a-4382-b419-4bc4c75fe55a","block_type":"box","text":"Mortgage-Related Securities.","page_number":89,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"962011fe-f9a9-423c-ba42-ba2b3db2c648","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":89,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"47af2cb7-0318-46b4-b6cc-0be3f44f8b8d","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":89,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"d300435a-fac5-4268-a690-98d5364302df","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":89,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"3f1888e5-82ac-4cff-ac11-4fb790475130","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":89,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"0f66cacb-0d62-4ff4-a132-861cab5881ee","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":89,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"01c0cbd2-6b26-4b8a-87b2-65c257b5dab6","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":89,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"b2b84534-c974-455b-8c2b-2fa8968fae95","block_type":"box","text":"maturity or specified call dates.","page_number":89,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"6507324b-b3c9-4b47-ba0d-ff7c69038b70","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":89,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"8fd1b9e5-9ea0-4e4a-968c-36f81b27c130","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":89,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"19038a81-7cf5-4d20-aaa5-98c8e4ac7384","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":89,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"f0302509-c236-454c-9c39-bdb9aaeeb511","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":89,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"02ed51f4-5cfe-45d7-91c3-44825c872990","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":89,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"db19500c-9a9a-4f43-b5dd-71268db1a7f4","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":89,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"f9cfa767-1e63-45e7-84f7-794313eaa8c1","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":89,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"1fa90451-b75b-47de-ae62-c56ec9d376a7","block_type":"box","text":"in prevailing interest rates, and, like other fixed income investments, the ability of a Fund to utilize these instruments","page_number":89,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"241a8fb3-1200-4d0a-b9ef-afd225df6aa2","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":89,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"9a2327b8-4a37-48c1-80de-f3b16cb2aee8","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":89,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"7850a4a8-2976-4fdf-a250-c720c0cb356a","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":89,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"055755e6-4c58-4f82-9edd-a8b351869f18","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":89,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"fd556fad-86e3-4c34-a108-25aab5e3f1ae","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":89,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"6c755e5f-7e8b-4b0f-817f-ece950d59127","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of prepayment of the","page_number":89,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"4a392016-147b-4629-ae95-ebb574902144","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":89,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"69f29fd4-df49-4bec-833f-347e8ef50b7a","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":89,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"65858ef0-aa34-40b5-b603-608392928873","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":89,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"b1ae556f-4745-4e10-9587-1958ad7e7478","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":89,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"7ba75463-afa6-4b35-902b-c8a1a42e1f25","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":89,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"3824d101-d4ca-46c5-b4f4-3a922da0bab6","block_type":"box","text":"principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such securities at a","page_number":89,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"0380bed7-a039-4226-8e15-9d371e473ee6","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":89,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"db85c22d-8504-4891-be1c-a0376fbc9375","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":89,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"5011fd5c-39ab-4d9a-97fc-136727b22013","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":89,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"3d74c5a1-c2eb-465d-b976-d9a9c6a1e496","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":89,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"d666bdb4-56be-4622-ae07-d31ead7e755a","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":89,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"2aa0470b-dbdc-4b11-aabd-3fc859d71c3a","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":89,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"6f43026c-f672-4d9f-b2c7-be934e46b559","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":89,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"92b93858-1a8a-4180-b77b-e44830c8f0bc","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":89,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"bf0c1728-d763-4622-a561-130c29a37afb","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":89,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"41a87223-b50e-4b09-8f90-c5852128d64a","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":89,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"70d2f556-789a-4853-b5fc-7922569ca227","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":89,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"c9570a21-99de-4772-be56-dd2099ff07cc","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":89,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"351c3293-fffd-458f-8f3f-fe9f01b186d2","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":89,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"1b0fdeb8-14cf-4dfa-bd3b-abe8a3445581","block_type":"box","text":"securities issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities; and (3) those","page_number":89,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"15a84a2b-3e33-4fdc-b029-123519e1f01e","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":89,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"be9ada18-0d4d-4fa9-a9ce-30b01773e83f","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":89,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"9ea20993-7cef-4250-8a14-ff3c6fe1f208","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":89,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"5ade852a-44e6-4e1e-889f-b04db7562913","block_type":"box","text":"Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely","page_number":89,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"02ee83c2-9668-42aa-af64-905bf91bfd2d","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":89,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"e6928f20-fa25-4c0b-9c72-61dabc88c2e6","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":89,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"4370adff-282e-4c8e-b8d7-593a45836953","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":89,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"8191af3c-8b28-4564-9617-370d07a42ac5","block_type":"box","text":"II-51","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9d185b36-6c65-4b29-a513-7d1ec416436f","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":89,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"dfa72e0b-b5b2-4aee-87e1-e45f2038701f","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":90,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"aa7195be-e7dc-47e2-adae-6e2afd02da06","block_type":"box","text":"payment of principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the United","page_number":90,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"e99b5f34-6fe9-4836-a4da-d26b43e336b0","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":90,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"db1ed79a-7867-41bf-8f5c-7d1d02da997e","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":90,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"253dcce8-05b2-4369-afd4-de4b781127d2","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":90,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"d0deacb8-6656-4e9d-a6c4-cd26ef27effa","block_type":"box","text":"guaranteed as to timely payment of principal and interest by Fannie Mae. They are not backed by or entitled to the full","page_number":90,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"601bc323-13e4-47f9-8e2c-6fd2913805ce","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":90,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"ea6e6111-b21d-4feb-b1fd-f7bb2bf851ca","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":90,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"d395b11f-a58e-42a1-8c67-bd241d7effd9","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":90,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"23c2e89a-9745-430e-970c-95e2e876cdbc","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":90,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"729f0577-feab-4c87-821e-e67e496545b7","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":90,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"99c79763-4222-4d9c-b137-48cb46f5c21f","block_type":"box","text":"Home Loan Banks and do not constitute a debt or obligation of the United States or of any Federal Home Loan Bank.","page_number":90,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"181088d7-0337-4c65-a12d-eecfeeb99c94","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":90,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"1c8798b0-057e-4450-bf7f-666af0cf53c4","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":90,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"c44021d5-83cb-40b4-b8a9-a79bba1ddc01","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":90,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"2cac5ed0-e086-4972-acd8-fbe57fd7444a","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":90,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"69c4df5f-ec1d-4ec7-8ae4-0f5e03748815","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":90,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"8a04a5c7-bb48-407e-81d1-412cda85ce4d","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":90,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"f36d6b82-5f12-4dc1-83d1-f14b6af03147","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":90,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"d9195a32-5840-4f4d-bb50-fe1ca909d057","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":90,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"0bb7c672-bb41-4c94-a522-a45e22a4b240","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":90,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"3a67f285-4bf3-4b81-8892-d57d8bc48c41","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":90,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"da0e176f-e3da-4f10-b3a0-b4b99aba8b73","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":90,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"6a837223-d76f-4a54-88f1-4bbd33a95a98","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":90,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"ea09d4b9-0aeb-4892-a7e9-b0fe094f9207","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":90,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"55ffccec-2c2e-4ba6-aa20-0b1d75ef0561","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":90,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"c27eb599-dfd5-416d-bd0f-f80402c3a3c5","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":90,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"69294163-2bbd-474a-b89a-cf4e88b54bba","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":90,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"6d157c86-989c-40ad-9176-04285b000aad","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":90,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"eb269247-ad37-4fc2-a849-886fefca3a09","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":90,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"1f00db70-8ebe-4a62-8000-a92e5625de8b","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":90,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"d3b8fa59-e2e7-4e82-8107-e01ba4a06ab2","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":90,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"4908780d-3ef0-4b56-a8bb-81afcbb8be91","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":90,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"87922bb7-d96e-4ae7-a504-d4ccd6fe0040","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":90,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"a4f9cbfa-2f85-4d6b-885c-6bc15f5e7fe1","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":90,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"b6ad5dc1-0d4e-47d3-819a-eadce511a33e","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":90,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"a14b700a-a8d9-4d23-b9a9-a0b5f97e831a","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":90,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"70c05151-cb23-4e58-99a1-a97cf6d55863","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":90,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"e05495de-65e8-47b8-96b0-7cfd392c5d49","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":90,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"776a1c1b-6e4b-440a-8879-cb10ffe21aac","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":90,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"4f0df761-3049-4e91-915e-86be34443656","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":90,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"1154fb2d-b66a-404b-9e0c-3543eca4fbdb","block_type":"box","text":"loans. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to","page_number":90,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"7178da9e-d21c-4fc1-ad42-25aaac3af73e","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":90,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"13937ec4-2a85-42e2-a76e-746f57d5aa5b","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":90,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"943de740-c0d3-46f2-95ec-2c24dec612da","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":90,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"7f434af2-25af-4598-af59-2a54bd000bef","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":90,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"48576144-5682-40c9-897b-e491ffff2a23","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":90,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"3e804730-6ff1-433f-9f90-67ad27399a8f","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":90,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"311bb72d-33b3-47bc-8648-84e335947ae7","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":90,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"3b4681c3-68ab-4080-a000-32028fd30636","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":90,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"63a0bcf7-31c1-4271-b755-f6a1cdf5b3a3","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":90,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"73594bb2-374f-45a1-ac45-c140fc3b613c","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":90,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"b7ced8f9-ef88-455d-a1f2-4f343ddc1c82","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":90,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"ac3b6d3c-ca98-45a7-aa56-f1504548a940","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":90,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"1673afa2-aef9-4555-98aa-1ca68a55bef3","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":90,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"d93bbfda-55c9-4b07-8af3-54b99db4842a","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":90,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"d858f5f6-da34-4010-b3b3-a39aafc73742","block_type":"box","text":"II-52","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ead8846f-d69f-47f6-a895-67dfd11961ba","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":90,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"ca5d53ac-7ecc-4602-a095-0633745c0589","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":91,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"3f61e017-ccd6-4482-9b3c-ababe8b912a3","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":91,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"c8f377ab-1202-4071-b79a-8dd3f2da3434","block_type":"box","text":"by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer of a series of CMOs may elect to be treated as a Real Estate","page_number":91,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"970586d2-3aea-42b8-abb0-8763bbb7f5dc","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":91,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"48fcdc43-922f-43a3-ba25-74b83c9f9b89","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":91,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"2e1da5f2-fc54-4373-b8a4-4cdc23518eb2","block_type":"box","text":"or fixed interest rate, and bearing a different stated maturity date and each must be fully retired no later than its final","page_number":91,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"baf16743-d452-4b6c-b581-e6156d0c6f47","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":91,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"74d75cd8-2174-4e7b-a759-f53b7df97d93","block_type":"box","text":"is ordinarily unrelated to the stated maturity date. CMOs often provide for a modified form of call protection through a","page_number":91,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"317f3533-86a9-465f-bdcb-c0fa653ef85b","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":91,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"954e24b1-18d4-44e9-a1d9-45483cd863d6","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":91,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"89530826-cdf6-423f-b858-cc93fb94e31e","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":91,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"2fa888e3-3b1d-4058-871f-20e419b40fd2","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":91,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"ca323a0a-1649-431a-81db-1ad9a87c9684","block_type":"box","text":"of principal because of the sequential payments.","page_number":91,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"d60ae7ac-55b8-46c1-8404-8920064b2a9d","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":91,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"64f8698f-27ae-4cf8-806a-1afa0d5e14c1","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":91,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"7bb50221-21fc-4336-9efb-eb941dfe90a9","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":91,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"2064fb92-51be-48a0-8abf-2cd9e795dcdb","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":91,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"fff642a1-f9cb-481a-9ae9-8322c03281d6","block_type":"box","text":"on the rule, are also not subject to the limitation of the Investment Company Act on acquiring interests in other","page_number":91,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"eb558029-a192-4072-b754-08904f2c6839","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":91,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"d085dbca-e5ff-4952-a36f-c118f87e81f2","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":91,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"a8620ced-b8dd-4e0f-835a-da2d0624f14f","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":91,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"ceeb6c21-4aaa-49ae-b859-408e06bf5a42","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":91,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"f70601cb-53fe-478d-8b12-271bd8191e71","block_type":"box","text":"To the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above requirements, the Fund","page_number":91,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"020a1b38-7134-4193-844a-a5ed6676a4f2","block_type":"box","text":"may not invest more than 10% of its assets in all such entities and may not acquire more than 3% of the voting","page_number":91,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"41309ce0-b7a8-4ca6-b522-06f4d01998df","block_type":"box","text":"securities of any single such entity.","page_number":91,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"1982bc88-45a9-4801-a50c-cfc20f32202f","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating rate CMOs.","page_number":91,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"4fb0704a-9e95-483c-993e-c3be17afff0f","block_type":"box","text":"Parallel pay CMOs are structured to provide payments of principal on each payment date to more than one class,","page_number":91,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"f5cb3fc8-e5aa-4781-b25b-f0d431fda11a","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":91,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"cc326baf-c191-4585-8a10-7197a1c7dd58","block_type":"box","text":"calculating the final distribution date of each class. Sequential pay CMOs generally pay principal to only one class at","page_number":91,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"c8d892e5-7019-4424-abac-2691f250469c","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":91,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"2611961e-9517-424a-b1e1-28a9126b845d","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":91,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"e11b2168-f74b-4013-9cd3-a70e65d2f32e","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":91,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"135c7595-aa50-4a8a-bea3-7aa9005e5a9f","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":91,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"6285ec27-fe3e-44f7-90b2-ee5d9d8b8acd","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":91,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"a7e8a613-2d46-429b-b346-da31da8e7880","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":91,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"70cdd101-add1-4ca2-ad6e-a533b3810873","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":91,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"cc529dfd-e355-46d5-8811-cca774528971","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":91,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"68563f92-7489-4bcf-9614-8204373065cc","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":91,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"cb5f4a96-9261-4852-a90a-f1c5784614eb","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":91,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"b602be21-af50-43ef-90e1-6f8141293d05","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":91,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"ab13fdaa-ec2a-4cb1-88a4-0284899029c8","block_type":"box","text":"the final distribution date of each class of PAC. In order to create PAC tranches, one or more tranches generally must","page_number":91,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"66ded616-4595-45bf-8a9f-61d2b3907039","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":91,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"b09c4232-a4f5-4252-ad9e-cb625ee5c28b","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":91,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"480577ee-9824-46f7-b8e0-e93c72fd9708","block_type":"box","text":"classes.","page_number":91,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"7035d836-5c21-400b-836b-083271379f5e","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each payment","page_number":91,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"40701b25-241c-4fe2-aecb-36d0696b7f75","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":91,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"42e41075-2232-4b86-97d9-bc1766bf08e1","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":91,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"5b26ed22-d9ec-44d2-a211-e91a15215d07","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":91,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"df8aaba9-ae34-45d5-a256-8e51c20eb2e8","block_type":"box","text":"not both. TACs thus provide more cash flow stability than a regular sequential paying class, but less than a PAC. TACs","page_number":91,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"03d895e0-c211-4607-920e-58ff6d36d319","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":91,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"010ab89d-c923-4d8b-9b67-6104329b3c5f","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":91,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"efac9d76-d763-40a5-850f-5c02a996ff5b","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":91,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"d93207bb-4710-4ce9-82c7-0f2be2d4d9e3","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":91,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"7117f94c-fcec-4354-be8f-9621cd18e9c8","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":91,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"e93f37d0-ca1d-4991-bfcc-6a3a045c765d","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":91,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"6510d66a-41f3-478e-843c-ea1033442f88","block_type":"box","text":"to a designated benchmark index.","page_number":91,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"61bf860c-d456-4048-967b-ff842d2a8ce3","block_type":"box","text":"II-53","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ce8c5370-c6b8-4e72-853b-20cb12a53a2f","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":91,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"b9dee9fc-265f-432d-a76a-99dc4fb0417a","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":92,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"77e8bb25-a103-4c0e-ae36-f327a1229aaa","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":92,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"b41de5bc-f65a-4c62-b58c-d6dae7421dfc","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":92,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"0f12d0d3-62b5-400f-bd88-f09562992c39","block_type":"box","text":"more rapidly to levels above that of the ARM’s maximum rate, the ARM’s coupon may represent a below market rate","page_number":92,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"5a9ed3c0-5007-4cf5-974c-eccf4c1b5d84","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":92,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"391af632-a409-485a-8284-b1c00aced114","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":92,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"3770e1ac-7790-4579-894c-a195e37fbd15","block_type":"box","text":"payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is added to the principal","page_number":92,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"273879e3-b7fa-4844-8e24-5044a7eef005","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":92,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"9a058be4-d8b1-4b00-97ce-63a2d583d6a2","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":92,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"53cec1c2-a533-432d-86f7-fb27e11f7a9b","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":92,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"aeba14b7-2698-496b-b623-5cc122f886e6","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":92,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"1b85c665-defb-4645-b920-908065078933","block_type":"box","text":"CMO Residuals.","page_number":92,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"63c74af8-da2e-4342-95e5-1021ead3ff29","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":92,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"e237a86a-3724-4143-9396-f5d9a28adad2","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":92,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"5df98d7f-e925-4fd3-85a4-957900657f68","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":92,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"859a8ec1-b2f4-4710-8a7f-b6898f3c9ac5","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":92,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"56789407-93f7-4c4c-8a82-2f16e866794b","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":92,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"4f49f5fd-2d95-4333-bf76-50bf58598f1d","block_type":"box","text":"any management fees of the issuer. The residual in a CMO structure generally represents the interest in any excess","page_number":92,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"2020a9a7-45a0-43f4-af80-36c62bc91540","block_type":"box","text":"cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the","page_number":92,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"c21386f0-c813-4949-83e5-e3cd7ffc7c62","block_type":"box","text":"related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a","page_number":92,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"3a151d8d-2123-4d08-9159-5595009e149f","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":92,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"869a2308-ae45-4861-b0e9-5ef9d09a4122","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":92,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"b6ba3f8d-0638-449e-abfd-013ea1faf9d6","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":92,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"daaf4786-f0d0-400c-8b1a-cc9ad2c04cc4","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":92,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"6577473d-1995-4a1f-ae47-4913a9aba0a2","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to","page_number":92,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"039ac988-6bf7-421a-b0e4-21d29753c5c1","block_type":"box","text":"maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which","page_number":92,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"a18195fb-4a48-4d13-94a3-79d5f4e5f9ff","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":92,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"2689b9c0-9bde-4991-9ca2-cadab0477f29","block_type":"box","text":"a CMO residual.","page_number":92,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"aca87fb6-056c-4498-8dc3-2ad3c2076dc1","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":92,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"1943eb1c-8bba-4728-8e11-6c8fb0d40cba","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":92,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"510f8168-0db3-4f36-8d59-b661a616cfc6","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":92,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"bed3c9fa-3f3c-47e2-9abd-0c84aa13fcfd","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":92,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"e51409d2-d419-4b0a-b64b-99a27c66f38f","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":92,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"b3b62720-41f7-49b4-8a1b-2ec93793d507","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":92,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"375892b3-00bc-4dd4-a1fe-a9c085fd243e","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":92,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"d234be67-bacb-4650-b3bf-e8e2b6aa771d","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":92,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"69a96bcc-af61-43ed-a7c7-4344e6b97415","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":92,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"f37bd2f8-1824-4199-8f14-54e57a2305f8","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":92,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"22f4e61f-6c14-4950-9da6-9881c48b555f","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":92,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"b5c0b084-2b34-48cc-9618-b4866e78a21a","block_type":"box","text":"principal only or PO class) receives some of the interest and most of the principal from the underlying assets, while","page_number":92,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"55503030-b489-4397-a5c1-206e3fc9615f","block_type":"box","text":"the other class (the interest only or IO class) receives most of the interest and the remainder of the principal. In the","page_number":92,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"a3c521d1-3b31-4cb6-a42d-2b0a55cd6915","block_type":"box","text":"most extreme case, the IO class receives all of the interest, while the PO class receives all of the principal. While a","page_number":92,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"a0502cd3-3aa2-4f62-a1cd-5dcd09f40687","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO class. The yield","page_number":92,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"55e9d574-ef48-4fbc-9fb5-fca681ea94a4","block_type":"box","text":"to maturity of an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the","page_number":92,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"63f6e06f-ecbf-4988-85e4-a6057e157ce6","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":92,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"f3f088c1-ca32-4dac-b06b-752cd34c845b","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":92,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"c897d934-24f5-4c2d-900f-175492a7a561","block_type":"box","text":"experience greater than anticipated payments of principal, a Fund may fail to recoup fully its initial investment in IOs.","page_number":92,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"79407b10-8f57-4156-adb3-2936f648c182","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":92,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"895930b7-2548-417a-83cd-cc0240ed98e4","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":92,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"0e533261-ec6b-4e46-9fc5-9b31b7b16246","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":92,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"c99491e1-69cb-40d2-ab66-29f3b10fa171","block_type":"box","text":"generally will purchase IOs only as a component of so called “synthetic” securities. This means that purchases of IOs","page_number":92,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"72f6aebf-9b5b-44f2-bbb6-dde12445b79a","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":92,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"e8b31823-70af-4fc3-9e8e-8065645f91b8","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":92,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"f0d82871-84ef-4d8d-ae4f-1c96008064b3","block_type":"box","text":"effect on a Fund because of its holdings of IOs should be diminished somewhat because of the increased yield on","page_number":92,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"02a00b10-c752-45eb-973a-b736867cd1f4","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":92,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"5476f990-5d86-4335-be46-83a227db40f1","block_type":"box","text":"Tiered Index Bonds.","page_number":92,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"28577614-a487-43fa-8d4a-3e8346f98523","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":92,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"b85c94b8-9a2c-4dc1-b809-2f44ae7cda88","block_type":"box","text":"index bond is tied to a specified index or market rate. So long as this index or market rate is below a predetermined","page_number":92,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"dea14d4d-2da1-4976-ab42-86b595d28390","block_type":"box","text":"II-54","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"97af2ff7-0453-44b4-a41f-eac28bfbd42e","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":92,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"dba74126-0c76-40ab-86c9-c98d5b793a32","block_type":"box","text":"“strike” rate, the interest rate on the tiered index bond remains fixed. If, however, the specified index or market rate","page_number":93,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"02c89884-f9ba-450b-908f-0c4b1eb92b7c","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":93,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"2a03fc6a-bdf2-4801-9812-cd66c506bfb7","block_type":"box","text":"circumstances, the interest rate on a tiered index bond, like an inverse floater, will move in the opposite direction of","page_number":93,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"7990d439-7dea-4e55-a7b2-aa1fca197de4","block_type":"box","text":"prevailing interest rates, with the result that the price of the tiered index bond may be considerably more volatile than","page_number":93,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"8b7e40dc-6989-47ba-aecc-e714b55e815c","block_type":"box","text":"that of a fixed-rate bond.","page_number":93,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"e112bc28-2934-43f9-a0df-3770f78c4267","block_type":"box","text":"TBA Commitments.","page_number":93,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"0b6ba61c-5bc6-4045-9d25-35fa4e35d120","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":93,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"e450bb98-915a-4f8e-878f-c0f4b85a128b","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":93,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"8741dbd3-f761-4b7f-b674-dc5c4b237ae2","block_type":"box","text":"with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not","page_number":93,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"8659b826-0ef4-4348-8d0c-620eebfc3bf9","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":93,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"f8f77fa3-d48c-40c7-aff8-edac83c90c22","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":93,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"09df3158-8a51-4eb7-abea-63962f1877d9","block_type":"box","text":"price, with payment and delivery on an agreed upon future settlement date (which may be referred to as having a","page_number":93,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"a83d504d-4b57-4a2a-9a2e-e1666154c4a9","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":93,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"029a1916-37cf-4678-95af-2fc18ba2bd06","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":93,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"9202588b-a1d5-4450-9826-d5a85aa598df","block_type":"box","text":"below.","page_number":93,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"ebed4285-bd19-455c-b555-44320e0fcf19","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":93,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"8e7272e1-7b74-4576-9ce2-924d7f05a805","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":93,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"591dd6b2-7f3f-4479-bfc0-61326e770c77","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":93,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"d46690a4-cd4d-44b4-9464-6b904ab80d83","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":93,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"00031b1c-e3c0-4023-8c72-e83d4b5a7de8","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":93,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"f64c6975-7b95-4676-9515-1d5e76ae5610","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":93,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"fe11515b-c652-41ef-a387-7b5a889bc359","block_type":"box","text":"be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in","page_number":93,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"b9afe793-3fdb-40ac-bc05-5b08b2ae42cd","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":93,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"feff3ec8-4029-467e-beec-dbe72eac0a40","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the","page_number":93,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"ef086411-4692-460a-a45a-321cbae01724","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":93,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"fbbda6ed-6381-4895-9fbb-b2ea7793e3fc","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":93,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"bcc72d79-77b6-4bb2-b3cf-eb2f23114a89","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":93,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"30b62eb6-97c7-4a28-b1aa-90780d15763f","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":93,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"2dcfadd5-17c2-4b3b-8dd5-34f183b8498e","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":93,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"c1899e70-97fc-4f92-b13a-bc66cee006c3","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":93,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"11696d52-6ac0-456c-8cfa-7d718cfc5b10","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":93,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"4160a5d6-737d-425a-a1ae-a58e37640f02","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":93,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"263d124e-eb6e-4bcb-ac76-33870d0ef60d","block_type":"box","text":"securities in the forward transaction.","page_number":93,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"790c43c1-0f6a-4029-8888-292a67eeaafc","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":93,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"87d1e660-f729-440c-a9bf-905743fb8f1b","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":93,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"49b1b74e-80c7-4dcb-96ff-1b3b89db37fd","block_type":"box","text":"that the market value of the securities subject to a Fund’s forward purchase commitment may decline below, or the","page_number":93,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"cfe7c646-3e58-4b88-b7b3-4e6dd2a9ce3a","block_type":"box","text":"market value of the securities subject to a Fund’s forward sale commitment may increase above, the exercise price","page_number":93,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"e4f8283a-c58e-4560-89f7-4bdb4aeeb0b9","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":93,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"81aa3650-e0d4-4099-8b04-5a55c6423c54","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":93,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"df287006-a498-4f6d-93c9-df93c631d518","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":93,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"55b3c850-0f5e-4189-8778-f0615196604c","block_type":"box","text":"securities (","page_number":93,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"57323dda-2707-40c2-bbd9-aad9c9104ff4","block_type":"box","text":"e.g.","page_number":93,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"1a7b322c-7852-40eb-9602-8019c65a683f","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":93,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"439ff3d8-777e-4db1-9994-d81def97f602","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":93,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"d0db5d85-e0c6-4a34-a56d-459446d6faf6","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":93,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"5e9fe9b7-2b2c-47ed-a1a1-b6622cf67145","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":93,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"99ce4791-97c2-44eb-a2f3-36532583e04b","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":93,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"72684a2a-5455-4529-acbc-91180a410e19","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":93,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"6eb74ec1-22a9-4479-a0cf-13f24c39f6f4","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":93,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"58726432-d5c5-4b7d-91db-9806cf1ba01d","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":93,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"fa175e54-e1e4-43b5-b81e-02426ce43a37","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":93,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"9be8065b-779b-4dc4-96e9-670d76d3c482","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":93,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"f43869c4-2d43-4efc-b876-b7d7fb0dd469","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":93,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"b6a49516-51ff-4e0e-8345-769a69cfb6f4","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":93,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"04d9ca11-e40f-4c7a-8ae3-18aad04e7bc5","block_type":"box","text":"securities, the yield to maturity on a NIM security is sensitive not only to changes in prevailing interest rates but also","page_number":93,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"8b2bc386-95a2-4811-9a89-b05b398f0aa0","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":93,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"fed27df0-62db-4078-9958-bc978f837b07","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":93,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"4c4ddb4b-5a97-4ac0-a6c5-7cb4ec36bdbf","block_type":"box","text":"Municipal Investments.","page_number":93,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"e024bdac-d4cd-4ea5-81e9-1d345dbd3b3d","block_type":"box","text":"II-55","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b2dae2c5-262a-4219-880c-38f8cfd36c26","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":93,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a2b3cb4e-8317-498b-996d-2d3bd661260e","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":94,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"955ceef1-3b54-404c-baec-998c47b93aa5","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":94,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"d96bb616-ef4d-48d9-a3f4-64f700921879","block_type":"box","text":"payments from which, in the opinion of bond counsel to the issuer, are excludable from gross income for U.S. federal","page_number":94,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"4b261309-74d3-437a-a6dc-c6a3c6977817","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":94,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"4c50f50a-2b3f-42c9-9cf1-da7fe0cbb563","block_type":"box","text":"pay interest excludable from gross income for purposes of state and local income taxes of the designated state and/","page_number":94,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"959bf0f2-73cc-41db-8b8f-09994281aa23","block_type":"box","text":"or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated state (“State","page_number":94,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"87b9b752-4486-4254-b9c9-b993e8bdd7ee","block_type":"box","text":"Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on behalf of a state or territory","page_number":94,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"4513981e-b078-446f-908d-39373e7137c4","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":94,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"10b6658b-e13a-4296-ac17-754f2402a4b6","block_type":"box","text":"gross income for purposes of U.S. federal income tax and state and local income taxes of the designated state and/","page_number":94,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"18f432e8-b4f9-43c6-be40-1b346f71fb3b","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":94,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"5f308406-69a3-4426-aef0-680bfb467be6","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":94,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"e6462b04-b300-4396-a0bb-c54af4f1431c","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":94,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"06e436c5-0b23-46a1-92f3-e47746d940b1","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":94,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"b6441097-609f-4cfe-a43c-03adf72f1a01","block_type":"box","text":"law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for U.S. federal income tax","page_number":94,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"a3d62119-1813-4a51-82a8-2eac9712b3e3","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":94,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"a3fdd41f-4dd3-4ef4-8e83-dd51a8e1c286","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":94,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"98d92898-55bb-4c52-b2e1-d1f7b1664fe8","block_type":"box","text":"income tax and state and local income taxes of a designated state and/or allow the value of a Fund’s shares to be","page_number":94,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"422cddd6-4ce2-474c-8fb2-33b6b800e1e7","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":94,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"82df5951-60f9-4b84-8a34-45b6312ae3cd","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":94,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"3107562d-4a40-4904-99a9-3a8fa3d1948c","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":94,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"a9e18a10-2d16-4b3d-9587-15a6f8b3d32c","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":94,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"e08bfdf0-0994-40aa-a07c-6b9d58eee80f","block_type":"box","text":"The risks and special considerations","page_number":94,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"3b964d22-5a79-4dfa-8129-17bfa3c77b5b","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":94,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"f57a7a22-95b1-49ae-bf05-0804c863fb90","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":94,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"790352b1-0086-4c86-9ab6-279afb347bf2","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":94,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"0a91abbf-4c5b-48e1-91e1-0d4ae053cbae","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":94,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"98ced518-4f61-4766-86fc-98f7d7f5f46e","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":94,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"4da791a6-50bb-4824-8771-22925f2c7737","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":94,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"fa2ee997-0c1e-4ca7-acad-33bba50965a4","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":94,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"2d1a3cb9-c6b8-4f10-9916-f13fb6fb5e37","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":94,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"97b3b70b-9a27-4482-8c83-d422c1a34fee","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":94,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"6945113a-f596-45a1-bd1a-2a54b7580428","block_type":"box","text":"II-56","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"68a7ed83-38d5-48a1-a24c-00fd74129151","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":94,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"236af02e-3ed6-4ed8-a0f6-fef4b18cde07","block_type":"box","text":"Description of Municipal Bonds.","page_number":95,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"c8f748e5-e6a1-4252-9415-e39907e3a073","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":95,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"38ecab93-2ccd-4325-992b-93ba4c3d5288","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":95,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"b4d79135-3d3c-4c56-9759-baf5cceefdad","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":95,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"4958780b-a399-41c9-a544-f9fb6e5b52d0","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":95,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"c7adeb75-c1be-4e8f-b7ae-51dc9a86a06b","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":95,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"ad711660-1e59-49ae-8aa3-6cd0e19ca6f3","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":95,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"02665182-b6c6-4ac2-b54a-22daaf8bb1f9","block_type":"box","text":"excluded from gross income for U.S. federal income tax purposes and any applicable state and local taxes. Other","page_number":95,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"54e8a980-38c2-478d-8b49-44685344b17e","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":95,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"16bada79-0cc4-4840-b487-505bacce1228","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":95,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"b09ca433-4fc7-40d8-827e-69cfed602feb","block_type":"box","text":"federal tax laws place substantial limitations on the size of such issues. The interest on Municipal Bonds may bear a","page_number":95,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"cc97ad0c-5ca1-412a-8751-1f4d2e1d990f","block_type":"box","text":"fixed rate or be payable at a variable or floating rate. The two principal classifications of Municipal Bonds are “general","page_number":95,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"a2560988-68e4-4f76-a199-cb808d5cfe98","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":95,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"5035bee4-d696-4596-ac5e-24b01a1c9859","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":95,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"019b4ff9-1965-457a-9c10-d81cc0308b5b","block_type":"box","text":"General Obligation Bonds.","page_number":95,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"941ba0ef-e005-4e20-9448-5ec1c34cb6cc","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":95,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"6b408eb2-7292-47da-b23b-05883c972cf2","block_type":"box","text":"taxing power for the payment of principal and interest. The taxing power of any governmental entity may be limited,","page_number":95,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"801f081e-74eb-4cd7-a951-2185ac41559d","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":95,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"8136e26a-19fc-4e99-aa04-81241225c2f9","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":95,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"229e5114-6e87-4fb3-b2cd-6101632a12b7","block_type":"box","text":"industrial base or inability to attract new industries, economic limits on the ability to tax without eroding the tax base,","page_number":95,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"1ae48a7e-a5e1-4080-ad2c-650842401f04","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":95,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"c6fe9a08-7a8c-4da2-9288-8beeacb80f00","block_type":"box","text":"relies on federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":95,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"e95195d1-f1b6-45c9-a414-ef902b3b9b8e","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest and the","page_number":95,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"16fd2870-cae7-40cd-aa3e-9b1c1cf08f2d","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":95,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"dd3fa409-9a3e-4093-a245-b8cea553cc8e","block_type":"box","text":"Revenue Bonds.","page_number":95,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"6d18f05a-8c97-4611-9e25-d67a1e943b3d","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":95,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"35045783-9fec-4f19-9967-7882b718f778","block_type":"box","text":"facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source such as","page_number":95,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"14b171e6-fd32-4615-87aa-beddb35f88a4","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":95,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"088eaf65-47bc-41b2-9bd0-0e7032e889a1","block_type":"box","text":"of principal in accordance with the terms of the revenue or special obligation bond is a function of the economic","page_number":95,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"e6dd4de6-d776-4e34-9cb7-3c001c7ff343","block_type":"box","text":"viability of such facility or such revenue source.","page_number":95,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"d7bbb4fa-5db3-4348-b12a-0f1e211d47ab","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":95,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"e3b8e5d0-6419-4a9a-b71e-b1755930a0b8","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":95,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"b88dc387-04f6-439f-a897-896725ed52ca","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":95,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"7f74ce57-c361-48f9-b532-a924956acf0d","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":95,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"2c083f69-fa47-45f5-a145-8d94fb42ca9c","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":95,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"b797a9cf-b494-49da-b49e-5b0ce7ad7cd2","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":95,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"24968579-0910-4d90-862d-9496077f03a0","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":95,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"16542aae-7ead-4a67-8011-d510c5470587","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":95,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"f1e9b88d-5988-42ed-b573-ecdff2d88102","block_type":"box","text":"PABs.","page_number":95,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"c5cb9382-aaaa-4b78-842e-4ef4ac448afa","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":95,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"d108e10f-a838-4c74-a6f5-9b8d96f83c8a","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":95,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"e63ba4a7-671e-48a4-8da1-fb0b95c8b915","block_type":"box","text":"construction or improvement of a facility to be used by the entity. Such bonds are secured primarily by revenues","page_number":95,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"bf3242fb-22d0-4b5b-afc2-afeb6f9fa087","block_type":"box","text":"derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a","page_number":95,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"8fe093fd-d772-46e4-b8ee-399a21331fe0","block_type":"box","text":"parent company or otherwise secured. PABs generally are not secured by a pledge of the taxing power of the issuer of","page_number":95,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"8aa60b0c-cf65-4d9a-92e5-fa2345e1c76b","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":95,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"1543eb0e-1db9-49fa-8214-e57595409af6","block_type":"box","text":"revenues of a private entity and be aware of the risks that such an investment may entail. The continued ability of an","page_number":95,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"ccc4354a-3fcc-4c5b-99bf-da48212a26d0","block_type":"box","text":"entity to generate sufficient revenues for the payment of principal and interest on such bonds will be affected by","page_number":95,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"23fefd79-7959-4b59-baba-fe106e44f874","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":95,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"81e583d0-af43-4d5c-8aa9-64684b42ce47","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":95,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"12c0aba4-4de7-42e6-92f1-6f073454e123","block_type":"box","text":"the par ticular facility being financed.","page_number":95,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"3e962cd0-a8eb-4ede-82b4-a1330e8944fc","block_type":"box","text":"Moral Obligation Bonds.","page_number":95,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"a491655f-46aa-4b9f-ac19-dc5c3066b1a3","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":95,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"9fcffa25-98d7-48c6-bea9-bc74afee1314","block_type":"box","text":"issuer of moral obligation bonds is unable to meet its obligations, the repayment of such bonds becomes a moral","page_number":95,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"8ceb4f05-41c9-4539-8b94-a440d3c10faa","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":95,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"53045e24-070d-4366-b919-f9fa6a5b003d","block_type":"box","text":"that issued the bonds.","page_number":95,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"87f1d1dc-c80e-482f-81f5-9f21b1168b43","block_type":"box","text":"Municipal Notes.","page_number":95,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"a5221d16-5210-41d2-9cff-d3393b6327d5","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":95,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"ead2d9b4-a77c-40da-899c-9a888adfa860","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":95,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"123bbdab-73ae-425b-b2e6-93715bb19465","block_type":"box","text":"repayment on the note may be delayed or the note may not be fully repaid, and a Fund may lose money.","page_number":95,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"68ce8458-2d11-4261-a30b-d48b942f6f35","block_type":"box","text":"II-57","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"829dc4ef-774f-4118-88a2-84d22aa047de","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":95,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"efc6d77f-2ff2-45b4-83ed-30e53990a47a","block_type":"box","text":"Municipal Commercial Paper.","page_number":96,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"547670d3-1807-4980-9815-0812425e615d","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":96,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"b5fd2a25-33ab-4833-8f10-13bb287b7a45","block_type":"box","text":"financing needs. The lack of security presents some risk of loss to a Fund since, in the event of an issuer’s","page_number":96,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"14a30700-d61c-4013-b9e4-252f93be3a3c","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":96,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"f224cb0c-209e-4bbc-aab9-30095f6eaf4b","block_type":"box","text":"Municipal Lease Obligations.","page_number":96,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"3bf37abd-3a85-4eea-bf64-1b871256b7dc","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":96,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"864a131c-9594-4037-abef-287f81df8ed4","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":96,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"e1db6654-2734-4ce4-8802-274b5b7e99aa","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":96,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"7d86139e-6735-4292-af40-45ee787a600f","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":96,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"ac45b313-6cd9-46a8-921c-1b920787978e","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":96,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"fdddf1d9-b91a-42d2-97e6-82bb4caf801f","block_type":"box","text":"lease obligations do not constitute general obligations of the issuer for which the issuer’s unlimited taxing power is","page_number":96,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"91bf3934-7191-4187-b840-08951cc285d1","block_type":"box","text":"pledged, a lease obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":96,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"6a71ca81-0e11-497d-90a1-71cc7a530a1a","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":96,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"be447566-f12b-4601-8b88-64e96761224a","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":96,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"1a49251c-349d-4dad-80b1-c878614721ec","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":96,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"1e2a4942-ea33-4a8d-ba9d-87512fa5c18a","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":96,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"81ff3620-72a0-4d34-bb67-bdca39de3fa0","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":96,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"cd620a0a-a23c-4cb4-84cb-3265cbc734fc","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":96,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"46d51278-c7c1-4156-9a50-f09663189658","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":96,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"253ff4e4-b558-4e8b-a3ef-6d10c5e862c7","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":96,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"4a783a45-9ffd-4472-9ca6-02a8cbf65615","block_type":"box","text":"and local governmental units. Such non-payment would result in a reduction of income to a Fund and could result in a","page_number":96,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"37ae2bf1-75ff-4945-8e97-e9e97c57de2a","block_type":"box","text":"reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":96,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"f1fb911a-e657-4dd6-8427-0b6974556dfc","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":96,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"4511dcb3-1460-47cd-854f-c2f5c96e462f","block_type":"box","text":"such an issuer, a Fund could experience delays and limitations with respect to the collection of principal and interest","page_number":96,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"722769a1-3e53-44b7-82c7-32d3e7316215","block_type":"box","text":"on such municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest to","page_number":96,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"6e540635-9903-41c4-82fb-5ce5d9f9f159","block_type":"box","text":"which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might take possession of","page_number":96,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"952cd995-f819-48e3-a24d-893354b4abd2","block_type":"box","text":"and manage the assets securing the issuer’s obligations on such securities, which may increase a Fund’s operating","page_number":96,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"23da957c-4ffb-47b9-9656-524b0d31a28f","block_type":"box","text":"expenses and adversely affect the NAV of a Fund. When the lease contains a non-appropriation clause, however, the","page_number":96,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"d8e77294-6f6a-4294-b3ae-9bea93a887cb","block_type":"box","text":"failure to pay would not be a default and a Fund would not have the right to take possession of the assets. Any","page_number":96,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"8c0ba727-6075-44e5-868f-93ad5cfdeb7f","block_type":"box","text":"income derived from a Fund’s ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s","page_number":96,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"abf81ae7-a850-4871-b29f-d405223e4444","block_type":"box","text":"intention to qualify as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":96,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"d3265676-d3c4-48e7-99bf-039ccd627853","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":96,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"c6ff663f-28be-418b-a36c-e13b5151ab82","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":96,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"fc7b357b-8a43-4f85-bd4b-9d506419df59","block_type":"box","text":"Tender Option Bonds.","page_number":96,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"e82a02fb-a903-419c-99f1-ba99ae495645","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":96,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"89a3d0f9-c339-46d7-aba6-ecf75ff79ddc","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":96,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"e039b6c1-10d7-421a-a501-b57e0c0845b0","block_type":"box","text":"invest pay interest or income that, in the opinion of counsel to the issuer, is exempt from regular U.S. federal income","page_number":96,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"0306ddb4-7fbb-49f3-82e5-2036bee711c0","block_type":"box","text":"tax. BlackRock will not conduct its own analysis of the tax status of the interest or income paid by TOB Residuals","page_number":96,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"358767c3-9be9-49e9-9336-ed61dc798a94","block_type":"box","text":"held by the Funds, but will rely on the opinion of counsel to the issuer. Although volatile, TOB Residuals typically offer","page_number":96,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"d48c293d-2dd1-4567-b54f-ca0f8d029e3f","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":96,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"b770ccf8-8655-4662-a61b-4d341e8760e3","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":96,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"29472d32-c96e-4a19-8e2d-447381e19346","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":96,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"9cf10da8-2c22-4178-9c5d-b38691d7784f","block_type":"box","text":"Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically issues two classes of","page_number":96,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"bfa5e87a-3bf2-4a3c-865b-e9ca22fdefae","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":96,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"685ac7ba-7c57-44b8-b188-a3c94f9cb7f1","block_type":"box","text":"TOB Residuals, which are generally issued to the fund(s) that transferred Municipal Bonds to the TOB Trust. The","page_number":96,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"cb83ec80-85dc-4841-965d-ebf45a6f695d","block_type":"box","text":"Funds may invest in both TOB Floaters and TOB Residuals. TOB Floaters may have first priority on the cash flow from","page_number":96,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"88b80be4-b6f9-4d4e-a426-9204339b91f5","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":96,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"a952be1d-6a37-4f06-b9a2-da89b6ab4b87","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":96,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"11eb10a7-c9ae-4ce4-a5f1-c0aa168779f6","block_type":"box","text":"as a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes the","page_number":96,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"ff52a70b-7df5-4e15-9781-cb1cb6f3eb38","block_type":"box","text":"Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the TOB Floaters, less","page_number":96,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"779f7e20-f0d3-40fd-bf59-ee7c61c2c152","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":96,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"c5934897-095c-48cc-8b2e-d215ac8385f8","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":96,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"c506ad9a-bb3d-4396-9d81-e00c32c6cce3","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":96,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"1c097232-bb8c-408c-a156-46651ec0b7d6","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":96,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"0efbca98-1c27-44ff-9c55-11f0ba4e7eff","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":96,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"9f6fc940-362c-43c9-9f4c-1b6059cb58f2","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":96,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"ab256421-0456-4372-9571-d2f0b3fe39e2","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":96,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"1e67e506-9456-4d93-8de0-53f8c1f85e19","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":96,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"9a9f87b4-2a76-4ef8-9e02-8edbe8cfe542","block_type":"box","text":"II-58","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b966e3e7-a047-481f-8714-61d569eefcf2","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":96,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"9a3d670d-1eb2-4ae9-a153-239e5c986805","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":97,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"660f2c02-44ac-4d8c-8280-89c2246ba001","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":97,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"8535f647-410e-4fe3-9e04-d95894adbde7","block_type":"box","text":"enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by","page_number":97,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"99af5d60-1dab-47a9-9f87-4c147117ab5a","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":97,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"5f8f950e-99fd-4bb1-bc68-3a8e28976bd1","block_type":"box","text":"and a Fund, as a TOB Residual holder, would be responsible for reimbursement of any payments of principal and","page_number":97,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"2a95c1ac-47cb-40a1-9320-1620cce3c080","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":97,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"b53983cc-06ab-4d1c-8384-1e3a1d15c123","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":97,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"3561ec75-f09a-45d1-88fe-04f22d0d63aa","block_type":"box","text":"share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued interest. Thereafter, the Fund","page_number":97,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"7c499fa6-45de-480b-a3cd-b99d96b3c9d9","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":97,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"64a4fde1-8232-4d98-bc1d-262045c4c452","block_type":"box","text":"exposure for the Fund to the entire return of the Municipal Bonds in the TOB Trust, with a net cash investment by the","page_number":97,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"3b60b390-be3c-4501-b6d7-50b7033c50fb","block_type":"box","text":"Fund that is less than the value of the Municipal Bonds in the TOB Trust. This multiplies the positive or negative","page_number":97,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"621cf204-57d7-439a-8d7d-6ab18b53287b","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":97,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"557e3e81-b129-459a-b6ab-4889e513d2e0","block_type":"box","text":"depends on the value of the Municipal Bonds deposited in the TOB Trust relative to the value of the TOB Floaters it","page_number":97,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"3f18da4e-994e-4efa-9c03-6517685d65ba","block_type":"box","text":"issues.","page_number":97,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"eed799e6-007a-4640-adde-ca28194bccab","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":97,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"3d7ba86d-8cf8-4b8b-9955-8354637da1e2","block_type":"box","text":"the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of the principal amount of the","page_number":97,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"3fbcf28c-3d4e-4662-999f-86cc52828284","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":97,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"a7459451-2856-4980-9897-115c094720ca","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option termination","page_number":97,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"2fab1cc9-7a82-4d44-a8d2-21e8cb3f271f","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":97,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"03fe2327-bcfd-406a-aa28-ed56043e6c4e","block_type":"box","text":"include the bankruptcy or default of the issuer of the Municipal Bonds held in the TOB Trust, a substantial downgrade","page_number":97,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"070a915f-650e-4f14-92dd-8f9f06479e72","block_type":"box","text":"in the credit quality of the issuer of the Municipal Bonds held in the TOB Trust, failure of any scheduled payment of","page_number":97,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"519dd399-1d33-46da-abd2-e52b0714193c","block_type":"box","text":"principal or interest on the Municipal Bonds, and a judgment or ruling that interest on the Municipal Bonds is subject","page_number":97,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"d735f955-376f-4343-97b0-82a259af7653","block_type":"box","text":"to U.S. federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Floaters, the","page_number":97,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"b6445e83-bcc6-4eb6-97a1-092135663d2a","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":97,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"83df19da-ca50-4ea6-85a6-81cde1532c2d","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a TOB Trust would be","page_number":97,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"1453a961-647d-498e-b9d7-72e4bd81b023","block_type":"box","text":"liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the remarketing","page_number":97,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"5a2d1bc7-9572-4a66-b876-22dc91c91602","block_type":"box","text":"agent of the TOB Floaters and the Liquidity Provider (defined below). In the case of an MTE, after the payment of fees,","page_number":97,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"6c81bd7b-f9ab-4734-849a-035bf40a63cf","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":97,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"ab04829a-3146-4ea4-89ce-f12bf687e3e5","block_type":"box","text":"i.e.","page_number":97,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"ca20ab47-69de-43d7-9487-5728576ef28d","block_type":"box","text":", the Fund). In contrast, in the","page_number":97,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"a2df0a78-f5ff-4904-a851-4ceb96114388","block_type":"box","text":"case of a TOTE, after payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro","page_number":97,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"8586e93c-f8e5-4fbe-8e3d-639c4a0ff90e","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":97,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"fd1f1a2f-5b1a-4c8c-bd0b-6f3891e91c64","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":97,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"fd794a80-a904-4992-a6cb-262bfeb5ae88","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":97,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"ac71ac34-bd6b-47e9-b5ff-4c52c162d7ff","block_type":"box","text":"the holders of the TOB Floaters to tender their TOB Floaters in exchange for payment of par plus accrued interest on","page_number":97,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"2fa6467d-755d-4988-bd7f-c4b04f362bab","block_type":"box","text":"any business day (subject to the non-occurrence of a TOTE described above). Depending on the structure of the TOB","page_number":97,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"8990e163-0e66-4719-aea5-43993ebebcd1","block_type":"box","text":"Trust, the Liquidity Provider may purchase the tendered TOB Floaters, or the TOB Trust may draw upon a loan from","page_number":97,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"8326f053-d979-4f74-a9e6-f280e0cad833","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":97,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"8cc14022-d48d-4274-8433-26b4e7bebb92","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a","page_number":97,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"26d27e3b-be40-4e8f-b3f4-1aca9e1a81e8","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":97,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"4dfc8b21-cc67-413e-b4e4-e5124c0a8aaa","block_type":"box","text":"held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility over the","page_number":97,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"3923a6f6-7382-409e-bd72-c2b1719abcc5","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":97,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"777343ca-a7c0-4b64-a856-807926854491","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":97,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"4ac21bb2-25df-460a-b6e5-6c642ea03186","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":97,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"d106a276-d321-454c-9a19-a5f987b6eda4","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":97,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"891b4b5d-b593-4a12-ac5a-b3d9d28a8fa8","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":97,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"11b6b2bb-d8a8-41df-95c4-f969f625f573","block_type":"box","text":"Trust.","page_number":97,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"66e47a30-a604-4b51-9fb1-d8191c64dd0e","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are investments of the","page_number":97,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"3c022fba-712c-49b6-ba95-c575b242ef9d","block_type":"box","text":"Fund and are presented on the Fund’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust","page_number":97,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"4ec07768-583c-49cf-aad9-2417ee3a10de","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":97,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"152fa3c1-a593-462f-8fde-3f2667247b75","block_type":"box","text":"Municipal Bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Floaters and other","page_number":97,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"6fcd79ab-7315-4005-8f25-ba2041d0ac75","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":97,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"8a92f59e-0aad-432f-8cae-8c1ac2ec43db","block_type":"box","text":"of a Fund. In addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented as","page_number":97,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"ef9ea5cf-d44a-4532-8f77-727c655f4dea","block_type":"box","text":"loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s assets.","page_number":97,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"1a3fd3a5-b1ac-4f81-8610-26d3130dc882","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":97,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"0a603d06-608a-42a1-8341-163058067add","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":97,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"ebc83150-b736-4f5a-8501-709940b8453b","block_type":"box","text":"II-59","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1d1c6826-0492-4227-b15f-732a3c23f6f4","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":97,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"9c6ebfb4-ec20-4cbe-bdde-0f91311ee0a8","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":98,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"a7856f4c-58ca-48e1-aaf5-9738008951a1","block_type":"box","text":"Bonds deposited in the TOB Trust, the holder of the TOB Floaters relies upon the terms of the agreement with the","page_number":98,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"19ab86ea-3017-4108-9b76-d1f22673442b","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":98,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"e83829f1-324e-4afe-a1f3-42d73afcbe01","block_type":"box","text":"with TOB Floaters, however, may be increased in the current market environment as a result of recent downgrades to","page_number":98,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"968ffa9a-a7b5-49a6-8668-6192db02e15d","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":98,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"1ea0964b-a6c5-495d-a386-154abf61d8d8","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":98,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"b4d08046-f938-47f9-8bbc-56289eb1bf81","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":98,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"1d269eab-ae25-4305-b663-7d66055e2acd","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":98,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"8b8fa6b3-be26-4583-b893-f315117ba932","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":98,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"b8dcd191-8619-44b5-8666-00c9b289285d","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":98,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"092522fe-8d0d-44ec-ba9f-683a42798c60","block_type":"box","text":"(i) complies with the 300% asset coverage ratio with respect to such transactions and any other borrowings in the","page_number":98,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"381e7cf3-be90-416a-b26e-a209dc6c2824","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":98,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"60004f5a-d4ad-40ad-b7e6-ba8f3426aaf0","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":98,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"2909ad04-672d-4be4-a8ed-682fa8144445","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":98,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"8c7ececa-d809-4d18-b7e5-e9791fc4365d","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":98,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"4f2dbdf8-1983-46f6-8d24-fb78295c5233","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":98,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"d16541ca-cb4c-4f60-a457-1fcf0542c013","block_type":"box","text":"ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will","page_number":98,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"6ee95e8a-d359-4795-bf90-096354dc1a3f","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":98,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"a95a8c48-95df-4b9b-bb2d-b0c10576999b","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":98,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"25439cc4-f857-4439-a37b-b3da6bdab80c","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":98,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"bb81777b-7ba6-40be-ab61-6c6bd1505da9","block_type":"box","text":"could limit the market for such structured TOB Trust transactions or a Fund’s ability to hold TOB Residuals. Under","page_number":98,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"d1d12ba0-fb41-4681-bf11-4e6d623a046b","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":98,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"3b7ab5b7-ca99-4c48-8b42-56f4276156ae","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":98,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"34b6061a-8c83-4357-b15f-f02ce6c72d40","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":98,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"13db9eb4-b749-4700-b126-15eb6d5d7ab4","block_type":"box","text":"remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":98,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"06d4e105-5e06-42f2-b701-ac2914212fdc","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":98,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"281d7c05-c401-4e68-9490-56c7aebc65f7","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":98,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"1e52aef9-7058-4e76-bef0-645e8a0aa067","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":98,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"b194f59f-b44e-4714-ba20-2b57179a3e8d","block_type":"box","text":"i.e.","page_number":98,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"8993c7f0-b8b9-42c4-8787-8a4bdb053015","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":98,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"cde46ff9-fe63-4f53-9600-73f909ceb115","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":98,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"78977442-2326-4ed6-8967-4b059869e5c6","block_type":"box","text":"TOB Floaters for its own account in the event of a failed remarketing, which may increase the likelihood that a TOB","page_number":98,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"af59e4a2-785c-4cea-a5f4-72598be65d81","block_type":"box","text":"Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of a failed","page_number":98,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"6b2cf00f-2828-4791-ba68-c0eec2a13cac","block_type":"box","text":"remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the TOB Trust the proceeds","page_number":98,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"b5410209-fd9d-491f-b8f8-5d8626224c86","block_type":"box","text":"of which would be used by the TOB Trust to purchase the tendered TOB Floaters. The Liquidity Provider is not","page_number":98,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"5b66a745-d76e-4822-b99a-71fe6da651ee","block_type":"box","text":"obligated to advance such a loan. The TOB Trust would be the borrower with respect to any such loan. Any loans","page_number":98,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"5374aa6c-17b9-48af-842c-9d71f5a453f8","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":98,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"94599e2c-72e8-4bf0-ab79-dbd6ebff4e59","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":98,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"966a208c-5832-4d00-b7d3-17e2097e96eb","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":98,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"0e5c6fef-1a15-42bd-bf3d-f21cdf4b03e4","block_type":"box","text":"contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB Residual. However, as described","page_number":98,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"56b08d1f-2e3d-43ed-922a-aa551946b461","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":98,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"0aa5af7c-6301-4ca2-a2ad-b8e0af352c4e","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":98,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"423ef4bf-6f39-41a8-a579-304228148cd2","block_type":"box","text":"(the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention Rules require the sponsor of a","page_number":98,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"84090b0f-746e-4aa7-9a87-ce3b498386c4","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":98,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"7c9bc5aa-b9b1-422a-9349-164c52f62c0c","block_type":"box","text":"Bonds. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or","page_number":98,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"ac475bcc-e1a2-4536-a218-c5d8c30fd343","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":98,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"9e2fab0d-7a7f-4bfb-ad0d-e891ac24c8b5","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":98,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"ffb31778-255b-4c04-84b2-e1c743edfcc4","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":98,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"29408378-3df8-4fe3-bbfc-fcca782a03d6","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":98,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"12d3f4ce-498c-4734-a9ea-36a77239d59e","block_type":"box","text":"could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal","page_number":98,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"c0c4ebcb-6cc5-4afd-b110-292f1bf9aae0","block_type":"box","text":"market is not yet cer tain.","page_number":98,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"09571bf0-c92a-48cb-bfdf-14f905e6ac5c","block_type":"box","text":"Yields.","page_number":98,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"8179c14b-32e4-4f58-8f5f-ec1ee0beea4b","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":98,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"ded96afc-8ef2-4873-a690-0162e7f6d8a0","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":98,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"e4656848-59e9-4afd-af7e-9973922e6932","block_type":"box","text":"issuer, the maturity of the obligation and the rating of the issue. The ability of a Fund to achieve its investment","page_number":98,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"d22cd8a7-5d62-478a-8dad-0b665ed469d6","block_type":"box","text":"objective is also dependent on the continuing ability of the issuers of the securities in which the Fund invests to meet","page_number":98,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"2529ca7f-70c0-4e31-8edc-43808f1affb7","block_type":"box","text":"their obligations for the payment of interest and principal when due. There are variations in the risks involved in","page_number":98,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"746df443-23df-4e4e-9efa-067428c24e07","block_type":"box","text":"II-60","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5464d050-48f4-4d6f-9440-dab6b9b3cd39","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":98,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"605a157d-c50c-4a3d-870a-2c95695c9c5e","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":99,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"dd0c8d9b-3066-4d6f-9888-ab69c0b9437a","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":99,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"eae0ef1a-27d2-4037-977c-89b5e442c551","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":99,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"32163e56-20bb-4cfb-b13b-5d2cc7171b60","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":99,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"70506c3e-2d1f-4b9f-b3fe-c1e02827402b","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":99,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"ac40aceb-9655-444f-8fa1-a2bd3c94bf7b","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":99,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"746a7fc8-8bb5-47c2-8324-c0b69c4c2355","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":99,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"3d86fd14-c224-46d2-9722-a799ac549cc3","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":99,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"a507d990-4884-4cd5-9f83-56c3eafc2602","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be honored.","page_number":99,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"bebd64f6-0511-4eef-9c57-d38d05d9c683","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":99,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"9ad2cb94-ccaf-45f2-a9f8-cce4905ca0de","block_type":"box","text":"adjustment formula being calculated to maintain the market rate of the VRDOs at approximately the par value of the","page_number":99,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"122e44e1-7989-48e5-8571-d956cd4882da","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":99,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"72ee0310-276b-4e39-83d7-fcc8f87bf622","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":99,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"add265cc-528d-4d40-b385-855dff3ebce7","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":99,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"2b26fcb0-230a-44ca-842c-fe367aedf83d","block_type":"box","text":"During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its shareholders will forego the","page_number":99,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"765c3641-07ab-42f2-8498-b2feb4318bf2","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":99,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"02daa920-100f-4acd-941f-e59b1d787410","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":99,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"9c703448-e121-459c-b40d-ee4d5c7a141e","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":99,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"5661fddf-3701-469d-b169-9f8ec5c2d974","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":99,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"12d177f8-56cf-4049-bfb9-2199ca2288a3","block_type":"box","text":"deal in financial futures contracts based on a long-term municipal bond index developed by the Chicago Board of","page_number":99,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"c57d38ef-62b4-4129-8714-37cc4db725fe","block_type":"box","text":"Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal Bond Index is comprised of 40 long","page_number":99,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"bda3812c-c8ce-4b05-8721-a31fcb3f0a01","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":99,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"ec5b5248-c307-4ff5-96b6-9212b4df6caf","block_type":"box","text":"Bond Index must be rated A or higher by Moody’s or S&P and must have a remaining maturity of 19 years or more.","page_number":99,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"fc0ecf2b-0d0c-4271-a153-d651096f1c43","block_type":"box","text":"Twice a month new issues satisfying the eligibility requirements are added to, and an equal number of old issues are","page_number":99,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"e5a66d04-1e87-4d36-bb6e-c6e3077adeea","block_type":"box","text":"deleted from, the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":99,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"a2dbfd85-0b21-45d5-903a-a57887d0018e","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six dealer-to-dealer brokers.","page_number":99,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"2e6b70b9-02ae-46e0-b66c-db027c637cfc","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":99,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"b714eb2d-11d6-42a6-b9f0-9afa260c1b47","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":99,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"36dde174-3ef7-4094-97d7-03ed1dbe7492","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":99,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"a62e0382-edb1-4308-b362-3205f010cf19","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":99,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"9bdb9959-8f00-4ec2-9b84-74f009804e7a","block_type":"box","text":"contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s ability to hedge","page_number":99,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"a744d956-fb00-4883-a2c8-ae84b979a659","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":99,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"26544cc5-a524-4300-8aa8-58158a225c50","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":99,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"d081c490-f269-4212-87a3-6f67fd14ae60","block_type":"box","text":"correlate with the price movements of the Municipal Bonds held by the Fund. The correlation may be affected by","page_number":99,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"4b249d22-f680-4a6e-8e29-c696416a8642","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":99,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"2ad4e4c3-231a-4b4b-a3ff-d0e934aac37f","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":99,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"005569a6-1242-438d-bdd4-50f4e10b1e27","block_type":"box","text":"correlation between movements in the value of the Municipal Bond Index may be subject to change over time as","page_number":99,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"37e95b94-efd9-470d-8847-1095d4001ce2","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":99,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"8479ed39-6a1e-477c-8533-870ff5206142","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":99,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"80b2d8fa-fc14-4203-a693-c58c5616c393","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":99,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"963f77d2-d639-440c-8b5d-e027a480191b","block_type":"box","text":"contracts and the prices of Municipal Bonds held by a Municipal Fund may be greater. Municipal Bond Index futures","page_number":99,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"1dcd5a19-64cf-4d8c-a11a-c92771f15713","block_type":"box","text":"contracts were approved for trading in 1985. Trading in such futures contracts may tend to be less liquid than trading","page_number":99,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"eb7dbe1c-6550-4a31-a997-a8f2fdbdf06f","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":99,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"bc880094-6c54-42e3-b4d9-fabebcefe130","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":99,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"6481d106-f288-4e18-99ba-cc610e889a08","block_type":"box","text":"Call Rights.","page_number":99,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"87044733-337f-4ba8-a41b-b2b9da53eadf","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":99,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"b15cd48d-1936-4f26-be0f-ee8b0db9cdd3","block_type":"box","text":"for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may exercise such right to require a","page_number":99,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"6c55468e-39c9-4b1b-afd9-323dd0d69c01","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":99,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"0e93addd-32f0-48a4-8789-9696a65390e6","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":99,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"64acb4ef-cc62-4728-bb01-b404119e3499","block_type":"box","text":"both the Call Right and the related Municipal Bond is identical to holding a Municipal Bond as a non-callable security.","page_number":99,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"6d228a35-845e-4f22-bcd3-bb9909e24944","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":99,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"16e376d0-6edd-4900-b40f-21c8987e3ae0","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":99,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"6ab9e20f-1b46-4af8-ae60-e735bbb02799","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":99,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"3f46276e-de56-438e-bed7-53cab6cd656c","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such as Municipal","page_number":99,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"dbb60436-ebf8-4709-99e2-372f6b7c0e9e","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":99,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"bed3f99c-a143-479b-8585-1bb23f81f92e","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":99,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"61dc447c-f810-41d2-8d27-1f9620e1b212","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":99,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"ea616c8a-ac04-4861-9d2f-5551fa577d97","block_type":"box","text":"protect against any increase in the price of securities the Fund anticipates purchasing at a later date. A Fund intends","page_number":99,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"e21e13a5-4637-402d-93b1-8cefb55f140f","block_type":"box","text":"II-61","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"86704f14-79df-40c7-95d1-78e9cd39001d","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":99,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"eae955ca-c99f-4b68-872b-1fe7a46302ff","block_type":"box","text":"to use these transactions primarily as a hedge rather than as a speculative investment. However, a Fund also may","page_number":100,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"1d534508-d38f-4939-a5da-ed4b77ad66ad","block_type":"box","text":"invest in MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for example,","page_number":100,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"16348ada-8065-4819-b78b-08166b01b45e","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":100,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"9bacc915-d581-46c6-83e7-e15434a9f43c","block_type":"box","text":"i.e.","page_number":100,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"4a67ced6-fe91-4161-a64e-df23e76f66ae","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":100,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"4cc235a7-0a75-43c2-a95f-81fcb67c74a7","block_type":"box","text":"rates).","page_number":100,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"132d7d6b-6b40-4528-9cd4-1c60d01f4430","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund exchanges with","page_number":100,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"a829e855-8aa3-4c26-a033-87e072ecfa36","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":100,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"75a15687-a24a-4fae-ab2d-ae9a1444d23e","block_type":"box","text":"e.g.","page_number":100,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"79fb7353-830b-4027-832f-98094a7465ef","block_type":"box","text":", an exchange of fixed rate payments for","page_number":100,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"4ae23347-f7b9-401e-931f-7ee1cac49f15","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":100,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"3cb6d3eb-3a57-427e-b080-922508480592","block_type":"box","text":"index, SIFMA Swaps may reduce cross-market risks incurred by a Fund and increase a Fund’s ability to hedge","page_number":100,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"92ccc63b-f9f3-4a9b-bef2-d6f83b7901aa","block_type":"box","text":"effectively. SIFMA Swaps are typically quoted for the entire yield curve, beginning with a seven day floating rate index","page_number":100,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"d26165cc-d9ea-4dc0-8142-855a1865f835","block_type":"box","text":"out to 30 years. The duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond","page_number":100,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"a7964165-2728-4b53-9abe-8c0a57359a19","block_type":"box","text":"with the same attributes as the swap (","page_number":100,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"011e64e5-48a1-4065-bcf0-0f5930320c6d","block_type":"box","text":"e.g.","page_number":100,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"e5f52d9d-284d-434c-b644-2edb4f3f01c2","block_type":"box","text":", coupon, maturity, call feature).","page_number":100,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"25109cd5-d2e5-42f4-9405-517bb6280e40","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap permits a Fund","page_number":100,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"6981fa48-7eed-40be-b151-aaaf9a7a86b2","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":100,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"cf1e9c3a-1382-494c-bf24-520dd5795185","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":100,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"e1877dc1-c964-4158-ac72-85bee8be4103","block_type":"box","text":"price of securities to be purchased at a later date. By using an MMD Swap, a Fund can create a synthetic long or","page_number":100,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"801b313a-a69b-490f-bf23-e163c1d1530b","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":100,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"d7724daf-eb91-476d-b490-2ed85267212d","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":100,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"f100e134-64b0-4860-aeca-d7088700dfaf","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":100,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"cdb14737-fd85-4535-8e9a-7a30056cba4c","block_type":"box","text":"below a specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and the","page_number":100,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"6a9933d9-5648-49b5-b677-69dd28c3e162","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":100,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"e251c7c5-530f-4025-acd1-7eec827351f0","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":100,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"62a9e187-1b80-4946-80fc-5f99e8c8628a","block_type":"box","text":"multiplied by the notional amount of the contract. If the Municipal Market Data AAA General Obligation Scale is above","page_number":100,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"4b069c77-9894-434a-b953-4e99b7e6c1d2","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":100,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"9b1874c4-0c9b-48f7-9f9b-96017ee98816","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":100,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"2e7e852f-d1a7-42b8-a9f2-2bf33ac01e38","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps, there is a risk that municipal yields will move in the","page_number":100,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"e9dbc013-c248-4b01-a4e8-b17a06338f9d","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":100,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"56cf20ea-8102-42ea-98bd-44595050c357","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":100,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"42341e03-145a-4f8f-bc11-afe1eb329047","block_type":"box","text":"Insured Municipal Bonds.","page_number":100,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"7e192187-dc43-486c-80c0-7e9587d01ff9","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":100,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"92bc5021-6fc8-4afb-b1ae-c7578639fba4","block_type":"box","text":"payments on the bond will be made on time and the principal will be repaid when the bond matures. Either the issuer","page_number":100,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"05246e47-43ce-4d50-bdfc-4842bb34906f","block_type":"box","text":"of the bond or the Fund purchases the insurance. Insurance is expected to protect the Fund against losses caused by","page_number":100,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"3ae52a3a-8ae6-4a02-93ec-4468216b0f33","block_type":"box","text":"a bond issuer’s failure to make interest or principal payments. However, insurance does not protect the Fund or its","page_number":100,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"a70308e4-d419-4b32-950c-a282bd3b8fea","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":100,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"a48f6f3d-e869-4716-bab6-24a4c046d899","block_type":"box","text":"insurance company does not make these payments. In addition, if the Fund purchases the insurance, it may pay the","page_number":100,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"66d4855f-627d-4045-9b1e-14d7a3f51c81","block_type":"box","text":"premiums, which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims paying","page_number":100,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"d959602e-89b5-4d3f-935e-df0f921a19d5","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":100,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"046d5c7c-da33-4627-9c25-e10eb097bea7","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":100,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"a202e29f-8c36-4b3e-bf9a-a95537f0f57a","block_type":"box","text":"insurance or insured bonds. If a bond’s insurer fails to fulfill its obligations or loses its credit rating, the value of the","page_number":100,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"9332a927-d9a3-41a1-b653-9df262460e50","block_type":"box","text":"bond could drop.","page_number":100,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"e079dd53-e643-4fb2-bdcf-0a60f0805ab9","block_type":"box","text":"Build America Bonds.","page_number":100,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"fccc5aee-5bf7-428a-8cff-283e3d554b7e","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":100,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"16ff2d74-897e-4211-9226-bd8e2666e27b","block_type":"box","text":"income tax credit; however, the issuer of a Build America Bond may instead elect to receive a cash payment directly","page_number":100,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"0a2c9f80-84cd-46ce-8792-cba1e03b3d07","block_type":"box","text":"from the federal government in lieu of holders such as the fund receiving a tax credit. The interest on Build America","page_number":100,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"0383fbaf-de76-47ce-8f41-2b4f4f9f5f2e","block_type":"box","text":"Bonds is taxable for U.S. federal income tax purposes. If the Fund does receive tax credits from Build America Bonds","page_number":100,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"ca5808a1-8335-42a5-a986-f0b76dd2e31c","block_type":"box","text":"or other tax credit bonds on one or more specified dates during the fund’s taxable year, and the Fund satisfies the","page_number":100,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"f6c6c6f3-cfad-454e-ba91-b8f63f128a48","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":100,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"bf47f66d-91f2-491e-819f-621f98c7eb44","block_type":"box","text":"shareholders tax credits otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond","page_number":100,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"da8800c8-dac6-4d48-8d7b-d98f97ecafdb","block_type":"box","text":"is defined in the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":100,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"d19c7f6e-1f38-4120-ad94-5eb873afcce2","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":100,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"b6554ab4-9c85-4f41-b914-1700cf2fff4a","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":100,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"edb3cb9d-307a-4826-9926-51e83be56b0f","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":100,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"b72d2311-b461-4625-8094-77751252fcf1","block_type":"box","text":"would be required to include in income and would be entitled to claim as a tax credit an amount equal to a","page_number":100,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"c8329f3d-a325-4a2b-a415-fa3f60144ce1","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":100,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"3f37ad66-69ee-4e45-b4e5-ffcc30aa529a","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":100,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"e2b6ccf6-cd23-4f2d-828c-55167787bbc0","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":100,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"bb9660d5-ffba-49c0-b8ae-85ebea746826","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":100,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"a1b936bc-b01c-4573-be9e-0e2ba906de27","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":100,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"0fd9216a-7508-4eb5-8c7c-0dfbfa50dae2","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":100,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"17578d33-50bc-4790-bb73-3a6c45ec9e0c","block_type":"box","text":"II-62","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dbe4369a-add2-4145-b299-e0092c22eb71","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":100,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"61ae4f08-257f-48c5-8fc0-3eb56e365e55","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":101,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"2e8e59eb-223f-4ac4-8868-0de1fc859ce5","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":101,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"d319488f-9058-4d5c-a8c2-38ea13d9f563","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":101,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"50cacd7b-a83d-4bb4-9d4e-296523e2dd4f","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":101,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"604fcb4d-e2c7-4136-b204-1a6b366a47f7","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":101,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"ae4e399a-d7ab-4970-9b10-13dd03f9843e","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":101,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"eeebe481-2d4f-40e7-ac99-71bb828c2925","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":101,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"2ea3ea9e-24ce-4976-9153-9320743dec75","block_type":"box","text":"their face value to the sponsor (","page_number":101,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"9dfe1365-4f83-47ac-aa8f-7ae74ac014ce","block_type":"box","text":"e.g.","page_number":101,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"121a260f-85df-4a12-a449-fb15be7b226a","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":101,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"a8f44ae4-5bd0-48d3-a6dc-8bb607eef9af","block_type":"box","text":"periodic fees equal to the difference between the securities’ fixed coupon rate and the rate that would cause the","page_number":101,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"4d3695de-7b5c-4321-b099-506dc10622fd","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":101,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"8a7aa5e8-e61c-46c9-aad5-5d5d96cbdc85","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":101,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"f5aa10e9-0aaa-4c3f-b6ae-76142a738a1c","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":101,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"ade1becb-2b83-43f0-add4-5e627886fcee","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":101,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"0a93b1f7-8bae-4d28-9543-c8b520005a82","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":101,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"77856b35-62e4-461b-86b2-8ed2f11678e9","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":101,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"b9cb7a33-4059-4dbc-b501-b73bfe35a49b","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":101,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"44870d82-0461-4506-8ca5-5d24e0e478ed","block_type":"box","text":"which give the holder the right to receive payment of principal subject to the conditions described above. The IRS has","page_number":101,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"7a0aa085-e37b-4488-982e-5193c4f1bddd","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":101,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"4d9fc901-660c-4781-8e53-511af4b4d8ab","block_type":"box","text":"or custodial receipts is tax-exempt, and accordingly, purchases of any such interests or receipts are based on the","page_number":101,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"5433fa90-c80f-46a1-907e-156a63b67591","block_type":"box","text":"opinions of counsel to the sponsors of such derivative securities. Neither a Fund nor its investment adviser or sub","page_number":101,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"eb48f976-7de0-4716-8946-a4e52bace378","block_type":"box","text":"advisers will review the proceedings related to the creation of any tax-exempt municipal investments or the basis for","page_number":101,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"1b930b84-35bf-46b7-b6ab-e4a6e3b9f1d7","block_type":"box","text":"such opinions.","page_number":101,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"d58e70dc-582f-4f2c-ac2f-c51994427fba","block_type":"box","text":"Operational and Technology Risks.","page_number":101,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"6cbf8a6b-2c5e-4c18-81d6-fbf8a15af715","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":101,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"acbe3fa8-32b5-4740-ac42-47a324a59c21","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":101,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"187077b9-2a99-45e6-8af2-98f747f8f1cd","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":101,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"1857fdeb-bb4c-4a46-8fc8-8e152735bf79","block_type":"box","text":"learning (“AI”), which may result in losses for the Fund and its shareholders or impair the Fund’s operations. These","page_number":101,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"839be509-df51-41a5-af2d-c236c139d4c1","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":101,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"089f5022-9ba0-4611-9542-c3e13b92b78b","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":101,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"b08b4ed3-baaa-494a-932d-de893355c6f4","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":101,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"cd0fa15a-fce1-4c4f-b69c-3dd9e233e26d","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":101,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"92eeedf5-f446-41a1-b16c-491c0fbd8972","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such","page_number":101,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"2bb13e98-cfb2-4784-9d20-26271f46c7a3","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":101,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"aa48ac0f-00db-474c-a050-e053f820a7b1","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":101,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"f60e2a58-063e-44c8-8ad1-d3a286cbaa5d","block_type":"box","text":"Fund invests, the Fund or any of its service providers. They include, but are not limited to, gaining unauthorized","page_number":101,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"348c836b-24d3-4c8d-9c9c-811cf854dd83","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":101,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"bfec5f83-cf83-4dca-bcb2-6331ee969958","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":101,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"27202bae-d30b-4c7f-b871-45ea6e7b749f","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":101,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"331f1202-5929-4543-b210-b588f9e81094","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":101,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"49315d0a-6caa-461b-b46d-6ee1f99a9d89","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":101,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"a099f8d8-1aaa-40e2-9f19-d92a402fd93b","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":101,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"4bd358d0-521a-4c39-936d-5eb13440cfa4","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":101,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"89af6f46-8a41-47d8-862d-66397e6f2e36","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":101,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"46a25963-b9a8-46cf-9e25-4871e97c2d43","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":101,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"1fa6cd9e-74b9-4224-b546-7b7036a692d0","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":101,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"2aa36e2c-3849-42aa-adb4-64fff0adc5c4","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":101,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"b9d623a9-bca9-42f4-a2f0-e5d01aa90c5a","block_type":"box","text":"upon by the Fund or its service providers, as well as market events that occur at a pace that overloads these","page_number":101,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"de4166e2-c64c-4603-8f18-9f7f618bfef0","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":101,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"4e75d037-2481-4936-a696-f468f2606d01","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":101,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"054cd033-a24c-40e9-968e-0737dcd3e710","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":101,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"02ad86c1-e8d9-4535-8065-17f6b84360f5","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":101,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"86a65e16-28b4-47f2-8cef-b118085cff2c","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":101,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"f74bb278-b60e-4d46-8622-f658ffef558d","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":101,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"15efa941-f650-475b-8013-fcd0df8b397f","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":101,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"364e0c46-5c8f-483d-83d9-1f56f273ba73","block_type":"box","text":"infrastructure assets.","page_number":101,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"1d0dbccf-796f-439c-8176-f158db00498f","block_type":"box","text":"II-63","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"400b920d-1aa8-4251-8e5c-258ea40df5b0","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":101,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"e97b665a-e2fb-4961-bcee-566c93ec9788","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":102,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"890f558b-950c-4af1-87bb-b59417e82d68","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":102,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"30bda037-e326-41d7-af26-9f55aa4ff160","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":102,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"337121c4-6685-4932-ba85-1be7498695ee","block_type":"box","text":"or services.","page_number":102,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"769023a4-b703-46c8-bfbd-9bfe1489f305","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":102,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"50fae928-89ea-4a9a-8b72-4e6931167e3d","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":102,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"006e2f92-9a2c-4591-a1d4-df78389d0989","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":102,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"560c455a-873a-49ef-b094-12fc2d7bc2ae","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and analysis of large","page_number":102,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"1e7a7a92-5a51-432b-a467-92c031fd8272","block_type":"box","text":"amounts of data, may incorporate biased or inaccurate data, and it is not possible or practicable to incorporate all","page_number":102,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"7c83dac8-3941-44fc-a660-bf72a781c111","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":102,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"74a7e3ea-397b-4b1a-98a7-d84049734550","block_type":"box","text":"contain a degree of inaccuracy and error, or could otherwise be inadequate or flawed, which would be likely to","page_number":102,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"c3ffeed4-fa86-48f1-abba-0dd4a811267b","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":102,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"23d8ba60-a7ed-41ad-8e1f-87c5623bf431","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":102,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"cd782d53-ff39-4647-8d2e-d989f9ee8fca","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":102,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"9a965b40-e7b9-42a0-b3dc-e8ddcc7eed0f","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":102,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"7af201ef-697c-4bb1-9f34-2bf874b5288e","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":102,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"3db8e597-5a5a-4094-9751-028fcf823403","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":102,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"559a67ce-3762-47d4-a066-ea4e78ca0cc4","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":102,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"403d32cb-94c0-46a4-8a15-740c43033e00","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":102,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"630f2de5-5cea-442d-828f-9cb65c0da1b7","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":102,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"f1e2ad32-33e7-49e1-a71a-703992a98213","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":102,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"ca6c9336-82c0-4033-9700-6bb22cba3e80","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":102,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"b568c9ec-fbe4-4e29-be37-701b982f28d2","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":102,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"d87eae17-22a2-4f73-ac42-3a690356ff39","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":102,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"562eeade-74d2-44c6-8f98-caafa92b91dd","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":102,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"6d28bc4f-322c-421d-a457-1d2a9a6012c2","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":102,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"eef02774-9c33-4c6e-90c1-3db728a3c047","block_type":"box","text":"and it is impossible to predict the future risks that may arise from such developments. The full extent of current or","page_number":102,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"2a8a0616-ecd9-4be3-b4ec-c6c7c894fdf0","block_type":"box","text":"future risks related thereto is not possible to predict, and the Fund may not be able to anticipate, prevent, mitigate,","page_number":102,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"74086b77-54e3-4a1d-b0d3-c73e2176f0db","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":102,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"0f14acc6-c00a-41e3-876a-db6bb42dc736","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":102,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"2d41fefd-d883-4e36-b736-c81e8c7f0650","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":102,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"1e57660c-eea4-486f-a084-5cd365f910b1","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":102,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"15715e10-4e31-4863-a455-3ce3c883d994","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":102,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"11b24554-d9eb-4b1b-be48-46f9c2e0119a","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":102,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"c0a4ef1b-e3fb-414d-9279-06af0efd75ea","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":102,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"6b5eb77d-cdaa-47fa-b730-645757ccaec1","block_type":"box","text":"may emerge in the future; that such plans and systems may not completely eliminate the occurrence or mitigate the","page_number":102,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"b47105d4-6472-4d0e-83de-9e174934ba59","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":102,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"baec44f8-d0fd-4fce-ac31-5570f860d673","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":102,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"1cee1953-52d7-45e8-b8f2-d3352633bbb2","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":102,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"8b9269ee-b310-4027-ad6e-32be5cdae227","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":102,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"4fb6aa4d-d425-434b-8c0b-7386792a075b","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":102,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"37d32feb-df25-4ef2-a669-b4a13c815884","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":102,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"3f10d052-92ba-46e6-97bc-3f086a657ca3","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":102,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"dfc2a1a6-0d18-41a4-8e9f-30ca4a7b62f5","block_type":"box","text":"resources to monitor and implement required changes.","page_number":102,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"bd4020fe-9697-4315-98a6-e61e3ab1fc18","block_type":"box","text":"Participation Notes.","page_number":102,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"0d2ff11b-72c2-43a6-b51d-62ebcab1d162","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":102,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"4c47dbda-7c12-4145-9f69-d533890ea9da","block_type":"box","text":"Fund to a return measured by the change in value of an identified underlying security or basket of securities","page_number":102,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"afffbd89-009c-4d81-be97-cab8b5381e39","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":102,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"c6b9a393-a2a8-4fce-9d4d-44f1f828b239","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":102,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"bcbba15e-ada3-480e-86cb-86d88adc9fbe","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":102,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"300824f5-6781-4911-b466-ed4c64df6f94","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":102,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"df44a608-ad9a-47a3-81ed-237874e8ea17","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":102,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"1c9019d1-6ef0-44aa-bef3-7310e9c76457","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":102,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"5acb33fe-3ce3-4978-a7d3-54eea73d8a4b","block_type":"box","text":"security. In other words, shares of the underlying security are not in any way owned by the Fund. However, each","page_number":102,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"983560ac-99ba-46df-bf2f-1ac5f248a7f4","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":102,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"72ad372b-fba1-4797-9da4-2671a33bfb63","block_type":"box","text":"II-64","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cf9a2791-19b8-4ce0-b204-3e03b64982f0","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":102,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c182b114-a275-4471-9fe9-3b4d5feb17e2","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":103,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"679b14d5-b015-416b-9a31-174a6c7d81a1","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":103,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"abbde5d1-f86c-46ec-9baf-b1713c77b240","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":103,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"78f8e418-4ecc-40de-90a6-3f5c8a19293e","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":103,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"baa60761-993f-4c2b-b5f2-cb1dd6175b10","block_type":"box","text":"obligation. A Fund may, but is not required to, purchase credit protection against the default of the issuer. When the","page_number":103,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"fc24e06a-710f-4dba-926e-4beb4fc0699d","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":103,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"8806bba4-f2d1-458f-82b0-ad0c86e40aeb","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":103,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"15e517b7-77d6-4fb0-a63d-f963f8495edb","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":103,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"f1ab04de-da84-46c8-82f6-ea1360889336","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":103,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"8c0171f3-d09e-4627-bfed-3d308b6628c8","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":103,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"dc5691c5-131d-4a94-8064-3962c37febcb","block_type":"box","text":"Portfolio Turnover Rates.","page_number":103,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"d2295f6e-78a7-48ee-84d0-aead6aa2f0fe","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":103,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"2c32acb3-4370-480e-a9d0-bf866ee1f981","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":103,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"cfcb5003-27ca-4eb5-bce0-8185e923f7c5","block_type":"box","text":"Funds will use an approach to investing that is largely a passive, indexing approach, such Funds may engage in a","page_number":103,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"26e4d42f-0244-46bf-ae00-90200cb7a019","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":103,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"e5384cde-749d-4844-83d9-9daf68f20f4c","block_type":"box","text":"limiting factor when the Manager considers whether to purchase or sell securities for a Fund only to the extent that","page_number":103,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"dd1150f8-bbfd-4f4e-877f-ea85f61654a6","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":103,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"d2d9e74a-86a5-4249-ad64-b1132ce1d593","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":103,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"376b0b25-6bc5-40b9-a7fa-188a781ea4ba","block_type":"box","text":"i.e.","page_number":103,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"ae761a78-ba4f-4109-8a33-442d4b3059d8","block_type":"box","text":", 100% or more) may result in","page_number":103,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"838ce9a0-babc-4569-ae64-6969557cdf3d","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":103,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"6964f240-80af-439e-83e5-158d29328f6a","block_type":"box","text":"costs on the sale of the securities and reinvestment in other securities. The sale of a Fund’s securities may result in","page_number":103,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"b9966c79-5d5a-495b-92c0-3390cc2c99a2","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":103,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"b4c6efc6-937d-4310-ba48-f33de3b00c1c","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":103,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"9aabb6cf-0a03-407b-968c-7cd05cbbef10","block_type":"box","text":"Preferred Stock.","page_number":103,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"6aa70658-e46f-4993-8a3e-86ea5a61aea2","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":103,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"19dec036-3dab-4fef-940f-f2d46c11e8eb","block_type":"box","text":"stock in liquidation (and generally dividends as well) but is subordinated to bond holders and other creditors in all","page_number":103,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"35ef437f-5e6e-4d25-952d-4853fa393006","block_type":"box","text":"respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element","page_number":103,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"ba5a810c-2399-4fb1-9a6d-fac4b2f04447","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":103,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"f8df8d70-7c5b-463e-b471-de43f4fbe701","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":103,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"4a06f4a9-b5f2-4808-8148-ac6a8487c307","block_type":"box","text":"other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value","page_number":103,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"4fdded7f-b682-4749-afc8-1f9db90879e6","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":103,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"de7c68e7-8e55-487c-a2dd-3423cbbb813e","block_type":"box","text":"payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors.","page_number":103,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"6270b33b-d03b-41a8-93f8-99af23b0b64a","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":103,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"343fc6df-fa55-4b31-9b01-1b5ba4462e21","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":103,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"2f2f1455-d92f-4edd-8551-88506460cec1","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":103,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"699fc010-9dc3-4a11-9cb1-7786c3cd88fe","block_type":"box","text":"dividends that are exempt from regular U.S. federal income tax. Such funds in turn invest in municipal bonds and","page_number":103,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"09e5d4ce-901e-4ae3-bb19-508655256ad4","block_type":"box","text":"other assets that pay interest or make distributions that are exempt from regular U.S. federal income tax, such as","page_number":103,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"0bb53c67-dd31-449a-adcd-5246b8e5a823","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":103,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"cf9f765d-23f7-4318-b38e-3d24be8c6a4f","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":103,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"5c872a39-35e1-453b-b6a9-692bd95ba5ee","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":103,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"1cda02c0-2e4a-4602-b9b0-9689844e8178","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":103,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"74df7ff2-bb55-43dc-b788-6044e02b7d88","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":103,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"df41a7a4-9bb5-4bed-9a72-89cb0d0b358e","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":103,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"631dbd3a-5854-4b3d-829f-a986328a039e","block_type":"box","text":"Trust Preferred Securities.","page_number":103,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"7af0a570-4c80-44e4-b46e-317fe11a6d14","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":103,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"945b00a1-7f31-4fb3-ace7-dfd856ee95fa","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":103,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"9ecd7c44-f5c7-42a7-b6ff-4388e5028ad6","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":103,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"54fadb86-bed6-4880-8a10-7b2ec3c94845","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":103,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"a6271faf-5c54-4c59-896d-7837155e6cfd","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":103,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"df6f1dcd-565d-4eab-80b7-dea1364da98f","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":103,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"ae7e6e00-f24f-404b-8799-b30c637720a7","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":103,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"ebb6f62b-17ea-40ed-9511-5668de3c5598","block_type":"box","text":"securities typically permit an issuer to defer the payment of income for five years or more without triggering an event","page_number":103,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"ecf9bc99-6bb3-4de3-9695-2a3601f10336","block_type":"box","text":"of default. Because of their subordinated position in the capital structure of an issuer, the ability to defer payments","page_number":103,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"a3196d3d-2ec5-48b0-b958-5cea271ac268","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":103,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"4f6813b2-79d1-41f6-a10a-632e24197a5b","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":103,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"e183f68c-db3b-4d90-a5d2-2f7e0daab0bc","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":103,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"5bf4369d-fc1a-4082-94b5-455319b89ed3","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":103,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"7f4d674c-a633-42a1-9850-7ba04c7c0dbd","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":103,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"c4d24f1d-aecd-4bfb-9b56-4436be960b79","block_type":"box","text":"®","page_number":103,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"03998e0b-fff9-46f6-ab35-bc34ac1e3546","block_type":"box","text":"”); monthly","page_number":103,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"1c1fe5b7-fedf-4deb-ba05-cf1a2ad5f4ab","block_type":"box","text":"income preferred securities (“MIPS","page_number":103,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"e8cd56ff-3027-48a4-9905-5bbcbb7a4a5f","block_type":"box","text":"®","page_number":103,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"c9ce28cb-2d7f-4a1b-bc3b-1224756ffe2a","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":103,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"07f3af8a-e7e4-4c5f-a2b6-f482a7f49404","block_type":"box","text":"®","page_number":103,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"16596a15-ce34-40a0-a086-ba8377a0d8ee","block_type":"box","text":"” ); quar terly income debt securities","page_number":103,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"4d6619c6-1463-4260-8ab4-206f96fbbc89","block_type":"box","text":"II-65","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8ccf0ae8-1f6d-4438-90f7-9f2181ad4e3b","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":103,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a754305b-1ee7-4dfb-830f-2176b4b013d7","block_type":"box","text":"(“QUIDS","page_number":104,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"ef55806d-31dc-4d75-a604-8b0f05e80df2","block_type":"box","text":"®","page_number":104,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"e401cbcc-a0bc-4363-b25e-4497570ec51a","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":104,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"0acaa63c-b71d-4288-91fe-f62ba1c579fb","block_type":"box","text":"SM","page_number":104,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"29e6787e-c5eb-45e8-9899-fbe82d3b7810","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":104,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"6ef179a2-5fe9-4c65-ab9c-0a0dc7be916e","block_type":"box","text":"®","page_number":104,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"d338c5ec-f9ba-417f-83d7-f39c0b5dd60a","block_type":"box","text":"”); public income","page_number":104,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"9cc2b9d8-4142-43aa-aede-11f23f298d11","block_type":"box","text":"notes (“PINES","page_number":104,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"29c72db8-0fc7-473a-9f8d-4ed822ff4ef8","block_type":"box","text":"®","page_number":104,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"f9456292-fa64-49c7-a221-c97cf9a6324d","block_type":"box","text":"”); and other trust preferred securities.","page_number":104,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"eac4bc13-2b4f-4e95-9f52-a75c32db8d7a","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":104,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"c5d59888-f174-451c-b6a9-634e5bb2c479","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":104,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"5372a158-78a2-4c23-8095-a957b2662d79","block_type":"box","text":"the issuer’s option for a specified time without default. No redemption can typically take place unless all cumulative","page_number":104,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"1e1e57a4-4e9b-4b80-9b10-c0321fb89fbf","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":104,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"1f84dae7-b07b-4c40-9798-e30469bbdaf0","block_type":"box","text":"regard to whether all payments have been paid.","page_number":104,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"0fa9e56e-83f5-4b47-b90f-6710b62515e3","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":104,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"0c861514-f5a2-44b7-a2ea-fe4b70358cf1","block_type":"box","text":"companies and are not a direct obligation of an operating company. At the time the trust or special purpose entity","page_number":104,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"4de667d6-6f64-406e-a579-c41c66bd974d","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":104,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"639f5ae6-33a9-4c42-8f11-6c045ebd9df6","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":104,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"e799535c-2a44-4081-b496-f1a26c6d0e8b","block_type":"box","text":"purposes the interest paid on the debt held by the trust or special purpose entity. The trust or special purpose entity","page_number":104,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"213a8e42-00f9-4c14-a15d-c576da702c01","block_type":"box","text":"is generally required to be treated as transparent for U.S. federal income tax purposes such that the holders of the","page_number":104,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"5506ed3b-c1f8-41c7-a27d-aefea8d4aa57","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":104,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"8c041077-f0e0-4936-b745-c2ad57b0d513","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":104,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"1ab4a56f-61d9-4697-84c1-27837c7d49bb","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating company’s debt","page_number":104,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"a7ad3652-01ed-4149-a678-b9cecceaeb8e","block_type":"box","text":"and would have priority with respect to the operating company’s earnings and profits over the operating company’s","page_number":104,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"06278094-ef19-44f8-8903-9de8231c3e0a","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":104,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"55136cd5-ad8c-4c1c-8249-b2f326289c63","block_type":"box","text":"Typically a preferred share has a rating that is slightly below that of its corresponding operating company’s senior","page_number":104,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"b4226fd1-bbc6-4a78-b7cb-d907111ff91d","block_type":"box","text":"debt securities.","page_number":104,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"218d6fbd-c553-4fe9-a1f5-eb3ba48d29b4","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":104,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"c7eb8a43-f174-4a6e-a0de-23b8110ea599","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":104,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"faf1bef0-76c8-43d9-8ffa-9aaa54d2dcb4","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":104,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"6e8bd9a2-5173-46f1-aecf-6a9ddeb325f5","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":104,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"7dfee26b-4fc5-432b-ac97-4c35456cc882","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":104,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"0b273c25-8c68-4213-99d7-664ff71a34d3","block_type":"box","text":"i.e.","page_number":104,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"a2a894e5-4126-451b-a2a2-0661b3f33ecb","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":104,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"0bae49f1-e831-43fc-827d-c80975e331fd","block_type":"box","text":"buildings.","page_number":104,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"c43a0a7c-1b68-47b0-af29-f80e48e438ce","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will bear its","page_number":104,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"869f4be6-f501-4cd2-a762-17aa4276c4e9","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":104,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"9c0caf7a-2cca-4a3b-82ce-bb52c5e2d9a4","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":104,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"c599f1a1-5edb-4282-8813-2bf0c2736abb","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":104,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"18d46b72-af3d-43aa-a1cc-671586592260","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":104,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"5e42c8ab-0d7b-4f6b-a495-a9c2a5279e11","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":104,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"6e16b719-95d9-49ba-914e-4439ace855d9","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":104,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"6d32863d-76d4-4662-9e31-b1be039980aa","block_type":"box","text":"estate industry in general. The market value of REIT shares and the ability of the REITs to distribute income may be","page_number":104,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"95c09a2b-129e-44f9-bec9-986cef044a1e","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":104,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"df4d8ab2-b14e-464d-98f6-4bdfecd6034d","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":104,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"d1b7d245-3166-46dc-9b3e-9d4c5acc6366","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":104,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"ede0fd4d-e4f1-49c7-b733-ca6eb6bf759a","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":104,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"794f1b1e-f4a2-4fa2-9a32-dde28ddb0fa4","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":104,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"b7b0633f-cd4a-4099-ace2-3b7a449165aa","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":104,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"6a6dd9de-0a46-4710-a361-9d627f7243e5","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":104,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"be2055a5-ae6c-4c69-be88-74173b0f81ca","block_type":"box","text":"zoning laws and other factors beyond the control of the issuers of the REITs. To the extent that assets underlying a","page_number":104,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"ce03b80a-7a26-4593-8f52-9b8935a2bc23","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":104,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"703dd913-c3eb-4fe1-aada-2cb5debbdf67","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or return of","page_number":104,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"e99ff815-bca4-4952-86f7-c41bb2be456b","block_type":"box","text":"capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent","page_number":104,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"2cfa73d5-a3e8-4811-84c2-f2f03486125b","block_type":"box","text":"application of the Fund’s investment strategy results in the Fund investing in REIT shares, the percentage of the","page_number":104,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"a49c93b1-0861-4ccd-a1cf-ecbbe05df7d6","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":104,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"70fe4190-dd90-49e6-b48a-e15778810f94","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":104,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"b592430c-85d5-42a4-8fce-c3ced155f87c","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":104,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"e2f2ec86-32d9-455e-b8fe-5eb4f9096b23","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":104,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"232a1f51-ffe1-4265-83eb-1fde7d68ff11","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":104,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"9b4fc60a-27c6-4429-a7dc-1178c4ce69e9","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":104,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"2a097941-20a3-4b48-a18f-0dff90054a3e","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":104,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"2d1f8af3-b592-4fda-a058-32c1aa1586b9","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":104,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"4b8fd2e1-ac38-4922-8984-4d4aa8849356","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":104,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"9261b097-162b-431e-b4ec-82d5018ca64a","block_type":"box","text":"investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity","page_number":104,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"0aa8d5d6-724a-449c-99cb-8f64a6801397","block_type":"box","text":"II-66","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e009bd2e-97f4-4841-91a5-48a69d099a20","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":104,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"ec2adcea-1843-4d86-b7e8-bd233cc88de4","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":105,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"938799c0-37a8-499c-b9d2-a680f6d1b3af","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":105,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"b1f4c324-6976-40db-bb8b-70c395aafacf","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":105,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"7f10aa30-ad55-46cc-81fd-18d7e64e000e","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":105,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"02e5c51c-0d50-43ab-98e4-cc1b1d7fe259","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":105,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"322d0844-d55a-4374-b05d-3a93c48c6b5a","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":105,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"7e7c361b-3f98-4c3e-9a91-74a7e07cfe10","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":105,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"fec5a828-2330-4df5-be6d-18bbfa281720","block_type":"box","text":"trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger","page_number":105,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"315e4c28-ca83-463d-9834-b1a3ac34b4a1","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":105,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"598ebd6c-8d2d-44b6-b85e-cff2fedb116f","block_type":"box","text":"larger capitalization stocks such as those included in the S&P 500 Index. The management of a REIT may be subject","page_number":105,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"e880986d-c968-460b-a76c-7e6a60ab44a2","block_type":"box","text":"to conflicts of interest with respect to the operation of the business of the REIT and may be involved in real estate","page_number":105,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"a242f080-4d77-414f-9062-780d29748b16","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":105,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"d6b8bd8a-0af3-4d2e-ba96-85de3929cb58","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":105,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"d8bf14c9-1647-48e9-96c3-9d1975b636b4","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":105,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"5cd803c1-fa3b-4607-87f0-65750125b4b5","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":105,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"e4693507-4236-4758-9b6d-51009d55d5ce","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":105,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"13fad4ea-d6ce-4f1c-8f43-d5ad6c4245d7","block_type":"box","text":"general market conditions, economic trends or events that are not specifically related to a company or to factors that","page_number":105,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"984be0a0-efa7-43de-b4c8-cc2a28541f8d","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":105,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"0cf39627-52ac-4436-99bb-2be8f69ee6d7","block_type":"box","text":"group of countries, region, market, industry, group of industries, sector or asset class. The success of a Fund’s","page_number":105,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"56ce719b-6c62-41b9-807b-d50aaac34eb0","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":105,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"bdb7d698-4ebd-40a9-b013-773a932ab3af","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":105,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"ab0ec3c6-8d28-4762-9730-5ea7684aeb76","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":105,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"15d022ac-9757-411d-93c8-5bed9ea48b0d","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments. During a general","page_number":105,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"2db5a30c-d3a1-425c-b1dd-548728cbe287","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":105,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"b220b8a2-91a0-46d1-acf7-b7416d3ce37d","block_type":"box","text":"affect the level and volatility of securities prices and the liquidity of a Fund’s investments, which could impair the","page_number":105,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"fc8a6845-de1c-4b0e-a084-77e481d44514","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":105,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"146c3358-7f61-42d2-9774-cc36efd8df08","block_type":"box","text":"affected by the level of volatility in the financial markets; the larger the positions, the greater the potential for loss.","page_number":105,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"18bb7e9f-a5bb-431b-adb2-0c6f80717a9b","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":105,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"f389fb78-473a-45a0-8d76-ecf56f16eb9c","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":105,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"9a256f72-4303-4816-9fab-7b2f19afd567","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions and there can","page_number":105,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"474bc119-82ec-4b99-8aa8-9a11e3292b0c","block_type":"box","text":"be no assurance that a Fund will not suffer material adverse effects from broad and rapid changes in market","page_number":105,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"99917d33-37a9-4bdd-94fd-7b4910988ced","block_type":"box","text":"conditions.","page_number":105,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"bad9dbf2-ee04-4c6d-9925-14e397b70220","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":105,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"e037ff77-5fc1-4183-be83-bdcb577e9d71","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":105,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"950f0571-7065-4cc9-827e-3c2b1f50575e","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":105,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"cc0b792d-b263-40c9-8bd8-958b7ae9f679","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":105,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"d3c29067-f1c7-4061-bbec-f79875064256","block_type":"box","text":"of these policies is still being considered, but the equity and debt markets may react strongly to expectations of","page_number":105,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"171e971f-3650-4d35-9308-00391327df01","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":105,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"f785be58-6c27-44b3-bff2-445a0c65757d","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":105,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"3e2dc378-f85c-4415-9d69-8e8b258d4cea","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":105,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"b69b5538-883e-4ae8-b2c4-dc2bdea2c531","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":105,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"147ab278-3b8c-4412-9858-708e9d0826cf","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":105,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"91e4a178-cfd3-4714-8f85-1785de4485ad","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":105,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"1de1b87c-99f1-43a9-8db9-a0dac2cd04c0","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":105,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"02126554-5bc1-4839-b7a4-f07542bd498a","block_type":"box","text":"affected by such events.","page_number":105,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"8b0dc64d-f0f5-49d7-866c-aee48fe8f162","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":105,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"a494638c-cfeb-4d62-abfe-5da84e0ae091","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":105,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"d6a77c0e-8ad3-4cfc-bc07-63e84b6e5257","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":105,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"2fb36dd2-1a68-4c50-ae78-aea1cf6c6cb6","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":105,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"70276d6b-ee73-4950-9d86-571923e7033b","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":105,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"d264010b-acab-487a-9105-5af62ef55788","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":105,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"894d2d12-e4f0-4e89-8635-df07e3c6ee52","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":105,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"8bee1f4f-9bec-4c9b-a635-e7fc6f479f81","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":105,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"05a86219-d409-44e6-96e5-478dbafa9829","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":105,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"a3838924-afce-41ab-9f3b-04391f9f2587","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":105,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"31fc6f5a-ff8e-4045-ba7b-1a1ef81b988c","block_type":"box","text":"branches of the U.S. Government, the U.S. Government’s inability at times to agree on a long-term budget and deficit","page_number":105,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"25bdd176-15a9-4a03-89dd-2be056130841","block_type":"box","text":"reduction plan, the threat of a U.S. Government shutdown, and disagreements over, or threats not to increase, the","page_number":105,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"1dc1444e-1f72-45d5-b1d1-b4c6b94f4009","block_type":"box","text":"II-67","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2da737da-8e3b-438f-90d9-43e343ff1af6","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":105,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a02399fe-afb4-4914-9cf6-9ef96f7d8957","block_type":"box","text":"U.S. Government’s borrowing limit (or “debt ceiling”), as well as political and diplomatic events abroad, may affect","page_number":106,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"f5eec0e3-5d64-40c7-842c-0439cdf7eb46","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":106,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"bed2b4a1-bf57-45ca-89d3-5fb326163796","block_type":"box","text":"suddenly and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns","page_number":106,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"1a69531b-ecaa-40cc-b165-d1a0730f22f7","block_type":"box","text":"about the U.S. Government’s credit quality in general, could have a substantial negative effect on the U.S. and global","page_number":106,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"0afad396-a9c1-4a26-8b78-6d4531833b83","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":106,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"9699fd26-3090-4e51-8e53-b108ec5cd44e","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":106,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"fbd40148-6590-41b5-ac66-b5c9080c390a","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":106,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"923ef091-1623-495f-9f67-ca5372e686e6","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":106,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"bfbc8950-2e3a-4d97-9ba7-f826dcebdab6","block_type":"box","text":"unprecedented event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":106,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"05ba75f4-85b3-4bca-a134-64969fb63bd1","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the Fund’s","page_number":106,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"a15d6418-9572-4639-b667-6414a8c98bb8","block_type":"box","text":"investments.","page_number":106,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"115d5af6-de1e-4839-93d3-3c5ea2955031","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":106,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"2c00aa9e-bf2a-4d76-b806-2eae315cd086","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":106,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"c3cec948-2109-4f55-91b3-6e9a8159b2d9","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":106,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"43ff6091-5812-470e-b683-3a0df67bb9d0","block_type":"box","text":"in the future, could affect the economies of many nations, individual companies and the market in general in ways","page_number":106,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"82ed5c85-a1c3-4a15-8da2-6813a2f9e01a","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":106,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"756f88bc-f9dd-40fc-af28-7f5e1f91dd0e","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":106,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"6cfc4e20-855a-4223-aa0c-677e3ef4b75e","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":106,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"f7e0799a-a103-4159-b8b0-e53c41a13b6a","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":106,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"dd7f3d21-e458-46a7-9898-efc1d72b0b47","block_type":"box","text":"Legal and Regulatory Risks.","page_number":106,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"69a41d73-920b-4ce0-8e0b-25d50955ad41","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":106,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"fcabc036-7118-4be5-abca-1146bd5e014e","block_type":"box","text":"jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some of which are new and","page_number":106,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"f7b983e7-fb7e-489f-a0f6-4e431f3bcfc2","block_type":"box","text":"evolving. As a result, the Funds and the Manager and its affiliates are subject to extensive and sophisticated legal,","page_number":106,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"7e4be7d5-9193-4f2c-81d4-786ce604ecc7","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":106,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"9a163671-a7f5-4869-bd06-a68b5592fa72","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":106,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"b4db9454-7b0a-4d37-a0e2-9f7cf1767f7d","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":106,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"9b5b6699-4286-4e0a-be53-8df3ea0c11fc","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":106,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"d236a59e-048e-48e9-8367-0f792b8dc896","block_type":"box","text":"changes to comply with current and/or new regulations applicable to the Funds and/or the Manager could have a","page_number":106,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"5fbe23aa-4a6b-4ebb-8c6c-8a123868cd81","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":106,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"a9841595-5b16-41af-8aac-e4db4a411e42","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":106,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"9eb63ed3-2fbf-40de-8982-45964285659b","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":106,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"80fb420a-3651-42fd-980a-f1bdb46bb928","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":106,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"c3229fa0-e25f-4b32-bf45-7a687ae33ce4","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":106,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"b5422a20-4fd3-4250-be8b-f1573ac0ff62","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":106,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"058fcff0-6f4e-42bb-829e-8d129b1fa06d","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":106,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"fd4343dd-8340-4543-b099-f52b3ac4b364","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":106,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"e6058a19-5043-4974-9f70-afd456a69031","block_type":"box","text":"Union, and the risks associated with trade negotiations between the U.S. and China, could affect the economies of","page_number":106,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"7afab2ea-3b48-4698-8f15-6171f1bf07a8","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":106,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"53c0d88e-658d-47b4-9b00-52db90ca4947","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":106,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"1f72e174-8b15-4837-81b6-4a39ecebf497","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":106,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"0098cc9c-d38f-471e-abb5-27d430759590","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":106,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"15f2108a-f3bc-4347-b4c9-e96c3cb24204","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":106,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"eaba9796-c93f-458e-b8a4-788aa011bee8","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":106,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"264785db-b112-493b-b435-4140e97b647a","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":106,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"551b5bb4-22f9-4b5c-a6d3-619286962d65","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":106,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"3bc12a01-0853-4e44-b36f-7435384b8da1","block_type":"box","text":"Geographic Risks","page_number":106,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"c269976e-88c6-447e-9adb-393e6c05f334","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":106,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"ef605350-2546-40f6-8659-230c946da311","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":106,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"75bd8cb2-ebd2-4bb1-a399-c7e191be56bc","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":106,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"6a22604c-4803-4c33-a8bb-ea0261dba1f9","block_type":"box","text":"addition, issuers may be impacted by security concerns with respect to a country or region, such as war and other","page_number":106,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"bec01976-71e5-44b2-8e34-a86b956dcb28","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":106,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"bfbf28e0-d3e2-4014-a092-7a52fbd5b3ae","block_type":"box","text":"affect the issuers, markets and economies to which a Fund is exposed, which may adversely affect the value of the","page_number":106,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"5566081a-4604-43e1-8bc4-75a7268ba16a","block_type":"box","text":"Fund.","page_number":106,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"12c2f855-a23b-466c-814d-7b74bbc88f28","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":106,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"c818219e-2d5a-450d-bae4-6d56f37b86e1","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":106,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"925ddc30-033b-4dc2-b5f7-356bdfc448a3","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":106,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"62cb3df9-5e8d-44bb-9d8e-f95f4dbb9692","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":106,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"274d3c7d-8881-4b1a-b94c-e7a4c5c88129","block_type":"box","text":"or any other changes or reforms to the determination or supervision of a Reference Rate could have an adverse","page_number":106,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"13afca40-31ba-460f-b706-69954762ad7f","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":106,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"0965aa92-b656-4a48-8267-38b93c2b0b4a","block_type":"box","text":"II-68","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d82538ba-a829-4dd3-b08d-9b7c6e6e1acc","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":106,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5d8a67b4-824a-40c9-99b0-2baafb1cd625","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":107,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"0bcbb1bd-6aea-4987-b375-18ef8b1b3e1d","block_type":"box","text":"imposed by a regulator or by counterpar ties or otherwise may adversely affect a Fund’s per formance and/or net","page_number":107,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"06f2002b-b86f-4396-8584-4168ea5283fe","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":107,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"57931224-8ba0-464c-9c35-8bacb473d1b9","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":107,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"7e755c81-7ba9-4b68-a996-336cccded8aa","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":107,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"9cc91549-29ac-4379-adf3-8417c57248a0","block_type":"box","text":"derivatives. Instruments in which a Fund may have historically paid interest at floating rates based on LIBOR or may","page_number":107,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"bd0d8ec9-4f25-40a3-a645-1387a1921691","block_type":"box","text":"have been subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a Fund","page_number":107,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"74626838-925e-4c4d-a136-6b3601225e98","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":107,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"2e1b5ea4-32a9-4c97-8ad2-42eba091f3cd","block_type":"box","text":"transition away from LIBOR led by regulators and market par ticipants as a result of benchmark reforms, LIBOR was","page_number":107,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"ca78de79-8fcb-42a3-b40a-38f00b8c8e74","block_type":"box","text":"last published on a representative basis at the end of June 2023. Alternative Reference Rates to LIBOR have been","page_number":107,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"54a1d9d0-26b9-4d9f-9f21-c38039f329da","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":107,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"80a940ad-e50f-417e-9991-20a554792bbc","block_type":"box","text":"e.g.","page_number":107,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"478f88a1-6043-40a0-94cd-2fd61ebe7bab","block_type":"box","text":", SOFR for","page_number":107,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"e9e1a835-c71a-49bc-bb8d-45873ebba0d4","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":107,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"f098c7c8-6668-46eb-bc2a-1eb9b060ca2e","block_type":"box","text":"associated with the transition may remain that may impact markets or par ticular investments and, as such, the full","page_number":107,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"619c941b-6eaf-4bd9-8e5d-2c34f29d841f","block_type":"box","text":"impact of the transition on the Funds or the financial instruments in which the Funds invest cannot yet be fully","page_number":107,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"98ad3211-f37a-43a8-ba3f-6a5531360f68","block_type":"box","text":"determined.","page_number":107,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"5ee313a9-259b-4091-b2c7-226595242ac3","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are","page_number":107,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"0f27d370-ae9a-46a0-8637-91e5dcebeaab","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":107,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"149770dc-cb70-493e-a7d2-9b41278b6d65","block_type":"box","text":"various sources. For each trading day, SOFR is calculated as a volume-weighted median rate derived from such data.","page_number":107,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"d93917e7-5eac-4dc5-82ec-b29a3a6e47ba","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":107,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"d62682f7-2d9b-4656-8b42-042594acaa69","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":107,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"fc533519-72b4-4c94-a856-0bbf7b37f5f6","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":107,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"c2514131-65c8-40d4-9f68-3f8567a3bfab","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":107,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"cf59a236-dac1-411a-9c76-1ea793484c7f","block_type":"box","text":"In contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is","page_number":107,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"39b8b6a9-aa05-4842-96bc-ca2f610eb31b","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":107,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"2707946b-2391-4a90-a104-a5431d31068a","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":107,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"a5af49bf-435b-4c83-8f37-c8cb04b7d090","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":107,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"1e213701-def8-4af7-aaa9-5d5f2c3b187c","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":107,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"812acd84-3b08-46d3-ba74-0f73b7dc1b7e","block_type":"box","text":"rates will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April","page_number":107,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"405f8c73-746c-4f12-8ee4-6278e6e5136f","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":107,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"c3c150e5-5998-4036-9a87-6c559443ecc8","block_type":"box","text":"history or otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or","page_number":107,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"a6bf13c7-1888-46b0-b112-11d6b6837f9a","block_type":"box","text":"other rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner","page_number":107,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"9cb43506-ae08-4a93-aa65-ad18aef685f0","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":107,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"dd7f8546-57b6-4256-99ce-d8c8afe5e6ac","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":107,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"3c3f5eb7-2b0d-4835-b4d8-811e9eda8583","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":107,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"8504947f-21a1-4b0c-8e7d-eea20942d81a","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":107,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"25f7beae-1f97-4979-81d8-ff00bd6442da","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":107,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"b824b9da-1a04-4f11-ab3f-1b7479271738","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":107,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"ed6a9e5a-40ff-4afc-8e26-6621beb67452","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":107,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"4c4442f5-0005-4a56-8d0a-404f2a56105f","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":107,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"62becea0-ac12-45b8-b85a-d4247463d4c0","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":107,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"ad6c3922-b203-4ad1-b319-9b44c46d9256","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":107,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"a53506c2-a7e0-49c0-a593-6cdff5899c1a","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":107,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"522ee8f9-f839-40a9-ac58-4af9df747324","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":107,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"a6c87407-39fc-4d07-b438-41509958e42c","block_type":"box","text":"consequences which cannot be predicted.","page_number":107,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"14dd6b47-adae-4816-8efd-526ef15a730e","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":107,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"b705423e-7157-48eb-9017-f0b6402b4ce5","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":107,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"ced40418-6eb4-4b2b-999c-3c83ed3071cc","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":107,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"4b5e17f3-7d51-483b-a1d5-3d058d9c8a29","block_type":"box","text":"the Fund at a mutually agreed-upon time and price in a specified currency, thereby determining the yield during the","page_number":107,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"a2210819-61f4-44f9-9448-91b4d27921c4","block_type":"box","text":"term of the agreement.","page_number":107,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"0409bc2f-f9fd-415b-b3ad-7420888d0f4a","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":107,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"a85209fd-2925-4ac1-bc1d-89d5639c5506","block_type":"box","text":"that securities are owned by the Fund and the purchaser receives any interest on the security paid during the period.","page_number":107,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"e5574b29-b479-42c4-9f90-3ca5f8979fd7","block_type":"box","text":"In the case of repurchase agreements, the prices at which the trades are conducted do not reflect accrued interest","page_number":107,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"087918b3-5e2a-4436-967b-123310b2d6d8","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":107,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"fa505f0a-e6b5-4d9f-83c5-1dc6fc701209","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":107,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"119c1c72-b673-434d-bf7d-b880be59898e","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":107,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"4cb2958b-0114-4df8-8c22-36bf12b019c4","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":107,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"81d4d4f9-324c-442a-9317-b156eab1a82f","block_type":"box","text":"II-69","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e9e32992-1e64-4fcc-b756-62fd5ec4f599","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":107,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"4920c291-2fa9-4884-ac9b-84f0835a847c","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":108,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"7f0ca338-3093-4954-9c0b-9d3b2dda4952","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":108,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"449fd1df-0c3f-408a-ba41-bc0fbd8fee39","block_type":"box","text":"currency fluctuations. However, in the event of a default under a repurchase agreement or under a purchase and sale","page_number":108,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"609c01ff-0fd7-4fc7-a5c5-649a269bca6a","block_type":"box","text":"contract, instead of the contractual fixed rate, the rate of return to the Fund would be dependent upon intervening","page_number":108,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"2a7cb693-d693-4659-8376-1e7cc0290ac6","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":108,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"bb75f3ac-5d01-4ed5-814a-2038df34ab04","block_type":"box","text":"securities. In such event, the Fund would have rights against the seller for breach of contract with respect to any","page_number":108,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"c579f11e-daba-402c-8b59-b963dc5699ba","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":108,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"aa2dc8ce-adae-4a76-aff4-39f8885214b5","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":108,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"e0dcd8e7-4407-4335-8660-5f2ee5ba36f6","block_type":"box","text":"longer terms, and may be construed to be collateralized loans by the purchaser to the seller secured by the","page_number":108,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"df3a3fff-0f7f-4d0c-8203-1c8f51445447","block_type":"box","text":"securities transferred to the purchaser. In the case of a repurchase agreement, as a purchaser, a Fund’s Manager or","page_number":108,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"3506d882-656e-43f4-a405-8a5ae9de78a1","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":108,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"58b8eb03-4180-4a62-a56c-d61d0fe5fb48","block_type":"box","text":"collateral if the market value of the securities falls below the repurchase price at any time during the term of the","page_number":108,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"3929fe57-7e86-42de-99e5-4cd499c0257f","block_type":"box","text":"repurchase agreement. The Fund does not have this right to seek additional collateral as a purchaser in the case of","page_number":108,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"56cdc202-cfe4-4870-8fb4-4de84d9cd86b","block_type":"box","text":"purchase and sale contracts. The Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities.","page_number":108,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"db612b23-090d-4c90-81b8-0c0c774cbae7","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":108,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"d89b90a4-f75c-40f6-a266-95deabbb402a","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury book-entry system","page_number":108,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"08561aae-75a7-4542-b405-1ed94ac7b337","block_type":"box","text":"or by another authorized securities depository.","page_number":108,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"c89c41f2-aa57-440c-86df-6e7dc624239d","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan, the","page_number":108,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"f20f6419-4c14-442b-aa55-3e91f930a2e9","block_type":"box","text":"underlying securities are not owned by the Fund but only constitute collateral for the seller’s obligation to pay the","page_number":108,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"d2dfd74c-6f21-4fd8-8749-18d93dbb4999","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":108,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"e6581577-a994-4187-af38-0e6803129a81","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":108,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"78737fbc-47f2-4624-a663-2dcb3854501d","block_type":"box","text":"applicable bankruptcy or other laws, a Fund’s ability to dispose of the underlying securities may be restricted. Finally,","page_number":108,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"6559ce54-08dc-4c27-b62d-56238e2572c9","block_type":"box","text":"it is possible that a Fund may not be able to substantiate its interest in the underlying securities. To minimize this","page_number":108,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"38f05b0d-2f65-4685-83f1-d211c11514cd","block_type":"box","text":"risk, the securities underlying the repurchase agreement will be held by the applicable custodian at all times in an","page_number":108,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"8507de56-6831-491a-9e46-93b3e8a7658e","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":108,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"c6735a0c-9f32-4ccb-9ed2-9ebca6f56e97","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities are less than","page_number":108,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"9d0fb256-5788-4c9e-ad3a-3b9f4fbc6d2c","block_type":"box","text":"the repurchase price.","page_number":108,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"3fd2f112-8807-47a5-8486-9db73e34c669","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":108,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"2356e8f2-a971-45b8-9fb2-cafc6498d64f","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":108,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"b343fd04-7220-4adf-ad6c-067ed221198b","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":108,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"5479a4b6-13f0-4c1b-bbd8-1cae4e474f31","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":108,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"5d0779df-5dd1-46d9-9a40-bd84a99d3e8b","block_type":"box","text":"strategies without the repurchase obligation.","page_number":108,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"4f742c78-4282-42d5-9784-e57c3c474709","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":108,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"a7ec7106-31a8-4c1c-88f7-4c71407c3f23","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":108,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"71b1034a-550e-4ad6-b1d6-d6499f1248ad","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":108,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"7f162cc3-4cdd-41f4-a572-9c16cb44ab88","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":108,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"7353ba4d-b070-4f7f-9f35-c38637223095","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":108,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"8e14b044-47d9-4d09-8f73-0d96866de464","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":108,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"329d0c86-b6cb-49dc-847d-6d326da7a17f","block_type":"box","text":"i.e.","page_number":108,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"098476a8-18bf-4529-a49d-4a1fc7030e1c","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":108,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"ea352bba-bc5f-427e-bb05-62ffd2c39093","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":108,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"dd2b4386-94e8-4b83-8057-c37cd6c04b24","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":108,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"755ac683-816c-4c18-abe5-5fadbb83ad56","block_type":"box","text":"and income involved in the transaction.","page_number":108,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"b0eb31c4-4510-4c6c-9719-859e132647e6","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":108,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"60a62987-93f3-4942-b900-6f63dca2535f","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":108,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"74df776c-528a-4410-a7bb-a9fd82c894ad","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":108,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"862ea8fe-ed98-4b65-8b13-a9191c6ad619","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":108,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"39ed91fc-1447-4163-b74c-d9b80660815b","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":108,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"afe2105f-8798-4af3-841b-ce34b21f9f31","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":108,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"efeea572-d0ec-414a-b5d2-2f0e7abdb192","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":108,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"532723be-da58-429f-89c0-f63dcec7c5dc","block_type":"box","text":"contracts or to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":108,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"f3bf65dd-9b3d-4dbc-80a5-f6574f9ee4d6","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":108,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"655b0f4b-573c-4a25-8330-fd7d7a19ef73","block_type":"box","text":"Compliance with these rules is expected to be required by the middle of 2027. Although the impact of these rules on","page_number":108,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"73642196-3d9f-4824-baa4-1a66224df039","block_type":"box","text":"the Funds is difficult to predict, they may reduce the availability or increase the costs of such transactions and may","page_number":108,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"17def77e-6cbd-42a6-90b2-4122328872ef","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":108,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"863af22b-5b1a-42c7-b0e0-d1bc5d2d0a0c","block_type":"box","text":"Restricted Securities.","page_number":108,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"0d2f65fe-a29f-4819-b3bc-c435d6321d35","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":108,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"b476e9ca-d025-4ec2-8ad2-1cb2de4335e6","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":108,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"027cf089-a5fe-4a7c-a2c5-5811474e92b2","block_type":"box","text":"II-70","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"36ef208c-3893-4f91-bdb4-694a42c41ad3","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":108,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"77620248-832e-4302-8500-db2e69de7769","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":109,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"74974660-6fcc-42f8-878f-ab23366dd882","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":109,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"8843e385-7da1-46fb-9090-9e32c44134db","block_type":"box","text":"listed on an exchange nor traded in other established markets. In many cases, privately placed securities may not be","page_number":109,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"62e1cf6e-712e-429b-9499-438013d87d43","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":109,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"05bb96cb-59e6-47e6-92f2-2ba5b31e4f96","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":109,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"efc4d143-8e87-48ce-8545-a73cde0a83aa","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":109,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"c10cb19c-3a91-4958-8432-ca47208d7d08","block_type":"box","text":"are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that a","page_number":109,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"9c6b20a0-e84c-42da-beb7-8eda338db7d2","block_type":"box","text":"Fund may not be able to resell some of its holdings for extended periods, which may be several years. There can be","page_number":109,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"623f0942-e55e-4a4c-8de5-41a10e5223f5","block_type":"box","text":"no assurance that a Fund will be able to realize the value of such restricted securities in a timely manner or at all. As","page_number":109,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"176241a6-93a0-40b8-bdb4-bcfa307f85d3","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":109,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"8a891b07-c164-4bd5-a76a-ef74c732ebe7","block_type":"box","text":"restricted securities may be deemed to be illiquid investments or less liquid investments and may be more difficult to","page_number":109,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"6239b615-7a32-4db4-9149-59f7b9b62056","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":109,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"54a70472-0f46-4f8d-841b-93b521ff2581","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those originally paid by the","page_number":109,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"f2ad347e-1c8a-4c8b-8b97-2edabebe14df","block_type":"box","text":"Fund or less than their fair market value. The amount of any discount may vary depending on the security type, the","page_number":109,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"f6db5a6d-8622-4cf5-9f51-40ced4242263","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":109,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"02392c3e-8352-4e1c-85c0-b06790f2a97f","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":109,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"e77538c4-bd3a-4bf8-b718-2d02f5cf90e9","block_type":"box","text":"listed may not be subject to the disclosure and other investor protection requirements that may be applicable if their","page_number":109,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"fee734d0-6420-4bce-90c7-d766e441a6ce","block_type":"box","text":"securities were publicly traded. If any privately placed securities held by a Fund are required to be registered under","page_number":109,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"adbca671-b099-407c-9977-b92dde28dfc1","block_type":"box","text":"the securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the expenses","page_number":109,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"caba2a59-ba72-4991-9736-0f3a6d53fb01","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":109,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"ee192516-ce11-4801-b572-ac36d47a6726","block_type":"box","text":"between the time the Fund decides to sell the security and the time it is actually permitted to sell the security under","page_number":109,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"a186869a-85b3-4bf7-8a4e-9595708689a2","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":109,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"976926dd-7ec9-4b4e-96bc-3db12c58a614","block_type":"box","text":"obtain less favorable pricing terms than when it decided to sell the security. In addition, the Fund may be deemed to","page_number":109,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"c7e3c810-202f-46e4-bf44-aa33a389799f","block_type":"box","text":"be an “underwriter” for purposes of the Securities Act when selling restricted securities. If so, the Fund may be liable","page_number":109,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"ee55c315-96d3-40f9-bec0-c7d03a9f2d1b","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":109,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"4bb7ee05-f3fd-4112-8bbe-0fcc60f26056","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":109,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"a7ad9cba-36ea-4498-8f31-408446667458","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":109,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"090b78c9-44d9-4ea8-ba47-b30c71431989","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":109,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"48413512-7afa-4e7b-9448-4aef5671533b","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":109,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"38db64bd-faa0-4e92-9d2d-6726c3433821","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":109,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"1e74d16c-fad8-4513-ba07-eb6b4a1312a7","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":109,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"3313a5d5-2288-40f9-9e89-a9e1c52efa34","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":109,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"2a82603f-ba7f-4530-a82b-d14043dc1659","block_type":"box","text":"operations of such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":109,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"9687cc84-2920-48a4-91e7-dd344842cb67","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited product lines,","page_number":109,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"e8f72b9d-09c5-45b4-99ea-47cbd211d37e","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":109,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"9edb5a9d-60b1-441d-bf18-882a40e21c59","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":109,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"a3d7e7f4-a54e-43e6-9a0c-688987b2027c","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":109,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"4cdde73b-8723-4ebc-959a-019efb7dd7be","block_type":"box","text":"Fund’s net assets grow from new or additional investments made in the Fund by other shareholders. The issuer of a","page_number":109,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"f6abe481-1d1d-413b-b745-5f0aabf863c9","block_type":"box","text":"private placement may later register those shares for public sale in an IPO, but there is no guarantee that an IPO will","page_number":109,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"f74774c5-aea9-495d-b55d-8ad845d06b4a","block_type":"box","text":"ever be completed. Even after an IPO, there may be a limited trading market for securities of that issuer, including","page_number":109,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"21500ad5-00b4-492f-b3bb-6f31cb016c87","block_type":"box","text":"any direct investment by a Fund, or the Fund may be subject to contractual limitations on its ability to resell its","page_number":109,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"fb56c51e-9725-49bd-91b4-822027574a32","block_type":"box","text":"existing securities following an IPO. The inability of an applicable issuer of a restricted security to complete an IPO or","page_number":109,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"35c3baf9-2cfc-448c-bbfa-51f5f55f609d","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":109,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"60f560d3-2b4e-4d17-a15c-ff6966959ce9","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":109,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"658cf6e8-5055-482b-a1ad-fbd4735066d5","block_type":"box","text":"such securities, a Fund may obtain access to material nonpublic information, which may restrict the Fund’s ability to","page_number":109,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"1717debd-c8e3-40d9-b1ac-3997459d97e9","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":109,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"ca14e4c1-c9cc-4209-9941-16ad2a619fc3","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":109,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"a9355531-26c0-44bd-9681-4461d09c1b69","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":109,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"f617f6e8-7387-41de-83f1-c345c8b47394","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":109,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"ffdaa88d-a929-45c6-a6fb-ab311d6ce84f","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":109,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"7b35aae0-f588-40b4-8d2f-c030d18c70ff","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":109,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"f8ed4611-d4ad-4d25-b43b-fe40deedd851","block_type":"box","text":"especially as that Fund grows in size.","page_number":109,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"62516b61-4f66-4890-96a7-cd9dfc65e104","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":109,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"d5778c3f-ca29-440e-a5ee-4a335843f7a1","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":109,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"a003e89c-56ce-4bf8-9710-c04c9e01494d","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":109,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"f82ce2b4-c029-4ebc-81f9-732cf0c94f60","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":109,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"53b78fb0-289c-46d5-9dc9-f3aebb67e7e1","block_type":"box","text":"determining the fair value of investments that do not have a readily available market value, the fair value of a Fund’s","page_number":109,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"49cbc0a4-d196-4c2e-8f4d-4d984f4ee66e","block_type":"box","text":"II-71","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d0c460d8-7eab-4fe1-9a22-633e9d4eaf5e","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":109,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a18c48b2-9210-4ca5-ac58-64f9586ceda6","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":110,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"7cbe2c61-43a8-44d7-a261-f64e66af7fcd","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":110,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"2663fd6c-b146-4381-bfb1-1092f43285a3","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":110,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"28447059-92c1-4aba-a28d-d5e55650900a","block_type":"box","text":"Fund’s shareholder transactions being effected at a NAV that does not accurately reflect the underlying value of the","page_number":110,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"361b769d-5c63-4322-9299-8f2b45c79359","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":110,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"96d179ed-a265-4db7-ae69-65fef2142bb2","block_type":"box","text":"shareholder arbitrage. The values used by the Fund to price its restricted securities may also differ from those used","page_number":110,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"d3142e85-baa4-49b1-9068-67214e5c2846","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":110,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"cefa4d11-2cfe-48b8-8d90-b2307c260330","block_type":"box","text":"changes in the market environment and other events on the fair values of a Fund’s investments that have no readily","page_number":110,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"aaaa97ac-21b7-4762-8c2d-02e237eca81f","block_type":"box","text":"available market values may differ from the impact of such changes on the readily available market values for the","page_number":110,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"f2001cef-c9e2-43d2-8974-85034644b05c","block_type":"box","text":"Fund’s other investments. A Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair","page_number":110,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"58887392-3c8f-4965-b596-c3ac1e5c5c4c","block_type":"box","text":"value of the Fund’s investments were materially higher than the investment’s actual market or fair value or the values","page_number":110,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"ac5897e0-ab18-4c6b-a119-1d5fd30c660d","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":110,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"38b4ef47-bf6f-41a0-97a0-48f0b7951396","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":110,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"4fea514e-e3c4-4bc9-9005-60bd959b779f","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":110,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"3d763b54-249d-44b8-9cc3-b54e1d55ef60","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":110,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"9dca5da7-fc33-4ea9-b9db-8d6f2b10aaba","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":110,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"9b502dfa-7fbd-44dc-95b4-b15078212d8b","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":110,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"4e68b6ac-1756-44ed-a912-fd7a29839366","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":110,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"be003eb5-d92e-40f9-9aed-9651593e0574","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":110,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"260679bc-d59d-40a5-b730-51d10466620f","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":110,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"6a030339-d85b-431c-bb32-5132d133b047","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":110,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"799f3e38-b6a1-48b4-9d0d-7273068ffb99","block_type":"box","text":"of the proceeds will be less than the interest expense, (ii) the market value of the securities retained in lieu of sale","page_number":110,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"8e7f9285-2ad3-4748-815e-679bc1d285fc","block_type":"box","text":"by a Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase, (iii) the","page_number":110,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"2b0603f5-1265-43e2-8678-4e0cd34046ea","block_type":"box","text":"market value of the securities sold will decline below the price at which the Fund is required to repurchase them and","page_number":110,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"8811c0ed-215e-4c34-9937-009d7d34e8b4","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":110,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"68188eec-95c5-427c-82ca-5ce5ea79e07b","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":110,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"4b7e9e80-1bf1-4e73-a38e-78306525f708","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce a","page_number":110,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"798a31cf-f396-4cb1-80b1-cfdb090fbd9c","block_type":"box","text":"Fund’s obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse repurchase","page_number":110,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"6f581287-5dab-450f-ad39-d1b7fcf31937","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":110,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"56189298-e584-417b-a7b1-e4a1888390e9","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":110,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"3e30211b-46d7-42c5-9f96-a1289f208087","block_type":"box","text":"similar financing transactions (","page_number":110,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"83c76f00-4ac2-4fb7-9645-5a7588dc9351","block_type":"box","text":"e.g.","page_number":110,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"9ea7e2aa-1cfe-4dfd-9d17-1ea0e8b15206","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":110,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"fb1359cb-7670-44ab-9a8e-46e35be45c8d","block_type":"box","text":"the limitation on the issuance of senior securities in Section 18 of the Investment Company Act, provided that the","page_number":110,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"c292bb00-1105-4057-8784-248601c11744","block_type":"box","text":"Fund either (i) complies with the 300% asset coverage ratio with respect to all such transactions and any other","page_number":110,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"6c64db6b-c09b-4c33-be7e-df02e2854e3e","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":110,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"4c271c6e-e50a-4373-a685-7d2b2345bba8","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":110,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"a8b043c9-9972-4c86-ac00-0be26c8a58f4","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":110,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"4c82b574-c812-4c3c-8dc9-9fd4af1a78b0","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the middle of 2027.","page_number":110,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"9e3b53da-05df-4ef2-bbc0-0dc69be328d9","block_type":"box","text":"Although the impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":110,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"869db971-d987-44c6-a404-164058db8dda","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":110,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"3495e463-c0d4-4917-8ea3-acabfcb4d417","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":110,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"21dffd4a-224d-4c34-8f5f-e98c5c07fb2b","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":110,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"982df9d1-5929-4e98-b544-86962671fc32","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":110,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"8a7b33f7-21f7-44e4-817f-5171a03f6692","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":110,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"5ac173b2-55b3-4804-97bb-8e47e285edf0","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":110,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"8015ddc3-1aba-4dc9-8028-4be98890b383","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":110,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"db958220-45b9-4ec0-ba7d-0c5c40c67189","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":110,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"4051f716-5947-4875-8945-42ca15ab47eb","block_type":"box","text":"amounts to be received under such agreements.","page_number":110,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"e575e03f-bc93-44dd-981a-7f77c0188170","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":110,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"1caa0c62-a9c6-4c38-a151-c4f7750b6b0b","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":110,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"44067c72-d809-4849-ae62-99b2f0e123d0","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":110,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"a9b49f95-0184-48ec-8884-ecab1f560d81","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":110,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"85fc1f69-3269-47df-bad8-70e635b5d015","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":110,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"5aadf4c3-cfd7-4390-aa5c-a7f2654f7ecc","block_type":"box","text":"lose the purchase value of a right or warrant if the right to subscribe to additional shares is not exercised prior to the","page_number":110,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"4b5d1463-f50a-46af-9f5e-561299d5882c","block_type":"box","text":"rights’ and warrants’ expiration. Also, the purchase of rights and/or warrants involves the risk that the effective price","page_number":110,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"ed9f1fcc-1c62-401b-a686-2e71642e3495","block_type":"box","text":"paid for the right and/or warrant added to the subscription price of the related security may exceed the value of the","page_number":110,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"e8e0cea7-b50a-4c44-be48-55fb578b75dc","block_type":"box","text":"subscribed security’s market price such as when there is no movement in the level of the underlying security. Buying","page_number":110,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"f66950d5-d573-4d4b-a1e6-3a0fa33aa7e9","block_type":"box","text":"II-72","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d771db9d-a3b7-4ece-8eb1-6d8ad551dea4","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":110,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"71ed2c23-29cf-4d61-87ed-e9315562c6d7","block_type":"box","text":"a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder has no voting or","page_number":111,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"ac6998b6-2fc4-41f8-9ede-604609387b69","block_type":"box","text":"dividend rights with respect to the underlying stock. A warrant does not carry any right to assets of the issuer, and for","page_number":111,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"c79052b6-1e70-43c3-b1e4-bba82328ffea","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":111,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"96cc7e84-aae5-45d7-bbf9-9a84768f90cb","block_type":"box","text":"Rule 144A Securities.","page_number":111,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"f6ea88f3-4451-461f-8291-a9814fcaf1db","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":111,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"3f79fa55-4fe7-45af-9e53-9408d2b91a59","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":111,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"2f64e082-1828-46b7-b920-c41cfb3f3473","block_type":"box","text":"Securities Lending.","page_number":111,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"5b8045d8-2919-4119-b7d1-cd8092695ac6","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":111,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"6ede193c-4272-4954-b924-6aacab54b660","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":111,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"2aef8cc0-0a6a-49f6-b6e4-8c73a6c67ba3","block_type":"box","text":"an amount at least equal to the current market value of the securities loaned. No securities loan shall be made on","page_number":111,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"10b3be88-0379-4b19-a4f1-df376a738b68","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":111,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"7a6aa324-455d-48ac-8190-aceebdf91fd7","block_type":"box","text":"the value of such Fund’s total assets (including the value of the collateral received). A Fund may terminate a loan at","page_number":111,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"9acbb798-4a12-44ad-ae86-56663baa1fc4","block_type":"box","text":"any time and obtain the return of the securities loaned. Each Fund receives, by way of substitute payment, the value","page_number":111,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"8f1eab98-a852-4d8e-8c9d-e303ebc39b6a","block_type":"box","text":"of any interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise received if","page_number":111,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"289a1546-f780-41fc-b7e9-6b6a5487ce7e","block_type":"box","text":"the securities were not on loan.","page_number":111,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"6dccebdf-ce42-4938-a53d-2ddfb8bfe474","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee based on the","page_number":111,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"88b9f7b4-0518-4bf0-bfef-ba4726e28aff","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":111,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"ea2def2c-e49e-4b1e-87ef-80951250e78b","block_type":"box","text":"reinvestment of cash collateral and the fee paid to the borrower. In the case of collateral other than cash, a Fund is","page_number":111,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"2a9d5b6a-99de-41e5-888f-724fffcdccba","block_type":"box","text":"compensated by a fee paid by the borrower equal to a percentage of the market value of the loaned securities. Any","page_number":111,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"7751c8cd-b9fe-4d88-a8e0-6919c17423a9","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":111,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"3ab761ff-ecc7-4841-b678-d404bfaeb467","block_type":"box","text":"instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds,","page_number":111,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"80da080f-a991-4c7a-bfa5-651a34149762","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":111,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"46615be3-94f0-449e-ad9c-0807dabeaf8c","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":111,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"c834753a-37c6-4734-89a4-114085bce508","block_type":"box","text":"i.e.","page_number":111,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"fc6d646d-44cc-4e6b-a22f-d86ae117c168","block_type":"box","text":", the risk of losses resulting","page_number":111,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"c617a08a-a5e3-486f-bd46-9d916ebf2136","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":111,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"ba02ef51-bb49-42a8-87da-a83132cd60a1","block_type":"box","text":"i.e.","page_number":111,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"553f8b18-e7fc-469d-a446-dde2eb0e7667","block_type":"box","text":", the risk of a mismatch between the return","page_number":111,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"6f55ad3c-b60e-4f7e-8abb-d6642d5f8c52","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":111,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"2e321487-73e6-43d6-be3f-d9ed189d8a24","block_type":"box","text":"i.e.","page_number":111,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"854dc1ae-a2cc-4cee-999d-f4226a406946","block_type":"box","text":",","page_number":111,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"19bc8977-42b4-4636-a213-b8b4185edced","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":111,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"8d9e3627-cfe9-4834-ad07-3eb8268c9fc8","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":111,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"c1d432b0-14b4-4f5e-9786-6e3e806b874b","block_type":"box","text":"market risks (including the risk that market events, including but not limited to corporate actions, could lead a Fund","page_number":111,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"0e4a4231-a1e4-4274-9de4-c182f7a89e24","block_type":"box","text":"to lend securities that are trading at a premium due to increased demand, or to recall loaned securities or to lend","page_number":111,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"c1d0ba05-0cc4-45b4-80ee-76a9b78b2e45","block_type":"box","text":"less or not at all, which could lead to reduced securities lending revenue). If a Fund were to lend out securities that","page_number":111,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"8a996e94-ee6b-4bca-921b-801eac163ebc","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":111,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"5c3656cf-1816-49ef-a686-3e006e74d191","block_type":"box","text":"investment adviser, the benefit the Fund would receive in respect of committing to such election may or may not be","page_number":111,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"8bf9b09d-a0e4-4faf-818c-5759840e5e67","block_type":"box","text":"less than the benefit the Fund would have received from making a different election in such corporate action. If a","page_number":111,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"90d942d3-fb4d-4eac-ad5d-62a36b7a56cf","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":111,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"38b9f46d-f361-4194-88d0-89b0656f5ed5","block_type":"box","text":"collateral or in recovering the loaned securities, or to a possible loss of rights in the collateral. In the event a","page_number":111,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"06f75048-e4d0-411c-9389-141b4f231d4e","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":111,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"541ed0fe-d812-4919-a120-1df814674520","block_type":"box","text":"may be impacted, or the Fund may experience losses if the proceeds received from liquidating the collateral do not at","page_number":111,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"9fc8fa06-a99b-4215-91a7-14ddaadd1bf6","block_type":"box","text":"least equal the value of the loaned security at the time the collateral is liquidated, plus the transaction costs incurred","page_number":111,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"03eb99a2-99f6-4d4e-ad87-0e578b280359","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":111,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"089fa9ca-9540-4302-a0dc-30a83c644213","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":111,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"cec68910-4bdc-4d92-bb80-236a90fe10ea","block_type":"box","text":"payments received by a Fund representing dividends paid on securities loaned out by the Fund will not be considered","page_number":111,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"51713fa4-56b1-4de3-a0b4-58812bc3d58b","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":111,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"3a12d9b9-d3cf-4736-975f-3ae5ad548a73","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":111,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"49ee2e99-a1f7-406b-9bfd-1a31b068ffcc","block_type":"box","text":"REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund","page_number":111,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"ad70cedc-8435-4f4d-b596-02d28a64a774","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":111,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"392df4f5-7af8-4fd3-93de-e83d9e46f755","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":111,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"b6f362dc-92cd-4ec3-8db7-a6eee628019d","block_type":"box","text":"will take into account the tax effects on shareholders caused by these differences in connection with a Fund’s","page_number":111,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"e84b69f3-bb15-4d14-bf16-eaa4e42723f3","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":111,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"a635be3d-2c45-4880-98b9-2e888b45846e","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":111,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"56f198b0-3ebb-42c7-a0e9-0819d06094bc","block_type":"box","text":"regulations, that may impact the regulatory or tax treatment of loaned securities and could, for example, result in a","page_number":111,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"8a76d7e4-a3df-4c93-8411-bd0c9f46e8af","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":111,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"3069bc6f-8512-4298-9ee7-f36307c478d1","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":111,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"5de56b62-9651-4fdb-9cc8-f585d4579df4","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":111,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"a1dfaf02-0909-4983-ba70-487ee997abcc","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":111,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"a897d8aa-f8e1-423b-a5e8-27245a477f22","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":111,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"a3d5c39c-01c6-4083-874f-0a5e173f1665","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":111,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"ec24d193-33c8-4479-97de-8832831d3a06","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":111,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"69067e7e-3687-46bc-97f5-98cc7d928877","block_type":"box","text":"II-73","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"835e6bab-c092-428e-bb78-9c0180cdfd66","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":111,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"120e7a48-835d-43a8-b3d4-c5777dff937b","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":112,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"5a667eb1-aa53-44c8-a77e-c980342f7f90","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":112,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"cb5e9787-4ccd-4353-9895-bf2d5fe3fab3","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":112,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"9103c7d0-46c1-4413-99cb-f720caefdd4e","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":112,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"1bff8cca-7364-4c46-8f87-960f7c3fe753","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":112,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"9e493398-1e3c-436b-b9ed-2c66e8539c04","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":112,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"b8c94200-845b-48bf-968b-2b89be4abfe8","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":112,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"6cb1c77f-b1b4-4337-ab14-e1ed5f37a739","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":112,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"14882025-f165-4e58-ba81-b32370f5e433","block_type":"box","text":"although in response to the outcome of a legal challenge against the rule, the SEC may amend the rule and/or delay","page_number":112,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"4410ce59-b7e6-4887-8771-a4dcc659aad3","block_type":"box","text":"the current expected compliance date.","page_number":112,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"6b1ee116-b961-40b0-82ec-6257a6a7b98e","block_type":"box","text":"Short Sales.","page_number":112,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"f9f964b9-44d4-49cc-8ab0-8cca33cbf076","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":112,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"4489cf2d-aa9e-4cde-a735-24ae20596d6c","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":112,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"d3fa1e47-0ca1-4f36-a14e-a50e81b05d87","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":112,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"58f92ac2-3c1a-467b-9920-a29f47c5b700","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":112,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"b07a5c68-5a08-4d41-901e-80d183e63444","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":112,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"51ef15a4-20cb-47ec-993e-5a80a5cb3285","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":112,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"a271d291-d33d-410c-b19b-da093e7fd1da","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":112,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"639a00c0-dfc3-4457-a0f3-abb8add9f213","block_type":"box","text":"securities to the lender of the securities.","page_number":112,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"33da1590-8c6d-4aaa-b155-cded15a1aae1","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":112,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"6326dbc0-811b-4c83-b873-70f229967222","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":112,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"85c370c8-f89a-44dc-a20e-174dc7fd1673","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":112,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"e3bf15a5-ee76-46ec-9ee9-f21f6aaf4eda","block_type":"box","text":"extent that the value of both collateral deposits in the aggregate is at all times equal to at least 100% of the current","page_number":112,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"6cd8902a-be03-47b2-b86e-3827631845db","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":112,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"700f0329-dd93-44ba-b610-04d91faf9911","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":112,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"46bf8611-c25c-4caf-b62c-9ec06265e137","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":112,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"1ee6f71a-06d1-4801-b309-4f0e95c6c17c","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":112,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"377a7f0e-971d-40d3-a1f8-a6d48c097d1b","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":112,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"295b707b-f998-4771-88e6-1ebd08f9c17e","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":112,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"44474829-021e-44aa-afc8-213790a17003","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":112,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"57c9786b-6443-4240-8327-46c1318b4ffe","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":112,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"d0eda070-1d18-43f1-af7a-e47bbe69e65a","block_type":"box","text":"sale if the security declines in price between those dates. There can be no assurance that a Fund will be able to","page_number":112,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"bd0ca706-68a3-46f8-bdea-1f8d82135cac","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":112,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"cf49e0a4-8415-4415-8b89-d9f9eac0c2e8","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":112,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"c17c40f8-f8ab-414d-bf9d-b25fb1f37056","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":112,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"7b8c9747-2e42-4ef8-a484-4bf9a8fca39d","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":112,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"b9a2d530-494f-4749-999e-b1118dee0aa1","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":112,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"f966f2f9-291b-4379-ad52-9fd555b91b7c","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":112,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"7513a572-f4a4-4ba9-a1ff-5af6fafa7e61","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":112,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"b54cbbcb-16d9-464d-9726-e5c1e16f1b47","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":112,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"790d5cbf-b59f-4809-b61c-ae2e60bb2487","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":112,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"d87e814a-b08e-4d57-b38c-0fcc96430682","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":112,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"830d267e-3f47-4192-af55-dae2111ccabd","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":112,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"1cef1225-d2f6-4203-b1ce-16ac3169ec5c","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":112,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"f829feba-6733-43d2-900c-0b88df260512","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":112,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"766a1d89-8325-44d5-90ae-353d8d357544","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":112,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"ea1c7165-c28a-417b-8d12-79a8c9fbce4f","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":112,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"ca1f31a0-78a0-4d73-9775-619ddfaeea43","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":112,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"e361a4a4-a1c3-4322-9076-6162bc84ed09","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":112,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"edb51a74-fcef-43e8-99ed-c539aac542ba","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":112,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"a220b1ba-7438-4c78-a4a4-e07053e5d700","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":112,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"3d33c18c-e9fd-47e9-8475-b33c7521f562","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":112,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"dd3c769b-57bc-41ba-b77b-084363e75997","block_type":"box","text":"publicly traded company that raises investment capital via an IPO for the purpose of identifying and acquiring one or","page_number":112,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"6356c7f0-acb9-4e49-9b81-a55f9a08b0e2","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":112,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"3aa45015-6498-46c8-bbc2-e8ce6bcb93c0","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":112,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"30407da2-2075-45ec-bacf-ab80882d8162","block_type":"box","text":"percentage (typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a SPAC","page_number":112,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"cac09453-ef16-42aa-8f41-ed5113e75065","block_type":"box","text":"II-74","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"82ea683d-3f3e-483f-b0d6-8f45f337d829","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":112,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"ff6e37e1-7431-4b1b-82cd-d2672a817bdd","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":113,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"7611190d-e865-42e8-882b-0e8c0945f59a","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":113,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"d8224224-de22-48d6-af87-94a2e449df72","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":113,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"e2be9b0f-524b-4c7a-ab81-25d5a28b9c9a","block_type":"box","text":"within a pre-established period of time, the invested funds are returned to the SPAC’s public shareholders, the","page_number":113,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"05361190-c0a6-44b1-8c70-37ab8678d947","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":113,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"2b9c4fd2-15c9-4865-a1f7-479f040f9f62","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":113,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"74dcf492-ac0a-409d-a62e-b1681bc21868","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":113,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"94f10a32-748d-4978-a159-1b9235122aa0","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":113,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"23869a1b-127d-4814-882b-e75e737c8b0d","block_type":"box","text":"There is no guarantee that the SPACs in which a Fund invests will complete an acquisition or that any acquisitions","page_number":113,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"2f22f8e7-de08-480b-8256-837dee09dcb6","block_type":"box","text":"completed by the SPACs in which the Fund invests will be profitable. Some SPACs may pursue acquisitions only within","page_number":113,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"ce5741ba-1a84-4e1b-ba27-84c61044100e","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":113,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"b9f99090-7398-4e35-bfed-251301ed7393","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":113,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"abd4be54-de1b-4cfb-8f18-72f2a20997eb","block_type":"box","text":"Standby Commitment Agreements.","page_number":113,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"0bbdeb56-f416-4484-a495-31f7b3cdaa82","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":113,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"8cb14278-e163-467e-a2ce-b9eb7df7a394","block_type":"box","text":"time, to purchase a stated amount of securities that may be issued and sold to that Fund at the option of the issuer.","page_number":113,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"25087e50-94ce-44cc-90f7-568467c18a56","block_type":"box","text":"The price of the security is fixed at the time of the commitment. At the time of entering into the agreement, a Fund is","page_number":113,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"827ab199-7e4a-457d-b39d-2902718f03f1","block_type":"box","text":"paid a commitment fee, regardless of whether or not the security is ultimately issued. A Fund will enter into such","page_number":113,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"11ab1e95-09ed-40bf-9ae9-0ce1ece7efb6","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":113,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"975ca142-f3d9-43ca-bbce-752be570998a","block_type":"box","text":"advantageous to the Fund.","page_number":113,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"a359da28-1ffc-408d-8ba4-6cca4b31d851","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the value of","page_number":113,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"512345f9-09f5-4611-9fd5-fbfb20a3d556","block_type":"box","text":"the security, if issued, on the delivery date may be more or less than its purchase price. Since the issuance of the","page_number":113,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"10995e23-0ef4-47ba-9c42-ab77ce39d960","block_type":"box","text":"security underlying the commitment is at the option of the issuer, the Fund may bear the risk of a decline in the value","page_number":113,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"449e18f6-5ef8-4a7e-8e6e-ad6375137c06","block_type":"box","text":"of such security and may not benefit from an appreciation in the value of the security during the commitment period.","page_number":113,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"62c98059-a57e-4c71-a1d7-df1f5cfd30bd","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":113,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"75d7764b-40d0-47aa-9115-effc6a5e6ed3","block_type":"box","text":"be recorded on the date on which the security can reasonably be expected to be issued, and the value of the security","page_number":113,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"92bb6b5f-124a-48ff-a6dc-39ba8d906bd5","block_type":"box","text":"thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis of the security will be adjusted by the","page_number":113,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"625eae58-0102-4346-9c8e-5409ce509a00","block_type":"box","text":"amount of the commitment fee. In the event the security is not issued, the commitment fee will be recorded as","page_number":113,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"b1c9d4e2-6eb3-4f6b-ab27-3c521def6d11","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":113,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"7de70daa-2dfb-4997-b0b1-d7c37d78c89b","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":113,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"e824c345-6d69-41e6-9a90-85da12b7de53","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":113,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"39c71bf7-358e-4c14-858a-1ac2bd1d897d","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":113,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"584fc412-726d-40e0-be5c-bf9a6e258f39","block_type":"box","text":"at zero in determining NAV. Accordingly, where a Fund pays directly or indirectly for a standby commitment, its cost","page_number":113,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"8ef6de6d-727a-49f3-bd32-8635c84b2378","block_type":"box","text":"will be reflected as an unrealized loss for the period during which the commitment is held by such Fund and will be","page_number":113,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"71b756c6-ba02-4b54-8bea-a70b67a5d572","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":113,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"2f25ec8b-1cc1-4e84-aaf8-7b2ee5897e71","block_type":"box","text":"Stripped Securities.","page_number":113,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"b60bf4f0-223b-4d7b-adba-6fe3db3f1feb","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":113,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"def180b2-de4a-4c67-970d-d67640f64da9","block_type":"box","text":"components of an instrument and sells them as separate securities. In general, one security is entitled to receive the","page_number":113,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"9526c064-d05d-420e-97be-ea287f1adb55","block_type":"box","text":"interest payments on the underlying assets (the interest only or “IO” security) and the other to receive the principal","page_number":113,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"44bf6b66-d513-4f96-b428-8ce288e0426f","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":113,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"5ac272f5-fb1e-4ba5-a403-98ef6774f759","block_type":"box","text":"principal payments. The yields to maturity on IOs and POs are sensitive to the expected or anticipated rate of","page_number":113,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"f924b2b8-95eb-4eb0-a282-8efb168028fb","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":113,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"b93b4e4d-d9e3-40dc-9f20-35aef9453d9e","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":113,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"60ac1f58-9e3a-4089-8417-f72b6e1cef76","block_type":"box","text":"principal, a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets experience less","page_number":113,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"76904592-8e52-4ec5-bec1-59f639e8837b","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":113,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"6fac3674-64e0-4b28-b505-001321ba2559","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":113,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"e42f54e6-2925-4460-9697-2d366a7b1e1e","block_type":"box","text":"Structured Notes.","page_number":113,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"335af52d-f4e5-411b-83e6-422809c54d0c","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":113,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"5b9edd7a-85f9-49b4-9d1c-9ff0d9252734","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":113,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"c353bd2d-16d2-42bc-a7a9-07f5244631e3","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":113,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"c77bb8f2-1188-43fb-84d5-1d279510bafe","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":113,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"60383043-899a-4aa8-8f53-7198329cdf10","block_type":"box","text":"increase or decrease, depending upon changes in the value of the reference measure. The terms of a structured note","page_number":113,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"264a1ccb-eafa-4dd3-bfef-a117f9e68210","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":113,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"1341ca4d-70f3-4c0f-93c9-50bafda5b856","block_type":"box","text":"invested capital by a Fund. The interest and/or principal payments that may be made on a structured product may","page_number":113,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"ee450d61-65ca-4f29-995b-62aba887be10","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":113,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"eedd922a-d89b-43a2-a88e-87cacd93b36d","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":113,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"e42db067-6d0c-43ff-ace1-16cf429034de","block_type":"box","text":"produce an increase or a decrease in the interest rate or the value of the principal at maturity. The rate of return on","page_number":113,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"1f17c974-0775-4c4e-a665-cef779a60452","block_type":"box","text":"II-75","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"98bf0ea1-3ec9-4b33-b557-f527348e8918","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":113,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"84e6e6d5-7340-48d6-8a2b-1a499525adac","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":114,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"13ea7aa7-03b0-4ee8-968a-b471618d6259","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":114,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"dae517d5-dbb4-4dd4-8e51-2b465e3ecd98","block_type":"box","text":"the risk of loss.","page_number":114,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"b481cc96-f98b-4cea-b909-53256ec4e934","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured product.","page_number":114,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"b5e80e47-3fab-48f2-a016-5de2e129b394","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":114,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"dbb5cb0d-5f3c-4f40-a46d-c48e5487e68b","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":114,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"c28b4623-b60e-4827-b280-95543a91556d","block_type":"box","text":"illiquid making them difficult to sell when the Fund determines to sell them. The possible lack of a liquid secondary","page_number":114,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"b584008b-1a57-4863-9a5b-884ec63e47b0","block_type":"box","text":"market for structured notes and the resulting inability of the Fund to sell a structured note could expose the Fund to","page_number":114,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"631e1056-588f-484a-ae80-9ace4a7ac7c2","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":114,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"15929dd9-8f19-4a9a-8fcf-74cd2c2d92be","block_type":"box","text":"Taxability Risk.","page_number":114,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"d74c7ed5-ea9b-4228-8797-b89272494755","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":114,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"c422c70d-0666-4424-b2cf-f38bf44dcd8f","block_type":"box","text":"investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to","page_number":114,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"baadda09-65ee-4400-a67c-88ed7a099e12","block_type":"box","text":"the issuer and, in the case of derivative securities, sponsors’ counsel, that the interest paid on those securities will","page_number":114,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"3bb03880-c0ee-4ae8-b030-ff827419d37f","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":114,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"2e9c2846-cf33-4dee-a919-a2e659420aa9","block_type":"box","text":"to pay, or have paid, taxable income subsequent to the Fund’s acquisition of the securities. In that event, the IRS","page_number":114,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"a72a9e51-cb89-46c1-95a2-5b96a33e5299","block_type":"box","text":"may demand that the Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to","page_number":114,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"0b495223-2637-4c56-8631-f36934b666a2","block_type":"box","text":"do so, the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or to be","page_number":114,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"d5f92fc5-5c84-414d-917f-4cea57c97533","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":114,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"c948a250-8d2d-48ae-a14a-1b4cdfa77104","block_type":"box","text":"increased U.S. federal income tax liabilities. If the interest paid on any tax-exempt or municipal security held by the","page_number":114,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"65d13ff5-b72c-4bae-b85f-c4913803e31d","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":114,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"85f468d3-31fa-4bef-9f8a-ecc68341c409","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":114,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"6cba9ae8-5afa-44a1-9e51-99c885662299","block_type":"box","text":"securities to be subject, directly or indirectly, to U.S. federal income taxation or interest on state municipal securities","page_number":114,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"fcf32d12-635f-425b-9715-68cd0a72a498","block_type":"box","text":"to be subject to state or local income taxation, or the value of state municipal securities to be subject to state or","page_number":114,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"82a7032f-9878-4999-ae37-6c795f27a440","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":114,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"88546124-d536-4dc3-8ca3-3d60e99d83f5","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such securities, and thus","page_number":114,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"7a1812e0-3a66-4b7e-a8b1-4e9721b6095c","block_type":"box","text":"the value of an investment in the Fund.","page_number":114,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"28ec66ec-be12-41ca-9e6d-daba5203a9aa","block_type":"box","text":"Temporary Defensive Measures.","page_number":114,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"67bee1ac-6909-40c2-bfba-244d01ec4738","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":114,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"bb9d9c60-c883-4fed-821c-a4a5c7fb4a5c","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":114,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"c59ec674-7c83-4014-8ce1-4724fd986603","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":114,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"e9042041-04c1-44dd-838f-7b1324ae0fb9","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":114,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"3b69eb4c-8407-4543-af2c-8b7e5391cb93","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":114,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"b4baaa62-3547-4717-9ce1-36c736a6e799","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":114,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"900c2f55-6377-4a87-869d-eafd61ea487e","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":114,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"c0c02bb7-ed27-42e7-a68f-32ef80cbbd26","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":114,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"9081e057-5dbc-4a5b-bab3-88750fa1ec00","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability to achieve","page_number":114,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"1c2d55e0-7ad8-4bf6-b6e8-f241735d31e1","block_type":"box","text":"its investment objective.","page_number":114,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"8537cd4d-99c2-43b1-8457-db5753469f8d","block_type":"box","text":"U.S. Government Obligations.","page_number":114,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"3c4aff20-1a75-47e8-9201-b08809bd0f24","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":114,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"4f511701-632c-4a6a-981a-fb0130ba3988","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":114,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"fb137fda-7f9c-455a-a91b-f3b5248de84f","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":114,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"753bd3fc-b480-432e-a96c-b82a09ac53ab","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":114,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"98551a7d-aca0-4afd-b170-3b422722a3a1","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":114,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"0a0dc4c8-8fa7-40ec-a841-1eb09cd0e084","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":114,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"d285b86d-f06e-4652-b63c-62c350b424f7","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":114,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"6f209627-f8a2-4a89-af18-26b96ab3fe59","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":114,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"591b11ff-914d-4dad-968b-c6e3a3354953","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":114,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"ede0c3f1-b0b8-40c2-9e4d-ad3bc089714a","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":114,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"7aab75a0-b3df-4a1b-b202-d0b188507ee6","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":114,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"04fa3cda-8778-446d-8e25-dcb643f88efd","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":114,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"9156c32e-7a91-4bf3-ac16-f299fbc96ac8","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S. Treasury Bills,","page_number":114,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"4ef97ca8-e1ad-43fe-9125-f0fbc437072a","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":114,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"ce7e71dc-fa77-47d0-a3bc-2838bf975e9f","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":114,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"3f16d844-3495-46f3-9df3-57951a4380be","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":114,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"c5f8d482-93e6-4515-9995-010f2953488d","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":114,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"ca5a61af-0715-47ee-9771-3fcbc2853a49","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":114,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"2d0c7b1a-d57b-41d5-8396-b2a5fc70d1c7","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":114,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"0057c7e5-0fa1-43f9-ae4d-f45bc2f7bc1b","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":114,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"21e1a7ea-055b-412a-b834-1c65442e5f94","block_type":"box","text":"II-76","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7f5efa0a-cfd4-40bc-88e9-0427b824cf1b","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":114,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"19c9a73c-73d7-4502-9c4e-5cf4038474ea","block_type":"box","text":"U.S. Treasury Obligations.","page_number":115,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"c0ee8e82-fb19-47d9-a409-7f6f083efc82","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":115,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"355b9392-6453-4848-946e-d08ced51c81d","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":115,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"ec9a1582-1ce0-4377-9457-9b0243d0c5b8","block_type":"box","text":"of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given","page_number":115,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"068faa58-4ac8-4acf-b720-7cb3f2b8cc04","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":115,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"08774d35-a532-4131-a588-3ebb3a361c23","block_type":"box","text":"do so.","page_number":115,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"18c8f411-b006-4eb4-9137-4dce38f0e32f","block_type":"box","text":"U.S. Treasury Rolls","page_number":115,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"2647135b-0f84-4458-9146-5b6f10f0cf57","block_type":"box","text":".","page_number":115,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"33678d85-1bd9-4201-ba48-6f0b6702494d","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":115,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"6bcc10fd-3251-4571-a0cc-b6d41e50a237","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":115,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"d3c90fe0-39a4-402f-9a6b-2e20c0ce6fb9","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":115,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"5fcebde3-e598-49a0-87f3-98774430e56b","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":115,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"aec9a5ae-a22b-4cbd-98df-9d5fc31668ea","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":115,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"41114995-a511-4076-8c73-8b28ed50adb2","block_type":"box","text":"roll, a Fund continues to earn interest on the securities it is selling; however, it does not earn interest on the","page_number":115,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"528d4e47-6d1a-4d69-a20c-cd1759b3452e","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":115,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"63d0de5b-d29b-4580-8235-b010c7949c8c","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":115,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"98c3a747-688b-4a41-a6ce-6f4d4d954719","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed upon","page_number":115,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"85b2abab-c8b3-4166-94ef-65f393d568d4","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":115,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"e5248bb9-64d9-4802-ab4b-b58377455e5f","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":115,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"dd0328b9-914c-44ed-8e74-fd32df3709a8","block_type":"box","text":"Utility Industries.","page_number":115,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"888ec9d0-62f3-43d8-bef3-856eb978c06b","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":115,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"8212cb57-8d4c-48bd-bf10-fb549251d62a","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":115,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"d4313275-bd29-4567-9db3-092ff02d1801","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":115,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"feff4861-ad84-4101-9af1-bc6791969bb9","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":115,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"b3986518-e526-46b4-9902-630e27c7c402","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":115,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"becfd28b-c9b5-494b-a837-6bc34f03da94","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":115,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"2cd79f56-7da3-4a3c-8d6e-4aefbddc16dc","block_type":"box","text":"availability and high costs of natural gas for resale, the effects of energy conservation, the effects of a national","page_number":115,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"39ca4e8f-5003-4911-a1be-4b62c5aa38bf","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":115,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"23576d46-dfcf-451d-ac33-7cba442a5d0b","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":115,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"850f94f0-aaa4-47a1-b19b-f9e4ebd6ccc7","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":115,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"4b322539-8cd9-4dc2-8fdb-ce1cd419b05c","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":115,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"d6f0c2ef-3be2-4bae-ba7b-a418a742b688","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":115,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"108c2349-47c6-475c-b7bf-619800276fbb","block_type":"box","text":"authorities will, in the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":115,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"371a9eda-3726-4860-8785-3cbbf95f6a80","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":115,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"f085f31f-8820-41c6-a473-0ba43db24697","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":115,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"4561a51f-a89c-47b2-b33f-cdd7962cbaa9","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":115,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"5826c893-17b9-4383-bc1d-7c9113338d00","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":115,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"e0a56817-57a5-45e9-adf1-ef614dcc1750","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":115,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"47ba15be-4604-4137-9d26-9605a633f9a9","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":115,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"1110dff4-9fe0-4298-8c76-4b341a336940","block_type":"box","text":"utility.","page_number":115,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"ad53af15-1876-48a7-8e49-a18350a1cdec","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":115,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"79d4209f-264c-48c8-9117-4af0f45df007","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":115,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"e3cc6996-d03b-43e2-98aa-da3c0a9dc66d","block_type":"box","text":"debt securities and, to a lesser extent, equity securities, tends to have an inverse relationship to the movement of","page_number":115,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"d3a6c421-8760-4872-9bc3-7be416875d1f","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":115,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"fa6d2cbc-092b-470b-bba3-4a5e842809cd","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":115,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"1e3c80f5-c636-4add-9e68-3d3300647f40","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":115,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"71700146-9f62-45c4-92f4-15b0702982e1","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":115,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"e092beec-acbc-4f8c-b100-321abc0142c5","block_type":"box","text":"regulated in the United States and in foreign countries with the intention of protecting the public while ensuring that","page_number":115,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"a71b7518-30f6-423f-b4d4-7da647569961","block_type":"box","text":"the rate of return earned by utility companies is sufficient to allow them to attract capital in order to grow and","page_number":115,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"9ba8dcfb-3302-4c2c-8481-3b7305687471","block_type":"box","text":"continue to provide appropriate services. There can be no assurance that such pricing policies or rates of return will","page_number":115,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"50ac09d6-d831-4ab5-b770-85bc52e4925a","block_type":"box","text":"continue in the future.","page_number":115,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"8073b92d-8d04-4da8-9b67-f7ee5b1b576d","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in foreign","page_number":115,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"b3c8d214-4a8a-4e7d-a48c-aa104546a4db","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":115,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"50e377ab-b0de-47c9-9680-f610a0f951d2","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":115,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"06eaaf32-8c16-4257-a971-b1d113fa378b","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":115,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"649a5757-348f-45b6-9250-542d55b77f91","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":115,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"4b4f97e3-3bc8-405b-a88c-ac3fdb69f949","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":115,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"0c73a6e7-a6a5-4450-b729-eec3a544e11b","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":115,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"54734f5f-e03f-453a-b576-2f3e4d54bb79","block_type":"box","text":"utility companies being able to earn more than their traditional regulated rates of return, while others may be forced","page_number":115,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"60f69518-bc31-4a30-b881-3cfb7ac8b167","block_type":"box","text":"II-77","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4aeb106a-d01f-47c9-85c1-348b704d1537","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":115,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"853f66cd-5747-4589-ac09-c4a79a48ab30","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":116,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"e268d79f-09ba-4a9e-994d-f6500c4df6b8","block_type":"box","text":"new uses of funds (such as for expansion, operations or stock buybacks) could result in cuts in dividend payout","page_number":116,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"186c0073-be80-4dea-901f-ebd19ca6742e","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":116,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"ba713dba-c91a-4be6-a32a-5e867feabaf9","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":116,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"2560ffc6-a926-4b63-ad19-44bf6def573c","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":116,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"c032155e-90a3-418b-81c6-9a0963a3d339","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":116,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"c9bea9b3-5ee2-4a36-ae55-f97e382ccc18","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":116,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"ada9ab26-ee99-4377-b30f-7a3d9d7872b3","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":116,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"12ec9ffa-eeeb-45a9-b8b4-b672a0cd40ab","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":116,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"623dbee3-611c-4950-8efb-bba48a3f5be5","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":116,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"60dcc5da-030c-4a74-abce-6ebea0c49bfa","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":116,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"0fb721d8-463c-4db3-844c-73b1b7aba8ea","block_type":"box","text":"than those used in the United States, which may require such utilities to invest in pollution control equipment to","page_number":116,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"81bc4009-e5cf-44b3-87c4-d81d239cc1e3","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":116,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"438c54e8-6532-4101-bce4-9e8e063013ed","block_type":"box","text":"ways different from regulation in the United States.","page_number":116,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"685e82a5-6e20-4089-98ab-475b31883bb9","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":116,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"341c90e0-6d18-4c6d-bc91-f57bddc52851","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":116,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"fecf12f7-8e7d-4c40-93d6-ac4e610fba30","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":116,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"06d86ddf-9ec4-4b21-b675-ccad2a0169d8","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":116,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"d3af3626-6953-4adb-b558-d4071d3dc387","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":116,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"0232a072-1932-4593-ac12-bb0819a29499","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":116,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"3473da78-e8b3-4f0b-9c03-2584dbd029fa","block_type":"box","text":"ownership, is expected to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":116,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"df72fa2f-b52b-4b74-af16-d5f4ddae3ba7","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":116,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"8e142baf-95a0-4c0e-96cf-bca0b623d1ca","block_type":"box","text":"increase.","page_number":116,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"4680a36b-9738-48ad-a55b-f5fec1036f69","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":116,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"29ffef55-ea6e-4249-96b5-289e9d191843","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":116,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"b5d3a8b0-1493-48c9-9683-ada52056489d","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":116,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"2a307166-58da-4420-bbcd-bc2f2da2b10b","block_type":"box","text":"Electric.","page_number":116,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"d6f9df16-77cc-4ace-8a25-53e625bc7dff","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":116,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"ea2a9a46-bfa6-4e79-a826-0e52a5aa4590","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":116,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"fda225c7-2d82-447f-b375-3175eede8a35","block_type":"box","text":"electric utility companies, in general, have been favorably affected by lower fuel and financing costs and the full or","page_number":116,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"f75918bb-e00b-4431-841a-13274eeda47a","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":116,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"ed3bf71d-f2dc-4509-8f43-e69707608469","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":116,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"46cd6693-dac6-4854-82ec-d85abec9cf98","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":116,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"658e1a7b-2e85-45f7-84f2-215b5b27a01d","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":116,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"afdb3dcf-7046-4795-ad7e-2024bf1fe25d","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":116,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"4916ae9c-2405-44ff-96f6-dcb6e478b9cc","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":116,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"7236c397-6878-4359-a62b-80e077da4ed4","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":116,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"328f45b1-703d-4fcf-ab22-ee3d3ff22fa6","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":116,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"6a5e3e37-ed52-4ed5-a78d-977cfea95381","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":116,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"db45d67d-9b23-4caf-8be4-a0945a8e2d57","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":116,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"be027ea0-c954-42e1-8ac3-158ab166e42b","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":116,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"05fabcfe-f0d8-4413-a085-b4d7a0d151c7","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":116,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"85692731-f909-4b73-921f-9ebd5029ec30","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":116,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"b070d01a-a3d4-4b71-b7b1-0be18e6ea312","block_type":"box","text":"costs in rate authorizations or the risk that a company may not be permitted to operate or complete construction of a","page_number":116,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"6373ce95-3151-43d6-aeae-d2a4ae66dffd","block_type":"box","text":"facility. In addition, operators of nuclear power plants may be subject to significant costs for disposal of nuclear fuel","page_number":116,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"19b52ef2-0ed6-4dd1-a284-f4a24d69ea95","block_type":"box","text":"and for decommissioning such plants.","page_number":116,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"93adb3a5-ad4d-435c-abf4-7616f7ef44d0","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":116,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"2b6175d9-bf2b-4910-8dab-f5b6be52bacf","block_type":"box","text":"impacted to a greater extent in the future by the division of their asset base. Electric utility companies that focus","page_number":116,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"27fcc0a4-9b04-43b0-a306-61e3e230d95e","block_type":"box","text":"more on the generation of electricity may be assigned less favorable ratings as this business is expected to be","page_number":116,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"e2d96bca-7bc9-45f1-ba09-9234aa9a5c35","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":116,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"fcb0480d-39cc-4445-8eee-5b8047d45718","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":116,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"2bda3084-2dd0-4141-93b4-5d2207183c4e","block_type":"box","text":"greater predictability of cash flow.","page_number":116,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"f7d220f3-0982-40d8-911a-b58e2740b375","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":116,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"02b64456-32d9-4817-a353-465c63a97dbf","block_type":"box","text":"the industry as a result of such deregulation has at times resulted in lower revenue, lower credit ratings, increased","page_number":116,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"0519b617-aaa6-4a6d-821f-196870026c17","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":116,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"1b2fdbfd-f9ab-4333-8f65-e93b0dd70d0d","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":116,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"48d78229-21ee-4a4b-b6d3-7361f365e984","block_type":"box","text":"II-78","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f87e8e53-ae6d-4fb7-a50c-53cfd1d6a7dc","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":116,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"860f0800-1d42-4872-ac6e-9fbe0b67e2d6","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":117,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"1d3a1434-4c8a-4963-ba30-e364a98034b9","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":117,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"a8fc439f-3e96-426a-beda-c1a9e36047a0","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":117,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"44da3c27-18e2-4bf1-9b5c-48e39315b3ff","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":117,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"57bcd529-e92c-49f7-82c8-6da3527bcc36","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":117,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"d2427e66-ad6d-42ed-b72a-a44a02b9b703","block_type":"box","text":"Telecommunications.","page_number":117,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"3f871ef9-21f6-4ebb-a322-909547f2ad25","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":117,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"959cf169-f665-4fbd-b883-48120e2d19b8","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":117,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"e71c7443-d9e4-4825-b400-5e8e4d9c5526","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":117,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"c09700ab-7f79-4186-8242-e3a2cdfb2fe3","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":117,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"91156dae-b814-4a26-b3a8-8666512be1f2","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":117,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"03b26bfc-a857-45d4-b001-e5fde2ba7089","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":117,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"26ea0005-6c2a-4273-b845-263e4b45c67a","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":117,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"a4619c9e-50f2-414d-a73a-7e87acea5ba9","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":117,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"4a903d06-4b45-4af7-9d8d-a4bae37fa89c","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":117,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"ffb439c7-57ea-4d5b-8f47-aac8d8f5441c","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":117,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"a1bc614d-0b63-4e83-bb3f-7c008a33b89a","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":117,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"4cf03249-e9f0-4ec9-a378-b697204ef25a","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":117,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"633a421f-433a-4e20-b6c2-6b9574aff1ea","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":117,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"35aa7547-0232-47f9-bf82-c1c07b008f6e","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":117,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"ee68c0fd-055c-42c1-a315-f301ce4d1cfb","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":117,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"61e32dc0-5b1a-46dc-988c-765a2cf69a69","block_type":"box","text":"residential, corporate and governmental customers.","page_number":117,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"e43bf2bd-a599-420b-9764-144073bc7e82","block_type":"box","text":"Gas.","page_number":117,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"a73617da-5886-40cc-9a3b-e683a4227709","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":117,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"a493faa3-f34b-4ec8-9c52-642fd9fda9d3","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":117,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"c1c044b7-06ea-409c-82a2-de0fea598b52","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":117,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"667e0b98-ded6-45f3-9dff-bb35dff47a51","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":117,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"5f5f55a0-ec4d-47e6-943b-ae87064b1833","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":117,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"87435bcd-0fbf-45d7-a571-513f7fe609e6","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":117,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"96f14a9f-486f-44df-aa32-e7fe04cb8742","block_type":"box","text":"outlook in the future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":117,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"526c1ff6-7fe9-4eac-bc0b-a05d0bf4d5c8","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":117,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"2215bc85-aa78-490a-8645-4762cae8d125","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":117,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"4983e769-eef1-4015-b954-f43f704af33b","block_type":"box","text":"Water.","page_number":117,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"3030dd44-5f03-48ac-b92a-a20ba161f3d4","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":117,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"a5cbadd8-95d8-4d92-a5f3-c14626db04c5","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":117,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"477cb6a9-a542-4e7f-9fcb-57da9c1bee30","block_type":"box","text":"Companies in this industry are generally mature and are experiencing little or no per capita volume growth. In the","page_number":117,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"323e45ea-6d89-4298-91cc-576863f582f4","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":117,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"fcbeea46-1bbb-4d9d-a097-2f36fcb040f1","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":117,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"1d09c35e-ce72-40e5-b5dc-2cedf216b525","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":117,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"f5a37fa2-b93e-48d7-b608-ad143ff9f97c","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":117,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"e16a7b60-867c-4caf-86ff-f4bc1171b608","block_type":"box","text":"Utility Industries Generally.","page_number":117,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"ff2f2f29-f228-4cc5-b5fb-15b140fc139b","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":117,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"aa76d030-ccda-4025-99ba-c6d854167407","block_type":"box","text":"those relating to privatization and changing regulation, will occur or that risk factors other than those noted above will","page_number":117,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"40a50fc2-0fd4-414a-8016-2b22220035ed","block_type":"box","text":"not develop in the future.","page_number":117,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"b5a213bb-4c20-4deb-badb-a7c3ebb9fe20","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":117,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"83d18459-8c87-41c7-9c49-588195a4205b","block_type":"box","text":"A Fund may purchase or sell","page_number":117,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"46e859bc-7f0a-4b9f-b149-145b8dd4d4e4","block_type":"box","text":"securities that it is entitled to receive on a when-issued basis. A Fund may also purchase or sell securities on a","page_number":117,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"e5e6187a-2853-4197-a77c-bef8dac7aa1d","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":117,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"0695322c-d681-4e68-8c97-6804c95a2a4c","block_type":"box","text":"transactions involve the purchase or sale of securities by a Fund at an established price with payment and delivery","page_number":117,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"b3e6b4a1-b66b-48a9-a469-273cdb99dfea","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":117,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"8275bccb-3902-4788-b439-b9d702b3e3f6","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":117,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"d71b0aee-a26b-4bf6-8408-7e4123232100","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":117,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"5adac9c0-da0e-42b4-b950-479ff5e9b309","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":117,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"d988d438-892f-4957-b67c-b324a96504e2","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":117,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"f741ef0d-5b2b-4b1c-a299-c9f977b66dd8","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":117,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"cebbf313-f613-4386-bd16-edc6fc83c476","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":117,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"3a5a375d-3bcd-4abb-b05f-e8c7401d1cf0","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":117,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"272cea28-bbe7-4f45-8612-451281507584","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a security","page_number":117,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"7dc7a578-ebe1-4e6e-b061-01fb056f15e4","block_type":"box","text":"purchased or sold on a delayed delivery basis or through a forward commitment will be delivered. Also, the value of","page_number":117,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"087fb61f-f797-4e65-88e5-ff00cbcadfaf","block_type":"box","text":"II-79","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bcbd849f-eee6-4407-8204-3439dbc5f9eb","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":117,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"3c33585f-f090-404f-a27f-2a9105a0477f","block_type":"box","text":"securities in these transactions on the delivery date may be more or less than the price paid by the Fund to purchase","page_number":118,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"06360533-71a9-40ba-8e9d-1d44a0445c1a","block_type":"box","text":"the securities. The Fund will lose money if the value of the security in such a transaction declines below the purchase","page_number":118,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"5c0b561d-ddc7-4445-973e-9275eb94203c","block_type":"box","text":"price and will not benefit if the value of the security appreciates above the sale price during the commitment period.","page_number":118,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"d32c3829-e84a-48d5-a908-73556a84b259","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":118,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"fc6d1b12-dcd7-4f03-9cce-906ea524ff0f","block_type":"box","text":"after it has been entered into, and may sell securities it has committed to purchase before those securities are","page_number":118,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"1119315a-cca3-4ee3-a9e1-c9014b9afc03","block_type":"box","text":"delivered to the Fund on the settlement date. In these cases the Fund may realize a taxable capital gain or loss.","page_number":118,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"8a010de8-57df-4970-a19c-6237603e2110","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":118,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"f3d32268-cc9c-4bf8-88d0-906e25d900db","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":118,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"efa23209-87b9-45d9-b7b0-a01c7173a001","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":118,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"362a7170-18e1-4049-9f17-4749da792126","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":118,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"be6c9421-979b-45c8-be6c-dd03a71859b7","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":118,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"3cee3a4b-07e8-42f1-a738-5c0292e483dd","block_type":"box","text":"day the Fund agrees to purchase the securities. The Fund does not earn interest on the securities it has committed","page_number":118,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"f0aa7465-d6f9-49bd-add4-d37853de1401","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":118,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"c8cbced0-d2f5-4365-8ad3-290f7c452265","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":118,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"29eb4927-16da-4b31-96c4-c21c6535bd79","block_type":"box","text":"securities (","page_number":118,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"3034f11f-f630-4119-983a-9c7bd52eb18b","block_type":"box","text":"e.g.","page_number":118,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"547ddedd-9047-4ead-8a80-3d769a8564b8","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":118,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"449a5716-bd33-4579-a0f7-86f3eba98b30","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":118,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"7734b96b-27a7-4ddd-bfef-0fcdc57d62d8","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":118,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"239f4b3f-fd98-4f54-9326-376999285f43","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":118,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"70d4569f-c7a9-464c-91d0-73291f60e3f7","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":118,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"855b1399-c800-4f9a-85da-21217544db33","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":118,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"c78edfe0-014e-48fe-9e80-8f61dc8a70cf","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":118,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"af13e849-aac3-4de3-8702-1c8a8af613e6","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":118,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"22b9db7a-a958-46c1-b04d-f5cf7e6a23c8","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":118,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"0e74b93e-f2f5-4d4d-ac12-afc4ce282b45","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":118,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"98e06849-1ef8-4470-9924-6289af6789be","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":118,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"b40461d2-2a84-4617-ada0-b84e541ec794","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":118,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"dde4bbce-a13b-4049-b57b-be491cbc8eac","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":118,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"98978938-3746-4bc1-ae9c-98117d8afe4a","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":118,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"04ff61e9-4b40-4007-a4d0-3e50219e8cca","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":118,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"c05800ef-a32c-4c30-936b-1ad24ce21638","block_type":"box","text":"Yields and Ratings.","page_number":118,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"8fa3366b-c0c1-4577-a351-7aac465b0ecb","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":118,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"4a6a24c6-574c-4232-88b3-0c5c5dc9c708","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":118,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"f0086536-f4fa-4768-971f-6fe2da5775d3","block_type":"box","text":"of the offering, the maturity of the obligation and the ratings of the issue. The ratings of Moody’s, Fitch and S&P","page_number":118,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"8b984665-2938-4ff9-b71a-1ec6ab68a45c","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":118,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"5f367e7b-4612-4d5c-a368-b508106945d9","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":118,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"23f7f81e-1177-4426-806c-b0939e5ff9b0","block_type":"box","text":"interest rate may have different market prices. Subsequent to its purchase by a Fund, a rated security may cease to","page_number":118,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"25a70a66-45a6-43c7-a0b6-5b4ef84b32ea","block_type":"box","text":"be rated. A Fund’s Manager or sub-adviser will consider such an event in determining whether the Fund should","page_number":118,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"12d59e9d-ea74-4145-a4ff-9025c6fe8c5f","block_type":"box","text":"continue to hold the security.","page_number":118,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"ea510aef-e418-4176-8a18-f518f9248137","block_type":"box","text":"Zero Coupon Securities.","page_number":118,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"0784727f-b3b7-4240-a33e-f8987d0def2e","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":118,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"56a5106a-d9ec-42a9-a5bb-ccfb27717681","block_type":"box","text":"not pay interest during the life of the security. The discount approximates the total amount of interest the security will","page_number":118,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"6b1d303e-95d5-4bef-8e94-0e3b4116dd26","block_type":"box","text":"accrue and compound over the period until maturity at a rate of interest reflecting the market rate of the security at","page_number":118,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"f4b87b7d-f49f-47a9-be49-b3fdaaa0240b","block_type":"box","text":"the time of issuance. Upon maturity, the holder of a zero coupon security is entitled to receive the par value of the","page_number":118,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"380aa491-428b-4a2b-86f9-48a8e48c529f","block_type":"box","text":"security.","page_number":118,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"67c43c9a-fe14-4b16-9e77-e32edaa56632","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":118,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"581c89d3-3a2b-4bf1-8b6f-8982b464f334","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":118,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"edda811b-667d-4772-a910-814e3b45f2bf","block_type":"box","text":"owning instruments that do not make current interest payments is that a fixed yield is earned not only on the original","page_number":118,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"694f52a0-8534-4148-9459-5043725e134d","block_type":"box","text":"investment but also, in effect, on all discount accretion during the life of the obligations. This implicit reinvestment of","page_number":118,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"4af94a23-8086-4bbc-96de-e990dac673d2","block_type":"box","text":"earnings at a fixed rate eliminates the risk of being unable to invest distributions at a rate as high as the implicit","page_number":118,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"6b0087d3-acb8-45e1-81d6-2b9c99d3411a","block_type":"box","text":"yield on the zero coupon bond, but at the same time eliminates the holder’s ability to reinvest at higher rates in the","page_number":118,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"5cfa85de-a032-4e06-8c5b-f7da338af191","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":118,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"7297457a-ed75-4e5b-94f6-ec16b954099a","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":118,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"6189fc82-dafe-460d-8a0e-490588a4f497","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":118,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"79647ba0-8454-4bfd-bde2-b13a5cd741e9","block_type":"box","text":"benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to","page_number":118,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"e6dc159e-8910-45e8-af93-f4fd220fc13f","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":118,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"2c4ade71-f6cb-4de5-9e37-65d1fbdc9c6e","block_type":"box","text":"II-80","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cbc83add-c181-475f-a72e-5a5cb3430b0b","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":118,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f34e656a-e554-43f7-ba4c-63b9f3cebce4","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":119,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"7a8429b1-306a-4662-b7a9-0b10062f24fc","block_type":"box","text":"prior to the receipt of cash payments. Zero coupon securities may be subject to greater fluctuation in value and less","page_number":119,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"fa3ad955-e10d-4030-93af-283b487b52c6","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":119,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"26efe299-9f1f-43bc-95c7-027fbf02f144","block_type":"box","text":"intervals.","page_number":119,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"f21193fd-920b-49fc-b7c7-f1743358c18b","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":119,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"348da96a-7e68-451f-9bf9-7f98fae28712","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":119,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"81997e72-1e01-4c02-ad0e-f9a31b7485e2","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":119,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"ee0f9c5d-6ac9-4af1-b76b-35d1e302480a","block_type":"box","text":"generate the cash to satisfy these distributions. The required distributions may result in an increase in a Fund’s","page_number":119,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"6861cfa7-d4ee-4c2b-91d3-5b302d2df95e","block_type":"box","text":"exposure to zero coupon securities.","page_number":119,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"71de6db3-af84-40fc-99b7-73b638341b9b","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":119,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"2c5cfa3a-4efd-4e06-8126-63562399cb7a","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":119,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"f06c94ba-68d4-4dee-83c8-e42e2c72cec6","block_type":"box","text":"In addition, as these securities do not pay cash interest, a Fund’s investment exposure to these securities and their","page_number":119,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"04f98ba7-b0d7-4057-aab8-552800949614","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":119,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"6526700b-479f-40a0-8d27-7a05840218e8","block_type":"box","text":"Suitability. (All Funds)","page_number":119,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"0fed8354-626b-4b2c-929b-892aa495cbbd","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of the Fund,","page_number":119,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"0a8bba60-943d-4af0-9e4b-73e56276df3c","block_type":"box","text":"the Manager and its affiliates. Each Fund should be considered a vehicle for diversification and not as a balanced","page_number":119,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"e3428f58-48b2-45f8-949b-4f3eb8dfa997","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":119,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"a9f24496-3dd9-4513-9927-414bd8531b1b","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":119,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"32b4c468-731b-4f13-abe5-a41be22d1692","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":119,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"fd424fbb-82c5-4266-80cf-dc492785e988","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":119,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"575eddbd-ff15-4075-9a2f-5925ea973310","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":119,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"9abce2e2-1718-4de9-a157-27c596286d99","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":119,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"212d0243-7e55-4e36-a999-a436a1227ac4","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":119,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"db74bce5-55c1-4cfb-9cd7-3e6fd5b6d94f","block_type":"box","text":"Each Fund’s investments will be limited in order to allow the Fund to qualify as a “regulated investment","page_number":119,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"dd077d07-08c2-4995-baed-cea02fe01594","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":119,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"9dadfdec-f995-4ff6-a68d-ca59112e1dc1","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":119,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"c65301ee-37f2-4ea6-87a4-666c61a86acb","block_type":"box","text":"50% of the market value of each Fund’s assets is represented by cash, securities of other regulated investment","page_number":119,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"19c84293-553c-4af8-8a13-9974499af527","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":119,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"7866ea20-7bf2-420d-921b-e176e47e18e4","block_type":"box","text":"issuer, to an amount not greater in value than 5% of the Fund’s assets and not greater than 10% of the outstanding","page_number":119,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"0504cf2f-76d9-4d2a-9559-7ef834682f31","block_type":"box","text":"voting securities of such issuer and (ii) not more than 25% of the value of its assets is invested in the securities","page_number":119,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"ca9dc145-3411-4b79-87df-b6374db6409e","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":119,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"6df4e4fa-856f-4453-ba99-cfc769628105","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or similar trades or","page_number":119,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"3ff9859d-7bea-4efe-b573-867f75951f78","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":119,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"d86498cb-dd9c-4b17-a15e-12d39a3209d9","block_type":"box","text":"(","page_number":119,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"4a42b142-a8d5-4c25-bb2d-2a429bb196d9","block_type":"box","text":"i.e.","page_number":119,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"3587370c-11d8-4995-8b5c-4abeb507fe14","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":119,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"e842f7af-ef7f-435b-a4d8-c27c0f2dfe91","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":119,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"b63190d0-4a57-48fe-8637-0b22e9e62f2b","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":119,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"9fd07f16-2d9b-47fc-94dd-1373092db9b4","block_type":"box","text":"of its political subdivisions, agencies or instrumentalities and each multi-state agency of which the state is a member","page_number":119,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"2fee1334-86c6-4821-be32-f928e96130db","block_type":"box","text":"as a separate issuer. Each public authority that issues securities on behalf of a private entity generally will also be","page_number":119,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"8407901c-80b2-469e-973a-4ff1c0416063","block_type":"box","text":"regarded as a separate issuer, except that if the security is backed only by the assets and revenues of a non","page_number":119,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"a568c314-8cc6-4b5f-9787-bba726f14c21","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":119,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"707f9b9f-e60d-4fb9-a50d-4a99c16a1838","block_type":"box","text":"regarded as the sole issuer.","page_number":119,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"27799a5f-b698-4ebf-8be2-d844652c3a97","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":119,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"d88dbc3a-e51f-43a1-b16b-fa357e62ee58","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":119,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"d02e411a-42c9-4077-a93b-3b743e6343ac","block_type":"box","text":"considered to be obligations of a single issuer. These tax-related limitations may be changed by the Directors of a","page_number":119,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"4e5f8156-14e6-4e95-ac9b-1a4f54b5c92e","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. A Fund that is","page_number":119,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"7a884dca-708b-48d7-89dd-2db92da5605c","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":119,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"c197e965-0c08-45be-a1c8-dc8ae22379fe","block_type":"box","text":"75% of its total assets.","page_number":119,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"54db30da-7f38-443a-aeb8-92ce3a42d63d","block_type":"box","text":"II-81","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5aafb122-bfdd-412d-8a18-69774c5ee31c","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":119,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c7a82a33-f8b7-4c36-8816-62f25227d205","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":120,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"93ac3149-0d60-4e09-96e1-aad8a42da339","block_type":"box","text":"Directors and Officers","page_number":120,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"46332b88-dec3-4434-ac45-b521980f2452","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":120,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"0279b7f6-68f8-447a-bde8-a49206eedcf7","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":120,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"17f4041b-2f9c-4a85-9e48-e6349c987fb2","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Par t I of each Fund’s SAI for biographical and","page_number":120,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"a290555c-e8de-4d82-991a-2c4e6d8ad1b4","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":120,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"2bc11c8c-064b-4dc9-b89a-8e89e6b3f95f","block_type":"box","text":"Management Arrangements","page_number":120,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"cbd7a9d2-0016-47d1-abd3-f82189c9512d","block_type":"box","text":"Management Services.","page_number":120,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"33bfd985-be49-4fe3-8b34-99c4ecb98994","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":120,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"aa2c4127-5712-4c6f-806b-b264f6c531bf","block_type":"box","text":"Subject to the oversight of the Board of Directors, the Manager is responsible for the actual management of a Fund’s","page_number":120,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"e14b0c82-190a-4f01-9ba1-06b0dff43c4d","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":120,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"71610c80-53cc-4f8a-96e3-b043e7972fdf","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":120,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"651e2622-faf8-47b6-a60b-b585845f6eb7","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":120,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"26aed934-b9f8-4c04-8081-4070630deedb","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":120,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"6c4d9fa2-7a0c-4843-8bad-56a9bd6ce631","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":120,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"838cb72b-d2f9-4790-a8f7-d4bc5a99c5f2","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":120,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"1a8f6961-241b-42c1-82fc-e0d5d1b46b39","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":120,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"cad73ff0-6f9e-413f-a570-22d4a76e6455","block_type":"box","text":"Management Fee.","page_number":120,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"81337e16-25a5-4804-9ba4-75159de258d3","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":120,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"cff0fac5-0300-4832-bbf4-13beeb68d4bf","block_type":"box","text":"the Manager receives for its services to the Fund monthly compensation at an annual rate based on the average daily","page_number":120,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"52fe8fbe-4a3d-42e5-aee9-45f85e4fb4dd","block_type":"box","text":"net assets of the Fund. For information regarding the fees paid by your Fund to the Manager for the Fund’s last three","page_number":120,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"28eecc77-4a0c-4c3a-960c-8e145a9128ee","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":120,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"1f3b34d5-0e68-4a67-9487-9d8adfc12108","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":120,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"a5108d25-4f18-4a8e-be3c-514af80ff6e2","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":120,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"517384bc-7b8a-42a3-86e2-32e1ad8d18bc","block_type":"box","text":"management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":120,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"d4d3a300-d8fa-4ae7-8912-5fd546a89a89","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":120,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"f538a6eb-6960-4ca5-94e8-5b94aa7f0f8b","block_type":"box","text":"the fees of all Directors of the Fund who are interested persons of the Fund. Each Fund pays all other expenses","page_number":120,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"9485c0e4-ad7a-458f-89b2-40c10b5320a4","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":120,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"2aae904b-d671-4ecf-bc9a-518291324810","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":120,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"536728aa-2db6-4e63-9c85-20d763bfda5e","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":120,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"9160326c-7e40-439c-9b9d-5d32a8fc58af","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":120,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"cdc7b0af-66b6-4623-aca7-80190114f09a","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are not interested","page_number":120,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"f1e63f66-fd7f-4783-9615-086419e47b2d","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":120,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"51f34842-61d7-42b1-af15-0ab2e42bca1d","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":120,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"d6039eaa-20d8-4ff3-918c-4f9b4738e16b","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":120,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"2372916d-498c-4ac7-b9f6-97b02a7688d2","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), The Bank of New York Mellon (“BNY Mellon”) or JPMorgan","page_number":120,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"eee45740-2f8c-4378-8972-6968ca1a9b61","block_type":"box","text":"Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as applicable, and","page_number":120,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"079e906b-0251-4cfd-a4ac-96061778cf38","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays cer tain promotional expenses of the Funds","page_number":120,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"cd34589f-7b2c-408b-b65d-000f70eaa15e","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Cer tain expenses are financed by each Fund pursuant","page_number":120,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"e4580d65-a286-416e-bdd4-bd2af93600a3","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":120,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"4fd1a99c-ef9b-47b6-926a-a3029138c84f","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":120,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"37cc7172-6b2f-4f9d-ae82-21fac060510d","block_type":"box","text":"Sub-Advisory Fee.","page_number":120,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"c7c74548-5875-4a32-a467-2e2c634bfc60","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":120,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"a2809808-7361-4620-b4f8-fe5128325a8c","block_type":"box","text":"“Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each such Fund’s Prospectus (the “Sub","page_number":120,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"74f0a656-6d7e-4c75-89af-02762f0694b7","block_type":"box","text":"Adviser”) pursuant to which the Sub-Adviser provides sub-advisory services to the Manager with respect to the Fund.","page_number":120,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"2b1f9a73-0f15-4352-b0fc-3d3a10bcab4c","block_type":"box","text":"Organization of the Manager.","page_number":120,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"ba37eb10-f8a6-49ac-997a-524fb7e509ff","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":120,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"f19ab014-f057-441e-ba04-2a0dade5a791","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":120,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"cfa2c951-8864-4319-80fb-75fc51b1e3db","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":120,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"62e8e1f6-560a-42a3-86d2-82930bfe7d71","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":120,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"4b926171-8b73-4f8a-ad48-c206f80779c9","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":120,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"af57de0f-5f44-4f8e-9bf6-0c46ccc4ede6","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":120,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"da014cbc-424a-4a63-b37a-6a3ee5f88741","block_type":"box","text":"Duration and Termination.","page_number":120,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"88dfb8ab-161b-4853-887b-d49fb81664f3","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":120,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"5dcf3c2c-fb88-4ba4-b107-8db2892465e6","block_type":"box","text":"Sub-Advisory Agreement will remain in effect for an initial two year period and from year to year thereafter if approved","page_number":120,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"5e2177a8-779b-40de-b6b3-b32453f32b53","block_type":"box","text":"annually (a) by the Board of Directors or by a vote of a majority of the outstanding voting securities of a Fund and","page_number":120,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"96e3b3e5-91b4-4b54-bacf-5ad18e78dc93","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":120,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"ee433be9-95d3-4b72-9096-0dff3780a317","block_type":"box","text":"II-82","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0b825021-a21a-49d3-b056-3df922e75e75","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":120,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"8c68c77f-e51d-4fe6-aed5-b68676e7536e","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":121,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"16d9718b-8812-4ada-bae4-f1a57a3177eb","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either par ty thereto or","page_number":121,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"6d59060f-c019-4d30-b968-8a38fd6703bc","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":121,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"54958d30-d511-4857-aa79-0d734feb33c2","block_type":"box","text":"Other Service Arrangements","page_number":121,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"2ef2ddde-a5ff-42ba-ac8a-872f79f470ef","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":121,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"89536d89-34ba-4560-a1aa-c9c9dae57064","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":121,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"ffaec2e9-5afc-4d6e-b747-6ef4b9c9f176","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":121,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"7ddf6763-d815-49a8-a754-40a4efb87388","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":121,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"3035b132-8f7b-43ee-a2af-1ebb5222dcfe","block_type":"box","text":"annual rate set for th in each applicable Fund’s Prospectus. For information regarding any administrative fees paid by","page_number":121,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"4399a86d-58ee-4780-9bc8-124fc23b6a57","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":121,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"2393a332-0389-46a1-b0ff-232f38c67503","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":121,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"ac75f197-c4b3-458e-80c3-23618e1e40d7","block_type":"box","text":"that Fund’s SAI.","page_number":121,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"be94c92b-28cd-49bb-9977-14244fdd65d2","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":121,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"30b362fd-2dc3-45f3-a356-df65798e2254","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":121,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"c57526da-dcdb-4111-a4e6-40e6785c4ca3","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":121,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"1159ccb9-9663-4173-8826-c56534fad85a","block_type":"box","text":"obligated to pay, or cause its affiliates to pay, the fees of those officers and Directors of the Fund who are affiliated","page_number":121,"box":{"x":69,"y":286,"width":826,"height":12}},{"id":"604ac400-2aa1-418e-939d-2abc0fd3e4dd","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":121,"box":{"x":70,"y":302,"width":362,"height":11}},{"id":"b67a7fb6-51e6-43c3-8bc5-974eff501ccf","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":121,"box":{"x":102,"y":324,"width":390,"height":12}},{"id":"417247b7-f1dc-4f25-be95-abce7d7d63aa","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":121,"box":{"x":499,"y":325,"width":364,"height":10}},{"id":"c7d4fcd5-3317-474f-b8ed-a497e40bf154","block_type":"box","text":"Administration Agreement with BlackRock will continue for an initial two year period and from year to year if approved","page_number":121,"box":{"x":68,"y":339,"width":832,"height":12}},{"id":"f7477cff-3a11-4f80-bc55-e187b0b64be7","block_type":"box","text":"annually (a) by the Board of Directors of each applicable Fund or by a vote of a majority of the outstanding voting","page_number":121,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"eec23055-c90d-4323-b170-d3b72b8cefec","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not par ties to such contract or","page_number":121,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"294108c8-cfeb-450c-b6fd-e0010e3c1efe","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such par ty. Such contract is not assignable","page_number":121,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"c6b4374f-dc4b-4369-9f8c-b7235e5559a3","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":121,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"fa4ce176-8f39-4d65-9653-0bf32bcb24a1","block_type":"box","text":"shareholders of the Fund.","page_number":121,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"e5b4925e-4433-45e2-b633-7ac48cc5fcc6","block_type":"box","text":"Transfer Agency Services.","page_number":121,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"59e81066-e126-4e96-81e9-23e75dc5e7a4","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":121,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"20654670-6588-4ca0-bdac-11b90df56360","block_type":"box","text":"subsidiary of The Bank of New York Mellon Corporation, acts as each Fund’s Transfer Agent pursuant to a Transfer","page_number":121,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"e4df0470-92aa-4fcb-b2cf-6b7f7d8d58b4","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":121,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"266e72c9-7350-4e94-8406-8b7c87760a25","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":121,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"ba679f67-f1f4-4294-982b-40532649f5a9","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":121,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"6f8df17c-45f0-44bf-841b-6b9bb216b347","block_type":"box","text":"Transfer Agent a fee for the services it receives based on the type of account and the level of services required. Each","page_number":121,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"69a613d6-37c8-4e73-bf5c-35f56364fb3d","block_type":"box","text":"Fund reimburses the Transfer Agent’s reasonable out-of-pocket expenses and pays a fee of 0.10% of account assets","page_number":121,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"818a0daa-6adc-49fd-a345-25ed9e555334","block_type":"box","text":"for cer tain accounts that par ticipate in cer tain fee-based programs sponsored by the Manager or its affiliates. For","page_number":121,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"a0b81eca-d8fa-4971-bfc4-bc5d7085c1e5","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":121,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"c3362bc8-f9c4-4847-80d3-430d2f463832","block_type":"box","text":"by the Transfer Agent and any other account representing the beneficial interest of a person in the relevant share","page_number":121,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"56b82071-5066-4f70-ad6a-daf16662353c","block_type":"box","text":"class on a recordkeeping system.","page_number":121,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"a28da18d-547b-4f74-9e56-965f0a46684d","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":121,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"fe067806-2eec-4b68-9f24-9080317a8af2","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":121,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"8ab79963-f52c-4c2b-8ed5-0c6558c0e3e2","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":121,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"7310513a-6ee2-43a2-b708-aa82453bd647","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":121,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"5d5cee9d-2523-42ef-9c20-a6ddd65c1303","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":121,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"3ee79e23-9170-4fbb-8c54-361da72e115c","block_type":"box","text":"Custodian Services.","page_number":121,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"186ef84c-2aed-4d1c-a0d8-9cbb0ce7c038","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":121,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"9ce13dcb-05e8-4811-802a-8e884bb86870","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":121,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"64387dac-cb80-47d7-bff5-6f0d965c6074","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":121,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"c34824e1-d9b5-4be3-9947-c05105cc9663","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":121,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"81492fdd-5535-42fa-aafe-928949ee4e8b","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":121,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"87e6f3c8-92b1-4b46-abb2-55a53114f7bf","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":121,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"d1e78bc6-e55e-4bba-aebb-92d3c0c65b8f","block_type":"box","text":"cer tain assets.","page_number":121,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"86ed68f0-2f75-4d7d-96a7-e6195e22269d","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":121,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"636a9eaa-8c35-45b4-8e1d-4bcfed84ba6c","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to cer tain Funds, on a monthly","page_number":121,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"b1c37cd1-58af-4158-bc52-0b7a54ed8590","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":121,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"0ba18f69-e6e5-4568-9027-494a92d4f4f6","block_type":"box","text":"credit”) or a charge based on that net amount. With respect to such Funds, the custodian fees, including the amount","page_number":121,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"6d332048-3057-4411-b6d3-5d187c7b0d94","block_type":"box","text":"of any overdraft charges, may be reduced by the amount of such custody credits, and any unused credits at the end","page_number":121,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"3d9151f6-8da8-4b49-9c44-85722a14972d","block_type":"box","text":"of a given month may be carried forward to a subsequent month. Any such credits unused by the end of a Fund’s","page_number":121,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"f5772a53-fd64-4f5d-b6b8-a5c47d72f0f0","block_type":"box","text":"fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":121,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"16e95f2b-8c48-4f4f-83fe-cad297d42092","block_type":"box","text":"Fund.","page_number":121,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"4c3d0649-d2eb-4ad8-8ddd-e9f77c1ddf36","block_type":"box","text":"II-83","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0b9d99db-4a4e-48ad-83ca-a4e602158fad","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":121,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"ec8afebd-ce82-45a6-b7bb-38d4f1680ee9","block_type":"box","text":"Accounting Services.","page_number":122,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"d45a2bb5-3773-498d-be46-a7e0ac5fee9f","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":122,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"855ef891-0e8f-4341-a3ac-b9d4c3c81f22","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides cer tain accounting and administrative services to the Fund. Each","page_number":122,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"32857e89-dc46-496e-90b3-f84c1ed6ad06","block_type":"box","text":"Fund pays a fee for these services. State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":122,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"67f09cac-a8aa-406f-9f46-e6068606fcaf","block_type":"box","text":"Master LLCs.","page_number":122,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"9322cf93-0fb6-4bda-90b1-7a26f3c16d8a","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":122,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"babe6594-00d4-472a-bb56-9167970a3387","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Par t I of each Fund’s SAI for information on the","page_number":122,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"c047fcb8-f3f5-4d0a-a4f3-d5b47a49d977","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":122,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"3400f5b1-c46e-4be2-afaf-811ecdee5507","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":122,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"94d74aad-7b20-4eca-885d-3b5ffdd0b89d","block_type":"box","text":"Distribution Expenses.","page_number":122,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"c2f8c613-b1d8-4e22-8b40-9f3f3dfd9a57","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":122,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"3e38f8c6-90ec-4ff5-81a0-7a408761d783","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). 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In some cases, such por tfolio holdings are made publicly available on a daily basis. 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In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":127,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"c1ff1f44-12ed-479e-b0da-6f23a99b351f","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":127,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"4c5623d6-3a88-4619-8d7c-4fb1d783ec96","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":127,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"84e93855-348a-4d3a-9a57-bb536b0f79f1","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":127,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"e27a5e79-2688-4f17-9657-7f6945320bfc","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":127,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"26ab00ca-eb4d-445e-9b0a-e33af4c86d0e","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":127,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"0a7b4b36-eb72-4d4c-b769-5db8cfc495cd","block_type":"box","text":"II-89","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dec89b95-4916-46bd-8511-4d57aec8e9ce","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":127,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"aeb10eab-a563-418a-a75f-91c6fe13de45","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":128,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"402c6eb6-ea61-482f-9935-6f19f1a3d6b8","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":128,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"f4482805-d26e-4c61-9696-75670c26ffa9","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":128,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"0f51cafb-b344-4f85-9acf-48652de263d5","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":128,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"d163122d-94b9-45b1-b965-b52fee559bd6","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":128,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"b9ae88e8-58fd-4e5d-bded-bc52f9bfe925","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":128,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"bc8141dd-8137-413d-be56-9dd90dd2ae2c","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":128,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"e5cbba82-de80-4043-be5b-e87772e3a7e3","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":128,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"507394bc-452c-4f1d-8eb9-aef241116518","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":128,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"87b3c9f0-74df-4042-b8ad-e84306c3de4d","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":128,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"63417d09-366c-4210-9e40-efd923e86591","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":128,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"6cde8d1f-4498-418b-8330-b9c7c531d17a","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may invest in or","page_number":128,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"22fd6d59-0486-4864-ab83-87867a17800f","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":128,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"31360e3b-7af1-44bf-b70a-abaedb012b82","block_type":"box","text":"advice or engage in other activities, or refrain from pursuing rights, providing advice or engaging in other activities, on","page_number":128,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"3dbbcabf-4b9f-462a-b267-107f6bce0c07","block_type":"box","text":"behalf of other clients with respect to an issuer in which a Fund has invested, and such actions (or refraining from","page_number":128,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"75e73cdc-eccd-465a-adfa-1f4a596b50cc","block_type":"box","text":"action) may have a material adverse effect on the Fund. In situations in which clients of BlackRock (including the","page_number":128,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"662ef9d8-8e78-48a0-bad7-e08513a4b47d","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":128,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"80a0dfdd-1655-49fc-b1a5-7544b4247682","block_type":"box","text":"actions or remedies that may be available to a Fund, as a result of legal and regulatory requirements or otherwise.","page_number":128,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"1d466803-7bcc-4b97-9573-ecf76ea95e3b","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":128,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"7b1adaf5-9e8b-4573-b0d0-250ba6b30765","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":128,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"fc857044-34cb-418a-a193-aca99d166822","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":128,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"65ee0a91-ab31-4d68-b150-b6ae83634147","block_type":"box","text":"situated holders of loans or securities rather than, or in connection with, taking such actions itself on behalf of the","page_number":128,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"284919b3-b121-4d81-bf73-93231bbebe1d","block_type":"box","text":"Funds.","page_number":128,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"4cf3ffbe-62ee-4e4a-9ef0-f563a98b8045","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":128,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"b8ddf11e-a995-4fa6-adfa-33ec4c5a677d","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":128,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"0efa96c3-83bb-4ff9-809d-a0378044662a","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":128,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"24394aae-4f12-40e1-b01c-cec4ecc9a283","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":128,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"d3702c2f-93c0-414e-8f12-5333ffb55a25","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":128,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"e157d80d-a607-4b69-87e0-22b6306ee348","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":128,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"133ccd04-49e4-4638-b2d7-77a6e62916f5","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":128,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"274d7c2f-c2a0-4e37-acbe-db3f3bd20f47","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":128,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"0aa6c605-586e-4871-83a0-b450962cc1c8","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":128,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"271cf89e-4cea-4c30-b015-692774f66922","block_type":"box","text":"In cer tain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":128,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"985ef5a5-7211-43ac-ba1e-d48e8f63c247","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":128,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"866700dc-4401-4c46-bee0-490e1c78a733","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":128,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"8aea9fb8-054d-4c6d-91f8-301cf2e989f4","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":128,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"4d40553d-8793-49db-9280-05eb559fe90b","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":128,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"7f61b675-6216-4461-9023-3dbf3dc54754","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":128,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"982e34e4-45bb-474d-a831-bfa44372e2a5","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":128,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"ebba2742-3480-48d7-9fd4-e334ed75e02b","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has invested,","page_number":128,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"460811b2-0b23-4cb3-a6d5-28879cf328ea","block_type":"box","text":"and those activities may have an adverse effect on the Fund. As a result, prices, availability, liquidity and terms of the","page_number":128,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"c40d9f21-a12d-4c21-a70f-0c10e4751eca","block_type":"box","text":"Fund’s investments may be negatively impacted by the activities of BlackRock or its clients, and transactions for the","page_number":128,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"ade9cd88-9a6b-4106-b59f-c26f619b90b5","block_type":"box","text":"Fund may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the","page_number":128,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"01d69937-4f52-454b-90bc-019539e6d881","block_type":"box","text":"case.","page_number":128,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"4580dbb8-4533-4bc1-97ab-b1bc4c19f6af","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":128,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"3409f478-74f9-425c-bb6d-0a42e7b139f8","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":128,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"7ef8bdfd-6559-423c-b399-2ffc63713e51","block_type":"box","text":"manages or advises. It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":128,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"f30bf261-468b-4dc8-b5fe-74290971935e","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":128,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"bdfbcc9d-5b51-4b5c-a4be-1388e16a48c3","block_type":"box","text":"Fund. Moreover, it is possible that a Fund will sustain losses during periods in which one or more proprietary or other","page_number":128,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"c2129ba2-6140-4155-81b5-d2af625d1801","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":128,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"0e8b4d04-53f4-4c9e-a125-a6031accac32","block_type":"box","text":"From time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in other","page_number":128,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"4d104de2-98d9-490f-bbb4-f54992bbf0cf","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":128,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"d7e234c8-4e34-415f-97fa-6cfa280a2198","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":128,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"a9b1f8ab-6ecf-472c-8dff-7c4742511b80","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":128,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"804b2fc8-deaf-48b7-beb2-418508f4e673","block_type":"box","text":"II-90","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"732719f2-103a-44a1-a1e1-6a839ee51b61","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":128,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"13add078-8d37-4159-8fc0-3d36dfbb6d40","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":129,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"0cc7181d-125c-424d-acde-e7de5d9a2885","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":129,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"1507f976-ab11-4168-a9fe-75dbc22ce45b","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":129,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"a065503c-3b51-45ee-8a5f-fed016039aee","block_type":"box","text":"and other markets in which limitations are imposed upon the amount of investment, in the aggregate or in individual","page_number":129,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"7d3438f0-53ec-41a8-99d7-14e0f320a9f6","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":129,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"57ccee2d-dcff-4788-b1c1-7cfc47085233","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":129,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"ce16167f-dcfe-4344-92be-cbd8550a6964","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":129,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"92d976f4-3f2a-4750-971e-a7867c70b5d1","block_type":"box","text":"transactions on behalf of a Fund in accordance with such analysis and models. In addition, BlackRock will not have","page_number":129,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"3cd9d40c-ea6d-4397-9399-0046c4003ac7","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":129,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"ed260be2-1414-4bbe-9308-53c5bc0353ae","block_type":"box","text":"strategies used for other accounts managed by them, for the benefit of the management of a Fund and it is not","page_number":129,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"cd066acd-1bdc-4d6f-8793-31b30888763f","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":129,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"77caf6ab-51ac-4eaf-beb4-99db39fe72c2","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":129,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"472ea3d4-2450-4b50-8411-42d77d65f3f7","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":129,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"350aedcc-d797-4721-b484-5bba2502b546","block_type":"box","text":"managing a Fund.","page_number":129,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"3ecf0ac4-b251-4509-b0bf-04f92c5e12ec","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":129,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"273cc0ef-7903-42da-a46c-5668353b8624","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":129,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"2caea4d0-c9c3-43a0-8ee1-19e53c860dee","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":129,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"d4a0d1ba-913f-4b04-9f08-751cebc6977a","block_type":"box","text":"value and liquidity of a Fund may be impacted by purchases and sales of the Fund by model-driven investment","page_number":129,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"86c0c908-e7da-4ffe-88c7-fb1b74ff6620","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":129,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"daaa09b3-4aaa-4d0d-bc9d-93e064a2db23","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":129,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"c0cabf5b-d0c2-43c0-86ae-a7c99154268e","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":129,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"f3b7e8b4-f37b-4468-b07a-9885d4dcb8b8","block_type":"box","text":"have obligations to such other business units or entities or their clients and such obligations to other business units","page_number":129,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"fe9d630d-a89f-4942-8f5e-0c0b4274ebad","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":129,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"53830fd3-6c5c-4408-bba5-86737d8b35bc","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":129,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"eeb78ff5-749d-4e1c-b2bc-199b8bd6426d","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":129,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"f7d21fe0-8c95-48fa-837f-010d6f6f0ca6","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":129,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"5419ff09-01c7-45a2-b06e-725e5fd223bd","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":129,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"d6afb46b-9b5e-4205-b649-54a8eba3fd4a","block_type":"box","text":"or terms in connection with the transactions. In addition, the purchase, holding and sale of such investments by a","page_number":129,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"e7a02a1f-e73d-4648-b0a2-9ea134b67dc1","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":129,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"53019ab3-364e-4956-829f-aca04d315c52","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":129,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"49429c74-4627-439e-851e-2be122a177c8","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":129,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"93b588ae-8248-4fb3-a410-89ff0a534338","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":129,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"a1dc7ff7-d9d9-4db5-ae37-bc3e52353071","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":129,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"c02fafcd-f2ab-4cc0-a1c2-2fb2a31b3acb","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":129,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"246a88ea-bf86-4c4a-b349-352cac8f7a4d","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":129,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"6a8bf742-758d-4445-a213-7039e856a82d","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":129,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"7df31cd4-5396-4e38-9d3b-3c5386e14abf","block_type":"box","text":"under management for BlackRock.","page_number":129,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"337601cc-7da4-4eb5-9fec-388f040bda27","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":129,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"5cd906f4-6018-4290-9280-3666e38ac49f","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":129,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"10962670-a0e1-4eaf-9fef-9797fa482cae","block_type":"box","text":"clients have interests adverse to those of the Fund. At times, these activities may cause business units or entities","page_number":129,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"29208070-47bb-4085-a0b6-56845b56d653","block_type":"box","text":"within BlackRock to give advice to clients that may cause these clients to take actions adverse to the interests of the","page_number":129,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"18e3c1a5-04e3-401c-af21-711da4ffe82e","block_type":"box","text":"Fund. To the extent such transactions are permitted, a Fund will deal with BlackRock on an arms-length basis.","page_number":129,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"14b76608-1429-4127-a49f-5fc70b7808da","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act as broker, dealer, agent, lender or adviser or in","page_number":129,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"6be63c5f-fda1-42ae-be15-c94215266306","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":129,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"56a60fe8-8df5-4069-877a-d072f05f613b","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":129,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"e36384fe-51d0-424d-ad64-2d2157ec2f50","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":129,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"db0afa29-7c33-4bdb-8e5d-6d28091cdcb7","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":129,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"8e9a2bbb-048f-4bef-a581-10c7941d636a","block_type":"box","text":"amounts that are favorable to BlackRock and such sales personnel, which may have an adverse effect on the Funds.","page_number":129,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"2a1fa33a-dc8f-464e-a37b-21462debcbe6","block_type":"box","text":"Index based funds may use an index provider that is affiliated with another service provider of the Fund or BlackRock","page_number":129,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"d97e942e-67b1-498b-8bf7-be069500a3b6","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":129,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"36d3d58f-3f29-436e-88fa-201a3cbfc64f","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":129,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"5ffef2a5-43e8-4c70-8cf0-a9c502a8505b","block_type":"box","text":"other amounts that they receive in connection with their service to the Funds as broker, dealer, agent, lender, adviser","page_number":129,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"b8ae5e5f-5bbb-4f34-af30-973899280607","block_type":"box","text":"or in other commercial capacities. No accounting to the Funds or their shareholders will be required, and no fees or","page_number":129,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"a7f24f80-f998-4914-bc19-7ad97849efc4","block_type":"box","text":"II-91","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b89c3cbc-d33d-4033-ab37-9921d03b6e0e","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":129,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"789fadda-052a-4abb-a2de-0f25e953e0a6","block_type":"box","text":"other compensation payable by the Funds or their shareholders will be reduced by reason of receipt by BlackRock of","page_number":130,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"a8700725-243e-4eba-98ee-073f70105b71","block_type":"box","text":"any such fees or other amounts.","page_number":130,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"fb84cd22-7332-4667-bb5b-4ef65c0e2d76","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":130,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"f8f623db-92a5-422f-b3a8-0c6fae2489cc","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":130,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"92180b06-a981-45c0-8e7a-cd5a93e0afa7","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":130,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"8e6124b7-3194-4a44-9a46-5451feb93ae1","block_type":"box","text":"credit standing. BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":130,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"33414cbe-24ce-486a-b9be-e88a070260ce","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":130,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"6be57a64-c272-4251-96e9-f3b3457956d0","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":130,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"60f93d9b-9d0b-424f-aeae-91b66d54d1f7","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":130,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"0fe214f1-4d10-4bf2-ab71-2b058be993ec","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":130,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"b2e85b5c-d4d5-48b2-a4b3-ddcb4ef44a5c","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":130,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"b2d24cfc-e086-42a8-8512-33f7eb792dfc","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":130,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"4e3cd3c9-37de-4484-b583-2d3841d3e6c2","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":130,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"110ccc70-3ce2-4ab3-8f80-89c23257b0c7","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":130,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"6b588025-25c4-49ac-9eaf-39ae2e8a3f90","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":130,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"52fd82f0-1a37-40d1-af54-02513c1c162e","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":130,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"f1dfa54d-8364-41ec-8917-0a6e21efdf07","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":130,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"6fcf6d71-b628-4ffd-a052-a299e8167b7f","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":130,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"7fca408b-3fd6-4998-9567-87b92242a535","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":130,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"7b99dc73-2fdd-4e76-9fc1-0cfadcf62b12","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":130,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"ffdae01e-ab47-4538-b411-a775a5170c28","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":130,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"af98b525-d475-494d-92b6-a2827e49f581","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":130,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"e241e224-e010-4494-9833-b2c0eacd594d","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":130,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"78955ebb-c141-4719-be08-c6ace22db002","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":130,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"7ff7b205-63b1-43f4-9135-8bee0d5bd326","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":130,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"98125c02-8485-4c03-81aa-52099cb7b9a7","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":130,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"15bcfd39-c29f-4154-a593-80fd77df5a52","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":130,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"05d943f6-7f50-493e-a523-043b71e254fa","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":130,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"89c075d5-63f9-4f02-943d-8edf908364a7","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":130,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"26bf18be-e2a5-4651-95cb-228ad907790f","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of a Fund or","page_number":130,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"c35b4eb2-6060-4426-acda-8ad7dd8f75af","block_type":"box","text":"terminate a securities loan on behalf of a Fund for any reason, including but not limited to regulatory requirements","page_number":130,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"8ba0c67e-0b10-44b7-8f96-6db5f949b8bc","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":130,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"75a3757b-1156-4eb6-aa7e-45b1a26d6eaa","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":130,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"614ce158-847a-4461-9faf-4f0c50656631","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":130,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"a82a32e5-3b54-49a4-908a-8704a4fe9028","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":130,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"37e962e9-0be6-428b-90de-0760f8d1627c","block_type":"box","text":"regulation.","page_number":130,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"465878c8-32d2-433c-836f-4b335933b4bb","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":130,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"57dba71a-0f38-42b1-8efd-1d6572ee91f4","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":130,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"2f43b016-bf68-4de6-a4e0-e08bc64f0ca0","block_type":"box","text":"various program limits (","page_number":130,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"b6b57f63-f4cf-44e6-bfdf-c7a9d4944996","block_type":"box","text":"i.e.","page_number":130,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"71fe7926-c40b-46f2-9f8e-1f27a6c24256","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":130,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"9ca70d66-082a-4e45-a744-1f13c92c46b7","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":130,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"80a5a082-cc2c-4f0c-be07-ae3ea5e126c5","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":130,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"ef8d66d7-9783-4f02-bfe2-81c3fab4d2b1","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":130,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"bc083f66-8602-4826-8988-9602fd4f8cbe","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":130,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"a6eb0015-c658-4eb2-b789-209b76059e99","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":130,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"aba34a65-bd60-4fe5-a12a-563c31fbc4c2","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":130,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"3dd3a901-39f1-4ae4-815f-b5ea44fb3e4a","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":130,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"bdf1c983-3dc7-4d2e-94f3-508ee7820313","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":130,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"1ba6e6e9-06f5-40b0-8979-8adbf73aa32a","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":130,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"df5dcf8b-06c3-46aa-8af8-404b67c3b49e","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":130,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"d686037b-44dd-4177-ba6e-abf90590e0a9","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":130,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"76741767-cd06-4926-ae0e-6eeb6a7bceac","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":130,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"fdbfd92c-e39e-4695-9511-b95534ec9670","block_type":"box","text":"entire volume of securities purchased or sold. When this occurs, the various prices may be averaged, and the Funds","page_number":130,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"c6e86bbd-35cd-4558-a503-f80a20ddaff6","block_type":"box","text":"will be charged or credited with the average price. Thus, the effect of the aggregation may operate on some","page_number":130,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"dfad0989-3874-4e3b-9120-281e1dbb907a","block_type":"box","text":"II-92","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1723717f-1d44-45ea-9b82-bbe42dea3083","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":130,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"47b6566d-a398-44ed-87a3-65d08a184fc4","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":131,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"e2fbffb4-1806-4ed1-af66-38f86a61552f","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":131,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"9201a67c-8848-4c56-b125-353a2d10d475","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":131,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"422c2861-1c4b-43a1-a5fc-d4f74845ce2c","block_type":"box","text":"Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to pay a broker or dealer a","page_number":131,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"8030e5ba-65ef-4b39-bd8f-6adf519a5301","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":131,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"670c72f2-0307-4320-85f9-e876b4f469df","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":131,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"dcfe37c3-99f1-46f2-a559-2a8931f746e1","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":131,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"a69d95e0-6a38-4b44-8e25-27400c306312","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":131,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"bf3d1c98-bd56-499e-ba62-2ed09000c1d8","block_type":"box","text":"than through client commissions.","page_number":131,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"63d5f7d9-ac3a-4f07-93ac-726d0a25db95","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":131,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"24a3adb2-5de3-4980-be27-f7b88d8f9d8c","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":131,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"90f7e503-98ff-44a5-be7a-5253862785ba","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":131,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"0855c44c-a150-41c4-a3da-5669fcf4be1d","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":131,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"8025afef-c439-4dcf-976f-67f37531be9a","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":131,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"c1c463d8-48b5-4639-8b65-8036cfecc3bf","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":131,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"892a8768-e30c-4731-8eb9-f5b246feb904","block_type":"box","text":"research-oriented software and other services and products.","page_number":131,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"66f6520f-d355-4808-bd8a-5d272abbbcbd","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds and other","page_number":131,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"e9ba3f90-a2da-44bd-80da-a302e41d52ee","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":131,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"8387f22f-34d7-4174-ab1c-60c073874637","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":131,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"379e4b51-89ba-47bd-97e1-6620f66d45ca","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":131,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"61e57196-cab3-474c-aa87-0806710fbcb2","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":131,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"186c3c76-5c13-4735-8037-8742bc19ca1c","block_type":"box","text":"that are paid for through one client’s commissions may not be used in managing that client’s account. In addition,","page_number":131,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"e9380208-a88c-4430-946e-bde22c1c14f5","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":131,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"70e19a63-0dc9-4047-bef0-69444119aa7b","block_type":"box","text":"or price discounts in connection with products and services that may be provided to the Funds and to such other","page_number":131,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"82f3e271-f798-4d52-a749-52acd537d67a","block_type":"box","text":"BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay for those products","page_number":131,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"6dbb2a41-b57f-46c5-80e4-95885f79e180","block_type":"box","text":"and services itself.","page_number":131,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"38be2304-b610-4230-8dd5-55d37c92068e","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":131,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"5273b20c-e8f3-4023-870d-c95185e77e8f","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":131,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"da79453c-5207-483b-9281-22637092f3fe","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":131,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"12a52d48-dadf-465b-81fc-92959f1f7474","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":131,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"a49400e5-73d1-4da4-8593-bcd44b3209e7","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":131,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"2d9f54ca-efdc-4654-a3fa-a2f670c5a3c0","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":131,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"b5069e49-bbbb-4bc2-8a87-56da342b4b1f","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":131,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"3dc77657-2a76-4502-9f37-f8b8698c7808","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":131,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"8f3d7e10-80a3-49f3-a417-5bc404c91da0","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":131,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"9420e887-6158-4c60-889b-53cd55ab9a5c","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":131,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"f0a5f71d-1d29-4fbd-962f-0205520ed01d","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":131,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"001283ef-a8d7-43b8-aeed-9610966198f7","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":131,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"fc756990-c92f-4127-b35f-92d772aa6d4d","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":131,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"9b4a7d3c-9236-41ed-81c6-b55f165cbe5a","block_type":"box","text":"the cost of the securities purchased. Access fees may be paid by BlackRock even though incurred in connection with","page_number":131,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"49d8e0c0-c554-42d5-bf81-311347e1aa90","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":131,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"89c77f43-b583-436b-ba31-fd2fedb3bfe9","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":131,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"24507e24-17f6-43f3-a5aa-a4c4c7dfd3a5","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":131,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"7edc77da-1d69-42cc-a2b6-12580e07f472","block_type":"box","text":"BlackRock owns a minority interest in, and is a member of, Members Exchange (“MEMX”), a newly created U.S.","page_number":131,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"9df97794-4c26-4fa5-830c-c7248f779045","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":131,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"519f3375-b0a4-4f7b-aa90-d1cd2b0db014","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":131,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"56a3ebf2-9ac7-4269-a2a9-0c08ba811d20","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":131,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"a811bb84-db62-47b4-884b-d3ef476942ac","block_type":"box","text":"voting decisions that it makes on behalf of advisory clients, including the Funds, and to help ensure that such","page_number":131,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"7f0b1240-0763-4b63-8c58-2d615eeca109","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":131,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"fd0a3289-1bd4-474f-848f-4c19fdc2bccb","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":131,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"c234272b-4ccd-4e22-a797-2f2b62339f83","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":131,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"f217474b-c744-45cf-94d3-be879e9418e4","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":131,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"fbeb8437-fcbb-46e7-b837-2aa5532a62f6","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":131,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"f98010c8-cf73-46c9-b044-60b266b34bec","block_type":"box","text":"II-93","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2bd627f0-4b28-4d16-8569-9fe873e20e13","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":131,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a1a75e4c-7fe5-4299-8b89-a73697fe4d6c","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds and","page_number":132,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"04ce9e62-22c8-4ad8-bb92-4b43791e7275","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":132,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"162d949d-28b3-43bf-bb8b-a7339c355e6e","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":132,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"7589cffb-1b6b-4551-a816-463f8960390f","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":132,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"4ee374a3-1f47-47b7-817d-3e7ec4eb73b6","block_type":"box","text":"applicable law, to redeem at any time some or all of the shares of a Fund acquired for its own accounts. A large","page_number":132,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"71b8f6ac-2639-4e03-bffd-16b9c159001f","block_type":"box","text":"redemption of shares of a Fund by BlackRock could significantly reduce the asset size of the Fund, which might have","page_number":132,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"1278a8c4-7f60-4f6a-aa5f-61312d7d4f42","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":132,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"4b765252-6112-4160-a5f9-23e56f0f445b","block_type":"box","text":"consider the effect of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is","page_number":132,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"f7d79072-d0d3-40bd-a26a-c5470f48bbe5","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":132,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"52a19e1d-5aeb-4d1e-b83b-f870b9f4321f","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in which","page_number":132,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"6aa52d1a-c456-41d1-b8cf-53caa732f651","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. A Fund may also invest in issuances (such as","page_number":132,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"0a8c760d-d18f-4a43-9d25-a8f55033596b","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":132,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"4569cca1-5c34-409b-b11d-3a7a2781b02d","block_type":"box","text":"relating to the proceeds from the sale of such issuances. In making investment decisions for a Fund, BlackRock is","page_number":132,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"25939281-5816-490f-b793-4cacd9738fdd","block_type":"box","text":"not permitted to obtain or use material non-public information acquired by any unit of BlackRock, in the course of","page_number":132,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"8cb5e6a4-4765-4335-a898-0de987a913db","block_type":"box","text":"these activities. In addition, from time to time, the activities of BlackRock may limit a Fund’s flexibility in purchases","page_number":132,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"2187be26-e1ec-4582-8b62-0bec894a98a0","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":132,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"db970a0e-7bd4-42f5-9189-2527b2bfb7dc","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":132,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"a3125d7d-4ddd-4853-bf06-fe35f63fe2c4","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":132,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"96dfd270-c213-4e94-9252-de61288a427d","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":132,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"b9054183-3f0a-4124-8f6a-6b459d15f91f","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":132,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"8cf4c96c-4aea-4308-a893-abf081bd49bb","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":132,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"e3f49195-a56e-44e5-a4d1-bf99bcbbeaed","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":132,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"89e9f925-5d4d-4822-a438-b02a188434ae","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":132,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"8ce2b300-b105-4235-8aec-a9c088c54931","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":132,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"11a8f466-1f52-4de6-b0d5-71c255062b2d","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":132,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"99bf2260-db66-476f-bea3-c8d67b16d2f6","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":132,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"bf7083f0-58d0-4362-a7a4-856de8838014","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":132,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"9a5a1e9f-9e83-450a-b7ad-0ea0143555cd","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":132,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"a80f5a14-62e8-49ad-bbaa-0a14a9b79cde","block_type":"box","text":"the same securities or investments assigned by a Fund’s pricing vendors, especially if such valuations are based on","page_number":132,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"9ad16100-ef80-415e-a16d-c2f18a596241","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":132,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"4a8d8665-8bdf-444e-9be1-873fb29000c3","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":132,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"6641b6b9-45c8-47d6-8ea7-c2969a296759","block_type":"box","text":"may be instances where the Fund’s pricing vendors or fund accountants assign a different valuation to a security or","page_number":132,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"8b6aa048-acea-4e0b-b7b0-8195c3374fcc","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":132,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"f8d865af-dea8-4d20-9f26-478f2f6a0703","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when market","page_number":132,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"d6686f5c-bb19-4ec8-aa1a-0c137216b109","block_type":"box","text":"quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s investments are valued at","page_number":132,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"d24adf96-9aa8-4f29-a690-57a09774e64a","block_type":"box","text":"fair value by BlackRock. BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":132,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"3e2dff04-91f9-4905-bad5-84cc1ea104d9","block_type":"box","text":"under the Investment Company Act and acts through BlackRock’s Rule 2a-5 Committee (the “2a-5 Committee”), with","page_number":132,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"95a4beac-c534-4296-ad96-1ef889d90f0d","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":132,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"ac280863-c8c5-4308-874b-b3f04dc3deec","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":132,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"013ffdd2-ca73-44f2-be10-7a0e8af94e9b","block_type":"box","text":"price that a Fund might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length","page_number":132,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"728116c3-22b9-4377-9fa3-69031f278e62","block_type":"box","text":"transaction. The price generally may not be determined based on what a Fund might reasonably expect to receive for","page_number":132,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"86c2c995-1d3b-48ea-8047-d5b384397754","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. While fair value determinations","page_number":132,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"9f64a4d5-9d3d-453a-b7a9-49e7735da032","block_type":"box","text":"will be based upon all available factors that BlackRock deems relevant at the time of the determination, and may be","page_number":132,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"cce06490-0be1-4d5c-bf96-185394e2fe80","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":132,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"c8fc5f52-286b-49a3-bdb0-55d56f60b1fb","block_type":"box","text":"represents only a good faith approximation of the value of an asset or liability. The fair value of one or more assets or","page_number":132,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"8009364f-441b-420b-9c62-6dd59dd1e017","block_type":"box","text":"liabilities may not, in retrospect, be the price at which those assets or liabilities could have been sold during the","page_number":132,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"195ed997-8057-48a3-b88e-c08bf501046b","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. 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As a result of","page_number":133,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"94744e8e-36c9-41c4-ae5e-35fecf036936","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":133,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"430f46b6-333c-468a-aa22-bb124f33d65b","block_type":"box","text":"employees of BlackRock that are the same, different from or made at different times than positions taken for the","page_number":133,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"93573dc5-31e6-457c-97ff-0a597b99346c","block_type":"box","text":"Fund. To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":133,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"6346ebc2-cc73-4a08-a33b-8ceccb2996ad","block_type":"box","text":"BlackRock each have adopted a Code of Ethics in compliance with Section 17(j) of the Investment Company Act that","page_number":133,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"b3797737-92e1-4a48-bdd4-8adb619c2d24","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":133,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"0be8fdfb-1ca7-4e3c-b1e6-6cd90c2144c7","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":133,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"6b4d05e5-897a-4897-b23f-e65a3c2fe04d","block_type":"box","text":"EDGAR Database on the Commission’s Internet site at http://www.sec.gov, and copies may be obtained, after paying","page_number":133,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"adff254a-3ba1-4726-b762-f08b56c1fc00","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":133,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"c682782f-f492-4915-a0aa-49bd972c923e","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":133,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"106f9739-bc07-4683-afb0-12c767f8533a","block_type":"box","text":"except that the Fund may in accordance with rules or guidance adopted under the Investment Company Act engage in","page_number":133,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"3b452d47-4484-45be-9566-5ea77c680bf5","block_type":"box","text":"transactions with another Fund or accounts that are affiliated with the Fund as a result of common officers, directors,","page_number":133,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"a94e27a6-61ba-4a30-af65-825b98fb15f2","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":133,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"55f2f716-eacb-4329-a398-058f1b108fdf","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":133,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"a1543b52-7e17-4988-913d-9ab6cd36b4ff","block_type":"box","text":"for the Fund to purchase and another client of BlackRock to sell, or the Fund to sell and another client of BlackRock","page_number":133,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"debb21e1-4612-4e91-8149-af99c66df64a","block_type":"box","text":"to purchase, the same security or instrument on the same day. From time to time, the activities of a Fund may be","page_number":133,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"bda2367f-dd4a-4fab-a63f-b6626995f478","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":133,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"db9dddbb-1169-42a8-b1cf-0356e50e70bb","block_type":"box","text":"to comply with, limit the applicability of, or that otherwise relate to such requirements. A client not advised by","page_number":133,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"d621b899-3d82-4826-8885-808288ccb15b","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":133,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"4da28d06-9ed0-49e6-8bb8-de974c4767f3","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":133,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"272e3817-dfd9-4807-a0f6-d756da1e66a4","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":133,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"170cf6bc-7a06-4ed5-b789-dc8747a390df","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":133,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"027e637b-3cfb-4eaf-833c-7157b535bf2e","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":133,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"0f85dc55-5b71-46da-8e36-0f9a10eb5388","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":133,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"63386979-c15f-4f49-aa1d-afda612b1839","block_type":"box","text":"public information about the company (","page_number":133,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"de64efbc-f274-430c-b40e-109d6509a816","block_type":"box","text":"e.g.","page_number":133,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"876b86cb-cf22-4952-a22e-ff728e2bf133","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":133,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"9445af58-6dc2-4265-9e42-124a4e7eedf5","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":133,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"d5fb33f9-df50-424d-9cc1-74db78867ed0","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":133,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"524b5440-abe2-433e-b00e-9dfda13c22de","block_type":"box","text":"of a Fund, including where BlackRock and/or clients advised by BlackRock already have an interest in such issuer or","page_number":133,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"c53e0d42-04d6-40e3-925c-f177e9029018","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":133,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"d48a4753-4b47-4ad1-957a-39ea75df3866","block_type":"box","text":"securities of which the Funds wish to purchase or sell. However, if permitted by applicable law, and where consistent","page_number":133,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"6efc3c99-86cd-477a-9629-3620b8c4b1ff","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":133,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"88e59a7c-cbfc-4a19-9e71-11df08163659","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":133,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"85a951c5-9610-44fa-bc35-6fba1c8e03b9","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":133,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"d106276a-6ed0-444c-aab6-081e6e32d51a","block_type":"box","text":"of the issuer.","page_number":133,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"b4bbbb11-6b13-4585-b4af-489d318344d7","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":133,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"987f1a2a-adff-4a0c-9936-f2ed8f78855b","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Cer tain","page_number":133,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"8d9acb03-4987-465c-89cb-6ada0d54f019","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":133,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"0b303107-6a4e-4ccc-add4-189aeac56e96","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":133,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"ace97e15-76af-45b0-bca5-e6746ee5f846","block_type":"box","text":"make decisions or take (or refrain from taking) actions with respect to clients they advise in a manner different than","page_number":133,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"a5a002d5-710a-4d23-8b84-5bad69b792d9","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. The","page_number":133,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"a63d4389-17cc-4cf3-934e-a59adb8b3a8a","block_type":"box","text":"various por tfolio management teams may not share information with each other, including as a result of cer tain","page_number":133,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"73102a4f-7760-4a27-8510-e6d3cea8f637","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":133,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"6342c62a-00b2-421a-b2c2-c0eff681cfc0","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":133,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"7659d503-ce4d-4270-bfca-55658772e0d9","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":133,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"f7157751-72c8-489b-babe-211138fac149","block_type":"box","text":"por tfolios and voting proxies with respect to cer tain index equity por tfolios versus those responsible for managing","page_number":133,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"04af4f4e-2d56-4012-85ab-1b31e04f80c8","block_type":"box","text":"por tfolios and voting proxies with respect to all other por tfolios. As a result of information barriers, cer tain units of","page_number":133,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"961bd1d9-5ebc-4b3e-bfed-17b6abc7c457","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":133,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"147f75c5-62bf-434e-966b-5a8e1eb7dda1","block_type":"box","text":"senior personnel, in other units of BlackRock, and generally will not manage the Funds with the benefit of information","page_number":133,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"40bf9504-3fce-4c19-ba12-7131ceae45e7","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":133,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"a7ed902a-dd8b-410e-8d82-f184e3d4783e","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":133,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"2bcf37e3-cf1e-495c-9a17-6226de9c3e7e","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":133,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"69c806f1-cb55-4c7a-a2ca-cfda10dd8e53","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":133,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"008cc6db-3cbe-47cf-953d-32d467ab8629","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":133,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"c9eb5dbe-fd36-4706-9847-87add2715ac7","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":133,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"3c23e966-ef6c-4d8e-b022-8d018a0ff349","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":133,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"404e829a-792b-4caf-845d-22056e06b5b5","block_type":"box","text":"II-95","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6cefed84-0ee2-4208-9a3b-a5c0f58955dc","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":133,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"40468b71-c271-4430-97dd-a4ea34437258","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":134,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"5f4619d7-9463-4771-a715-dd5dc151763b","block_type":"box","text":"purchased or sold for a client in the absence of a change to an information barrier). Information barriers may not","page_number":134,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"eafd2000-eca2-4885-a29f-5a9107832620","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":134,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"000030cd-5d91-441b-8177-8e015ed3e1b5","block_type":"box","text":"and actions by personnel on one side of a barrier may impact the potential actions of personnel on the other side of","page_number":134,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"459bf637-2c98-4abd-ba09-7af1998af3fa","block_type":"box","text":"a barrier.","page_number":134,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"dd8b6303-ac7f-461d-b308-8fb325ab9673","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":134,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"4f105a49-5d21-4372-805b-ff0366a75499","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":134,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"938af8ac-e12c-4f9d-b6ae-e8174f9e721e","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":134,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"48b76f59-6af4-40db-ab35-28e1c91be12a","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":134,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"cd6a80c6-8e15-4208-9913-5e09953cd5c5","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":134,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"486e720d-c12b-40b8-a629-27f4831006b3","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":134,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"bb565bc0-bf66-4009-b12d-8c8e4bf1807e","block_type":"box","text":"that operate in cer tain industries (","page_number":134,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"cd850686-9703-4040-bf77-32a9a4ea4069","block_type":"box","text":"e.g.","page_number":134,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"1ab31ff9-e17e-4443-8911-c505b675a519","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":134,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"ba4b7b51-f083-4ac5-a749-66eed8e72697","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":134,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"45b6e8af-a487-43e8-a1cc-87353d90b548","block_type":"box","text":"e.g.","page_number":134,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"88fb0f36-d64a-4980-9070-d52ed7a3c6e1","block_type":"box","text":", with mechanisms such as poison pills","page_number":134,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"83e94e8c-7954-4e40-a732-85965aa0917f","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":134,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"be039b81-cb4b-4d3e-9c0b-619a3d8f72cc","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":134,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"7da09e04-93e5-42de-b97e-7af4aae25921","block_type":"box","text":"not be exceeded without the grant of a license or other regulatory or corporate approval, order, consent, relief, waiver","page_number":134,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"eeb56fef-7495-4211-8cde-35ead2085889","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":134,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"da815268-7ae3-4f90-b172-69e451e1c7aa","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":134,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"9896d4d4-050b-46cd-bfcd-ae5eae86ae65","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":134,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"648722c2-424a-4b98-98bb-de970a6ee0a0","block_type":"box","text":"seek to make indirect investments (","page_number":134,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"de29c677-1986-4e2e-8441-9729104a3b13","block_type":"box","text":"e.g.","page_number":134,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"63b6fb95-fa74-488f-b3f3-9b5d1ae494bc","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":134,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"6500879b-76e1-4a9f-872c-bfe4728c1706","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":134,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"c717ca3d-f99c-483a-8054-da02d8dcd601","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":134,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"5cc7945b-e446-4006-9b28-fccb1826aafc","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":134,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"7ef9b34f-5cde-44d5-81a2-92971219f7c4","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":134,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"29ec8815-8365-45e1-a751-3fede64a0ac5","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":134,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"113241e4-a10a-45a8-b6c0-e6f1b4a7bc83","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":134,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"88444c52-0e52-4255-8940-600d6fcce677","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":134,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"bb9c63f7-db58-417a-9b13-3aad235361a8","block_type":"box","text":"client or as a result of corporate actions by the issuer, the ability of BlackRock on behalf of clients to purchase or","page_number":134,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"7abab67b-bf28-413e-a62e-936ad32dd9ce","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":134,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"82e76f51-23e8-4b7b-9800-e93e938a3d82","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":134,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"4206986f-18a2-452f-9c6b-463761859a20","block_type":"box","text":"an ownership limitation or restriction, a client may be unable to purchase or directly hold a security the client would","page_number":134,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"e00dbafb-6cf6-4fa1-a06a-6519b5402bde","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":134,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"f33e6f7b-23dc-4939-ab9a-16f7e2ac4bf6","block_type":"box","text":"instead of the specific client being restricted. For index funds, this means a fund may not be able to track its index as","page_number":134,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"dd40009d-1536-4aea-b0d4-d2b2f6b7e653","block_type":"box","text":"closely as it would if it was not subject to an ownership limitation or restriction because the fund cannot acquire the","page_number":134,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"4559b280-6311-4924-a9dd-b37cea210940","block_type":"box","text":"amount of the impacted security included in its index. BlackRock on behalf of its clients may limit purchases, sell","page_number":134,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"5f103707-c93e-4e93-83a8-8ab7fda3b1ce","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":134,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"305f98df-2b66-484b-8275-9b13c810f5a5","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":134,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"5d46b0f2-1c3d-48bb-864e-b61b2ae37106","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":134,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"3296b2fc-a2e3-4ecc-86a9-e386ee0ae850","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":134,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"4b20a1a8-b49f-4a9f-933b-3ae2607d7259","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":134,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"c1fbb6aa-7329-47b9-8c97-8798c47a6446","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":134,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"5acde466-8f4c-4e52-a4ee-49f097cb762e","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":134,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"0527251c-770d-4dee-b141-c7c8257dbfc1","block_type":"box","text":"permission will be granted, or that, once granted, it will not be modified or revoked at a later date with minimal or no","page_number":134,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"0b7b90bc-d890-4a98-8054-6cf9d144251a","block_type":"box","text":"notice. The issuer and/or regulator may also require that BlackRock on behalf of itself and its clients take or refrain","page_number":134,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"abdf53d8-6510-4ae7-9cc2-8f3257546c75","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":134,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"850f9cc9-35f7-494f-8f45-32b93f5f526c","block_type":"box","text":"may accept if it believes the benefits outweigh the costs and may limit BlackRock from taking actions that it","page_number":134,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"d89b5091-ffb7-42f2-80ca-94591c850290","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":134,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"3227e8cf-0f29-464f-b647-d378bf6c8ee1","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":134,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"fd665c7a-3684-44dc-a8cf-ea6e255b8288","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":134,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"ffb3dcf1-36ad-44f2-a1ff-796648360f5f","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":134,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"59d46f19-abb8-4428-983c-9a3f5b4526d2","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":134,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"58348017-cf5c-45b2-97c1-48363e48bf5a","block_type":"box","text":"respect to ETFs, remove such securities from the list of Deposit Securities to be delivered to the Fund in connection","page_number":134,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"0a6e0104-1092-46e7-883c-e94636be150d","block_type":"box","text":"with purchases of Creation Units of such Fund. If client holdings of an issuer exceed an applicable threshold and","page_number":134,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"d436a341-1a7b-4945-beb6-e39a40d64022","block_type":"box","text":"BlackRock is unable to obtain relief to enable the continued holding of such investments, it may be necessary to","page_number":134,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"f0605bd8-9893-44fa-afd5-390743893868","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":134,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"79d045e8-194f-4ee0-be48-9a92363a262e","block_type":"box","text":"actions. In these cases, the investments will be sold in a manner that BlackRock deems fair and equitable over time.","page_number":134,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"065da49e-ab3f-4dbe-956b-6e92a8cdc04c","block_type":"box","text":"II-96","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a3ea6565-2ccb-48c6-94af-89a07b51340b","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":134,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"bbc7d757-6fb6-4b86-bb07-b73877dcca8f","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":135,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"7970e6a1-d8b6-4fd1-bcfd-476855868da2","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":135,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"271f26b8-6067-419f-a518-38f9ed1dcafc","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":135,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"37bfeb65-80ff-4a20-a518-bbe57c1a7240","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":135,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"e05c0039-b8c7-4af9-be52-d20085f05f9a","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":135,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"7346ef27-e01f-4db2-bc15-7c03b9123de5","block_type":"box","text":"strategy with respect to such security or asset.","page_number":135,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"f61eb1a9-c5ea-4fc0-9aec-8a931c2d9ccd","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":135,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"63d2c7c1-f1f8-4498-bcf6-25113d01e9d2","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":135,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"9a503dbd-b25f-441a-9597-4df94facc0bb","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":135,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"65b5e249-5dbb-4fcd-8acd-75633d62d4bc","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":135,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"32356dd2-d93b-4028-9073-d03929c436b4","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":135,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"1ded35dc-17f8-4c71-a664-9c8987456a55","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":135,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"891d045a-7925-4af7-b52b-80de383ebb3d","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":135,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"0137cab6-511c-4ba8-840d-c9ecb468e5aa","block_type":"box","text":"indices. BlackRock is not obligated to license its indices to a Fund and the Funds are under no obligation to use","page_number":135,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"04004e0d-fa89-4b24-90c1-7d73ce90b0de","block_type":"box","text":"BlackRock indices. Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":135,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"dfed66f4-66aa-4d52-9d6a-32dad55bb669","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":135,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"1fb7b936-72c5-44df-b21d-0a42090c9ee4","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":135,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"fc30572a-694a-4301-b2ff-1982e5488ed5","block_type":"box","text":"e.g.","page_number":135,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"2fb651e1-fb4a-4965-a0c9-f33de280705c","block_type":"box","text":", custodians,","page_number":135,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"37c797d0-85e4-4992-8b1d-6664253bc495","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":135,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"63a9dbe3-ce0b-4000-b9d5-d92807cd398e","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":135,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"84846572-c3d0-493f-a1c7-126980ec569c","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":135,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"06b12775-6117-4b67-a46e-a19324641376","block_type":"box","text":"provider’s services are terminated with respect to a Fund. To the extent that BlackRock is responsible for paying","page_number":135,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"9d27a1e2-62fd-4f9a-9f77-aaa4039a06c1","block_type":"box","text":"service providers out of its fees that it receives from the Funds, the benefits of lower fees, including any fee","page_number":135,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"ec8f02b9-5e21-462d-9dd3-94a166df8c84","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":135,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"2362a69d-4cff-4ea0-b730-cdc50e5a2e68","block_type":"box","text":"in conflicts of interest relating to the use or termination of service providers to a Fund. In addition, conflicts of","page_number":135,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"d78661ad-e80f-49d2-b1b1-a5f25fff4b98","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":135,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"1f37cd3d-e3a2-49ff-a98d-229eb187cf00","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":135,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"19bd5b4e-cf12-43e1-80de-69046854e36b","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":135,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"ec4ad5aa-80ad-4e41-84c7-b97da31074cc","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":135,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"83102836-a183-49c0-b13c-55c076eb2091","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":135,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"e5e54ae3-2adf-4958-ad2d-a20c6b9e07f0","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":135,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"c7ff1ffc-60bf-44f8-a9e9-b6a0a1a4a44e","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":135,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"40d3dc61-e813-4466-b73f-144be7a6975d","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":135,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"731695d8-3468-4296-a761-bece5ba428c6","block_type":"box","text":"information systems used by Fund service providers. These systems are, or will be, used by a Fund service provider","page_number":135,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"859b65b8-f6f0-45dd-9ea0-dbb6367e441c","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":135,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"a06126bd-7fc5-44a5-a81e-19b4917dd688","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":135,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"d48e7729-27a8-401e-9b73-d160d8a60893","block_type":"box","text":"provider remunerates BlackRock for the use of the systems. A Fund service provider’s payments to BlackRock for the","page_number":135,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"e8d285fb-a358-4962-b5a4-1ebefdfb5cba","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":135,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"93763cef-4999-4acc-bd37-e8b8aaef9794","block_type":"box","text":"BlackRock’s receipt of fees from a service provider in connection with the use of systems provided by BlackRock","page_number":135,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"f42e3ebb-3781-42a2-8552-5d851cefe317","block_type":"box","text":"may create an incentive for BlackRock to recommend that a Fund enter into or renew an arrangement with the service","page_number":135,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"a4b4c72c-5b7e-43fa-85e6-20046409ae7a","block_type":"box","text":"provider.","page_number":135,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"3845b5a1-b34d-4889-a2a5-74c643debab5","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":135,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"6aa200e7-f469-4d15-8704-1ffce25608bd","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":135,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"27496f02-a815-439b-934d-fc33da679303","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":135,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"0aa883a6-71ae-4fcd-a582-7d7c96280146","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":135,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"222cd066-3b10-42f2-a3b3-43145a8d1a9b","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":135,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"10fb937c-6d41-44a7-a3ca-6b7ffa38947f","block_type":"box","text":"PURCHASE OF SHARES","page_number":135,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"0c840424-63cd-4c46-827a-bdb88d208f9c","block_type":"box","text":"Most BlackRock-advised open-end funds offer multiple classes of shares under a plan adopted under Rule 18f-3","page_number":135,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"58d0cf23-b60a-4f92-bdb1-9291e113e8b6","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":135,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"13932a57-cf4c-4ac7-bef4-5c8f4094d75e","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":135,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"15a29b3a-e547-45a3-9061-36f3d7f29783","block_type":"box","text":"generally not subject to an initial sales charge, and Investor C Shares are sold to investors choosing the deferred","page_number":135,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"a011d225-f1a9-4235-afa4-7a8500bff32c","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":135,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"50ed0d53-f024-4a57-92c0-880e0753f65e","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":135,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"0efc79ee-3b07-4a52-b51a-71a067f59147","block_type":"box","text":"II-97","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"46d2309c-6277-405a-bada-8a57dc9a0c59","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":135,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"94e4639d-c9ba-4581-8c82-b71a9eaaf047","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":136,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"64f8050b-df42-4b56-abbc-3e7aa91d762c","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":136,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"ef8eda3d-82a9-40cc-a9d4-381d8b3fbcb0","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":136,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"d76f61a6-1757-4817-ae14-346305b03e07","block_type":"box","text":"platforms, which are platforms where clients invest in the Fund through a single omnibus account in the name of a","page_number":136,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"895ba0bb-316b-4d79-849a-038049349924","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":136,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"39ddab51-3d8b-4dbb-a74d-56d44a110219","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":136,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"eca7de7d-db3d-4141-a572-343c4083329d","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":136,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"21bfda21-bc45-4402-9ff3-768f5a8c4210","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":136,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"782361b6-a94b-45a8-8219-4ee18ece2b99","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after receipt of","page_number":136,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"a26b8e51-f199-4e2a-97e2-9a3a34a2d0c6","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":136,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"946d74a7-5ba7-4125-9107-3d3230e1374e","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":136,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"cc8da361-e782-4fc9-98e4-e1bba59a081d","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":136,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"12250a15-d68e-4ddd-9428-a9f31cf8d6ed","block_type":"box","text":"offering price of each affiliated underlying fund is based on the NAV of such affiliated underlying fund next determined","page_number":136,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"41625833-3fda-4e7b-9283-f23053e45886","block_type":"box","text":"after a purchase order is received, or deemed to be received upon receipt by a Selling Dealer, by the BlackRock","page_number":136,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"158c9eb9-c5cd-41be-b3b2-7cbd75bc2ad0","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":136,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"0cb182a9-a46f-46a4-bb19-dcfca8ddf7b1","block_type":"box","text":"orders received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New York","page_number":136,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"35208b15-ee75-4033-ab50-54fd5e098642","block_type":"box","text":"Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed,","page_number":136,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"c2079a78-94be-45fd-a517-07d1d61911da","block_type":"box","text":"including orders received after the close of business on the previous day, the applicable offering price is based on","page_number":136,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"101c363a-b155-4f83-b9bf-d05c500186ad","block_type":"box","text":"the NAV determined as of the close of business on the NYSE on that day. If the purchase orders are not received by","page_number":136,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"dee52fd3-debc-4dd2-b4fb-0baa7d8757f5","block_type":"box","text":"the Selling Dealer or a BlackRock Target Date Fund before the close of business on the NYSE, such orders are","page_number":136,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"7e6ee849-34d3-4b1b-ae09-78694e02223a","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":136,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"33360913-1df3-40dd-8461-c96827fa902f","block_type":"box","text":"payment on a timely basis. Generally, if payment is not received within the period described in the Prospectuses, the","page_number":136,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"54272684-51d8-49bc-bf44-b842670fa56d","block_type":"box","text":"order will be canceled, notice thereof will be given, and the broker and its customers will be responsible for any loss","page_number":136,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"e28172f7-6737-46f1-89fb-17b1508c1a5f","block_type":"box","text":"to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the Transfer Agent.","page_number":136,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"82326a96-3987-4930-a548-3d980232d198","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":136,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"56c99852-6856-4c4e-8df7-7caf121990b8","block_type":"box","text":"minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or employees of their","page_number":136,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"e8d3e20d-f28d-4ac9-a651-142fd76ef340","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":136,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"ffcd4cc1-141a-4ca1-a538-0ffc955b829a","block_type":"box","text":"investment is $25.","page_number":136,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"2e17e4c2-389e-442a-b8ab-592391e387ac","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":136,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"484c3399-9899-4745-a5e6-2f9fdac3718e","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":136,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"11af202b-405a-4cc7-bbd1-63029bd7484f","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":136,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"74ba43a1-073b-4f71-97a9-dccdf60c6a40","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":136,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"b81bca0a-ee18-47fd-addc-bd4bf305b09e","block_type":"box","text":"subsequent investment requirements and suspend and resume the sale of any share class of any Fund at any time.","page_number":136,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"f3fb3712-cf4c-40e8-b567-dea46b7d9bc4","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":136,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"bfce6ede-e5bc-4f21-bce3-7df7595a5d12","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":136,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"9056c682-41ce-46e5-84f9-a1bca19b4d30","block_type":"box","text":"class of shares of the same Fund, provided that the exchanged shares are not subject to a contingent deferred sales","page_number":136,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"06bf70ff-4e57-45b9-bcd9-ef6aa1616356","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":136,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"1c3c100f-b156-4499-8ad8-e713ef48a7c3","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":136,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"5a74b60d-5485-45c2-ac9f-cfe8c0be0512","block_type":"box","text":"Each Fund or the Distributor may suspend the continuous offering of the Fund’s shares of any class at any time","page_number":136,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"46ac25b5-de16-4cb9-9bbe-2db646962470","block_type":"box","text":"in response to conditions in the securities markets or otherwise and may resume offering the shares from time to","page_number":136,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"9b52abfe-e63b-4461-8f57-454e78ca2c98","block_type":"box","text":"time. Any order may be rejected by a Fund or the Distributor. Neither the Distributor, the securities dealers nor other","page_number":136,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"fce9d6b4-8a6f-41ea-ab24-8c0056e12e48","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":136,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"acf8c823-1f34-4875-a9e3-b7c3619f847e","block_type":"box","text":"The term “purchase,” as used in the Prospectus and this SAI, refers to (i) a single purchase by an individual,","page_number":136,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"32b0ec7d-6984-42aa-a03f-7a1f3768dfce","block_type":"box","text":"(ii) concurrent purchases by an individual, his or her spouse and their children purchasing shares for his, her or their","page_number":136,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"a357feb2-4e79-4303-8f63-142e72e5d201","block_type":"box","text":"own account, and (iii) single purchases by a trustee or other fiduciary purchasing shares for a single trust estate or","page_number":136,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"6d7c42c2-82c2-401b-acba-685fde731e19","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":136,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"2c680e4c-df95-4948-a25d-3760286b1bef","block_type":"box","text":"purchases by any “company,” as that term is defined in the Investment Company Act, but does not include purchases","page_number":136,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"890436c1-6407-45e4-91df-f078e0c470c4","block_type":"box","text":"by (i) any company that has not been in existence for at least six months, (ii) a company that has no purpose other","page_number":136,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"1b3017d3-ce69-4ba4-b36e-80f2fb23a2fe","block_type":"box","text":"than the purchase of shares of a Fund or shares of other registered investment companies at a discount, or (iii) any","page_number":136,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"1071c5bb-adb9-40f7-adb7-92fa97e7409e","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":136,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"a1c951eb-d526-41b6-a6c6-e36f2cc53eb7","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":136,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"33bf78c0-0804-4600-8a64-4d6f5682c5f4","block_type":"box","text":"adviser.","page_number":136,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"14bb6808-954b-4766-a328-0433d5819871","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":136,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"454bde67-01ab-488c-a396-30d085e2d811","block_type":"box","text":"and may not be distributed by a foreign financial intermediary. Under this policy, in order to accept new accounts or","page_number":136,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"4b933ca7-e177-4860-b2b4-7596e60514fa","block_type":"box","text":"II-98","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fd5455a2-a5f1-4e0e-9b3f-78165641a950","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":136,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6a82b6ea-4632-475e-a3df-b5fd00abaead","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":137,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"ac376aa4-690f-4844-b750-a64c1d466fdf","block_type":"box","text":"requires that (i) a shareholder that is a natural person be a U.S. citizen or resident alien, in each case residing within","page_number":137,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"d1ec3449-5aa6-4c3b-88cc-f458f029916d","block_type":"box","text":"the United States or a U.S. territory (including APO/FPO/DPO addresses), and have a valid U.S. taxpayer","page_number":137,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"f374656e-2da9-44a5-a4dc-5da0e162c8e5","block_type":"box","text":"identification number, and (ii) a financial intermediary or a shareholder that is an entity be domiciled in the United","page_number":137,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"183405c9-816e-4b62-9d12-23b2c0cfe269","block_type":"box","text":"States and have a valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":137,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"4dc34bbc-80e6-4c42-ac3b-35c5464f302d","block_type":"box","text":"taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a non-U.S. address will","page_number":137,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"6f61822c-a120-4a0a-a972-0df24e17f6ed","block_type":"box","text":"also be restricted from making additional investments.","page_number":137,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"47b171af-79aa-496b-840a-ebb40b3ee0e3","block_type":"box","text":"In-Kind Purchases","page_number":137,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"e2a1faa0-3bfb-44a1-9f68-46655a1fd517","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":137,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"3fe80c30-57d6-433b-9e55-12c97d63f7c7","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":137,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"1bb12bf1-6c8f-45a9-bd6f-e0c442a1937d","block_type":"box","text":"limitations of the Fund as described herein. In connection with an in-kind securities payment, the Fund may require,","page_number":137,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"1cb35987-f2fe-4082-99dd-5c1088cdf02d","block_type":"box","text":"among other things, that the securities: (i) be valued on the day of purchase in accordance with the pricing methods","page_number":137,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"cdd54623-4e2b-454e-bd5f-64597b9e3469","block_type":"box","text":"used by the Fund; (ii) be accompanied by satisfactory assurance that the Fund will have good and marketable title to","page_number":137,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"4a97c125-be00-467b-b0a9-ce4794860b0d","block_type":"box","text":"such securities; (iii) not be subject to any restrictions upon resale by the Fund; (iv) be in proper form for transfer to","page_number":137,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"5affb237-f605-456b-933d-455ab980be5b","block_type":"box","text":"the Fund; and (v) be accompanied by adequate information concerning the basis and other tax matters relating to the","page_number":137,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"e5dcaedb-95ba-4907-becc-dcdeed7e9ca1","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":137,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"20b97596-9ee1-4f80-8293-0742bc7a0cf4","block_type":"box","text":"of the Fund engaged in the in-kind purchase transaction and must be delivered to the Fund by the investor upon","page_number":137,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"f9c3fbc2-d2a0-4cce-983a-2ba138847acb","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":137,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"d0c570cf-7493-48c1-9341-fb2c3aba58e2","block_type":"box","text":"has settled.","page_number":137,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"ca444a7e-465f-4f56-9417-e9bbbdf30d34","block_type":"box","text":"Institutional Shares","page_number":137,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"0f9dbe3c-a03f-4c6a-a25e-72c079982495","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":137,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"8817e44f-dea1-45ee-9c9e-8c8ef92dc3e7","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":137,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"fe0338d9-e44b-4914-9cf0-abf8315e4a4e","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":137,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"0281ff51-028c-48b4-934b-d8464b4a532c","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A Fund may in its discretion waive or modify","page_number":137,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"8ee759c3-eb86-4722-86e1-edbaa960d78f","block_type":"box","text":"any minimum investment amount, may reject any order for any class of shares and may suspend and resume the","page_number":137,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"c5f0a39e-6352-42fe-a569-de0ca5ddf8b4","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":137,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"6f1a5310-7e7e-4460-9be1-6bc48c2123a6","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":137,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"772cb994-7501-4201-974f-fa74198f82d8","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":137,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"12827bd3-e62a-4bb8-a7a5-29c4d78a6885","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":137,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"e605d218-3c41-46fb-8a26-b9bceba7c312","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":137,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"05cbf814-6953-42fd-9b34-020953a7944d","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":137,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"8f613ba5-c81d-43ff-b1e0-8be2e6ab2419","block_type":"box","text":"redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its customers a schedule of","page_number":137,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"b1a16d89-4e70-407a-bcc8-d1da4702ad03","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":137,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"76dd3829-d99f-4478-9b92-a2168c649e7e","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":137,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"7c20b733-a172-461a-87fd-3788ae0b0f87","block_type":"box","text":"these fees and conditions.","page_number":137,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"cef53d72-7a4e-40ce-b844-1b39664fc4a4","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":137,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"0f4bc135-b2e2-4545-b835-8d97ea0be83d","block_type":"box","text":"4 p.m. (Eastern time) on the first business day following receipt of the order. Payment may also, in the discretion of","page_number":137,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"0011fad4-898e-4ed6-8c8b-3d0e29a18b59","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":137,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"c97c0ff1-6c2e-4aa1-8168-2542d489f328","block_type":"box","text":"purchase order is not received by the prescribed time, an investor may be liable for any resulting losses or expenses","page_number":137,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"eca779d4-85c2-4b12-9dd7-ece1b742874d","block_type":"box","text":"incurred by the Fund.","page_number":137,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"7c1312ae-9b2f-4670-8d49-bb7d5af8e91b","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":137,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"4741bd5a-f34b-4f14-939b-10ab625bf1b6","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":137,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"6c308c89-4a58-4773-89a6-87ec049cde8e","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":137,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"d20b6950-306d-44d9-bc49-526659eeb6ca","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":137,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"473cb542-affc-432a-9b1c-a0778d4b18c0","block_type":"box","text":"investment of $2 million who may purchase shares of a Fund through a financial intermediary that has entered into","page_number":137,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"5c2bee88-4a81-4032-8849-8727e7904252","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":137,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"a7a60184-aa31-4fd5-b982-0ab5dd61bef8","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":137,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"8540d78a-ed36-45ff-8147-4d732384ff35","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":137,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"8260ef72-01b0-4e31-9231-d7ff6bd93a86","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":137,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"31d3e01c-7fb4-4bc3-9aab-e43eea1000fa","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":137,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"c58d79a6-b302-4b5e-9fe1-1916ea6870c4","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":137,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"760599e1-9220-42ac-8a63-77d5d023a2c7","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":137,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"10be72ee-d688-4a8d-aa5d-1e729c325f1d","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":137,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"7417dffc-e7e0-4516-abdf-6db478d185e1","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":137,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"d0069cfe-8921-4dc9-a10e-80bf7c42bfe5","block_type":"box","text":"(i) charge such clients a fee for advisory, investment consulting, or similar services or (ii) have entered into an","page_number":137,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"9e433ff1-bed8-492c-9b01-7c2800657237","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":137,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"cb136405-7c88-4583-85c3-c0d10606e041","block_type":"box","text":"II-99","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"59ed0494-9e45-4362-aca6-bd6a45b971b6","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":137,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"1a16b9f2-68f6-4d11-bd0f-24fd4e9efd36","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":138,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"d3c13c34-c9a4-46bc-bcbd-daeae0bc655a","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":138,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"31ee37a2-f22b-40d1-b096-d1774cdf656c","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":138,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"44cb6819-8869-4598-a738-238c0dd489bd","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":138,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"2250a220-8c1e-4326-959c-9172dbfedbfa","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":138,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"707e84ba-830a-4780-9f27-ec35a3d57def","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":138,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"7019e5fc-9749-4051-8664-953ab12f9220","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":138,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"60744b77-9df8-4481-9e22-469b837f3756","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":138,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"545adb60-d4f3-4120-9a05-5d17d3760388","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":138,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"61556cad-54b0-42be-ae9f-e028d013e371","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":138,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"89b2824f-d682-490f-b527-d776876b281d","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":138,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"a08134b8-a7bd-4f5b-a910-df3eb8d34623","block_type":"box","text":"Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or other benefit plan for such","page_number":138,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"6fad5219-08a0-4e18-8caa-ede3aef93493","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":138,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"b68609ff-bdfc-42f6-b6e4-c23285da3b52","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":138,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"2db8fae8-d5e4-4d07-a617-995360ef54ec","block_type":"box","text":"with the Fund. Employees, directors, and board members of other funds wishing to purchase shares of a Fund must","page_number":138,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"5e8415bc-e90b-4567-966e-865b725e8e6b","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":138,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"b611e7db-32a8-4bd3-b6b5-217994763cc5","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":138,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"e45e8f11-fcb6-44a7-9301-fff51bc1b6df","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":138,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"6a04cc4d-36b4-48ed-a285-021a0d89616a","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":138,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"0d3ee657-a8b5-4a84-b71b-e5aa03232317","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":138,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"36c8a7ad-3ca8-43d3-92b0-f945019666fa","block_type":"box","text":"for dividend and capital gain reinvestment only. The Investor A1 initial sales charge does not apply to the transactions","page_number":138,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"ecf1af1e-0628-48ae-9805-186a1f03da0f","block_type":"box","text":"described in (i) and (ii). For ease of reference, Investor A, Investor A1 and Investor P (discussed below) Shares are","page_number":138,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"58726956-6daf-4b09-a381-c44380610923","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":138,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"e74dec4e-a40d-4e8b-9648-48d67b29164a","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":138,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"bb7f3ae2-6d00-4d31-8939-5d10f026634a","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":138,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"b5b53004-2d6c-46fe-a69e-2db31f58e11a","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":138,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"22e9082f-f683-44fd-af6b-4a0401300e30","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":138,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"ad2708e7-cf71-4ddf-bfac-6639b8693c19","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":138,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"9d0ec121-f375-4f16-a028-82cfbe941df2","block_type":"box","text":"for an extended period of time also may elect to purchase Investor A Shares, because over time the accumulated","page_number":138,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"ff43e838-48ce-4980-8307-ba3dcd5a579c","block_type":"box","text":"ongoing service and distribution fees on CDSC shares may exceed the front-end load shares’ initial sales charge and","page_number":138,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"bd941bf5-752b-44fe-ab26-025271be4192","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":138,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"5884b637-c675-40a0-8f61-11e3998fc946","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":138,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"27e2468d-05b3-4b58-b7f8-3a4ded1bfb00","block_type":"box","text":"BlackRock front-end load and CDSC share holdings, will count toward a right of accumulation that may qualify the","page_number":138,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"89edff08-12e6-4b87-9ee3-3757f85e69d5","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":138,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"409b1d58-2c6b-4d95-ac26-0910ec428d1d","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":138,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"a1323ee9-3064-4787-8ebc-c6e52a465157","block_type":"box","text":"have lower total returns than the initial sales charge shares. The ongoing front-end load shares’ service fees will","page_number":138,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"ea2ef0fb-25a9-4e68-b55d-34178b4fa9dd","block_type":"box","text":"cause Investor A, Investor A1, Investor P and Service Shares to have a higher expense ratio, pay lower dividends and","page_number":138,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"0128bc9d-a077-4c6d-9f1b-c8c532f6a542","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":138,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"5c43aabe-bf13-4c7c-9018-ccb8c02a4b44","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":138,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"e1dd0622-ce73-455c-9f0e-640babc5a9b7","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":138,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"7c9f8903-ac8c-4d1b-a030-1bbf4e0bb5f3","block_type":"box","text":"periods indicated.","page_number":138,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"0d4c0453-9bd5-4581-b3da-675f6b9c9dba","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":138,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"4765336b-b5a4-4b29-9da2-dbcec7012ad7","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":138,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"5f4d3825-bff8-4346-998a-ccb134ba1225","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":138,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"db686ab7-7a95-4b66-bb38-531a1cd4c261","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":138,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"77b2f4a9-713b-4c0e-8372-6514e3f50063","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":138,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"800eee64-4419-47be-9925-cc96c1610b5f","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":138,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"a6668d46-7934-44c8-8d5c-a3fc288a2b65","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":138,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"0ae03ec7-58d8-457f-8e9c-91098a69094e","block_type":"box","text":"entered into an agreement with the Distributor to offer such shares and are subject to an initial sales charge. The","page_number":138,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"5279b9c8-5631-4444-bd3a-4a4967b6be34","block_type":"box","text":"ongoing front-end load shares’ service fees will cause Investor P Shares to have a higher expense ratio, pay lower","page_number":138,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"eb9c8bc3-ee6c-4f19-a6fd-dd684623067f","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":138,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"add01b61-f247-403b-83ff-0392e40a19ce","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":138,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"6cb975d3-9c20-4a1e-a024-83bf051f5140","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":138,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"2f5ab893-93a7-44cd-8b34-80be46ccfc29","block_type":"box","text":"II-100","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5512db6b-f972-4b7d-8ca3-681825135d76","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":138,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a51b334f-1686-4793-a415-d2ed669c8585","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":139,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"90e14341-e241-4726-aec5-4a4818e9361c","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":139,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"8f698dbe-645e-419d-bb0f-a89129dbd50d","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":139,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"a5ed98cf-d14a-414b-8f09-b6c3a6ba32f2","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":139,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"df6a3c54-c762-4fd6-84b1-5ccdd6362ab8","block_type":"box","text":"Reduced Initial Sales Charges","page_number":139,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"d23def00-67fa-433a-8799-2efe8f2e6fd1","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":139,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"0e1d4f2c-acc8-4969-b53a-561fc4ce8e61","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":139,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"024f331b-7918-409f-ac7b-7a630b7f95d6","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":139,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"be8a13b4-207e-40de-b390-14be3e40aae3","block_type":"box","text":"exchange shares of a Fund from one class of shares to another class of shares of the same Fund provided that the","page_number":139,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"f37d40a1-7475-45fb-a258-54b6d96508cf","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":139,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"14c7ae6e-65ed-4a35-ad55-5029948f0fb6","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":139,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"984757d2-3f1b-42cb-bf90-7736da48caf7","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":139,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"2801f3cc-f858-492a-a2c7-495636c994e5","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":139,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"84a27f6f-582b-4948-bebe-1100f3b7550f","block_type":"box","text":"Reinvested Dividends.","page_number":139,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"f0048692-b382-460a-82ba-da921b0f2f54","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":139,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"fa490d00-cc65-4e56-b989-e12ad7009964","block_type":"box","text":"reinvestment of dividends.","page_number":139,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"7e92dbf7-ea95-4e9e-9985-19f2c8d77db3","block_type":"box","text":"Right of Accumulation.","page_number":139,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"453f7798-131d-4b02-a38b-069eb348e68a","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":139,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"5c980c86-7bbf-40fa-a54d-8387b0954dc2","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":139,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"d5a65939-f071-4813-a979-e5424b6f356d","block_type":"box","text":"a reduced front-end sales charge: (i) the current value of an investor’s existing Investor A, Investor A1, Investor C,","page_number":139,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"3bc09cb8-6701-4c98-9546-4b97253e6cc9","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares in most BlackRock Funds, (ii) the current value of an investor’s","page_number":139,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"85953f99-eee5-477d-b265-6a883846591c","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":139,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"1fd70f63-6b47-4f33-b672-0109bbf99e95","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":139,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"daa636dc-70ad-4e3c-9be6-9b4d1fa057f3","block_type":"box","text":"CollegeAdvantage 529 Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":139,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"5fd74533-138d-4a8f-9720-e5789ea75717","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":139,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"3cec342b-e10d-4750-9750-c9f702f06805","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":139,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"0f798e6d-081e-43fd-a855-180c5bfa99bc","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":139,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"5e1fdd63-792b-46bc-bc67-26e2735817b6","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":139,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"67516c3a-ca9a-432c-9a47-16c5d3ae7549","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":139,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"85cb0ac1-2d0e-4345-b68c-1512eb3ad2f9","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":139,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"9e34fc1c-7005-4f8e-a4fe-c4d4d45c1f92","block_type":"box","text":"charge, an investor’s existing Investor A, Investor A1, Investor C, Investor P, Institutional, Class K and Premier Shares","page_number":139,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"e04f786f-5c0a-4324-a87c-4b51aab5214b","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":139,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"788b5ec3-0ba2-4136-8a64-bbf6877b95f5","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":139,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"936e76d8-9b38-4dbd-a868-b735a6a2ce86","block_type":"box","text":"Letter of Intent.","page_number":139,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"846bf8cd-aa9d-4607-b4be-5ac8acbb9cc6","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":139,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"7b0c0e2b-84ed-4e32-8af6-bbb86c93acdd","block_type":"box","text":"Intent” stating the investor’s intention to make one or more of the following investments within the next 13 months","page_number":139,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"16c09c9d-8006-440d-84db-da726119d9c4","block_type":"box","text":"which would, if bought all at once, qualify the investor for a reduced sales charge: (i) buy a specified amount of","page_number":139,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"75e348bc-7af3-48be-8956-f16421cda372","block_type":"box","text":"Investor A, Investor C, Investor P, Institutional, Class K and/or Premier Shares, (ii) make an investment in one or","page_number":139,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"6f56f590-478f-44d9-9c35-f4006f7d6876","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":139,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"da55d4d4-a3d8-434e-aacb-b7a4c8b8d70c","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":139,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"debdbe52-0361-46d9-b75d-a6fdeefd9ea3","block_type":"box","text":"initial purchase requirement. The 13-month Letter of Intent period commences on the day that the Letter of Intent is","page_number":139,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"2e42e0c9-e24e-4674-9009-6e74726f6d46","block_type":"box","text":"received by the Fund. The market value of current holdings in the BlackRock Funds (including Investor A, Investor C,","page_number":139,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"526be77d-f7fb-4df3-ae10-35fb3899f03a","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":139,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"c6083c61-d4a8-4a32-a96b-3131551b3549","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":139,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"2944697b-9410-412d-82c4-e222a7597d64","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":139,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"4203a8e1-4799-435c-8142-dd9ebca79418","block_type":"box","text":"the Fund of (i) any current holdings in the BlackRock Funds, Eligible Unlisted BlackRock Closed-End Funds and/or the","page_number":139,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"94abacc7-3d22-4515-9781-aba4f7b46a94","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":139,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"98ba5472-5052-46d5-93c5-d257d4a43c3a","block_type":"box","text":"subsequent purchases that should be counted towards the Letter of Intent. During the term of the Letter of Intent,","page_number":139,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"4027e2ac-849d-4247-9f2d-4f92f62092bc","block_type":"box","text":"the Fund will hold Investor A Shares and/or Investor P Shares, as applicable, representing up to 5% of the indicated","page_number":139,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"1f22a988-a4d5-4eb5-9709-34ae3c9b4a1d","block_type":"box","text":"amount in an escrow account for payment of a higher sales load if the full amount indicated in the Letter of Intent is","page_number":139,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"77d4e1bd-8ec0-4431-91c1-03f106a0528e","block_type":"box","text":"not purchased. If the full amount indicated is not purchased within the 13-month period, and the investor does not","page_number":139,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"b20d8db9-70fc-4d9f-8d1e-20d7c2d8ab6a","block_type":"box","text":"pay the higher sales load within 20 days, the Fund will redeem enough of the Investor A Shares and/or Investor P","page_number":139,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"a669dc2b-544c-40f8-b777-57046a7510db","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":139,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"cca8e4ab-aa36-47c0-8e10-57c6a674a1c6","block_type":"box","text":"Placement Fees.","page_number":139,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"d4ffc3c3-5356-4280-8a17-8402ae1783de","block_type":"box","text":"BlackRock may pay placement fees to dealers on purchases of Investor A and Investor P Shares of all Funds,","page_number":139,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"46e8a66a-832a-4411-b5fe-4b344ca703e8","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":139,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"03bf8b99-f10d-4367-ace2-95d660de32c4","block_type":"box","text":"II-101","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ecd996ba-e59c-4ba7-856d-34e672623080","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":139,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"25e6c63e-490f-4c04-b18b-3b4fe9e99eac","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":140,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"62708d15-8237-46b4-b6fc-f2364efa0aa8","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"5f30ac95-3d68-4f61-aa93-a4c7dcd2059d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"9fb9e6d2-e761-4873-bcae-d418abcb732a","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"7186ddf4-e548-47ef-8613-6b1d6a61ac81","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"89dfd5fd-6e3b-4523-bd86-31cd6705c759","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"a380ed39-7d46-4b7d-b249-bc314e7b6614","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"5acae1b2-e196-4597-9874-bd9969e59190","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":140,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"63b4d411-f93b-45c5-b522-274c2e6d2bfd","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":140,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"8095579e-384a-4a90-9467-209cb41bd1a1","block_type":"box","text":"purchased prior to July 1, 2020) of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV","page_number":140,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"1a638743-f89c-4a8e-83de-0cb13223dc62","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":140,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"abe85683-02b0-4bdf-b77c-c66a8d629e4b","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"2ca0ce0b-7abc-4321-bd52-a079167d5f45","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"9fbc75fa-9778-49f3-8aae-e271da1a14cd","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"a7dc08c1-b051-46cc-9088-418fe675ea4f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"a2559602-2110-4afc-b321-7a855a661988","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"921e78f8-2620-4a92-a4ef-5045a9b57f27","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"f11254b2-c94a-4b8d-b40c-30bddd93cec2","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":140,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"10f5bd59-e6b2-4c6d-8ee4-079b04f9d965","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":140,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"2063a450-812b-4b16-9a92-6d2fa131fec1","block_type":"box","text":"SM","page_number":140,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"93c2a0f3-64ae-4230-99ef-576349a2a551","block_type":"box","text":",","page_number":140,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"0b9ec77c-f28c-4005-acc5-fd5c0b587bc0","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":140,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"22783964-2f6e-46f6-915e-1d91bce3efb4","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":140,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"a506eacc-0740-472b-80ec-7a92c323932d","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"426eaf43-ae7b-4018-bbd0-960c698d8293","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"d32b94a2-a785-44c7-80ea-67178e4dd840","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"cdc022f9-e9ac-41e9-ab7a-71f0b37bd923","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"762b7250-8765-4388-a70c-459c93427fac","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"9146dd16-d61c-4b38-b393-c4c049fbc066","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"c03093f6-28fa-4232-b11f-abf6c9781a8e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"0a0338f0-6508-42c0-96c3-fe9ec6f8796f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":140,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"fd01d23b-8d5e-47f2-bb42-40c40f4b29f0","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"320d1320-d1d9-43ab-bc0d-ea6552f0d0eb","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"9441165d-f4ff-4491-99d3-4473ed0c09c7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"62d26d91-3ff7-4ac9-9113-1f5a772961f3","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"5f1f0644-c530-4056-ba36-367c0d0e0647","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"2b556eb2-0b30-4a38-9ceb-9e2dad939b29","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"9f854e75-e42c-4057-a128-cfd949592c9f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"660eec6c-b48b-47cd-8004-8c7625fdf36a","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":140,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"1102bb3c-cf40-4915-b40c-ad7395444ec4","block_type":"box","text":"may be up to the following amounts:","page_number":140,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"3b618d12-04cb-4071-9ed9-5d1aae02822b","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"bba54622-b577-4e21-8a7d-b22e32ff2b6f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"6c54139f-e14d-41c3-a4e4-7d2511557a6c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"33fa4111-1260-485a-abfb-61a4c73fcfa1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"611c5b29-44de-4dcc-ba52-6d390d91e2c1","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"9c791dbd-0e82-4da4-9a1f-94f05b6a75ea","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"c9dca727-1cf6-4d88-b4da-09dd51a4553b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":140,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"c69550a3-727e-48b4-bc54-a7da09405459","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"742a754b-19d5-45e5-a3ce-cc1127deae39","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"f3c31646-0c24-40fe-b982-d4940d42ff5b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"42454a2f-f064-4153-a1fc-373129531115","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"d567f222-ebf4-4def-9abe-4d7c0090f43c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":140,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"db2761b5-0dec-4175-bdd2-696f29aaf964","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"48b72fd4-ee88-434e-a3aa-4c7d488e1433","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":140,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"f7f1d0a2-c62f-4b89-8f6a-c553edc09263","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":140,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"60a9e16f-943e-46ce-971a-888b1fb81562","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":140,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"e12c2526-749c-42e4-ae82-c593e1a56e7d","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"d0e8097f-2dba-4f08-9122-f3dcdd69dc3d","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"93f467a9-f6d1-43cc-9215-ba9e21674e82","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"f269003f-4517-4611-b0ac-9443a6bd291e","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"41bd6cf4-c53e-43b9-aae7-dc4d1e567b3e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"4e9de4e3-74c8-4f7a-a8e3-0bb6ad59aade","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"576357ea-48f5-419e-a802-7f3ce81852a7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"9cec1472-eae8-4832-853f-aa971d3e759b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"3ae00b44-cbac-422f-a586-d9cb1b060a0e","block_type":"box","text":"Inc. (for shares purchased prior to March 18, 2019), the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"aee3fd87-e70c-4866-bb6e-b80f34e9ab31","block_type":"box","text":"$250,000 and above . . . .","page_number":140,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"1f7695b4-4cf9-4ac8-a2a1-0cbc3b131637","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"3eadb3a5-af9d-4229-9ee3-5dd402905012","block_type":"box","text":"II-102","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"90a56381-3e65-43e5-a2c3-d0df1103048d","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":140,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"12a283d3-696f-4132-afb5-3e7e7a332962","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"7677c027-cb48-4393-a8af-aa06d9835a4b","block_type":"box","text":"Inc. (for shares purchased on or after March 18, 2019 and prior to July 1, 2020), the placement fees may be up to","page_number":141,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"379a6950-fa0a-4e83-b184-73d6848f1f7f","block_type":"box","text":"the following amounts:","page_number":141,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"bbb90bf9-ebde-42cf-a3d9-5511bf3b8205","block_type":"box","text":"$100,000 and above . . . .","page_number":141,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"a891c75a-6f24-4f38-a374-4fad644aec4b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"4da52669-7a07-4363-9e24-20d34f81a29f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"940bd627-c777-47d0-a663-820ca9d7fa8b","block_type":"box","text":"Inc. (for shares purchased on or after July 1, 2020), the placement fees may be up to the following amounts:","page_number":141,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"3de9d644-c5d1-4547-8173-a6d776e04547","block_type":"box","text":"$250,000 and above . . . .","page_number":141,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"a6595794-c31a-4c2d-b195-4ac7b958f9b2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"cf45b8db-135c-4809-b47b-aa8ab4bcf777","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":141,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"c5164a56-3fa0-4c6a-8f80-3090d21d8677","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":141,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"0dc891d9-9fe2-40ca-b67f-38e20ff1592c","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":141,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"e1e2521b-e651-4b50-a576-ebc887af6f93","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":141,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"03f1f51e-ee8e-4552-b90b-01e8f1f61b06","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":141,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"a125ce08-cb9a-40ff-948b-46effd9b8dcf","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"9d64dd32-ff59-47e5-8144-e6739cf1ced9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":141,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"691ff3d5-87c3-412f-9032-f2abbb95d549","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"a4ff9606-65fa-4ce2-92af-ca71f89979d5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"c69fa0b4-12a2-46d9-b83a-bece10295ea4","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"23bbe40d-1fe6-4956-9360-b6d720dfc9f1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"414dfeb1-a506-4dfa-9e37-e4300c345a41","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":141,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"89178451-79dc-4a58-8f42-6a350ecd2c1b","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":141,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"7db6d437-b3ae-40a4-86ad-0e5141b472ba","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":141,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"9fbfa5dc-25d4-4754-944a-6109d2f47dca","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"2ac20e4b-a39e-430f-8bf1-db12ed0d8931","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"0e03240f-d82d-48d4-882c-b19579cc87da","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":141,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"ac23a30a-5479-4223-9458-e573adf1119b","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"6108c73a-1e9b-420e-82c1-1409e7fa950d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"5adb6c93-cd72-4e7d-866c-05efdc72cce8","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"2df947f6-4e80-47eb-b9a9-dfdd515b3831","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"6f152724-01d1-4658-b095-5093e19e58b2","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":141,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"8073298e-33db-4284-938e-5b9f0069509f","block_type":"box","text":"®","page_number":141,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"7c085f5e-a169-4fce-b76c-1c84046ce91f","block_type":"box","text":"Index 2030 Fund, BlackRock 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a","page_number":141,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"1fcfa736-2eec-44b0-9699-3a78cdec9e30","block_type":"box","text":"II-103","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c41d83ac-bf5d-4a5f-94d4-c0a9b402711a","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":141,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"43a73acc-4e0e-4b11-bd0a-5c6daaf24e56","block_type":"box","text":"fee-based program (such as a wrap account) under which they pay advisory fees to a broker-dealer or other financial","page_number":142,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"cf2b5388-2fa0-4c7c-828d-3dd48f4ba5d2","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":142,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"99cf52b3-2253-4bac-94d6-b9e5b83ace5d","block_type":"box","text":"approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not","page_number":142,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"ecd7bfbf-19af-44f7-9201-9b30930f30ee","block_type":"box","text":"charge a transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into Roth","page_number":142,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"a2507a1c-5bb3-4052-8718-6f309888914a","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":142,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"a2814244-2867-4605-bfab-09d810074281","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":142,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"0c943691-28a1-446b-bfe8-7cc198fb2f7d","block_type":"box","text":"involuntarily liquidated from a Fund, who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":142,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"9e4de5d8-eb8b-409f-8eb0-05a33c8369e6","block_type":"box","text":"only up to the amount that was liquidated). The following persons associated with the Funds, the Fund’s Manager,","page_number":142,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"20af16cf-3e89-4abd-b453-e7f2ba1b1ff6","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":142,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"8ed10f07-13b7-4f10-907e-ecb43a678514","block_type":"box","text":"or Investor P Shares of each of the Funds without paying a sales charge to the extent permitted by these firms","page_number":142,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"d365f911-ae63-46b2-88ed-9dc54154316d","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":142,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"d15fad3d-8f4f-4f34-928e-712c6372a28c","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":142,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"3786eb24-d18d-44db-b3cc-b397d937cb19","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":142,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"4d3230ae-f3db-4de6-b33a-3cc616b112d3","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":142,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"71e62bea-bfe7-47a2-8f29-181547addc45","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":142,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"1600e134-a518-4877-962e-17154e323ed3","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":142,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"50d728f0-0591-4bee-b744-ccc4cce8deed","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":142,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"3b6d8d80-0b0e-40c1-ac85-f2779c284bdb","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":142,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"4224581b-5b8d-4721-8e99-84c16fb3daf6","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":142,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"b889adc1-989e-47b4-8702-85829f5e336c","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":142,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"35a72720-122f-4fd4-a001-e07666b34650","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":142,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"64885ae3-04bb-4f3d-a750-d8d9517a3ac7","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":142,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"a3798e34-ead1-4811-83ad-f530fd29c1ce","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":142,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"f775aef0-bf2a-4306-a34e-e5d543e43430","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":142,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"685551b8-a9ee-40ab-b302-85f5e644b651","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":142,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"4cf9072a-0449-453f-bd9c-2626660c2f4a","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":142,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"b76e323c-1d33-4197-ac8d-607d4d66da0a","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":142,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"bf88d8ff-ecc8-4c0a-b1c9-3dc89e088e67","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":142,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"a07f0a27-6290-4f20-9ad9-9653aead10aa","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":142,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"4041bc89-4fc2-4e14-9482-855803e8d818","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":142,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"8b25a8ca-4f78-4dd1-b677-0e0401015946","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":142,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"aebb5a96-23b7-4f10-b75d-d9b469bdd1cb","block_type":"box","text":"BlackRock Funds V) or more in Investor A or Investor P Shares, as applicable, you may not pay an initial sales charge.","page_number":142,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"7e10efda-721c-445f-89e7-883fc074d750","block_type":"box","text":"However, if you redeem your Investor A or Investor P Shares, as applicable, within 18 months after purchase (a","page_number":142,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"9ddb986b-266f-4027-bc70-677da7a7a98c","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":142,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"e509a179-c96e-46a4-ad5d-8551bdaf3f13","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":142,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"c36976a3-809a-423f-ab43-6e1833f9eee5","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":142,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"11a4c859-ec06-41e6-b04d-77c1889eb4f3","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":142,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"e418380c-c6b2-4039-8dcf-80af1304ad45","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":142,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"bd8c00f8-65f6-41ef-bf7f-16bb228daf6a","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":142,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"4ffdf2b4-775a-464b-8947-db8689fd6756","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":142,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"6bb09d20-40c7-4fe9-8ed6-cb0c732e30b6","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":142,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"72db406d-6a9b-4c8a-99b3-58461b5b2b57","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":142,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"513ff73b-c20d-43f0-956d-92f33939c8e4","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":142,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"00b6eccc-620a-421c-be21-c53f05505b91","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":142,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"1e6aa9a2-4c88-4e9e-ba85-64d61b9ae68f","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":142,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"33c6bffc-2598-4969-9465-c11ae04e518f","block_type":"box","text":"The deferred sales charge on Investor A or Investor P Shares, as applicable, is not charged in connection with:","page_number":142,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"b5ccf0a0-59b4-469e-93d3-8b2f30d89fae","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":142,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"075b4789-b659-4eb1-be07-50d70e84a99c","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":142,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"dd3be653-1531-4ce0-b7ac-aafb8e1d79b6","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":142,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"2140786b-f2e5-4d09-9af1-8d27608adf89","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":142,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"5f0d4130-0e3d-4dae-92ae-dbb9c21183d3","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":142,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"625ef2e4-7d1b-45f7-b7cc-9ebcae2c82a2","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":142,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"9acc5821-5e39-446d-8688-1494485fb87d","block_type":"box","text":"distribution of account assets to a beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as","page_number":142,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"5747a1f0-be71-4ff5-a6b8-e094ce9b6f0d","block_type":"box","text":"defined in the Code) subsequent to the purchase of Investor A or Investor P Shares; (f) involuntary redemptions of","page_number":142,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"edf0f9e1-eaa4-46c1-9c11-266f8b20dfad","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":142,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"53770287-1cbe-46e0-a12d-aaf6ce5ece4e","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":142,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"0bea998a-3b5f-41a4-91d5-37a2e3701379","block_type":"box","text":"II-104","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d850b5ee-a66a-4bf3-8729-d31cdfc1aab7","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":142,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6cb51752-9c89-43e1-a9bc-4e6b437f2afa","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":143,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"fb6ba82f-38bb-42f4-bcda-a2b33defab49","block_type":"box","text":"the absolute discretion of a Fund.","page_number":143,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"d7790b41-7893-4e5e-b678-351c61861f78","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":143,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"43db5546-7fae-4b82-955e-b05f2ea6149b","block_type":"box","text":"fee, the Fund may, at its own discretion, waive the CDSC related to purchases of $1,000,000 ($250,000 for","page_number":143,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"08b0a74c-c6a8-4e04-ba08-6191d26f975c","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":143,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"7197db7e-3c3a-4996-9b81-bb267c875ffb","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":143,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"47468d7a-cd36-434b-aa88-639e7261f1a6","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":143,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"009b935d-1c40-4c3e-b941-acf3a769ea98","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":143,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"56fc9a2a-388c-468e-8fd9-997cbad7f602","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":143,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"02a3b5c0-1628-477e-b5fa-1aa7f8b1baf5","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":143,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"9ffe7da4-9890-4bb9-8069-ca12856bc441","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":143,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"3ed20eda-c955-4a6c-abd5-f5fda2288984","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":143,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"5f5cb503-2b88-4809-9e65-6ec595f2d15a","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":143,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"72d5d1a4-de55-42c1-8c1d-ccae03266597","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":143,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"80358a3a-c8d0-4a47-a9c6-1ff0596ac997","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":143,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"10e4c68d-787e-431f-808e-574dc55e3136","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":143,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"71a92032-3c1e-48c4-bf66-1d2d5e1d6706","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons, are required","page_number":143,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"6265cb49-9dcc-4ba8-881d-002cd1c9a3b5","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":143,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"c0a70e12-0673-4686-b699-17de421de90b","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":143,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"ce0f7a0a-b997-46d1-bd7d-b5f3596d8f46","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":143,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"c4a55545-2204-4de9-ba11-78fede2b76b7","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":143,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"27dd772f-7089-4fcc-956c-fb987fb15549","block_type":"box","text":"connection with the acquisition of the assets of, or merger or consolidation with, a personal holding company or a","page_number":143,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"a201928c-12ab-41f4-87e3-b79fe34f214b","block_type":"box","text":"public or private investment company.","page_number":143,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"c080e9d0-a2c1-4f1a-8070-97622af09213","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":143,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"c5ac0214-2f30-4d3e-8c0a-abb473003e38","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":143,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"08c6c92f-0513-443e-bc35-638d4477f705","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":143,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"f2883972-a474-4e45-b0ae-588a54141406","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":143,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"4a8a4ca5-5704-4bab-a574-f53571c9b30c","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":143,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"a813082b-417e-44a9-92b2-8664fee83116","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":143,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"76051d96-0660-4fdc-ac53-f04bd99174fe","block_type":"box","text":"as to the length of time they intend to hold their assets in a Fund. If you select Investor C Shares, you do not pay an","page_number":143,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"d0d4e1ed-1a83-4953-bb87-c4be74774f61","block_type":"box","text":"initial sales charge at the time of purchase. A Fund will not accept a purchase order of $500,000 or more for","page_number":143,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"ab9c25a2-1005-47a9-a795-9e3392ce419c","block_type":"box","text":"Investor C Shares (may be lower on funds that have set a lower breakpoint for NAV). Your financial intermediary may","page_number":143,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"c84cffba-a51e-42a3-a242-e65a9f915b18","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":143,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"66512e47-785d-418e-8085-a5092a5caa8b","block_type":"box","text":"Investor C Shares are not available in accounts opened or held directly with a Fund that do not have a financial","page_number":143,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"4a645cf8-b51d-4883-8d35-e3d2a1dfdfb1","block_type":"box","text":"intermediary associated with the account.","page_number":143,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"1b57323b-fb52-4c17-97e0-b921095f33dc","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":143,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"40292d13-fd22-4539-8c3a-d55a4d2d62a0","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":143,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"54878292-b5e4-4e2d-a941-410cf4bf8e3b","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":143,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"2ac5a06b-8e9c-41f5-bf83-2c28620b9e0e","block_type":"box","text":"these fees potentially may be offset to the extent any return is realized on the additional funds initially invested in","page_number":143,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"cd227171-c275-4ef5-ab86-d544e030406a","block_type":"box","text":"CDSC shares.","page_number":143,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"1db9bc27-d2c4-4235-8684-4ca21d287e03","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":143,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"bf2182b1-e587-44a7-8c7e-3983031bb0b3","block_type":"box","text":"of purchase from its own funds. Proceeds from the CDSC and the distribution fee are paid to the Distributor and are","page_number":143,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"2013a1a5-fd53-4475-b35c-d6b07d992be5","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":143,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"2239ae01-30e2-4537-ba97-548b0a943196","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":143,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"4b433f9f-97e6-48aa-8956-7fdae8c99876","block_type":"box","text":"of the CDSC and the ongoing distribution fee facilitates the ability of each Fund to sell the CDSC shares without a","page_number":143,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"d4cc3317-8d1b-4a0a-9b76-a69f658e6ccb","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":143,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"3781f429-c5e4-4b9a-b802-e92896c0c407","block_type":"box","text":"Imposition of the CDSC and the distribution fee on CDSC shares is limited by FINRA (as defined below) asset-based","page_number":143,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"059e77ba-5b97-4ffd-ad89-2d81809b5016","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":143,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"de11b181-a9cd-422d-8b22-712b62f78dd5","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":143,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"2cbb5d66-cba1-4665-b913-3b7fc6b03e1b","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":143,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"fc611753-bab5-4ebf-9739-6e2667e30cf6","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":143,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"b05cd3a3-ab8c-4ffe-b816-6bd141d83881","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":143,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"4ccd5609-f10d-4b70-bc1f-c1c90c7a502f","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":143,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"7822d756-4133-488d-9451-d94e32e9d63b","block_type":"box","text":"II-105","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9a11a70c-ef95-42b4-8654-dfe22439152b","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":143,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"7b320eb9-193f-4ac0-80c9-4662486811a6","block_type":"box","text":"with sales of Investor A, Investor A1 and Investor P Shares. These may depend upon the policies, procedures and","page_number":144,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"8375995f-39e8-47c2-9f0e-83b72b863b36","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":144,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"7e173450-0bba-425d-a743-4575e36bb154","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":144,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"e036abbe-2e92-416c-b0df-6b9297c63dd3","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":144,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"aa61ffcc-8572-4ec9-89ea-a7b6a1f973da","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":144,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"ec4c98e0-66e1-4da7-b679-81f3a56999da","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":144,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"d9bc50a7-46ee-413e-b984-812f1257b293","block_type":"box","text":"Investor A Shares.","page_number":144,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"871969ff-2d33-4651-9c21-efcb4039ec1e","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":144,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"8b24eccd-feba-4b19-ae94-88e57a31ab52","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":144,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"45312d40-938f-4620-ac67-11bb815b715f","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":144,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"9fd6222c-e862-49b8-9753-57cd00791f6e","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":144,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"e2dd32f2-a9fb-4adb-b03b-74ef2c0d5869","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":144,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"199350b8-2734-418b-b21a-68426905cc01","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":144,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"d5e6ff98-14ab-402a-9c45-1e7a648c52dc","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":144,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"3bd8f854-02e0-4c27-9317-4006ce9f7652","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":144,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"cae6f436-40a6-4abc-aa8b-4747ac9ecb52","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":144,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"b274cdde-3aa5-4bb3-8b2b-2387525d91d4","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":144,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"badef13a-3728-4e9c-9ed3-3e9976d61c3d","block_type":"box","text":"the Effective Date. If, as of November 23, 2028 (eight years after the Effective Date), a financial intermediary has","page_number":144,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"b50c0b7a-9b88-4807-9e2d-5f20a8665348","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":144,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"5d441b55-cc84-40f4-a08f-3dbffa076d46","block_type":"box","text":"holding Investor C Shares through such financial intermediary will no longer be eligible to hold Investor C Shares and","page_number":144,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"865d5c89-18dd-4000-9dee-b6026bbbd300","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":144,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"0d5741b1-9e12-44ce-9b6e-0d08096e2505","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":144,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"94f3f25f-e97b-4789-a296-bae7e55bea4a","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":144,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"9d4e036c-0b0b-47ee-8964-520fa3af25db","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":144,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"26d1b749-b466-452f-a11b-ed02ea560a2d","block_type":"box","text":"“Investor C Conversions”).","page_number":144,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"cc85f371-50f0-4537-86b0-1e295bd5c99b","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”) on the","page_number":144,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"3ab6ff39-7431-4dd3-bfe7-666b4514c8c8","block_type":"box","text":"basis of the relative NAV of the shares of the two applicable classes on the Investor C Conversion Date, without the","page_number":144,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"b81d9bce-158c-47c4-b4cc-074e57f95b33","block_type":"box","text":"imposition of any sales load, fee or other charge. The Investor C Conversions will not be deemed a purchase or sale","page_number":144,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"7cf6eefd-5c55-4191-85ac-80b220f88779","block_type":"box","text":"of the shares for U.S. federal income tax purposes. Shares acquired through reinvestment of dividends on Investor C","page_number":144,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"b59aefbe-7fe0-4804-8171-a05d076484d4","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":144,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"c3e7a62b-e33d-4c09-9250-27a8a160ed85","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":144,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"e24deb96-dc80-4b6e-b801-e78ad16844e4","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":144,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"ed95d9d4-eed7-4967-863f-326fa10ed487","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":144,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"e00b63e3-2244-4c8a-96ac-2c390c3901b9","block_type":"box","text":"Investor C Shares that are redeemed within one year of purchase may be subject to a 1.00% CDSC charged as a","page_number":144,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"d7f2630c-a6d3-4227-8e30-8b531e77080a","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":144,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"059689d4-c117-4758-af58-93ef58d19520","block_type":"box","text":"a redemption, the calculation will be determined in the manner that results in the lowest possible rate being charged.","page_number":144,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"49264b3c-f8a2-4722-865d-7a535739f1a9","block_type":"box","text":"The charge will be assessed on an amount equal to the lesser of the proceeds of redemption or the cost of the","page_number":144,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"5e6b8746-aef0-443e-b6c8-b68bf29a02fa","block_type":"box","text":"shares being redeemed. Accordingly, no CDSC will be imposed on increases in NAV above the initial purchase price of","page_number":144,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"87c2fffb-700e-41a2-ad4c-b4d335befaab","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":144,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"bc7fddaf-81cb-4a3f-91ce-f3f9d95eb98a","block_type":"box","text":"dividends. It will be assumed that the redemption is first of shares held for over one year or shares acquired","page_number":144,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"0d08000c-6f6b-4e60-9e75-69b777830eea","block_type":"box","text":"pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A transfer of","page_number":144,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"aa04a725-96b5-4c44-ae9c-41097b23664c","block_type":"box","text":"shares from a shareholder’s account to another account will be assumed to be made in the same order as a","page_number":144,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"cc64adc1-398a-4853-a037-604e1192b128","block_type":"box","text":"redemption.","page_number":144,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"0a685cc2-d88b-43b3-b264-d937b8b31b06","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":144,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"548441df-40ec-4838-9977-e81e8dcd8777","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":144,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"5f5633db-c610-4d5a-a0cf-bfecf62c24c7","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":144,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"0722eca3-d4d5-4e5f-ad75-aa5104c380aa","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":144,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"86a4dafd-8410-4d84-850c-e0da42b788e4","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":144,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"4332f4ea-7290-4c06-8997-a93247d0b7e3","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":144,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"edb97cc3-ed2b-4a97-9aaf-ac51119485e3","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":144,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"fd36174c-359e-45ed-8e31-ada3ca2d0dad","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":144,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"1aa75366-1ac4-46af-8f51-2ced91e3d98a","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":144,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"393e5ee0-7cd7-403b-83b8-f9c2c7dfdbb2","block_type":"box","text":"shareholder’s death as long as the waiver request is made within one year of death or, if later, reasonably promptly","page_number":144,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"3735570c-50f2-4ebd-b329-ae48e9855e21","block_type":"box","text":"II-106","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2ca09824-1d3a-4a36-a9d1-7039cd48d8b3","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":144,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f6ed124f-2ec7-4bb0-9054-1dec38222e32","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":145,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"dca72f42-1e2d-4549-a5ce-44d4908db1c4","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":145,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"d1b399a4-71d8-4741-a220-b2f922908ddb","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":145,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"589507dc-4830-4815-82fb-fe224acade98","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":145,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"ba8e5a8b-ed05-4ddb-a088-f6300add2f9a","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":145,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"41f39839-0841-422c-a6fd-48ead057c30a","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":145,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"98857197-d8cb-4ff5-a47d-71acc22bc6b9","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":145,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"55e5d7ef-cb8e-4501-a89b-9ea29a00e9d2","block_type":"box","text":"demonstrate hardship, in the absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares","page_number":145,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"6d1adf18-a120-4b5f-a67a-a7a89d6a9c64","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":145,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"3893cd44-493b-4a6f-a6a8-05dcbafbeef3","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":145,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"bd6ddea7-f341-4003-aad1-24b65ba56066","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":145,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"1ac30721-a420-4765-9310-37bc0b70bc84","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":145,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"a4b4b65b-3a2d-492a-8a3b-06bca58b2aa8","block_type":"box","text":"Class R Shares","page_number":145,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"ce64b2d9-78ac-4f17-8b0f-2d6ce8da1d96","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":145,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"745d2697-c95b-4606-9ba4-4a13c457bcd4","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":145,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"6010b73f-9423-4124-88a5-9edae7c0198a","block_type":"box","text":"charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per year and an ongoing service fee of","page_number":145,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"eed22b6d-4c79-41b8-aca4-86218d9d9fa6","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":145,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"4bc1e607-828d-4050-a902-cf291a2ca5b7","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":145,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"e344265a-800e-4492-b0f2-05655c7a665a","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":145,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"192b973b-66cf-46e7-8579-26c1b1e3b25e","block_type":"box","text":"If Class R Shares are held over time, these fees may exceed the maximum sales charge that an investor would","page_number":145,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"f35b1eac-60d5-40f5-8c10-44333c8229c6","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":145,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"8508c857-1d36-49b2-bbff-adea6f9d129f","block_type":"box","text":"Class K Shares","page_number":145,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"c035bf8f-3d1b-4b87-aaa0-8372deec6773","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":145,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"7f7ee17b-fa93-46d1-80a5-02caecc3143a","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":145,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"b91d5640-ba03-4229-9953-b5ced4bf5274","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":145,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"b29bfa85-78d8-44e9-9022-30f4f7e85454","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":145,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"c05f90eb-b5bc-4c44-a130-2c960c3464ac","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":145,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"c50fd101-1969-4866-b643-fd81e953f834","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":145,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"c060f4ad-6a25-4b71-80aa-59f9900a9dba","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":145,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"b73f9720-4969-4f4f-933c-4bf3b256f92f","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":145,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"b9ea3235-b347-4e3a-99aa-48ab832cd597","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":145,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"a4b33999-174e-4893-b826-8219f82bae95","block_type":"box","text":"banks that purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":145,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"985bcdf1-b8a8-4bd6-b5e1-ba9bef4d2b99","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":145,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"13f89e79-44f9-426e-99de-50fef493fd54","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":145,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"f7ed9222-5cad-4f1d-97e5-33845ec1cc5e","block_type":"box","text":"offer such shares to fee-based advisory clients through an omnibus account held at the Fund or (b) transacts in the","page_number":145,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"a8774ca9-24eb-4175-aebd-30eaef784dca","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":145,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"5f55f4d4-2870-4f39-8431-291b27aab876","block_type":"box","text":"met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have continually held","page_number":145,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"ce5bca91-230a-4b43-8076-39ed6e4af999","block_type":"box","text":"Class K Shares of the Fund or the respective Predecessor Fund in the same account since August 15, 2016. The","page_number":145,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"db3a24b6-f059-4094-b632-49e9221476a9","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":145,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"eaf36f0c-f195-4188-bea4-dbb0360cea28","block_type":"box","text":"distribution and marketing agreement.","page_number":145,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"cfeffedb-b7f2-45b3-86f7-b46bb4adbcf8","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":145,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"966d1d9e-590a-43eb-953d-3c173bbf816e","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":145,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"729f9644-dbc6-4cc1-97d4-d809a1fb6d32","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":145,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"10c1b7fe-182a-40cc-8185-4a9043d1db03","block_type":"box","text":"Class G Shares","page_number":145,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"13cbaad6-3a0b-4c83-a7a5-f5394b08fb02","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":145,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"89a58ef1-b118-419c-a846-662807c1e771","block_type":"box","text":"are those where clients invest in the Fund through a single omnibus account in the name of a financial intermediary","page_number":145,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"096e89e6-75f8-46ff-bdda-5bc2264bee23","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":145,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"aa0e4152-2ff4-42c5-b92f-27b0d3259433","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":145,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"bbe3e186-9d6b-48e6-9b8b-e1b1484b6651","block_type":"box","text":"eligibility requirements.","page_number":145,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"1ec72720-b136-45df-9bcb-86ede5fd48f4","block_type":"box","text":"II-107","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5e7be9e2-f649-47ad-a5cb-c90da0f4d9a2","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":145,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a927fb28-3b18-4349-8a63-d0ecc2fc52f8","block_type":"box","text":"Service Shares","page_number":146,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"5c1c19bc-0d8a-4e70-b1ee-f691a66256b1","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":146,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"f156c900-0316-4177-8eda-ad2ce6acf06e","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":146,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"0fbf60ca-23cd-4851-9960-6abccdbb113d","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":146,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"ca1faf39-3735-4341-8298-5b0df7bae26c","block_type":"box","text":"®","page_number":146,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"014473a8-8d28-4328-a553-ad55b4168060","block_type":"box","text":"Fund in 1996; and","page_number":146,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"5d6d31b4-e91a-4255-bbc8-b9e827a0256c","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":146,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"3d8fd881-a57f-45c3-aa09-04a716e6f1db","block_type":"box","text":"SM","page_number":146,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"9c0d9fed-cec7-4f93-a72c-5577f2cee69a","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":146,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"37493844-d8fa-4390-81d1-ed66cf7a01ca","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":146,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"858d808c-5bda-477d-a870-579d03899f31","block_type":"box","text":"BlackRock Shares","page_number":146,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"243c218f-ca11-484f-8d03-b59fcfd41872","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":146,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"1be26cf7-0e02-4df4-a3e3-b3ff3f571f2c","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":146,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"e60076c2-f7e0-44fc-a355-70ebc227380e","block_type":"box","text":"fee-based programs.","page_number":146,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"acc8ce32-c313-4625-8df1-66c8fee6e273","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":146,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"ab92634e-e19e-467b-8aa0-37c5aeb17d10","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company Act with","page_number":146,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"2e99cb26-e27d-4e6a-bc41-c12d0276b982","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":146,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"de7883b4-0632-49ba-b15d-f5e55a482870","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":146,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"6fbd2b23-0ebd-4ce7-914e-c0787b3c6028","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant shareholder of","page_number":146,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"88f1dd9e-c40c-4dd3-bccc-a615bba613a9","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":146,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"7e2aaf83-e24d-41ad-8eaf-2a0244e04ee1","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":146,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"bb6543e7-c992-4271-8a06-09ae0c8449b0","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":146,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"24c6f6c1-dd9b-4644-9bd8-50b3d4687fa0","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":146,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"b637de37-8eeb-4d3b-a728-51c545b4a6ac","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":146,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"4e621871-f4e3-4847-833f-86be96d55b83","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":146,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"2a7b2a6a-d381-4ee7-b22d-19ddbe4f2f78","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":146,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"99ec9692-3062-4ed1-865b-4344d2337a73","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":146,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"b8841b8e-76bd-4be9-bf6d-69151a1e352d","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":146,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"b1ff2184-7c33-49db-8be5-a7659d729645","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":146,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"661f72be-a839-42a1-8474-25fe9b4668e4","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":146,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"844dd4b7-e399-4b18-b48c-e4611a19bf16","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":146,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"0ebc71f2-1dd9-4de5-bfce-dd03841202a0","block_type":"box","text":"Service and Class R Shares of a Fund. Such services are intended to supplement the services provided by the","page_number":146,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"21134f74-d9b8-4555-be5c-e2bc1d6b9995","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":146,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"3f7c0428-f4c4-4aec-9671-93431ff44b90","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":146,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"fc5eeaa7-28a9-4841-a7e5-45ed5a9920d0","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":146,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"54449404-ffe0-4fd7-bced-680250f80787","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":146,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"a6ccce25-cac8-4e17-875e-40a2a0916309","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":146,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"61dade8e-86c3-4c03-a42c-91899183f661","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":146,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"6655fd87-40c0-4ad7-a0b7-26d8b43fd906","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":146,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"cf5d87e3-c8d6-434d-94aa-5190cf4b10c6","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":146,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"ddcc3350-647a-48af-9a1c-ec086a729954","block_type":"box","text":"Payments under the Plans are based on a percentage of average daily net assets attributable to the shares in","page_number":146,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"08b8cc1e-c634-4701-980c-a6351392427f","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":146,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"42095a84-9e72-4d74-85dc-153db58881ad","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":146,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"c22e9e26-1dd9-463c-a70a-fed9499c5a36","block_type":"box","text":"with respect to the related class. Information with respect to the payments under the Plans and expenses incurred in","page_number":146,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"1d48033e-386a-4321-a0fc-d69b7ba8c23a","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":146,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"9f3a32e8-4fc2-45f1-97db-48d67fa30927","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":146,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"8ef72549-dab5-4e0b-a914-3b63f05233f8","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":146,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"0ce6e447-b46e-451d-94cf-703aa192208a","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":146,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"6d3c854b-b50c-4573-8ce8-e14d30711e61","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":146,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"dfdfdfb7-e638-4195-96fe-6c96e9569278","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":146,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"33ffcfd6-789e-4b23-bc26-d63f6b16cf55","block_type":"box","text":"compensation for selling different classes of shares.","page_number":146,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"06e62536-c108-459b-81c1-f449d56ddc7c","block_type":"box","text":"Each Plan is subject to the provisions of Rule 12b-1 under the Investment Company Act. In their consideration of","page_number":146,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"11802efc-88c7-4064-a24b-7d25894526bb","block_type":"box","text":"a Plan, the Directors must consider all factors they deem relevant, including information as to the benefits of the Plan","page_number":146,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"f6bad0d4-8fcc-4186-ae53-6108cf910f3b","block_type":"box","text":"to the Fund and the related class of shareholders. In approving a Plan in accordance with Rule 12b-1, the non","page_number":146,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"56c1274a-6a2b-425d-9044-cf6097fa68a8","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":146,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"8ea8f5a4-f55a-4d82-8dba-c682d5d9b4d1","block_type":"box","text":"II-108","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e67865c6-ce43-44de-a304-4b18b1ef6fa5","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":146,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"9b0000db-45c4-4984-8d41-83a28fb28ea5","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":147,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"dee07747-02d3-49e4-ab14-cbf46378d81d","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":147,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"802376d7-6707-4ad0-9ef7-42691bc3551c","block_type":"box","text":"(ii) the Plan will continue in effect for so long as its continuance is approved at least annually by the Board of","page_number":147,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"f2be59b3-3224-4f4f-8ee2-ee468041e355","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":147,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"c3d8f8ec-c282-4016-a82b-1d64a9c25cb0","block_type":"box","text":"Company Act) and who have no direct or indirect financial interest in the operation of the Plan or any agreement","page_number":147,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"c0d4fc47-5a49-4c23-bcd0-ee16a1b72650","block_type":"box","text":"entered into in connection with the Plan (the “12b-1 Directors”), acting in person at a meeting called for said purpose","page_number":147,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"c8194f14-dd87-4afb-8615-1a04c16c6afe","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":147,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"66aa2741-0cae-48d6-9412-8bfac52de467","block_type":"box","text":"approved by the Board of Directors, including the 12b-1 Directors, acting in person at a meeting called for said","page_number":147,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"589a2510-614c-4f4c-821f-2206fef1202d","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":147,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"ac02e4b4-b91f-45f5-b29a-0518612bcdeb","block_type":"box","text":"services pursuant to the Plan shall be effective only upon approval by a vote of a majority of the outstanding shares","page_number":147,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"19818bac-e84e-44c6-800e-acb911799577","block_type":"box","text":"of such class and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":147,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"a67d002d-6229-4b13-9107-96445d4ab696","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the Fund’s Directors","page_number":147,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"726b4bac-7d36-4174-95a7-a3e2d3418fcc","block_type":"box","text":"who are not “interested persons” of the Fund shall be committed to the discretion of the Fund’s non-interested","page_number":147,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"d2890575-5b55-49f5-824d-18f56da280ec","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":147,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"515c54f5-07e6-4a54-bbb3-d044437d2e43","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":147,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"dbd7e68f-7724-4322-b9e5-4184a981106a","block_type":"box","text":"easily accessible place.","page_number":147,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"f58c1227-b5a0-4f30-9a12-e1b71b04b170","block_type":"box","text":"Each Plan is terminable as to any class of shares without penalty at any time by a vote of a majority of the 12b-1","page_number":147,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"150a0243-f2a3-4bf8-a282-d7e51cf21860","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":147,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"25e7d4eb-3b17-49f3-be37-5f3d07f3947d","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":147,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"62b5fdd1-b26e-4d9d-9dff-25e8da72dad9","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s most recent","page_number":147,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"ae2c53ea-8bed-4cf2-9914-a6bbd4887623","block_type":"box","text":"fiscal year.","page_number":147,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"e932c649-9b76-4aaf-81e6-8abddec1188e","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":147,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"281d1684-d779-4835-ac41-033cc1330608","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":147,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"2dbc423f-f04a-44d6-b285-4d2458b9a03f","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":147,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"0ca10d30-a3df-4d9c-9e51-ae53de80ad39","block_type":"box","text":"the distribution fee and the CDSC borne by the Investor C Shares. This limitation does not apply to the shareholder","page_number":147,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"533f7af2-2871-43f3-98ec-dd68047c18f2","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":147,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"6bc77dd9-c489-4817-8013-9cf31ba635b4","block_type":"box","text":"distribution fee payments and CDSCs payable by a Fund to (1) 6.25% of eligible gross sales of Investor C and Class R","page_number":147,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"bac181af-f756-4b74-943f-57b3eb693c7f","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":147,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"6349456c-6383-4e18-8041-efb3f62f8677","block_type":"box","text":"(2) interest on the unpaid balance for the respective class, computed separately, at the prime rate plus 1% (the","page_number":147,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"6157b91c-b119-4ca8-b63e-a637e605e9d6","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":147,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"1623e938-f902-4259-a0dc-eaf9fff63a92","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":147,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"2bd22911-a5e3-4e81-b786-c54a31142524","block_type":"box","text":"for comparative information as of your Fund’s most recent fiscal year end with respect to, if applicable, the Investor C","page_number":147,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"cbcd8277-c477-4f3c-a78c-88eca2ecb0e9","block_type":"box","text":"and Class R Shares of your Fund.","page_number":147,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"04295d0f-4927-4972-a011-2e1fbc543fb1","block_type":"box","text":"Other Payments by the Fund","page_number":147,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"b3584d88-8b92-4f2d-8913-ec34d7431a04","block_type":"box","text":"In addition to shareholder servicing fees that a Fund may pay to a Service Organization pursuant to the Plan and","page_number":147,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"bce5241a-8963-4d54-8d6e-bf0d1fde416f","block_type":"box","text":"fees the Fund pays to its Transfer Agent, BlackRock, on behalf of a Fund, may enter into non-Plan agreements with","page_number":147,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"a2ae20e5-06ee-4918-8ca0-e19b05d033eb","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":147,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"49ef92ce-1cd0-4240-a047-ef6fcc96d83d","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":147,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"64f554c0-4ef4-4530-842f-e8360cafeb2f","block_type":"box","text":"generally based on either (1) a percentage of the average daily net assets of Fund shareholders serviced by a Service","page_number":147,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"d5a15f34-5c46-44d8-8afc-4d88bcbe90d6","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":147,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"bd64fae7-e763-49b1-b991-3d9e176c3fd0","block_type":"box","text":"of these payments may be substantial.","page_number":147,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"3898c8cb-042e-4782-9f1b-e8991528982c","block_type":"box","text":"Additional Payments by BlackRock","page_number":147,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"d01cd7ab-9553-49e7-8736-bcca7312e5dd","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":147,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"087a5dff-08bb-45f0-83b1-3ed6c370dcdc","block_type":"box","text":"may compensate Service Organizations for the sale and distribution of shares of a Fund, for services to a Fund and","page_number":147,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"b6046cbc-da00-42ee-b7c9-3da66d92cb07","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":147,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"d165f199-e743-422e-8390-f8955a45f552","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":147,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"bd6a2ed0-94d0-444f-bf3e-0fcfb0d62716","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":147,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"ae66d4e3-dda2-4390-bf42-a97eecd983d6","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":147,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"7a88d37b-55a6-42c1-933d-caffc75a109b","block_type":"box","text":"paid by a Fund to BlackRock for various services, such as investment advisory services). These payments are not an","page_number":147,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"af3758b6-7242-4a73-a0e7-cd7a4d839cee","block_type":"box","text":"additional charge to a Fund or its shareholders and do not change the price paid by shareholders for the purchase of","page_number":147,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"665585af-fdd2-4929-8d49-bda424db08dc","block_type":"box","text":"a Fund’s shares or the amount a Fund receives as proceeds from such purchases. Additional Payments made to","page_number":147,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"797cb24f-da95-48ac-bdf8-cd62b6e8dc4d","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":147,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"b6f47d8e-9b72-41ae-9481-1e8a1768a709","block_type":"box","text":"II-109","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4a9b1e0b-9d84-4c41-a85a-b20ab7376051","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":147,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"cf716301-f516-4a30-bc89-4599264d88ce","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":148,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"fce34586-7ac0-451d-bc23-d2778bff3722","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":148,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"4b06f608-19d3-48eb-99a5-902627ea2bca","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":148,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"513b3f7f-b17e-49fb-acf4-4fda58e50311","block_type":"box","text":"such payments in connection with the sale and distribution of Fund shares, are required to be disclosed. While FINRA","page_number":148,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"e48f40c1-f899-4934-b299-b328dfa195e7","block_type":"box","text":"regulations limit the sales charges that shareholders may bear, there are no limits with regard to the amounts that","page_number":148,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"18dfdd49-c350-4d21-a609-55038c00f4cb","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":148,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"0509f21a-34f2-4500-8f75-33f4e29e1756","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of Customer accounts","page_number":148,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"d629c132-38a9-41be-8898-f72c2326f7db","block_type":"box","text":"maintained by a Service Organization, may be based on a percentage of the value of shares sold to, or held by,","page_number":148,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"e5864675-037a-45ef-b973-a2eca47c3365","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":148,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"0e7d1055-95db-46ae-9a12-86b972136d54","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":148,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"8008d0bf-7ae5-4ae3-94bb-660c45236255","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":148,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"70e05d5c-1d62-4d97-b15f-409ed556bc13","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":148,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"c93195da-9164-4e81-9c58-1f911db57ee7","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":148,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"011ceca3-4264-4369-b5ec-7706a5085972","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":148,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"06532e27-e118-42ee-bde5-6943271da7e7","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":148,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"bd9ae1ec-f997-442b-af59-83abb19ae0c9","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":148,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"b2ce7fd2-ab1b-46e8-9dfd-929c64f82eea","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":148,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"7b4bedc9-c275-46f0-8cbb-a149684aa064","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":148,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"a153e639-2984-4412-875c-136189ccff19","block_type":"box","text":"same Service Organization, or one or more of its affiliates, may receive payments under more than one category of","page_number":148,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"f6a7f0af-ba68-43fc-b321-f4d71c0ae6cd","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":148,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"b69257d3-f351-4155-956b-9ca7f907a61d","block_type":"box","text":"Funds.","page_number":148,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"635b0d71-b7fe-464f-b2e4-ff0b1ac79294","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":148,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"84d837e1-1386-4fb9-9916-a90537dbc427","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":148,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"943d52ac-2a06-444f-90e0-8550d6e8e0cb","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":148,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"99d0b46d-651c-4d18-832f-c08b1277867d","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":148,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"6a079c1b-e0fc-437e-a664-9e23543f6aac","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":148,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"05c1129a-68ea-4302-be95-ff2f1dca210a","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":148,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"75a8b745-2d71-4b98-945e-61aae85026b7","block_type":"box","text":"the Fund on the Service Organization’s platform(s); “listing” fees for the placing of the Fund on a dealer’s list (which","page_number":148,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"91fd0568-317c-4369-82d2-a279ec589423","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in cer tain sales","page_number":148,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"415def2a-a841-4208-9674-7a296fb99546","block_type":"box","text":"programs from time to time; fees for providing assistance in promoting the sale of the Fund’s shares (which may","page_number":148,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"bd3af013-3182-4585-bc23-6956c6768558","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":148,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"8b730483-5c73-4410-a538-98c802b0aba8","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":148,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"7e289e29-0492-44fa-bd6a-2426215cef84","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":148,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"870fbcb1-0701-4301-bf83-9745efbd244e","block_type":"box","text":"normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by that Service Organization, and (b) 0.21%","page_number":148,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"d190638a-6c96-4786-8408-0ff6fb6e8435","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":148,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"f90c1ff3-ff19-4b25-8db5-78449e9d8fb2","block_type":"box","text":"B. Shareholder Services","page_number":148,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"ae276cad-4344-4c11-bdb3-92cbbd84575b","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":148,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"f5b595fd-77e0-4e52-b720-a3c3cfdaf2f5","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may per form","page_number":148,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"b2afd226-78ab-4def-92b0-5c1f36dcd4d8","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have per formed if the accounts","page_number":148,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"2361837f-7cad-48df-9aa7-5e752b82e5d2","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":148,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"4d58d4c8-aaec-4aa3-9c7c-17d826091288","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":148,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"2b9599ad-8635-43d7-adca-b6ee3b6decd9","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":148,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"0231610d-3788-4d44-88b1-d284c8fb294b","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the per formance of these or similar services. These","page_number":148,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"b63be825-70dc-4b71-83c6-fc091fded999","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":148,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"347cfbf2-098b-49e3-a8f6-452f8df00143","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":148,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"4dce00c5-8c38-49c9-9ba7-afdb15318917","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":148,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"f79af7fc-5a62-4380-b439-bad002bb06e1","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":148,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"9cdd9a87-067d-4d23-b827-173784a5e98f","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":148,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"2fb5a303-129f-42aa-ad97-05c69046c7f6","block_type":"box","text":"suppor t. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":148,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"a0f5ddf3-3c9e-4977-92e5-091bc8be483b","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":148,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"694d185d-87f8-4118-a824-c33cb62d7e84","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, cer tain of the Service","page_number":148,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"f3c9bf95-2241-4a0e-9fce-dc52d3030e4d","block_type":"box","text":"Organization’s affiliates, may be receiving one or more types of Additional Payments. This list may change over time,","page_number":148,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"93ee2b49-a750-458e-a2c6-c92a911c9f39","block_type":"box","text":"II-110","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"43339816-8ffc-4d65-823d-6568860ae107","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":148,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"58fe16f1-b737-4183-9c99-320febd4f9ed","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":149,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"6181e8b8-2b0e-485f-946a-82f80cb37bed","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":149,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"e171234d-054c-437b-b50b-3a46bac9ad76","block_type":"box","text":"payments and to obtain fur ther information regarding any such payments.","page_number":149,"box":{"x":70,"y":75,"width":523,"height":11}},{"id":"dd34ee6c-f40e-41fc-9b46-0dd1a0032fc8","block_type":"box","text":"&Par tners","page_number":149,"box":{"x":69,"y":106,"width":71,"height":9}},{"id":"da1234da-d1fd-48e2-bd31-9dabcc5174a9","block_type":"box","text":"AccuTech Systems Corporation","page_number":149,"box":{"x":68,"y":127,"width":219,"height":11}},{"id":"e264fd65-e9e3-426a-97d8-aac391561a1e","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":149,"box":{"x":68,"y":147,"width":164,"height":10}},{"id":"6e5f36e5-d9b7-4fd0-ba73-55e9e71dd134","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":149,"box":{"x":68,"y":167,"width":207,"height":11}},{"id":"646617ca-cb69-4dea-aa06-d21e2c378e18","block_type":"box","text":"Advisor Group, 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The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":153,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"43c243ee-8280-463b-8390-f2320d411f96","block_type":"box","text":"time of purchase, depending in par t on the market value of the securities held by the Fund at such time. Except for","page_number":153,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"cb4e9328-c209-4d9f-9326-feb0bf32cb54","block_type":"box","text":"any CDSC that may be applicable, there will be no redemption charge if your redemption request is sent directly to","page_number":153,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"2bb207d2-b12d-4678-9bee-09dc74ed58a4","block_type":"box","text":"the Transfer Agent. If you are liquidating your holdings you will receive all dividends reinvested through the date of","page_number":153,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"af95f1bf-9e6c-4c4a-8f0b-d302192581ab","block_type":"box","text":"redemption.","page_number":153,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"2f835ade-118b-41b1-96da-7afe29c5b3e7","block_type":"box","text":"The right to redeem shares may be suspended or payment upon redemption may be delayed for more than seven","page_number":153,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"17250c1b-888c-462a-a446-09d390a63183","block_type":"box","text":"days only (i) for any period during which trading on the NYSE is restricted as determined by the Commission or during","page_number":153,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"1c304858-88d7-4a00-be58-ad705b3aa568","block_type":"box","text":"which the NYSE is closed (other than customary weekend and holiday closings), (ii) for any period during which an","page_number":153,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"f6bf3c77-5da3-4535-b438-e4650ee86581","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":153,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"340656f0-17ef-4053-b617-2fe48288742b","block_type":"box","text":"determination of the NAV of a Fund is not reasonably practicable, or (iii) for such other periods as the Commission","page_number":153,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"7e163358-05ba-4349-95bb-b37102686613","block_type":"box","text":"may by order permit for the protection of shareholders of the Fund. (A Fund may also suspend or postpone the","page_number":153,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"a44b59b6-a139-4e79-aa98-1d2b4341a2e4","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":153,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"1d940eda-72eb-4d33-90fe-ede5ff566392","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":153,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"b7284941-6175-4e96-ae56-918e857ae5b8","block_type":"box","text":"credit with a syndicate of banks that is intended to provide the Fund with a temporary source of cash to be used to","page_number":153,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"8731e983-d2f3-42a0-a884-6dde888e42cd","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":153,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"eb7a5b12-d7d8-4cad-b5ab-885d4ba5b01a","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of the failure","page_number":153,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"7d08cd32-498c-4b7e-807d-ff12765ba630","block_type":"box","text":"of a shareholder to make full payment for shares purchased by the shareholder or to collect any charge relating to a","page_number":153,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"f78f1961-f874-4f3b-8628-ebf787cbca5c","block_type":"box","text":"transaction effected for the benefit of a shareholder. Each Fund reserves the express right to redeem shares of the","page_number":153,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"d7c5dfa2-a2bf-48d8-8285-e90965e088df","block_type":"box","text":"Fund involuntarily at any time if the Fund’s Board of Directors determines, in its sole discretion, that failure to do so","page_number":153,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"1890fa35-7a52-4e08-91f8-a99e90503087","block_type":"box","text":"may have adverse consequences to the holders of shares in the Fund. Upon such redemption the holders of shares","page_number":153,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"12b52a32-7f97-4bf9-a7f3-7c4d5220d28c","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":153,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"a14de53e-0a2d-49a9-8d49-41066dcedbc8","block_type":"box","text":"Redemption","page_number":153,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"f0791437-19cc-4675-b0eb-42777796a4b8","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":153,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"39cf6270-de02-424b-88c3-5be7b70c7c93","block_type":"box","text":"Redeem by Telephone:","page_number":153,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"109acf15-0633-447c-96db-1b1f7924eab9","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":153,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"41dec85d-15c0-4eda-8f53-c4064f40ba0e","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":153,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"f68062d0-96d6-42c8-a0ce-326e8aa2bb9a","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":153,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"26cceabb-37d8-4655-a4da-c15b1ff90232","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":153,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"9620ca65-9013-4989-80e0-b262c0a9db21","block_type":"box","text":"verified banking information on file; or (ii) the proceeds are not paid to the record owner at the record address, must","page_number":153,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"ab5d0f92-f069-46be-8b7c-c68b33a74c0e","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":153,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"2afed4c3-9ed3-441f-ae80-80a289ce7dbd","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":153,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"e8c747bf-3227-4098-8531-74f0221ac08e","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":153,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"146d5633-4a8a-4bd4-b6db-fa9c20df65ef","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":153,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"6356a5a0-4aaa-4047-913b-9d11a85c0ada","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":153,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"144a6840-3292-47eb-8d4c-6c066be792aa","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":153,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"6f2696e5-a55a-4f70-8e47-58c9a8cad61d","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":153,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"3d7c724d-e358-45e3-8e2a-62c998eb8180","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":153,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"4904451a-d9a6-4b0a-b32f-88c538f0bd69","block_type":"box","text":"will not be accepted. A notary public seal will not be acceptable. Generally, a properly signed written request with any","page_number":153,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"7772df99-3cb7-4851-b47a-b7cde7bf737f","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":153,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"a7c175ec-81ea-42f3-9a5d-e56e69e164cd","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":153,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"050cbac2-7637-42ce-97cf-ce23d7b7dfcb","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":153,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"287ac54e-431d-49be-83b9-58de38f6ca2e","block_type":"box","text":"If you make a redemption request before a Fund has collected payment for the purchase of shares, the Fund","page_number":153,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"1a3fdb47-f6d0-4490-b62d-9142a91933fe","block_type":"box","text":"may delay mailing your proceeds. This delay will usually not exceed ten days. A Fund, its Administrators and the","page_number":153,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"5afef67b-8820-4eb8-a0b7-bde9a9e0ea74","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":153,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"fa693cef-4f3c-4b09-a8a9-6897aeb7f28f","block_type":"box","text":"Telephone redemption requests will not be honored if: (i) the accountholder is deceased, (ii) the proceeds are to be","page_number":153,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"c71555f7-448e-44c7-97c5-612592497534","block_type":"box","text":"sent to someone other than the shareholder of record, (iii) a Fund does not have verified information on file, (iv) the","page_number":153,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"e5b17412-bc2c-47d6-b046-fd056b8edaef","block_type":"box","text":"request is by an individual other than the accountholder of record, (v) the account is held by joint tenants who are","page_number":153,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"44e4ef4d-047a-4e24-a01c-e78cc0b0cd03","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":153,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"b0241a98-446d-447b-9b93-de002473eeb5","block_type":"box","text":"on the account, or (vii) to protect against fraud, if the caller is unable to provide the account number, the name and","page_number":153,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"7c738e6b-3597-4dc0-9c8c-27bbbbb9f6b5","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":153,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"c1dc9602-e418-4e74-8139-1b8d686a94ca","block_type":"box","text":"service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions that","page_number":153,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"778f9d14-558d-4c0a-bdfd-5fd47aa95138","block_type":"box","text":"II-115","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6821a8b1-f639-4af2-953d-cf8bb29ce854","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":153,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"4a881466-e0e6-4c8a-b67f-9a1fd229e8cb","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":154,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"c37c0a13-23c5-42ed-8022-2e42dfbb9c43","block_type":"box","text":"honored, signature approval from all shareholders of record on the account must be obtained. The Fund may refuse a","page_number":154,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"cc8dcc9e-a484-4606-b960-f44eda910c22","block_type":"box","text":"telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market","page_number":154,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"a690a2d6-3907-4da1-b22a-318164bd697d","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":154,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"7f72f792-450f-485b-9adc-4c2e3016b597","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day will be","page_number":154,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"8cc0553b-26f4-44cd-aa45-f2197223a675","block_type":"box","text":"priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern time) on a business","page_number":154,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"0ce97229-ce7f-45fd-bc3c-9989d80f38f1","block_type":"box","text":"day, payment for redeemed Institutional Shares will normally be wired in Federal Funds on the next business day. If","page_number":154,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"2fa79a60-ecf0-4957-b80c-f12eb2ff91d9","block_type":"box","text":"the Federal Reserve Bank of Philadelphia is not open on the business day following receipt of the redemption order,","page_number":154,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"f59ba26a-0ec6-42b6-9d79-1ac538130f2b","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":154,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"d3abfb9c-a685-4591-8be4-207155a41585","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":154,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"8881a8bd-e1ac-413a-9405-c876d82855ab","block_type":"box","text":"Redeem by VRU:","page_number":154,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"2d01cf60-9bbb-45d4-9df3-9a9a768be234","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":154,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"8cb8baff-9d4d-4b3d-8bb1-c070be7050aa","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":154,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"0417aa09-c970-447f-99a0-974b18d6c801","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":154,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"b9a7bec6-f2e8-416a-bdc9-a1e3782f03a7","block_type":"box","text":"Redeem by Internet:","page_number":154,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"2bf5e113-cbea-4696-beca-5985a1eb835d","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":154,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"19f09cf4-e230-4d44-8c77-5ef2437b8af2","block_type":"box","text":"BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent via check, ACH or wire to","page_number":154,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"d510c084-d8ac-49e3-b344-1fa30c893287","block_type":"box","text":"the bank account of record. Payment for shares redeemed by Internet may be made for non-retirement accounts up","page_number":154,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"defe380f-066e-4f47-b94b-eabd88ab9444","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":154,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"88761e9e-91cc-4b86-91ca-ae336c1fa5e2","block_type":"box","text":"institutional investors.","page_number":154,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"88c35945-cf8b-45e3-8016-7f5c838b2794","block_type":"box","text":"Redeem in Writing:","page_number":154,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"805e65e2-c38a-4b34-828d-9bee963e36bb","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":154,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"8564e28e-d0bf-4782-88b1-c0d84901d8e8","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":154,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"ed91adc6-be06-4ffb-8e23-046fb002855e","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":154,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"f147a57f-dad6-4a69-9d28-e67bf47a9cc9","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":154,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"3318a8af-769c-480d-902f-db576763c578","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":154,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"cf0b2089-0163-4980-9a88-ec3737bfd064","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":154,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"b09de712-8651-4f1b-ac46-58886e979e51","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":154,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"90ddadc6-3365-4296-9c33-6f9672604329","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":154,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"65703102-cb99-4a0d-9e18-f1c2475ae7fe","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":154,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"a8be43e5-1411-45d6-bf08-e447c910e030","block_type":"box","text":"or wire to the bank account of record.","page_number":154,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"9828361e-89e9-4f01-b36b-861368777192","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":154,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"05091686-a052-4ba1-98b2-606e2a7c430e","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":154,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"eedbf31d-92cf-49e9-9799-578ca81a8005","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":154,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"47393863-9cde-444b-bf22-fa169f3443de","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":154,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"41d9b764-fc9d-4618-aa97-8bb05e487b7a","block_type":"box","text":"of receipt of the proper notice of redemption. A Fund may delay the mailing of a redemption check until good payment","page_number":154,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"da591f80-0496-4935-a431-ea1d0d28e001","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":154,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"8a3943e6-306e-4e82-a24e-3bdcac15e7a6","block_type":"box","text":"shares, which delay will usually not exceed 10 days. If your account is held directly with the Transfer Agent and","page_number":154,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"c3684d73-893a-4017-af7b-2aa42b86e152","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":154,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"c6c32ac5-484b-42bf-85e1-b0fa3648363f","block_type":"box","text":"redeemed by the Fund.","page_number":154,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"87a6bfdd-2994-403b-8ff7-ab21348ca604","block_type":"box","text":"Note on Low Balance Accounts.","page_number":154,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"271ec5f4-027d-435e-a5ad-8179d57058ad","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":154,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"55131f38-99fd-42b0-a905-9cead749291d","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":154,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"92f47ede-bb1b-49a1-9013-0e0cf2db7831","block_type":"box","text":"Minimum”), and may redeem the shares in your account if the NAV of those shares in your account falls below $500","page_number":154,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"af4b4415-8ecb-4066-a5dd-6240acc9376f","block_type":"box","text":"for any reason, including market fluctuation.","page_number":154,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"5fe04469-c8a5-46f5-b656-8852b8e08447","block_type":"box","text":"You will be notified that the value of your account is less than the Fund Minimum before the Fund makes any","page_number":154,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"1e698c4c-fe0a-4033-a97a-e6823ef6a4b2","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":154,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"353079a9-f29c-4132-85c5-80d8c1054c2c","block_type":"box","text":"investment in order to bring the value of your account to at least $500 before the Fund makes an involuntary","page_number":154,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"c00f4433-8aca-41f2-bb4e-d507cb5a2cf1","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":154,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"2ffbf874-f45f-4f5f-88c4-103c4ce97bc0","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":154,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"8b9e4f5a-5f23-4b85-8e80-da3925413bb5","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":154,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"a79b3172-6b85-48ca-8416-fe0f12d0b95f","block_type":"box","text":"Redemptions in Kind:","page_number":154,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"f6f34945-c2a0-4e95-b066-89efee2960b7","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":154,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"ab517ed3-e1b2-4cc8-8db1-065a51ed927f","block_type":"box","text":"whole or in par t by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":154,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"20a86672-1c89-43a1-b1ec-2b78d96308f5","block_type":"box","text":"Fund’s NAV, except that each Fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1%","page_number":154,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"a603dd57-2754-47d2-99de-bf5e467990d9","block_type":"box","text":"of the Fund’s NAV during any 90-day period for any one shareholder. Redemptions in excess of those amounts will","page_number":154,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"9ba713fd-856f-4e6d-aaba-75709181d307","block_type":"box","text":"normally be paid in cash but may be paid wholly or par tly by a distribution in kind of securities.","page_number":154,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"0cecbb07-14c9-4073-8094-019f51f1deb8","block_type":"box","text":"II-116","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fef11984-7f29-49d6-a642-6b2b3128d0a3","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":154,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"3c754f63-4700-4b2f-bac3-cee4c23df6c7","block_type":"box","text":"The specific security or securities to be distributed will be determined by the Manager and could include a pro","page_number":155,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"2caac51b-b822-4559-8c8b-aeccd47b196f","block_type":"box","text":"rata representation of the Fund’s por tfolio or a non-pro-rata representation of the Fund’s por tfolio depending upon","page_number":155,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"74feabf5-6664-4543-a185-677f0558d14c","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":155,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"e462cda5-8f90-42f1-84f1-1fc002d9ca65","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":155,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"caa1d940-0620-49a2-b8f4-0bbc304e3e35","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":155,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"56f61d91-f414-463d-95f4-3c82562179c7","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":155,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"6cb53702-2ac0-4458-b7db-d6a13a0b7901","block_type":"box","text":"liquidity of the securities, and the tax basis of the securities. There is no assurance that BlackRock will select to","page_number":155,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"d55aa632-a499-4bc2-8273-6620f76ab70b","block_type":"box","text":"retain those securities that will per form the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":155,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"6e04897f-a238-4f99-b1e5-3d4d071a19d0","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of por tfolio holdings","page_number":155,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"0686403e-aa1f-4aed-b788-57224c1bb9ce","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":155,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"6d1ccb68-8d85-4cac-8a70-f2d8139a9f96","block_type":"box","text":"The Funds may effect redemptions in kind in an effor t to, among other considerations: (a) manage the por tfolio","page_number":155,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"6d8466a6-182c-4f66-9524-c12aefa70821","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":155,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"028de12e-a0cb-4a96-b975-eb2f47e918dd","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or por tfolio turnover. Redemptions in kind may","page_number":155,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"9432b6b0-9d1e-4833-bdc2-721d48e19368","block_type":"box","text":"reduce the need for the Fund to maintain shor t-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":155,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"d20b962f-4eb3-471c-9a47-6f32a134261f","block_type":"box","text":"for the Fund to sell its investments at inoppor tune times, and lower Fund capital gain recognition, all of which may be","page_number":155,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"66be1a4b-caf0-4725-a55c-b1f2061dce71","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":155,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"67ecf861-f6d7-4024-a9eb-d5b79ab16e9e","block_type":"box","text":"redemptions in kind can or will be effected when they would be beneficial to a Fund, and it may be impractical or","page_number":155,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"50c37055-981c-47d8-85a1-6726c2f4dc7e","block_type":"box","text":"impossible to effect redemptions in kind with many or substantially all of the Fund’s shareholders because of, among","page_number":155,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"234085bd-3dc4-419a-8425-4a3fb063d78e","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":155,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"9254021e-6d6d-4f32-b8be-573c893572fe","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s por tfolio, or a","page_number":155,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"d951fb1c-c193-4e56-9f04-a5f9ae2c6e17","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":155,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"fcd759eb-3d49-4722-aa6f-dd77ca27536a","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":155,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"92506b74-0b1b-4f9c-a8ba-4662b6d1bba4","block_type":"box","text":"kind rather than in cash. A Fund’s ability to pay these redemption proceeds in kind relieves the Fund of the need of","page_number":155,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"d92dd473-ec18-4d56-8959-6ba25f957e6d","block_type":"box","text":"the Fund to sell the securities that are distributed in kind and incur brokerage and other transaction costs associated","page_number":155,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"b4dbce45-21a8-4ead-bc20-113e932a9239","block_type":"box","text":"with such sale, and may have the effect of reducing the amount of taxable gains the Fund would otherwise be","page_number":155,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"c102440d-fa88-429a-9cf0-1a854c9829db","block_type":"box","text":"required to distribute to shareholders. A Fund’s ability to engage in such transactions is subject to, among other","page_number":155,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"a99c9af6-9530-4e1b-aaea-bd5fbb91cab6","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":155,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"038275a4-8698-4371-bea5-2fc7c07272f6","block_type":"box","text":"to transact in kind, and there is no assurance that the Fund can or will effect any redemptions in kind. Financial","page_number":155,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"4178d0a6-8d59-4ae4-9152-b3da42434aaf","block_type":"box","text":"institutions that par ticipate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":155,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"94bd4967-f20e-4ac2-b052-1980650eb1bb","block_type":"box","text":"doing so. The Funds’ shor t-term trading policy shall not apply to the transactions described in this sub-section.","page_number":155,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"797527fe-9572-437d-830d-225d0f870a3c","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to conver t them to cash, you may pay taxes","page_number":155,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"f88d5335-e720-4ccc-87f1-10e991b9ea3b","block_type":"box","text":"and brokerage and other transaction costs to dispose of the securities. You may also receive less for the securities","page_number":155,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"0043822c-9b20-440f-99d2-3b601b7b11dc","block_type":"box","text":"than the price at which they were valued for purposes of effecting the redemption. There may also be a risk that","page_number":155,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"eb6f2e13-48bd-4372-bc6e-cd473b38078b","block_type":"box","text":"redemption in kind activity could negatively impact the market value of the securities distributed in kind and, in turn,","page_number":155,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"427562b5-566f-458c-a9c9-deb12d18586a","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":155,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"be5ac76b-e9ec-4f9c-86d9-8e3be58e5197","block_type":"box","text":"Repurchase","page_number":155,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"7af0a9ac-a959-4294-baa6-4c9df4f98bea","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":155,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"4b3a7a56-dc24-4152-9b69-e45f0107ced1","block_type":"box","text":"priced at the NAV of the Fund next determined after receipt of the repurchase order by a Selling Dealer that has been","page_number":155,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"f464b406-811e-43e1-aa3f-04a05c01db23","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":155,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"e9928f3c-99f3-440d-9f3a-30cd93bf075a","block_type":"box","text":"prior to the close of business on the NYSE (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":155,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"ac0bad9b-85f7-4ba2-8a25-541f2917ab74","block_type":"box","text":"order is placed, which includes orders received after the close of business on the previous day, the repurchase price","page_number":155,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"575fdd46-0464-4f1f-a9ae-272bca3a637b","block_type":"box","text":"is the NAV determined as of the close of business on the NYSE on that day. If the orders for repurchase are not","page_number":155,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"53caebcb-37d8-4da2-b95a-f6276b873195","block_type":"box","text":"received by the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":155,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"a0ca0737-6c06-4f6a-a98b-88ac93b87e66","block_type":"box","text":"next business day.","page_number":155,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"4ee646af-2b15-4876-ba8d-8e3dfa701851","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":155,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"6cfbafe5-debe-4699-8732-82fd78ea0fc9","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":155,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"faead1de-7ab8-4025-b68e-c405c5bd4e56","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":155,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"65eceff0-e238-4801-a01c-6582514c3936","block_type":"box","text":"impose a transaction charge for transmitting the notice of repurchase to the Fund. Each Fund reserves the right to","page_number":155,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"2e46301c-1d3a-4ecf-bb42-4185dac507e4","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":155,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"8c4e90db-da0d-4fb7-b79b-72773859a1db","block_type":"box","text":"redeem shares as set out above.","page_number":155,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"25637cc5-c9d9-4125-8c36-6f766ca59b62","block_type":"box","text":"II-117","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bb3ac85e-af30-47fd-a986-c44a68f62f52","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":155,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"993fdf0b-3e04-4956-bfe8-4596fe9a0fc1","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":156,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"2f45daf1-32c7-4470-b670-f39c5da1df78","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":156,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"67715d28-67f3-4eb4-8da4-c0ea1556ea1b","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":156,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"c6483752-cacd-4df9-bac8-8b96a641c5f2","block_type":"box","text":"Shares of the same or another BlackRock fund without paying a front-end sales charge. This right may be exercised","page_number":156,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"f4c428a9-ffc6-496f-a4c1-13ea80e9c45e","block_type":"box","text":"within 90 days of the redemption, provided that the Investor A or Investor P Shares, as applicable, of that fund is","page_number":156,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"07b9ca78-b6e9-4f3f-a753-a55f2c752ea7","block_type":"box","text":"currently open to new investors or the shareholder has a current account in that closed fund. Shares will be","page_number":156,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"f1a54e94-b6f3-4a0c-9fab-965e47205a6f","block_type":"box","text":"purchased at the NAV calculated at the close of trading on the day the request is received in good order. To exercise","page_number":156,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"d3f143eb-ffff-4bda-aa58-8a110c5609f4","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":156,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"dc865f4b-5682-4a44-9543-8bf71c570be7","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":156,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"06e81206-1567-4fc5-9cff-713dc23351bf","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":156,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"c7ee49e6-15a4-428a-95dd-7d858fe1e213","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":156,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"96cbb66e-dc73-453f-940e-b8509c7a0ae3","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":156,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"6427ee58-011e-4c76-8318-7e0ab7fa01cb","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":156,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"8958d148-c5bb-4d1c-ba21-6fd1c81ad6c3","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":156,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"6dca399b-eefb-4fe8-898b-653a297cb82c","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":156,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"d9652898-708d-49cc-b1ce-48006287cf35","block_type":"box","text":"Investment Account","page_number":156,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"06d74b14-c0c4-425f-baf0-2cfe8b95a1b3","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":156,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"6a703727-91e6-4b85-b699-8e1a8e0b6477","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":156,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"8c29a6d7-a33b-4932-8cd2-1e9e1a5cb243","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":156,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"95c1c86e-42b9-4677-a48a-702d6d23e44b","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":156,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"9407f29b-5911-4c74-973c-cce4aaa2c9bb","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":156,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"b7d2c40c-a10b-4e8e-98d9-32f7b972d117","block_type":"box","text":"the Transfer Agent you may make additions to it at any time by mailing a check directly to the Transfer Agent. Each","page_number":156,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"f45f7e77-87d0-44ee-aca1-2ca48eae3954","block_type":"box","text":"Fund limits purchases by personal check to $500,000 per trade. You may also maintain an account through a","page_number":156,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"a85b2c2c-4d43-49aa-8265-267b7665e67a","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":156,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"8e8c4a2a-e037-4c86-aba5-a00583f5d156","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":156,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"dbc2a28e-c9e2-4cb4-a736-6743e7edde5d","block_type":"box","text":"automatically at the Transfer Agent.","page_number":156,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"bb2cf1d2-2635-4710-8bc8-9be4d1ae1fb3","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":156,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"6485be20-cdf5-4adb-b1ec-dee58ec9df6d","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":156,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"4ccbe27a-ff2b-4fd4-aedc-298f8aea014d","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":156,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"97f31be4-b2de-4152-9cfc-2f0fbed899c8","block_type":"box","text":"coordinated by the new firm. If you wish to transfer your shares to a securities dealer or other financial intermediary","page_number":156,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"5c6fef50-181a-4b65-afb5-f3a6f6e006eb","block_type":"box","text":"that has not entered into an agreement with the Distributor, you must either (i) redeem your shares, paying any","page_number":156,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"72dac094-7aa6-42a8-bbf8-3017c98f72fe","block_type":"box","text":"applicable CDSC or (ii) continue to maintain an Investment Account at the Transfer Agent for those shares. You also","page_number":156,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"7b6e1391-39a0-4ccf-8e48-c192516e1bd6","block_type":"box","text":"may request that the new securities dealer or other financial intermediary maintain the shares in an account at the","page_number":156,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"f0e2e0b5-07e4-446b-abfe-fb32cb56caa5","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":156,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"3e204439-afea-46da-8d95-5224e398ceac","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":156,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"bf298f73-09de-4d4a-af5a-c0f23a0b6adf","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":156,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"13da08fb-ac2d-4b17-8dee-3971a0a28ad5","block_type":"box","text":"not be issued physically. Shares are maintained by each Fund on its register maintained by the Transfer Agent and","page_number":156,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"b6703506-20c7-4561-ae94-845efa60d29f","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":156,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"df6c229e-766a-4ed5-acc4-97b6daba8965","block_type":"box","text":"issued.","page_number":156,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"6bc41662-e049-4c57-8edd-d2677224be00","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":156,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"d2a98e9a-45f1-413e-88aa-dc966b5612f7","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":156,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"b4425579-ef96-4300-acb2-63537b369fb9","block_type":"box","text":"that if the new firm will not take delivery of shares of the Fund, you must either redeem the shares (paying any","page_number":156,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"d70263bd-74ac-458f-8744-52804e18e361","block_type":"box","text":"applicable CDSC) so that the cash proceeds can be transferred to the account at the new firm, or you must continue","page_number":156,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"adb13cc6-7d25-45f3-8219-ff2a6d8fb5f5","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":156,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"7e1b6296-923a-4830-98fe-9bbaf76fbfe4","block_type":"box","text":"Exchange Privilege","page_number":156,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"7f2ef054-76c2-4358-97e0-4650be1da31a","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G Shares of","page_number":156,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"d850fd0f-2263-43bb-a418-34f8d0c10ca1","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":156,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"4eb5fe5b-1f6d-48eb-9235-008d81faf902","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":156,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"ac94c1ba-b1dd-4179-9750-f76417e35d61","block_type":"box","text":"$1,000 if you already have an account in the Fund into which you are exchanging. You may only exchange into a","page_number":156,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"6fa02b91-2c53-4c39-aa83-77dde0414690","block_type":"box","text":"share class and a Fund that are open to new investors or in which you have a current account if the class or fund is","page_number":156,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"c8cf55e1-d6b8-4722-b2e1-eb12cc0b05c3","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":156,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"fc1f8652-21b2-478d-b165-3e0e4f308fcc","block_type":"box","text":"II-118","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b3518410-4dc4-4d56-b4fb-6438f412c9ca","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":156,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6c9d15c7-ef9b-43ba-8eb1-5c37a78bd1e6","block_type":"box","text":"into which you wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":157,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"bf7d86e5-2bf3-4707-8f43-f427bd51c989","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":157,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"d1951c96-3690-408d-9e79-d9ecd43633d2","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":157,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"9aaef643-717a-4654-b10f-8c575730669f","block_type":"box","text":"Institutional Shares","page_number":157,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"58fb9056-5625-4b98-862c-0e18686a7b37","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":157,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"5d12a3bc-7d9c-47d5-b7de-13efbeb916ce","block_type":"box","text":"Investor A Shares of other Funds to the extent such shares are offered by your financial intermediary. Investor P","page_number":157,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"cda32f22-232b-4bb3-96c1-c4d1a87c10d6","block_type":"box","text":"Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are offered by your financial","page_number":157,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"4c783cfb-aa83-4801-ba74-2627bee120c8","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":157,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"8c4d7749-9a06-4e7d-91c4-30fb771e75e9","block_type":"box","text":"for Class G Shares of other Funds.","page_number":157,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"5d600a77-e393-4ed7-81c0-63e0e8e8bfaf","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":157,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"23996132-c764-4f8f-9a29-f5bda9ad6694","block_type":"box","text":"market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of Investor A or Investor A1","page_number":157,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"11d6bfd5-85d3-4470-b204-409e1d953198","block_type":"box","text":"Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares of a second fund, or for shares of a","page_number":157,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"6bb19dcf-e82f-4f95-a679-88a817dc2d20","block_type":"box","text":"money market fund (“new Investor A Shares”) are effected on the basis of relative NAV per share. Exchanges of","page_number":157,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"1700773a-c19e-4291-96ab-4d5997543689","block_type":"box","text":"Investor P Shares outstanding for Investor P Shares of a second fund are effected on the basis of relative NAV per","page_number":157,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"fe2beefc-4bc4-4b83-9c65-ebc2e8af1ecb","block_type":"box","text":"share. Exchanges of Class K Shares outstanding for Class K Shares of a second fund, or for shares of a money","page_number":157,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"d34841e5-0dfe-475e-b3a3-2f243d9b307b","block_type":"box","text":"market fund are effected on the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class","page_number":157,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"5311d3c2-df8d-4e55-8522-749ff25b4617","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":157,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"6d171851-09e7-4f26-8366-30c753a8c8f4","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":157,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"6e666d93-afb2-40eb-9cab-8162e58c02b8","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":157,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"d13424db-e806-44ca-a2c7-3ce94c39fa58","block_type":"box","text":"Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new Investor C Shares”) or","page_number":157,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"86addcc3-674a-4c34-9951-057cb3337e48","block_type":"box","text":"for shares of a money market fund (“new money market fund Shares”) on the basis of relative NAV per share, without","page_number":157,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"ab0a40cc-5c96-498e-bf05-30562a6f9618","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":157,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"34d39c61-d1e3-4f50-9d92-dffed48e18de","block_type":"box","text":"upon redemption of new Investor C Shares or new money market fund Shares, as applicable, the time you held both","page_number":157,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"bd30c78d-f327-4cb2-b057-39a9974352f2","block_type":"box","text":"the exchanged Investor C Shares and the new Investor C Shares or new money market fund Shares will count","page_number":157,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"2c812b0b-907f-42fd-bb10-c0e4ad958e9b","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":157,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"eff1b8d7-1aa9-441e-8ca4-5f60127644c5","block_type":"box","text":"Exchanges of Service Shares.","page_number":157,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"e0f2067a-9491-4c81-af47-33e25167e2eb","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":157,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"b8d57f30-f7e3-456a-b668-710ecfaa7fa0","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":157,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"9ede7517-bb5f-4477-ba96-ed385ce8fc4d","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":157,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"4a8a759d-1486-4cd5-98ca-b204c69bbc73","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":157,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"a76c9a72-2ad3-4137-8c27-91b2321890a0","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":157,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"642f96df-ded8-4e9f-8fb5-8fb45509df31","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":157,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"4b43b7f3-fb89-43f4-87ea-a526a6b55f85","block_type":"box","text":"classes of shares: exchanges of Investor A, Investor A1 and Institutional Shares of a Fund will receive Investor A","page_number":157,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"c2999070-4ca4-49c8-b2db-ca15c5e12a63","block_type":"box","text":"Shares of Summit and exchanges of Investor C Shares of a Fund will receive Investor C Shares of Summit. You may","page_number":157,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"77866aec-dc6e-45bb-b5c5-e2d1f0f8cdad","block_type":"box","text":"exchange Investor A Shares of Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to","page_number":157,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"6f22883e-878b-4984-bc07-1aecc132ddaf","block_type":"box","text":"hold such shares. You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":157,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"be49b281-5054-49d2-982c-9235e18b47e7","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count toward","page_number":157,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"a7392a5a-50de-431d-9e39-fee7699f4532","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":157,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"52a07d83-54ec-4795-b9cd-67e71872b89a","block_type":"box","text":"subject to a distribution fee at an annual rate of 0.75% of average daily net assets of such Investor C Shares.","page_number":157,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"c6f1b8f4-8ffc-409e-901f-02026c43c285","block_type":"box","text":"Exchanges of Investor C Shares of a money market fund other than Summit for Investor C Shares of a Fund will be","page_number":157,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"b11cfadd-3b86-4f1e-8879-eb7bce3bc91d","block_type":"box","text":"exercised at NAV. However, a CDSC may be charged in connection with any subsequent redemption of the Investor C","page_number":157,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"ae8ea276-7d9e-4f98-892a-a6e0a71654e2","block_type":"box","text":"Shares of the Fund received in the exchange. In determining the holding period for calculating the CDSC payable on","page_number":157,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"a61c8a36-70ac-4305-943e-caa3d46c4df9","block_type":"box","text":"redemption of Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":157,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"f8da814d-f6d7-47d7-bf9a-96f8e3a5d233","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired through","page_number":157,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"d2079ebf-85df-4775-bbcc-875c2dd4f91b","block_type":"box","text":"exchange.","page_number":157,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"57b08531-529c-4d5f-8c9b-4b4b19b21469","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":157,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"91c1c463-a0f8-40d4-b323-84c376dfb520","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":157,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"255c8e9a-9b41-4163-93c8-44339a217a91","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":157,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"3951d5fe-a5a6-4981-9d21-b7a20a47f026","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":157,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"fd344b75-c8c3-46bf-8b00-0156195b2466","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":157,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"64e941a0-f6c8-452e-ae1b-078ed51e2f14","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":157,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"708a46aa-aea0-4df0-ad6f-d6a4e942b5a5","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":157,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"acb8b53c-16bb-447d-b8c1-1e9f2b25e78e","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":157,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"346a512f-51a3-499c-8614-ff193b1c9054","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":157,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"8ab1f34c-db09-41bd-9eeb-0456c1f4ea99","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":157,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"891f306b-f826-408b-89aa-39b3435f7a3b","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/o the","page_number":157,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"54af78cc-b01c-4693-8d94-53a4a3129ea8","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":157,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"fcf586ae-7b62-4e24-b13a-d49fd392a02d","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":157,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"824d9003-c343-4643-8d4b-9aa72d538b2d","block_type":"box","text":"Application that they do not wish to use this privilege. To add this feature to an existing account that previously did","page_number":157,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"7de011c3-49a8-4e88-8ad1-75102753e1cd","block_type":"box","text":"not provide this option, a Telephone Exchange Authorization Form must be filed with the Transfer Agent. This form is","page_number":157,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"82c434aa-1795-43a8-a271-8dc656d16e54","block_type":"box","text":"II-119","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"888b61b2-83cc-4543-888b-95b3c0ab92e7","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":157,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"07337387-f200-4059-8eba-fa56c4681402","block_type":"box","text":"available from the Transfer Agent. Once this election has been made, the shareholder may simply contact the Fund by","page_number":158,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"19f69d5d-88a8-48c2-8eb6-4d71960e4762","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":158,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"d6511fda-0d8b-43c6-a226-6207932c1d50","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":158,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"5cba3c16-84c0-449f-ad89-f75d648510f9","block_type":"box","text":"Transfer Agent in writing.","page_number":158,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"02e48081-e3ae-4ed9-a465-8a334ced44e0","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":158,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"575d0dde-2954-46cd-90bf-6574fcfd9b30","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":158,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"23e90bce-a6e0-434c-a69d-f40b1768a10d","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":158,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"881c3898-f73c-4a96-ba57-581cbf824f50","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":158,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"129075f2-3c0c-46c2-943a-31e513c48de6","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":158,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"8f74ea85-55d9-4bfb-8a38-476f3bdd880d","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":158,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"fa1ae9ec-b919-4cd6-ad3e-fb823b361d78","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":158,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"c79425e1-5929-414a-97fe-e726658347cd","block_type":"box","text":"must be legally available for sale in the state of the investor’s residence. For U.S. federal income tax purposes, a","page_number":158,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"9f0f4892-ce3b-4589-ac9a-50c466009428","block_type":"box","text":"share exchange is a taxable event and, accordingly, a capital gain or loss may be realized. Before making an","page_number":158,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"16eb0462-da1b-47de-a149-f43c822e1de2","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":158,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"8e56c75e-6697-4b18-a227-156af571e728","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":158,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"05048c48-8b9d-47b3-ba74-84b0c1661d0f","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":158,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"c62ba2c9-5c72-4818-b902-61b51433644f","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice will be","page_number":158,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"e00f61c7-675c-4144-8389-9a0527437f4f","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":158,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"8f790027-8bb8-4eab-a11b-668abbb5fa6f","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":158,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"517288d9-5b24-4dea-b7c7-de25c3b27cc3","block_type":"box","text":"amount or frequency, and to other restrictions that may be established from time to time to ensure that exchanges","page_number":158,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"3c2a4a21-aee8-4758-a534-0d1290ee7bf8","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":158,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"6fd34c8a-f692-4d56-8a50-6b2386bf0832","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":158,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"f066edef-74be-4272-814f-3530b38a69cf","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":158,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"6895a157-6ecc-4165-8d1b-8ccdbb3f8577","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":158,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"625c3d84-58fa-40e0-b5c4-3ee8f1c7470c","block_type":"box","text":"such procedures. By use of the exchange privilege, the investor authorizes the Fund’s Transfer Agent to act on","page_number":158,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"b595a8e5-a511-44ee-a808-eebdd8c908c5","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":158,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"5d577f83-8e90-41de-8ea3-5707c060d181","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":158,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"11e54798-5ca1-432c-ab86-7142d92d1483","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":158,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"ecba8142-1225-46a4-9061-0620d1d5271c","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":158,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"0171efcf-f830-4b2a-9b0d-c3140893ad7c","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":158,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"b500703d-26e4-4ab9-861f-2fe84efe4d97","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":158,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"88bcc090-701d-4310-8390-2186e2a99e2c","block_type":"box","text":"such offering from time to time. The exchange privilege is available only to U.S. shareholders in states where the","page_number":158,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"2a114d66-ecc7-42f2-904a-a78a4d162d7c","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":158,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"023a0bdd-177b-4550-8ac2-a789dc140e4e","block_type":"box","text":"may be distributed by the Distributor.","page_number":158,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"54903b63-aab3-44be-8b03-7de0c8380045","block_type":"box","text":"Participation in Fee-Based Programs","page_number":158,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"04d7bb0b-585a-4366-b4e1-c07b54fb1716","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":158,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"350885e1-ce20-4464-a6d4-043622e3350e","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":158,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"bfdba041-d9ad-48ac-9209-0a90224f0217","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":158,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"69fa8d0f-0aa2-4de2-909b-022eaa01a9f4","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":158,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"13f0e64d-d2d9-4f8e-a0da-8699a653267a","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":158,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"ade47f52-59e1-4a38-b9db-c7a2873295ea","block_type":"box","text":"if you choose to leave the fee-based program, you may have to redeem your shares held through the program and","page_number":158,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"158a0d0a-0710-4908-9dfc-f7037da123bf","block_type":"box","text":"purchase shares of another class, which may be subject to distribution and service fees. This may be a taxable event","page_number":158,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"5873686a-7efa-4ddd-94f5-7589aef1aa2e","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":158,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"c0a03aea-f91d-4905-a243-684cdf818e90","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":158,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"6a645fca-d704-461a-9e5b-f55c634625ad","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can be held in","page_number":158,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"0b1b494c-b566-465c-9df4-b9a99a68dd7e","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":158,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"65bd4d52-5b40-4889-8700-026dfaff8c7e","block_type":"box","text":"class was held in the program can be held after termination. Shares that have been held for less than specified","page_number":158,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"a693c79f-b36a-41fd-936b-adac49c6ed75","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":158,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"44ce5a81-6120-4e57-8464-ab0eaf7747bf","block_type":"box","text":"Institutional Shares in the program may be eligible to purchase additional shares of the respective share class of a","page_number":158,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"ab1f3b69-9e16-4e42-8b5b-2ee3dae82380","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":158,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"4ba1fd4a-4333-447e-b628-8745760df6ca","block_type":"box","text":"Institutional Shares are permitted only if you have an existing position at the time of purchase or are otherwise","page_number":158,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"ce28777a-8980-4073-87e3-6c9f495d2253","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":158,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"1c187d86-70ad-4e9b-8404-5d5c2ad553d8","block_type":"box","text":"II-120","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"51c40329-769c-4fc2-8215-6c6f0f5ebcfd","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":158,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"1db0f561-c763-449d-b2fc-0438e738f358","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":159,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"78b9e24a-f67c-462b-aff8-f6186f6bea48","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":159,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"881ac73c-634f-4e2d-9d7d-aa932370ddf7","block_type":"box","text":"intermediary’s policies and procedures, exchange the share class held in the program for another share class of the","page_number":159,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"dc483e37-14f8-401c-bb5d-8eb26121ef67","block_type":"box","text":"same fund, provided that the exchanged shares are not subject to a sales charge and the shareholder meets the","page_number":159,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"516dc08f-7842-4c20-87a3-78a0069475d3","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":159,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"3455fea6-6998-4808-9b96-e94790070bb3","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":159,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"c13a7604-c68b-48e2-b424-10899a35abe2","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":159,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"914dbf41-91f9-4161-a28c-b72ba5ded2ef","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":159,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"e458f463-55c2-4567-9ffc-a4a0133a6569","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":159,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"11e14edb-3914-40f8-ab03-c04ac0b8dcd6","block_type":"box","text":"information.","page_number":159,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"a8210c85-11a0-41ae-bfc9-d090bde935bd","block_type":"box","text":"Retirement and Education Savings Plans","page_number":159,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"7ae6235d-332d-49dd-878b-5353a01698de","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":159,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"910d1717-c347-4ca0-a9e0-95de3bbc5eaa","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":159,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"59beee37-f86f-4610-910f-72c395ecc711","block_type":"box","text":"the other mutual funds sponsored by the Manager or its affiliates as well as in other securities. There may be fees","page_number":159,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"84626c8e-dddb-467c-b023-818952107aeb","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":159,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"d550e86b-72d6-48f5-9f26-a9aa837afd18","block_type":"box","text":"your financial intermediary.","page_number":159,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"1e2eac03-005a-4c8e-a1b1-38ee52e166dc","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until distributed","page_number":159,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"3c9ed1b0-ef4f-4170-8e93-12cd4644c573","block_type":"box","text":"from the plans and, in the case of Roth IRAs and education savings plans, may be exempt from taxation when","page_number":159,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"ef347f31-6298-4e25-b8a4-accb0a1c0258","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":159,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"372fd718-1177-456b-876e-2a7a692be02a","block_type":"box","text":"specific tax laws relating to the plan and should consult their attorneys or tax advisors with respect to the","page_number":159,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"b246b2b2-046a-48f4-92eb-89f4db6b8246","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":159,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"858672fb-8dea-46da-929d-601ffa506fe1","block_type":"box","text":"Automatic Investment Plans","page_number":159,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"5981410e-179c-4c11-bf9f-49b9772554cd","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":159,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"f8a88ccf-711b-423f-99af-bf90b249c4d8","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":159,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"c5bed870-4e71-4238-b24c-5fbcfe254a28","block_type":"box","text":"®","page_number":159,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"848575e1-bfa0-4c85-a830-276546da9ae9","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":159,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"8161fd24-4cd2-4d8a-a12c-560b6737dd21","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":159,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"8947063c-af28-4142-bb40-38f662c5343e","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":159,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"9030cbaf-bdd8-4dcd-bad3-dbe686709f25","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":159,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"444e48e1-3bbd-4968-a0b1-e0d9843a0f75","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":159,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"53ab729b-8c45-46ec-b314-5864849d2d37","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if any, to","page_number":159,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"0ea0c072-403a-4fc8-8143-5bb51484c1b9","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":159,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"fa43a443-a3ec-40d3-bcba-cbe0d8ca15e1","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":159,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"4134cd7f-0958-49da-a7b8-6754164cd7f8","block_type":"box","text":"Fund’s prospectus. Such election, or any revocation thereof, must be made in writing to the Transfer Agent, and will","page_number":159,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"9b08c091-2d4c-49a2-88a3-3faaa5320f30","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":159,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"b4231253-9162-47d9-868d-fee9eeb49963","block_type":"box","text":"Systematic Withdrawal Plans","page_number":159,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"7ebad770-a245-416a-b4fb-d1a327f24053","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":159,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"994d4b4a-2ccd-43e4-94a8-bab9483f9370","block_type":"box","text":"Upon commencement of the SWP, the account must have a current value of $10,000 or more in a Fund.","page_number":159,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"41e5347a-739c-4d1d-a06c-349a154ba101","block_type":"box","text":"Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day","page_number":159,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"0078d1d7-e34f-48f5-8c4e-d04c4c016fcf","block_type":"box","text":"for the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such","page_number":159,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"5cca6652-d462-451e-925f-662041b9e1e6","block_type":"box","text":"day is not a business day, on the prior business day and are paid promptly thereafter. An investor may utilize the SWP","page_number":159,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"fe9c2a0b-9c1a-4818-af2c-ee69b9d0b115","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":159,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"e8b140e4-7cc0-45f7-a715-dae8b4e84081","block_type":"box","text":"www.blackrock.com.","page_number":159,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"59bf2606-8930-49d6-9fd0-48a1233cdd19","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":159,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"e09104ab-ebfe-4525-b80a-d4c9931799a8","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":159,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"55f5e8d9-22b3-4419-8276-72fe73c1ba9b","block_type":"box","text":"Shareholders may change or cancel the SWP at any time, upon written notice to the Fund, or by calling the Fund at","page_number":159,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"4446f874-b427-4f2a-bc4b-edc0120d8c42","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":159,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"04809a6e-0e94-4ddb-9577-be69f49407b9","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":159,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"aa364a1f-cadc-40e5-a122-bb7b0af7a8c4","block_type":"box","text":"CDSC will be assessed on redemptions of Investor C Shares made through the SWP that do not exceed 12% of the","page_number":159,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"3a1bd7d0-852a-4b7b-a4eb-0ae9c0ba590d","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":159,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"3894282e-9b75-4d21-ab80-f5970ad60fe8","block_type":"box","text":"II-121","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"01b0247b-49b9-432c-877a-34874470ce7a","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":159,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6d79b179-719a-4d99-89a8-25c9f0acbaa2","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":160,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"50f598dc-f99b-4b5c-83fc-3461a5f8fc91","block_type":"box","text":"annually), respectively, of an account’s NAV on the redemption date. SWP redemptions of Investor C Shares in excess","page_number":160,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"c997fa9d-1895-418b-a4b1-19e0be165634","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":160,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"034c59ad-2108-42e6-b22b-9152a68329ae","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":160,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"624f6bb2-b3f6-49ba-bdcf-ac469ed3509a","block_type":"box","text":"to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,” as applicable, in the Fund’s","page_number":160,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"43ac0049-cd1c-44ae-9087-c998ca79d7a3","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":160,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"2383774e-c8d1-4040-9d44-3102c9ac003a","block_type":"box","text":"Dividend Allocation Plan","page_number":160,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"e9bf157e-9904-43c3-9f9f-2080caced614","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":160,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"068c3e8f-be77-422c-bc84-6e98023ed9a1","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":160,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"604f72be-dbbe-4a34-bbbb-a85814169137","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":160,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"8cdc372f-9bc8-4f72-a24e-329b0e7d8c27","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":160,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"ec45001e-aa55-4841-af4d-cd325cceee56","block_type":"box","text":"PRICING OF SHARES","page_number":160,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"b34a52b8-2c61-4992-8de6-b205f56a38be","block_type":"box","text":"Determination of Net Asset Value","page_number":160,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"1fb804de-324d-4fbd-a7f4-5b7c5726c02c","block_type":"box","text":"Valuation of Shares.","page_number":160,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"3d6cb5f1-1b86-45f2-b53b-022153e6a1bd","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":160,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"9abf9408-10f6-409b-b440-0c77295434f3","block_type":"box","text":"regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day the NYSE is open.","page_number":160,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"07452924-a6dd-4e9e-90b8-6d5a01292c09","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":160,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"cd1aaa92-9f9e-462e-9702-698bb8edbaa4","block_type":"box","text":"Equity Investments.","page_number":160,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"24b7e1ac-0f17-4dd1-8d82-956c30fbc56f","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":160,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"6b7b1fb6-1a34-4c20-aded-8277f8dc12fc","block_type":"box","text":"e.g.","page_number":160,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"92e48c00-e519-4d64-88e7-f7011b6df1df","block_type":"box","text":", NYSE), on separate","page_number":160,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"439ba99f-8b4c-4ae0-9ea0-107e4002baff","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":160,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"6974e8f7-a14f-4629-b544-82ab3fe23969","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":160,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"69369e8b-4373-42f6-9e95-e8414a68306b","block_type":"box","text":"generally at the Exchange closing price or if an Exchange closing price is not available, the last traded price on that","page_number":160,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"32ac5e05-f532-4d1f-b087-e6db68c79013","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":160,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"97ac37f6-3838-4957-b4d0-99bade3f824e","block_type":"box","text":"other means of determining current market value may be used. If an equity security is traded on more than one","page_number":160,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"ef84ec15-5545-49b6-adbd-67ed24cddcbc","block_type":"box","text":"Exchange, the current market value of the security where it is primarily traded generally will be used. In the event that","page_number":160,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"e2ec29af-8c8f-4553-94d7-8e102354be0e","block_type":"box","text":"there are no sales involving an equity security held by a Fund on a day on which the Fund values such security, the","page_number":160,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"37eedbb2-4ab2-407a-9a16-8bd7e7babe11","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":160,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"afd3f050-a697-49ab-8ca1-40f98ea7788e","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":160,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"108d31c3-fcac-4f7b-9848-c9d61214fddb","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":160,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"0b23f11d-5e5a-4ae1-91b0-03c247a4381b","block_type":"box","text":"values such security, the prior day’s price will be used, unless BlackRock determines that such prior day’s price no","page_number":160,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"960a5fca-aa04-4cdb-baea-91746c3e1faf","block_type":"box","text":"longer reflects the fair value of the security, in which case such asset would be treated as a Fair Value Asset (as","page_number":160,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"90148409-8000-4389-ba2a-c8853acf7944","block_type":"box","text":"defined below).","page_number":160,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"135e6e40-a562-4cac-955c-5e7ff62785d4","block_type":"box","text":"Fixed-Income Investments.","page_number":160,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"b36e4b33-2fda-47fd-aa6c-4a3995b1705d","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":160,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"b73ff324-6405-4e45-bc7d-3be842b86943","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":160,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"5cc7d171-1ba1-447b-8428-6207d344cdf8","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":160,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"9595d875-037b-4587-b47f-9c1b4857a4d3","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":160,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"28979f4f-1eea-4b86-832c-a9a197d959df","block_type":"box","text":"e.g.","page_number":160,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"e68ac62d-53ac-4e72-b6dc-5b5c954f2653","block_type":"box","text":", recent representative bids and offers), credit","page_number":160,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"241e65c3-6130-4bbe-9f4d-e81d16bf120b","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":160,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"0b2368fc-e16e-4fc3-9a08-230b910fabe5","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":160,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"b86af2b3-447c-4f43-92f8-cd7130fd4c10","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":160,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"4df93b6b-2458-43d8-852e-f69339b1d72f","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":160,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"b5bf320b-df31-4bfb-837c-9571adf7a8d2","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":160,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"a01d5ad4-55cf-43c9-82d4-37df5c9ed4bc","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":160,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"e9da6a2a-8500-4e21-92a7-ca754ae70173","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":160,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"1ea419d6-aebd-40aa-bc1a-6f865c9c88e5","block_type":"box","text":"respect to debt obligations with 60 days or less remaining to maturity unless such method does not represent fair","page_number":160,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"cf2d7afc-28e1-4a95-b279-fc3c72b9bba9","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":160,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"d623c684-70b8-4c76-a4bb-5736aa324b4a","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":160,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"c895dbe7-9ecc-438e-852c-763a26ef418e","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":160,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"b261ec32-10db-4932-8d21-882948ef5e17","block_type":"box","text":"attributes of the tranche.","page_number":160,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"90e05807-5a1f-4e1c-9d15-cd064e661535","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":160,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"5080b3a9-a624-451e-bed0-2379a3363483","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":160,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"284f02a4-fe13-4759-ac7b-73c6fc9b0169","block_type":"box","text":"index options or those that are customized) for which market quotations are readily available are valued at the mean","page_number":160,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"75ce2ebc-b310-4023-9263-7103ca98b261","block_type":"box","text":"of the last bid and ask prices as quoted on the Exchange or the board of trade on which such options are traded. In","page_number":160,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"844314f4-99a7-46f4-9f43-e4d60cba904f","block_type":"box","text":"the event that there is no mean price available for an exchange-traded equity option held by a Fund on a day on which","page_number":160,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"04ea5986-14e9-42ee-888c-dea28b2c1604","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":160,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"cfb932f4-7fd1-46ea-b5bc-27776d1824da","block_type":"box","text":"the value of such option. If no bid or ask price is available on a day on which a Fund values such option, the prior","page_number":160,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"dbe47b3f-007a-4a13-b0fa-ae126ce2fc38","block_type":"box","text":"II-122","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f5c1d5d1-0352-4206-9d5f-582f87517e4e","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":160,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a9884494-c48b-4375-9375-8c128707532c","block_type":"box","text":"day’s price will be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":161,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"97d9f897-19f3-4eba-aa2c-56efdc5bdef3","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange-traded equity","page_number":161,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"6bf73002-f557-4ada-837b-f505a767f955","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":161,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"e33f91a8-74f2-45b7-b496-3b47bc17eebc","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":161,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"96605687-06e6-4a3d-bc6b-a6bdedb55aba","block_type":"box","text":"on exchanges, are valued at their last sale price or settle price as of the close of such exchanges. Swap agreements","page_number":161,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"3676ba74-30be-4e77-9547-a48344f583b6","block_type":"box","text":"and other derivatives are generally valued daily based upon quotations from market makers or by a pricing service in","page_number":161,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"e37019d3-2c9c-4f88-b75e-888f8084ca9c","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":161,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"4bd4456a-2ce8-41b7-8976-ea71e3eec716","block_type":"box","text":"Underlying Funds.","page_number":161,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"ee636adf-8261-4c7b-92f1-e15089cfefd0","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":161,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"93eeca8b-81c8-4398-a5fd-4ba862e064ce","block_type":"box","text":"market funds) are valued at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued","page_number":161,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"37be03bb-2232-40c3-994b-43d3c256c948","block_type":"box","text":"at their most recent closing price.","page_number":161,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"134d9c36-8014-445f-aae0-e155b1b6b35d","block_type":"box","text":"General Valuation Information.","page_number":161,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"924c763e-2016-4474-8956-191e8b552d68","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":161,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"c400e9c5-1de7-42bb-8744-ce5f56680883","block_type":"box","text":"market makers to value each Fund’s securities and other assets and liabilities are based on information available at","page_number":161,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"165107da-6b72-4917-a6a3-01a006cd3570","block_type":"box","text":"the time the Fund values its assets and liabilities. In the event that a pricing service quotation is revised or updated","page_number":161,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"00980d97-4025-49eb-8353-8e5dc50a765b","block_type":"box","text":"subsequent to the day on which the Fund valued such security, the revised pricing service quotation generally will be","page_number":161,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"689315c0-dcab-436d-9680-46af2023e87a","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":161,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"d37edfb3-6944-4b9d-9eb8-3baeafdef9e9","block_type":"box","text":"the revision.","page_number":161,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"7057c9ec-a207-4d15-a946-46fcce5bb9d2","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":161,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"23586281-413a-4e86-be55-6f043a7d31d7","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":161,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"c7217216-acbf-4233-bda7-fb25aef882df","block_type":"box","text":"matrices, yield curves and other specified inputs and assumptions. This may result in the assets being valued at a","page_number":161,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"e21e17c3-46be-400c-89a4-99a788aa2ec6","block_type":"box","text":"price different from the price that would have been determined had the evaluated pricing method not been used. The","page_number":161,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"6d942e20-6c65-49e9-b4d2-d37c737da330","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":161,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"a9738d28-50b3-4676-b24c-22a78cae0cc9","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":161,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"8fb57313-92b0-46e2-a014-4f1651ec7e86","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an","page_number":161,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"d3552710-c305-44cb-b22c-05918d243469","block_type":"box","text":"investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss","page_number":161,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"6a7d9576-21d8-4fab-be1f-c38e763df72b","block_type":"box","text":"or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investment may also be","page_number":161,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"d37b4573-995d-4191-956c-b2a125f42e2d","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":161,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"e6384619-3e3e-493e-adfa-110e7403600f","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security which is","page_number":161,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"5782242d-089d-4285-9f09-f6f003b96168","block_type":"box","text":"deemed not to be representative of the fair market value of such security, the security will be valued by, under the","page_number":161,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"fdb58e32-c72b-4f17-b6cc-1c156386229d","block_type":"box","text":"direction of or in accordance with a method approved by BlackRock, the Fund’s valuation designee, as reflecting fair","page_number":161,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"913122a0-d46b-42b4-b417-12294bb0c3cd","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":161,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"9fe60e66-7218-4668-a94d-f4e3ba8e6987","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":161,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"f3c04f49-ea8c-4385-a7c8-25a6ac49be0e","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":161,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"1b20096c-1b0b-4445-b03b-979cbe9ed5e6","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":161,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"2e3a706d-6459-4800-9489-91ac454df826","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":161,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"add96e03-1beb-4983-b09b-aa5a6042010c","block_type":"box","text":"which a Fund’s NAV is not calculated. In such cases, the NAV of a Fund’s shares may be significantly affected on","page_number":161,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"cac45280-a25c-4c3e-8a14-613f56a51e9b","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":161,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"abe7525f-0724-45c8-939e-b45f6c09f2f4","block_type":"box","text":"Fair Value.","page_number":161,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"2daa4c56-1417-4a42-8322-68269b8ed858","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":161,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"b1853f8e-ba9c-4720-b8d4-a853f989fa6b","block_type":"box","text":"Fund’s investments are valued at fair value (“Fair Value Assets”). Fair Value Assets are valued by BlackRock in","page_number":161,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"7e7dbe02-955f-48bb-a20a-001d29026a5e","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":161,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"edc8dd47-649f-45ec-82d1-a1a5484722d1","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":161,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"2421da5c-dfd4-44df-89af-ed750d4cc55e","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":161,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"872a46ab-3e7a-444f-8804-7e263315c780","block_type":"box","text":"unreliable if, among other things, a security or other asset or liability does not have a price source due to its","page_number":161,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"b41396aa-0a0a-4fb3-b02b-f96552a68bcb","block_type":"box","text":"complete lack of trading, if BlackRock believes a market quotation from a broker-dealer or other source is unreliable","page_number":161,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"eb8dc4f3-37e3-4f4a-8527-55096fc35a79","block_type":"box","text":"(","page_number":161,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"bfb8c369-b847-40d7-8854-415acbe1432f","block_type":"box","text":"e.g.","page_number":161,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"f0c97f98-5d65-4b2e-9c86-7b56654045d3","block_type":"box","text":", where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":161,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"8c00b2bf-d613-4a49-8174-96b9b001cade","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or liability is only","page_number":161,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"d95747b8-4cb2-4c73-ac89-bfa9173c097c","block_type":"box","text":"thinly traded or due to the occurrence of a significant event subsequent to the most recent market quotation. For this","page_number":161,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"31042180-9210-481d-8221-6b80711bc59f","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":161,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"20c5585b-9092-41d1-961b-14940049351e","block_type":"box","text":"an event has occurred after the close of trading for an asset or liability but prior to or at the time of pricing a Fund’s","page_number":161,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"66172787-f750-40b0-b928-b56ff7608ec6","block_type":"box","text":"assets or liabilities, is likely to cause a material change to the last exchange closing price or closing market price of","page_number":161,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"2b224702-ab70-4bec-97c1-3d42577c8218","block_type":"box","text":"one or more assets held by, or liabilities of, the Fund. On any day the NYSE is open and a foreign market or the","page_number":161,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"0f0129c4-ffeb-4242-8d17-d66ed0cef626","block_type":"box","text":"primary exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued using","page_number":161,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"7ba75173-d622-48ec-b783-20b6b6d5a81e","block_type":"box","text":"the prior day’s price, provided that BlackRock is not aware of any significant event or other information that would","page_number":161,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"13913138-bf40-46a9-a8a0-841e3f716ed6","block_type":"box","text":"cause such price to no longer reflect the fair value of the asset or liability, in which case such asset or liability would","page_number":161,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"bd77cf3b-9083-499d-81b8-ec8eafeb612f","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":161,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"28c2bfcf-3bfb-4a9d-9b47-23942dca91b8","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":161,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"7c305001-acfc-4501-b0ed-7e739c75c84f","block_type":"box","text":"II-123","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"435ac04f-316a-4432-9fb4-5bb0127c79d8","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":161,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a755b137-e362-45fe-8d72-b79356586511","block_type":"box","text":"closed. This systematic fair value pricing methodology is designed to correlate the prices of foreign assets in one or","page_number":162,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"5dbec689-5282-469a-a031-abbfbb28a4c1","block_type":"box","text":"more non-U.S. markets following the close of the local markets to the prices that might have prevailed as of a Fund’s","page_number":162,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"dfa97c0f-601a-4d5b-b7ba-fab669392e18","block_type":"box","text":"pricing time.","page_number":162,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"6ed1d207-8024-4de6-be42-6ee9ae80d194","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":162,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"828a1a92-94a2-452e-bba1-4d30c41b2a95","block_type":"box","text":"and significant inputs used in the fair valuation of Fund assets or liabilities. In addition, the Funds’ accounting agent","page_number":162,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"aa89450b-c223-4080-b6e3-090258a28cef","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":162,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"3aa948b8-66af-411f-86ae-d0b0c0112315","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":162,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"e733a748-f9c6-42da-9c97-b50d71079654","block_type":"box","text":"assets and liabilities of the Funds.","page_number":162,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"61a84a12-110c-48cd-8f70-8f0e12b2d575","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a Fund might","page_number":162,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"d514d4d7-afe7-43d7-8390-e081929d1d46","block_type":"box","text":"reasonably expect to receive from the current sale of that asset or liability in an arm’s-length transaction on the date","page_number":162,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"d175bfbb-d56d-4457-b1c9-46cac4dba717","block_type":"box","text":"on which the asset or liability is being valued, and does not seek to determine the price a Fund might reasonably","page_number":162,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"c9332e93-06aa-4ddb-8dbe-ec942db384ef","block_type":"box","text":"expect to receive for selling an asset or liability at a later time or if it holds the asset or liability to maturity. Fair value","page_number":162,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"07e15585-f3ca-4417-97fb-c660bd1489b9","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":162,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"8ecf1a1b-1977-4566-a6f0-cb86db7b9367","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":162,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"9f689b17-7968-4854-85fb-cb2116aa7e0a","block_type":"box","text":"valuation models.","page_number":162,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"0bb13f1e-6100-4bbd-a9da-9e081ad69770","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. When determining the fair","page_number":162,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"ccfda7fd-c394-49e1-9f23-21d7d0e78c42","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":162,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"550d9009-ae56-40b4-a707-a9d43e81ad5a","block_type":"box","text":"the asset type). For example, the investment may be initially priced based on the original cost of the investment or,","page_number":162,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"864834e6-a78c-4a0c-be02-5497e9f32400","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":162,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"0c546e68-4ade-4412-bef2-b406855dac50","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":162,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"dd264062-4de8-48bf-88df-cff8fda495ef","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":162,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"ce4409b9-14f8-480d-981a-bdc81aec9b41","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":162,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"da2bbff4-1dc5-4d72-9eaf-46c693fbd9be","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those assets or","page_number":162,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"0bbb3614-e8be-41ad-9023-da2af28fb73f","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":162,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"32ee145a-21eb-4901-8cdf-13aede8ad50d","block_type":"box","text":"NAV. As a result, a Fund’s sale or redemption of its shares at NAV, at a time when a holding or holdings are valued at","page_number":162,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"d35a0f69-dbd7-4300-8bbf-b58647823418","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":162,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"0b7e6ad0-e28b-4ec4-9069-9af9c266b0af","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":162,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"28235278-13da-4014-aa4b-f547f0acfa79","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":162,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"c8415c6e-fde7-455a-b16c-ade6a4c59fc8","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":162,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"fa7b2201-388f-433e-bfae-f60e919a00aa","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":162,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"777a5ba8-7862-42b3-a802-0b9b7255c63c","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":162,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"09c3ced0-3c07-447a-b6f8-2acfb45f419c","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":162,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"9432eda5-af0a-4754-8913-bbd77b2485d8","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":162,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"09c4e25e-04a1-4477-a066-7275edeb7d93","block_type":"box","text":"of the fair market value of assets or liabilities, to the extent such rules become more stringent, would tend to","page_number":162,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"ffbb1367-0c48-4976-b35a-f784609152cc","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":162,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"5deaf786-7a0f-4623-97ad-2671a04d8540","block_type":"box","text":"increase the costs associated with selling assets or affect their liquidity due to a Fund’s inability to obtain a third","page_number":162,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"07dc03e2-e20d-40c8-989c-bb4f62e0db1e","block_type":"box","text":"par ty determination of fair market value.","page_number":162,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"91128985-9c7b-4654-b2ab-a70e4020f76b","block_type":"box","text":"Computation of Offering Price Per Share","page_number":162,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"f1b0ed7d-b0d7-4501-8b11-dd51156efb51","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":162,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"d2ec50a7-ade7-46ac-ae3b-6840c8c98deb","block_type":"box","text":"the offering price for shares of your Fund.","page_number":162,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"7a2b14e7-0930-44ed-88be-a425ca71d0bc","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":162,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"cf795775-02be-460d-bf58-7be9a7972929","block_type":"box","text":"Transactions in Portfolio Securities","page_number":162,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"f254c20b-33a1-450f-b51a-5041a4749275","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":162,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"6d26b16c-8203-4167-a5c3-41f93afda832","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":162,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"0c0fdd14-8193-4c6e-9bae-6a978db5ba87","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":162,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"39003684-26e1-4b5f-b62e-2c0f19a91911","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":162,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"54829199-b637-4330-9e1d-7ccdd6e64bde","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":162,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"96efcf4f-336c-4d19-b032-53db04d5eed9","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":162,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"dbe682fa-2a1d-484a-bf72-0f079c9c390e","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":162,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"be53260d-0818-4bc7-8e53-b6bd95ab4e7b","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund to pay a higher","page_number":162,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"5522bf01-6b83-4540-91ac-98ccd68fa525","block_type":"box","text":"II-124","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a7b66f8e-f203-4183-b93c-a89304ee1aa5","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":162,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"cb2da5e5-c510-4a28-99ce-8569889c515d","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":163,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"0dae270d-3f59-4a1c-8dc1-f4d22e1f1c90","block_type":"box","text":"reasonable in relation to the services provided.","page_number":163,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"3722d92c-5172-4d8d-8c64-6a36374be28a","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":163,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"32df6088-5996-48f3-a743-b1882a08e373","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":163,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"579742b0-4b46-4739-b967-e564cccdf75e","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":163,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"024ae969-c22b-43e1-8ed6-ef76b2e940de","block_type":"box","text":"the best price and most favorable execution for a Fund, taking into account a variety of factors including: (i) the size,","page_number":163,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"a3da3c9a-90fb-4e1a-ae06-cd86b7d1c1fc","block_type":"box","text":"nature and character of the security or instrument being traded and the markets in which it is purchased or sold;","page_number":163,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"a32c1ce8-3058-4f4a-82c6-f190674de107","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":163,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"0bb55a91-1611-4589-9e47-22b05a2bacc0","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":163,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"5a94b8a4-1d6d-4f30-b9ec-6b9078fd796f","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":163,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"facb89bc-b30f-49c7-a5dc-e9ceeb1f2a5b","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":163,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"cf8d08ed-7db3-405a-b14e-6fb37590d4a1","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":163,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"764b6ac8-a440-45a2-8a7e-e63cf4a9dc15","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":163,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"2f473b96-de67-4a16-87ec-12d8a1832412","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":163,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"3e2f42b0-c06b-473a-992b-cf03058369ca","block_type":"box","text":"to cause an account to pay a broker or dealer a commission for effecting a transaction that exceeds the amount","page_number":163,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"ca137496-95fc-475d-83e8-365ee815a232","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":163,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"fe4a7491-a89a-4839-ae54-42603738d179","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":163,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"88633ed2-4e61-4541-86d8-bb1ba59597ec","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":163,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"f21dfe39-ba32-429f-9d33-e9872c4c0d18","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":163,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"11cf08da-070a-4533-81c8-ae6576676911","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":163,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"9a568600-6745-4f8e-ae7f-17ca0df8389d","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":163,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"70c822f6-528e-48fa-8c5d-6999a04467aa","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":163,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"d4db622b-5558-45f0-aa5f-c6e387ff71c6","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":163,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"589eb135-d172-444c-9784-8fd1852f5dfa","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":163,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"2e0c7e39-5b08-4cc1-b9f1-93ed181daf7e","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":163,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"61987e37-8929-4c91-9d03-13c6810eb88b","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":163,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"4260f0e6-0dcf-4113-845c-847a2f1c409a","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":163,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"2c7fb26c-c64a-4244-b83f-4271cced0dd5","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":163,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"2d14d29a-7edc-476e-860c-91d8e3541e76","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":163,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"b6fd1d01-7bfb-45e1-8897-b2d576e6d5a4","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":163,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"bee16be1-4636-4f9b-881d-395bbb43139f","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":163,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"5f321e24-d6d7-4031-b3ea-66d7d8f815af","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":163,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"a587137c-f5cd-49e0-9a2b-4a96911b8dad","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":163,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"aa05e9fb-d121-4e88-9497-9a706f21ccf1","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":163,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"33ec10ca-abc1-4c1b-908d-7f6261426fe1","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":163,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"fb186341-bc65-4565-b637-5a16b2a7ae3c","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":163,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"c8f7fb80-d805-430a-8090-b761658693d8","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":163,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"047b274b-780b-4e6a-aa0a-ee891a664f26","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":163,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"b514baf1-825c-48d3-aafa-f7d0e3c193ce","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":163,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"52d76cca-cd67-4fe8-834f-4265ea757fc6","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":163,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"94c91121-21f1-4ce0-adfa-a3b6d5aa17b7","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":163,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"bc11fd4a-0027-4166-beea-083acfeb3615","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":163,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"481b7a9a-17e3-43a3-a42c-beffe8c51211","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":163,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"573e919d-2654-4059-8818-d4ba9e69fe8c","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":163,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"635c4664-ac71-4264-9deb-23fee5c07f2c","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":163,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"39b6bacd-77ea-4a65-87bf-c1b867d500a0","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":163,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"49a37bb1-3345-4048-a626-385b66d86fbc","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":163,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"bc053414-5837-4c30-92ab-58afc8959c84","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":163,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"2dc57403-220e-4b49-8d67-434959db1a85","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":163,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"a4e0bfb6-7fe5-436e-b42f-d37a75b890c3","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":163,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"c3e7c703-a00c-4045-a9e8-1fabee7b82ed","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":163,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"ae310071-0687-4cc3-ae3b-87d0163d082e","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":163,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"3e0a145e-b628-4bcf-ae7a-68d4cfc2ea45","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":163,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"bb886870-f57f-4f5d-b01c-6dd3b75e708c","block_type":"box","text":"used in servicing some or all client accounts and not all services may be used in connection with the Fund or account","page_number":163,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"93c33623-55c1-48d4-a149-db8fec24b128","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":163,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"36e64fb9-3463-475d-ae57-77597f04c183","block_type":"box","text":"II-125","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"de55376f-2968-4ecc-8340-c09e2caa3e5c","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":163,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"777eee1b-3378-492d-8b5d-8f104d174ad5","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":164,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"6ebbbc40-9dad-454b-89e5-048510bcdf13","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":164,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"d3d4e09b-b9a6-451c-9630-bc469a870c09","block_type":"box","text":"paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt of research services. In some cases,","page_number":164,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"d97337c9-8ce6-4309-8dad-f933a904858d","block_type":"box","text":"BlackRock may receive a service from a broker that has both a “research” and a “non-research” use. When this","page_number":164,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"fbc6cfb3-f37d-404e-909d-f07bcbb3f507","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":164,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"722dacf4-e465-42f1-9e1e-e4bcf4a8192e","block_type":"box","text":"research uses of the service. The percentage of the service that is used for research purposes may be paid for with","page_number":164,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"a62d7a41-4c3a-4426-8ea1-0e5902e76779","block_type":"box","text":"client commissions, while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":164,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"713d1385-2883-4567-ab84-c2f6cf456651","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":164,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"82e8e11f-ab90-4b3c-8a2f-696f42d38607","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":164,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"1ef10082-0268-4418-93bf-85238abe4f70","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":164,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"bc61189c-acac-4170-b9d4-3d8077e003d6","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay for research","page_number":164,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"e78efeed-b742-4d4c-93e0-2c781c177e3a","block_type":"box","text":"from brokers. Investment managers in the EU are required to either pay for research out of their own profit and loss","page_number":164,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"79f0591e-1ab0-4af1-903f-08300d97f0a4","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":164,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"598f6d6b-959d-4580-9efc-4ba075406e3f","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":164,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"6ebe4713-f41f-4a79-8331-233616e60ef3","block_type":"box","text":"payments for research are unbundled from the payments for execution. BIL will pay for any research out of its own","page_number":164,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"d9e6dc70-acd0-45dc-b10c-47d70cb0e698","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":164,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"9d8ce659-1de5-45e8-bb3f-24cce8a76a6a","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":164,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"60e1a5b7-310a-499e-8bea-857f1e508f4e","block_type":"box","text":"to the Feeder Fund (or affiliated persons of such persons), will be made in accordance with Rule 17e-1 under the","page_number":164,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"dc32cea9-4aad-4600-b041-11cdb30bce5f","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":164,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"db45accd-2788-477e-9554-c7390b84a6fc","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":164,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"66d61bbc-f947-4adc-90f9-91ac834c9c8f","block_type":"box","text":"brokerage.","page_number":164,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"674174f2-6f5a-4ce5-bdb0-6a214df6e8c7","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these situations,","page_number":164,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"bd0bdf55-ef0b-47c1-b287-e5d431a0d7cd","block_type":"box","text":"the broker may be a member of the selling group that will, in addition to selling securities, provide BlackRock with","page_number":164,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"152765f5-9317-453d-b627-87dc413c08d0","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":164,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"eca447bc-3075-44bf-8ef2-71f0e7a4309e","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":164,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"a6a674cc-c542-4e10-838c-14b9a88d399e","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":164,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"202bde28-94f1-4ee5-a218-59d4e648146a","block_type":"box","text":"Section 28(e).","page_number":164,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"081946b1-9298-41f9-b004-32855d133de7","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection of","page_number":164,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"38c8d99c-1235-4d33-a9e1-cf924cc59060","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":164,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"ca66890d-7d6a-4127-a524-df0e850fa004","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":164,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"554809f6-6a75-4d4d-8ce7-1207bf64f980","block_type":"box","text":"execute transactions for those mutual funds.","page_number":164,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"3657bfd3-dbb4-45ce-8931-9242903855b2","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":164,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"ea9b81b2-8eba-4b09-b521-fb59c7864109","block_type":"box","text":"primarily on the principal stock exchanges of the applicable country. Foreign equity securities may be held by a Fund","page_number":164,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"7224d644-1659-474f-8997-069a389e958f","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":164,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"533a472b-cf6f-4088-ae1e-916e8c96309a","block_type":"box","text":"may be listed on stock exchanges, or traded in OTC markets in the United States or Europe, as the case may be.","page_number":164,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"10ebdd58-a1c7-4efa-aa57-9256bb74b8a6","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":164,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"54b7ed9f-5235-46b5-82a5-555988e087f2","block_type":"box","text":"commission rates. Because the shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund","page_number":164,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"e503072f-b55b-4f19-8bd6-159c4eddcb0d","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":164,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"911aa7b6-0a20-410d-8eb9-7383e16a8b4a","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":164,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"efe9639e-4992-4755-94fe-f040bad99ead","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":164,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"ffaf4f09-8459-4c71-9063-a7dc5d2030f0","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":164,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"3f90f1e6-ae1e-4545-95f8-abe45ff22451","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":164,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"5c5c5c99-bb44-4fcd-874e-378547e24d34","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":164,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"6640694c-9c72-4650-bd8f-fb8c78cdfe7e","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":164,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"c291fb6a-f83a-4c08-8cdb-02cb4fe09593","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":164,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"c01f0af2-f8a6-4804-9a87-30a818958562","block_type":"box","text":"affiliated with such affiliated persons are prohibited from dealing with the Fund as principal in the purchase and sale","page_number":164,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"d908c5c5-0005-4c52-b819-b0a587992d75","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":164,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"410e58fd-d02c-4252-9175-d1e160fd108f","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":164,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"61bc1eeb-cbba-4bb9-97b0-7387cf81050a","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":164,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"35f2846c-ff84-4317-96b5-643979cd5237","block_type":"box","text":"person of a Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":164,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"7b8f78ce-857d-49c0-b371-c875a08a6b05","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared to the fee or","page_number":164,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"b0867c01-68f6-4f24-ae30-95d9d5e5e3da","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":164,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"7f49016d-a206-43bf-b996-43c96f1133b6","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":164,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"de513a76-7930-4414-952d-c2af67eb282d","block_type":"box","text":"normally traded on a “net” basis without a stated commission, through dealers acting for their own account and not","page_number":164,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"f6612fa7-a8a5-46f8-9ea3-0557d18aef07","block_type":"box","text":"II-126","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e590b7fc-f07b-4a04-b30c-cb2ece75cd9d","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":164,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"256348a3-ca16-490d-b18f-9be78ac1871e","block_type":"box","text":"as brokers. The Funds will primarily engage in transactions with these dealers or deal directly with the issuer unless a","page_number":165,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"b3e25b11-eac6-4dfc-aa90-76b98dc1c7b3","block_type":"box","text":"better price or execution could be obtained by using a broker. Prices paid to a dealer with respect to both foreign and","page_number":165,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"a14be83a-00d7-44a8-9668-6bdd4a81c1c3","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":165,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"92acb628-511d-430a-b28c-008ed419e9ab","block_type":"box","text":"is willing to purchase and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":165,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"ebe26eaa-7b5c-44b2-a3fa-1c429ed2ca64","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":165,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"d75bb040-7382-47f8-bacf-0c01284f5d6a","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":165,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"f9827b2b-9f7b-4e12-9962-6e1a009b7408","block_type":"box","text":"instruments are generally traded on a “net” basis with dealers acting as principal for their own accounts without a","page_number":165,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"6aa9864a-1e0c-4b2a-9807-28a0941a11a4","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":165,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"625e2a9f-c680-4e2b-ade4-84373c2e9e52","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":165,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"db9fdbce-91ac-4b82-8826-42a162998978","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":165,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"b7092625-2eef-4147-b399-686747baf249","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":165,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"1d7393b0-43db-4b82-be87-b455fe51405b","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":165,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"cb5a3f4c-6006-4308-8909-aca99af7b5df","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":165,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"4d12d4bc-ce89-4720-864f-bbb99f5c6a11","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":165,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"e01206ed-8be1-4d4b-96ca-ea7148d3a478","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":165,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"1a27bd37-3a34-4d67-b838-de3b4315f3d5","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":165,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"6ee68659-e963-4999-b05f-d1b6ca3fd83d","block_type":"box","text":"selling commercial paper to consider the repurchase of such securities from a Fund prior to maturity at their original","page_number":165,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"12e0135d-cf03-4d83-b71c-678e13b751b7","block_type":"box","text":"cost plus interest (sometimes adjusted to reflect the actual maturity of the securities), if it believes that a Fund’s","page_number":165,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"ff205917-ba24-4244-af16-79080ddace4b","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":165,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"d532a58f-7622-4b1d-93ed-a4da5f2732f6","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":165,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"e66f70ef-d745-4a37-8e94-480c37014f3e","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":165,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"9a7e3fbf-ab41-4d7f-b839-be47732e962b","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":165,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"55e37093-a3e1-48cf-859d-ffd4f65da4a8","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":165,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"127c5462-5ba2-4e0c-a9cf-d727362f6be9","block_type":"box","text":"accounts in a fair and equitable manner over time. A variety of factors will be considered in making such allocations.","page_number":165,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"536d59ea-a7f7-47da-b65f-5347ceab01f3","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":165,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"fe22d56e-8295-4649-be9b-74951f366b85","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":165,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"f15f154e-3ee4-4f12-9175-d36affdf2ce6","block_type":"box","text":"concentration parameters for an account, (iv) supply or demand for a security at a given price level, (v) size of","page_number":165,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"e42e00b9-94af-4948-83b6-f066477a36d1","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":165,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"42d10c3b-484c-4b75-8709-a4068aea280e","block_type":"box","text":"(viii) minimum investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":165,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"1c916d8e-ad85-4dbb-89d7-34c119f16b28","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":165,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"9ab321f0-0ec2-4aa7-a65d-1011b8a7b308","block_type":"box","text":"another based on any of the following considerations: (i) to favor one client account at the expense of another, (ii) to","page_number":165,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"b5271b57-7263-4949-aaae-193db8dc8b6b","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":165,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"3811f79c-1b6d-444d-89f5-4b6d0fcdef75","block_type":"box","text":"BlackRock, (iii) to develop or enhance a relationship with a client or prospective client, (iv) to compensate a client for","page_number":165,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"f29af085-9ead-4cb2-8fe1-fca670b867f5","block_type":"box","text":"past services or benefits rendered to BlackRock or to induce future services or benefits to be rendered to BlackRock,","page_number":165,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"9750f9b4-1851-4cf5-ae4d-0ae917132695","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":165,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"763447f6-6a92-47ea-b267-e781fa028cbb","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":165,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"f6b2b284-7478-4d61-9433-7b7b7b681dbb","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":165,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"b11e76f0-dd8f-4511-ae9c-3b1cfc121fdc","block_type":"box","text":"accounts and compliance constraints.","page_number":165,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"9705f5d2-774f-46ad-93cd-fa5ce8e5d3d9","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":165,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"0c93915d-9c74-49b0-bff2-8f607446799f","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":165,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"5a17b3e8-1d7e-4bd3-98d8-9204255b42ec","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":165,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"c79fe992-2cdd-4e37-a7b0-289642104fa6","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":165,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"09490e60-a454-4b01-871b-cc316adef7fb","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":165,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"771f8d62-431f-4698-9ff2-caf70309b314","block_type":"box","text":"accounts for which that team is responsible. Initial public offerings of U.S. equity securities will be identified as","page_number":165,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"c50f385c-31f4-4c38-827e-f29b6adaf44d","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":165,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"6641f35f-9958-48ab-b952-db39e3ec8164","block_type":"box","text":"based on market capitalization of the issuer of the security and the investment mandate of the client account and in","page_number":165,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"3efb0e2a-5ecc-4fc7-ba0f-b6a4564fe4c6","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":165,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"aaa098e3-2277-48c0-aa33-1116bce9412b","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":165,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"af1a68ba-d60b-4599-b9ba-ecf56db6189b","block_type":"box","text":"client accounts within each investment mandate on a pro rata basis. In situations where supply is too limited to be","page_number":165,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"6d0ab202-60ca-40fb-8d34-68fe7ebc15bb","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":165,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"81def645-ef4c-41d3-b8c1-dc02f6298568","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":165,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"edbca012-f55c-4fd5-8c4c-c7bc8507b133","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":165,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"42b6c5af-9a02-4ed6-8594-434b63a70702","block_type":"box","text":"clients may be used as well.","page_number":165,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"2d9246e4-6ec7-4e73-a42f-5386fbbd2d5b","block_type":"box","text":"II-127","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dd3f64c9-801e-49a2-a387-a84e07301373","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":165,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c1e0631d-3f7f-45b0-9a21-d63de3e52fb0","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":166,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"2457b4dd-f35a-4477-b999-0716e9245ea9","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":166,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"6f33124d-2f0c-43df-aebe-726cf205acdc","block_type":"box","text":"and strategies of those accounts. For example, BlackRock may decide that it may be entirely appropriate for a growth","page_number":166,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"026cc903-4d3f-43d9-8d3c-8eae3d117cfc","block_type":"box","text":"fund to sell a security at the same time a value fund is buying that security. To the extent that transactions on behalf","page_number":166,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"a718613c-5715-4434-95b4-29021db2fed0","block_type":"box","text":"of more than one client of BlackRock or its affiliates during the same period may increase the demand for securities","page_number":166,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"4f4dc692-9b67-47e0-b6b2-079877a3a848","block_type":"box","text":"being purchased or the supply of securities being sold, there may be an adverse effect on price. For example, sales","page_number":166,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"2b4697db-958a-4410-a1fd-f1ee4bda8d57","block_type":"box","text":"of a security by BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":166,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"902aaf88-f4e8-45e8-89ea-505725477c1b","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":166,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"858eeff2-becf-4334-8c89-fb319d2906dd","block_type":"box","text":"consideration at or about the same time that would involve a Fund or other clients or funds for which BlackRock or an","page_number":166,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"897b23f0-8476-4e88-a225-5b2ac1134d50","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":166,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"f0d86462-5f9c-4f17-80d9-807f5f75bd41","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":166,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"6095c78f-19fe-40f3-8779-96e3bc032990","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":166,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"2c97ba6a-4b60-41d6-b7ad-26110705ec69","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":166,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"853fb891-26e8-4f21-ab1b-22650df1a2ab","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":166,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"28f1b425-7782-47d9-8aea-2ba50b11bfd0","block_type":"box","text":"will be aggregated in a single order if the trader believes the aggregated trade would provide each client with an","page_number":166,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"6ec612a3-bdcf-4510-8301-f4cdf9899daa","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":166,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"c819e832-b6a6-4dce-aaae-7e3960933930","block_type":"box","text":"aggregated order will be shared pro rata among the clients in the aggregated order. Generally, if an order for a","page_number":166,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"5b18e79b-9e1f-4cf7-bf8d-b57059817a3d","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":166,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"d89753a2-d8da-4eca-81a3-0b6d16e7a4f4","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":166,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"987e9e6a-fb81-4beb-b96f-73c6b6b8a9f7","block_type":"box","text":"where average pricing is not permitted. While in some cases this practice could have a detrimental effect upon the","page_number":166,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"4f0b2c9d-2487-4252-ac76-3b721c32c65a","block_type":"box","text":"price or value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":166,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"96a9f02f-5282-4a22-84cd-3060b34091de","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period may increase","page_number":166,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"37701491-be0f-4643-bc8a-36f3dacc924e","block_type":"box","text":"the demand for securities being purchased or the supply of securities being sold, causing an adverse effect on price.","page_number":166,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"6012ac4a-f89e-4cea-bf1e-4a9b6f3492fc","block_type":"box","text":"The trader will give the aggregated order to the broker-dealer that the trader has identified as being able to provide","page_number":166,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"8a1eda68-16b6-4b25-9e13-e41d31c88201","block_type":"box","text":"the best execution of the order. Orders for purchase or sale of securities will be placed within a reasonable amount","page_number":166,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"33f1a851-152a-42f9-add2-c0ad191838d2","block_type":"box","text":"of time of the order receipt and aggregated orders will be kept aggregated only long enough to execute the order.","page_number":166,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"5befa723-0bfd-46bf-8c2a-5099bf7f23a8","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":166,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"c2edacc0-2855-4a3e-9011-4f1218a98a38","block_type":"box","text":"securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment Company Act) thereof is a","page_number":166,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"39aff7f7-be34-435e-a6d5-5b4cecea0aa2","block_type":"box","text":"member except pursuant to procedures adopted by the Board of Directors in accordance with Rule 10f-3 under the","page_number":166,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"88fd4bf9-0ac2-420d-8873-24b9ce4c45c5","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":166,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"26b77268-10e5-466b-adcb-49c3ecd8e12f","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":166,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"4d6544a6-9668-4ab5-8f75-7ed8a9b27175","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":166,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"7ea99a89-4a96-4924-a8d0-4f32b9153ee6","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":166,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"e40255ab-a78c-4947-a477-0bb5505901fa","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":166,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"ad029b40-54a0-495b-b001-095925347b6b","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":166,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"6c834263-b22a-4986-a1fc-672b81555cc2","block_type":"box","text":"to all by BlackRock. In some cases, this procedure could have a detrimental effect on the price or volume of the","page_number":166,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"38dd41b5-7b03-4aae-8bfb-e5d49ce15498","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":166,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"8fe2a6c0-0fbf-4da2-a157-2132fe486039","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":166,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"9cd395d5-59a6-40b0-b2a9-b3dae74598f5","block_type":"box","text":"invest for its own account in the types of securities in which a Fund may invest. BlackRock may, from time to time,","page_number":166,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"09e08eb6-ceea-4276-8fd2-6127a74e1bbe","block_type":"box","text":"effect trades on behalf of and for the account of a Fund with brokers or dealers that are affiliated with BFA, in","page_number":166,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"6cb33049-859c-433f-accb-0098d8c3f5e5","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":166,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"5861a31f-fb6f-49f4-9ad4-1149f61de1be","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":166,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"9a82e203-d501-48c3-a25c-9354130df6ee","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":166,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"72faf494-c8f2-4004-b12e-9a2f22a6feb8","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":166,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"6cc59cc7-7d3a-422a-8ee3-a7048887f810","block_type":"box","text":"Portfolio Turnover","page_number":166,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"250defd3-1f18-442c-945e-3edbc50b15c2","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":166,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"cf95f669-219e-4ad1-9df7-5bb9ba4b3c96","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":166,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"bc9f5b43-0524-4a1f-83f5-53015dba1714","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":166,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"f481441d-0f45-4c08-8bc3-6906ae610894","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":166,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"512fe339-ae71-4e1b-a258-f2148fd30d2e","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":166,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"eba9a1d1-f878-4cd7-abb0-a007c4923871","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":166,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"f0c43e03-12fe-4a29-9bec-1c93d3064503","block_type":"box","text":"II-128","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"eac69a97-9bbd-4976-81ed-31318fbc0770","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":166,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f4bba82b-de3f-42e6-aece-478c0527d951","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":167,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"074a415c-5b87-4ab6-b87f-1d723e800e9c","block_type":"box","text":"Dividends","page_number":167,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"5088e073-277e-4591-9117-6c1cb5949f5d","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":167,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"fa74f240-08d6-40bd-abf7-48bb1afb6063","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":167,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"46135250-c4fd-400c-86de-6de3d61947de","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":167,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"345302d5-f412-4075-8caa-57423dc5e4fb","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that cer tain","page_number":167,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"a72d13c2-ec8d-4d85-8473-0af5db3a6094","block_type":"box","text":"percentages of its ordinary income and capital gains be distributed during the year. If, in any fiscal year, a Fund has","page_number":167,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"dc825755-438f-47b0-b951-9f21895f9740","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":167,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"979d2963-ec4d-41c6-8c66-88d13521e379","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":167,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"22b792ae-e3df-4628-a329-efd7ab43a4ae","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":167,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"b30165a4-6313-48b1-9d92-19fdbfef482d","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":167,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"d762f4c6-9990-4a5f-b904-85077d10f202","block_type":"box","text":"whether they are reinvested in shares of the Fund or received in cash. The per share dividends on front-end load","page_number":167,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"da3def42-8644-4927-8ff0-dc55acba56e1","block_type":"box","text":"shares, CDSC shares and Service Shares will be lower than the per share dividends on Institutional Shares as a","page_number":167,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"6fdc4ea8-68ca-4312-89d2-cb495c802506","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":167,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"9916c631-953d-44bc-aecb-105c1f1973f9","block_type":"box","text":"applicable to front-end load shares and Service Shares, and the service and distribution fees applicable to Class R","page_number":167,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"725e7f88-2d5b-4d39-a064-19af7da10ac2","block_type":"box","text":"Shares. Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per share","page_number":167,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"94cd9ac0-98fc-4061-94bd-f500a7b3e043","block_type":"box","text":"dividends on front-end load shares and Service Shares as a result of the distribution fees and higher transfer agency","page_number":167,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"a649662a-66e4-4112-9be0-fbc92e84fa5e","block_type":"box","text":"fees applicable to CDSC shares and the distribution fees applicable to Class R Shares, and the per share dividends","page_number":167,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"446ff804-c651-409e-b621-ec4b689df30e","block_type":"box","text":"on CDSC shares will be lower than the per share dividends on Class R Shares as a result of the higher distribution","page_number":167,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"3f444bee-d5e1-47e0-9cd3-1c3415c6e3ee","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":167,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"0c846050-c0a2-4450-8740-d023e5aae949","block_type":"box","text":"Taxes","page_number":167,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"9a53622a-0dc0-44bc-88b8-0597ed88decb","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":167,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"629f6e63-3134-4868-91a1-98be986adfc1","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not be subject to","page_number":167,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"1a918747-a3ce-42cf-9ed4-2c2bfe2bb4da","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":167,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"cdf5763d-2172-492d-9c42-a312858e92aa","block_type":"box","text":"distributes to its shareholders in years in which it distributes at least 90% of its investment company taxable income","page_number":167,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"10875730-2053-4c94-8b19-6e08c701dc02","block_type":"box","text":"and at least 90% of its net tax-exempt interest income, if any, for the year. To qualify as a regulated investment","page_number":167,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"59b4715f-7b4d-466f-8708-7dec0c8ce021","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":167,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"794eca6a-e543-4df2-89b4-2b487e84f5ca","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":167,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"15ea6275-6383-4f04-a731-22978b123fcf","block_type":"box","text":"for a discussion of the asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the","page_number":167,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"1b4dc232-13e7-4c26-aa7f-94e4fba92dc5","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":167,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"0cd64f9f-cb30-439f-88fe-65033b9acfc1","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":167,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"ebac8eab-da4b-49fa-85a8-1a152dd3f147","block_type":"box","text":"A Fund may be able to cure a failure to derive at least 90% of its income from the sources specified above or a","page_number":167,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"66eda9ad-09dc-4d90-bddc-dbeadf7aea87","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":167,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"fb05e660-58f1-4a19-9fdd-981fcd43ee4f","block_type":"box","text":"paying a tax and disposing of assets. If, in any taxable year, a Fund fails one of these tests and does not timely cure","page_number":167,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"1d4f5a6f-9ce4-489e-a7b6-c92515a537de","block_type":"box","text":"the failure, the Fund will be taxed in the same manner as an ordinary corporation and distributions to its","page_number":167,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"71e95782-1bb8-4661-8428-725033ec96ef","block_type":"box","text":"shareholders will not be deductible by the Fund in computing its taxable income. Although in general the passive loss","page_number":167,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"ed76b117-8dea-4bc0-ba55-7e2ec38861ea","block_type":"box","text":"rules of the Code do not apply to regulated investment companies, such rules do apply to a regulated investment","page_number":167,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"d8a6e68b-b7db-4158-b272-640506423abd","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":167,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"9d9f307f-e8cb-453b-ac93-8fd6b32e3910","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":167,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"5b1a4b41-41fd-4153-96b6-d1debb9be78b","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":167,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"9992c268-ca87-4c7c-bc29-fa0a97835604","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a Fund fails to","page_number":167,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"79ba7c81-6879-43b7-a009-4e69bdbce211","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":167,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"4281763c-cbf3-4309-87ff-7c46527364e6","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":167,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"186aa4db-934b-4db5-8bb0-9553415e6947","block_type":"box","text":"earnings and profits (as determined under U.S. federal income tax principles) to its shareholders would be taxable as","page_number":167,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"15a8b9f6-acbb-4aa2-8108-2f7ab6b53c22","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":167,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"3ba81bec-bee6-407b-a786-edfaa0d6390e","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":167,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"73c82ecc-0828-4044-b475-0c6c407b1318","block_type":"box","text":"exempt obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that is a","page_number":167,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"6b297706-eacf-4c90-8d74-096ed4553284","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":167,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"111c43a3-4489-45fe-ab00-f0ab96f6d57d","block_type":"box","text":"U.S. federal income tax purposes, and therefore is considered to be a separate entity in determining its treatment","page_number":167,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"ed2f0a14-af3f-46e2-8e93-df6b245410fa","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":167,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"b7a2b414-d858-4129-85c7-1d7a56067b9d","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":167,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"4ccef720-64e0-410f-8de9-0181c6ec2651","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":167,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"c3cba101-3185-4737-895a-af375baf3c56","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":167,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"ca8abc7a-9264-4d09-9bde-dfef1aecc1ff","block_type":"box","text":"II-129","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"12cbe048-45ed-428f-9232-936cff076145","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":167,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"4e9870c0-93db-4fff-9e98-fb92f475fb33","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":168,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"1b1115bc-f6b7-48ab-9dc0-33320ec62561","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":168,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"48edaf55-0260-44ba-96d9-d298cab87a53","block_type":"box","text":"determined on a calendar year basis, and at least 98.2% of its capital gain net income, determined, in general, as if","page_number":168,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"e93cf591-f293-4a38-9202-faab86679ef7","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":168,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"40689688-cffd-4365-99be-c3dad8071d14","block_type":"box","text":"previous years. While each Fund intends to distribute its income and capital gains in the manner necessary to avoid","page_number":168,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"419d522a-7ea0-4a20-add7-f613b20c7af5","block_type":"box","text":"imposition of the 4% excise tax, there can be no assurance that a sufficient amount of the Fund’s taxable income","page_number":168,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"ed869029-5b87-4fd7-8a31-d9c181d45d4c","block_type":"box","text":"and capital gains will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for","page_number":168,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"56502f1d-324e-4514-8905-438e1898bee1","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":168,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"1ab9f610-86c4-4690-9fc6-e101969872f6","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":168,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"4ae95a1c-4022-4593-bf18-b4e63787ef97","block_type":"box","text":"have been reduced to zero. In the event that the Fund were to experience an ownership change as defined under the","page_number":168,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"e769b9a3-31a3-464c-aeed-5b05d4d35fd9","block_type":"box","text":"Code, the Fund’s loss carryforwards and other favorable tax attributes of the Fund, if any, may be subject to","page_number":168,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"8ae0f042-3789-4387-a94e-dfdaa3ec620e","block_type":"box","text":"limitation.","page_number":168,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"d6868b66-2914-4d61-baef-c603d89190a2","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":168,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"9893ffbf-e90d-47fa-b8dd-34dc4f37198a","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":168,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"33f09dcc-7a6c-49e4-8988-9da933fbc66d","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":168,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"d983c831-c63e-4d32-9e6f-caf4e5072c16","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":168,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"432d612f-ff04-4aa8-91a9-0f2bdc5014cd","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":168,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"c7d6faa9-9fb7-4bfc-89ae-fb77d9b99e6d","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":168,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"90fd061f-3354-44f0-a0e9-4875fb160f5d","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":168,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"8d69a1ab-0013-49dd-9fca-00628a27a4fa","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":168,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"4d52c128-b0a1-45d0-8696-96ebe5dd38bd","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":168,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"13e582b0-faba-4c42-8309-712b050978b2","block_type":"box","text":"taxable to such shareholder at long-term capital gain rates provided the shareholder has held the shares on which","page_number":168,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"ffaa495b-0ae4-41ba-a75e-bd1008de979d","block_type":"box","text":"the dividend was paid for at least 61 days during the 121-day period that begins on the date that is 60 days before","page_number":168,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"17c1e2a1-f055-44b2-8042-979313183e1a","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":168,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"b60643c5-3a50-494b-b481-221b13d44906","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":168,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"43a72a49-2227-4d70-9ebc-4d4a339304d7","block_type":"box","text":"was paid for at least 91 days during the 181-day period that begins on the date that is 90 days before the date on","page_number":168,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"17ab783d-56c0-432b-b085-598778345054","block_type":"box","text":"which the shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s distributions","page_number":168,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"317e657f-4bda-49df-8d12-b74446b76547","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":168,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"24977bee-a24e-4778-9d0f-544fcc11e6f6","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":168,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"87bdb186-1395-4004-be5e-8a34cbfbe434","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":168,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"785812a9-3b68-43c3-818b-c708cd26ec5e","block_type":"box","text":"constitute “qualified dividend income.”","page_number":168,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"834c6355-9b48-4c5f-937c-73fff39841ac","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":168,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"b1bb24d5-025b-4bb2-9480-5eb06d2ac146","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":168,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"77de3651-256f-437f-9baf-7e6860774073","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":168,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"1b1e2102-bcb7-4454-b9fd-3a54f1aba714","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":168,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"00838808-9955-4b9b-a4a1-99aab41c20fc","block_type":"box","text":"Fund retains net capital gain, it is subject to tax on that gain, and may designate the retained amount as","page_number":168,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"e007bace-7dba-4738-9e81-413bb468c482","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":168,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"1636809b-ca10-465d-8110-7260d64639c1","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":168,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"9a55dcaf-3c66-4078-ac99-628c27082ebc","block_type":"box","text":"have paid and may claim as a credit against their U.S. federal income tax liability (and as a refund to the extent it","page_number":168,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"cda85723-77e5-47fb-8b51-f74a06a18306","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":168,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"72416503-15b1-45b5-ac9b-1c0780b5f515","block_type":"box","text":"basis of their shares in the Fund by the excess of the amount included in income over the amount allowed as a credit","page_number":168,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"4892a137-1196-46ee-8cd6-e9bcd310072f","block_type":"box","text":"against their taxes.","page_number":168,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"4acc5a7f-e75b-4786-bc0f-d13e8114ac77","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":168,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"2618fd31-04d7-47f8-9d6e-effd5c1e539c","block_type":"box","text":"tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":168,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"ef8027ca-7983-4563-a1fc-3cfdeafc783a","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Distributions in excess of a Fund’s minimum","page_number":168,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"f251d523-3c3f-4fda-bfb6-e558dee0cb06","block_type":"box","text":"distribution requirements (or taxable income) but not in excess of a Fund’s earnings and profits will be taxable to","page_number":168,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"255ddae9-0426-4d17-80f4-d5bb9758d45b","block_type":"box","text":"shareholders and will not constitute nontaxable returns of capital. In the case of a Fund with a non-calendar taxable","page_number":168,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"87c5612f-836c-4210-88c7-754045e0e880","block_type":"box","text":"year, a Fund’s earnings and profits are allocated first to distributions made on or before December 31 of the taxable","page_number":168,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"9a9d482c-f38a-4d98-979d-014d79cd0ed4","block_type":"box","text":"year, and then to distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of","page_number":168,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"10cd19b4-26b3-4512-a7fa-983035845af1","block_type":"box","text":"Fund shares held for six months or less will be treated as long-term capital loss to the extent of any capital gain","page_number":168,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"be0414f1-6c12-42f4-9158-e7a9dab356b9","block_type":"box","text":"dividends received by the shareholder.","page_number":168,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"7c74069c-6eef-41d3-82db-5b436e3d686f","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":168,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"0bd0d305-0168-49b6-888c-85ad5096cb6b","block_type":"box","text":"shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains, generally will not be eligible","page_number":168,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"a967149b-813e-4f10-aab4-59557629fa0f","block_type":"box","text":"for the dividends received deduction allowed to corporations under the Code. If a Fund pays a dividend in January","page_number":168,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"e661100a-67a0-46b3-8525-ece19b291059","block_type":"box","text":"that was declared in the previous October, November or December to shareholders of record on a specified date in","page_number":168,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"29e42ada-7640-4824-a057-d410a258b0de","block_type":"box","text":"II-130","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0dd905f6-cd3e-41dc-b059-271e757033d2","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":168,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"0fec9b00-f7e1-4a2f-9f46-ae9759eb9d6b","block_type":"box","text":"one of such months, then such dividend will be treated for tax purposes as being paid by the Fund and received by its","page_number":169,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"383bc6ef-8ce7-4963-9eba-717626a33262","block_type":"box","text":"shareholders on December 31 of the year in which the dividend was declared. In the case of a Fund with a non","page_number":169,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"d74dc611-1b71-4c03-9374-4977c2f6b358","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":169,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"6b3386e5-5304-49f0-853a-9cfc63e3c12e","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":169,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"423f4cc6-4121-4c41-87e6-7dfe8673924a","block_type":"box","text":"dividends made after December 31 of such taxable year. A Fund may elect to defer recognizing, until the following","page_number":169,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"26af343d-63dd-433a-b1b8-c680f6110735","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":169,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"bf8c1878-8c50-417f-a5a5-da33393072d1","block_type":"box","text":"losses arising after October 31 and/or December 31 of the current taxable year. This may have the effect of","page_number":169,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"cfb4b488-9b26-4a0f-97a9-e9d2704302d3","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":169,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"ef43b129-004b-4839-ad7f-c2218cd5effc","block_type":"box","text":"taxable year.","page_number":169,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"e4dccb8d-04cc-438c-9a20-44d6adacd0c8","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares. A","page_number":169,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"4f9bcf86-f5e9-4ac7-b348-504cf03eb512","block_type":"box","text":"shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the shareholder’s tax","page_number":169,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"20d3d388-be69-46b2-ad6d-557a75525d70","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":169,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"cf5e90cf-2746-47cd-a491-637954a7acac","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":169,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"b92a1911-9fb7-45e4-8944-516c383e6baf","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a Fund, but","page_number":169,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"a8aa5d2b-4898-481d-8303-6184c3756af0","block_type":"box","text":"on or before January 31 of the following year, then the loss that the shareholder recognizes on the exchange will be","page_number":169,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"b914cfe2-1a17-4908-8c57-9b50cd3cff48","block_type":"box","text":"reduced (or the gain increased) to the extent any sales charge paid on the exchanged shares reduces any sales","page_number":169,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"37e155b9-7db8-4923-8224-bf60de802e8a","block_type":"box","text":"charge the shareholder would have owed upon the purchase of the new shares in the absence of the exchange","page_number":169,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"57041fd9-69ae-4e95-905d-8a79532c3fd5","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":169,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"bbe26192-8b8a-4b8d-938b-a90e07bf2f60","block_type":"box","text":"A sale, redemption, or exchange of Fund shares may give rise to a gain or loss. In general, any gain or loss","page_number":169,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"be7a7daf-2bec-47b7-a1e0-ec20630359f3","block_type":"box","text":"realized upon a taxable disposition of shares of a Fund will be treated as long-term capital gain or loss if such shares","page_number":169,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"98cd7e5a-2086-403c-8654-f86c337ace3e","block_type":"box","text":"have been held for more than 12 months. Otherwise, the gain or loss on the taxable disposition of Fund shares will","page_number":169,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"bd5030ec-a9a0-4afe-a6f3-07d10248d03d","block_type":"box","text":"generally be treated as shor t-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":169,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"93ea64be-a9c1-4201-9722-b49a486c458d","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than shor t-term capital loss, to the extent of any","page_number":169,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"eadab9c1-d70a-427a-a9ed-7665c5245e2b","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":169,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"ffd68c83-5c70-4a51-a900-9a98fa4346cf","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":169,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"6aa15dcf-e9d9-4def-a929-55ee8dfd6eee","block_type":"box","text":"plan described in section 401(a) of the Internal Revenue Code should see the Fund’s Prospectus for a discussion of","page_number":169,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"03296442-816e-44c0-b845-4bf5ad2da6df","block_type":"box","text":"special tax rules that apply to their investments.","page_number":169,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"caf32b3c-3d99-428f-ab11-6f93be86a86f","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially identical shares","page_number":169,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"ab1461a9-a80d-4876-b27a-1afb72edcbff","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":169,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"0bb3e669-f066-4884-b69b-eed40497b4b0","block_type":"box","text":"30 days before and ending 30 days after the date on which the shares are sold or exchanged. In such case, the","page_number":169,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"dfd66b0c-02a4-42c2-8bb6-9aa83ae5fac5","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":169,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"035c1063-cdcc-407b-806f-83bfffff1000","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":169,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"c2a126fa-ff0b-4f6c-911a-a5b392ab8191","block_type":"box","text":"shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after that date. This information","page_number":169,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"6b0eecb0-25ea-41a6-8584-4518dc32941c","block_type":"box","text":"includes the adjusted cost basis of the shares, the gross proceeds from disposition, and whether the gain or loss is","page_number":169,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"e22d1bbf-acaa-42d1-bad6-648472e55bfc","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":169,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"c015130c-c019-4502-843e-cfd183b8bd9d","block_type":"box","text":"selected by the Fund, unless a shareholder, before the sale or redemption, informs the Fund that it has selected a","page_number":169,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"013b6ac4-70c4-4df0-ae71-a759ada3b21f","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":169,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"f1b0d734-c3cd-4368-ab26-b4229d735cea","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":169,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"3d982dc2-eeba-4ef8-9c4b-b7ed74e5e18a","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":169,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"51e7d886-882f-416c-8c03-2fc116fe30c9","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":169,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"5fc83935-a3ab-4f71-9630-a949b7534964","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":169,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"bfd2eb1f-c69e-4d64-ad28-ca94cb37dfa6","block_type":"box","text":"redemption of such shares.","page_number":169,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"2b51d473-06df-4cfa-b2a2-dc1a3cdf66b5","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute por tfolio securities in kind for the","page_number":169,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"f8c0ee85-cdd9-49ca-9c58-d89349864c9e","block_type":"box","text":"purposes of por tfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":169,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"2c29a850-a644-45dc-9bda-100a018fc05c","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the por tfolio securities it distributes to the redeeming","page_number":169,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"991b30e3-a7bb-4be0-a3d5-dc784f7a5e19","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":169,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"df90be57-1677-433d-86ac-288b68079532","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":169,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"aff9db77-49cc-474a-8a79-b2da3ff780ad","block_type":"box","text":"capital gains as described above, the Funds do not employ a systematic approach to tax management. There is no","page_number":169,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"4dc805b3-dd80-4044-bd6b-9ac273e8ea78","block_type":"box","text":"assurance that a Fund can or will be successful in effecting any redemptions in kind and shareholders should expect","page_number":169,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"b49e8d59-f953-4c7d-815f-1b56d0d8c02b","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":169,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"b58df6bb-d23c-4d19-8d0b-abe24e705f79","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":169,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"8e4a7c72-42ff-4780-9834-574033743961","block_type":"box","text":"agreements. The U.S. federal income tax treatment of a derivative contract may not be as favorable as a direct","page_number":169,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"bc2b3daa-6381-4067-aaf0-d8f9a2714288","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":169,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"41e32114-79c7-4a13-ac9e-e05d53f427e2","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":169,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"3c3a5f62-415f-4f69-904e-61d5806bc9cd","block_type":"box","text":"II-131","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3e8932d3-d350-42a8-9d2a-efce040f7b72","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":169,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"4943530c-8bae-4815-8053-bffa167cea1a","block_type":"box","text":"income rather than capital gains. In addition, section 1256 contracts held by a Fund at the end of each taxable year","page_number":170,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"24cbc603-1277-4551-8f66-ca9f2e464d66","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":170,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"8618a02d-1d5e-4a4b-bedd-5ac0035a84c5","block_type":"box","text":"market,” such that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":170,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"2161b55d-47cf-460b-92ee-6d3b68da66f0","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":170,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"a8fa526b-b461-4f93-a7a1-cfd348be7b3d","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":170,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"79fb1646-1c8e-4d9f-a0c7-5105c8857b59","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":170,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"4278d915-b7ef-4219-9f5a-56a58ea5979e","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":170,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"8d57f54e-fd14-4628-a00a-5637036093d7","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":170,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"23e1538d-226c-4278-a714-7216bd0f1667","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":170,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"73bb9933-a710-4747-b7a6-3e765a79ab49","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":170,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"226ac162-42f1-4bda-9695-1dc13a65d52f","block_type":"box","text":"agreements since all the income on a notional principal contract may be ordinary income, whereas 40% of the gain","page_number":170,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"94ad4e7b-cc06-4d6a-8385-e0ed5da0e645","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":170,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"5acb8408-27d6-4af4-a1c1-af11d254b516","block_type":"box","text":"term capital gain taxed at more favorable rates when distributed to shareholders. The rest is long-term capital gain,","page_number":170,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"4aa8e4ee-c9db-45ea-8f0d-6a003e1cc9e6","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":170,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"7b6813bd-4d3a-4a37-82bd-592c4ea76d00","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":170,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"db3e9774-e4a8-42aa-87ee-fa11c74df9f9","block_type":"box","text":"finalized, these regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":170,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"d9fbce06-8cd4-4337-811c-3f798ba27a52","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":170,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"51165dff-89f7-4e49-9cdf-66464a9550ed","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":170,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"305ec39a-d6af-4aae-8f2d-a228223e2424","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":170,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"984ebcda-7ab9-41fd-bf66-d1f612fa0771","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":170,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"435eb907-35a8-4065-a249-0db87498d7a1","block_type":"box","text":"price of the securities over their issue price (“original issue discount”) each year that the securities are held. Since","page_number":170,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"d054c8d3-5d4a-439c-8c11-9fa410690d8b","block_type":"box","text":"the original issue discount income earned by a Fund in a taxable year may not be represented by cash income, the","page_number":170,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"9bb03cde-3a01-4b81-8101-07358e440e81","block_type":"box","text":"Fund may have to dispose of securities, which it might otherwise have continued to hold, or borrow to generate cash","page_number":170,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"5696ba15-e129-456e-a6e4-08ce996b2784","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":170,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"c9312f51-d6b5-490c-ac0c-ab0e6f88aee8","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":170,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"643f019f-8fc7-431c-8a13-96252592f3cb","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":170,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"ae1e0f52-9bcf-4c12-82a6-2f55eb7c8d43","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":170,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"a0e162d0-1539-4348-92b3-e2c82f112977","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":170,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"f2194830-cea1-4dc7-bb46-25e3be35c078","block_type":"box","text":"contracts or forward contracts (or similar instruments) may give rise to ordinary income or loss to the extent such","page_number":170,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"ead6b4a4-44e1-4a58-8c2f-2beeda0cd17b","block_type":"box","text":"income or loss results from fluctuations in the value of the foreign currency concerned. Any such net gains could","page_number":170,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"34583893-741f-4dfd-82ae-3584ff999ace","block_type":"box","text":"require a larger dividend toward the end of the calendar year. Any such net losses will generally reduce and","page_number":170,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"16179c1f-a4fe-43ce-8a71-821c0a8149f0","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":170,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"68f94f47-c727-4739-abfd-8ae76094c73b","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":170,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"259e0813-6331-4272-954d-0028c1bdf902","block_type":"box","text":"income. Any net ordinary losses so created cannot be carried forward by the Fund to offset income or gains earned","page_number":170,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"901f4e5d-72b8-4c61-afc6-afa21c090ff2","block_type":"box","text":"in subsequent taxable years.","page_number":170,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"b8137db1-35ef-4329-8c4c-ad46b4ca3460","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":170,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"fe053c07-4649-42bb-b0a2-568389d030d4","block_type":"box","text":"through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S. withholding tax under","page_number":170,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"a7a3caf0-dc29-4600-8105-e8bfafc74139","block_type":"box","text":"existing provisions of the Code applicable to foreign individuals and entities unless a reduced rate of withholding or a","page_number":170,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"b7412a74-4571-4e8c-b114-c45cf69b6db1","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":170,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"c29702e7-8b8a-471c-8c20-8a5a4ce76276","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":170,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"a6089bea-a7f6-419f-9aad-fdb5fbee29e7","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":170,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"a83bc3a9-1e27-43bc-9613-a0daec207eea","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":170,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"6199cd06-813d-41a0-ae94-accad5cbb6d2","block_type":"box","text":"discount and market discount) and paid to shareholders who are nonresident aliens or foreign entities, if and to the","page_number":170,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"ebf85959-b0bf-4b4d-8a56-67703d07fc56","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":170,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"31c64087-2c97-463a-bec8-b3d88aa5e93f","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":170,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"26c88fe1-48a5-48c3-b388-bc43aec337a9","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":170,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"99ee0003-84fc-4ba1-98b1-1b84671ba71a","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":170,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"cda7b9d5-06c9-4ede-a8ec-312f438867a5","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":170,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"ec16f01e-2927-4650-a3d9-bdd5873145c3","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":170,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"84b761b6-b3a0-43b2-b2fd-2c91c8364bc1","block_type":"box","text":"relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS Form W-8BEN-E or substitute","page_number":170,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"3b0590d6-e911-4354-a731-be2783771bb8","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":170,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"ac3a2b71-1d1a-4968-b010-f304a09077c6","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":170,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"40aa31e8-0f58-41d0-8593-b9f0e46920e1","block_type":"box","text":"intermediaries with respect to the application of these rules to their accounts. It is not possible to predict what","page_number":170,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"0dd09560-bc11-4297-ac86-99973dc2edbe","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":170,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"f42ef2d2-4399-4a96-ab71-13361dbc6f64","block_type":"box","text":"dividends under these rules.","page_number":170,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"3344714b-ce77-469d-b4e9-aae0054c5888","block_type":"box","text":"II-132","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"df2785ef-b7a6-4dda-bf1b-fc5ec555d930","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":170,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"505c22ec-ce61-44b2-a801-14c7d9ff7ea3","block_type":"box","text":"Distributions to cer tain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":171,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"88415710-0cd2-4459-80c7-d5a6c04b869c","block_type":"box","text":"proper ty interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":171,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"0b6171c6-7a8c-4882-8d52-5c808f8a68b1","block_type":"box","text":"the date of the distributions, to the extent the distributions are attributable to gains from sales or exchanges of U.S.","page_number":171,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"4a8ecee9-b508-4fb6-a0c7-5dbe602850cd","block_type":"box","text":"real proper ty interests (including shares in cer tain “U.S. real proper ty holding corporations” such as cer tain REITs,","page_number":171,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"67e34f54-2a20-4800-8891-a7603777ef35","block_type":"box","text":"although exceptions may apply if any class of stock of such a corporation is regularly traded on an established","page_number":171,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"5f2fbed5-8c7d-4f27-ab4a-139a57fa122d","block_type":"box","text":"securities market and the Fund has held no more than 5% of such class of stock at all times during the five-year","page_number":171,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"96c5d2d9-cd65-4696-b40c-341e3c0bfc10","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":171,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"9a1a5d40-28ca-4688-baf5-bfa3f3eda292","block_type":"box","text":"effectively connected to a trade or business within the United States, which is generally subject to tax at the","page_number":171,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"09eab249-a505-4824-84d2-7eeaed611921","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":171,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"82a7eadd-f184-42c2-8e44-675c70aef681","block_type":"box","text":"than 5% of any class of stock of the Fund at all times during the previous one-year period ending on the date of the","page_number":171,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"57b23553-0436-4424-8e92-ea2e72877488","block_type":"box","text":"distributions. Such distributions will be subject to U.S. income and withholding tax and generally will require a foreign","page_number":171,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"d675c68f-145c-4ae1-a146-98bb71804414","block_type":"box","text":"shareholder to file a U.S. federal income tax return. If the foreign shareholder held no more than 5% of any class of","page_number":171,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"840ad813-1adf-4572-838f-0156da35f5fb","block_type":"box","text":"stock of the Fund at all times during the previous one-year period ending on the date of the distributions, the","page_number":171,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"ba8a73fe-6754-4dcf-9d39-d7f27f330704","block_type":"box","text":"distributions will be taxable as ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition,","page_number":171,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"391e09e5-b7cf-49bf-8c9f-192d40250a01","block_type":"box","text":"sales or redemptions of shares held by cer tain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":171,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"51eadd32-a60a-4b4c-9629-a98312aac3c9","block_type":"box","text":"income and withholding tax and generally will require the foreign shareholder to file a U.S. federal income tax return,","page_number":171,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"4c729c71-9b78-4aee-a2ba-28bceff459a0","block_type":"box","text":"although exceptions may apply if more than 50% of the value of the Fund’s shares are held by U.S. shareholders or","page_number":171,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"c4405bf8-86bd-44eb-a060-92d240c0a466","block_type":"box","text":"the foreign shareholder selling or redeeming the shares has held no more than 5% of any class of stock of the Fund","page_number":171,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"f028494e-59b3-44e9-ad4a-afef9ecf5bf2","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":171,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"75e36bec-41c0-4a0f-890c-3040491760b9","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions and other","page_number":171,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"c4475106-606c-4a3b-bc39-c318843fc451","block_type":"box","text":"distributions made in the form of U.S. real proper ty interests (including shares in cer tain “U.S. real proper ty holding","page_number":171,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"e5afdcf7-8de6-497e-94fc-e554abd2541e","block_type":"box","text":"corporations”, although exceptions may apply if any class of stock of such a corporation is regularly traded on an","page_number":171,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"e8ab383d-a12a-4df3-8e0f-04c0cb083bbb","block_type":"box","text":"established securities market and the Fund has held no more than 5% of such class of stock at all times during the","page_number":171,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"294c1637-8c93-4d09-b578-775e464d90b2","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a por tion of any","page_number":171,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"b7572444-cf49-4f53-85de-ec3394f4156d","block_type":"box","text":"unrecognized gain in the U.S. real proper ty interests equal to the product of (i) the excess of fair market value of","page_number":171,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"2cdbd6dc-3929-49c6-948e-3682919b5d37","block_type":"box","text":"such U.S. real proper ty interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":171,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"92652fff-b73a-4e47-8b91-718b20be81f4","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":171,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"91a5172a-7cac-44ed-b973-dd5f78b2d965","block_type":"box","text":"A foreign shareholder may also be subject to cer tain “wash sale” rules to prevent the avoidance of the tax filing","page_number":171,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"a0cec4be-5fae-4fd7-90c4-b0650e4848b4","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":171,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"a31e483d-8fb2-476f-a7e1-a1177be75947","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":171,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"5bd05017-30bd-4018-abcf-a604569c8d78","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":171,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"32b46c98-c13a-4aef-b3c8-094bb72254dd","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":171,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"33e19002-4642-46b0-92d8-f618c0bcb3b6","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":171,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"27e602e0-8110-4a85-a346-0e87380f2534","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":171,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"dd62bcdf-4bc3-4046-a4b3-d724df0a4883","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":171,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"2073c7a5-e756-4581-a247-08b0c9d38d6a","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":171,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"81e13da5-e765-497a-96d1-6eba300149eb","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":171,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"19c17c26-73b4-4ef6-a044-15c43cd1cd0c","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":171,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"e697520e-7a14-41fa-af6f-911899cbde2f","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":171,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"d5c56c10-1762-42f1-8fb1-30b76f13a9ce","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":171,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"021e5720-a4d3-4bb2-b4ac-807789dab44a","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":171,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"8f30819e-fb62-4e52-8a13-cc7454420136","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":171,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"da1c3bd1-ae31-4e4b-b9da-a1fe23c81347","block_type":"box","text":"is on file with the Fund or who, to the Fund’s knowledge, have furnished an incorrect number. When establishing an","page_number":171,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"50fc8d43-944b-4cdb-8ace-04afe2874056","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":171,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"ce63420d-5bb6-4063-b43e-11dca3e6f19b","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":171,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"c35ec03d-29a2-4962-9f4a-975b6c6a20e6","block_type":"box","text":"may be allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that the","page_number":171,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"96d8bf6d-33cb-408f-9da7-d63e79000a94","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":171,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"4e4e9a6e-a2d5-4c53-b709-c5447519e4e8","block_type":"box","text":"If a shareholder recognizes a loss with respect to a Fund’s shares of at least $2 million in any single taxable","page_number":171,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"40894ee0-f684-43a3-afda-b5bdaeb35bb2","block_type":"box","text":"year or $4 million in any combination of taxable years for an individual shareholder or $10 million in any single","page_number":171,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"c9aa73ea-1f5e-42cb-9317-368fb43278ac","block_type":"box","text":"taxable year or $20 million in any combination of taxable years for a corporate shareholder in any single taxable year,","page_number":171,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"df41480a-fd07-4591-ae8e-376d5ff5a8ff","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":171,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"5e3752ff-59a6-4cfc-b879-fb1ad61c40e5","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":171,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"3cd507b8-ea0f-4e85-bdf8-0270995c3739","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":171,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"939852b7-0e13-4ecc-a73d-40a8441714c5","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":171,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"717143c0-53da-431f-9192-e4fc9f71512a","block_type":"box","text":"II-133","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6a6b1779-1a89-4709-9c5f-117d83c60ed0","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":171,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"3f7e31c3-57d5-41cc-9d7b-e0da59757f20","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":172,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"3b55622d-1ff2-431a-8de4-a993e4fbbda2","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":172,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"768b9926-fd7e-4f69-83f6-fde523c06bd7","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":172,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"e56e72e4-8ece-42fd-b3f6-8f23fdb263fc","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":172,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"d1b26125-5f35-49df-9fd0-c60c66184834","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":172,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"34f55824-8b5d-4f9d-887c-29298549758f","block_type":"box","text":"be offset by otherwise allowable deductions for tax purposes; (iii) not be eligible for reduced U.S. withholding for non","page_number":172,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"38f6ae1b-0cee-4020-96bb-bf9c4bd0d8b3","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":172,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"2f69d6ab-2d54-4c15-a44b-e2abaec153bd","block_type":"box","text":"organizations,” as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":172,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"6ea37bd3-818f-4bed-aba7-b3a02da3c3a0","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":172,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"de12a3c9-892c-40d9-8c25-0b96b4872412","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":172,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"1fce7809-bcd5-4935-bf9f-d0cb776e1d45","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":172,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"7298e024-fdc9-48bd-9015-ecdf787457a3","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":172,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"13ec21d9-17b5-49dd-a07d-3ca9f9551eee","block_type":"box","text":"investment oppor tunities.","page_number":172,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"0669a2c1-1c90-4b13-8844-5f2998bf19d8","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and other taxes","page_number":172,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"7815c8cd-bedf-417c-b7b6-ec72b67c3fa9","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":172,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"db612da3-3435-4535-bfbb-05d489145ca6","block_type":"box","text":"eliminate such taxes. Shareholders of a Fund more than 50% by value of the assets of which at the close of a taxable","page_number":172,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"a6dc1e1d-a8d6-44eb-bb36-42366764610d","block_type":"box","text":"year are foreign securities may be able to claim U.S. foreign tax credits with respect to such foreign taxes paid by the","page_number":172,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"01c45869-fee0-4f09-9e87-5e41b336466f","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":172,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"18c9ccc4-19d1-47b6-a93a-1acf453fae0e","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":172,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"b5a37075-ce36-44c1-9821-0c50b9638a9a","block_type":"box","text":"held in a Fund. In addition, a foreign tax credit may be claimed with respect to withholding tax on payments with","page_number":172,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"af1666fc-01a9-4293-b95f-ab2e64ccb34a","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":172,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"52cc7353-ff0a-41eb-b427-25d6e5831669","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it will not be","page_number":172,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"fec16f7c-046a-4e2f-90e9-88e32693b8a2","block_type":"box","text":"able to “pass through” to shareholders the ability to claim a credit or a deduction for the related foreign taxes paid by","page_number":172,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"a4a4f078-d3d3-4406-84df-1117a9c0fc2b","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":172,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"0e11af7c-67d1-4702-9f81-e0207856bbe7","block_type":"box","text":"subject to foreign taxes, it may not be able to pass through to its shareholders the ability to take a foreign tax credit","page_number":172,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"b03201de-5c30-492f-be20-3d8801dd51d7","block_type":"box","text":"for those taxes. If a Fund satisfies the applicable requirements, such Fund will be eligible to file an election with the","page_number":172,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"e8c02d7a-dcf4-4107-8bec-9a524fe8c4d3","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":172,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"58877768-1bab-41cb-a55f-2329fde36437","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":172,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"5575bbdf-51db-4378-9343-db683a629511","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":172,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"69870e04-b9af-4ba1-a264-175b8d007079","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":172,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"2281d7a8-d689-448f-9b23-fed6e3603562","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":172,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"2aae5a9c-b094-4236-8539-8660e34b0223","block_type":"box","text":"corporation may be subject to U.S. withholding tax on the income resulting from a Fund’s election described in this","page_number":172,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"3dd607b1-190e-444b-924d-826acf661706","block_type":"box","text":"paragraph but may not be able to claim a credit or deduction against such U.S. tax for the foreign taxes treated as","page_number":172,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"dead31e6-6c05-4906-aaf9-a5fcc31e7542","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":172,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"9ba8b869-f8ae-425b-ada5-5eb10cceadfb","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":172,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"c6025dbf-1193-41f3-8682-e7fe5073db2d","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":172,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"0c31d397-6484-4cae-9b72-c2d9847d0df9","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":172,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"f00cb07c-5b24-4757-a1f0-9eb28e9f0411","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":172,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"b86f38b7-96f0-4398-b957-36d6857addbe","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":172,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"20105e53-45f9-4112-bb6d-e0e91632f8dc","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":172,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"04493a36-6f47-4977-9736-9cca3ccddaca","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":172,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"afd1d50a-67a0-46af-a108-64863aa887ec","block_type":"box","text":"positions in its por tfolio (","page_number":172,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"5fbe294c-72cc-4919-889f-cb4787e03e42","block_type":"box","text":"i.e.","page_number":172,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"ffb21cce-f564-46fc-883a-fd9b67b93aef","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":172,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"ed9e4230-fed0-4e1d-a256-a5e6ce18251f","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":172,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"8de71a1a-411e-401d-9487-76b5e53fa564","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":172,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"66bcd326-cf2a-4135-b744-d33b5fad7a38","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":172,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"d7a4dcb3-3339-47df-b3ca-dc4809b6a81a","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":172,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"bffd8421-2b17-4e8b-9e69-c0ea64ab50da","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":172,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"c8f5efe8-1be7-46f9-9265-e2163db4ba57","block_type":"box","text":"any of the Fund’s transactions in foreign currencies and hedging activities, are likely to produce a difference between","page_number":172,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"7dbdf368-5fe1-4e23-9bb3-3dbdecd5c090","block_type":"box","text":"its book income and the sum of its taxable income and net tax-exempt income (if any). If such a difference arises,","page_number":172,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"33999903-d428-4236-a426-994e80b1e98d","block_type":"box","text":"and the Fund’s book income is less than the sum of its taxable income and net tax-exempt income, the Fund could","page_number":172,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"b16201ca-7a36-4da6-bf66-f0706a75b206","block_type":"box","text":"be required to make distributions exceeding book income to qualify as a RIC that is accorded special tax treatment","page_number":172,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"92af2189-dfb2-471c-8dc7-bdf602827bb8","block_type":"box","text":"and to avoid an entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":172,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"fd69ad16-2364-440f-a5e9-df6b64b44609","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax-exempt income, the","page_number":172,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"3bfd09ba-9337-4f3f-a7b4-ae2124177b7e","block_type":"box","text":"distribution (if any) of such excess generally will be treated as (i) a dividend to the extent of the Fund’s remaining","page_number":172,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"582eab89-6973-47a2-9eb9-ae0c7a5b3791","block_type":"box","text":"II-134","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d61abd16-8123-4b8f-9148-c8a6518cb5ec","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":172,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"34f08849-a52b-492c-9bff-e21ba5681214","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":173,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"c47bf26c-6ac6-4177-a767-b3664bfa9918","block_type":"box","text":"capital to the extent of the recipient’s basis in its shares, and (iii) thereafter as gain from the sale or exchange of a","page_number":173,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"3aec33a8-21b1-4de1-b62a-8d6c60fcbe3e","block_type":"box","text":"capital asset.","page_number":173,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"84e6ffde-be83-40f9-a6bb-ea0920072bc1","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s realized losses on sales of shares of underlying funds may be","page_number":173,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"4e7a3fc9-994f-47e1-9743-be8ee5b1735b","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":173,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"65e333e6-9f4e-41fc-b17d-4da1c60cc738","block_type":"box","text":"be recognized as ordinary income by the Fund and would not be offset by the Fund’s capital loss carryforwards, if","page_number":173,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"ff7b9b23-5cb3-4bff-84b8-18a7e297af63","block_type":"box","text":"any. Capital loss carryforwards of underlying funds, if any, would not offset net capital gains of the Fund. Each of","page_number":173,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"d199ad5d-5550-4733-8a14-b347fd4050f5","block_type":"box","text":"these effects is caused by the Fund’s expected investment in the underlying funds and may result in distributions to","page_number":173,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"eb9b9ea7-6b41-4297-bd3a-446a9f8a2d7f","block_type":"box","text":"Fund shareholders being of higher magnitudes and less likely to qualify for lower capital gain tax rates than if the","page_number":173,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"21471b3e-6218-46b0-b233-6c5a90ad6cb0","block_type":"box","text":"Fund were to invest otherwise.","page_number":173,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"c214e1eb-b06f-40dc-a37b-7d45aa177673","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":173,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"8030ad6d-8e6a-4ead-b724-accf06b79b3c","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of its net","page_number":173,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"88b596e5-6bd3-4ceb-ad3b-d2b80bdf3bb5","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":173,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"530352cb-cd89-4fd4-adfd-3dfc060b5685","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":173,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"68f4ed0e-71cf-4343-904e-555151a83289","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":173,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"f7d7e86d-96f1-47cf-9007-7146bd874059","block_type":"box","text":"to the Fund. (Previously taxed income will not, however, be taxable again when distributed.) If a net loss is realized by","page_number":173,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"5ff3e55e-d827-47c3-b0b2-eade791e3b95","block_type":"box","text":"the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s other income. It is not","page_number":173,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"deebd699-a18f-48ed-9d13-f8247c1adc6e","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":173,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"1f582431-e9b5-4a9b-a5ac-9ab0beb77d6e","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":173,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"6c0d9dc3-8f9e-4bab-a0ad-184698902946","block_type":"box","text":"the Fund will generally be treated as owning shares in a passive foreign investment company (“PFIC”) for U.S. federal","page_number":173,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"446b1e15-7a50-4780-a4d1-f326899636ba","block_type":"box","text":"income tax purposes. A Fund may be subject to U.S. federal income tax, and interest charges (at the rate applicable","page_number":173,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"f225f309-59d7-4ff1-8b42-dc67585fdbfd","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":173,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"ea40e481-148f-42ff-8f50-0ac9ba36bf58","block_type":"box","text":"a company and on gain from the disposition of the shares of such a company (collectively referred to as “excess","page_number":173,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"0a8e5beb-855c-4b1b-af03-03e6529965b6","block_type":"box","text":"distributions”), even if such excess distributions are paid by the Fund as a dividend to its shareholders. However, a","page_number":173,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"7aabbb0c-0d6e-4583-a71c-71d9d8fb38d3","block_type":"box","text":"Fund may elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":173,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"0abca2ab-3e1e-4446-86d0-28f80de0dced","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":173,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"8df00e16-8227-4518-824f-8641ce5eb3a7","block_type":"box","text":"revoked with consent from the IRS. Under this election, a Fund would recognize as ordinary income any increase in","page_number":173,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"24e97c1d-3cc8-445f-a156-1985b2ad96fb","block_type":"box","text":"the value of its shares as of the close of the taxable year over their adjusted tax basis and as ordinary loss any","page_number":173,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"d4269f59-d6fa-4132-8840-b9d7783000f2","block_type":"box","text":"decrease in such value, but only to the extent of previously recognized “mark-to-market” gains. By making the mark","page_number":173,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"8e6703e0-06de-4f6b-8dad-7a38ebe6cb02","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":173,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"923e82e8-180d-4ddb-8fe8-d4c6b249b41c","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":173,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"46ac3111-6da9-406d-87d7-220e086b6082","block_type":"box","text":"PFICs.","page_number":173,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"00aa0e91-5879-4880-b54a-943bfbfb74e0","block_type":"box","text":"If a Fund were to invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, in lieu","page_number":173,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"9b3e18e1-84ca-44d8-9bae-d743768be73e","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":173,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"1a18aa81-8ab7-48b6-b216-b56984bbbfec","block_type":"box","text":"earnings and net capital gains of the qualified electing fund, even if not distributed to the Fund, and such amounts","page_number":173,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"e6976ed2-c1a0-4a64-a85b-83cdf13b92ad","block_type":"box","text":"would be subject to the 90% and excise tax distribution requirements described above. In order to make this election,","page_number":173,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"e657f87b-ac96-45a6-9be5-ca7eb7382cdf","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":173,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"a8955672-6869-4570-bd13-bedbbf4719f9","block_type":"box","text":"difficult or impossible to obtain.","page_number":173,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"b0ed43ea-7e87-434c-b67b-c3e50e82b348","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":173,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"cd4f6b1d-eeb5-41a1-bb16-8354f64e4e31","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":173,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"450dc566-2f89-4d9c-a033-455a233a8014","block_type":"box","text":"(defined as the sum of the excess of post-October foreign currency and PFIC losses over post-October foreign","page_number":173,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"bf3eb38f-671a-4950-8a92-8329694f73fa","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":173,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"0024973d-621f-4a2c-8f03-1b60080cc8b6","block_type":"box","text":"the next taxable year in computing its investment company taxable income and net capital gain, which will defer the","page_number":173,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"258e525f-771a-4fad-8788-c13521501935","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":173,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"d4d957e7-0e60-4a22-b0f5-41eac1ca6131","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":173,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"c7a3207b-d5d9-4935-a544-29f40d925e2e","block_type":"box","text":"Municipal Funds","page_number":173,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"26a0ce72-f5fd-43b0-b67a-69bb08277958","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in Section 852(b)(5) of the","page_number":173,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"04d1dcc0-3582-4c38-be64-7c8e1bc684e6","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":173,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"aab7b94b-cb14-425c-91bc-1f0bc3cafc4b","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":173,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"f9fa9a94-539d-4753-9187-f8159725512e","block_type":"box","text":"Section 103(a) of the Code (relating generally to obligations of a state or local governmental unit), the Fund shall be","page_number":173,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"6365ab02-d789-412d-a1aa-b283f4a86e90","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":173,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"25a06f02-34d1-466d-92aa-3d055cc18a50","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":173,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"ddf1123b-cd5d-4119-ab14-149642b31493","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":173,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"6f9a21e0-ee83-42b6-91f9-aa01bcc6bea3","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":173,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"b40a1463-e525-4431-946f-4efacc58ba47","block_type":"box","text":"II-135","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cdf39ec7-edc2-4b35-9b1c-c4956495ddad","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":173,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"1dc6e09f-e749-47c1-ad47-a305bcd75ef5","block_type":"box","text":"below) among the Fund’s shareholders according to a method (that it believes is consistent with the Commission rule","page_number":174,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"9ee8beec-fd6f-4b17-9859-b06d4cb430ac","block_type":"box","text":"permitting the issuance and sale of multiple classes of shares) that is based upon the gross income that is allocable","page_number":174,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"b3908f80-7d8b-430f-93ba-62a2faf74965","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":174,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"b8a7f605-e2c3-439d-aa03-fd3b6db61e10","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":174,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"2f82c56b-cc5c-4569-89ea-eca7ddc3b332","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":174,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"444ef88a-7e9f-4da2-a00e-2b6f56d8f5bf","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":174,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"c74b4884-baae-4fd5-9068-621a96cafc6b","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":174,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"914008fc-deeb-437e-9280-5a622269bcd9","block_type":"box","text":"the Fund, will not be deductible by the investor for U.S. federal income tax purposes to the extent attributable to","page_number":174,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"2f87541f-c04b-4e95-8323-6bb960c3be53","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":174,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"5a46991c-1365-4c2e-a1be-8eb580fdda8d","block_type":"box","text":"interest dividends retain the exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial","page_number":174,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"951e9a6c-86d8-4f67-87e6-0f76f28a72b6","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":174,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"a09d08d6-e9b0-40ac-b1af-6f23e4eebefd","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":174,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"ff53e9e7-f540-447b-8478-2ac97a99e747","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":174,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"63cd5ca2-b4a2-46bf-bd20-044decb19c82","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":174,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"62308ad4-930b-438c-8a28-6476bea40b2d","block_type":"box","text":"constitute exempt-interest dividends.","page_number":174,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"6381e95f-b3f6-4c61-b45e-003e6bd32c7f","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s","page_number":174,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"79025ce7-b19e-4ae3-9d95-ed5cb84e5a3d","block_type":"box","text":"shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to such holder (assuming","page_number":174,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"7b9a232f-0d89-43cb-a453-205a9dc75eda","block_type":"box","text":"the shares are held as a capital asset). Any loss upon the sale or exchange of Fund shares held for six months or","page_number":174,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"3b114d92-111a-47d9-8bd8-d903599c0b7e","block_type":"box","text":"less will be disallowed to the extent of any exempt-interest dividends received by the shareholder. In addition, any","page_number":174,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"464f702f-9bbb-4a69-ac01-8730af7b3fbb","block_type":"box","text":"such loss that is not disallowed under the rule stated above will be treated as long-term capital loss to the extent of","page_number":174,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"1c7be74b-9958-452d-a138-d34607ce6416","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":174,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"ef3cc217-26ad-42e2-a45d-6f2c8f2be9f5","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":174,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"702a0041-71df-452b-b72b-9b6bfc85238a","block_type":"box","text":"discount will be treated as ordinary income rather than capital gain. This rule may increase the amount of ordinary","page_number":174,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"3112c534-50c0-4b6d-8d38-f87c11873598","block_type":"box","text":"income dividends received by shareholders.","page_number":174,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"edbd49f0-e087-4dd3-8abf-fa10a1c999a7","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a bond","page_number":174,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"d1399ce5-ebe2-4e8c-8fa9-1e880fcfc7c2","block_type":"box","text":"acquired in the secondary market at a price below redemption value or adjusted issue price if issued with original","page_number":174,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"efbaa4f3-acb8-4d3d-8d2b-ef3900d7cebf","block_type":"box","text":"issue discount. Absent an election by the Fund to include the market discount in income as it accrues, gain on the","page_number":174,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"58d40579-3642-48b7-8ae8-b15c0031c3e3","block_type":"box","text":"Fund’s disposition of such an obligation will be treated as ordinary income rather than capital gain to the extent of","page_number":174,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"6741debd-f3ea-449d-bbf4-eca753839503","block_type":"box","text":"the accrued market discount.","page_number":174,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"e272c07a-30cf-403f-a9bd-c10f2bfabf94","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":174,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"ede74217-169a-42c1-bfed-27e19a91199b","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":174,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"8bfee87a-faea-4c49-94aa-7a523b6c9add","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":174,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"a1354973-5e05-41ef-9441-c5549d7e35c5","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":174,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"014a1d98-fd7a-4d42-899f-3a2ef7432c10","block_type":"box","text":"e.g.","page_number":174,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"261dc0ed-7469-41a7-908a-1a178f305bfb","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":174,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"d06d6911-7449-41a8-a04d-67ba440fa5bf","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":174,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"1b4d592c-426c-46b5-a9e8-6afab67268ea","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":174,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"9b2db3d6-bbf0-4800-ab64-6a59f52bdffc","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":174,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"e4682ac2-39f6-45a0-b87e-bf8a76bd851e","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":174,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"80490256-978d-4c71-b832-c400d1c3b7d2","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":174,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"5072d0de-215c-4f37-974a-6b8bc72161c0","block_type":"box","text":"the taxation of interest rate swaps are not entirely clear and may require a Fund to treat payments received under","page_number":174,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"997713b3-2d47-421c-8b81-d2cf131b2089","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":174,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"01fea048-5539-499f-ae4c-ab42cebcd98d","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":174,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"cdd2affe-6dec-4100-b0bf-e820b712b422","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":174,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"28ccccf4-cb94-45b1-ad06-26d01e969c6c","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":174,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"3e77ea13-c313-4936-868f-5df7830fe7e9","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":174,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"4478550a-e7e8-4f52-b00b-80abf7c12996","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":174,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"9d0feacf-65d7-4c45-a2bb-7503b363dd43","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":174,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"798092cb-a48f-40d1-81fd-7fdc557a34b1","block_type":"box","text":"within each applicable state.","page_number":174,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"6e7b3043-9dde-45ee-8507-aef593fb7c71","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":174,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"c02a3377-887e-412c-aa63-ca87fde5e973","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":174,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"510de601-fa9b-48be-a966-b1bbee1e887c","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":174,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"470ce432-fa1e-4d8d-b03e-e1335f81da65","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":174,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"1249d7f7-3dbc-4658-8383-551801fe55c4","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":174,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"f7e9ef12-4339-499a-8719-99427fabba01","block_type":"box","text":"its discretion, the appropriate course of action for the Feeder Fund. One possible course of action would be to","page_number":174,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"788f6be3-3847-4cb3-be2f-e27114d80120","block_type":"box","text":"II-136","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"486f17b4-df62-4529-b4b8-9b34e07918f4","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":174,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"4563221a-2fe4-4ca4-8501-d309338a4127","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":175,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"2f5f44ba-95c9-4012-bddf-a98d1c025e5a","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":175,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"92627a05-e923-4e00-8c56-3d90cdefea13","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":175,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"2f9522ae-89e4-452c-bda2-20a2b5bc6aec","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":175,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"a0b36431-ce87-4bfc-aebd-8df7053b457d","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":175,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"f63971b5-b0e0-407f-9df4-be196dabf964","block_type":"box","text":"exempt from state income tax.","page_number":175,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"ced561fd-4964-4db9-b046-361b70119edd","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":175,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"966d47f9-95c1-4392-9e4e-8a3e57968c52","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":175,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"eb513b78-ed28-439a-8cbf-d71f36e6f9f6","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":175,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"0f9550e1-f073-4c2d-9f14-67714a395876","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":175,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"8fb991bf-b916-454a-bc9b-d31262599eda","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":175,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"7e3f1cca-d4a6-4f8b-8ec7-d9d98dd7919f","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":175,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"409c3a8c-13e4-4e84-ab3c-9aab54fc9f06","block_type":"box","text":"decisions may have a retroactive effect.","page_number":175,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"1ac0b2a4-2daa-4176-b495-5213a636e282","block_type":"box","text":"PERFORMANCE DATA","page_number":175,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"3e4706a9-64dd-464d-b81e-6503fead4a57","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":175,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"d270fe83-b2e0-479e-8932-6addfefb0c18","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":175,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"5b7f45f4-3bca-4f34-9000-b002169e3c56","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":175,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"e9c93d1e-e1b3-4e43-8457-7909988903df","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":175,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"a2ba1970-1424-4436-bd96-fab22ba6c11e","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":175,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"940de013-fa89-437e-8911-7c9afacdad6d","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":175,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"082e0343-d4d0-46c9-b75d-bc1f3ae59123","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":175,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"14975fb6-800d-4baa-93f6-2a74fc3191ca","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":175,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"578ef9da-58f9-4bf1-8b79-0133a238368d","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":175,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"f7cc9052-e218-4294-8d5b-9f7f91ff8f66","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":175,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"04301ef5-15b9-43fa-b3c3-36d86f1a6c8a","block_type":"box","text":"expenses, including the maximum sales charge, in the case of front-end load shares, and the CDSC that would be","page_number":175,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"c86c4f3f-0f3c-4965-959a-15c5339fcfd9","block_type":"box","text":"applicable to a complete redemption of the investment at the end of the specified period in the case of CDSC shares,","page_number":175,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"765ca84b-a181-4937-a4bd-3c5242d6d973","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":175,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"3cffc4bd-b504-4976-a560-f09bf8279a5c","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":175,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"4bd70a3f-b400-4a28-997d-59d9dd4126e0","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":175,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"6177eb1a-00b0-4f1a-9095-91df99e01bb1","block_type":"box","text":"value of such investment at the end of each period assuming payment of taxes on dividends received during such","page_number":175,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"ef535f1b-15d4-4b3c-9692-d402ca6d0d8b","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":175,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"076776d9-5155-4718-aae6-78a477583fdf","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":175,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"8b454b5b-3d9c-46f0-9aca-44656f33f151","block_type":"box","text":"including the maximum sales charge, in the case of front-end load shares and the CDSC that would be applicable to","page_number":175,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"8db0cbce-48d1-4374-87ef-e7339745411c","block_type":"box","text":"a complete redemption of the investment at the end of the specified period in the case of CDSC shares. The taxes","page_number":175,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"4148f4ae-a903-4bd1-80c1-14075d129c12","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":175,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"972e7137-3729-4205-a6b0-d5700ec4b5b0","block_type":"box","text":"income tax rates in effect on the reinvestment date for that dividend. The rates used correspond to the tax character","page_number":175,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"63de19da-5d75-4823-9634-9d67e4a810d1","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":175,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"37fe6ea7-b43e-4842-bcbd-3593d6d836f4","block_type":"box","text":"taxable amount and tax character of each dividend are specified by each Fund on the dividend declaration date, but","page_number":175,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"a58a0d73-93ac-41a6-a57f-3ac6592d1d60","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":175,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"36c7d5c1-baac-4a34-be77-4418511d6116","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":175,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"25a884eb-15ca-4914-bcb2-5f9e1614fab0","block_type":"box","text":"credits, are taken into account according to U.S. federal tax law. The ending value is determined assuming complete","page_number":175,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"9db37149-1705-493a-b160-5fb839e722a4","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":175,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"a201f024-e9f4-4c5c-b37b-f1a0ff42d7a0","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":175,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"3f738a68-c44d-4b36-9d98-82780f4c6994","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":175,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"6e671eac-2d0f-4727-a421-2c4f0a9e5132","block_type":"box","text":"invested to the ending value of such investment at the end of each period assuming payment of taxes on dividends","page_number":175,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"056efc6e-f0c3-49c6-a13c-dfbf7b604b06","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":175,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"775e4d54-7fd9-47d0-9748-9dcd08db3396","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":175,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"7ac30fe0-1630-4e5f-b94e-2b7ed4243bff","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":175,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"9c830863-b2c4-4705-9459-f4f7f9d0d4e0","block_type":"box","text":"charge in the case of front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":175,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"4f8589fa-4d59-431f-a3a0-6de0fa435c47","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes of shares,","page_number":175,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"3f2f31a1-399c-4a6d-8b21-761e12593d3f","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":175,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"f20277fc-6cfd-4d2c-b86e-e15d250e53f8","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":175,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"06597492-d009-4599-8941-4e3f12a3d3bf","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":175,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"817a83e6-8d2e-40e1-8fcd-84d0d35d29ff","block_type":"box","text":"II-137","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"15810ed7-81ee-454c-b03a-15ef843479b0","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":175,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6a556645-041b-43cd-93fa-e3ed1f4139fc","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":176,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"e41ac281-c5a6-4e5c-bdd7-c4c6f41185e2","block_type":"box","text":"individual income tax rates in effect on the reinvestment and/or the redemption date. The rates used correspond to","page_number":176,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"7dbb83c1-eaea-4373-bd23-2fdf7fa6f635","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":176,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"fed1a90e-56f2-49b1-980a-4bc116001b2f","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":176,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"0109d8fe-dd99-44ae-a93e-f80c3f6d654f","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":176,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"d6c35f2c-a8f2-4431-a0d7-e35663efff17","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":176,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"fc69a86a-4d49-4535-938c-14428ee49eb2","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":176,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"ca37eac0-acb9-49fb-af9a-c65c5f074f05","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":176,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"22767591-511d-43d8-98ba-ce71b9235eca","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":176,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"cfa42c60-355d-4645-8615-0da958880362","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":176,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"c158339e-44f5-4e57-949f-fa512f9a8796","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":176,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"3f1de294-956d-474d-8e1a-f415b31397f0","block_type":"box","text":"will not be included with respect to annual or annualized rates of return calculations. Aside from the impact on the","page_number":176,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"54b8e827-d5c4-48f8-a65a-4b74ddca73d7","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":176,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"72515c42-3142-4a85-b1f6-5165dd00275b","block_type":"box","text":"annualized total return data generally will be lower than average annual total return data since the average rates of","page_number":176,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"98c8b508-064c-4e2d-95ec-2b037b073cd6","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":176,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"84a3bfb5-0889-465b-87fd-c27b31787391","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":176,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"00d72200-f4c6-46f8-b378-89e02f786b04","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on the yield of","page_number":176,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"ee63d70e-ad71-4087-b215-2009615da6e7","block_type":"box","text":"each security earned during the period by (b) the average daily number of shares outstanding during the period that","page_number":176,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"240f2827-1c87-4bab-87c3-e57d75b5793c","block_type":"box","text":"were entitled to receive dividends multiplied by the maximum offering price per share on the last day of the period.","page_number":176,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"fcdfe8df-02cd-4a35-bb3c-4881d5132cb7","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":176,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"2431c280-c0ea-4e04-b0da-021eb29bc8a8","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":176,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"6ca3c53f-4f90-4b42-8d61-0527b408a227","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":176,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"07eea4f9-1c7c-4c10-b986-0cde3a65f95c","block_type":"box","text":"Fund’s operating expenses and the amount of realized and unrealized net capital gains or losses during the period.","page_number":176,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"ad71f0ac-4ae9-4198-935a-1b471d231e5f","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":176,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"af3d7b5e-d5d4-497d-b6c4-ca83ee276928","block_type":"box","text":"less than their original cost.","page_number":176,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"d85183ae-472d-4c45-a878-cb5cd2826fdb","block_type":"box","text":"In order to reflect the reduced sales charges in the case of front-end load shares or the waiver of the CDSC in","page_number":176,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"c9053a25-d3dc-4d1a-adfb-67cf507b6cd3","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":176,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"704420ae-95ca-47a0-8930-45386f19aa63","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":176,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"7ddaaf88-04fa-4f11-9e55-3e1eac790091","block_type":"box","text":"take into account the reduced, and not the maximum, sales charge or may take into account the CDSC waiver and,","page_number":176,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"fd0236d5-4fb6-4a53-a558-e3c8ce381780","block_type":"box","text":"therefore, may reflect greater total return since, due to the reduced sales charges or the waiver of sales charges, a","page_number":176,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"f7d45971-1b6f-4624-9677-9e0442db6aa1","block_type":"box","text":"lower amount of expenses is deducted.","page_number":176,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"1750b833-cb48-40cd-a8c9-69c31db3a2f8","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":176,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"df41ba90-0bdb-4628-816c-8e6e40d46618","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":176,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"a42f246f-2936-4691-8d75-90df3ac8ceaf","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":176,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"b42f9471-783e-4143-ae02-19292dc2b848","block_type":"box","text":"Money Magazine, U.S.","page_number":176,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"06cbc832-15bb-414f-86e5-63a49137548f","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":176,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"446fbca6-a2ac-4669-a82d-eb4623f60bcc","block_type":"box","text":"or other industry publications. When","page_number":176,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"893c61fd-7c0b-4a94-9329-fc56f8885ddb","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":176,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"c6dca062-3e11-44b8-ac98-9d32535fc182","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":176,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"a87ee363-e852-499d-b25e-5988536e0bc4","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":176,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"0acb4583-a3da-448e-a5d8-acabdeb67c29","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":176,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"9031b476-4b9e-4f4d-b8b2-5d30749f97ef","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":176,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"835d2519-7b14-4984-bfec-0af9c67e5ba5","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":176,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"8fea7515-47ef-415a-b31d-ed38e343eeec","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":176,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"dfc866b2-4549-4d59-aa9e-6869a32ad9e3","block_type":"box","text":"developed by Fund management.","page_number":176,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"fbbce788-08f5-4b2d-8e1e-e4c364988386","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":176,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"4a99fa57-ec30-49fc-9726-edcdd28e69ba","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":176,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"672d8b6f-4271-4699-8cef-2f42fa9a7a1d","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":176,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"364e2b91-7a0d-4a0e-a5c5-05adfe2a2471","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":176,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"9847da86-73b0-44d4-91e3-bdd45feacd4d","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":176,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"6adca0fb-3add-4b44-9c40-8d8e32d2b692","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":176,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"115ebaf9-fbdc-4c98-b814-1b5577fc0972","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":176,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"423186cb-bd6b-42c1-9de1-cd63fd401375","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":176,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"949ce764-14d5-42c6-b423-fa89401ad788","block_type":"box","text":"II-138","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1afdddc7-45b4-4852-9063-60f09b84b402","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":176,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d3dd5852-4533-49b7-b11e-f1f71dd8282c","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":177,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"f4579b38-4960-4a6b-8e56-fa6de19d088e","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the Manager","page_number":177,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"749446a2-5c00-4743-9ba3-c89ca7db23aa","block_type":"box","text":"pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the “Active Fund Proxy Voting","page_number":177,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"4aa515d5-eed8-4c24-bd5f-67e64fb6762c","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":177,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"004f004f-57b7-47f6-8705-f2c32d8bd328","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":177,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"4cc0d4df-dbb2-458d-8826-83040cd407ba","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":177,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"2c193252-fb98-4c4c-8c1b-efeb043462fa","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":177,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"e56fd1af-92b7-4f07-8f9f-f108e9b5fb1a","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":177,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"ef4e584c-f893-4505-8f02-1da7e77baa08","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":177,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"ba797fef-19b6-4b35-928a-9760bb05da9a","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"6d7c0992-06f1-48b7-941e-db005bb3ebfe","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":177,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"1f01b5c9-9dd1-49b6-b0a4-2770781cae5a","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":177,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"a86fe4e1-28c1-44bd-9080-721f95abdcdd","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":177,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"57c066d8-0eff-4361-b9b6-a4b6fa8f0144","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":177,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"55a6911f-fc01-4ed9-b068-cca51d76bccc","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":177,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"454330f3-1208-4250-a355-a72f1fde7133","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"0fa7d00b-e0bb-4278-8f0e-6c03ee5047f4","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy when","page_number":177,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"1bf213a5-9f69-43c4-901e-5ce6456d84df","block_type":"box","text":"voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy when voting proxies","page_number":177,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"bef451ce-3e9d-47a0-8b41-82f79feb2fde","block_type":"box","text":"on investments the underlying fund holds. Therefore, the Fund may use the Active Fund Proxy Voting Policy while an","page_number":177,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"156c434e-954a-431a-9d00-92d9d254033a","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":177,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"b1cf4d3f-94d7-4ea7-891a-9a1d7b22816f","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":177,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"a9f06fce-95a2-4537-b062-2381edc6a500","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":177,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"b9c2d392-508f-4305-9e80-cda4cd9bb1d4","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":177,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"c3f7457a-29c2-4398-91ef-f430d7250ee1","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":177,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"e55ef329-76fb-467a-b026-14f148c88573","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":177,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"3455b84f-cf3b-4504-ba1c-1fef30eccdcf","block_type":"box","text":"month period ended June 30 is available without charge, (i) at www.blackrock.com/proxyrecords and (ii) on the","page_number":177,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"67e2f6ae-507f-450e-9d7c-19d3d5a819ce","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":177,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"c365eb21-2b07-4d6c-aff0-8fb558649b4b","block_type":"box","text":"GENERAL INFORMATION","page_number":177,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"a8fdfee1-ec1f-43a0-ad2c-ca131f37cdbd","block_type":"box","text":"Description of Shares","page_number":177,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"b39a4017-701d-42b0-8d37-00338cfb4e3a","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for fractional shares","page_number":177,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"9ff708d6-c3eb-41fb-9153-ba75d6334cea","block_type":"box","text":"held in the election of Directors and generally on other matters submitted to the vote of shareholders of the Fund.","page_number":177,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"2e405416-d988-4d98-9704-a0ed0fac238f","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":177,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"2f2074c9-2a9b-4573-82de-ff65ee1c5e82","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":177,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"793312ff-3ee2-4918-93a4-3c0db7f7c759","block_type":"box","text":"more than 50% of the shares voting in the election of Directors can, if they choose to do so, elect all the Directors of","page_number":177,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"de762286-998e-451a-820b-a02c057d2983","block_type":"box","text":"a Fund, in which event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":177,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"b9acbddc-63f4-479f-8a13-7c33216f3a46","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment Company Act does","page_number":177,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"2637c338-05e7-4e97-ba83-e6c7494751e0","block_type":"box","text":"not require shareholders to act upon any of the following matters: (i) election of Directors; (ii) approval of a","page_number":177,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"7bc5545f-bca6-4473-a4b6-15afa8298a72","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":177,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"62c6f3b4-7c21-4e69-b8a3-42860dee2ead","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":177,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"3360aa80-97ed-4675-b5a8-25cbced268e5","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":177,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"aa5b73c0-8fb4-488c-a2a4-a974897cbb08","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":177,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"c80bc9fe-3e6b-4dc9-aa6c-86fe946a4e39","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":177,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"804fcc5e-4c57-4563-99d9-0c5f5a894f38","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":177,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"b5e8d774-2a89-41cb-bae6-0cd9fe21f3d7","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":177,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"17f49e1e-3e17-4b07-9158-83e5fb06702e","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":177,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"21bbeb02-d2a5-44d8-b5fc-15024fb1ba5f","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":177,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"38624abf-0b82-499c-a582-93e908753f71","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":177,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"4d1c1d7f-3aee-49b2-bed9-d07c557983c7","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":177,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"0414566f-3bb5-4124-bdd4-106aa1c5791e","block_type":"box","text":"with all amendments thereto (the “Declaration of Trust”), is on file in the office of the Secretary of the","page_number":177,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"e9a76182-a026-4a02-a4d4-02fa2a2c4c87","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":177,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"e867af20-ee2d-4283-a960-f850be284d3a","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":177,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"d8b176ce-932d-49ba-8e15-59609dfd4f56","block_type":"box","text":"II-139","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d67b8873-057b-4b94-97eb-8a2c1d9efe26","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":177,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c99d5c56-4d7d-4e90-a153-20bdf7c737c7","block_type":"box","text":"shareholder held personally liable for the obligations of the trust. The Declaration of Trust also provides that a trust","page_number":178,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"8ba1436f-a5f2-41fc-b924-8706a37c8e9b","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":178,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"317647cc-4071-4dd9-9a7a-27ffa69a49db","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":178,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"9950861a-5a52-4978-8dd0-4bb59bea8a1f","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":178,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"ad9192de-31da-483f-ab47-cc8263cb7b5d","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":178,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"85f6adb9-d245-457c-967d-112cd79c5540","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":178,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"9e37e85e-bd38-4f0c-958b-547aac60cfe7","block_type":"box","text":"Additional Information","page_number":178,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"26fa5015-a51d-40ad-9ee1-729e23103edb","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":178,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"6cb24af2-0d7d-46f6-85d8-31847a33ca5a","block_type":"box","text":"has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the Fund ceases to retain","page_number":178,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"33d4a6d3-570f-4b47-88b1-39e2ac2829d5","block_type":"box","text":"BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as investment adviser and (ii) to grant the use of","page_number":178,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"8f79b0be-1a25-45ab-9eed-57a2fc726626","block_type":"box","text":"such name to any other company.","page_number":178,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"42f268ac-4fd3-4c9b-bf23-da1fe6c04225","block_type":"box","text":"II-140","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6d08ccaa-6fd2-4f39-8c2c-9be59ff4477e","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":178,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"80d097d8-1ca0-4a6a-bd77-1e6ab5b00a4e","block_type":"box","text":"APPENDIX A","page_number":179,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"9f8a8a0a-7346-4c32-9378-f12fce775ef8","block_type":"box","text":"Description of Bond Ratings","page_number":179,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"0cb0a5b8-4b94-4c19-96e9-f5b950fd448a","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating agency","page_number":179,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"bb8ba851-8332-4fb7-bac2-032f2a33a0cf","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":179,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"4217379d-1288-47ea-9f9c-7ab910ed5eae","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they under take no obligation to do","page_number":179,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"1a78d0df-6e58-4ce4-a266-b47a34d04d7a","block_type":"box","text":"so, and the ratings given to securities at issuance do not necessarily represent ratings which would be given to these","page_number":179,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"b690783b-840d-42e1-b8c4-2762304c9ad9","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":179,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"ba476289-dae0-4091-87ed-7dbc219a01b5","block_type":"box","text":"NRSROs may rate specific investments (","page_number":179,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"3b19466a-214a-4a8e-b043-0b2af03d799b","block_type":"box","text":"e.g.","page_number":179,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"73b8754d-8864-4f2c-b598-8b1c4b9d0744","block_type":"box","text":", bonds), issuers (","page_number":179,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"01fed083-3621-4586-b02f-364e7e53ce8d","block_type":"box","text":"e.g.","page_number":179,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"38cf9fb3-c96b-4ac7-8fed-2344db23164e","block_type":"box","text":", corporations, governments and financial","page_number":179,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"ac6164fb-985f-4e6e-80e7-a0734fe1f569","block_type":"box","text":"institutions) and/or programs (","page_number":179,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"43ace16b-5f33-4729-b720-0c8800489411","block_type":"box","text":"e.g.","page_number":179,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"90c8cc37-5490-4970-9238-f645d1259282","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":179,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"36f5e493-f879-4a9d-9973-b627489d111e","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":179,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"c965e9f5-04ad-4e09-8d96-66f4902a1c97","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":179,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"4c33f9d8-1fb0-46bb-9ede-291100588457","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where an NRSRO has not rated the","page_number":179,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"5bff261f-56db-4836-90c5-589dde57e8f3","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":179,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"b40a7e7f-f1a9-4bff-a0bc-2f8e7cb49631","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":179,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"f68e3bc9-0a53-4da1-8a91-3510583e21e6","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":179,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"3a9d880f-9a91-425c-afc7-561a23771e7f","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":179,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"786fcfa8-1661-4a71-9476-8f8318e3582e","block_type":"box","text":"security (","page_number":179,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"9a6ee804-46c2-4a61-be55-aee16f9e5f7b","block_type":"box","text":"e.g.","page_number":179,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"37d6c346-4986-497c-bbef-08e079cd444b","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":179,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"1cae3092-013f-41fb-9a5d-262a8785cca5","block_type":"box","text":"highest of the multiple ratings.","page_number":179,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"52f12c7c-ebcd-4d1c-b838-e96ac6a6a4e2","block_type":"box","text":"New issue securities (regardless of type) may not be rated by an NRSRO at the time of their initial offering.","page_number":179,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"1765864c-30fc-468b-bc51-b0c1d9898841","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":179,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"4901b419-8ec6-40c8-82e1-18f7ea99c3dd","block_type":"box","text":"determined by the underwriter and/or issuer) or an NRSRO rating for the issuer of the security. If applicable, when","page_number":179,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"a1743b69-fbf0-41ab-ba2b-98f6b4b5d21f","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by an NRSRO, BlackRock may","page_number":179,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"2fad1512-c134-46ab-9a07-1ece3c16d234","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set for th in the","page_number":179,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"e7103876-db54-42ae-af1a-7b2182e970a4","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in","page_number":179,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"a1087451-4203-4818-a434-a63ea1dda62a","block_type":"box","text":"the preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of","page_number":179,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"2047db67-9885-49fd-9181-1e964410544c","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":179,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"1c375f82-ea2c-43ca-a6a7-42a9879d08cc","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":179,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"f74f3c10-1941-4843-9906-68eb07379c30","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":179,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"35d84a3e-19d9-4d9e-918d-f430c2b24621","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":179,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"00819a4d-dc39-478b-93ff-2fb9c2ff2c90","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":179,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"0956d2eb-3dee-41ee-a070-850e4b20515f","block_type":"box","text":"invest, directly or indirectly, in securities that are not rated by a rating agency or securities with a credit rating that","page_number":179,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"84ad3382-10aa-4098-8267-2da645c20384","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":179,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"b38cd2a5-3971-451b-afda-1acfaf797dd7","block_type":"box","text":"downgraded but not yet removed from an index, following the removal of a security from an index prior to its sale by","page_number":179,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"bb2ccab1-f38f-4cd8-b2ec-d46f5b6033fc","block_type":"box","text":"the fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the fund.","page_number":179,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"8d6ba3c8-82fb-4c7f-aac3-c7ac0e48fc52","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":179,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"9aa48b00-e054-4d29-b0c9-31a998de5ede","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":179,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"89f8c08d-ac98-4fff-81d8-59688157e388","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":179,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"03549201-6766-415c-a692-f23afa5bc7c0","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":179,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"dab0195b-8048-4a3f-a7cf-55deca8fb0ef","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the effect of","page_number":179,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"c4d1b091-2f23-4f08-9dfc-aa5c6f41c42e","block_type":"box","text":"recent developments on the issuer’s ability to make interest and principal payments or on the likelihood of default.","page_number":179,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"7ef5ca6f-d500-47b7-84cb-0edb7dc49411","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global Ratings and","page_number":179,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"bf7c3bb5-1a89-459c-a1fa-218ba191f121","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":179,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"fdf6d02c-0ae5-4b10-99c2-ac1abe9129f0","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":179,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"67b05fe8-f683-4034-bf35-bd97096a3cbc","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":179,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"3b05064e-3a42-497f-807c-a2829aad3f02","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":179,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"e2e412e6-aaf7-4fc6-b391-7625422f211a","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and shor t-term rating scales and are forward-looking","page_number":179,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"0dc257bc-c740-4eb5-90d8-acc56a4d72ca","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":179,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"614448cf-4436-436a-bc83-c333e1ea0ada","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":179,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"8aafa21a-2b21-434c-8d71-9082e531490b","block_type":"box","text":"risk that an entity may not meet its contractual financial obligations as they come due and any estimated financial","page_number":179,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"87f8787d-5bdc-4ad1-a6b4-68994b6e67ba","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":179,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"73bdd4ae-eb66-459f-be2b-8d52a271af54","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based","page_number":179,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"36969915-c264-4c94-b33d-0dca4d60da8e","block_type":"box","text":"upon standard sources of variation (","page_number":179,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"675d243f-bd66-4f58-9a1d-810bf2c0ed24","block_type":"box","text":"e.g.","page_number":179,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"b7102f0c-59a5-44e7-96e6-038c024542be","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":179,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"23679e2c-1f8d-4235-b988-8cf867510179","block_type":"box","text":"A-1","page_number":179,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"6a8906a7-cdf5-4bf8-b59d-a4ffc3d127e1","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":179,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"e639ca80-9bb5-42d2-9c7d-7e2019c8eeef","block_type":"box","text":"the issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do","page_number":180,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"b3c33104-6bf0-4357-aac8-1358d473cc66","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":180,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"796bf261-bb14-4731-8ac8-ff00a2dc708c","block_type":"box","text":"e.g.","page_number":180,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"ada1d450-b2c5-4dd6-b104-1a75649649dd","block_type":"box","text":", equity indexed), absent","page_number":180,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"9a6e487a-7fd1-433a-8821-5d13054423d6","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":180,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"3097a9ed-02ad-42cf-b2b0-47e2af269139","block_type":"box","text":"assigned to issuers or obligations with an original maturity of eleven months or more and reflect both on the","page_number":180,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"931ed00c-701d-4016-a152-8c0064c80a30","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":180,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"eeae068a-5589-4369-b5b1-0bf891f9b696","block_type":"box","text":"the event of default or impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen","page_number":180,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"2f70629a-3805-4c4a-9bfc-85743bea87fd","block_type":"box","text":"months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and","page_number":180,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"ffb1cf4f-8138-4a6e-ad0f-59f6996bf4f3","block_type":"box","text":"the expected financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":180,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"97f58420-209f-4817-90dc-e2e69275314f","block_type":"box","text":"and instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly","page_number":180,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"4822c7cd-0ed3-4527-9455-c9c3f89ae5cf","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":180,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"dbacfee1-4325-4670-a8a2-42a89ff49b27","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":180,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"415a435f-c9fc-4aec-ae3c-1a143f6a8e8e","block_type":"box","text":"i.e.","page_number":180,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"8142e6d0-0532-43f8-8d7c-e7bbaaa3198e","block_type":"box","text":", ratings on nonfinancial","page_number":180,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"bc7ba309-6625-40b3-90dd-db3265f86c3c","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to all structured","page_number":180,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"3c3dd7c7-2717-48ca-a1c6-ca3ca219dcac","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":180,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"9e9f8642-e63d-488f-a094-84606f1211fb","block_type":"box","text":"and fundamental ratings at the same letter grade level will behave the same. The (sf) indicator for structured finance","page_number":180,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"c7c08774-041a-4b80-a36f-070a61f50244","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":180,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"7366544e-f2e1-414e-a388-a5228395c776","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":180,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"ed5b599f-cf1e-4cc8-a232-69fac31579b0","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":180,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"33724d61-a096-486f-83a8-c9217c91a34f","block_type":"box","text":"of time.","page_number":180,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"2373a2c5-d295-4328-b418-a688448b04e2","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":180,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"a9285c92-5a03-4b9d-ae5f-2a20ba810c0e","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit","page_number":180,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"a5fff246-f0c8-44e7-a83c-527fe3cafa6f","block_type":"box","text":"risk.","page_number":180,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"a16ee4fc-96eb-4b59-944a-a733d039e302","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":180,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"6f59f5c2-3188-4f55-b745-46839cbecfd4","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":180,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"aaa36156-72d4-4a40-b7f9-d10bf3db7ad4","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":180,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"440859b7-0fd2-4532-8f3c-951548d40b12","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":180,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"35b4c463-22a6-428e-bdd7-eaeb53da3678","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":180,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"f2e47d31-29bb-4422-b1cf-72d4ec34bb63","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":180,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"3859b41f-62fc-4e62-bf52-41a38cc3f62f","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":180,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"52026d4e-86b2-423a-856b-132c29f3028e","block_type":"box","text":"credit risk.","page_number":180,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"5ba51e58-1187-49a1-9cca-025bbaa13f3b","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":180,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"d5658bde-34b2-4c77-947e-56f6a8ca7323","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":180,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"1503a2d8-6267-4491-818c-2f9db621f303","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":180,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"7590de50-4cf7-4389-8a0b-c642f903db8f","block_type":"box","text":"of principal or interest.","page_number":180,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"917efdd4-7069-4ddd-8939-2abf1fec0fe2","block_type":"box","text":"Note:","page_number":180,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"660879f5-fde6-41e8-abd0-0de2f8493def","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":180,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"778b8fc4-4a93-4d80-951f-11417dfb0818","block_type":"box","text":"Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2","page_number":180,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"1e3441c2-d587-4430-8d77-0431b282c3e6","block_type":"box","text":"indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.","page_number":180,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"dbe93c77-17f6-452b-8026-98a23d2cc58a","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":180,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"96d5ba3f-14b6-47d6-a7b5-977171e97d3f","block_type":"box","text":"companies, and securities firms.","page_number":180,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"cf66ed21-13ed-471f-875f-5c68e47838be","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":180,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"4e4754a8-294a-42cc-a13f-105a866bb483","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":180,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"748cdc92-145e-424a-a9f6-da5ce040e227","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":180,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"30047a5d-f5c3-4daa-a398-70a6aac518c7","block_type":"box","text":"long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with","page_number":180,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"7b9a1fab-142a-45fb-92ee-8914238e41a6","block_type":"box","text":"that security.","page_number":180,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"8cbd897f-0fdf-4d89-ac0b-15ae880a6a44","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":180,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"d8ae52e2-0e63-43b6-91b3-ecfefb178a0d","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":180,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"28fa54f1-cb71-4fe1-9464-46698f03fd8a","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":180,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"02fd6d06-f0a0-4314-9589-caded1fdc05b","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":180,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"308b8206-376c-43b4-966a-aa4da2b764dd","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":180,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"fef6f6da-5802-4a40-b3b8-75834ee24add","block_type":"box","text":"categories.","page_number":180,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"dc0c0440-0db6-4f5e-b0f1-f81a2f6313af","block_type":"box","text":"A-2","page_number":180,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"1d0f28ca-15b1-4062-8d47-18aa1f4a4a6f","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":180,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"acb38f98-2692-4e33-a33d-22aefe2a4c05","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":181,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"df9e6b8d-781b-462c-9d10-d2e00180816a","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":181,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"c3c10728-5e18-4d4f-9cd2-e7389fe3ee4c","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":181,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"79a0cd3b-1c32-4ce1-9753-6ee5504421a3","block_type":"box","text":"an issuer’s self-liquidity.","page_number":181,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"edde19ad-b736-4411-82c7-9a949591a3f2","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":181,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"5443c4ad-f1e3-49ea-ab62-6681d8e4674a","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":181,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"fb4441f6-9b17-46a4-828b-4ffd0ea80034","block_type":"box","text":"MIG Ratings","page_number":181,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"759a446e-3da2-43e3-989e-6c0d8c2b9f6e","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":181,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"a4fce0b4-3262-4d60-a8cb-2b83c3bd95a9","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":181,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"4c3bc2c4-b235-4d60-af2f-28788378bf99","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":181,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"95157614-07d9-419a-ace9-b6f6df16e3c9","block_type":"box","text":"MIG Scale","page_number":181,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"8583281a-b6b6-44f3-83a4-407b86ba78fe","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":181,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"07556102-6e05-4790-aac7-78ffdbf9a6e7","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":181,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"0ea4bc1f-c555-482d-b194-87dae50c11d4","block_type":"box","text":"refinancing.","page_number":181,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"765d7538-82af-4896-a292-8e09844bdfa2","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":181,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"8b1abd98-c5f2-4b6d-9103-39e5ef5b80f5","block_type":"box","text":"large as in the preceding group.","page_number":181,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"28e25793-69c1-42f3-be57-6cda2c423841","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":181,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"06109ada-cb6f-4cca-9cea-37c8a44d705f","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":181,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"47fe9a07-0c98-4dd5-beee-caaac97e0e81","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":181,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"e2d55be3-722c-4c42-8c31-562deb826694","block_type":"box","text":"lack sufficient margins of protection.","page_number":181,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"a3a5d80a-2052-498b-8b8f-afa5d264b8f0","block_type":"box","text":"VMIG Ratings","page_number":181,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"0d61c1db-1fd1-4c76-bd5b-a4bb1d7a7802","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":181,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"e414e5c5-f23c-4553-bad5-9c5a0494d76f","block_type":"box","text":"are a long-term rating and a shor t-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":181,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"a2b21208-6058-488a-a4c7-dbe44901f225","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":181,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"5c04b49a-9bbe-4590-97c3-0038e6d3a17d","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":181,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"36bc86c0-37ba-4c72-905a-901d6d8b559b","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The shor t-term demand obligation rating uses the VMIG scale.","page_number":181,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"9d2c82d0-e49e-4865-ac30-0858ebdb3bc2","block_type":"box","text":"VMIG ratings with liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t","page_number":181,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"b0eb3171-c640-4594-98ba-7df53a13c279","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of","page_number":181,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"30a45aad-88fe-40d7-afad-3e1c7681aa02","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":181,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"4de3e4c6-e3ee-4249-8e4c-15022a291cd2","block_type":"box","text":"reflect the risk that external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment","page_number":181,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"57b071d6-1e4b-4d95-a147-26ed484ea1ff","block_type":"box","text":"grade.","page_number":181,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"64888aaa-b77e-4d63-b257-52d26e5b8727","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":181,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"5b51f501-6ca3-43bd-ba8b-c69653136367","block_type":"box","text":"less than every three years. If the frequency of the demand feature is less than three years but the purchase price is","page_number":181,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"3f6a6742-976c-412b-8784-80393387f448","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":181,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"fbff2e4e-564a-4ff6-ad78-9435c200ce9b","block_type":"box","text":"Industrial development bonds in the US where the obligor is a corporate may carry a VMIG rating that reflects","page_number":181,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"77ce18ef-bbba-4049-9856-b319a5eb774b","block_type":"box","text":"Moody’s view of the relative likelihood of default and loss. In these cases, liquidity assessment is based on the","page_number":181,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"e3d341e2-2141-4cad-9753-888dedbb202c","block_type":"box","text":"liquidity of the corporate obligor.","page_number":181,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"414ac389-54ac-48ad-a05b-dce90a85b08f","block_type":"box","text":"VMIG Scale","page_number":181,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"1c22d3b4-05cf-45d2-8310-f29316f5f5ad","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":181,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"728448e4-2494-4506-8a43-73144e2c6452","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"0fe46310-1dce-40dc-a925-3d2742f0af5c","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":181,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"cc26bace-d43c-47ee-bb0d-2a4df5aebc43","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"bdde86d4-aea1-4e58-9591-6263f72ad0b5","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":181,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"8cf9c148-63ce-4a4b-8db4-47595d0e8100","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"f724dfd6-91b5-430f-a039-b720c634cc0e","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":181,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"3ebc2bfc-e8dc-4fbc-b3dd-64fb39dd2194","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":181,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"e06d8263-a8df-42ec-a62a-a991c9502626","block_type":"box","text":"may lack the structural or legal protections.","page_number":181,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"456b131e-7e56-4176-b697-deb690e31a07","block_type":"box","text":"A-3","page_number":181,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"88d05e90-4236-4b81-bd46-5f373837528d","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":181,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"90c8de21-8302-4cdc-ac81-567ae03a5e3c","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":182,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"8208c3c5-30c3-4cac-bae2-80c6d27caee4","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":182,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"a2252d54-923f-4f8f-8444-ccef13ee7d49","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":182,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"8efb1e1e-0523-4808-b201-eb9b56a7bdfe","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":182,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"a272aae2-defa-40a2-906a-ee839b24bf8b","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":182,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"cff45f98-9afe-4394-8196-04cdf9eef095","block_type":"box","text":"which the obligation is denominated. The opinion reflects S&P’s view of the obligor’s capacity and willingness to meet","page_number":182,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"b96c62ee-9703-41e4-ad02-cbc4e2c41cd0","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":182,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"1c280350-dcd4-4153-818d-7445815c2d11","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":182,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"a8ec7b01-a35a-4f53-b257-c623735c5cbc","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":182,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"a1fb95b9-0f94-4131-b145-1674b42eaad5","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":182,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"50d07800-1620-4ae0-ba1c-ad3a50894a9e","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":182,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"189eb9b1-8f0c-4c9e-bb66-e14493c71ace","block_type":"box","text":"put features on long-term obligations. S&P would typically assign a long-term issue credit rating to an obligation with","page_number":182,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"72b8d96f-eeb6-4f43-a9ab-a677e5a4d16c","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":182,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"a99f95ae-418f-4bd5-9f2a-9bdb756d58ba","block_type":"box","text":"from these guidelines based on market practices.","page_number":182,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"19dbceeb-fac3-453c-8dee-c1ea37f30710","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":182,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"6b6827e8-f2df-45ed-a4c3-8e88457583a7","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"93d918b9-9b84-4f70-8fa4-26fd134fa5ea","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":182,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"d3605ef3-a2cd-4ad0-adc4-178548b12f0c","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":182,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"22a16306-8abe-4072-bd85-8612a11f9674","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"6ded5268-75fd-4b1e-b8be-6ca2ca4010ab","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":182,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"d3dc9670-7a79-4a3f-a1d9-cc347522cfc1","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"e962428c-21f7-424e-a0b2-2fd7a4456b87","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":182,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"0a793005-e0c9-4367-a48d-01b3a3111555","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":182,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"22c16d03-61b0-47bb-9d78-9eccb7061972","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":182,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"1a877f58-df3a-45f7-bf8a-df0404fbec15","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":182,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"3201f5c6-b7a8-43fe-8e25-b34ff7618a8e","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":182,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"192617e1-a4fe-4392-a2cb-9d93c5f0e3a1","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":182,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"ae41f6a9-0cd7-46e2-92c6-ae50dfb3f1c5","block_type":"box","text":"obligations.)","page_number":182,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"f0c886e2-3708-462a-96a1-e5b888480147","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":182,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"36842947-c5f9-4031-a6dd-c0fe113b28ba","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to meet its","page_number":182,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"adc50f4b-5fdf-4e64-a8f0-4b446d8fb2ae","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":182,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"a111133c-6917-42ef-92b4-7341ea9cfd9b","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":182,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"0542d303-c0de-442c-9dcd-c781e78c7cac","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":182,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"bc6afd2d-41a1-474d-847a-e5fcee6eb013","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":182,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"45eaf448-8eda-4349-a88e-2dc3ff87153c","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":182,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"f824d237-a2dc-4899-b902-b1a624ce3aeb","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":182,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"a5f15792-d7eb-4e53-9c1d-403c218db175","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":182,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"6659a4a7-6a45-4b57-9b98-b83bddd6f3f7","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":182,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"09d15de8-82f5-4af4-b985-bafe77a47ba7","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"680df51e-605d-46b3-a2e9-b24e998cd036","block_type":"box","text":"BB,","page_number":182,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"07b20e13-d53c-48a3-ac8a-7c5c0bad2805","block_type":"box","text":"B,","page_number":182,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"551da9e8-418e-4278-bac2-52a517bda1c4","block_type":"box","text":"CCC,","page_number":182,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"a0fdaad9-8e26-4caa-80db-a26f2bdb69c7","block_type":"box","text":"CC,","page_number":182,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"9ac4ea47-a1a2-4c17-a471-03b73462c4d8","block_type":"box","text":"and C","page_number":182,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"c8582dc5-2f72-402b-af77-b8c49a5033ea","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":182,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"a4dc1410-d414-43b6-86b0-66ff50339d3c","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":182,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"5de4f315-8c3d-497d-80d4-68d9e96a6688","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":182,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"8f27e83b-ad9c-4f6d-b5f0-f610a3eb9bb8","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":182,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"a9e0f594-940f-47dc-a7d2-a747b3741ec7","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":182,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"a0e1c8cc-c690-45fb-9950-f5e5676b9b49","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":182,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"5e0e0845-6c90-4e43-a44b-e037aa4df7f0","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":182,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"04ed0010-565f-4835-b404-e33bde2ebf2a","block_type":"box","text":"on the obligation.","page_number":182,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"cb2efbf0-f1eb-464f-a0c9-94cb1bbe79f6","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":182,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"ed44ec9d-d44d-409d-9c91-ce542884cbf4","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":182,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"b4e5d8d6-cccc-4934-93f5-0abf6f0048ad","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":182,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"c851de4b-730a-4ec7-a37b-9c71ddf85f63","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"307cd7a0-8764-4643-a3bd-e70e5f62cdfd","block_type":"box","text":"A-4","page_number":182,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"a72efec3-ff86-47a3-baf6-0d3776e2cd49","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":182,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"17bb1cf1-c7d9-49fe-8aec-a4b239dbfa98","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":183,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"45f55f94-11df-4c93-bb72-81e1d6fbf814","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":183,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"7bfeaa0a-1144-4d2d-9a20-4941a2d6f7d1","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":183,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"3b5f6a74-1482-4a0c-81d7-fb5593de9289","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":183,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"c43f4428-01a2-4778-8164-c22734aa9c6e","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":183,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"a44317e8-c0e9-41d3-b93c-aeb25754d9c4","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":183,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"fc353653-9bee-478c-b115-93d0b7fb3fb3","block_type":"box","text":"anticipated time to default.","page_number":183,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"5512f354-92a8-4b60-994a-33c675969458","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":183,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"d231b219-39bf-48cf-b9cf-24eb92b83830","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":183,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"0168eee1-178d-468d-9b03-7eabfd722a47","block_type":"box","text":"higher.","page_number":183,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"c0a50ded-961d-4f08-ba7a-9a69e3b5ba60","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid capital","page_number":183,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"6b11287e-80cd-4935-87fb-4fc75fffc913","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":183,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"869f66f8-c820-4adf-aa31-eef1dd3bf203","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":183,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"c741e4e2-a260-49e9-8bc4-5d4bd279fd9a","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":183,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"75f2ba3e-e2bd-46b4-b765-6d8072cea99c","block_type":"box","text":"days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of similar","page_number":183,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"f19cc384-c4be-454a-8d9d-80fdd4e99e8e","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":183,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"5b3fb632-6505-404f-9095-835f1f252342","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":183,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"6f010628-ee83-4965-a956-bd0ae843edb6","block_type":"box","text":"restructuring.","page_number":183,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"06e1d1f9-8c6c-4dca-b920-b254fbaa52a3","block_type":"box","text":"*Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative","page_number":183,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"53012747-8827-4b7d-bd56-98a1efc3ee73","block_type":"box","text":"standing within the rating categories.","page_number":183,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"b5ecefd2-3a4b-4982-af8f-04013bcf19d1","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":183,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"54863abe-98b7-455c-a63c-b8ecedbb2c01","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":183,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"d8572fc9-da74-497e-b903-d4820fedd148","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":183,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"ed6c7a12-38c3-4de8-8d72-e98e8ab5baa0","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":183,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"9f8fd3c2-1872-4fcb-8f51-c6dfc6cbdba0","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":183,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"92d6afdd-ba38-4708-be9f-9b9c2b81520d","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":183,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"c2cb39c6-80f3-42a5-86ad-ce68ededae3e","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":183,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"d685f6fd-0546-4952-9998-c6b6df1edf20","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":183,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"fd441f99-30d3-4e78-80b0-e33f238eb35e","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":183,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"6440e8d5-0ece-4f97-a5a6-a0ae25225b65","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":183,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"cfd885e6-3d17-425b-a180-2c6194e00f6c","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":183,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"7c3cda82-b711-4f4d-81a4-96abc4e5ef59","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":183,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"a806ea7a-0c47-45fc-869f-2e3fd8f43d72","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":183,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"f89953c1-d46d-496e-b7c5-4e85f4a84d41","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":183,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"167fe9da-f28b-4692-8737-59a0ce1a3a1a","block_type":"box","text":"financial commitments.","page_number":183,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"b0d5fb56-23ac-4fd9-adff-5e8b8afc375a","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":183,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"6ddb2c97-77a7-4b7d-a9cf-e8bc33ab9a74","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":183,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"a6537017-0cc2-4615-8da8-5f7c9e0c4374","block_type":"box","text":"commitments on the obligation.","page_number":183,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"8b290fbd-cc88-428d-9870-5bf5c47656f6","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":183,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"003eadde-3cd4-4432-b21b-5eb323253d7f","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":183,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"8f4279dc-8d76-4e84-b559-d23f3f772201","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":183,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"91377f77-5d6c-4c8b-a280-961b832ae890","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":183,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"d79b7c4d-ab69-497b-b6fd-846eca9cfbc9","block_type":"box","text":"business days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking","page_number":183,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"cacba0f3-5282-494e-a9a4-fa1a45d00fbf","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":183,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"b741b2b6-7b15-4aa1-b0b5-b91032e05b6f","block_type":"box","text":"automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed","page_number":183,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"ecb74074-48a9-4bb1-9f5c-fc13de8f5dac","block_type":"box","text":"debt restructuring.","page_number":183,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"4ff81eeb-6753-4ff9-9cb4-db498fa33948","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":183,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"1ac982d1-3225-4c0d-80c0-9b5df2364365","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access risks","page_number":183,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"6df44857-fe7a-46dc-bb51-70e7a1a1e800","block_type":"box","text":"unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with an original maturity","page_number":183,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"a57f788f-70a7-4bb1-8059-87274b893dda","block_type":"box","text":"of more than three years will most likely receive a long-term debt rating. In determining which type of rating, if any, to","page_number":183,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"fbca3045-cdc2-47d1-8650-5134f189e029","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":183,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"d354c63a-772b-4d64-9330-7a134add830f","block_type":"box","text":"A-5","page_number":183,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"dbac0146-c298-49f8-bd3d-4c93455d77ed","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":183,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"aad37a4a-c1c7-4588-ab7b-41c79fbd79df","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"051b28b2-d256-4577-9cd0-53c1c093da82","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":184,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"a6c0e34a-6185-42a5-8672-ffe8b57a1cff","block_type":"box","text":"as a note; and","page_number":184,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"f8d7c3e1-c2f4-4bb5-812d-fbea700fdcd4","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"f7dd6e0e-2791-40ec-b716-04f0132db2af","block_type":"box","text":"Source of payment—the more dependent the issue is on the market for its refinancing, the more likely it will be","page_number":184,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"d62ea75c-5613-49b0-8382-8d369de57415","block_type":"box","text":"treated as a note.","page_number":184,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"498acf4a-c7d9-4581-b354-d9255c8b5d0b","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":184,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"38822cad-97b7-47e7-bb66-a33cc47e73ba","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":184,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"4eb6aa2f-8b0b-49a2-87ad-98a08eb2eb0c","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":184,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"0399848f-0cc5-44cc-9ef2-0223ae2be321","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":184,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"93ee7566-4f24-4b50-9d10-8088b0cdbe65","block_type":"box","text":"economic changes over the term of the notes.","page_number":184,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"f53c754b-4fe8-4c1c-8baa-acdd92c6be77","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":184,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"b3a510e9-522f-473a-ba9c-edfb6b511cc8","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":184,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"6029bfdd-78a8-47f1-9229-29b9b7fa9ac7","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":184,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"469d1e41-0350-4de2-a055-73bc7362a341","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":184,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"28ca0b94-7f63-40d6-ab34-637a15fdb37e","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":184,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"c7f42f07-f6c1-46aa-88ca-5d9a82d6f3d6","block_type":"box","text":"Fitch publishes credit ratings that are forward-looking opinions on the relative ability of an entity or obligation to","page_number":184,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"ec212fac-3b47-403b-ae9c-9ee606d4613f","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":184,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"9e3c7b8e-5454-485c-a631-6587728c1ee4","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":184,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"6e3b8b6a-debf-44a5-9620-b569b1b4c5d0","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":184,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"5ae4b142-150e-45b3-8467-8a0d40d57c15","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":184,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"a2bbcb0d-b640-403b-8f9c-68d5d7ad6a9e","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":184,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"a3b35768-99f3-4ed5-9f37-aa663255e841","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":184,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"ecb74717-81b3-4a93-9017-96823c9a65c5","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet financial","page_number":184,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"ffd3a80e-d43c-43d7-854a-8e407cc681b1","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":184,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"c5bdc90a-756a-46c7-bd74-dc52f3a87c3b","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":184,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"dfa017e1-616a-4bf4-9d3e-7161f43e4b2b","block_type":"box","text":"Credit ratings are used by investors as indications of the likelihood of receiving the money owed to them in","page_number":184,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"8835f649-cd6c-4a0b-820c-ab4f3d0f7d0c","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":184,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"e5bac00a-a33f-4edb-970e-75ac628d7000","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":184,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"d81fd0c7-c46c-4862-854c-636cf23c7ff7","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":184,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"606e3729-24b3-4ad3-891f-bc6bd414f57d","block_type":"box","text":"receivables or other financial assets.","page_number":184,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"dbb430a5-5870-4fe7-9d22-037e9c191597","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":184,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"8f6c4be5-a6ad-4e6f-971a-ae479b7d1aa6","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":184,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"40be20f3-fa12-4de3-8396-8deb55419aa1","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":184,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"7b38fcbc-29bd-4987-b7aa-53276a5c752e","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":184,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"476f8e94-4edc-4b09-bb63-52fbd97d8492","block_type":"box","text":"while ratings in the speculative categories either signal a higher level of credit risk or that a default has already","page_number":184,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"d6525e44-a8bf-407f-8d53-64530088ed1c","block_type":"box","text":"occurred.","page_number":184,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"3e8b16db-9665-42f2-84fe-8575503ff551","block_type":"box","text":"Fitch may also include issues relating to a rated issuer that are not and have not been rated on its web page.","page_number":184,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"3bc1f9d9-8e95-4fda-a708-b7b59c7c26a3","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":184,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"c1c60fb2-58bd-4156-bd30-d40281aa5687","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and are","page_number":184,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"4006cca0-2175-41fc-b5d3-686462374e4f","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":184,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"ed8e6231-8b90-4fad-bc0f-0c5ad3c1bdb3","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":184,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"51223393-adf8-426a-ab0b-6e6c25ec28d2","block_type":"box","text":"the risk of a market value loss on a rated security due to changes in interest rates, liquidity and other market","page_number":184,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"0d303c91-f75e-41e4-80f0-16b3c7d136cf","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":184,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"d77e1a13-8336-4309-b31e-9f9762361ec8","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":184,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"f3c43b59-98a1-4a8d-84bd-228f37dc0124","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other conditionality of","page_number":184,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"737d056e-3aaf-443e-b132-8e38502145ad","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":184,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"84fe3a9a-d151-44f3-9572-7f6dae2183e3","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":184,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"5853c7a1-6020-496c-82e6-a9de4ceee0cc","block_type":"box","text":"to the likelihood of non-payment or default in accordance with the terms of that instrument’s documentation. In","page_number":184,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"c7b7aa93-e95a-4e18-84bd-97c4ca513b3b","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":184,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"da964bd0-2e4b-45fc-b294-b3b86bf379fb","block_type":"box","text":"i.e.","page_number":184,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"e3241daf-3284-4012-be04-d48c5dff95a9","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":184,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"abb5d018-469e-44b3-9a23-2fb377773bb7","block_type":"box","text":"the obligation’s documentation).","page_number":184,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"556c2674-498d-4d49-8544-d24a54210ead","block_type":"box","text":"A-6","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"add03e91-5190-4658-a96c-a271bc7af221","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":184,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"caff4503-8312-4001-a8ff-7a803e0fb42d","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":185,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"759dd672-5bad-4fb5-8970-3545e8b08232","block_type":"box","text":"issuance programs or for private ratings. In this case the rating is not published, but only provided to the issuer or its","page_number":185,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"552ab012-9140-4cd4-8cd5-c4393ea451f4","block_type":"box","text":"agents in the form of a rating letter.","page_number":185,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"8f5694d0-9ee3-47a4-8b9c-9d69181fab37","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope, including interest","page_number":185,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"7f42b60d-4611-4606-9165-6aa8113b894a","block_type":"box","text":"strips and return of principal or in other forms of opinions such as credit opinions or rating assessment services.","page_number":185,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"78fd3fe2-4e02-4a94-8c61-d52708c3d80e","block_type":"box","text":"Credit opinions are either a notch- or category-specific view using the primary rating scale and omit one or more","page_number":185,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"e7c09954-c834-449b-8b8d-30267ab641de","block_type":"box","text":"characteristics of a full rating or meet them to a different standard. Credit opinions will be indicated using a lower","page_number":185,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"fe6344f4-431a-4a07-b7cf-7d46c4197492","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":185,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"659c290d-16b8-4de4-ab77-25d709f78b41","block_type":"box","text":"e.g.","page_number":185,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"b5968226-97af-4e30-924e-86e5f691d73b","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":185,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"4a2cf05d-5f09-4167-8316-9bbca82a2b06","block_type":"box","text":"opinions will be point-in-time typically but may be monitored if the analytical group believes information will be","page_number":185,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"b5eb3cb1-3e2a-4740-b194-629899e4249a","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":185,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"60a90158-6dda-42f2-aeb1-0c49449c42f2","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":185,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"1786742d-2cc0-4a25-bf96-828de4dfd231","block_type":"box","text":"rating assessment services are point-in-time and are not monitored, they may have a directional watch or outlook","page_number":185,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"717e06bd-67d7-47aa-ac96-2e7694532cb3","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":185,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"38667c10-2b9d-48eb-8f8c-9e11139c1b8f","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":185,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"b26382f7-a3d0-4433-a52e-3760da980d26","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":185,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"ac04cd0b-bc3f-48dc-8713-f4942341ae7e","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":185,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"2b8c23b5-7def-4ac4-a5d2-a738e9655f3d","block_type":"box","text":"default on that liability is also included in the rating assessment. This notably applies to covered bonds ratings, which","page_number":185,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"ac6ff7d1-a38e-4659-9985-738eb7f6370e","block_type":"box","text":"incorporate both an indication of the probability of default and of the recovery given a default of this debt instrument.","page_number":185,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"33fd5e7d-6cb1-4cb2-a1ac-ba92c6433764","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":185,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"b2393daa-8384-4dfd-86ba-59243e7cbf32","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":185,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"20836211-a9f6-41c5-918b-31c4db44ce7d","block_type":"box","text":"Individual obligations can be assigned ratings higher, lower, or the same as that entity’s issuer rating or issuer","page_number":185,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"340e72b8-98b0-4b44-87cd-5145a4da7d40","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":185,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"85e57187-7594-4d07-9b23-977f84f9bd5f","block_type":"box","text":"Ratings.","page_number":185,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"735121dc-1219-4321-a216-79f9b890ec20","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":185,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"65d8db81-0c2d-4610-9cb0-3892b7d58764","block_type":"box","text":"same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an IDR. At the lower","page_number":185,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"08458d6c-22c5-40df-9b4c-fa8353188983","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":185,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"353343dc-77ff-4cab-8976-e1de54af8e21","block_type":"box","text":"obligation ratings.","page_number":185,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"5d67de48-dd62-4a84-a2f6-e4cd37236383","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":185,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"13769405-221b-4a31-9a8a-20706003690a","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":185,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"8e5b0669-dda4-4280-be36-3ca35eef86bc","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":185,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"2ced70d9-f335-4363-85ea-fde0e097a991","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":185,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"c907e60d-8855-418a-bd80-34354244c74b","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":185,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"fd0a409c-3cb9-4eb6-93ea-a1f4d225836d","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":185,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"32c5060b-d32c-4310-bcc2-14323fe16f5e","block_type":"box","text":"to foreseeable events.","page_number":185,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"221b7366-61b2-40f0-b1af-614744fb3368","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":185,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"e0b372d3-1f07-452c-8c4f-34710d8b3ed1","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":185,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"2a6b929c-3bf1-4486-a273-9457b752b4c4","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":185,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"fadaf61e-21c7-40b6-af92-778f91fd2e56","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":185,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"7964c252-348d-481b-add6-5672411bf14b","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":185,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"e0183983-7a3b-4ebf-a09f-58bf021d496e","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":185,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"fd417350-01ed-4dea-859c-7ebb50db003a","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":185,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"b50923f6-437b-40e6-b75f-4a0a27cb1b0b","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":185,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"7a20cd5d-54df-46bf-b4c4-7b106d9e13aa","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":185,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"9ec45e17-5cfd-446e-93a3-a29699a2d609","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":185,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"ca3a8682-8d07-4c21-8742-429b5393aacf","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":185,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"74a02d1d-ac16-46b7-9f1c-114267fb1386","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":185,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"d32c6892-b756-4628-9466-91656d1221c8","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":185,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"1175c125-e111-4a32-b771-d6c0c4c8e4b7","block_type":"box","text":"possibility.","page_number":185,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"90ebe04d-163f-49e4-9040-0b4171221885","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":185,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"e3203b28-759a-4648-9886-d28d824dc25f","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":185,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"2bc1e775-0908-4ceb-abb7-e73ba9b7ac0d","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":185,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"ccb00d42-ba17-41e8-b16c-4cce57fc0285","block_type":"box","text":"A-7","page_number":185,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"718b1cb4-6ed4-489c-9794-92e30e217276","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":185,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d973109b-ba6a-40bd-85f0-a190a096565f","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":186,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"d38f3d5c-8326-415d-a7ae-6f2588d2f8bd","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":186,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"0039d2b1-8ac3-4ce8-8d3e-d9bea10d3b97","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":186,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"30ce3ca5-fd71-4cd4-9506-c93f8c6e27bb","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":186,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"d780b244-0efd-4624-8ce1-09f69dd874d4","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":186,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"fdb7a29c-6df8-4183-a066-217463653035","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":186,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"4e7baafd-6026-4ddf-9ca1-88e183b95ba9","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":186,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"5a104a6e-f262-4bd8-b6cf-72ce587e16f9","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":186,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"f71ecbd5-be81-4ff6-91c5-505f3c5ddac5","block_type":"box","text":"relative status within major rating categories.","page_number":186,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"8d506ff5-c2d6-4127-accd-7602b91b793a","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":186,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"c20dc5e2-a12b-40f9-a76a-963e8c79c729","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the shor t-term rating","page_number":186,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"247d65eb-9d47-4c73-9f78-f647c2e2f85d","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":186,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"505477a2-c598-45a8-841c-3a2aec6cc0ce","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":186,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"efa6956b-8402-4c73-add6-87242d20a237","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":186,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"02e313fc-8276-4016-973c-66d1478d78cb","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":186,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"432070d1-a0ae-4fad-ae89-381b776391b7","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":186,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"7feb0e82-5631-43d5-98fe-8f00348b3faa","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":186,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"6772a3f3-9ec0-4f84-a977-53aaafeb6aa2","block_type":"box","text":"13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public","page_number":186,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"0ed034cd-2026-4af7-a880-96402b7c4c2e","block_type":"box","text":"finance markets.","page_number":186,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"212f1e88-2cec-4e5f-a432-024b660b9212","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":186,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"8f616baa-a0c5-420e-bf2f-f5ff7fed8e66","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. 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The intrinsic capacity for timely payment of financial commitments is","page_number":186,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"4544bac8-fcf6-4a6c-a99a-059b2dc1d38d","block_type":"box","text":"adequate.","page_number":186,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"d64bfb5b-b271-4ed4-a45b-86218f6fc33a","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. 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In mitigating conflicts,","page_number":187,"box":{"x":101,"y":665,"width":800,"height":11}},{"id":"a1baef67-2887-4944-b141-df5ef588e52e","block_type":"box","text":"BAIS will adhere to the Guidelines.","page_number":187,"box":{"x":102,"y":680,"width":244,"height":9}},{"id":"8fe0d525-29e8-4c0a-a4b4-23ebc02c0ed5","block_type":"box","text":"In cer tain instances, BAIS will engage an independent third-par ty voting service provider to make proxy","page_number":187,"box":{"x":135,"y":703,"width":731,"height":11}},{"id":"1f96d88b-3895-4b90-b236-90bbd5006740","block_type":"box","text":"voting recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory","page_number":187,"box":{"x":101,"y":718,"width":763,"height":11}},{"id":"f20cab1c-4ee7-42cc-b49c-70f026807089","block_type":"box","text":"compliance requirements, or as may be otherwise required by applicable law.","page_number":187,"box":{"x":101,"y":733,"width":550,"height":11}},{"id":"1e66df10-d9ee-413a-b3b4-40f7ecadf3a1","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":187,"box":{"x":134,"y":756,"width":774,"height":11}},{"id":"b22fe484-d038-42c0-9329-b4f3ecfca090","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":187,"box":{"x":102,"y":771,"width":791,"height":11}},{"id":"e1324d7a-c9d5-490a-869f-2b6a5a9518b3","block_type":"box","text":"in clients’ financial interests. 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":190,"box":{"x":234,"y":330,"width":670,"height":9}},{"id":"fba2ce98-c466-4f08-a66e-8982d0fb7986","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":190,"box":{"x":74,"y":346,"width":448,"height":9}},{"id":"0b2eeadf-38dd-4931-ab49-edcfc288d5d7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":190,"box":{"x":528,"y":347,"width":376,"height":8}},{"id":"8bbbf063-cfd4-4231-a003-b8af82ce4657","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR","page_number":190,"box":{"x":73,"y":363,"width":771,"height":9}},{"id":"84606ff6-acf0-47c0-946e-96073cf04527","block_type":"box","text":"NON-INDEX EQUITY INVESTMENT 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with","page_number":191,"box":{"x":69,"y":83,"width":785,"height":11}},{"id":"63f19eb1-a4b2-4b2b-95f9-d90868cecea0","block_type":"box","text":"issuers.","page_number":191,"box":{"x":70,"y":98,"width":54,"height":9}},{"id":"eef18c48-bbd8-4f6b-9e16-0aa13512ddb8","block_type":"box","text":"1","page_number":191,"box":{"x":131,"y":94,"width":4,"height":4}},{"id":"e1e49c34-06b2-4b62-ac7d-31f64f5030f1","block_type":"box","text":"BAIS works in par tnership with BlackRock’s investment teams, excluding index equity","page_number":191,"box":{"x":141,"y":98,"width":606,"height":11}},{"id":"72b48b1c-9d5a-4b39-8bb0-2c8d8c540a6c","block_type":"box","text":"2","page_number":191,"box":{"x":747,"y":98,"width":4,"height":4}},{"id":"5d29aa74-1bfb-4c79-91cd-813a5da8436e","block_type":"box","text":", providing exper tise","page_number":191,"box":{"x":753,"y":98,"width":143,"height":11}},{"id":"5c849c57-69aa-4691-a596-a5a1f216af21","block_type":"box","text":"on investment stewardship and engaging with companies alongside and on behalf of those teams when appropriate.","page_number":191,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"b124614c-ccd0-49ad-a790-0b46043ef4dd","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":191,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"ed732b6b-2118-4179-9085-28b48af98831","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":191,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"b00e65ad-1aea-4e7e-a246-f91af8db0a19","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":191,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"3151c188-4465-4644-a2d6-e0a65456df03","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock’s index and","page_number":191,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"33506661-46c8-4e6f-b930-583772e284df","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":191,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"557e59b6-4991-4ec2-90af-ade5f1c94e30","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":191,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"dc009b82-aaa2-48cd-af9c-b39f502061d1","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":191,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"a74c95d8-9a11-49bd-96e0-0c5de6bba6c4","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":191,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"f3223c47-967d-453f-badb-e71d6fefb26a","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":191,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"a4fc24fc-2a46-44fb-8376-b08e59530243","block_type":"box","text":"1","page_number":191,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"7df7f247-21c4-48aa-b742-a9516feb2779","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":191,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"6ad8efa8-3291-411f-8ec2-a076668f6f5f","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":191,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"290d38da-cc3f-40bc-b50d-2abb799d65eb","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":191,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"098aff94-a2f6-4c70-81d0-476aee31a03f","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":191,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"201ef05b-9b09-443a-8c7a-1b44333c108a","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":191,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"17a65226-ac46-48a8-aa30-06e11e9d467b","block_type":"box","text":"2","page_number":191,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"b3043d43-c055-4c40-aad3-1b637d6dad7a","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":191,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"3326d857-fd18-4cb1-8480-bbcc9e1e65d8","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. 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The money BlackRock manages is not its own — it","page_number":192,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"2a020221-f89e-4b2d-afdf-2e7377ad8065","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":192,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"4e7c1697-9d0d-4fd1-8d4c-0aa6420f3207","block_type":"box","text":"As a fiduciary, BlackRock invests on clients’ behalf to help them meet their investment objectives. The firm does this","page_number":192,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"a28810ef-73ef-4d2b-ac37-082eea4431c3","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":192,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"fc64e11a-6bf0-439a-9440-83b038dd7c4b","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":192,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"a10390d3-9e70-492d-adf1-35e66695ba86","block_type":"box","text":"this work with research, data and analytics.","page_number":192,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"0c1d7e84-9b3e-4028-b57c-6e101722f257","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our clients. As","page_number":192,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"caf67efc-d394-4bf2-876a-87a2647b4bf4","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":192,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"cc0ff640-ba16-4d69-ac70-5e7158c4c3dd","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":192,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"b4a1f465-eca4-400f-a260-c64777c7c0c8","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":192,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"42bd4138-2c69-4f1d-a61d-fcd9b98aaf27","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":192,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"dff62a41-fc2f-44ce-b486-f59d2f4b96de","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":192,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"d45407bb-d1ea-4402-bb85-17963969692f","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":192,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"4029f8f8-2812-4b7d-b8e5-0470f7d2cdaf","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":192,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"2a933423-7593-4d21-9cc0-e530c5cfbc7e","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":192,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"7e324702-d903-459b-8f20-bee0790766ad","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":192,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"b1807d07-7d7f-4141-af98-f28dbaa98418","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":192,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"38def778-2206-49e2-addd-fa4bef570087","block_type":"box","text":"shareholder meetings.","page_number":192,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"47e670b4-d34b-4fc1-82eb-583b4ec25037","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":192,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"22fc5898-2521-4149-b85a-f031e7c2b963","block_type":"box","text":"investing.","page_number":192,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"f0b866b9-3e47-47bf-a539-7d90f07ac271","block_type":"box","text":"3","page_number":192,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"185c58ee-2959-4217-9fe2-1c1e9523dd17","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":192,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"5c250d11-e942-4f70-ac8d-b4f0254a6378","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":192,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"6c4c185b-ed0c-4e1a-8957-55a5ca6c7d57","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":192,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"4127ac7a-72c4-4f0c-bdd5-3f9ce81c0957","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":192,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"a448ea33-bad1-400b-aa0b-13223bd2b513","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":192,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"36f2c354-d11c-4fb6-9f10-b5f25e4a59cb","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":192,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"69a74448-b231-4b2b-ab2f-6c0a56e3c1e2","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":192,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"59e981ad-d4e4-40a6-a32b-262586f43322","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":192,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"1283527a-e153-42d0-973c-7fbd7c98ea23","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":192,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"d0a39295-86d3-425d-aabe-3ef9014b0bb9","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":192,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"ae304451-56ed-431e-bdae-f01adf1adb27","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":192,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"2ae4a3fe-a404-4f35-bc1b-e0f77baa2888","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":192,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"a7b7b36d-ab68-47ea-8485-9e6a11c97b54","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":192,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"5326eaf1-663c-4a69-a86d-f10efd8bbcef","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":192,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"5c310d86-ee4d-424a-866b-5328662da3dc","block_type":"box","text":"management teams and board directors","page_number":192,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"e1c697c5-deed-48e0-b4d5-4ea0662aa34e","block_type":"box","text":"4","page_number":192,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"18e7f37d-b15d-4d6e-97e9-98402898b3ba","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":192,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"09bad07b-13ec-4c68-9de9-d309b9da2202","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":192,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"50557e89-676b-4a8b-b248-4612425736a6","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":192,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"7bfffed2-4a51-4c65-a87a-5d9ce1095c4e","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":192,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"ef03e12c-2c26-4ebd-805b-d8757421d30f","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":192,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"24b36d20-f7a1-47d6-b2d4-fe594e14fa22","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":192,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"d8d82ae9-39e4-4598-9ccd-9c15e48cdd60","block_type":"box","text":"to – direct a company’s strategy or its implementation. We look to companies to provide disclosures that explain how","page_number":192,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"f3bc03de-3a9c-4684-a5eb-8ada6a7fbdb4","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":192,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"f1c405ec-72b0-46ad-a63f-9b67ca13ec61","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":192,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"6ecaf22e-c65e-40e0-b299-66b2080ec52f","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":192,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"23cf87ae-ec6a-4f84-b95c-e15d7f49598f","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":192,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"e81334ad-c4dc-4cb6-978a-56951f3d5a0d","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":192,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"ad511f02-9e5d-40d0-888f-1eda65e71426","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":192,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"4fdc8783-c76b-4568-a260-1ccb858d5e41","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":192,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"024b6f88-09b0-46b6-885f-4103a239aa6a","block_type":"box","text":"3","page_number":192,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"3c9e448a-37ed-4865-b8a4-fd067638098d","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":192,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"a7f6b157-2c1b-4af3-9343-bba15fbd44cb","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":192,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"e0e9c085-17b6-4309-bad7-ab7bfda9e61c","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":192,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"6345349c-1187-4137-9a2b-89777221ad11","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":192,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"64c136a2-edd2-4c5c-946c-02de98b4e1a0","block_type":"box","text":"4","page_number":192,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"3fc76fbd-3315-4dcb-8103-e755cf1f051b","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":192,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"70eb2d9e-bb04-4162-8d16-f54ce174e6cf","block_type":"box","text":"boards and their members, where relevant.","page_number":192,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"ac4bf2dc-85d6-4aa3-a1e2-29775fbd4f3f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0ba94b14-e479-4054-8f1a-6862881012fe","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"73e5bd84-9868-4296-82e7-fccee083115b","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":192,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"3b8c869f-8ca9-46fc-8975-5565f36b933d","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":193,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"e1fe13e9-8bbe-4b2f-95ae-5e8a87af3f2d","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":193,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"4c371aa7-afc3-4f64-bbb0-8d63f4e1cf8c","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":193,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"a6226a3b-ec1c-4ff0-9e25-0446aecbb069","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":193,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"d09824bb-e035-478b-bc32-4a2914230692","block_type":"box","text":"on a case-by-case basis, in the context of a company’s situation and the investment mandate we have from clients.","page_number":193,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"ef78b44e-45b6-426d-9904-6e61a2a41d30","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":193,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"0412f319-df39-4013-9e2a-7a1edd6f13fa","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":193,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"25539d78-4cb3-4f9a-ba3b-f8104b9aee95","block_type":"box","text":"5","page_number":193,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"606e768a-bc3a-43de-bcbe-e5c1279f40b5","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":193,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"a4ccf8f3-4ae6-4032-a034-73755717b1bb","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":193,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"7d6d93d6-8a67-4cff-855a-dec55ec522ba","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":193,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"9b320bd7-ba2b-4c5a-a989-9de6c4a3917b","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":193,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"43086ff8-b02d-4736-8b52-a62f0d529251","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":193,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"875c2272-a64f-4c2f-aa06-9c8d936e869b","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":193,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"329ca9d4-ed5b-47af-938e-035ccc1e6e89","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":193,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"7908e680-8d37-40b0-b866-4c19b53beb52","block_type":"box","text":"5","page_number":193,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"dbfadad5-22d6-4364-a238-3e904f79535c","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":193,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"6ef3c06e-4d8b-456b-9803-a59e825307e1","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":193,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"9e584cee-f7ef-4e9a-afd7-d7929e96a47d","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":193,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"da013d11-4623-443b-9604-19840493a488","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e84bff7b-214f-4e49-b291-a2842f1b43f0","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"9f8fcf8c-e6f8-414d-bd0c-8c393c4d1400","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":193,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"514e3570-83d1-4631-b3fb-92b8f1a34923","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":194,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"d94da422-c6bb-4495-bbeb-530dba4fd5f6","block_type":"box","text":"Roles and responsibilities","page_number":194,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"b306c528-9681-4a46-b7fe-08917c0e514c","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":194,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"05fac48e-efda-422e-b37b-34d85be85e64","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":194,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"64aca7df-b099-4942-9515-5b2e7d349758","block_type":"box","text":"6","page_number":194,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"919c1329-93ec-4071-bd8a-fd149b000dc8","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment and","page_number":194,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"f7436d63-9e18-4a7a-9bb8-a141f3852946","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":194,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"9c12d08e-219f-4652-9531-02853b7994e8","block_type":"box","text":"can better position a company to be resilient in the face of a changing business environment, help reduce the risks","page_number":194,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"f71497d7-c01a-4544-967d-93e00561241f","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":194,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"efdde588-4c24-42ef-8981-410a0536bcb2","block_type":"box","text":"per formance over time.","page_number":194,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"e2a089c4-7d7d-4ad5-aea3-b5ebda6345a7","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":194,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"3f78dd4d-c388-48c2-82fe-fdc6f7b67d69","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":194,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"7f41d7d4-f2fe-4e2b-8aa2-b6bf37392f30","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":194,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"bbb5cf18-511b-4b49-88fc-d767dc4aa5f5","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":194,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"d9d5b2d0-f393-493b-86da-57fd8a34d427","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":194,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"4bfe25a3-cb09-4ac5-909f-183647d6d952","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":194,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"c2ca427e-118d-4eed-a14f-6529a11ebeb8","block_type":"box","text":"Composition and effectiveness","page_number":194,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"43fa4f3b-4d43-4304-a2e4-fc6a66d81123","block_type":"box","text":"Appointment process","page_number":194,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"406cee2e-99fd-43e1-bb89-7d9c3a13c8ac","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":194,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"a0413484-b048-431e-be41-1e3fffd52181","block_type":"box","text":"board is composed of directors with the appropriate mix of skills and experience. Generally, the board or a sub","page_number":194,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"55cb1827-43eb-4d2e-b1ef-3c0a92c2c67c","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":194,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"7d3682a9-29fb-4c37-89a7-2f75fe84bf6c","block_type":"box","text":"e.g.","page_number":194,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"7df4792f-c4c8-437b-8197-0221341862a5","block_type":"box","text":", sector, maturity, geographic","page_number":194,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"bd5cf39a-52e5-4ec7-a4c2-8ed903bf04e1","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":194,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"3bd2bc73-0aab-457e-9752-295d5187ebac","block_type":"box","text":"e.g.","page_number":194,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"67c79671-7f97-47bc-a43c-c657607008b0","block_type":"box","text":", financial exper tise, industry track record). To","page_number":194,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"fb9569fa-1e4e-4f69-89d7-5b530e73d09e","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":194,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"44fc3476-a863-49d2-b8cc-4d6f3348abdd","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":194,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"c9cfb3a4-9bcf-4ad4-9d7d-ae0dd6c2bdf0","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":194,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"dd15ff30-812f-4b74-a6b7-d9ef17f0813d","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":194,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"3e0c0eb8-fe5f-44ef-b43d-77ac708adc97","block_type":"box","text":"and local market requirements.","page_number":194,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"179f2786-d14b-4c39-80ed-097c4ff9e82e","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":194,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"7f543df2-9aea-42ff-ba26-e0e1c309c9c9","block_type":"box","text":"composition in our engagements or voting but seek to understand how well placed a board is to act in investors’","page_number":194,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"b1ab0a82-a001-41b9-bb59-a8e1aaaee8d5","block_type":"box","text":"interests. We may vote against the election of the most senior independent director, or the chair of the relevant","page_number":194,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"a1bf5cbf-067a-41d4-8970-7042b91353e0","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":194,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"709abe9a-9bb2-4eb4-acbe-df76e8ab9eb6","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":194,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"646caea9-cfb8-45de-a819-24f8c2c8628f","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":194,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"bbec266d-f9f4-4a79-b988-1c756920e3c7","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":194,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"355a8ddf-7d74-4516-aa07-4f53644b6ee3","block_type":"box","text":"Independence","page_number":194,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"071ef044-e023-42a7-93e2-4a44c270e8cf","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":194,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"5135e676-397a-49e1-9ad3-259d8b9e5ae5","block_type":"box","text":"e.g.","page_number":194,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"a21bd66a-8406-4112-8786-cdf02ba71897","block_type":"box","text":", government or","page_number":194,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"8ac5c601-5885-451e-abd8-37fa060cdc77","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":194,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"4f0b9dd2-4d54-44a8-a030-886ca24afe22","block_type":"box","text":"BlackRock’s clients. We consider it good practice for at least half the directors to be independent and free from","page_number":194,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"8a5a91bf-9c7a-4b6d-9b32-4e49384fd615","block_type":"box","text":"conflicts of interest or undue influence.","page_number":194,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"0e6b1267-ff81-4b75-9aaf-b284c06345ae","block_type":"box","text":"7","page_number":194,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"2f329b77-1de5-4ed4-b301-5ddd686560a1","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":194,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"275fca95-8cd7-4da1-9bae-c2173b769104","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":194,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"fa128cef-0082-4088-bb9d-1918c026b6d6","block_type":"box","text":"independence should meet those local requirements.","page_number":194,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"7260fc0e-f153-4e3a-bbe7-618e32e564fa","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient balance of","page_number":194,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"6b915c1d-f2d0-461e-a426-67b6437292ec","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":194,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"b998b862-9e21-4b1d-947b-0976e1ad0764","block_type":"box","text":"composition if this is a perennial issue.","page_number":194,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"6ccafc48-6a77-464d-bc1e-305c6333761b","block_type":"box","text":"6","page_number":194,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"72ffebd9-b289-452d-907a-48719807fc67","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":194,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"007627c1-c75d-40a4-bba2-93eaddc65bbc","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":194,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"eb66ecf9-ddba-498d-bcdc-4b8c92dde564","block_type":"box","text":"7","page_number":194,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"e3ef7ebc-a5f4-4595-aae2-f4a0054a8b65","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":194,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"066d3811-9066-4bb4-9de0-77eb3cbcc16f","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":194,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"de064e19-66fc-4181-ae31-61561feeffc1","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":194,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"8bf7def6-c2ff-4e63-ba70-1a63c3402651","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":194,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"fe1b06c0-8673-4d45-8ef8-338b077fb791","block_type":"box","text":"of the company and shareholders.","page_number":194,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"475e43a7-f779-4648-b003-6e5ea72aeda1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"7630c7a1-62bd-49d3-9a18-0424021dacd5","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"a7504904-741b-4067-9d88-e7fd66ddcfc0","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":194,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"1b421ee4-17ef-46f9-830a-e54fa88646e2","block_type":"box","text":"Independent board leadership","page_number":195,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"3bf49452-c6fb-477f-8f69-465fe521a48b","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":195,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"f8a700c6-76ae-47c5-84d7-102246af60ba","block_type":"box","text":"board leadership. One is a non-executive, independent chair of the board who is responsible for leading the board in","page_number":195,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"4967b632-1e55-4502-bac1-91d70d0d30e4","block_type":"box","text":"the effective exercise of its duties. The other is a lead or senior independent director, who is responsible for","page_number":195,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"aa6de53e-1e8a-4d65-b9cf-2e7f0d228ca7","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":195,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"a5650680-2abf-4b22-8d50-3b8b4e8c86f1","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":195,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"622f2c45-dbe9-44ec-9c81-95ab4b6a5238","block_type":"box","text":"ensure the board is effectively fulfilling its responsibilities. In our view, the independent leader of the board, and/or","page_number":195,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"3c1faca3-682f-458d-8cd8-93cb39204519","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":195,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"1847b9e7-c854-4b16-97d7-88625ba97cf1","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":195,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"f3a1a211-4234-4f9f-8cda-494eac2779fd","block_type":"box","text":"how it serves the interests of shareholders.","page_number":195,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"c1ecb2cd-ef38-451a-9219-fac70d01e2b1","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if there is not","page_number":195,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"ca836ec0-18b3-4698-abf5-82a651614755","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":195,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"e22dd715-5c4e-41d8-b6bc-be6c3193be74","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":195,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"041a02d8-7264-4c86-931f-895a7b931a3d","block_type":"box","text":"Tenure and succession","page_number":195,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"9880446e-4700-4a1f-8507-44c66d7a7c52","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be expected to","page_number":195,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"c6aa3ee4-7fb4-4936-bc78-0b9818e3a752","block_type":"box","text":"serve, in line with market norms where those exist. We find it helpful when companies disclose their approach to","page_number":195,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"694ad241-2efd-4b5a-bc10-824f8e9d0e80","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":195,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"302acf95-4fc9-4e55-b4d3-8ac86e95a913","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":195,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"363aba58-a822-473d-af53-6163ca288c6a","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":195,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"0aee4d79-dda9-44db-b364-19de6615045f","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":195,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"2db6ec84-0d55-4cc0-bf3a-714fd3de08be","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":195,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"e4df716d-5e78-49a2-9f62-f83e26f592c6","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":195,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"d9aebb4b-bbe0-49f1-a3e6-217f14ea91f3","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":195,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"58c9b69b-9238-4bd8-a99d-3ebd5a36d4ad","block_type":"box","text":"practices, we may vote against the election of the chair of the committee responsible for board composition if a","page_number":195,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"57ad8a48-43bc-4f4b-951d-ee2b72583ecd","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":195,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"f7fead3d-591b-482b-9d75-355dd629ed16","block_type":"box","text":"election of directors who have served for more years than is typical in markets with specific guidance, where the case","page_number":195,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"ef20bb25-5034-4b78-ba26-8b0769a090c8","block_type":"box","text":"for their continued service is not evident.","page_number":195,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"8474c938-f65d-463d-99a7-8b725ae6578a","block_type":"box","text":"Capacity","page_number":195,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"a2db78c1-7057-4f11-851f-c946c991aa11","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our view, an","page_number":195,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"6473688f-537a-4fb3-9f32-b87c158189c6","block_type":"box","text":"effective board will assess the ability of its members to maintain an appropriate focus on board matters and the","page_number":195,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"872c139a-bf54-4a5f-993f-056cb85eceb9","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":195,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"29028014-adcf-427f-8f7d-9b3180e4f15b","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":195,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"93411f6b-2989-4706-89eb-70100e4071b6","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":195,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"f3a0bc8f-0ff3-458c-bcfd-cf6b7cbd4ed9","block_type":"box","text":"determinations across markets.","page_number":195,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"9682595e-122d-44e6-b3b4-5e94df9399eb","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively fulfill","page_number":195,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"3fe2269a-3c2c-4680-ac3f-2b000836fab6","block_type":"box","text":"their duties to the board and company.","page_number":195,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"4794e2c5-ff8a-444a-998c-1cc09b8c88c6","block_type":"box","text":"Director elections","page_number":195,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"704c5a0a-8821-4001-a38b-c57a35048dd3","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":195,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"c43a0782-e0cd-41c7-90f9-c9c0e5ac882b","block_type":"box","text":"structure","page_number":195,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"f1bc8986-a961-40bf-9f7e-b5faf716e202","block_type":"box","text":"8","page_number":195,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"18afcb04-ba44-4ca5-81a7-8194d1907498","block_type":"box","text":"may be justified by a company when it needs consistency and stability during a time of transition, or on the","page_number":195,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"ec83df79-1c1f-4f0a-be98-e82572ee86fe","block_type":"box","text":"basis of its business model (","page_number":195,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"7d1d107b-47ed-478a-8da2-66c854a650a4","block_type":"box","text":"e.g.","page_number":195,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"5bfd5cd5-3405-4fc6-9d96-36216cd8273a","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":195,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"30469046-04b0-454d-8b62-b019830bbf52","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":195,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"6d90785f-6376-42a2-8443-3c34515fd32b","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":195,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"67ea5cca-51b7-424b-b389-4f2c59fa4b3a","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":195,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"17c2c70e-def2-4a06-9b7a-8c7dcfec973e","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":195,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"7b5e3c03-6932-436b-9257-abf5146aa0d3","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":195,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"aa50f48d-d6cc-4989-af6f-daa2ce51f84c","block_type":"box","text":"shareholder meeting. Where a company’s practices differ, we look to the board to provide a detailed explanation as","page_number":195,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"3843f2b1-0672-42e2-a34e-675ace59920b","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":195,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"ea868177-f375-4d05-afb1-1c14645bd9af","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":195,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"729f524d-2ea5-4431-93b5-215cf9f22b3c","block_type":"box","text":"a simple majority vote standard for director elections. We may vote against all the directors standing for election as","page_number":195,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"0a63c512-387d-4f3e-bf1b-c55ac7dd0e77","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":195,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"9b7bcb48-3db2-4d14-a31f-cb24a77b9939","block_type":"box","text":"8","page_number":195,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"3418fed4-54bf-46f1-9012-04c5b667cad7","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":195,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"58489183-2ffd-45e0-b51e-c19256a31d74","block_type":"box","text":"directors stands for election in any one year.","page_number":195,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"6a8edfbc-2a46-4b40-a297-ec0d8af9c441","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ec38d325-554b-458f-901b-875e1cbe1407","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"d4af7ec3-efc2-4667-848b-1d3e40a2475d","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":195,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f106ebce-dedb-4194-9cd3-8c4c59684983","block_type":"box","text":"Committees","page_number":196,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"28dd3bb8-7880-4b48-aec9-81efb37456af","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":196,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"b8a88cc7-b366-4dce-a9b9-152638104ca6","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":196,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"0ddaa81e-69a0-402b-98c4-0cf7c745196f","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":196,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"02e2eccb-4ad6-49a2-b55d-7ed05e97b5ed","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":196,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"744018e4-65dd-4cd1-805e-d03e08af0fe9","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":196,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"b1b6f551-2794-4f3a-a625-45b375fcd962","block_type":"box","text":"matters are assigned either to the full board or to one of the committees. It is helpful to investor understanding when","page_number":196,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"b5625457-36ed-4914-bafe-9a3a504059ce","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":196,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"98aeb213-19e3-42fc-9789-3fbffef6f425","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":196,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"af799f31-354d-46cd-b6f3-374a869d29a4","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"04a8c473-f78f-46fe-b993-67623a19eee9","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":196,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"90586d6f-620c-4c0a-b29c-66715ecff520","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":196,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"371a6359-ded8-421c-b908-b05818314116","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":196,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"9c1918a9-d698-486c-9287-0b62c73c37af","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"49fad996-b260-432d-bb53-16f61e7d29ef","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":196,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"31d1af41-ed23-43d4-a22c-cb521bf26b91","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":196,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"fa1c5f13-74e1-4620-8187-34556477e375","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":196,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"1a1726f8-7b63-4fdc-8042-bcea5b6d5f5c","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":196,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"e7d23996-96b6-4725-b8e0-18d2df687552","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"4b5b14ee-9bdf-4da2-b898-736e471ccefb","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":196,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"b639f06e-6bae-4d74-9e48-f0c9b783b3b7","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":196,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"752fddc7-7719-4fa0-9730-db7995291516","block_type":"box","text":"firm-wide compensation policies.","page_number":196,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"af5103e8-c6ec-4971-ab89-9c6144d5aa33","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee members","page_number":196,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"b080af22-7c69-4062-88a1-93fbc20ec253","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":196,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"fd0dd42d-9c4e-4c33-ace3-fe89986426a4","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":196,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"af6645fa-91ca-4e82-81a9-d97ce99fc144","block_type":"box","text":"Board and director evaluation","page_number":196,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"24597cd9-7bf0-46b7-a926-679b5686304f","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":196,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"028a5458-fcd5-40fa-9835-e5787ce9fc6a","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":196,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"856c1a9f-36b7-4cfe-afa1-f186ed19e8ff","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":196,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"f67a9e10-6280-40f6-956b-9206467a95e3","block_type":"box","text":"disclose their approach to and the objectives of evaluations, including any changes made to the board’s approach as","page_number":196,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"7360d16e-4aa8-472b-b32f-b4cf524adb0c","block_type":"box","text":"a result.","page_number":196,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"d502ff10-0fb0-44ad-9a28-128e364cacc8","block_type":"box","text":"Access to independent advice","page_number":196,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"f041cfea-7964-4e43-af34-79032412feeb","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":196,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"a33134ae-cc35-4432-95d5-d6b841050c3a","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":196,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"14fd39d5-00a0-4d91-b203-04ec7e452ba6","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":196,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"4240a347-9c62-452e-bc4d-57308f1ac94c","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":196,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"655afa60-47a0-453d-bfe5-a424e24fce91","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":196,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"91259fb5-4a87-4935-8609-58809a0112ee","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":196,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"93829366-eedb-4b59-a858-f93e2cbdb29a","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":196,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"940e069a-7958-479f-91cd-04904563c654","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":196,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"c59a45cf-4b92-4e17-9148-dc78c1a8ce9c","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":196,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"dd434a51-442d-4e5b-b8e8-27c224061bfe","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":196,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"60016f27-1a2f-4c90-a71e-16a94a9093f8","block_type":"box","text":"per formance.","page_number":196,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"6112fc93-a5b3-4517-8e14-4a1022a17439","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":196,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"bd69b92f-75a2-4ad1-8c07-379b79f8f7a6","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":196,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"8e2f09ac-9fe0-4bec-b51b-1b6380975095","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":196,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"bf8807d5-2ece-4d0b-8c45-241c4c6fbbeb","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":196,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"e323e80c-6591-4343-8f1a-32a634d6d740","block_type":"box","text":"to be tailored to the company, its sector and long-term strategy, as well as the individuals the board is seeking to","page_number":196,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"1ef7d5b1-c342-471c-8756-7e5500470f18","block_type":"box","text":"recruit and motivate.","page_number":196,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"284d6de9-0f96-4e88-ba53-2f34310a22c4","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":196,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"c6fc8514-c820-437c-840d-dab1d577aa7e","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":196,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"413917de-d8a2-49e2-96df-243d5163aa9c","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":196,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"d9c54251-0f51-49cf-84b7-f8c94063c289","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":196,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"71eadf21-7f8f-4bdc-8393-1a0f1cc1a007","block_type":"box","text":"arrangements include:","page_number":196,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"c77792ae-16cd-4802-836e-47292e78dcf6","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"02b07c80-1e24-4aa9-8472-62b60c88ae18","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":196,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"a95bf08a-0494-4283-b18c-b640b587121d","block_type":"box","text":"the company’s size, sector and market.","page_number":196,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"770f5511-5e10-49f9-a2b0-876c0d1e14dd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8d3d2d4a-4739-4f27-ba47-e5014f2ecaf7","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"a8c88089-f9ba-457c-8fdf-8662be83d93f","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":196,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"b55d8a22-ac68-4e45-9204-9ea982eb86b1","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"23934663-e1b2-49c8-80c8-df40d493dfc0","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":197,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"a191b09b-5b09-416b-9fe3-264d63c17761","block_type":"box","text":"strategic objectives.","page_number":197,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"d4cb266c-32d0-4787-8149-6a4b3356a214","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"717d2dd1-8567-4f3d-87f2-51ccbe950b51","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":197,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"3c79e4b2-6d0d-410c-8fe2-e21d7be90fee","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"d07c6979-809b-4164-83fa-0c7ab1104a00","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":197,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"cbbc244a-6adb-4cde-b505-ef676d290c75","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":197,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"cf24561e-6d20-4f36-b73a-8f39a614f89c","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"23e0c454-3783-4d3e-a2cf-b4dd22c45fc9","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":197,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"d5e1f54b-10a5-4fbe-b3c6-0f0ae1783cf6","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"1a48fe4c-ac42-4cd7-a753-dbb38237ea9d","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":197,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"8eeac499-a0a7-459b-9a6a-1117c5351509","block_type":"box","text":"transparently.","page_number":197,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"d22ad949-d116-4d80-badd-2dc91415c640","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"93b81ec2-94c1-4052-bf7b-6431821d3491","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":197,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"28964395-a1cd-4a98-af94-6e0b4494e926","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":197,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"8eb8a988-fcfa-466b-9c6f-0f9aae80690f","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"85186043-0529-4dca-9d92-f8513efa760b","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":197,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"15fc1d97-41d5-4293-b33d-365496babe38","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"d07294e4-3da3-4542-b01b-bf7bddf43b10","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":197,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"7d2e9d0b-364d-46a4-8287-54b31da11fbc","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":197,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"9304d67c-f4da-41c6-9963-8bb427ed9ac7","block_type":"box","text":"misconduct.","page_number":197,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"a8481180-caf0-4952-b752-a2a32b8889d7","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"52e308e2-2816-4348-b8be-6d7150b960f0","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":197,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"965cd17f-9f30-4584-b3c1-263f615dafaf","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":197,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"c1874a0b-31a6-467a-a0c0-a6aa7c153d98","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":197,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"a805dfef-ab61-4fed-8277-0275f6761d57","block_type":"box","text":"and our clients’ financial interests. When there is not an alternative, or where there have been multi-year issues with","page_number":197,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"363fa153-a614-4275-b533-760e5b41ca35","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":197,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"7ecf6304-8e8a-479f-a30b-6fac198340e9","block_type":"box","text":"committee, or the most senior independent director.","page_number":197,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"d563e65a-6e4f-40af-896b-cdaa8186e43e","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":197,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"99d671a6-2efb-47c0-b5df-38dd78946902","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":197,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"c51ea489-1670-4144-b98d-0c80622886aa","block_type":"box","text":"the two. Some companies also pay additional fees for service on board committees or in board leadership roles. We","page_number":197,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"0823b43d-3dc9-46b2-aecf-122ccae7381d","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":197,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"ed1a15b8-e915-42ec-82aa-ad371d159938","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":197,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"e705ac34-4857-4a6a-96ca-8918ab1a8cac","block_type":"box","text":"CAPITAL STRUCTURE","page_number":197,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"eb2bb4ca-8cc1-4d5a-8f3b-3b09db053168","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":197,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"97d244a9-2e53-4e1e-9c33-c8d098f771a6","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":197,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"c8dc8484-4c9f-44e2-be8e-29d1a14bbcf9","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":197,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"395476b4-88a7-4370-83fc-910904d90b5b","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":197,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"fb8c25d2-6f8d-420a-acc3-dc98abf0c8d7","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":197,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"eda79b0a-a0fd-40db-a5b1-774df2c619b4","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":197,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"1171186f-1c5c-4034-a131-37664491dba2","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":197,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"41314ecd-96ab-418b-9442-dbaafd8fd405","block_type":"box","text":"Share issuance","page_number":197,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"bcb7f6cf-8388-4702-b605-31f7721bd78c","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":197,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"71fae924-2d6b-4f65-95d7-b862056eb135","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":197,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"2bbe67b0-be74-482f-9628-0060a255e44a","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":197,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"13067aec-0798-4228-8719-1d0cb99be878","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":197,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"d517e4d2-3a5d-40ba-949a-fec7366f951a","block_type":"box","text":"market environment.","page_number":197,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"9db11139-3b8d-4548-a5b4-9f94818ce26e","block_type":"box","text":"Share buybacks","page_number":197,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"baaec8cb-46f0-4a13-a948-8e7d3611de21","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":197,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"41c12480-76df-453d-8c63-f789997f0146","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":197,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"2226d147-2a6e-4f0a-9d98-84d573884c02","block_type":"box","text":"the company and returning cash to investors. We also take into consideration the effect of a buyback program on the","page_number":197,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"2fc79501-b257-4560-a3bb-9fa325e84a19","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":197,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"cb04a0c3-41df-4e08-a7fe-7cee0eb23a0f","block_type":"box","text":"relative to market price. We consider it good practice for companies to seek regular approval of these authorities to","page_number":197,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"3a7f3fd8-a1dd-4dac-bebd-b0ee355aa76a","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":197,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"c0352b48-7f58-4c1d-a9f9-3e263b2fb021","block_type":"box","text":"of the company and the market environment.","page_number":197,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"9025699f-ad49-43fd-a1e3-1633fcb3d950","block_type":"box","text":"Dividends","page_number":197,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"ef736966-2cda-4546-9a57-8b8894b8be0d","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":197,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"3e8811e2-1f0f-42a4-a806-71a98ae167dc","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":197,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"467d4409-b5e2-4c92-82fa-56a4a9b30a4f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a1351f6a-6091-4d35-af7a-ccac85b516ca","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"8e445760-a7bc-444c-a12a-2eccd0d33eaa","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":197,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"9633d99e-fc52-4ccb-970c-e1669ee20033","block_type":"box","text":"Differentiated voting rights","page_number":198,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"8fa4cebc-82c2-41d3-ac8c-8b517f129707","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":198,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"da95b93c-466f-4c12-95f7-778075e9e3d1","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":198,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"614a1929-ddf2-422d-bf53-e5f9f9eac654","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":198,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"9fff8ecf-2c75-4c98-bc3f-ed84a11660e8","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":198,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"4cdbd1c4-706b-4e36-9aa5-8c6725a90ee6","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":198,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"31c59a8d-4f30-4d43-9d59-facf2b2321a6","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":198,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"233fd60c-30be-4768-a8d7-e88412776de1","block_type":"box","text":"analyses of proposals.","page_number":198,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"de341240-c953-419a-930b-aefb36f003f4","block_type":"box","text":"Mergers and acquisitions","page_number":198,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"03cf5c04-3cd7-4320-bb21-d3b345bb6e2b","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":198,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"d2fccee5-c67a-48ea-a135-c6acf1609800","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":198,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"f0dcf756-c512-4b83-b7e6-4e0b265b6771","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":198,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"4c658c58-ab00-4d00-a7b3-1c913328a7a0","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":198,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"dd497aef-667b-41e0-b08a-067d63a821d4","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":198,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"02472aac-3afc-4c38-8484-c7dd15edd7d0","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":198,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"24a24065-1585-4ba6-a559-618c1628bdb8","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":198,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"c9100363-9392-4405-b89c-657cba0f8628","block_type":"box","text":"Anti-takeover defenses","page_number":198,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"74fbde45-208e-42f3-9d96-f156240c57a0","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":198,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"3d54f525-91b0-4c3d-b95a-bdca938a627a","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":198,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"1e3c245a-0323-4ce7-b8c2-ffc37f50c7bb","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":198,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"0085c607-b52b-47e6-abe3-60b88ea0717f","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":198,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"514ad97c-306c-47e7-b3c4-b62fa5ef95cc","block_type":"box","text":"case to use a poison pill to block a shareholder activism campaign that may be counter to the interests of other","page_number":198,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"dbd52d12-89f8-465c-8a37-f25633ba1d89","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":198,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"0f116dc1-f1ec-4f43-96d7-914bb7c7fb56","block_type":"box","text":"be closely monitored by the independent members of the board. We consider it good practice for companies to put to","page_number":198,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"2ddb02c0-bc25-4b30-9868-07cf8eea8228","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":198,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"2b3bd63f-71c1-4552-a187-457138da1311","block_type":"box","text":"Shareholder activism","page_number":198,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"36ede7e8-cd59-433d-8551-120a78578a66","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":198,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"47f05644-f937-49bf-900a-5cdde95689ba","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":198,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"47db0478-e787-4747-a8ad-72e1a56a8151","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":198,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"9c12a248-d274-463e-97f7-49c56392a07b","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":198,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"210dda11-9c1f-4f2a-86b0-0f0db4661822","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":198,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"70c48884-2a9e-4308-aa11-576cdffced99","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":198,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"f773876b-4581-406a-9731-77fc9953e1ce","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":198,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"47bb1d18-a30a-4c07-8f26-08892882ef21","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":198,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"2bfc3493-78e8-4409-a8ef-b806ce787bdc","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":198,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"b703a445-aa5e-47c7-819a-ace7f95f676e","block_type":"box","text":"protecting shareholders’ interests.","page_number":198,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"ba0eb580-0ccd-43c8-b5fa-c5052eec9afa","block_type":"box","text":"Significant shareholders and related party transactions","page_number":198,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"b9d31033-edb9-4a31-9a7e-1a55002e04fc","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":198,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"66981b86-56cb-4709-96d7-da4a5032db4b","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":198,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"4a722ff2-b17a-40ca-acef-adf978e40270","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":198,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"fbecc8d3-d737-41e5-b62e-7125257b1dce","block_type":"box","text":"affiliated with the public company, to be disclosed in detail and conducted on terms similar to what would objectively","page_number":198,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"cc523dd5-521d-4249-ace0-20fd814d4236","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":198,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"a1c9aa68-156f-4419-9fa0-7d3b1c98f96d","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":198,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"4ba5e69a-63ad-40bb-b7db-c873abb09b4b","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":198,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"491bac4d-d021-4ac7-bf6a-e9826b336fd6","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":198,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"99e9933a-3608-4335-a495-957fb5f8c1bc","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":198,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"59c962f6-47f8-4a13-9faf-e73c34d56e18","block_type":"box","text":"potential for the company to create shareholder value over time. We consider it good practice for the board to","page_number":198,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"049f36be-938d-4aca-a764-efcda04a51b1","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":198,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"434e5a36-172b-429f-bf44-de79de9dbbfe","block_type":"box","text":"audit.","page_number":198,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"ac6b6784-404e-45db-afc0-77fa168899db","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":198,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"b1e02db6-abaf-4b44-b8d0-896c58b8c6b2","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":198,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"94ab46ed-cfea-4cea-82c8-33bfbf3e8533","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":198,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"e465ef71-6e22-4810-a390-9b35313d4539","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a29ccf75-1b38-4482-a6f1-6d7c822fd4d1","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"fd2ef49e-7453-4777-a40e-17058fbcdb86","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":198,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a73eb43e-0b1b-481b-9d5b-1eb950ec9a3e","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":199,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"1d2feda0-403a-4160-ace5-1407c2ef9461","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":199,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"cbeab1aa-62c4-469e-9dcc-c41090cfa40a","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":199,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"49b00916-301a-48df-941a-87d223044cef","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":199,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"66897093-20a0-41bd-af70-b3e4d3dba062","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":199,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"60beae81-f44a-4f40-9f94-44c463058caa","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":199,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"281c734c-dd6e-4de4-9685-51fbb0b6c6b1","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":199,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"7890af71-3486-4db4-9eb5-035289d8b347","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":199,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"c4f6ebd4-36cd-4e95-8c4a-911bad49f997","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":199,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"f6f43735-32de-46e8-82e8-95e33fee3147","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":199,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"fee185e6-1122-45e3-aea7-d0bad4bbffe6","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":199,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"5fd3a4fa-b01b-4576-bbd8-bf3a1ae54987","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":199,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"48d56c8d-eeba-4a66-990f-c91b7e0ffd32","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":199,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"74c56b7b-f235-49cf-84af-03607509f7e2","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":199,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"c7eab65d-a4b2-43b2-afaf-0e876ab32e49","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":199,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"6ee3f0c9-8a5b-4a4b-bb09-f3e2ef4781b7","block_type":"box","text":"9","page_number":199,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"5211a749-a49b-45a4-aaa5-4f59183db65c","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":199,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"1eb32446-325d-4dda-b6a9-5402ee45684e","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":199,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"c0f9d2b3-3f7f-4054-949f-9012cb04a790","block_type":"box","text":"standards specified by policy makers.","page_number":199,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"2a6a8470-b68f-468e-82d5-f39e6d270469","block_type":"box","text":"10","page_number":199,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"dcd40df2-8475-485e-8dcc-dbea27c90184","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":199,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"e513aafa-aab3-4dd4-b669-8719def1aaa8","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":199,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"5231d392-4fb9-4de5-9f11-fcf7a8831e8d","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":199,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"53b3b948-f37f-43bf-ac42-bf1b17ff0fcf","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":199,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"131a74c7-bbba-40a8-ae93-b5d45f253581","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":199,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"c6a5a6bb-220b-4e41-a915-2848ca67ce82","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":199,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"1efe043f-1bdb-41ce-b312-848f2974b659","block_type":"box","text":"well as any critical audit matters identified and how these were resolved. A comprehensive and effective audit is time","page_number":199,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"1e1f18a5-3d21-47ef-bc11-64f349159264","block_type":"box","text":"and resource intensive, and the audit fee should be commensurate. Fees paid to the audit firm for non-audit","page_number":199,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"4d0fbf79-fa8b-409f-9f83-10d5f3fdcb90","block_type":"box","text":"consulting should not exceed the audit fee to a degree that may prompt concerns about the independence of the","page_number":199,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"8764a36b-b083-4469-bc09-703758b5e7a2","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":199,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"5a5a8114-46aa-4bc7-a16d-8e6aa5621183","block_type":"box","text":"remained independent.","page_number":199,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"97085379-36ce-4b6d-9eef-61787e35e6a1","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":199,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"c2aee74e-1ddd-4dcb-91d5-7542763175bd","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":199,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"d2638e27-0880-422f-9bb7-39590e547fe4","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":199,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"f2f46c53-453b-49c8-8c32-abea3d0013b4","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":199,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"3e3ef82f-7ce6-4f39-af34-5cf4ba0ef756","block_type":"box","text":"audit fee if we are concerned about the auditor’s independence, the quality of the audit, or there are material","page_number":199,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"475c0c54-124f-4b5f-bf23-4c46b384aefd","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":199,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"85a71804-cc45-43ff-bc8b-0fb6ef957ede","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":199,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"ca81ee4b-3bcb-44e5-a766-be23a94de916","block_type":"box","text":"General shareholder meetings","page_number":199,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"273864e1-2e4a-4006-884a-d2bb70a3316a","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":199,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"77fb4f9d-6007-4fc4-ac25-1d78ab4250a2","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":199,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"33123057-0002-44e7-a59d-734cda8b12e7","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":199,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"3af49c89-0cff-4175-88cd-557ebb99e9ee","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":199,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"e780d1a6-2c6c-44ae-a4a5-a1f5ff47b67f","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":199,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"232938a9-9646-4202-9f3d-d86acefa2934","block_type":"box","text":"an in-person meeting.","page_number":199,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"57e42774-cc9b-47ab-86f1-b2a6d9a55203","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":199,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"fca229fc-99e7-44cd-980a-09494e24827f","block_type":"box","text":"provided in a timely manner or do not provide sufficient information for us to make an informed voting decision. We","page_number":199,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"f94f0b38-aeb2-4299-8faa-1aefd7ed195b","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":199,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"d259ccce-4f77-4108-b6f4-654c37575916","block_type":"box","text":"par ticipation.","page_number":199,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"2fbd22a0-6ee9-4671-95f6-566a8141dec7","block_type":"box","text":"9","page_number":199,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"8cb2da97-e4d3-4765-8587-b58ee592020f","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":199,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"fcaeb726-29b2-4d65-849e-b24b6e539f05","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":199,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"7b7a2d3e-7f02-4979-96a1-0aa481b8f4aa","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":199,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"718d9172-7f82-43c4-97be-c6df1d68036e","block_type":"box","text":"Disclosures.”","page_number":199,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"fba2c4f1-704e-43b1-a7ff-a5da7022c2b9","block_type":"box","text":"10","page_number":199,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"602aec5a-fd24-4fbd-83aa-604274f3994b","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional- profiles\r\nissbstandards/ and https//financeeceropae/capitalmarketsnionandfinancialmarkets/compan","page_number":199,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"f1f345fc-7b1a-4e3a-84b6-e9332b1d5c5b","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":199,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"93d637d5-35ce-4f50-8a1e-8e9c3436efe9","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":199,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"4fb4f753-f55c-4526-b132-543f0909bca2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0d6b3fd2-57df-4093-8ab9-ac44d8a2ef86","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"e1b6bee3-9299-4285-9630-eead3fd4252c","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":199,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c2bebfef-a07e-49a8-b2f1-5b1e4779903f","block_type":"box","text":"Bylaw amendments","page_number":200,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"d6b5db71-c374-444f-af2b-ddf95404ec55","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":200,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"164b14ee-a325-450e-8c61-4a25c9706a2a","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":200,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"4a97941a-8c3d-4f73-9ea5-20dbf02891cd","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":200,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"0f68ddde-453c-42e5-bc14-a2317627337b","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":200,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"de6a8959-e33b-4d46-a4f5-297fdeec6adb","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":200,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"6837c6c0-0b25-4d44-8d6f-fecad7eb6c05","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":200,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"594dfcad-e060-4d5d-aa70-c62e6ac0e62b","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":200,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"fb025d91-d9db-4152-9ed7-bdc79dc53bca","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":200,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"9097812b-2fc2-4040-83b7-0a6be4fa2789","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":200,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"c6e6aff4-29fa-4218-8da4-d6c8cdff190e","block_type":"box","text":"group, with a meaningful shareholding, the right to nominate directors to the company’s board. The threshold for this","page_number":200,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"30a55fc4-4e87-4a7e-8f8a-c0bff1a03bf4","block_type":"box","text":"right should be set so that shareholders can exercise it without being unduly disruptive to the board’s own","page_number":200,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"d75770a4-761f-451f-942d-91219d994cb1","block_type":"box","text":"nomination process.","page_number":200,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"e5954131-e3f6-4332-9457-ac3e7024c932","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":200,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"567b1b5c-5f93-4bbb-a616-5646f31e548e","block_type":"box","text":"We may vote for a shareholder proposal seeking the addition of either of these provisions to a company’s bylaws.","page_number":200,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"921f7078-cda0-4f11-a732-cdd34865f0d5","block_type":"box","text":"Change of domicile","page_number":200,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"8ffd605f-4ce2-4b6b-ad09-9d901fac9d3c","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the rationale for","page_number":200,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"c7e685f8-35a9-4a97-8a3b-52abe80ddc7f","block_type":"box","text":"doing so is consistent with the company’s long-term strategy and business model and the related costs are","page_number":200,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"7e95b226-4209-4b45-8773-74443f37562f","block_type":"box","text":"immaterial.","page_number":200,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"0346961d-0820-4991-b593-833399337224","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem aligned","page_number":200,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"0eed1785-9c31-45db-8ec3-6cb4e1675ef5","block_type":"box","text":"with our clients’ financial interests.","page_number":200,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"380b1357-ebcf-4c7f-a1d3-988099dddb93","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":200,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"5172aefc-4b37-4ea3-a680-42a5856e0134","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and explained","page_number":200,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"e09b3dfa-9b6c-47c7-a07f-3794f8ab6c3f","block_type":"box","text":"in the context of long-term strategy and business dynamics. Such changes may significantly alter an investor’s views","page_number":200,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"6b68ecbd-503c-4ca2-bed1-583386c17876","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":200,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"d80e2def-6897-4b46-b653-672f06d0ac4d","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its business if","page_number":200,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"0ccec6f0-cafc-4a63-b901-e4190d017ed9","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":200,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"46479498-8359-4447-8de5-bd9a569901fe","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":200,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"125983c0-c68d-4284-a43a-60e39658a91f","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":200,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"e323ea9d-0910-45a5-b836-12b7294a24e5","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":200,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"280f370c-ff38-4e65-b946-41b0967cb294","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":200,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"e48a6ee8-2842-45e9-ac27-8848bf7bc26f","block_type":"box","text":"relevant to a company’s business.","page_number":200,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"6d15d426-468f-469a-b805-c5f6b44030a8","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":200,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"502c5fde-f5cc-4121-94c6-b77d8e9693dd","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":200,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"045e86d9-5a96-4aa4-9e03-6efaf0b0b7c4","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":200,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"53c6d5f4-83ac-4655-aca0-5e9154d5a32c","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":200,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"be0e827e-383b-419d-820a-2c2ec6d5d1aa","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":200,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"99263674-5e72-45e3-997d-0625e8a50ade","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":200,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"70d7a282-4cb8-473e-8af4-eff25ae9f397","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":200,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"84ea45f4-f208-4ed3-955c-53af2ab18594","block_type":"box","text":"shareholder proposals that are legally binding on the company, seek to alter a company’s strategy or direct its","page_number":200,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"39287f7d-97cb-4a6a-9c7d-fdaca996804b","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":200,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"087f4b63-83bc-4116-ba4d-1b9530bfaa44","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":200,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"2d5dc598-b473-4ca4-8856-56204542c8ae","block_type":"box","text":"and limitations on how we can interact with the companies in which we invest on behalf of our clients, including our","page_number":200,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"0a4f0897-612e-4d9c-b560-5faf69dc227d","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":200,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"d5f01ab2-da91-452a-949c-585854e0b3c8","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":200,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"2e866176-724c-445f-a3fd-311efa6e7cbb","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":200,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"c505dfa4-0712-446f-8c71-be81b5686f80","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the jurisdictions","page_number":200,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"ccaf3f73-d3fb-4ecc-960d-71c3482d988d","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":200,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"62b693cd-5a57-43d1-9f11-bf2542f3a221","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":200,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"ce08728b-1870-461c-9e9c-ed1e93d13982","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":200,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"281028fd-9ad0-4ad3-a142-6e5ed1230319","block_type":"box","text":"statements on policy matters material to the company’s long-term strategy. The board should be aware of the","page_number":200,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"baa9f1f5-7561-47e4-a49c-31ff692131a9","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":200,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"ae688fb2-5c3f-4a23-92a0-957c66247fa6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"2983d194-557d-4366-a659-225f1b0ec11d","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"089b19a4-1565-4399-a206-7bba909a4aa2","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":200,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d9e0bc56-9254-4c86-a0b8-c3439b3dd039","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":201,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"c3e25f65-7c24-4d29-9232-524d992e1ed2","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":201,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"aac58fca-1afc-4616-8068-3bd85d5ef3b2","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":201,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"4def63f2-4ae1-431b-bf2e-748c33a506ec","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":201,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"432b7115-b690-49e4-993e-7fbd6a90dcae","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":201,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"6940f731-37c1-4c03-a0a3-92277dbe469b","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":201,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"110f3bbe-1b58-4570-a982-3d05d335e339","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":201,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"f299ad81-7a0e-45a4-b239-75673db1a87e","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":201,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"b0473bc4-394e-414c-af1e-8aa776a0a406","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"5eb29f96-f735-47b0-a77a-3986fc683384","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"861da411-ec8b-47ca-8029-ad964c72f229","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":201,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"0a770c2e-bd9b-46a9-a591-7a0f9cbf6fa3","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":202,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"f8aefa24-324d-40a5-b0ce-9ff2f2c6b4a6","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":202,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"9ca1b84e-57d7-45db-bffc-a24e72d0a272","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":202,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"e823a868-4544-49ec-b1be-1f27711348a8","block_type":"box","text":"11","page_number":202,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"14562e32-9f10-4e28-a6e6-568043e0d655","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":202,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"c9a8932d-cfcf-4bb0-9d62-6b94942972f8","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":202,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"f8d32ed4-3302-49ca-b68c-fc40c3b90c9f","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":202,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"a61d3dcd-2c66-40ab-8f5d-76190846041b","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":202,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"bbb60964-7ae4-433f-86cd-a60e3671dcf2","block_type":"box","text":"regulatory requirements.","page_number":202,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"7ba67517-94a1-4761-a622-9f967370ecca","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":202,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"efbe6b3c-7f95-41fe-a2f9-8dea4bdc1617","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":202,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"d725396f-eba3-48d6-aeb0-ec045867bf87","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":202,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"655d9a36-d208-4c24-a74a-bc4ea51ec9d9","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":202,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"2a37e6eb-6cbe-4d59-bfc2-fa257d91b28f","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":202,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"93f7cc17-d027-4022-96b7-9393fdfcbc5b","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":202,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"74c03163-8bea-4d45-945d-d991952d77c3","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":202,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"237939af-dde4-4030-97fb-9301066621d7","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":202,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"b8673d88-b1d8-4474-8470-825f41a4ae03","block_type":"box","text":"returns.","page_number":202,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"72262084-6ff2-4dd5-b549-640085ac8eb4","block_type":"box","text":"KEY STAKEHOLDERS","page_number":202,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"c152ffbc-8afe-4a5b-b8cd-c32f5cffde99","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":202,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"41c42ac5-3ec0-4efc-8d1c-e85954792175","block_type":"box","text":"whom they depend for their success over time. It is for each company to determine their key stakeholders based on","page_number":202,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"9704f2cc-7974-488c-b988-3de88fd8e4d0","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":202,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"e5ba7453-3153-4105-ac51-b93781b3a142","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":202,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"8d984956-d538-44b9-836e-6ff9f00fcda6","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":202,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"71880bdf-ddfc-4b71-a106-3ed69226c967","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":202,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"22d1c560-83ce-4560-8a59-31afac17f528","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":202,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"fcddf57d-7f80-4170-983d-fa27e122503b","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":202,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"e8f526f0-9d29-4f27-82f0-c559147e50ca","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":202,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"0eb10ef9-997f-4aea-aba6-8f9d84e31633","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":202,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"79b8a4e0-7708-4075-ba34-21ccbfe4e000","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":202,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"1afe25fb-50a8-4efb-969d-230d4d60c05a","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":202,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"260f1f40-b8ba-4bed-ac19-dc4e19fa6f80","block_type":"box","text":"i.e.","page_number":202,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"9d85cdce-5c69-4b81-a7c6-1c57aeb2f405","block_type":"box","text":", one in which global","page_number":202,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"356a35db-0054-443b-a63b-33e2fe1072d6","block_type":"box","text":"temperature rise is limited to 1.5°C above pre-industrial levels. In addition, clients in separately managed accounts","page_number":202,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"3bd0396e-390c-4bb5-908c-c8b934ef5d07","block_type":"box","text":"may instruct BlackRock to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":202,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"87c60dc9-0be1-40a4-b685-ca7c0110cd10","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":202,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"12d321a5-0342-492a-a8ff-4fe639ccb360","block_type":"box","text":"client.","page_number":202,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"06f4dc07-ebcd-435d-b956-6928c3363afe","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":202,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"80ad981f-77d3-491a-b543-739f9cf7367e","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":202,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"123c3490-3ed2-4577-aea0-00409d3ab83a","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":202,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"9cb6b93a-2f28-442b-b868-2133de9bdd31","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":202,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"67bec8b9-7b61-4aea-a174-04e474c49b20","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":202,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"03b65fc1-fd9e-4ebc-adab-c680b95c1ddb","block_type":"box","text":"include an explanation of the decarbonization scenarios a company is using in its near- and long-term planning, as","page_number":202,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"cce455e0-b17a-4b8d-8999-0ba77743da5c","block_type":"box","text":"well as its scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for scope","page_number":202,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"1935e935-fb9f-4689-8945-231c3497f37b","block_type":"box","text":"1 and 2 emissions.","page_number":202,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"3b40e375-5478-4548-b536-a5cbb901692b","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":202,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"2551fde1-eea4-414a-97f1-b264cd7e27a9","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":202,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"064c042c-79cc-45ba-a251-b7cf42a290bc","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":202,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"0fe905f2-e8d6-4b8a-aa20-8a4e07e76c86","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":202,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"8c3ca52b-19ed-4b00-9700-73cd47ade798","block_type":"box","text":"11","page_number":202,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"00111e4e-89db-4871-b922-da4f82effc6d","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":202,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"836e6369-76ff-45a8-8c3b-12794ae1d4a1","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":202,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"b35d8563-94ab-4d18-a6bb-bbabaef51b02","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":202,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"de1996ec-07f2-40a2-bf7d-3db5067961fe","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":202,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"f20644f4-e577-4793-a174-4cc33fc51c80","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":202,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"b10b1cb1-2f68-4d37-90d1-baae83881203","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":202,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"a41958d8-f713-4f8c-876c-d1c745996b30","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":202,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"39b8b8b0-b50d-4cf5-a878-cf26360d069a","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":202,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"1d3a673c-04a2-4ebe-a2dd-521480eac4c7","block_type":"box","text":"sound governance framework.","page_number":202,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"4f2fd239-a4eb-47ae-bffc-e909de4bfb46","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"62a8970d-c361-45ed-8f71-49df4d7224da","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"e43e6c8a-95cc-4772-bb49-3b680924cc7b","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":202,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"05d9d403-33d5-4fdf-8f13-8a68cc192fad","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":203,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"7585c30a-2667-47dd-99ae-478474e26f4a","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":203,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"a2f3fbb2-17ef-4ee3-9029-3c2c845fa288","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":203,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"aa3a2704-9bf3-4ae7-9858-9cee266066ba","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":203,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"b253111f-7b43-4c12-a3d0-b3cc6c1456e2","block_type":"box","text":"their investment mandate and fund objectives. For the funds and accounts in scope, voting on matters not related to","page_number":203,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"46110ae2-94b9-4477-8619-2b0f639a7b7f","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":203,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"af45e207-a949-400d-98cc-c484d9c6c6ac","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"135f0143-479f-454a-9365-03f9b3e97f3b","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"da6df0ed-ae01-4970-8535-b80705bf8481","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":203,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d70e96d4-b5d3-4f66-9790-e7c074f47cb6","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":204,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"24139525-f8dc-41cb-848a-44a9a7d38319","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":204,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"274d448c-94c9-431c-a4e2-55a69ab76675","block_type":"box","text":"Oversight","page_number":204,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"aa3f1002-c04a-4dea-9079-6b9bd81c9b50","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including voting in","page_number":204,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"29c16bb3-39a2-47bb-ba34-feed5c76132d","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":204,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"c4d8aa42-f5c3-4c1f-88f6-9b13dc5cf5a8","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":204,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"c0fe9a67-e94b-4158-a394-59997c311590","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":204,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"f932fb42-9dc3-4199-8869-0fa017bcc457","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":204,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"b8361ad1-12b8-48ae-920f-f2b3ac21b0c7","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":204,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"7314280a-9775-4ecc-b597-1e08a87df1d1","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":204,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"86fa52a1-8041-4628-8ae4-3df5d5d03467","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":204,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"a39f27f1-b093-43ef-99b6-2149437b1274","block_type":"box","text":"to BAIS’ policies and practices. It does not determine voting decisions, which are the responsibility of BAIS and the","page_number":204,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"19d8a8f3-d4b1-4677-a779-5f2d508e2faa","block_type":"box","text":"relevant active equity investors.","page_number":204,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"32cf805c-7d68-41e9-b921-d5162ab44043","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":204,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"98982590-2a68-4614-8f09-72cbcc9a0e25","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":204,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"549f3ce7-53b7-4a4a-9558-881c329fc9f3","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":204,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"0e5fbfcd-87eb-42c1-8a8b-add961b23f94","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":204,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"154047eb-a81b-4f40-8820-36960690bc30","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":204,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"47055628-ee39-4823-8f65-babe70b9cc16","block_type":"box","text":"third-par ty vote services providers” below).","page_number":204,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"9978cbae-e8a4-4f13-a6e1-4c59fa3e02f2","block_type":"box","text":"Voting guidelines and vote execution","page_number":204,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"53cda690-83d3-400c-b73d-368d34063d46","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the voting items","page_number":204,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"2a97404a-3eb8-49e4-aaca-65cfc8f2b9ad","block_type":"box","text":"submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have voting authority. BlackRock votes","page_number":204,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"8e0eecdd-9602-448c-a4b5-cb7d1abdcbcf","block_type":"box","text":"(or refrains from voting) for each Fund for which we have voting authority based on our evaluation of the alignment of","page_number":204,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"de845871-7f11-442c-b81b-7d9d67502e3b","block_type":"box","text":"the voting items with the long-term economic interests of our clients, in the exercise of our independent business","page_number":204,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"6bbd3feb-056c-41fe-807e-23b105e208ec","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":204,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"111594d1-df2b-4774-9e82-d004659466e3","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":204,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"2765f2f9-7cc8-4ea8-a072-6d9109a77e3f","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":204,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"4b5f8373-b7a1-4013-8ea5-7d8c4d236b22","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":204,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"7e5a59ff-a49a-4bf2-a894-ee4ac0a5385b","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":204,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"c9f1fc3f-4a5a-461e-8aeb-1585c4126844","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":204,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"77851944-713d-424a-b452-9407999a47b6","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case basis, in the","page_number":204,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"2ebc344e-706f-44f1-92f2-3462a2a4bdda","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":204,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"b4de58be-2864-4016-b1cd-0c9477137e99","block_type":"box","text":"do not indicate how BAIS will vote in every instance. Rather, they reflect our view about corporate governance issues","page_number":204,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"0f657049-3be1-4bd3-9515-873ef5cb6d93","block_type":"box","text":"generally, and provide insight into how we typically approach issues that are commonly put to a shareholder vote. The","page_number":204,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"b3bafc8d-b9f9-4903-8c11-1cd6e29684f7","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":204,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"d0ed0c55-610c-44ee-9912-09e5609298be","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":204,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"6903b827-3494-4908-bacd-974ea6ec0128","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":204,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"8c52f928-9d15-4adf-b23e-1d92f982281d","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":204,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"0bfdfabf-230e-4ea0-8308-37abcdf7487d","block_type":"box","text":"well as the desirability of voting such proxies. 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We are not suppor tive of impediments to the","page_number":204,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"14859916-006f-44c2-a3a9-9647be159555","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":204,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"a3cbc21f-f134-4c1d-b1d1-b82c5044acf9","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. 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BlackRock contracts primarily with the vote services provider ISS and","page_number":205,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"c14b0cfe-3772-46aa-972d-f7e8e9b8690c","block_type":"box","text":"leverages its online platform to supply research and suppor t voting, record keeping, and repor ting processes. We","page_number":205,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"48f3f0c4-e1b8-4118-91b9-4b91ee4b5044","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. 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Agenda items that are not routine are referred back to BAIS to assess, escalate as","page_number":205,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"8646709c-9410-4ccf-bea8-eb6ee8e24056","block_type":"box","text":"necessary to the relevant por tfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":205,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"684a51fb-a1ca-4503-b99b-5c43841dc196","block_type":"box","text":"vote services provider at any time prior to the vote deadline. 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outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":208,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"669aef8c-f042-4eee-a1f8-1c21ec4dcaf2","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":208,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"e3315764-bf71-491d-8945-931bf7efd067","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":208,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"ed4b62dd-d6c7-4823-9e8e-611cc48f08cc","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":208,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"582d6159-f980-4fda-9719-5ab119094dd2","block_type":"box","text":"the iShares Core S&P 500 ETF. In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":208,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"958e0ec1-7ba7-4086-b062-7ae51c1f054c","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":208,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"5965fd56-d8d8-41f4-9b2d-2a843242de6f","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":208,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"237f3f30-ba06-4a3b-ad8b-6f214f0a2d48","block_type":"box","text":"Appendix A.","page_number":208,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"1930b466-8a49-45fe-870f-e3a69730a848","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy issues in","page_number":208,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"74c386ec-2d60-4bb9-9b08-dfb69ceed585","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines and","page_number":208,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"adc58f17-46d9-40bd-a117-5d95bf61d2ad","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":208,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"4b53bd76-18c6-49d6-a24a-3ecce94773a2","block_type":"box","text":"Conflicts Management","page_number":208,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"ed0645b9-e49e-4c8a-a4a3-954e8112d7be","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":208,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"09d4040d-4fe3-4d7a-9e33-779255e6d364","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":208,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"4aed20e7-7dae-45ed-b959-4d0aababd358","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":208,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"edf89907-c70a-4282-a661-a376033827d7","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":208,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"00df3061-baba-4757-adb4-396b7e7ef1ac","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":208,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"68b04c7c-2d96-46f0-89ad-9a3d83624ae6","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":208,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"344887d5-47f1-4627-b635-fb353b0da514","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":208,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"3168f256-c09d-48dd-9498-bf4411b1a0e1","block_type":"box","text":"In cer tain instances, BIS will engage an independent third-par ty voting service provider to make proxy voting","page_number":208,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"516f57ee-591c-401b-9d41-6fd0e36892dd","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":208,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"5222ecdb-ce4d-418f-a0da-959f5c21ea40","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":208,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"8b73cbfe-03d8-4e4f-a602-6c37ee06d631","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":208,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"21279164-ca4f-4cea-8d8b-8cf8bbfeb7f8","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":208,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"07ec59f2-bf0e-444f-9f34-ce53c70ed512","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":208,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"cc4e2e38-f4f2-4744-88f5-84e294cd3ac8","block_type":"box","text":"connection with proxy voting.","page_number":208,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"9d6666f4-20d2-4013-bb41-f05d51ec3b0e","block_type":"box","text":"Reports to the Board","page_number":208,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"24d92275-0722-4ff8-965b-af0e478f7770","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":208,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"912571bf-8ace-4824-92d6-7f08fbff4a93","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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BlackRock offers a","page_number":212,"box":{"x":70,"y":82,"width":806,"height":12}},{"id":"e974a49f-d620-46fa-bdb3-298871a0c780","block_type":"box","text":"range of proxy voting policies to reflect clients’ individual investment choices and goals.","page_number":212,"box":{"x":69,"y":98,"width":624,"height":11}},{"id":"c24ef8e9-54bf-43a4-86a7-4ec5e2d5d3f3","block_type":"box","text":"BlackRock Investment Stewardship (BIS) is responsible for stewardship activities in relation to clients’ assets","page_number":212,"box":{"x":102,"y":120,"width":781,"height":11}},{"id":"5e3f34d1-dfc8-4266-b9d7-123db207105f","block_type":"box","text":"invested in index equity strategies. BIS takes a long-term approach in our stewardship effor ts, reflecting the","page_number":212,"box":{"x":70,"y":135,"width":769,"height":12}},{"id":"15d48c98-bf05-4923-bd18-b52415eb2276","block_type":"box","text":"investment horizons of the majority of our clients. 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Voting at shareholder meetings","page_number":212,"box":{"x":69,"y":221,"width":260,"height":11}},{"id":"5a07c351-ee5e-4c98-97af-fea1a8b6e591","block_type":"box","text":"on management and shareholder proposals for clients who have authorized BIS","page_number":212,"box":{"x":335,"y":221,"width":566,"height":11}},{"id":"05d8325c-e460-446f-803d-7ffd688d716f","block_type":"box","text":"to vote on their behalf.","page_number":212,"box":{"x":101,"y":236,"width":160,"height":9}},{"id":"aba559c1-c38b-467b-ae1f-981cb8b131cd","block_type":"box","text":"3. 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Reporting on our activities to inform clients","page_number":212,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"42d69118-bb15-4d20-9c98-8359ab6999a3","block_type":"box","text":"about our stewardship effor ts on their behalf through a range of","page_number":212,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"8b15e95b-45d0-44f5-bb07-e09b79dd6de5","block_type":"box","text":"publications on our website and direct client communications.","page_number":212,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"06d6aecf-1b90-46e2-b0c3-e090d344ec9e","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":212,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"f4939798-12ee-4a30-a190-122c6642aa91","block_type":"box","text":"voting on corporate governance matters and other material risks and oppor tunities under BIS’ Benchmark Policies.","page_number":212,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"24c5abc0-6e29-476c-bb48-4f5fcfb384c8","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":212,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"52e399f4-0437-48da-b550-f38bc586c964","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":212,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"c5cc6525-4d43-4b37-8693-f43bbe33d07b","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":212,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"03455b88-8d44-46be-ac39-7e9f8b90f2a3","block_type":"box","text":"2","page_number":212,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"4614dfb0-4095-428b-971a-ef83723ca071","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":212,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"858b3722-fc00-4c38-ae31-33b92c8d31a1","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. We maintain global","page_number":212,"box":{"x":102,"y":443,"width":751,"height":11}},{"id":"453df769-2ca6-4e67-81d9-4fdd0433647d","block_type":"box","text":"principles on corporate governance, which guide our approach to stewardship across jurisdictions, while recognizing","page_number":212,"box":{"x":70,"y":458,"width":824,"height":11}},{"id":"630070e7-09a2-411e-932d-80ff72b4e95c","block_type":"box","text":"the unique characteristics of the different markets where companies operate.","page_number":212,"box":{"x":68,"y":473,"width":553,"height":11}},{"id":"e19f2d4f-e4db-45ef-b10a-c3b9e1bd0477","block_type":"box","text":"Setting, executing, and overseeing strategy are the responsibility of management and the board. 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Our role, on behalf of clients as long-term investors, is to better","page_number":212,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"9cb72dfb-7830-490c-958f-788665fd40dd","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on oppor tunities to help protect and","page_number":212,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"40ba58af-1b01-459a-8688-7d7ffd289555","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":212,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"a2d0ab73-7359-415a-af04-3e80d5af7efa","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":212,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"03365bfc-a803-4e89-86d9-9629158f269f","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":212,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"8f6607c1-9981-4ae7-b7b1-c521359aa9c1","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":212,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"de8bc026-6b2d-43a7-bf6b-7fc62a3fb18c","block_type":"box","text":"individual investors that they serve. Through stewardship, we assess how companies are creating long-term financial","page_number":212,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"fa7ea927-423b-4b1e-b3f0-435402ce0de9","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. Our stewardship","page_number":212,"box":{"x":68,"y":654,"width":780,"height":12}},{"id":"5baf4f99-15f1-46dc-a2bf-ac730193f313","block_type":"box","text":"program - including when engaging with companies and voting at shareholder meetings on behalf of clients - is","page_number":212,"box":{"x":70,"y":669,"width":784,"height":12}},{"id":"02ff8547-e2dc-4abc-a065-e93b627d99ba","block_type":"box","text":"conducted from a long-term investor perspective and takes a financial materiality-based approach, focused solely on","page_number":212,"box":{"x":69,"y":685,"width":828,"height":11}},{"id":"cb8bb307-0561-4674-9715-b1153605fa10","block_type":"box","text":"advancing clients’ long-term financial interests.","page_number":212,"box":{"x":69,"y":700,"width":334,"height":11}},{"id":"4acb7bf7-3ce2-4765-aad0-e5819482832f","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen our","page_number":212,"box":{"x":102,"y":722,"width":745,"height":12}},{"id":"78f2fce7-d694-4b5e-b9f8-deab6aa4b9e4","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":212,"box":{"x":69,"y":738,"width":785,"height":11}},{"id":"61bc1c7b-849e-4b86-856a-8cd76e351b8e","block_type":"box","text":"oppor tunities over time, and to help inform our voting on behalf of clients. Engagements provide companies with the","page_number":212,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"c98c8fe2-f7b1-42e3-90cf-2f21516f6031","block_type":"box","text":"oppor tunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":212,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"e1ea86ae-1e45-4ea6-bab1-a3a57e54fb54","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":212,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"3d546efb-8ab9-4125-88f8-a2a7acc19d80","block_type":"box","text":"1","page_number":212,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"16e3de3d-0754-4f50-baeb-20f601f59bbf","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":212,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"e09ac47c-75e8-40b0-8699-eef31a4440c2","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":212,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"44ff74cc-6a98-4ef1-a532-307ba5095c8e","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":212,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"89462061-714a-4ec0-acb9-d6d5acef063f","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":212,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"d29520c0-23cd-45d8-a68d-c57014e27cd3","block_type":"box","text":"2","page_number":212,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"b3b85e89-2409-41fe-8bae-8ecec4e33e34","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":212,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"6a5d5ce4-a87f-4168-ae0f-85203cd2a9fd","block_type":"box","text":"five themes on which we most frequently engage companies, where they are relevant, as these can be a source of","page_number":212,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"9e049414-1f7f-4371-91f5-7ed1dc5148ca","block_type":"box","text":"material business risk or oppor tunity.","page_number":212,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"b87f0608-3653-4022-96d5-03cff5f7fbff","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"581912e8-a7a5-4d31-8ebb-d5bb5c57cf14","block_type":"box","text":"Global Principles | 3","page_number":212,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"f182bbbf-a855-44d5-b3cd-4a431fde19ed","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":212,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"964dfe9a-ba19-4465-a583-8b50bc2949fb","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":213,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"f79fb154-4aa3-46c8-8cbd-3a8558e603b7","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":213,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"6512bb48-4fe0-43c5-a5fa-6f8b35e430da","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":213,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"08d25b3b-23f4-4207-9dda-d4123b9680c1","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":213,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"0a44d1fc-ee18-45d2-b549-ad22f924f70e","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. Our vote decisions are often informed by several","page_number":213,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"8f95c2e1-732e-4c35-983b-5ecfaf27da4e","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-par ty research,","page_number":213,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"11598c91-0b97-4ba8-8ee1-8279f7057d3a","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":213,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"9c8ff9aa-5977-4f35-9454-2e0d52678e56","block_type":"box","text":"Generally, BIS suppor ts the vote recommendations of the board of directors and management at companies","page_number":213,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"aaf4aa43-d9d6-445f-a1ce-a0f9b8c13fb8","block_type":"box","text":"which have sound corporate governance and deliver strong financial returns over time. When we determine it is in our","page_number":213,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"9467afe1-7d16-4b04-9950-1dd157bba5fa","block_type":"box","text":"clients’ financial interests to convey concern to companies through voting, we may do so in two forms: we might not","page_number":213,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"73a35c66-6511-430a-a06e-added5dad912","block_type":"box","text":"suppor t the election of directors or other management proposals, or we might not suppor t management’s voting","page_number":213,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"effcb826-1d19-4d60-8067-71f6eba83a54","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":213,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"6fe18714-0dfb-4378-b75f-be480c4c204c","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":213,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"e248ecf6-36c0-4719-9df8-ddeaec59e869","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by cer tain rights attached","page_number":213,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"d41fa553-5cf3-4d60-98f1-f77f628dc39c","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":213,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"95922da7-9595-4a8f-a4b0-bee9a02a984d","block_type":"box","text":"3","page_number":213,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"3e61a197-a80c-44af-8548-6c9b85a712d8","block_type":"box","text":"For example, in","page_number":213,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"53fb7f1d-e0d9-4799-b815-43e0f7d2beba","block_type":"box","text":"most markets, shareholders have the right to:","page_number":213,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"b1bc678d-d88f-4899-baf1-88c0412c4ada","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"3950b515-e6ef-40e4-bae2-a18920a3de06","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":213,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"12a6eaf2-8e93-45bc-8249-777dbbfd6c99","block_type":"box","text":"char ter or bylaws.","page_number":213,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"c1a498ba-20c9-45d3-aa71-5499e5d7df94","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"35f40d55-7680-49bd-b60e-1b49d3bac610","block_type":"box","text":"Vote on key board decisions that are material to the protection of their investment, including but not limited to,","page_number":213,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"3c1c7d32-c907-450b-9ac0-0872d132d97e","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":213,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"af711588-b930-45cd-9e2c-4b588d7c3080","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"8e2af7bd-a684-47c4-82f1-561cddcad211","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":213,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"64888d3d-8d79-4bb4-b65b-b77278b33ede","block_type":"box","text":"are material — to make informed decisions.","page_number":213,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"8e6b9e39-a70c-4899-a3ce-f55f66cb9f56","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":213,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"8ec71ccc-cf1c-4fef-8540-d5281623a3af","block_type":"box","text":"In our experience, there are cer tain globally applicable elements of corporate governance that contribute to a","page_number":213,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"3196aeab-1cf6-42bc-99b8-8c1cac06d370","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":213,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"636626a5-c308-4047-a732-cbd79478c1aa","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":213,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"5e527d3e-eaac-4aa8-afad-b5ae16ffe398","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"c2975297-e827-42a2-9640-ef9f6b8532ad","block_type":"box","text":"Boards and directors","page_number":213,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"c67d1b8a-1ab2-4d98-99ee-27f5934adb69","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"e9f8dcb6-14cf-49c5-8077-dab16de8d08a","block_type":"box","text":"Auditors and audit-related issues","page_number":213,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"c6eaaedb-1e91-410c-ac08-19515e1a2b31","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"ee132768-b216-4ea8-9214-26a697b0ef58","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":213,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"fbc70481-c025-4f72-a301-c3ef12b708d7","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"4d628d9c-6b09-405a-aed0-56431ac0e5bc","block_type":"box","text":"Executive compensation","page_number":213,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"b124a269-8a1b-4680-9898-bcc9a94f969f","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"1df60fcd-4a09-4d39-9ae3-8184cea72f4f","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":213,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"4729960b-07eb-4c0d-b276-3fdbd800b67c","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"7b07c7be-3b55-4b99-8782-e0c58b02b1cd","block_type":"box","text":"Shareholder proposals","page_number":213,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"5b3f5ca5-ef99-4104-98b5-f4aaeabbe4c8","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":213,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"c0bd5c16-66a9-4e10-a003-fe8ae64ab3de","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":213,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"d4ced26a-3fbd-486b-ab39-3a7c6dba1964","block_type":"box","text":"which companies operate.","page_number":213,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"8195a0d7-166a-4a70-bcf9-330e9451a89c","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":213,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"4bfa30ca-7f69-450e-9e48-c7e7192dcc80","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":213,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"ce4aa8ef-b6ef-407c-a13b-886bec48abb3","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":213,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"b21f69e2-a5ef-4cce-99ae-a16db7ca8032","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":213,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"4d0fb80c-248e-4a00-a27f-e9cd72b0d490","block_type":"box","text":"4","page_number":213,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"c806d4ea-64e3-4707-9a79-6da944c47282","block_type":"box","text":"3","page_number":213,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"3580e196-ba18-4734-a642-c236bc8df841","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":213,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"f7f4b011-e0f6-47e1-b678-39e82b844ab9","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":213,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"1a8453f0-c607-4473-ab6f-4ce02c012ffe","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":213,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"0be6779b-df9e-4870-8dc9-477083557516","block_type":"box","text":"4","page_number":213,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"22f4050f-53e6-4d19-99e9-0fcf18836cc1","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":213,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"deb8c25b-b6fb-4576-8567-bbeb01278fa3","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":213,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"d6cc11ef-d4f3-488c-b026-7453bac61962","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":213,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"ff6e690d-74f9-4d81-9cf8-7449073682e0","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":213,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"a3e19a21-eb77-465d-8e55-66cf6dc9d525","block_type":"box","text":"guidelines.","page_number":213,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"3fe81d8b-f9bd-4e1f-a07a-99c1fe38323b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"78fee9db-21aa-4ee2-918d-da68d114f33f","block_type":"box","text":"Global Principles | 4","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"ea54b369-e038-4112-8054-33b2ea064a44","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":213,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"4de65bf9-bdc7-48c0-8837-7ade2a286723","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":214,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"878f680e-8b92-496f-aab2-4bd2b8a1f966","block_type":"box","text":"Oversight role of the board","page_number":214,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"7aff3b26-96b2-4fc1-aa7b-8ff8fca93150","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":214,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"1c5eb860-8259-414d-83d2-1b4ae197e575","block_type":"box","text":"characteristics relevant to a company’s business enhance the board’s ability to add long-term financial value and","page_number":214,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"df224429-40d4-42fc-9ddc-bfd6f633ff9c","block_type":"box","text":"serve as the voice of shareholders in board discussions. In our view, a strong board gives a company a competitive","page_number":214,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"367386fc-b083-4b7b-8978-b9ddeefd23f6","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":214,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"4e17e6a1-3a82-431e-9570-2d71e6f2a553","block_type":"box","text":"long-term financial per formance.","page_number":214,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"5386dde8-f173-4ffc-908b-c88a61a58af8","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":214,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"59ac9144-966c-411f-b5bc-16ff28161b11","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":214,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"3c8c2a60-28a2-4128-82a0-24110d91c4d2","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":214,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"aa811441-9658-4d23-b1cc-f8c89558c2c7","block_type":"box","text":"the business environment in which a company is operating.","page_number":214,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"35c51a1b-7c88-445a-a509-de829a911346","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":214,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"e4202097-103d-4370-9497-701e7fad9e8d","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":214,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"cf9691e2-b898-4b65-914f-b3c36d980efe","block_type":"box","text":"long-term financial interests of investors. This includes having clear descriptions of the role of the board and the","page_number":214,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"f5a2c38c-044e-4d28-b7f3-f8dfb34ae324","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":214,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"b62d119a-1b40-470b-b2fe-67790eae77fc","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":214,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"a6d00bae-d0c5-4053-8c6e-c498f0a254c7","block_type":"box","text":"mitigating such risks.","page_number":214,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"55255844-723f-41bb-b372-7f76c5541c5e","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":214,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"936b52e8-5962-4baf-9a9a-b57b014bf1f3","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":214,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"611e635d-0be9-4205-9779-82052497daee","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":214,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"0d9c6894-0482-4aaa-b8e8-9b375b0779d0","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":214,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"c863ae7f-79f5-418e-bc69-f9351af12296","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":214,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"3241a7b3-6baf-47d4-b46a-083577db8cb8","block_type":"box","text":"strategy.","page_number":214,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"a6bfbbce-6fc5-4d90-a34f-f0cbdfc2b14a","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":214,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"e2455cd0-8a48-4759-957a-82a95ac07742","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":214,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"7b4b0604-65cb-4e18-a1d3-e7487c28846d","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":214,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"df856472-f628-412d-b631-ba350cc59f7b","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that speak to","page_number":214,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"e8729d1d-21df-4dee-a3e2-745721581acc","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":214,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"c61aa522-0394-40c7-b1fb-0ba01ce84846","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":214,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"bb1d3006-ab97-41f3-b7bc-27f8609dbdd7","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":214,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"b1b8930f-730b-4b32-91f7-56b4035a31a3","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":214,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"3575231b-2e2b-4dfb-9347-fffe9adb72f7","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":214,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"14ec95b1-4a46-4b7f-94e2-7d3e72690c77","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":214,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"223a338a-370e-4519-bb96-e3520fcd0aa1","block_type":"box","text":"Regular accountability through director elections","page_number":214,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"5e5a8024-520a-450d-8a08-80a4e033286b","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":214,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"9bb5649e-c921-4d73-9652-f0ee8ca7885e","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":214,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"f8d9b501-796b-444e-9d5d-eaeee6ece46e","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":214,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"93f1f4ac-3925-4c86-8fde-343503185773","block_type":"box","text":"5","page_number":214,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"eb8ac3f1-3229-45d9-9fac-8cbbbd388654","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":214,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"695dc163-59ed-4eb6-b94b-0267e132d14f","block_type":"box","text":"decisions in a timely manner. When board members are not elected annually, we consider it good practice for boards","page_number":214,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"df98a729-b89d-42d2-af09-aac3506d85c1","block_type":"box","text":"to have a rotation policy to ensure that, through a board cycle, all directors have had their appointment re-confirmed,","page_number":214,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"23814140-3ed2-4e80-a380-f28f300c7f40","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":214,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"412e89f8-5e53-49d1-bf64-73ac6316ac55","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":214,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"d103d489-e6ba-4609-968f-f4465be57329","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":214,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"fc5b6661-9e96-45b9-85e4-b1c67f230dcc","block_type":"box","text":"developments in the company’s strategy and the market environment. In our view, it is beneficial for new directors to","page_number":214,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"a7ff0c61-1c74-4b20-80c5-634385c6cd64","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":214,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"edbef174-de73-4f5f-bbf0-805320666cce","block_type":"box","text":"5","page_number":214,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"ce17343f-d918-4aa6-9c75-e9d9002c256f","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law,","page_number":214,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"91b3ce87-4062-4d91-8067-cebbe0768023","block_type":"box","text":"market regulation or voluntary best practice.","page_number":214,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"75094272-5842-4753-bd34-cd133f1b4779","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"682fe6a1-8f85-4531-be16-e1e8186e91e1","block_type":"box","text":"Global Principles | 5","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"f0fee718-86d8-4110-a172-06dc9778a395","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":214,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d724c271-65f3-45a8-8cca-a473aedfd2a8","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":215,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"ab2ccf45-851f-4ea7-90d7-a4d080f215d7","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":215,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"adc7df40-498b-4245-b4a7-855e5adea00e","block_type":"box","text":"recently.","page_number":215,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"785f37c4-6faf-4127-8186-6e90502fea44","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":215,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"27931b61-a419-4294-a7da-4d7f7d25d434","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":215,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"36cc8d84-4bbf-47c9-be2d-1347a85fe0d2","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":215,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"be5e93d9-8b9b-48e1-8a04-de99b9d06c3e","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":215,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"780c7d02-9b2d-4997-9330-ce6e449aa03d","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":215,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"65bf76b1-2313-4016-aec6-05231a4c72c1","block_type":"box","text":"Director independence","page_number":215,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"50223103-97e8-4ce0-b08a-2f31cbe0bfa0","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":215,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"0996104d-209b-4c67-997c-4e4f648bf6e8","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":215,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"fcc46933-e03d-491d-9065-eabb89e32c46","block_type":"box","text":"6","page_number":215,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"8def2e9d-8b46-4e2a-bdbd-a8d0dc1471a1","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":215,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"e72f19ec-0940-4c87-9421-408522421792","block_type":"box","text":"directors, free from conflicts of interest or undue influence, to ensure objectivity in the decision-making of the board","page_number":215,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"cf7d1928-7b0c-498e-9e2c-00f339816bec","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":215,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"5a767c20-807c-4c2d-8f5a-11d0f7a1a61f","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":215,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"bdb4a2b2-f910-4897-b118-6d9078dbe740","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":215,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"8f8ed05e-ec09-4523-809d-632004f538cf","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"ecec07cd-ca2e-4be2-aef2-0de7d51ae21f","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":215,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"c496b925-d787-4fe9-80e8-fd11b10146e5","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"8902604c-aec2-4918-9174-5f66c0ad38aa","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":215,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"2d33695b-b3a8-43d3-9429-d7b096f5ec39","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"2a53bb31-b122-45c3-b5c7-29d0c7004cf5","block_type":"box","text":"Interlocking directorates","page_number":215,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"a7c86dc4-0dc0-476a-93e7-da571ee6aef8","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"90aeed3d-dead-4c56-9f9e-20ca1bf94d52","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":215,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"265b147b-f413-4ded-bd89-feb9b1ee11c0","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":215,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"3d4ef6e0-e447-4493-806f-e606a5f9996c","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":215,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"365dfe7a-47b6-4247-82a3-00c7549d07f7","block_type":"box","text":"independent board leader. This director may chair the board, or, where the chair is also the CEO (or is otherwise not","page_number":215,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"33dfa4fa-9ff0-444b-95d2-55bca6981947","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":215,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"52d1fb6d-d8d8-485a-a378-a81c641e0382","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":215,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"a1576d42-576b-4535-b944-6eeb41b1d576","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":215,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"89bd7670-62a9-4160-be80-6f5f7ea56046","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":215,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"7f863c74-6398-44c7-9848-a08b661e3c92","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":215,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"2e1b9643-0357-4845-a65a-a66b16cf61aa","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":215,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"4271bfdf-2a6b-483e-8a31-3bdb73e20437","block_type":"box","text":"require additional focus. It is our view that objective oversight of such matters is best achieved when the board forms","page_number":215,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"17f7e0de-ee55-4dd8-a5c5-6ce0abe05f6c","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":215,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"54ac6dfb-3fb1-409f-ba43-14ecf6488d57","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":215,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"3a33eca4-eed4-44ce-9732-0732cc56f01c","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":215,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"6504becc-6002-4169-b74a-6a88e5968b73","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":215,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"35fc2e09-f9eb-489e-bf92-f90a847e0562","block_type":"box","text":"Sufficient capacity","page_number":215,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"b380851d-dac9-4f7c-8eee-976c7aeb13d8","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":215,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"e68ead70-76d6-49d9-82f1-49ac97c366cd","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":215,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"048d32b0-e65e-4546-ac42-ba80158a4b30","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":215,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"0c4816b0-5642-4afb-ba83-ae4d69a20c20","block_type":"box","text":"practice when they don’t take on an excessive number of roles that would impair their ability to fulfill their duties.","page_number":215,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"8917276f-da7d-4fac-a423-93e066ce5d66","block_type":"box","text":"Board composition","page_number":215,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"730bf964-169d-4fed-8c72-d0c1a3f28e51","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":215,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"95ca025d-1699-402e-94cd-443ac0b3fb5a","block_type":"box","text":"capitalization, and ownership structure, as well as the market in which the company operates. We find it helpful when","page_number":215,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"7a783c5d-51ad-4e3e-ae29-71bf2cd475f6","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":215,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"3df523e3-72b1-4011-934b-fda42ea8b7a9","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":215,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"fd1ab0dd-1e50-4d3a-9892-72270eb026c5","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":215,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"ceca2903-1a3e-42e8-8aa5-5fd8fe6259a9","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":215,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"b3169838-5b76-4a91-8eb1-17e64222a402","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":215,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"1c05ab86-057e-4b2b-ac84-4b01378da8d2","block_type":"box","text":"6","page_number":215,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"db0d2160-6079-4145-9e6e-13588c887d73","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":215,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"93e73663-4a7a-43d2-a7d6-ab7903be3f64","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":215,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"54dfaa7d-1d30-4644-becb-319d6db54298","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"42fef2e8-517f-471a-a9a4-91aae72f7ac9","block_type":"box","text":"Global Principles | 6","page_number":215,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"707f9a04-0cff-4ae4-b0db-5f51023c78cb","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":215,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"1562f15e-e777-4940-8023-777c64d10ad1","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":216,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"a80739ce-eba7-4635-ac34-b21aadda813c","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":216,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"4ec97b9c-0d8b-4bc0-8d98-0601e71d97ce","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the board","page_number":216,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"a3895386-96f2-4102-b8e7-39acb91a05d4","block_type":"box","text":"room. We see it as a means of avoiding “group think” in the board’s exercise of its responsibilities to advise and","page_number":216,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"2db17f8f-cd06-452d-91c7-64a0cec0e9b1","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":216,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"5ca29cc5-1092-4157-8803-2cf4de5ef4b1","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":216,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"6a506bff-a637-4353-b4a7-84393c0e8e17","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":216,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"c1a9b9ec-5c00-48fc-a7c1-a0e16750646f","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":216,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"8dfbf621-0538-49c3-8857-12179b7dd115","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":216,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"67d4ca12-6024-494a-9220-22c027ec6ea5","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":216,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"97fa8792-22f5-4470-b2d6-bfa901e06c3b","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":216,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"65951c14-9c0f-4729-951a-a215dfffca14","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":216,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"d285518b-e37c-46ea-907a-cd2e74d0b4ab","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":216,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"29cef3ba-9f0f-47f2-974d-6df58fb97e5f","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":216,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"72ba988c-1a0e-4630-b9bc-5a8fd283b34a","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":216,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"d2b57195-f641-459f-a247-989d965db343","block_type":"box","text":"systems.","page_number":216,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"a3a64fc3-8f34-4cc5-9c6e-c9fbdc5bc423","block_type":"box","text":"7","page_number":216,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"1f8c1691-c8af-4582-9c29-132286d5fd09","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":216,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"a73184f8-be07-45d4-b2d0-3a1cb6a0484b","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":216,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"b8a27ba9-2882-4a40-9a80-032e34c20504","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":216,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"f6d01dc1-b5a9-4a26-ba34-3e136008b012","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":216,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"0294b392-b5ce-488c-9b97-7c978f4a6750","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":216,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"226cd525-f57d-4caf-8fa3-5a6304edcdb3","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":216,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"d567a31a-1272-499f-a04d-7f4ff560f805","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":216,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"db2acadf-c8e7-4b84-b0a7-fd97ec726ae7","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":216,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"b56ec073-b5e7-4fee-88c8-ee35bdce4036","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":216,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"270cc1df-0bf7-44e4-baa2-16569bf9f02d","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":216,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"693a84ac-4c9a-4dea-a09b-1429c41f753b","block_type":"box","text":"or internal audit function.","page_number":216,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"986d285b-0d62-4f3d-ad65-4f393ccdf2f4","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":216,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"ddef0ba0-3b9e-42bb-9754-9c26cb72835e","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":216,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"eae7ce76-e32a-4621-922e-b73e0da3c56b","block_type":"box","text":"and are seen to be, independent. Where an audit firm provides services to the company in addition to the audit, we","page_number":216,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"592eeee1-2e3f-45cb-b06e-a8f93cc5f943","block_type":"box","text":"look for the fees earned to be disclosed and explained. We look for audit committees to have in place a procedure for","page_number":216,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"26fbd384-9ce0-4f56-95d2-e3d3208a81d1","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":216,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"3df7264a-4d16-4002-a0c3-68bfe54c617b","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":216,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"d3a8b572-c919-414d-a594-72a965d9ff1a","block_type":"box","text":"management practices and, more broadly, the quality of the board’s oversight. We look to the audit or risk committee","page_number":216,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"549746c1-c227-41fa-b0e9-b9a796f68149","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":216,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"70513ff3-12f9-489d-97a9-9188a96d71dd","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":216,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"3f76436b-8fdc-4b9e-bea1-58c4ea0ae2d9","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":216,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"71769fac-2e57-4d73-8c1a-a84a69393367","block_type":"box","text":"risk.","page_number":216,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"2a8a7b00-8279-43a2-bb14-1fe7e419a016","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":216,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"a00b700d-9247-4ef1-afc1-265f649b9ebc","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment and the","page_number":216,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"c9ceaab7-dbfe-4600-8cd9-69ba30e34e32","block_type":"box","text":"priority of their interest in the company relative to that of other equity or debt investors. Pre-emptive rights are a key","page_number":216,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"94ae2bf9-d01f-4552-a0b1-3f02fbceb522","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":216,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"ea27f92a-8735-4afb-bf8c-b1880985775d","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":216,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"641fc201-a026-4580-91af-f6c852acbdac","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":216,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"b62bc889-2b26-4ccb-902c-c3f64df3b077","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":216,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"7210d5c4-385e-45cf-8913-f734e37d282e","block_type":"box","text":"7","page_number":216,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"34abd4a4-6a55-441a-bef3-2afb2305855c","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":216,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"173aa64f-1194-4b54-86e6-6152e714ab69","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":216,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"cba1f5af-757a-4182-8f1d-ea6ac792a2dc","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":216,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"985e796f-32c4-4d64-84d4-f4f00624668f","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":216,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"45858e57-de5f-4628-b0ca-d797f881d121","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":216,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"3ce670d8-d002-40de-8d69-aa8d4210b22e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a2e6615e-5f21-4b41-9134-658c54d4bda9","block_type":"box","text":"Global Principles | 7","page_number":216,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"ff3538cc-88a8-4804-8a3f-7d80b2aa5000","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":216,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"29e00b60-cd62-4347-998b-778f7c62e06c","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":217,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"e5db9542-9e59-4c9f-8784-33a15c2613b8","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":217,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"1ff5db2b-0caf-45d3-9b38-0de4dec98ee7","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":217,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"a9d76221-086e-4686-9864-504a3b655946","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":217,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"d3adae91-78fb-450e-bb63-06e8986d0b22","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":217,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"ffe553b9-029e-4bc4-a814-54768f186817","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":217,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"be38495c-9388-48c5-b3df-2edf4e364b4b","block_type":"box","text":"minimizing costs to shareholders.","page_number":217,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"adb82c71-3010-4afc-860b-3ba8050e290b","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":217,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"474719a5-a263-45d8-bb64-adac14f2f74a","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":217,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"6a672d01-bd13-4316-801f-24478cf095f1","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":217,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"90c05704-b244-4d98-b84e-dbdb7e8ef322","block_type":"box","text":"board and has been negotiated at arm’s length, and whether the board or management has clearly explained its","page_number":217,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"d0f51bb9-5667-4c36-a764-c881003f84a8","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":217,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"edea0f85-8d15-4c1a-b284-f1766debe07c","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":217,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"4e4f6d4f-6c23-4bf6-b892-92f51f958c77","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":217,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"322d34fa-31e3-4355-83d8-d3ba99139281","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":217,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"bf75dbfc-99d4-4b3c-b41d-7f4156dcc944","block_type":"box","text":"have been assessed through an independent appraisal process. In addition, it is good practice that it be approved by","page_number":217,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"6f26c8ba-7bcd-4286-a947-51a313ab3ed2","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":217,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"f9a260b3-3ddc-4102-b4b5-721cdf2d59f6","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company shares in the","page_number":217,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"accaf79a-2e61-4f8b-8b1c-e7bf1bcb10ee","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":217,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"418bad37-65fb-4dc9-b7e7-21f62e5ba13d","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":217,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"bfaaed10-0e7c-4b02-ba13-ea15cb5a880e","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":217,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"fdae8fc5-64da-4ef8-bdf5-ffe3cdcfea9f","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":217,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"da2ca692-9df4-463b-8582-c4530133f4f8","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":217,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"5121fc60-6453-4de7-849b-d1ca33af4524","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":217,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"5ef8210b-ecec-4343-a87c-d657fd22e62f","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":217,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"a85ca05a-3063-4acf-b27a-6b44d3cdb20d","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":217,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"233ff19c-6d99-4351-8a5d-dc58bf900b83","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":217,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"cd3242c1-9f67-4e1d-af55-1c35cf343b32","block_type":"box","text":"ownership.","page_number":217,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"c535e93b-51b4-4b48-9720-ba4b51de8bd8","block_type":"box","text":"8","page_number":217,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"4c78cfdc-fcb2-4485-98b2-0adc65f06fdf","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":217,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"bd044fe2-7bf1-4177-8f3e-bd4210e41af6","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":217,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"78b51aea-8398-4d19-ac1f-d8e92141d756","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":217,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"ce6c28ae-77bd-4231-8ff6-d5309680d7b3","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":217,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"0d8dd550-3a9d-42d7-b0bf-30fa8c2c03e7","block_type":"box","text":"structures, but, where they are included, we look to companies to be as rigorous as they would be in setting other","page_number":217,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"535b27ef-a2c5-4b8a-81f6-b253f66d8619","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":217,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"4aa22fb1-9f8f-4771-8be4-b301275e7fd4","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":217,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"b59405f3-84c5-4002-b57f-e74392a10ce1","block_type":"box","text":"results over a period of years.","page_number":217,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"51fcc47b-6b53-42e9-87fa-85b733c13835","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":217,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"481dedf4-aa11-4e1e-b450-d6b0d7c98f2c","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":217,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"58418572-97a1-4ff4-bc40-13bfad92e08c","block_type":"box","text":"company’s risk profile, the environment it operates in, and the individuals the board is trying to attract and retain. We","page_number":217,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"7566bec3-921c-4d34-8cea-5356584d4892","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":217,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"49287a9b-0545-4c3e-b4c3-f369a02d6983","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":217,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"ed99b271-5e3c-484b-8c70-b6499205343e","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":217,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"6b23d6cf-9fbd-486d-ace4-b6a59146d21a","block_type":"box","text":"executive compensation strategies.","page_number":217,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"048eee59-cc03-47a0-84be-4763635b35eb","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":217,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"03a82273-8f9a-429a-83fe-604e25df688a","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":217,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"80a0ebb8-98e3-46bf-b9b1-ae6d45f65187","block_type":"box","text":"and why the discretion was used, and how the adjusted outcome is aligned with the interests of shareholders. In","page_number":217,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"d6a1e55b-83df-4268-9189-3ffbfc8f7c43","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":217,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"54bb466d-1beb-444d-9049-eb840bc552ca","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":217,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"8dbb20f6-580f-40eb-bfff-73b3380d5fb1","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":217,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"7fb98cd2-79f8-4e01-9d76-8e932d52b4d2","block_type":"box","text":"8","page_number":217,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"584c3bfc-82fa-43d8-aef5-e707caf7d582","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":217,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"cb93c42f-27ac-4382-9400-a323d8eeb7b7","block_type":"box","text":"different markets.","page_number":217,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"9e91848b-5535-499d-9018-464ade960a56","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"13563dc8-a9e1-41af-82b4-a1a32610a592","block_type":"box","text":"Global Principles | 8","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"30954748-8dc8-4347-aa1b-7718cf2aacbc","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":217,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"1b800ee0-dd1f-40d8-bb8c-965da27defa3","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":218,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"3c147608-c949-498a-8140-71157aa2afbe","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":218,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"47fd1d4f-94bd-4aa7-83c7-6bd1d726d4be","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":218,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"27baa393-c947-49af-9349-d5b57359ef5f","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":218,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"cd479505-a5bd-47d3-a7e9-cd03e17ef9bc","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with the time and","page_number":218,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"a19271fa-1cc6-407e-91a3-058d06fe9702","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":218,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"32edc0dd-2e7d-45bb-9c75-4923b5046935","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":218,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"3ec89564-4753-4f0f-aab3-af0aa051bb07","block_type":"box","text":"whom they are charged with overseeing.","page_number":218,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"77b1f64b-72af-4013-9df5-60f45ae5e464","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":218,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"025d274a-c74b-4d55-a659-fd56d2a5e682","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":218,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"7b196306-47ed-4c93-9194-7468650114e9","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":218,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"7deb325e-247a-48cd-81bc-139dce5c707e","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":218,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"a56a0621-ef36-4201-8365-bee15e2f66e0","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":218,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"bbeb6ab6-968c-4364-a875-50c1c1c3050b","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":218,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"efc61383-e8cd-43d7-af5f-ac191dc92dfe","block_type":"box","text":"structures.","page_number":218,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"a8b7efcd-b1c8-4a9d-9797-74d3c11bb8e0","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":218,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"d83d66e9-02d9-4433-bb1c-08b5d00162cf","block_type":"box","text":"Corporate form","page_number":218,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"5fc17e79-4c2e-4d22-8a97-4f207492ac78","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate given","page_number":218,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"7bf2c6c9-4c79-4775-9a0b-4aaa29774016","block_type":"box","text":"the company’s purpose and business model.","page_number":218,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"86d9d2d2-9445-4c38-9ecb-82885b895c2f","block_type":"box","text":"9","page_number":218,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"75cc8571-ad45-488a-bc13-224989bda95f","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":218,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"36fd4c20-06bd-4bc4-8644-5144024ecc59","block_type":"box","text":"public benefit corporation, or similar entity, to put it to a shareholder vote if not already required to do so under","page_number":218,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"81e97ad6-857c-4f17-8f01-121d71b9d749","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":218,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"5ecbc359-edf2-4473-a96d-3a53503ea2df","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":218,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"177e362e-200e-441e-8615-f59d70650cba","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":218,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"a570f401-b7d6-4b0f-ba9d-0a61a0ba1dcd","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":218,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"17ad83b4-bcb3-467b-b8e6-9665eb22a7a8","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":218,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"8e77a6b9-b8ce-4e21-aa68-bb6f31234dc0","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":218,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"97743df8-7d36-410c-b37b-17410cc8fc6b","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":218,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"603b320d-746b-4166-85a0-c89362b284d6","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":218,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"234744bf-92b7-449c-972a-4b5ff8f2a289","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":218,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"8ec388f5-51e1-4911-8575-3d684bc60166","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":218,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"4815a00e-9ec4-4d55-822b-4ba4851eb12e","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus on the","page_number":218,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"6c0ffb07-2b58-4263-9d04-7c3ec2e003ca","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":218,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"66c0ff53-8276-4244-bb1b-03201af7b697","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":218,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"de241b46-d925-41de-b7f7-5967068f6da8","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":218,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"4ea49449-7ed5-43ad-8bca-f36dc35645fc","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":218,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"f933189c-92f4-421c-b4c1-feb08a17acbd","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":218,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"1c577ad6-a1e9-4316-8bf7-4f6fd9b241f0","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":218,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"7bd828ca-0434-42e5-a30b-2781973a665f","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":218,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"0bde2606-e146-44de-a0ad-f9fddc87c355","block_type":"box","text":"benefits to the company of meeting the request made in the proposal. We take into consideration a company’s","page_number":218,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"26202866-fce5-4cd4-86a0-abedab5fdbb8","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":218,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"c24ff76c-8281-4828-bc26-420190824e68","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":218,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"17008aec-1e20-4f9f-8445-2c35f94f4318","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":218,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"19cf8a0b-d227-45be-8cf6-43a5ec9c664c","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":218,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"fb5d6493-8b02-4af5-a3d0-f3051afdb15c","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":218,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"0011a1d1-f9a0-43ab-8f0a-0f662f13f7f5","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":218,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"22a0dec1-b5ad-4505-85a0-ac8738d0a284","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":218,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"eefee4b5-1343-4f8f-a98a-002c1fab19b2","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":218,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"043f4a65-8117-4f5e-b550-98bb58fc2259","block_type":"box","text":"request made in the proposal. In voting on behalf of clients, we must vote yes or no on the proposal as phrased by","page_number":218,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"26dd5793-b15e-4ec6-8de9-324dcf98cb9d","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":218,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"a76febd5-f43b-4dda-98a5-1544c9050ecd","block_type":"box","text":"9","page_number":218,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"a68ca1d2-1203-4c19-915f-dedbe3acbd0c","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":218,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"9b95fa07-86b5-41ef-9008-c82e9779c7b1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"097f809a-2106-4f35-8e4c-0ea53b7c5820","block_type":"box","text":"Global Principles | 9","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"9e35d340-7ce1-4505-b846-33bc5e8d8c1e","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":218,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5ffe534f-7f57-4c91-ba79-fddfbdb77cf2","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":219,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"5a4bbdc6-caf0-4456-adff-6b25d7b30299","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":219,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"35d6e418-7036-4466-9644-64ec5c47b84d","block_type":"box","text":"long-term financial interests.","page_number":219,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"3833b253-01a9-4f2a-9fd1-a0e83439198b","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":219,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"37b0de9b-40c8-4064-b81b-9f050734be91","block_type":"box","text":"restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our","page_number":219,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"faf0dea8-6760-4083-8614-540791f81021","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":219,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"0eca261f-d8ce-496c-bdf1-48877a738d6a","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":219,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"5958d9bc-c081-40ba-b6e0-c63314041e24","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":219,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"b677d3a4-85aa-47d9-aa32-b799cbd200f4","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":219,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"43d6a8b7-267e-49a6-9d7f-4a945df3704a","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":219,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"e37cba12-7630-452a-bdc0-666a003a12b1","block_type":"box","text":"term financial value creation.","page_number":219,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"27ca4b56-84ef-491c-8fd1-c343932e03f2","block_type":"box","text":"10","page_number":219,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"f85571c4-f521-492b-b0f5-30fcc6691206","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":219,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"fc0abc8f-1f4e-40e1-b973-895a780e743d","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":219,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"b4d39bf6-39e2-46fa-a5cf-b5c35b97ce06","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":219,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"e364e8a9-2b6e-4d5f-ade6-1bace10d31e8","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":219,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"7ae6c4cb-808d-4a23-b096-27589cd6da5b","block_type":"box","text":"industry-specific metrics.","page_number":219,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"9229f115-12f2-4dee-88f0-884e352c6b04","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":219,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"92c6f164-f144-41d8-bafb-a4c6b2037c22","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":219,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"d3f7a18f-baa3-4a17-a2b7-77002396eb19","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":219,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"14e62153-96fc-4778-b6af-30e1001198b0","block_type":"box","text":"11","page_number":219,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"e4ba4de7-72fd-4c38-a62a-3e4adf9be45c","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":219,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"5bb09089-2b5e-4d95-89e5-35e1c33712c8","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":219,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"24a12d0e-83d4-48a2-9700-24df24d58d6b","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":219,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"0382fbc3-cb6b-4b67-8bb8-a290cd3a2c78","block_type":"box","text":"specific.","page_number":219,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"df2e8674-846d-480a-a836-4d4d02298f9f","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":219,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"e64b60f7-a313-4bc5-a059-9b91672291ab","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":219,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"ed9a43bf-3dec-4bc6-9b0d-21b4201e118c","block_type":"box","text":"them sufficiently in advance of their shareholder meeting, to the best of their abilities, to provide investors with time","page_number":219,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"a72ad836-c9ae-4057-9a48-925bd1b0941b","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":219,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"61c5cc2e-be7f-4f10-9496-9796e6cd7d0f","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":219,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"5aa05e26-8512-4b1d-b92f-8a63fb9f5ca4","block_type":"box","text":"best practices and disclosures. While not a voting item, we find it helpful to our understanding of investment risk","page_number":219,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"a7cc408f-6a66-4359-9073-687712595b89","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":219,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"65c14ab0-3e32-4d36-bb16-c12f8daa8f13","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":219,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"8c77eb41-4c5b-48c8-8261-8813815ad08f","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":219,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"9882f14c-0b1c-4865-86cd-d3e7eb7adc90","block_type":"box","text":"10","page_number":219,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"39c9eb4d-f015-48f2-b3db-4e4e93c04314","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":219,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"dae85487-8002-4db8-b224-8f5d95ab6d91","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":219,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"f7aa87eb-0720-4e7c-b709-47c2d361b397","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":219,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"50e8759e-7b17-41e3-91e0-b6917f613d96","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":219,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"9e140b12-dbac-47f0-b23a-f6c54e4a929b","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":219,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"c6bcbd32-df42-406b-8e19-fd88c5e9db0e","block_type":"box","text":"11","page_number":219,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"6675ef8c-53b3-4213-be46-317a1651b77f","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":219,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"9aef34fb-ffd5-4a3d-ada7-883bde771eca","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":219,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"5ddd6c59-420a-4d01-a5c2-48be33341793","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":219,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"b724f162-a6db-4999-be9b-7bba193d609b","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":219,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"7a653c2b-f28b-4203-bd77-5e008461bf0e","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":219,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"0102d4d6-fb14-4174-8542-23629f46c4de","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":219,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"735ff368-b189-40cf-b6e2-db1c78fa0a4e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6415a9fc-c8fc-4d43-b695-5469d77b6017","block_type":"box","text":"Global Principles | 10","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"aa6663b6-13a0-4ba5-81f5-ddd0a94dafdf","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":219,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d7da4b09-4808-4d58-97fc-70bad6e11709","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":220,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"b3f5e461-39f2-422f-99aa-5103f75b557a","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":220,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"bfd94219-4847-4477-9af7-fa73dfc42808","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":220,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"bc47354c-a88e-4fa0-9b21-24b19eabf332","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":220,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"31a97828-866e-4bfe-af69-236b31478914","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":220,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"81e4b025-583d-4e79-a410-352f05afef03","block_type":"box","text":"12, 13","page_number":220,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"2c29e86c-378d-499e-b411-31348c325845","block_type":"box","text":"From company disclosures and","page_number":220,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"36805cda-8d66-4217-8243-82430cb44eba","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":220,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"c3a9fbf9-4b23-4651-a395-79cc14550f35","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":220,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"f0a2e56e-e515-412c-b7f3-c9b696a9a393","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":220,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"b3e33b12-d0bf-4971-a699-42c288542c50","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":220,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"c3eed527-de95-4b53-bfe7-7df856d62259","block_type":"box","text":"viewed as best practice in the market.","page_number":220,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"cbff193a-c9c6-4096-9b70-1fac854d76e1","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":220,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"b8ca2783-1b58-4ca9-9546-b0c38f075784","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":220,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"17582973-1d4e-4616-88fd-9a98b694d455","block_type":"box","text":"with insights into how companies are managing the risks associated with a transition to a low-carbon economy by","page_number":220,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"23c187da-d6af-47e0-85d4-a824f5441992","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":220,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"115171d1-749d-4716-8d62-15fc1f2f8f7d","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":220,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"2cbf1911-7c90-428c-baf6-cd9d5de8c426","block_type":"box","text":"long-term targets, ideally science-based where these are available for their sector, for scope 1 and 2 greenhouse gas","page_number":220,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"2200a728-8dff-4323-ae7a-fbedd1ef0b56","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":220,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"3f4fd486-5c0e-4bab-8ba6-65d38636a15f","block_type":"box","text":"interests of their investors.","page_number":220,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"ad26133b-3039-4387-a00b-a342e60c88d4","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":220,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"92452785-39c3-4d60-a688-0f0fa4ac3abc","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":220,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"f6b2aa1d-8299-4963-9e0e-78ca87c49764","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":220,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"aa5cd57d-ddf1-44a4-8918-1f284f2ea54d","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":220,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"ac9b0d6d-8cd6-43d9-9aba-7b95f22aa74f","block_type":"box","text":"good-faith basis as methodology develops.","page_number":220,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"9e66dd4f-ea93-4a73-95c3-afae8a2fb058","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":220,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"71e6beba-ead8-4aa8-b6fe-ef3e2653a45d","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":220,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"82bef6a0-0619-423d-a65d-a40673d96583","block_type":"box","text":"generate long-term financial returns.","page_number":220,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"409e53cb-c197-4a4b-b3e7-c17b7c4b62ec","block_type":"box","text":"14","page_number":220,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"39eede2c-adcf-49ee-a943-a9b505741de2","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":220,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"cfd4df7c-5aa9-4a14-9e3f-7af7cab854a5","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":220,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"a00f28f5-0755-4181-ba05-17abf3eba161","block_type":"box","text":"15","page_number":220,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"b18294ff-ec39-4c06-83a2-ebd8365a49a1","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":220,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"84be9c6a-e8e8-49ad-b523-c3124c50faa1","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":220,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"c23767fe-330c-4cef-bf22-6db74e38d544","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":220,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"c7dc7873-6815-486e-a031-f6a0608b68da","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":220,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"713f922a-f5e9-412b-897e-809165731e4c","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":220,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"600ca271-a659-42e3-bdd9-6cbc075d8d00","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":220,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"807195ee-6889-450a-ac2a-6e92226f6217","block_type":"box","text":"12","page_number":220,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"b5e39802-28d5-45e1-a58b-db5e73ae39fb","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":220,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"1003500b-d6ba-4737-8a3a-bea3af11a2d1","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":220,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"524a4158-8463-492e-99f5-2f31d914b531","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":220,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"3b8c3cc8-65fb-497a-b689-ed109e119fc9","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":220,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"c97030cf-a747-4cb6-a734-e05da56f0e03","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":220,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"1cb3d00b-5202-4a78-9cdb-d765c2cc0183","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":220,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"78d2b54f-16de-45db-a7b4-60e2b7ff6627","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":220,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"a62c7864-03d1-463d-9b6c-5c03afc99f24","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":220,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"d95ab1d3-7734-4210-a317-0601240ecfea","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":220,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"a086a9a3-bd08-477f-af33-56b7fe585dae","block_type":"box","text":"13","page_number":220,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"7c1102f3-1931-4dba-af9f-2ce484cee382","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":220,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"9ea2e178-8c0f-4f24-be85-7615411c1505","block_type":"box","text":"2025.","page_number":220,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"f7a88877-9b3e-4de3-b848-59047031741b","block_type":"box","text":"14","page_number":220,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"e1ccad5d-d075-417a-817e-c5816824fd6d","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":220,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"9688d25d-e00e-4395-b2b5-54b5fda08f6a","block_type":"box","text":"2025.","page_number":220,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"e7438205-6257-4d70-a0b4-78a499710e53","block_type":"box","text":"15","page_number":220,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"0a4ea143-b153-4917-8f06-3c8cc447861e","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":220,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"f228f1b1-6434-4cbf-9d85-1f5bf81a8278","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":220,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"5d557eb3-994b-4b8b-ba56-dd8f78bf50f8","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":220,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"6f7be125-7fa6-43bf-83da-c7f6e64a38f6","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":220,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"4b75dff0-e890-4572-ba57-d7dbc781bc6f","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":220,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"fff3f244-bbfc-4192-b982-b248351344c7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"607dcf32-917b-4952-bf31-7c4060041c49","block_type":"box","text":"Global Principles | 11","page_number":220,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"99dd9401-a258-48c7-9f4c-e06dcfaf5569","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":220,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5a36937e-d3a0-4929-acfe-60a09cbf7b05","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":221,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"ab6a4219-0e92-40c6-803f-b0b143f26b2f","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":221,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"3350a739-b6c8-4d72-ab39-3d66f730b40e","block_type":"box","text":"16","page_number":221,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"cb63f11a-33b8-47e3-ae10-3e441f691838","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how they have","page_number":221,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"3e3fef02-a1e8-46f2-8f64-6ae3c531cf85","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":221,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"6a94559c-487f-4c68-82dc-47f85f3bc1e2","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":221,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"214dd261-9006-46a5-b439-dc127cc3cf53","block_type":"box","text":"needs of their workforce today, and the skills required for their future business strategy. We are also interested in","page_number":221,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"82d8ceed-ea4a-481c-a62c-f40d82790481","block_type":"box","text":"understanding how the board monitors and engages on these matters, given it is well positioned to ensure that the","page_number":221,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"5bf6cefa-32c2-49af-ab8e-8c7a65dfce9a","block_type":"box","text":"approach taken by management is informed by and aligns with the company’s strategy. BIS does not direct a","page_number":221,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"4261988b-9abf-4bab-94b4-06a86974cb3b","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":221,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"5a7ac84f-04c8-44b6-8b3c-f6b26e9a3e7b","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":221,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"31a6c2da-3c78-4bd9-a7fd-e41a80441c35","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":221,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"e5dfd597-57ad-46dd-9083-885d1f8ff94b","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":221,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"bac2e38f-5ce6-4d23-b0bd-1a2174523d3b","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":221,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"b64fa206-8a22-43d1-8b48-fa5f886bc95f","block_type":"box","text":"impacts.","page_number":221,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"8c4fcfb3-8903-486c-a5af-45eaca7d9af1","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":221,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"99c98582-cad0-4754-b0f6-80fec7e982c0","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":221,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"b70348bc-e35f-4597-96de-bf3590d71568","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":221,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"236d9835-7bdf-4fe7-a0fb-34675ac2e2b1","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":221,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"c3a4f561-2a4a-4533-8298-9661b7b18249","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":221,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"ac71cae1-bbc0-4c73-b2cd-8cf26ce943e6","block_type":"box","text":"clients at the global and regional level.","page_number":221,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"f0f6038b-1a8f-46ec-a4ad-a54818aab46a","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":221,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"fdf6d82e-80f1-4e3f-8163-f1fe65efbb46","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":221,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"6bcd1eda-8b5b-44f4-b9d5-8a59a7b4fbae","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":221,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"60b6e63a-c201-456a-ae78-9a97094fdabe","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":221,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"f7cb0e27-410a-443b-b38f-1dd9a85aea18","block_type":"box","text":"BIS on behalf of clients, as well as updates on material process issues, procedural changes, and other risk oversight","page_number":221,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"eb52801c-9441-4190-803e-3d9a81374b83","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":221,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"b5e4c34a-3098-4974-8905-70d683f2a3ee","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":221,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"25e91110-40bc-44eb-afb0-9dc4be218da1","block_type":"box","text":"are independent from the investment stewardship function.","page_number":221,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"41346af5-3262-4501-ae7e-41a1f7f4cd03","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":221,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"0ffdae77-c72d-4621-8cb0-3048c85c69a2","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":221,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"311f16b2-9e29-41a4-a703-9fa4e8b35cb9","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":221,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"6e2f2563-8cc0-4cda-93f4-778b5f9fd070","block_type":"box","text":"VOTE EXECUTION","page_number":221,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"83651d98-6ab0-4b78-8935-843a92322e81","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":221,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"472d2b1a-034b-4e3f-8da0-52a6d4acabe5","block_type":"box","text":"processes in place to consider all proxies for which we have voting authority, and submit voting decisions, or refrain","page_number":221,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"26a4a997-54fa-4241-bf69-5f03ccebea09","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":221,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"2d8a07e3-7218-45cd-99da-29d97f7064b8","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":221,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"af71d701-7877-47f5-980b-8f9c45fe236f","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":221,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"02d0a1eb-0f98-48ac-8907-1dd13caf5793","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":221,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"606e0acb-0946-4754-9d6b-5450d7fd1dc9","block_type":"box","text":"management policies and procedures,” below).","page_number":221,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"b4f630c2-3df8-4db6-b8c8-85dd65007050","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":221,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"7be9f03c-b152-46dc-bbb1-23910e6e041c","block_type":"box","text":"of voting such proxies on behalf of our clients. These issues include, but are not limited to: 1) untimely notice of","page_number":221,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"7be548bf-ae5d-4294-b1d5-a4610c801715","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":221,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"c746b598-cccb-485a-8f3e-8efdf22e6c8c","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":221,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"f45d9bb9-4ffe-44f5-a22b-2a98ba0e8405","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the after the shareholder meeting","page_number":221,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"e59d51d9-296f-425e-8250-60bce339ce5e","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":221,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"6ff63387-dab9-4241-aa1f-f8f4e0705bdb","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":221,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"05334b64-cc84-495c-bdae-a9c87d1e2f45","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":221,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"43a6634f-13b6-4b33-b30e-736daf7047ce","block_type":"box","text":"16","page_number":221,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"13f2b126-86cc-47c6-9670-3184d4ffd4a8","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":221,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"3849b9e9-4759-4f6f-811b-ac4cb16323c6","block_type":"box","text":"December 2025.","page_number":221,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"aefe85e8-6a40-4d1e-b14e-7d8b7355c7a4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"90bd840c-d122-47a2-9f50-17f981d4f4d7","block_type":"box","text":"Global Principles | 12","page_number":221,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"1d745acd-f109-4388-9d97-5143330a3f27","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":221,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"764fa6ae-439a-4f24-b6d8-b71a84905a19","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":222,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"a9ded01f-ecd9-4bd2-b5d2-93919c076045","block_type":"box","text":"in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs (including but","page_number":222,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"06fdc5f6-c065-45ee-ba8a-76a84f2ed308","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":222,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"c21f5296-afb7-428b-aaaa-3dcc70ff5744","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":222,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"9341fe4e-f162-45bb-a91f-ba9baff1ee68","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":222,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"c3c14d43-5935-4541-bc1f-9604192e03e4","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":222,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"aeb654ef-87ed-4484-8a74-2be6efeb03f4","block_type":"box","text":"enterprise-level vendor management activities.","page_number":222,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"d91822aa-4407-49a6-b379-56292aa9d347","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":222,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"71fe8adb-9c47-465d-9d22-b29ef9d85ef4","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":222,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"5f39813c-856a-49f8-869d-3ffb3d036dcb","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":222,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"aa788167-21b1-47bc-ab71-49c7e8017768","block_type":"box","text":"BlackRock employees.","page_number":222,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"f819f7be-a5a8-4abb-b3b2-10c8c048e3df","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":222,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"99e51452-101a-429e-be63-9134e0e36ecd","block_type":"box","text":"SECURITIES LENDING","page_number":222,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"5ddea730-eb1e-43e3-a4f8-23d89eb52065","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":222,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"862e82b3-738f-4814-8e46-aa084bacd871","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":222,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"9104497d-5008-4639-addc-00a863202e0a","block_type":"box","text":"recall securities out on loan at any time. BlackRock (or any other lender) does not retain voting rights for securities","page_number":222,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"62991891-efc1-459b-a574-936d19b8e6d1","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":222,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"c0f8de33-186e-4b8e-9648-c54175c38a3f","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":222,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"f410a941-fce5-42b9-be3f-77da59363f28","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":222,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"a75d7ec2-bc96-4253-ad89-687cdb6c7bb3","block_type":"box","text":"loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset manager to our clients","page_number":222,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"d850a9cc-8d1a-4d9b-997e-5d8aef3bb309","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":222,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"e71a6d0f-9ac7-47bf-a094-944801773cc6","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":222,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"aa433858-d9c0-44bf-89fb-7b538f17a50d","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":222,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"1ca84956-2872-4b35-8247-f62edc337744","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":222,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"45913af9-0065-4f3c-89b3-635d7198dc14","block_type":"box","text":"of recall consideration).","page_number":222,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"d97db935-cf38-4311-8a2d-f96411cc1228","block_type":"box","text":"17","page_number":222,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"c0bd050a-4922-46b6-9b01-e801d3712355","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":222,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"e36781b0-b780-42ce-81c6-0ec6336e1f6a","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":222,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"2e37f1c6-a8c6-4c66-a269-bd1d18feffaf","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":222,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"fc0889cf-c13d-4b74-9bba-9e6854c60e88","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":222,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"808ef7ae-edfc-425d-8cb1-12e794e1cb68","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":222,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"9beb39c3-0993-4b4d-9d79-65b3857c0723","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":222,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"f70c307c-8e47-43d2-ad50-8e73ae6ea23f","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":222,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"e538ba3d-9d4c-491d-bfec-0049e828f0f2","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":222,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"d95a450e-90fd-4e15-b129-34a92e3d48d1","block_type":"box","text":"and may modify it as necessary.","page_number":222,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"34fdb461-0d46-4295-9979-b2374e0aac2f","block_type":"box","text":"VOTING CHOICE","page_number":222,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"3c85bbad-8bee-48d2-8a31-b108e1662f8a","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":222,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"49297656-7443-4f98-a5da-b9c42cc0937f","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":222,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"c9bd9179-6279-494f-b484-8c978e963b9f","block_type":"box","text":"18","page_number":222,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"fa4860f1-1cae-481f-9289-45819a45dd99","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":222,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"edd20451-0fc0-4d8e-97de-b590bee404f8","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":222,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"db12d37d-f061-4e9f-be75-ada0a9cad984","block_type":"box","text":"17","page_number":222,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"0af2786e-4627-4256-a904-49c9037021a8","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":222,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"f652ae3e-0233-46f5-a9dd-661474220c4f","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":222,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"2cff8a1d-4528-44f6-83f6-57177d021c36","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":222,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"c6e54ea8-a779-4edb-8eab-73fedeee3082","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":222,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"8bf45578-7f06-4871-b204-55a6564f26d6","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":222,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"c7f1dff3-0574-4e8d-bc33-04fad78dd80e","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":222,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"27518dc1-f310-474c-b276-cd230d042bc0","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":222,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"dbdc96cd-ceda-4a1a-8d25-bc258b981e8a","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":222,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"da00d10a-609d-44f8-b9a4-969c08ba8c54","block_type":"box","text":"18","page_number":222,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"020cd8b2-1dc6-4d49-895c-20428b08580d","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":222,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"dc5b6d43-e5c3-4484-87b8-d23db3924c55","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":222,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"8e8a533e-bb56-48aa-81ed-96102391d8e3","block_type":"box","text":"including the decision to lend securities.","page_number":222,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"37def16d-ffd0-4c29-9588-c0f7265d3765","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1a8ee3a4-1349-46fa-bd7e-2fe14942436c","block_type":"box","text":"Global Principles | 13","page_number":222,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"8568e8ba-b91d-4418-90a4-45f888be22fc","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":222,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"495dd096-55e4-46fa-9166-be8d2c435f9a","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":223,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"26733fef-bc0d-4eea-8b9f-af0fcf56ae06","block_type":"box","text":"(SAE) strategies. 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This stewardship","page_number":227,"box":{"x":69,"y":770,"width":793,"height":11}},{"id":"a25e6250-b2ac-46b5-b195-fd4d5df3b38b","block_type":"box","text":"option helps those clients meet their climate and decarbonization investment objectives and is par t of BlackRock’s","page_number":227,"box":{"x":69,"y":784,"width":820,"height":12}},{"id":"c235948b-31f0-44f5-b82b-d94e20e0a106","block_type":"box","text":"commitment to offer clients choice.","page_number":227,"box":{"x":69,"y":799,"width":252,"height":10}},{"id":"99193753-8b4e-4c88-b83d-1a5e89fcb979","block_type":"box","text":"3","page_number":227,"box":{"x":69,"y":818,"width":4,"height":4}},{"id":"e8a7ff99-037d-48d7-ab76-2f28a2adc68d","block_type":"box","text":"Key climate, decarbonization and low-carbon transition related terms used in these Guidelines are explained in","page_number":227,"box":{"x":79,"y":817,"width":788,"height":11}},{"id":"9a27a1f2-d6b0-447b-959e-7a59af0a0dd8","block_type":"box","text":"appendix 1.","page_number":227,"box":{"x":69,"y":833,"width":81,"height":10}},{"id":"f2214aa4-d1c9-45c4-9446-318dfcc8f96e","block_type":"box","text":"4","page_number":227,"box":{"x":69,"y":850,"width":4,"height":5}},{"id":"7a650cb0-098f-47a9-8414-c29b145123a2","block_type":"box","text":"Includes a select group of our largest client relationships. Net zero commitments are sourced from respective","page_number":227,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"1608c8cf-e064-4f3a-bdb5-4e0b7ec307d5","block_type":"box","text":"company websites, as of January 2025.","page_number":227,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"b0c7e47c-4227-486e-937c-6f6759356832","block_type":"box","text":"5","page_number":227,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"27e57661-aa90-42a3-9c29-76e6f1e81572","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":227,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"c26ad3fe-e3b2-4290-89dc-02f88bc41050","block_type":"box","text":"6","page_number":227,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"6c11dd60-705e-4238-84d9-4dd815036731","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":227,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"63d952b3-b966-47de-a62a-b2951011939a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2f674f6d-1bfe-40ce-b1d1-f25be87dddf8","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":227,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"7004b552-f83b-4b3c-b946-71660f9ad052","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":227,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"29de6489-1477-4f31-a393-995877db5591","block_type":"box","text":"par ticularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":228,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"cd9551cc-300f-43cf-9533-e4c961e94d0f","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":228,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"33054c7c-be3e-4551-b412-338493b78b8f","block_type":"box","text":"7","page_number":228,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"00a8c759-124f-41cc-9155-45984f33c1cb","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":228,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"fc9e6562-26df-4339-977e-807547f4ec17","block_type":"box","text":"Benchmark Policies.","page_number":228,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"a1bc5fb2-5c64-4f58-82c5-20c324448cdc","block_type":"box","text":"8","page_number":228,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"ffeb3ea9-24a5-42f0-8c73-75e9656d5de2","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":228,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"f7cf4e08-b987-455e-8579-c04321066856","block_type":"box","text":"decarbonization as an investment objective, BIS under takes our stewardship responsibilities in line with our","page_number":228,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"1e5f91c4-5ade-4539-a901-7d087d7aa622","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. 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In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":229,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"40cf9b7b-36f4-4e96-84fe-8d2a77dabfa8","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":229,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"98be30db-b471-4eae-bd74-ae82ff591c97","block_type":"box","text":"14","page_number":229,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"7f38491a-375b-49df-9b2c-743574c91523","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":229,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"9dea6f3f-aa31-44fc-9564-f5c5b362da19","block_type":"box","text":"(IFRS) Foundation. 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Please refer to the IFRS website to learn more about the framework and standards S1","page_number":229,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"f817f340-02d1-4e6f-a836-c68d6429e8fe","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":229,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"6c8db4de-e4d6-45cb-bbbb-6733bb0357b8","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":229,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"eda321b1-9988-4595-8f25-1609aecf9dc8","block_type":"box","text":"15","page_number":229,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"775509e4-c510-402a-a543-6cc07aa1a1bb","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":229,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"4edb7c58-7fd9-47e9-99bc-5df015b16855","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":229,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"81e2615f-3754-4d42-a0c4-ae3e6501b216","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":229,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"cc7df42a-9a5f-425b-8c4f-fefa62b1e2f1","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":229,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"6b5ce8a7-56c6-493f-b301-921b5a7a90c2","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":229,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"867a8493-9428-4c08-93b7-e7dcd8cace83","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a97fedaf-dc73-4f33-9c6c-07cc2c6a97bb","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":229,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"99d88fe8-cf72-4ff7-ad87-e55876265c48","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":229,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"92fb3d05-8670-4d70-a35f-6732151bae68","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":230,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"067c3e37-56c6-44f5-a7d9-7183fde2eb38","block_type":"box","text":"16, 17","page_number":230,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"3403d37c-1ae8-4785-bb76-7ff9e19086d1","block_type":"box","text":"In addition, the dedicated team looks to","page_number":230,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"0021cac6-0b92-4b78-bc9f-35bdf76102a9","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":230,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"62ea0969-0a51-4a1a-bada-6d7c0929b46d","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":230,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"3ab08b0e-5788-4bd5-ab7e-9f5964a5e8d3","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":230,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"dca4e1d2-8248-4784-b2d4-c9134cf23691","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":230,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"4d877d00-4b30-473c-b4cf-8b8bc7f0750f","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":230,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"64f14fb9-0064-45d3-a77d-289ccbeae089","block_type":"box","text":"18","page_number":230,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"c559e1c4-e566-4c63-86bf-a77bf9c71844","block_type":"box","text":"However,","page_number":230,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"b83b7d10-35d1-40ab-824c-49dc39634bf4","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different par ts of","page_number":230,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"a9973dbc-6135-4dd0-86b4-cd193f23913e","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":230,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"7d62fcff-c052-49b7-b94a-04497746ed96","block_type":"box","text":"their decarbonization targets. For some companies that play an impor tant role in the low-carbon transition, scope","page_number":230,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"2cf7d882-e66d-441a-8e61-db660da32870","block_type":"box","text":"3 may represent their only significant source of GHG emissions in the value chain. While we do not believe","page_number":230,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"03ef1f8e-e24f-459f-ab52-156d0c2a7523","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":230,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"beb2340f-dc69-47e2-b12a-6d4d4c3e93c3","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":230,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"22f8ea12-f690-47a4-8905-18522e0f8154","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":230,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"30bf1a43-08d8-4324-9769-a38b4c91f967","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":230,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"ab26350f-f2a8-45cc-b9c0-72d4ad6ac097","block_type":"box","text":"transition risks.","page_number":230,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"1b1df75e-ae11-4a00-accb-1f7803696a1e","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":230,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"a65fc5b3-2a3a-4ae4-bd18-d96452560cd0","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":230,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"c5e30413-46a2-45c3-a87b-62a4d35ec9de","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":230,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"c0750e60-c9a5-4360-ae92-0fe9a8909fd8","block_type":"box","text":"Transition plans","page_number":230,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"d1f5ea12-f89d-46a4-b23f-82c7e8254718","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":230,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"9cb0359a-a2e0-4971-9c53-20f97fceebdf","block_type":"box","text":"transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s targets, actions or resources for","page_number":230,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"640f92cd-6326-4657-9f6d-3232d40a2d4a","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":230,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"fd81adc0-716f-4b2a-abb5-a85d69dda6eb","block_type":"box","text":"(see Appendix 1).","page_number":230,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"38aca472-f462-43c5-a22c-8d8186d25b0d","block_type":"box","text":"19","page_number":230,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"d8e342f5-dfee-4c58-8b8a-6e9d479fddb4","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to corporate","page_number":230,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"75e3d2ff-d761-43f5-8bf6-f619a4204036","block_type":"box","text":"transition plans.","page_number":230,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"ea6d36c1-34f8-4b2a-b5c9-5452aea02946","block_type":"box","text":"20","page_number":230,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"4bafd17a-d031-41ee-a9a5-db3007088f57","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":230,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"1fa9c33c-fef4-427e-9bbd-2c4115fca55b","block_type":"box","text":"repor ting approaches.","page_number":230,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"14d1c3f6-59ed-47d4-a5f7-b4e5ff58c32c","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these disclosures","page_number":230,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"cb3a22d0-69f1-471b-abe6-f9027b0258c3","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":230,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"4a216033-21dd-494c-a70e-49407be10a66","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":230,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"5fbf590a-f24f-4447-b268-06aac92971ad","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":230,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"6b4bc382-ddfe-4e48-94d8-b8af4bdfbbb0","block_type":"box","text":"their shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make","page_number":230,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"4dfbbbb0-8132-448f-bae6-f00d8d25d3d9","block_type":"box","text":"informed voting decisions.","page_number":230,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"824119de-3321-4271-ad64-032b8f0a3bf5","block_type":"box","text":"16","page_number":230,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"14830d7b-1a81-48c5-8384-3b0716ecae21","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":230,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"56fef634-6ab0-4434-b0ba-5080002202ec","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":230,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"ff2e2e39-d527-4f9f-a32c-9d088ece62ad","block_type":"box","text":"December 2025.","page_number":230,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"9f7cbc69-0e8d-4efb-af92-fbd97e3c75b7","block_type":"box","text":"17","page_number":230,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"20f33344-4b03-4033-9118-b8eac42cf939","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":230,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"12aab944-0a6d-45b5-98e2-ed2d09e5e23b","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":230,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"468137c7-1266-47ec-8df4-3ccf6b7e0dee","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":230,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"1c042aa3-cd06-4232-86a5-eb47ef0ae26e","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":230,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"732256cc-8a9b-4e8d-b396-6043ca2125bf","block_type":"box","text":"18","page_number":230,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"f811870d-920c-4ace-ba85-6cca2abdcd65","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":230,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"a1d40287-104b-4f14-aad1-bfbfb24b9f80","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":230,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"201df170-d2d7-4dd0-bfe6-e4ac6693ac35","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":230,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"f7d3dbf3-d5a7-452c-9b37-c1cf7a52250d","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":230,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"9421a1b8-a0b6-4bb1-ad7b-db91d3b693db","block_type":"box","text":"material to their business models.","page_number":230,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"619a6132-46d2-4b8b-a867-530c5ec4e66c","block_type":"box","text":"19","page_number":230,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"2af14902-4503-457f-aacb-345d5f0d77c9","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":230,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"a836148d-a528-4893-9b57-658feb43792b","block_type":"box","text":"December 2025.","page_number":230,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"ee4fecc1-32dc-48f4-be84-efd77382dab3","block_type":"box","text":"20","page_number":230,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"aeb6dc26-f376-4583-bc74-dddf2e5d1903","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":230,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"50034fb1-0805-497b-9bad-a902b27134a7","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":230,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"2f6e20ef-649a-40a5-b6c4-de0e9c020903","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":230,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"478c733b-8e61-4dc5-8018-958f4c8c3652","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":230,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"1285b9dd-776e-412f-b303-02fd350fec25","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":230,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"862fd56f-129f-4eb7-af61-0ff5a473cb61","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Under the Guidelines, the team may suppor t","page_number":232,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"cd620f85-e4d0-4d24-864f-75d9432ca6e4","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":232,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"ddc9fa8a-39ec-46b7-bd46-0b21d78692e1","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"10437ac5-3150-434c-a65b-a8660b805e17","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":232,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"78909ca5-a491-412a-8b8d-1508dc8c2743","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":232,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"db2fba5d-a5c8-41e3-899f-439af1d3b04d","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"b759f86d-26ed-4813-87b8-17734532704b","block_type":"box","text":"Align scope 1 and 2 GHG emissions reduction targets to, and/or discuss how their targets align with, a long-term","page_number":232,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"cfc9cfce-42eb-4c5b-b09d-73fbe0c23e84","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":232,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"8ca18b89-44ba-4f35-bb23-8fabc7ac923a","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"c71d71b6-6d16-4f4d-a52c-ecb078cea95f","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":232,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"22e3d705-7bed-4008-8793-63bb52abbec8","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"fb99b0c7-dfa3-4097-9867-22ace2b2446d","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":232,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"15efdb69-a366-4e14-852a-9bd23762d5c5","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":232,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"1f227fa4-9b01-42fe-a529-9d06eeb8d5b9","block_type":"box","text":"25","page_number":232,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"a98dde51-fcc2-418e-a5d7-53733a3295f5","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":232,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"9c694ca3-817a-47bd-8541-0c1204ab8102","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":232,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"bf76042d-9444-4c92-bdb4-b00075023312","block_type":"box","text":"RELATED MATTERS","page_number":232,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"294fc158-9d57-4267-ac9c-a05dd3431233","block_type":"box","text":"There are other business items not covered above that may be put to a shareholder vote that could address","page_number":232,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"22f515ad-f1bb-40a4-b166-3464d255d3d3","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":232,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"ef5e1c9b-75f4-4f33-915f-9791aa71ce07","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":232,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"9c5c2076-b22e-4642-869c-5b96930da885","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":232,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"8ea11ea5-32f5-46fe-bbf6-c5847c26ac74","block_type":"box","text":"Executive compensation","page_number":232,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"b3c0a897-835b-41ee-8978-9d62df60d553","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":232,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"a021bf1c-1258-456a-9d69-b0511454bae9","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":232,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"763de980-2179-4108-9f00-a7b56b55986c","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":232,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"214827a7-0883-42f5-8dee-5d30e06ee0b9","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":232,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"aca735b8-ca77-49a4-9c24-b02cb31fced2","block_type":"box","text":"24","page_number":232,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"eb5d19d3-d82e-46a4-a6ec-63e64b890ca1","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":232,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"05447bac-01a8-4686-a3e7-f8727bf10083","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":232,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"2fa16600-2730-4fde-820a-657f70b0bea7","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":232,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"66cc04ca-f89e-4d90-9daf-1e75d69ca2be","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":232,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"e3fa5545-f482-4bec-a8fe-c3a704aab1e9","block_type":"box","text":"25","page_number":232,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"b20f93d8-95ab-4d05-bc28-c1d9815b8320","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":232,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"7b3fd634-38df-45ac-bfc5-8ff313024609","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":232,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"16056bda-381a-4ec2-949e-5539d010b582","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4b5f7afe-3faa-44ad-a81d-16a960331146","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":232,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"e82d3402-3a53-483b-a49c-c24a564cc1cc","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":232,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"ba7586d8-f192-42d0-8eeb-5d3f206a19e6","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":233,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"c84f4a39-3c9f-4de0-8181-f55779b5efdc","block_type":"box","text":"strategy and risk management.","page_number":233,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"63ece387-9d11-4002-858f-8b7f503fae8f","block_type":"box","text":"Auditors and audit-related issues","page_number":233,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"c73cec1e-d37e-4296-870e-094ec55a08fc","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":233,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"d3c794c1-8b5f-480b-bdd2-d8d7e1e164df","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":233,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"5c2a2ff2-5390-42de-8f0e-270270ed2720","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":233,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"eb0fec94-4861-48a1-9e59-0ef4a4f2f7be","block_type":"box","text":"context of its audit repor t. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":233,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"a2090523-b0c3-4260-a874-0521b60fa6f0","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":233,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"1fa514e1-3d29-47e3-97b5-22faacbaee0c","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":233,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"8e07eb0c-9bda-4966-90c1-dfda246612e4","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":233,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"b06340cb-a7de-4a6d-9fe8-cda3b9ebfc03","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":233,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"91c7029a-d075-4835-ba53-07f697a2e49d","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":233,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"9d0110d4-4849-40f1-98c9-1be365a448df","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":233,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"564494e2-7c52-4cd3-9eb8-fbb689490422","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":233,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"6db53dc3-753d-49ef-8224-7b972c8b1fdc","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":233,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"f1caba9d-4c87-4f06-b93d-3b491868bca7","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":233,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"61b1c5f4-86cf-4c17-abfb-d260cb64605b","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":233,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"f78e334d-7afd-41b0-ae58-d25f33c0966e","block_type":"box","text":"stakeholders.","page_number":233,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"36dd0c96-5bd1-46ee-9481-2d68d60742f7","block_type":"box","text":"26","page_number":233,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"7f1c5abd-2ad0-48a2-b600-9bdda29ff29a","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":233,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"837bb6cf-75bc-476d-a933-62a374b19cf7","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":233,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"3e0ed217-eb51-4d47-a9e0-d4aa307f0c56","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":233,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"7c396c7e-ac24-4463-baf1-d849d7045840","block_type":"box","text":"team may engage companies that face risks and oppor tunities related to land use and deforestation, access to fresh","page_number":233,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"509c1ed0-e904-4049-a256-c1d1e705af81","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":233,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"47766018-af56-4c35-af1f-71bde7a926ff","block_type":"box","text":"26","page_number":233,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"be275d72-8786-4a1c-b5b1-f41a4297db02","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":233,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"7444f38b-c6ea-47b9-b90a-aa402480f05d","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":233,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"93264821-3eb9-42cb-9c7a-ba13bb9b357c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":233,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"78677029-3458-4154-acd8-1ca3b9db3410","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":233,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"5ef6e5fb-35a3-4db6-8177-7a316be69d66","block_type":"box","text":"BNM1026U-6032633-19203491","page_number":233,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"1e0b0eaa-82c3-496f-a561-1b26fbbe4f0a","block_type":"box","text":"Appendix 1","page_number":234,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"442a152d-a806-439e-a272-2acb56bdcd58","block_type":"box","text":"Terminology","page_number":234,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"b981bf81-2fff-4393-bc52-72bba320cb46","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":234,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"05b8a622-6cb1-4d41-b5ea-8bbe554c6016","block_type":"box","text":"Climate risk:","page_number":234,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"1857c598-44e1-4f95-920c-fed619fc4386","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":234,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"912c1da7-025e-45fb-8250-28369bae4024","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":234,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"a7fabe5c-7d45-4a1e-9fa0-466e63a64b31","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":234,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"01c67d00-42d4-48ed-9566-bc57b430d383","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":234,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"4153bf34-a7da-434b-8f17-427a939fd7fe","block_type":"box","text":"The global economic shift toward lower","page_number":234,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"1d8c762d-95b5-4ce1-a25b-789e5e90dd7f","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":234,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"f783ecbf-acaf-4b57-81e8-b39cb6317eab","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":234,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"3484c24c-7960-4300-b602-a9fb71e7ee89","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":234,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"3e7a68aa-de59-44b0-a84c-0e6675bc3968","block_type":"box","text":"Decarbonization:","page_number":234,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"62e6a825-0eed-4fd1-a84a-71c01534fd9c","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":234,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"76ca592d-6b65-4759-b7d0-a00e3f340c4f","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":234,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"f99f08a2-9674-46b7-8a06-5f388a651108","block_type":"box","text":"individual consumers. 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