{"annotation_id":"1151fdaa-78d5-489e-8030-042d39ba2bbb","file_hash":"c733728ee9d91571de3464bec7de45b40c9df8fceead2c959320ee49c06c5591","schema_id":"open/document-extraction","schema_version":"0.5.0","record":{"extraction_type":"boxes","producer":"pdf-extractor-v0.5.0","blocks":[{"id":"2cd251a5-48ae-48bb-b2f2-0147743ac5e8","block_type":"box","text":"STATEMENT OF ADDITIONAL INFORMATION","page_number":1,"box":{"x":271,"y":83,"width":435,"height":11}},{"id":"a3308906-055b-46af-aee3-bb11f47f2000","block_type":"box","text":"BlackRock Funds","page_number":1,"box":{"x":371,"y":120,"width":216,"height":14}},{"id":"9b1cd8ce-54a7-4a84-a441-00dee64180e3","block_type":"box","text":"SM","page_number":1,"box":{"x":589,"y":120,"width":19,"height":7}},{"id":"d30bb9b3-35bf-47ae-bb21-39cd94a59959","block_type":"box","text":"BlackRock Commodity Strategies Fund","page_number":1,"box":{"x":347,"y":149,"width":285,"height":11}},{"id":"88bcbe13-501e-43b4-8a50-c3b9c44a57f7","block_type":"box","text":"100 Bellevue Parkway, Wilmington, Delaware 19809 • Phone No. (800) 441-7762","page_number":1,"box":{"x":118,"y":176,"width":742,"height":14}},{"id":"6b193626-bb26-4cb0-b8f9-60e55a18e231","block_type":"box","text":"This Statement of Additional Information of BlackRock Commodity Strategies Fund (the “Fund”), a series","page_number":1,"box":{"x":101,"y":233,"width":798,"height":12}},{"id":"7c7643bd-7dd1-4325-8db1-320618cf9738","block_type":"box","text":"of BlackRock Funds","page_number":1,"box":{"x":69,"y":249,"width":150,"height":9}},{"id":"ecaa7060-6e04-4555-b926-59f2e802c3c3","block_type":"box","text":"SM","page_number":1,"box":{"x":220,"y":249,"width":12,"height":5}},{"id":"25b32547-15e7-40a9-8813-971722b5c2f7","block_type":"box","text":"(the “Trust”), is not a prospectus and should be read in conjunction with the","page_number":1,"box":{"x":237,"y":248,"width":575,"height":12}},{"id":"0ed8b795-4e48-4df3-b379-cddbfc9c5bcd","block_type":"box","text":"Prospectuses of the Fund, dated September 28, 2026, as they may be amended or supplemented from time to","page_number":1,"box":{"x":70,"y":264,"width":836,"height":11}},{"id":"dd5c2aa3-2f42-4237-b920-61efd1833220","block_type":"box","text":"time (the “Prospectus”), which has been filed with the Securities and Exchange Commission (the","page_number":1,"box":{"x":69,"y":279,"width":735,"height":12}},{"id":"354b8e72-8e0f-4bbc-8ab9-977848433c2d","block_type":"box","text":"“Commission” or the “SEC”) and can be obtained, without charge, by calling (800) 441-7762 or by writing to","page_number":1,"box":{"x":69,"y":294,"width":820,"height":12}},{"id":"ae3499b3-6085-4555-9598-09986d2fcbed","block_type":"box","text":"the Fund at the above address. 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The portions of Part II of this Statement of Additional Information that do not relate to the","page_number":1,"box":{"x":70,"y":339,"width":830,"height":12}},{"id":"ca559b01-a48d-4cd8-a66c-374428a9f81c","block_type":"box","text":"Fund do not form a part of the Fund’s Statement of Additional Information, have not been incorporated by","page_number":1,"box":{"x":70,"y":354,"width":806,"height":12}},{"id":"dbb1f197-9580-4bd0-ab6b-6fb5bcbb9463","block_type":"box","text":"reference into the Fund’s Prospectus and should not be relied upon by investors in the Fund. 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You may request a copy of the","page_number":1,"box":{"x":69,"y":415,"width":840,"height":12}},{"id":"06f18e29-ca32-48b1-9fb3-25d64dc207be","block_type":"box","text":"2026 Annual Financial Statements at no charge by calling (800) 441-7762 between 8:00 a.m. and 6:00 p.m.","page_number":1,"box":{"x":69,"y":430,"width":822,"height":12}},{"id":"96e84172-efd7-4d07-9b4f-b2cabddb350b","block_type":"box","text":"Eastern time on any business day.","page_number":1,"box":{"x":70,"y":445,"width":258,"height":12}},{"id":"ad77b419-3388-41db-a2d1-6de974f3e79b","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company Act”), or","page_number":1,"box":{"x":103,"y":468,"width":767,"height":12}},{"id":"55521d99-37cc-4496-bd44-22e4f639ec70","block_type":"box","text":"other applicable law, will include any rules promulgated thereunder and any guidance, interpretations or","page_number":1,"box":{"x":69,"y":483,"width":796,"height":12}},{"id":"2546729c-7e8a-40bf-8564-3b930bb26065","block_type":"box","text":"modifications by the Commission, Commission staff or other authority with appropriate jurisdiction, including","page_number":1,"box":{"x":70,"y":498,"width":837,"height":12}},{"id":"4ccb55cb-c10e-45c7-97ec-b2c056f664f2","block_type":"box","text":"court interpretations, and exemptive, no-action or other relief or permission from the Commission,","page_number":1,"box":{"x":69,"y":513,"width":749,"height":12}},{"id":"de9146ac-8b0f-4386-8c05-2d628c4e3cf0","block_type":"box","text":"Commission staff or other authority.","page_number":1,"box":{"x":70,"y":528,"width":274,"height":12}},{"id":"8c6d1ea7-573b-477a-9e25-7e14ec501e90","block_type":"box","text":"Class","page_number":1,"box":{"x":69,"y":557,"width":31,"height":7}},{"id":"d7185f1e-9d85-4387-b236-b0e42d3ffdf2","block_type":"box","text":"Ticker Symbol","page_number":1,"box":{"x":827,"y":557,"width":82,"height":9}},{"id":"e4ff0570-623f-48ca-a1a9-209b45f11555","block_type":"box","text":"Investor A Shares","page_number":1,"box":{"x":70,"y":575,"width":124,"height":8}},{"id":"979bac8d-131d-4c6b-8fd7-8194a60e4245","block_type":"box","text":"..........................................................................","page_number":1,"box":{"x":199,"y":582,"width":597,"height":1}},{"id":"d508230f-feb2-4bde-b506-875c4bcc9898","block_type":"box","text":"BCSAX","page_number":1,"box":{"x":846,"y":575,"width":47,"height":8}},{"id":"77039799-c36f-4d3c-9391-66457c598ad9","block_type":"box","text":"Investor C Shares.","page_number":1,"box":{"x":70,"y":590,"width":131,"height":9}},{"id":"c9142a14-2d13-4a16-870d-5b2004b68a67","block_type":"box","text":".........................................................................","page_number":1,"box":{"x":208,"y":597,"width":588,"height":1}},{"id":"57ad24d7-05f5-4c85-9c1c-ad8ca7532b75","block_type":"box","text":"BCSCX","page_number":1,"box":{"x":845,"y":590,"width":48,"height":9}},{"id":"4a1e93c6-73ec-471f-a49d-50b43e577a6d","block_type":"box","text":"Institutional Shares","page_number":1,"box":{"x":70,"y":605,"width":137,"height":9}},{"id":"6b0d6e6f-8f3d-48b1-830e-da27f96c4ce7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BICSX","page_number":1,"box":{"x":216,"y":605,"width":677,"height":9}},{"id":"befe8df2-8fdc-4141-b05c-b918126d6804","block_type":"box","text":"Class K Shares","page_number":1,"box":{"x":69,"y":620,"width":109,"height":9}},{"id":"d87d1feb-b088-4bab-8da4-793ac106d204","block_type":"box","text":"............................................................................","page_number":1,"box":{"x":183,"y":627,"width":613,"height":2}},{"id":"b0de8521-7363-4184-b7fb-5a940da3337b","block_type":"box","text":"BCSKX","page_number":1,"box":{"x":845,"y":620,"width":48,"height":9}},{"id":"6ba9aa28-5c04-4d79-8351-b9d0bcd54f10","block_type":"box","text":"BlackRock Advisors, LLC — Manager","page_number":1,"box":{"x":260,"y":674,"width":460,"height":20}},{"id":"55bdf807-f17d-45ef-9e68-57dff704a56f","block_type":"box","text":"BlackRock Investments, LLC — Distributor","page_number":1,"box":{"x":222,"y":697,"width":536,"height":18}},{"id":"0d2113fb-76e1-4e5b-a759-135a9d10746f","block_type":"box","text":"The date of this Statement of Additional Information is September 28, 2026.","page_number":1,"box":{"x":199,"y":757,"width":579,"height":11}},{"id":"2f6e93ed-91a8-4038-8615-af312e156b38","block_type":"box","text":"NM1026U-5981128-1/232","page_number":1,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"bea815fd-b271-44d5-b4b8-bcb527ef1c00","block_type":"box","text":"TABLE OF CONTENTS","page_number":2,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"4dd4ac6e-87c6-42f6-bebd-62706782a629","block_type":"box","text":"Page","page_number":2,"box":{"x":869,"y":73,"width":28,"height":9}},{"id":"ea0c4415-d83c-4703-ac65-95d6213e2b57","block_type":"box","text":"PART I","page_number":2,"box":{"x":69,"y":92,"width":47,"height":9}},{"id":"a5ccca68-8f9a-4b54-a93f-774e9038d25a","block_type":"box","text":"Investment Objective and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1","page_number":2,"box":{"x":70,"y":108,"width":839,"height":11}},{"id":"a0c0f1db-96a3-4a4e-b6cd-ea622edd913c","block_type":"box","text":"Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-6","page_number":2,"box":{"x":70,"y":125,"width":839,"height":9}},{"id":"49004f78-bc14-432a-9297-08d95ec1bdda","block_type":"box","text":"Information on Trustees and Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-8","page_number":2,"box":{"x":70,"y":141,"width":839,"height":9}},{"id":"b6d258c7-7e6d-4646-a8fe-17703fa66294","block_type":"box","text":"Management, Advisory and Other Service Arrangements. . . . . . . . .","page_number":2,"box":{"x":70,"y":158,"width":469,"height":11}},{"id":"07a59de9-a675-48e4-9d17-4141b64b45fc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-19","page_number":2,"box":{"x":545,"y":158,"width":364,"height":8}},{"id":"e9cfb143-c523-4047-ab69-5721ced85f30","block_type":"box","text":"Information on Sales Charges and Distribution Related Expenses .","page_number":2,"box":{"x":70,"y":174,"width":469,"height":11}},{"id":"6b000a58-628a-43bc-90fe-f5692e978248","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":2,"box":{"x":545,"y":174,"width":364,"height":9}},{"id":"a4d9bb07-716c-4515-859d-b38549d1bfd3","block_type":"box","text":"Computation of Offering Price Per Share . . . . . . . . . . . . . . . . . . . .","page_number":2,"box":{"x":69,"y":190,"width":446,"height":11}},{"id":"c58e78f2-a843-44d2-ac58-91696b159829","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":2,"box":{"x":521,"y":190,"width":388,"height":9}},{"id":"26947803-2a43-4bad-8807-298608ce7d81","block_type":"box","text":"Portfolio Transactions and Brokerage . .","page_number":2,"box":{"x":69,"y":206,"width":283,"height":12}},{"id":"0f53b557-d3cb-4e4a-8cfb-f7791cc9e678","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":2,"box":{"x":358,"y":207,"width":551,"height":8}},{"id":"fff01946-e3c9-49c8-8f8f-87eeba75afa9","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":2,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"be42a93a-89ac-4025-8692-1a74fa8941e2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-26","page_number":2,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"d348b398-1881-4046-9d3e-576602d6c28e","block_type":"box","text":"Financial Statements","page_number":2,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"9178903f-3180-4f76-a784-9121c1973558","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-28","page_number":2,"box":{"x":227,"y":239,"width":682,"height":9}},{"id":"38d9143a-1e76-4ae5-ac4f-35ad08bebf4d","block_type":"box","text":"PART II","page_number":2,"box":{"x":69,"y":271,"width":52,"height":9}},{"id":"c103cabf-32cc-45b5-a2b5-18a3ca4498bd","block_type":"box","text":"Investment Risks and Considerations . . . . . . . .","page_number":2,"box":{"x":70,"y":287,"width":330,"height":9}},{"id":"b6832f29-a249-44d6-b05f-fb8b5be370f3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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II-84","page_number":2,"box":{"x":521,"y":320,"width":388,"height":9}},{"id":"1098b0f9-8d98-4fd6-8219-f8e628408dbe","block_type":"box","text":"Purchase of Shares","page_number":2,"box":{"x":69,"y":336,"width":139,"height":9}},{"id":"495f21da-db4b-4e3d-b96b-f735ee3a0c31","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-97","page_number":2,"box":{"x":211,"y":336,"width":697,"height":9}},{"id":"1755adb1-ee2a-496a-9450-57d772a2c4ab","block_type":"box","text":"Redemption of Shares . .","page_number":2,"box":{"x":70,"y":353,"width":176,"height":11}},{"id":"d478fc41-7998-4db8-b166-68c90940ed22","block_type":"box","text":"........................................................................... I","page_number":2,"box":{"x":252,"y":353,"width":619,"height":9}},{"id":"002802e2-98bd-410b-8bd8-87a6574e3769","block_type":"box","text":"I-114","page_number":2,"box":{"x":874,"y":353,"width":35,"height":9}},{"id":"a082c02a-5839-4d80-b45c-4086e0d07cdd","block_type":"box","text":"Shareholder Services . .","page_number":2,"box":{"x":69,"y":369,"width":168,"height":9}},{"id":"cc7532a0-6c8a-40da-b595-a0d581a057e3","block_type":"box","text":"............................................................................ 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I","page_number":2,"box":{"x":195,"y":386,"width":676,"height":8}},{"id":"f78d4552-07b6-4dd2-a65d-aad10769424f","block_type":"box","text":"I-122","page_number":2,"box":{"x":874,"y":386,"width":35,"height":8}},{"id":"a90cb18c-40fd-4668-87d3-484f354ea5f5","block_type":"box","text":"Portfolio Transactions and Brokerage . .","page_number":2,"box":{"x":69,"y":402,"width":283,"height":11}},{"id":"17f0480f-02df-4c2a-9b5c-40369e882e09","block_type":"box","text":".............................................................. 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I","page_number":2,"box":{"x":203,"y":435,"width":668,"height":8}},{"id":"2dd346a6-16ff-4e34-a91a-7f7e6ddd7a82","block_type":"box","text":"I-137","page_number":2,"box":{"x":874,"y":435,"width":34,"height":9}},{"id":"9d74d5ad-f667-4066-8d9e-b5d3febece57","block_type":"box","text":"Proxy Voting Policies and Procedures. . . . . . . . . . . . . . . . . . . . . .","page_number":2,"box":{"x":69,"y":451,"width":437,"height":11}},{"id":"01c2c12e-1f80-4eaa-b1c2-705745afaf0a","block_type":"box","text":"........................................... I","page_number":2,"box":{"x":513,"y":451,"width":358,"height":9}},{"id":"fccba4f5-920c-4d13-bfda-b1a4e4456b2c","block_type":"box","text":"I-139","page_number":2,"box":{"x":874,"y":451,"width":35,"height":9}},{"id":"455e0206-3649-4375-bf10-65848f9d8ae4","block_type":"box","text":"General Information","page_number":2,"box":{"x":69,"y":467,"width":140,"height":9}},{"id":"b8334aa1-63f4-491d-9b80-3236a6d07df2","block_type":"box","text":"............................................................................... I","page_number":2,"box":{"x":219,"y":468,"width":652,"height":8}},{"id":"3e17fb73-e248-468d-a164-e0c17bb48933","block_type":"box","text":"I-139","page_number":2,"box":{"x":874,"y":467,"width":35,"height":9}},{"id":"0c654657-4f7e-4578-9afe-a2db2453f316","block_type":"box","text":"Appendix A — Description of Bond Ratings. . . .","page_number":2,"box":{"x":68,"y":484,"width":332,"height":11}},{"id":"7ae95e59-b386-4569-a69f-cef47f58b90d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1","page_number":2,"box":{"x":407,"y":484,"width":502,"height":9}},{"id":"585e594d-ce5a-4e0c-9da0-bef35a5d6d2d","block_type":"box","text":"Appendix B — Proxy Voting Policies . . . . . .","page_number":2,"box":{"x":68,"y":500,"width":300,"height":11}},{"id":"41b12bb4-6b55-488d-82a8-03c740026f43","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":2,"box":{"x":374,"y":500,"width":535,"height":9}},{"id":"c7ccf4df-5264-4ab2-b1a0-f45f5fe487ee","block_type":"box","text":"NM1026U-5981128-2/232","page_number":2,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"8ae02d78-2ff7-4763-b3dd-75aab4aa9b0a","block_type":"box","text":"PART I: INFORMATION ABOUT BLACKROCK COMMODITY STRATEGIES FUND","page_number":3,"box":{"x":210,"y":45,"width":559,"height":9}},{"id":"ee3af1ae-08f4-4348-b041-5ae94f3073c7","block_type":"box","text":"Part I of this Statement of Additional Information (“SAI”) sets forth information about BlackRock Commodity","page_number":3,"box":{"x":102,"y":67,"width":769,"height":11}},{"id":"ef42ec3f-1976-4fe9-a64c-a8bdd8f683af","block_type":"box","text":"Strategies Fund (the “Fund”), a series of BlackRock Funds","page_number":3,"box":{"x":69,"y":82,"width":414,"height":12}},{"id":"bc499d5e-9d10-4d49-b325-0b31c4f531d4","block_type":"box","text":"SM","page_number":3,"box":{"x":484,"y":83,"width":11,"height":4}},{"id":"41539f70-9097-4c5f-baf3-7d8c22841257","block_type":"box","text":"(the “Trust”). It includes information about the Trust’s","page_number":3,"box":{"x":501,"y":82,"width":383,"height":11}},{"id":"4e458b90-5b88-4ca9-8cc2-0c627ae3237f","block_type":"box","text":"Board of Trustees (the “Board”), the advisory and management services provided to and the management fees paid","page_number":3,"box":{"x":70,"y":98,"width":827,"height":11}},{"id":"466da669-50ea-451b-8741-4b083cb30479","block_type":"box","text":"by the Fund and information about other fees applicable to and services provided to the Fund. This Part I of this SAI","page_number":3,"box":{"x":69,"y":113,"width":825,"height":11}},{"id":"4d66493a-9b23-45a5-b0fd-5c0fc1f11567","block_type":"box","text":"should be read in conjunction with the Fund’s Prospectus and those portions of Part II of this SAI that pertain to the","page_number":3,"box":{"x":69,"y":128,"width":829,"height":11}},{"id":"d54379b5-92f4-473f-850b-98c58213bdfd","block_type":"box","text":"Fund.","page_number":3,"box":{"x":70,"y":143,"width":36,"height":9}},{"id":"22eb22f8-1b89-4cb3-9439-e6aba215d1cc","block_type":"box","text":"I. Investment Objective and Policies","page_number":3,"box":{"x":69,"y":173,"width":262,"height":11}},{"id":"7b9d2a3b-400b-4dcf-bbb7-8c8c6f626cee","block_type":"box","text":"Please see the section “Details About the Fund — How the Fund Invests” in the Prospectus for information","page_number":3,"box":{"x":102,"y":196,"width":762,"height":11}},{"id":"1738490b-e2ac-429d-b98b-0868859aaff4","block_type":"box","text":"about the Fund’s investment objective and policies. Additional information regarding the Fund’s investment objective","page_number":3,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"9d7c8458-92ea-4746-9030-fe04bbd3ba6a","block_type":"box","text":"and policies is included below.","page_number":3,"box":{"x":69,"y":226,"width":215,"height":11}},{"id":"1a578dd1-e89b-4fe9-bb8d-e5a9eb5ee6c1","block_type":"box","text":"Organization and Management of the Wholly-Owned Subsidiary","page_number":3,"box":{"x":102,"y":249,"width":447,"height":11}},{"id":"20af101b-9765-4b72-a0e3-cca39ead20c6","block_type":"box","text":"The Fund may invest up to 25% of its total assets in the shares of BlackRock Cayman Commodity Strategies","page_number":3,"box":{"x":101,"y":271,"width":773,"height":12}},{"id":"963dad63-177e-4003-8fe1-5d607fe179a7","block_type":"box","text":"Fund, Ltd. (the “Subsidiary”), a wholly-owned subsidiary of the Fund. Investments in the Subsidiary are expected to","page_number":3,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"b16f8b9c-36da-46f2-97c7-38d21db2996b","block_type":"box","text":"provide the Fund with exposure to investment returns of commodities within the limitations of Subchapter M of the","page_number":3,"box":{"x":70,"y":302,"width":815,"height":11}},{"id":"33b0213d-f838-42f3-8157-8dea33e94aac","block_type":"box","text":"Internal Revenue Code of 1986, as amended (the “Code”). The Subsidiary is advised by BlackRock Advisors, LLC","page_number":3,"box":{"x":70,"y":317,"width":807,"height":11}},{"id":"5e925a3e-a8f9-4c3d-8425-2221293c6102","block_type":"box","text":"(“BlackRock” or the “Manager”). The Subsidiary (unlike the Fund) may invest without limitation in commodity-linked","page_number":3,"box":{"x":69,"y":332,"width":818,"height":11}},{"id":"aa6a3312-3af7-42a6-a6fd-39c62dddb71f","block_type":"box","text":"derivatives. However, the Subsidiary is otherwise subject to the same fundamental, non-fundamental and certain","page_number":3,"box":{"x":69,"y":347,"width":805,"height":11}},{"id":"a3abba9b-aa8f-450c-b7ee-4cfada0869c1","block_type":"box","text":"other investment restrictions as the Fund. The Subsidiary is a company organized under the laws of the Cayman","page_number":3,"box":{"x":69,"y":362,"width":799,"height":11}},{"id":"5ba00e4d-63d6-45d3-896e-bdfe9ab36536","block_type":"box","text":"Islands, whose registered office is located at the offices of Maples Corporate Services Limited, P.O. Box 309, Ugland","page_number":3,"box":{"x":70,"y":377,"width":837,"height":12}},{"id":"4424602c-4bb4-4cc7-9f66-a3173344d462","block_type":"box","text":"House, Grand Cayman KYI-1104, Cayman Islands. The Subsidiary’s affairs are overseen by a board of directors,","page_number":3,"box":{"x":70,"y":392,"width":799,"height":12}},{"id":"9e725c40-1637-4847-a3ed-2ce1758f542e","block_type":"box","text":"which is comprised of John M. Perlowski, a Trustee of the Trust, and Neal J. Andrews, Chief Financial Officer of the","page_number":3,"box":{"x":68,"y":407,"width":819,"height":11}},{"id":"c9107408-0c69-4bf7-814d-302728d41e83","block_type":"box","text":"Trust. The Fund is the sole shareholder of the Subsidiary, and shares of the Subsidiary will not be sold or offered to","page_number":3,"box":{"x":68,"y":423,"width":828,"height":11}},{"id":"ed0b2166-c367-4840-801d-840f389df456","block_type":"box","text":"other investors.","page_number":3,"box":{"x":69,"y":438,"width":109,"height":9}},{"id":"f82163ae-51b7-48e0-b9e4-be69ca37df73","block_type":"box","text":"The Subsidiary invests primarily in commodity-linked derivatives. The Fund will gain exposure to the investment","page_number":3,"box":{"x":101,"y":460,"width":790,"height":12}},{"id":"c1fec3ae-4ee8-4547-aa16-34498c4c2d30","block_type":"box","text":"returns of commodities indirectly by investing in the Subsidiary. To the extent that BlackRock believes that such","page_number":3,"box":{"x":69,"y":475,"width":794,"height":12}},{"id":"f7a40755-e5c5-4f7d-b3ea-e5935ec596fd","block_type":"box","text":"instruments provide suitable exposure to commodities, the Fund’s investment in the Subsidiary will likely increase.","page_number":3,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"b62e3c16-a6ec-4667-8b74-e82dfa8c4547","block_type":"box","text":"BlackRock manages the assets of the Subsidiary, but receives no additional compensation for doing so.","page_number":3,"box":{"x":70,"y":506,"width":740,"height":11}},{"id":"58f0d5b7-333c-4e4f-b335-08081a81e993","block_type":"box","text":"BlackRock also provides certain administrative services for the Subsidiary, but receives no additional","page_number":3,"box":{"x":102,"y":528,"width":721,"height":12}},{"id":"ada4a43c-34a0-4a5a-abd1-28ede2659fbb","block_type":"box","text":"compensation for doing so. The Manager has entered into a sub-advisory agreement with BlackRock International","page_number":3,"box":{"x":69,"y":543,"width":808,"height":12}},{"id":"b3c9af6e-34a8-45ee-8b0b-05df38b702d1","block_type":"box","text":"Limited with respect to the Subsidiary. The Subsidiary has entered into separate contracts for the provision of","page_number":3,"box":{"x":70,"y":559,"width":784,"height":11}},{"id":"cdf64c4e-300b-42ed-bca6-dd8949c50337","block_type":"box","text":"custody, transfer agency, and accounting agent services with the same or with affiliates of the same service","page_number":3,"box":{"x":69,"y":574,"width":771,"height":11}},{"id":"ca0ca34a-f420-425e-9935-f333fd021099","block_type":"box","text":"providers that provide those services to the Fund.","page_number":3,"box":{"x":70,"y":589,"width":353,"height":11}},{"id":"1793a202-37c5-4f9a-9693-9ee5d6e410c3","block_type":"box","text":"The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all material","page_number":3,"box":{"x":101,"y":612,"width":780,"height":11}},{"id":"0700c9fe-985c-40e5-b25c-289982e9dd56","block_type":"box","text":"respects, as the policies and procedures adopted by the Fund. As a result, the Manager, in managing the","page_number":3,"box":{"x":69,"y":627,"width":750,"height":11}},{"id":"77bc138a-69e9-4329-9dbc-53a9e6f564e4","block_type":"box","text":"Subsidiary’s portfolio, is subject to the same investment policies and restrictions that apply to the management of","page_number":3,"box":{"x":69,"y":642,"width":820,"height":11}},{"id":"6cfaf3d6-a980-4f96-8a68-1d7388e5bdff","block_type":"box","text":"the Fund, and, in particular, to the requirements relating to portfolio leverage, liquidity, brokerage, and the timing and","page_number":3,"box":{"x":68,"y":657,"width":836,"height":11}},{"id":"b149173b-26fa-4dd6-8abf-e9bad7cb9560","block_type":"box","text":"method of the valuation of the Subsidiary’s portfolio investments and shares of the Subsidiary. These policies and","page_number":3,"box":{"x":69,"y":672,"width":818,"height":11}},{"id":"2563a28d-c433-48e3-80e9-2181fe34fbcf","block_type":"box","text":"restrictions are described elsewhere in detail in this SAI. The Fund and Subsidiary test for compliance with certain","page_number":3,"box":{"x":69,"y":687,"width":814,"height":11}},{"id":"88d9029e-c05b-4cc3-9d27-d61d8c6bd833","block_type":"box","text":"investment restrictions on a consolidated basis.","page_number":3,"box":{"x":70,"y":703,"width":341,"height":8}},{"id":"a67c4b28-ac4a-4084-8ab7-b2976d9184c3","block_type":"box","text":"The financial statements of the Subsidiary are consolidated with the Fund’s financial statements in the Fund’s","page_number":3,"box":{"x":101,"y":725,"width":788,"height":11}},{"id":"49b3af3d-9e50-44eb-9b8f-a88d8031d381","block_type":"box","text":"Annual and Semi-Annual Financial Statements and Additional Information. Copies of the Fund’s annual and semi","page_number":3,"box":{"x":68,"y":740,"width":805,"height":11}},{"id":"9193a4a0-1a1a-49e8-aef1-88b566d3afe1","block_type":"box","text":"annual reports and Annual and Semi-Annual Financial Statements and Additional Information are available at no","page_number":3,"box":{"x":69,"y":755,"width":797,"height":11}},{"id":"f32edb64-8c0d-4f98-87ea-0f6e23b84b05","block_type":"box","text":"charge upon request by calling (800) 441-7762 between 8:00 a.m. and 6:00 p.m. Eastern time on any business day.","page_number":3,"box":{"x":69,"y":770,"width":836,"height":12}},{"id":"9389c03b-ca61-4a6d-b43b-26f82ea4031d","block_type":"box","text":"The Subsidiary is not registered under the Investment Company Act of 1940, as amended (the “Investment","page_number":3,"box":{"x":101,"y":793,"width":766,"height":11}},{"id":"33ffadc0-9bbc-4bc6-a8b0-64a6952f052e","block_type":"box","text":"Company Act”) and, unless otherwise noted in the Fund’s Prospectus or this SAI, is not subject to all the investor","page_number":3,"box":{"x":69,"y":808,"width":810,"height":11}},{"id":"afad7c6d-2f68-4e14-84ea-260d810fbc55","block_type":"box","text":"protections of the Investment Company Act. However, the Fund wholly owns and controls the Subsidiary, and the","page_number":3,"box":{"x":70,"y":823,"width":800,"height":11}},{"id":"9d0ed2c6-9952-4c38-a772-579c9b9f378c","block_type":"box","text":"Fund and the Subsidiary are both managed by BlackRock, making it unlikely that the Subsidiary will take action","page_number":3,"box":{"x":70,"y":838,"width":790,"height":12}},{"id":"48461421-c1f4-4090-b628-5d8f7caa204e","block_type":"box","text":"contrary to the interests of the Fund and its shareholders. The Trust’s Board has oversight responsibility for the","page_number":3,"box":{"x":69,"y":853,"width":796,"height":12}},{"id":"a13544d3-28b8-4f8c-86b6-01d1396eeed9","block_type":"box","text":"investment activities of the Fund, including its investment in the Subsidiary, and the Fund’s role as sole shareholder","page_number":3,"box":{"x":70,"y":869,"width":828,"height":11}},{"id":"97a0d4ee-a270-4e66-9aed-c5cb284d1b29","block_type":"box","text":"of the Subsidiary. As noted above, the Subsidiary is subject to the same investment restrictions and limitations, and","page_number":3,"box":{"x":69,"y":884,"width":831,"height":11}},{"id":"7b7296fe-a403-4c13-8215-d2366669880f","block_type":"box","text":"follows the same compliance policies and procedures, as the Fund. Changes in the laws of the United States and/or","page_number":3,"box":{"x":68,"y":899,"width":834,"height":11}},{"id":"26ba6814-20d9-4971-a339-027e486bcc62","block_type":"box","text":"I-1","page_number":3,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"5c652e62-d59d-45f6-875f-1fc4afc9d189","block_type":"box","text":"NM1026U-5981128-3/232","page_number":3,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"238dfdaa-dd73-4522-9de2-efba21c0cb6e","block_type":"box","text":"the Cayman Islands could result in the inability of the Fund and/or the Subsidiary to operate as described in the","page_number":4,"box":{"x":68,"y":45,"width":800,"height":11}},{"id":"7044a2ad-cb7c-4e3c-867f-46a20accb48d","block_type":"box","text":"Fund’s Prospectus and this SAI and could adversely affect the Fund. For example, the Cayman Islands does not","page_number":4,"box":{"x":70,"y":60,"width":795,"height":11}},{"id":"650d2b97-4217-4515-b324-22cc86570bf8","block_type":"box","text":"currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on","page_number":4,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"aaeacfe1-573d-460b-8247-9127fdb22baf","block_type":"box","text":"the Subsidiary. If Cayman Islands law changes such that the Subsidiary must pay Cayman Islands taxes, Fund","page_number":4,"box":{"x":68,"y":90,"width":786,"height":11}},{"id":"2e0a4dd0-9e4c-475d-8832-211959d8f4c3","block_type":"box","text":"shareholders would likely suffer decreased investment returns.","page_number":4,"box":{"x":69,"y":105,"width":448,"height":11}},{"id":"e4752c63-0c6e-4e0d-8a22-61f571279e79","block_type":"box","text":"Furthermore, the Fund will be subject to the distribution requirement on such Subsidiary income.","page_number":4,"box":{"x":102,"y":128,"width":689,"height":11}},{"id":"04af3d3b-ae74-43ef-9c59-d89a69e73dd5","block_type":"box","text":"***","page_number":4,"box":{"x":469,"y":151,"width":40,"height":5}},{"id":"8ef11e44-1edc-4e6f-82c6-7e5724aef776","block_type":"box","text":"In connection with its use of derivatives, the Fund does not expect to have exposure of more than 25% of its","page_number":4,"box":{"x":102,"y":174,"width":772,"height":11}},{"id":"c2391c49-4b77-4d36-a23a-5be7a3505ee8","block_type":"box","text":"total assets at any time to any one counterparty.","page_number":4,"box":{"x":68,"y":189,"width":346,"height":11}},{"id":"389b5002-a680-4722-a40d-af2075bfafa8","block_type":"box","text":"The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":4,"box":{"x":101,"y":212,"width":777,"height":11}},{"id":"311ce553-a9d5-4cf2-a2ee-c90c1b12ce1e","block_type":"box","text":"Fund may not purchase securities of an issuer (other than (i) obligations issued or guaranteed by the U.S.","page_number":4,"box":{"x":70,"y":227,"width":751,"height":11}},{"id":"dd545b79-cf2f-4ab1-acef-7f56a5ed4cdc","block_type":"box","text":"Government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to","page_number":4,"box":{"x":69,"y":242,"width":813,"height":11}},{"id":"578f43f4-dfe7-4972-8a06-a47077f86de7","block_type":"box","text":"75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or","page_number":4,"box":{"x":69,"y":257,"width":827,"height":11}},{"id":"8c770fcd-0287-4c9c-a58f-eb065814129a","block_type":"box","text":"(b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the","page_number":4,"box":{"x":69,"y":272,"width":781,"height":11}},{"id":"d291a661-7cec-422f-92cd-dcd394471c0f","block_type":"box","text":"remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. Under the","page_number":4,"box":{"x":69,"y":287,"width":759,"height":11}},{"id":"665742c8-0490-437f-b0c2-c0bc894406aa","block_type":"box","text":"Investment Company Act, the Fund cannot change its classification from diversified to non-diversified without","page_number":4,"box":{"x":70,"y":302,"width":774,"height":12}},{"id":"66273f5a-8bae-44d8-8004-e4548068dbd0","block_type":"box","text":"shareholder approval.","page_number":4,"box":{"x":69,"y":318,"width":153,"height":10}},{"id":"14b03395-3433-4928-8488-94537104e02f","block_type":"box","text":"In implementing the Fund’s investment strategy, from time to time, BlackRock, the Fund’s investment manager,","page_number":4,"box":{"x":102,"y":340,"width":792,"height":11}},{"id":"3136bdb3-6630-4299-84ce-acb06041d8fe","block_type":"box","text":"may consider and employ techniques and strategies designed to minimize and defer the U.S. federal income taxes","page_number":4,"box":{"x":69,"y":355,"width":816,"height":11}},{"id":"3a73d040-fca3-4dbb-a97b-45e5736b0eba","block_type":"box","text":"which may be incurred by shareholders in connection with their investment in the Fund.","page_number":4,"box":{"x":68,"y":371,"width":620,"height":10}},{"id":"3ec1fb32-8903-4563-abab-c4d09001ba1b","block_type":"box","text":"Set forth below is a listing of some of the types of investments and investment strategies that the Fund may","page_number":4,"box":{"x":102,"y":393,"width":774,"height":11}},{"id":"ab3b90af-2fac-4f75-97c1-bf5b9524dfaa","block_type":"box","text":"use, and the risks and considerations associated with those investments and investment strategies. Please see Part","page_number":4,"box":{"x":69,"y":408,"width":837,"height":11}},{"id":"f0a2eaff-f166-4e93-ac5a-a1be54d8f0e0","block_type":"box","text":"II of this SAI for further information on these investments and investment strategies. Information contained in Part II","page_number":4,"box":{"x":70,"y":423,"width":828,"height":12}},{"id":"2b2138a4-8c15-42c0-b6f5-f46687833029","block_type":"box","text":"about the risks and considerations associated with investments and/or investment strategies applies only to the","page_number":4,"box":{"x":69,"y":439,"width":805,"height":11}},{"id":"b6da7573-b841-4126-82fb-4b01be99f419","block_type":"box","text":"extent the Fund makes each type of investment or uses each investment strategy. Also set forth below is a listing of","page_number":4,"box":{"x":69,"y":453,"width":830,"height":12}},{"id":"f662bfbd-6973-4700-bc71-463dd71530db","block_type":"box","text":"the proxy voting policy and related guidelines applicable to the Fund. 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law.","page_number":9,"box":{"x":102,"y":377,"width":594,"height":11}},{"id":"4854ee05-4b59-4191-9c52-4ce1437a82cd","block_type":"box","text":"(4) Purchase, hold or deal in real estate, although the Fund may purchase and sell securities that are secured by","page_number":9,"box":{"x":102,"y":400,"width":805,"height":11}},{"id":"3c2b6a76-cea3-42af-bf91-430cd4468258","block_type":"box","text":"real estate or interests therein, securities of real estate investment trusts and mortgage-related securities and may","page_number":9,"box":{"x":69,"y":415,"width":826,"height":11}},{"id":"61a17416-dc15-4899-9ec1-95e74cead9d8","block_type":"box","text":"hold and sell real estate acquired by the Fund as a result of the ownership of securities.","page_number":9,"box":{"x":69,"y":430,"width":628,"height":11}},{"id":"c008d71e-19ad-4eba-9e42-9f90144cf5a8","block_type":"box","text":"(5) Underwrite securities issued by others, except to the extent that the sale of portfolio securities by the Fund","page_number":9,"box":{"x":102,"y":453,"width":789,"height":11}},{"id":"052f7fa4-8fea-475f-b0a8-0a3da237fe51","block_type":"box","text":"may be deemed to be an underwriting.","page_number":9,"box":{"x":69,"y":468,"width":273,"height":11}},{"id":"6bac59f2-34c5-4cf3-988a-460bba476d78","block_type":"box","text":"(6) Purchase or sell commodities or contracts on commodities, except to the extent that the Fund may do so in","page_number":9,"box":{"x":102,"y":491,"width":790,"height":11}},{"id":"71466544-59e4-4028-984d-db6e61a02e47","block_type":"box","text":"accordance with applicable law and the Fund’s Prospectus and SAI, as they may be amended from time to time, and","page_number":9,"box":{"x":69,"y":506,"width":829,"height":11}},{"id":"1e2a2612-caa4-43a0-b1f7-7441f16b79d5","block_type":"box","text":"without registering as a commodity pool operator under the Commodity Exchange Act.","page_number":9,"box":{"x":68,"y":521,"width":609,"height":11}},{"id":"e4e88037-3df3-474e-9886-12740f76a8e2","block_type":"box","text":"(7) Make loans, except through (a) the purchase of debt obligations in accordance with the Fund’s investment","page_number":9,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"629ec9a1-3f1f-44b8-85f1-85ed0734c1d8","block_type":"box","text":"objective and policies, (b) repurchase agreements with banks, brokers, dealers and other financial institutions,","page_number":9,"box":{"x":69,"y":559,"width":789,"height":11}},{"id":"1fc3d170-f883-4e80-a82a-7fe2b84e01fc","block_type":"box","text":"(c) loans of securities as permitted by applicable law, and (d) loans to affiliates of the Fund to the extent permitted by","page_number":9,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"1f636909-4b80-4b63-ba2e-f491c4c418e7","block_type":"box","text":"law.","page_number":9,"box":{"x":70,"y":589,"width":24,"height":9}},{"id":"0770988d-4d91-4095-b99b-f16e7067482a","block_type":"box","text":"With respect to fundamental investment restriction 1. above, with respect to the Fund’s industry classifications,","page_number":9,"box":{"x":101,"y":612,"width":798,"height":11}},{"id":"ee08040a-cb77-4f4d-99c6-045479cb54c1","block_type":"box","text":"the Fund currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized","page_number":9,"box":{"x":68,"y":627,"width":829,"height":11}},{"id":"f991acdb-73a9-4cd1-9d76-d06589c52928","block_type":"box","text":"market indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to","page_number":9,"box":{"x":69,"y":642,"width":839,"height":11}},{"id":"1b1cce00-6b65-4a44-838d-5440a7a71a19","block_type":"box","text":"give broad authority to the Fund as to how to classify issuers within or among industries.","page_number":9,"box":{"x":68,"y":657,"width":631,"height":11}},{"id":"5a078b7f-5ec9-479c-b143-6128f461110f","block_type":"box","text":"With respect to fundamental investment restriction 1. above, the Fund will look to the reference asset underlying","page_number":9,"box":{"x":101,"y":680,"width":804,"height":11}},{"id":"daaccc75-ea9e-4c9d-918b-3a0a1c1047b7","block_type":"box","text":"any derivative, including a participation note, when determining its percentage of assets invested in any particular","page_number":9,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"0938f2ad-8cd8-49f5-a0ed-dfeb9835edc2","block_type":"box","text":"industry.","page_number":9,"box":{"x":70,"y":710,"width":58,"height":11}},{"id":"c9b2c1cc-ebcc-4fc4-b1eb-717b558ea5d1","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":9,"box":{"x":102,"y":732,"width":768,"height":12}},{"id":"eedce369-27fe-4679-b373-17f421342db2","block_type":"box","text":"approval, the Fund may not:","page_number":9,"box":{"x":69,"y":748,"width":197,"height":11}},{"id":"b94a8940-58bc-4f9a-9c3c-afa9e16460e2","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":9,"box":{"x":102,"y":770,"width":747,"height":11}},{"id":"07dcbcb1-b1a2-42a8-81b9-2454fe6397e3","block_type":"box","text":"Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":9,"box":{"x":69,"y":785,"width":759,"height":12}},{"id":"555113f7-4ceb-4ea4-9cfa-cba04aef3b36","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":9,"box":{"x":70,"y":801,"width":829,"height":11}},{"id":"33d96f48-d053-402f-a829-f81c20ff979f","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":9,"box":{"x":70,"y":816,"width":808,"height":11}},{"id":"add6eba2-7d71-4963-94d6-8adbdce9ea90","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":9,"box":{"x":69,"y":831,"width":763,"height":11}},{"id":"3dd2b0d4-497d-43fa-90d2-15471aff31c1","block_type":"box","text":"(b) Make short sales of securities or maintain a short position, except to the extent permitted by the Fund’s","page_number":9,"box":{"x":102,"y":853,"width":770,"height":12}},{"id":"17211e91-3cda-4e3d-a880-943d3974b155","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":9,"box":{"x":69,"y":869,"width":510,"height":11}},{"id":"8d121030-b299-472d-a3b4-1c1786dbde93","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":9,"box":{"x":102,"y":891,"width":771,"height":11}},{"id":"1973060f-af3d-4d81-85cd-9cebd428e75f","block_type":"box","text":"Company Act, all limitations apply only at the time that a transaction is undertaken. Any change in the percentage of","page_number":9,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"a6ea01df-1bda-43cf-987a-86553101ab12","block_type":"box","text":"I-7","page_number":9,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"d2994e54-86bf-4b4f-b993-4b374265eed2","block_type":"box","text":"NM1026U-5981128-9/232","page_number":9,"box":{"x":764,"y":970,"width":141,"height":7}},{"id":"485d4541-2bb8-4fcf-97ae-dbc2526e9ad5","block_type":"box","text":"the Fund’s assets invested in certain securities or other instruments resulting from market fluctuations or other","page_number":10,"box":{"x":68,"y":45,"width":799,"height":11}},{"id":"dfc2ce5d-609b-4ffc-9c19-3040daccf330","block_type":"box","text":"changes in the Fund’s total assets will not require the Fund to dispose of an investment until BlackRock determines","page_number":10,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"c14d0417-9cf0-4463-842b-cd183248fc8f","block_type":"box","text":"that it is practicable to sell or close out the investment without undue market or tax consequences.","page_number":10,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"123c6b36-a4f7-4a3a-8489-c54bd9b12ed5","block_type":"box","text":"III. Information on Trustees and Officers","page_number":10,"box":{"x":69,"y":105,"width":290,"height":9}},{"id":"cb19bcff-5be7-4217-b8d5-b2f3031c9a65","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thirteen of whom are not “interested persons” of","page_number":10,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"c0fdbf92-5b17-4439-af60-4ef050e55f00","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":10,"box":{"x":68,"y":143,"width":779,"height":11}},{"id":"39c2e5ab-4eb4-4e18-b1a9-57743c62fd76","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":10,"box":{"x":69,"y":158,"width":837,"height":11}},{"id":"48f81325-52a1-4d22-9a70-593ef2604c9a","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":10,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"d0c1866b-8a65-4980-982d-ecfc599cb3f7","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":10,"box":{"x":69,"y":188,"width":822,"height":11}},{"id":"df28086a-9e68-456f-ae1c-76477bfb0af3","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":10,"box":{"x":68,"y":203,"width":837,"height":12}},{"id":"036ff355-c0c1-4a5e-bacf-3f1d69979998","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":10,"box":{"x":70,"y":219,"width":335,"height":10}},{"id":"8db6b17d-5431-4135-9038-b31fb806d0d9","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board is an","page_number":10,"box":{"x":101,"y":241,"width":769,"height":11}},{"id":"ddeb8915-1ebc-4596-8496-1a1635d2d2ae","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":10,"box":{"x":70,"y":256,"width":827,"height":11}},{"id":"3737e710-6b2b-4551-8b0d-5f65e75aebcf","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":10,"box":{"x":70,"y":271,"width":821,"height":12}},{"id":"fa0ba408-713e-478b-ae86-abeaff8cbf73","block_type":"box","text":"Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":10,"box":{"x":69,"y":286,"width":835,"height":12}},{"id":"f1148299-51fc-4501-a22e-b36cd061ac57","block_type":"box","text":"is to preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":10,"box":{"x":70,"y":302,"width":830,"height":11}},{"id":"24f1523e-bf24-475b-8811-333783aa89e4","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee performs a similar role with respect to the","page_number":10,"box":{"x":68,"y":317,"width":789,"height":11}},{"id":"a64144a5-323a-45c7-97f7-5c91bc96ebfd","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions as may be","page_number":10,"box":{"x":69,"y":332,"width":810,"height":11}},{"id":"bd4171f2-14fe-4af9-83e5-90c26bf72159","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":10,"box":{"x":69,"y":347,"width":809,"height":11}},{"id":"a9c35848-7a3d-4105-ae9f-2dbd1e9456a8","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":10,"box":{"x":70,"y":362,"width":794,"height":11}},{"id":"6ce7a24c-d965-443a-99bb-7c6b1130acd4","block_type":"box","text":"regular meetings five times a year, and may hold special meetings if required before its next regular meeting. Each","page_number":10,"box":{"x":69,"y":377,"width":816,"height":12}},{"id":"66668d89-f1d1-4392-af1b-c1d940112709","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and reports","page_number":10,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"afee2080-48e6-4784-b563-99dc272a4b53","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":10,"box":{"x":70,"y":407,"width":811,"height":12}},{"id":"ae3ddb42-7cb0-4443-8ed8-0bd271e9dbb6","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":10,"box":{"x":68,"y":423,"width":809,"height":11}},{"id":"71a719a3-ad20-4359-a188-850ecf6d20e8","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":10,"box":{"x":69,"y":438,"width":825,"height":11}},{"id":"43aa467f-d24b-46ae-9628-7a4e9555b9dd","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":10,"box":{"x":69,"y":453,"width":441,"height":11}},{"id":"8c485e26-c44f-41ee-9812-f0b50dc798a8","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":10,"box":{"x":101,"y":475,"width":777,"height":12}},{"id":"a7df957d-a065-41fb-886f-f9b7a2e47833","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":10,"box":{"x":69,"y":491,"width":832,"height":11}},{"id":"5d223d01-8dd2-4098-9ef3-65eb689576b3","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s charter, and the Fund’s","page_number":10,"box":{"x":68,"y":506,"width":820,"height":11}},{"id":"18b9ad72-aeb7-4e7c-9073-a03dd51d9d62","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance, operations","page_number":10,"box":{"x":70,"y":521,"width":812,"height":11}},{"id":"fa62b613-9f2f-4380-b1dc-ed1b7e70889d","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":10,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"ee7474e5-33a6-43ab-a6d8-87d8c831f41a","block_type":"box","text":"the operations of the Fund.","page_number":10,"box":{"x":68,"y":551,"width":192,"height":11}},{"id":"403d3e48-b004-49b4-9a02-269c6e7f2bd9","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager or of sub-advisers or","page_number":10,"box":{"x":102,"y":574,"width":785,"height":11}},{"id":"3ebfebfd-c2f1-484b-b6f0-88a4dd6a76a5","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":10,"box":{"x":69,"y":589,"width":828,"height":11}},{"id":"0595158f-d757-41ee-81b6-353b63da5564","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":10,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"cec6d751-e419-4383-960c-c5dfdeaa0f8d","block_type":"box","text":"there are a number of risk management functions performed by the Manager and the sub-advisers or other service","page_number":10,"box":{"x":68,"y":619,"width":820,"height":11}},{"id":"2474e1eb-025e-4e13-8a13-7b595379a503","block_type":"box","text":"providers, as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight forms","page_number":10,"box":{"x":70,"y":634,"width":811,"height":12}},{"id":"7585fb65-9782-47f4-b59b-9744915ec268","block_type":"box","text":"part of the Board’s general oversight of the Fund and is addressed as part of various Board and Committee","page_number":10,"box":{"x":70,"y":649,"width":767,"height":12}},{"id":"61a0b08b-4d2e-442f-b3c4-8248ffc5c292","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":10,"box":{"x":69,"y":664,"width":815,"height":12}},{"id":"37707c0b-3148-4306-adce-2847399516d1","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":10,"box":{"x":70,"y":680,"width":803,"height":11}},{"id":"40c50eeb-a4f2-4d9e-8c9b-3289719ab88c","block_type":"box","text":"adviser or its affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s","page_number":10,"box":{"x":69,"y":695,"width":840,"height":11}},{"id":"a0d60809-a609-4479-9c79-96437345cc49","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":10,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"ca1f9356-b672-4937-828b-ddef8abf814f","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":10,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"08b978b8-eced-4474-9659-02e992e92146","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":10,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"b37b5df2-417f-40d3-8368-28cd5be14112","block_type":"box","text":"testing of the Fund’s compliance program and reports to the Board regarding compliance matters for the Fund and its","page_number":10,"box":{"x":68,"y":755,"width":840,"height":11}},{"id":"802bcb4f-8312-4e26-bb4b-87fe48a05293","block_type":"box","text":"service providers. The Independent Trustees have engaged independent legal counsel to assist them in performing","page_number":10,"box":{"x":69,"y":770,"width":822,"height":12}},{"id":"0b662494-9332-4f80-86a7-c72ae4e5b713","block_type":"box","text":"their oversight responsibilities.","page_number":10,"box":{"x":68,"y":786,"width":218,"height":11}},{"id":"2281bac5-2a57-4c0e-b0c9-3e365e0eef4f","block_type":"box","text":"Audit Committee.","page_number":10,"box":{"x":101,"y":808,"width":122,"height":9}},{"id":"3df01e3b-2645-4990-b2d7-80b2670e6555","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":10,"box":{"x":229,"y":808,"width":673,"height":11}},{"id":"20f006e0-75f6-40f2-8383-40772c8fd52b","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees.","page_number":10,"box":{"x":68,"y":823,"width":831,"height":11}},{"id":"28dffe80-5554-4af5-8178-a0a87b06be8d","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":10,"box":{"x":68,"y":838,"width":820,"height":11}},{"id":"00c07646-e0f6-4703-a98c-7c3a60df3811","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":10,"box":{"x":68,"y":853,"width":823,"height":12}},{"id":"01c2f2bf-f28e-481f-a06d-b2a8586c1fff","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":10,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"4e901aff-18f6-4659-9eaf-a170a48fa488","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":10,"box":{"x":70,"y":884,"width":825,"height":11}},{"id":"b4aacac3-3e45-4798-88b2-e96cc055361d","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":10,"box":{"x":70,"y":899,"width":807,"height":11}},{"id":"12de7acc-8de1-4f74-a2b7-71a5e57b0704","block_type":"box","text":"I-8","page_number":10,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"6a453632-1f8f-4049-a8bd-9b8cc51262a6","block_type":"box","text":"NM1026U-5981128-10/232","page_number":10,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"33854f46-5d36-47a8-926f-40efddcc8811","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":11,"box":{"x":68,"y":45,"width":781,"height":11}},{"id":"14271446-4467-4e8c-aba7-4876c509b58d","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":11,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"5a9c285e-0b2f-4579-935e-7f4f128921b3","block_type":"box","text":"regarding the accounting or financial reporting policies and practices of the Fund and the internal controls of the Fund","page_number":11,"box":{"x":69,"y":75,"width":838,"height":11}},{"id":"e7e1ab5d-109c-4b00-85d4-96a3cf7b9347","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":11,"box":{"x":69,"y":90,"width":825,"height":11}},{"id":"5da17d1d-ba9a-4a08-905e-1ec0cc1bbb7d","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":11,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"48e096d9-6b2c-45bc-af41-08fedf2624da","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":11,"box":{"x":70,"y":120,"width":815,"height":12}},{"id":"5be2d977-f9fc-4cbb-a4a6-248d7bbe1e27","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":11,"box":{"x":69,"y":135,"width":774,"height":12}},{"id":"01fa06b6-ca37-45c9-ab54-3bc589999bef","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":11,"box":{"x":69,"y":151,"width":815,"height":11}},{"id":"5a4ae125-de05-47df-ae76-b95ac4a18d7d","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":11,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"d98dc027-3848-4620-b420-82a4ba0f9e17","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written charter for the Audit Committee.","page_number":11,"box":{"x":69,"y":181,"width":812,"height":11}},{"id":"61563605-d379-4a66-af8c-c1b7f5a63325","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":11,"box":{"x":70,"y":196,"width":574,"height":11}},{"id":"53e28f9d-cea1-4d35-b9b6-588b4b9e3af6","block_type":"box","text":"Governance and Nominating Committee.","page_number":11,"box":{"x":102,"y":219,"width":286,"height":11}},{"id":"74df7aa1-7043-4d27-96e1-4ebd4a84d381","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":11,"box":{"x":394,"y":218,"width":464,"height":12}},{"id":"b75372aa-8c5d-42b3-9c1c-6128bc6475ed","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":11,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"44e4cd90-5b61-4583-bf1b-45d602453da5","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":11,"box":{"x":70,"y":249,"width":784,"height":11}},{"id":"98ebba7d-63e5-4f71-a77f-f180119b12d5","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":11,"box":{"x":69,"y":264,"width":803,"height":11}},{"id":"52023a9c-2c61-487e-9266-a349c1bbc58a","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":11,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"2fb6264e-2a60-426a-a7e8-fb2bb1100ad9","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":11,"box":{"x":70,"y":294,"width":828,"height":11}},{"id":"e284c0e7-ca2e-40d2-86bd-8a79ec26ee8c","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":11,"box":{"x":70,"y":309,"width":809,"height":11}},{"id":"f4ce5bd0-2a86-4557-bbdb-1e6f45242b30","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":11,"box":{"x":69,"y":325,"width":838,"height":11}},{"id":"8851c02c-29a0-4ff1-aec4-48027b690b83","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":11,"box":{"x":69,"y":340,"width":800,"height":10}},{"id":"dabe22e5-1311-4786-835f-556e959cc610","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":11,"box":{"x":70,"y":355,"width":813,"height":11}},{"id":"cc52e3ef-9cbc-443a-81bf-719c7b14f42e","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) undertake such other duties and responsibilities as may from","page_number":11,"box":{"x":69,"y":370,"width":829,"height":11}},{"id":"6fb076c7-22e7-4a91-8661-b6a4ea6834d0","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":11,"box":{"x":68,"y":385,"width":804,"height":11}},{"id":"9f5bb6bc-b2ee-4e9f-bef9-9a5daad56dc4","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":11,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"2a9e1c33-cb6e-400b-a4c4-6d18eb1f7b7e","block_type":"box","text":"Restated Code of Regulations (“Bylaws”), shareholders must follow certain procedures to nominate a person for","page_number":11,"box":{"x":70,"y":415,"width":801,"height":11}},{"id":"cc992627-024b-489d-97f4-04bb26159c4d","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":11,"box":{"x":69,"y":430,"width":799,"height":11}},{"id":"72f6e7d1-c6ca-4784-8643-b58c4266f557","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":11,"box":{"x":70,"y":445,"width":776,"height":11}},{"id":"3fde93aa-946b-45db-83ec-682931705dd3","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":11,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"faa99f0d-914a-4def-968b-25e4b31d5aaa","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":11,"box":{"x":68,"y":475,"width":812,"height":12}},{"id":"62bbc0ab-0d39-4f0a-a06e-0fe9019654e6","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include certain","page_number":11,"box":{"x":69,"y":491,"width":823,"height":11}},{"id":"5ec87e6a-3d19-4eb9-b432-181d9dc46342","block_type":"box","text":"information about the shareholder and the nominee, as well as certain other information, including a written consent","page_number":11,"box":{"x":70,"y":506,"width":832,"height":11}},{"id":"0e044fe0-1c27-43d1-bf14-2fe5015471e3","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":11,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"6b01a7ac-8593-4ceb-b7d7-212a522d4f13","block_type":"box","text":"has adopted a written charter for the Governance Committee. During the fiscal year ended May 31, 2026, the","page_number":11,"box":{"x":69,"y":536,"width":783,"height":11}},{"id":"bd19c953-f9b1-4fb2-bcb3-37c6cee39eb9","block_type":"box","text":"Governance Committee met ten times.","page_number":11,"box":{"x":69,"y":551,"width":274,"height":9}},{"id":"e288ba3d-9bdb-46bd-93d8-918d602a5354","block_type":"box","text":"Compliance Committee.","page_number":11,"box":{"x":102,"y":574,"width":168,"height":11}},{"id":"4365a842-ff8d-4edf-81c6-e638bddc56ca","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":11,"box":{"x":276,"y":574,"width":629,"height":11}},{"id":"b3f324dc-222f-41c0-8b8b-5533bdd0d7ad","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":11,"box":{"x":68,"y":589,"width":828,"height":11}},{"id":"c62e5aed-4ca9-4c91-8db4-cdde0ddd4c9c","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":11,"box":{"x":68,"y":604,"width":771,"height":11}},{"id":"1aa34c81-7aee-4de2-a189-c0f2b66abd08","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of","page_number":11,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"9294f6d9-afcd-4452-86be-069a0b39b3d8","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-party service providers. The Compliance Committee’s","page_number":11,"box":{"x":70,"y":634,"width":754,"height":11}},{"id":"77b5f19c-7dc5-466f-8745-736db375c88a","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":11,"box":{"x":69,"y":649,"width":834,"height":11}},{"id":"86ff45e9-20f9-4d5d-b540-f9d7ff2e640a","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":11,"box":{"x":69,"y":664,"width":815,"height":12}},{"id":"c86124dd-43e2-4488-bc1b-5e2e04d8ee3e","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":11,"box":{"x":69,"y":680,"width":785,"height":11}},{"id":"5804044e-a6d6-45c6-b08c-65fc2bde6791","block_type":"box","text":"reports from, oversee the annual performance review of, and make certain recommendations and determinations","page_number":11,"box":{"x":69,"y":695,"width":811,"height":11}},{"id":"02f59626-ac1e-4927-8f45-ad09a2aa9d8c","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":11,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"27e42d6c-f02b-4291-b18d-0fc624c3c9de","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":11,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"9487c256-7992-4053-83a3-98e30edf13b4","block_type":"box","text":"and (4) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":11,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"e9832200-0b59-411f-b5d0-c28d88f61d67","block_type":"box","text":"Compliance Committee. The Board has adopted a written charter for the Compliance Committee. During the fiscal","page_number":11,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"c86a07c0-7127-4eec-a6e5-a17d8f89618d","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met four times.","page_number":11,"box":{"x":68,"y":770,"width":502,"height":11}},{"id":"037b6991-cd97-4ba8-a334-05903c7ae65c","block_type":"box","text":"Per formance Oversight Committee.","page_number":11,"box":{"x":102,"y":793,"width":248,"height":11}},{"id":"5b42fdb3-fbdc-46c5-94f3-aac423335120","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":11,"box":{"x":356,"y":793,"width":531,"height":11}},{"id":"696fbaac-9c58-4d8a-8eb2-995df885c1a0","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":11,"box":{"x":69,"y":808,"width":829,"height":11}},{"id":"4314f273-94c1-46ff-907b-4ade5c299062","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Performance Oversight Committee’s purpose is","page_number":11,"box":{"x":69,"y":823,"width":830,"height":12}},{"id":"52962e0a-9a70-4692-a779-a5bb1d838bd9","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment performance relative to its agreed","page_number":11,"box":{"x":68,"y":838,"width":832,"height":12}},{"id":"b0e3d34c-604f-49c7-aef0-5429aadf4fd8","block_type":"box","text":"upon performance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":11,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"d3bffd43-3010-4db9-a21c-e1cff79f9cd3","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":11,"box":{"x":69,"y":869,"width":782,"height":11}},{"id":"cbe9f8ad-2ba5-47f2-9279-dc8aa36a3bac","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":11,"box":{"x":70,"y":884,"width":829,"height":11}},{"id":"1d5eb1f5-5d5f-4afa-9939-b12701b26673","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":11,"box":{"x":69,"y":899,"width":816,"height":11}},{"id":"0c9d9f80-b4c3-42e1-9572-44ad28b531c7","block_type":"box","text":"I-9","page_number":11,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"bb6c903f-2c83-4212-928e-ecec5b14dab5","block_type":"box","text":"NM1026U-5981128-11/232","page_number":11,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"aa6a090b-ce7a-4d71-a94f-1f8a4bc47692","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":12,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"bb117191-98a3-466d-9c23-f195b774168c","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":12,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"ee5a6809-096b-4dfd-a3cd-7e14b34ad8a1","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":12,"box":{"x":68,"y":75,"width":811,"height":11}},{"id":"f2c0b0f0-0fb8-4b8a-bdec-6b2ce1aec259","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":12,"box":{"x":69,"y":90,"width":757,"height":11}},{"id":"03c59fed-b2ee-48d7-95dc-89fa6877847d","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":12,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"7e67a795-7ab3-4fb2-b5b7-3070a5213707","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":12,"box":{"x":68,"y":120,"width":800,"height":12}},{"id":"a4e4f588-4567-4f54-93a7-928d494c0ea8","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":12,"box":{"x":69,"y":135,"width":780,"height":12}},{"id":"4eddf3ad-032a-465b-9bb7-fe6aa1ec7194","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year","page_number":12,"box":{"x":69,"y":150,"width":838,"height":12}},{"id":"54398d0b-67f2-4047-abbc-d1406911c305","block_type":"box","text":"ended May 31, 2026, the Performance Oversight Committee met five times.","page_number":12,"box":{"x":69,"y":166,"width":544,"height":11}},{"id":"3806afb8-16ce-4e65-94c4-8f2eb7813dd1","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":12,"box":{"x":101,"y":188,"width":186,"height":11}},{"id":"02b42b17-c8c5-458a-b5b7-69c9792b1361","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":12,"box":{"x":293,"y":188,"width":598,"height":11}},{"id":"ec6a740d-f9a8-44d0-b216-ad05c0805912","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":12,"box":{"x":70,"y":203,"width":817,"height":11}},{"id":"6a3ae4ed-e4b5-4e8c-a6ce-421eb7ac19e0","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":12,"box":{"x":69,"y":218,"width":795,"height":12}},{"id":"5539883b-6c21-4698-bb82-aeaaf032a340","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":12,"box":{"x":69,"y":234,"width":788,"height":11}},{"id":"97ff251a-7331-41e7-9ca5-7d2cfc36b172","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":12,"box":{"x":69,"y":249,"width":813,"height":11}},{"id":"121f6d0d-39dc-4548-833b-227cf1435778","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":12,"box":{"x":68,"y":264,"width":816,"height":11}},{"id":"9d40d6d5-c539-48fd-b45e-249130bcc8c1","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":12,"box":{"x":68,"y":279,"width":575,"height":11}},{"id":"677bf972-a70b-45ef-9055-325ff9f3a4b1","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":12,"box":{"x":101,"y":302,"width":771,"height":11}},{"id":"57531918-1753-4c3d-901b-9ffdd954912e","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":12,"box":{"x":69,"y":317,"width":827,"height":11}},{"id":"88db5162-cdd8-462e-a039-9fc5849e3355","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":12,"box":{"x":69,"y":332,"width":830,"height":11}},{"id":"2d33f12e-9b61-480d-ac9f-4063fce2523a","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":12,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"7667074f-b461-4a97-8c97-36ed4799ce98","block_type":"box","text":"in determining that a particular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":12,"box":{"x":70,"y":362,"width":807,"height":11}},{"id":"0b82cd72-da2e-4b7a-badc-920502be5800","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":12,"box":{"x":70,"y":377,"width":787,"height":12}},{"id":"774402c5-2782-4b12-972b-25a75cacb058","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":12,"box":{"x":69,"y":392,"width":805,"height":12}},{"id":"85399c85-cffb-47d7-a5a2-6e9de19b2ce0","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":12,"box":{"x":68,"y":407,"width":794,"height":12}},{"id":"3b5c50ab-65ce-4fb3-a1c3-a9f528aa25d5","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":12,"box":{"x":68,"y":423,"width":829,"height":11}},{"id":"9882c613-b9c3-460d-9996-d5bb326dec79","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":12,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"2625af02-917f-473f-84cc-0f98ca90a726","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":12,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"20e5b705-6aa9-410c-bb2f-ec342433544b","block_type":"box","text":"business judgment in the performance of their duties as Trustees.","page_number":12,"box":{"x":69,"y":468,"width":473,"height":11}},{"id":"421be48e-e3fc-4b02-9634-fd59ce5de5ef","block_type":"box","text":"Each Trustee’s ability to perform his or her duties effectively is evidenced by his or her educational background","page_number":12,"box":{"x":102,"y":491,"width":792,"height":11}},{"id":"4c776b4e-cf14-4b92-b5b8-2e0ead47a1cf","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":12,"box":{"x":69,"y":506,"width":807,"height":11}},{"id":"7dcbe12c-a6c4-4b17-be9d-9c136a523800","block_type":"box","text":"board member of the Trust and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":12,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"dc4c5db1-ed12-4659-82b9-2551dfd26412","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":12,"box":{"x":70,"y":536,"width":759,"height":11}},{"id":"50e8efae-f7ff-447b-bacf-e653ae6bcce3","block_type":"box","text":"participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":12,"box":{"x":70,"y":551,"width":685,"height":11}},{"id":"227ad7c9-3fbf-4620-a191-98f4a5cdd3fc","block_type":"box","text":"ad hoc","page_number":12,"box":{"x":762,"y":551,"width":47,"height":9}},{"id":"93dd2f12-fca6-41d4-baf8-576c677abff9","block_type":"box","text":"committees","page_number":12,"box":{"x":814,"y":551,"width":82,"height":9}},{"id":"ee6ea27e-ca11-4165-ae96-2e5d1b0ab0bb","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":12,"box":{"x":68,"y":566,"width":395,"height":11}},{"id":"843d5ced-9530-4ec4-82e4-6296a58c40ed","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":12,"box":{"x":101,"y":589,"width":751,"height":11}},{"id":"6a8bf2a0-d0e6-4f13-b61b-b4ad68d65b42","block_type":"box","text":"support the conclusion that each Trustee should serve on the Board.","page_number":12,"box":{"x":69,"y":604,"width":492,"height":11}},{"id":"f21b2036-d099-4b83-91d0-05f9ea7f139e","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":12,"box":{"x":68,"y":632,"width":409,"height":9}},{"id":"9c7e95c0-7233-46c4-bf00-fc469fb12fee","block_type":"box","text":"Independent Trustees","page_number":12,"box":{"x":70,"y":649,"width":154,"height":11}},{"id":"5f4272b1-e341-4049-b8c0-0036f2c8c264","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":12,"box":{"x":69,"y":664,"width":781,"height":11}},{"id":"f1b1c89a-4a62-445d-b03e-6e983c267155","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":12,"box":{"x":265,"y":679,"width":604,"height":11}},{"id":"ccad0111-414a-4da4-b502-5170ad5fad64","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":12,"box":{"x":265,"y":694,"width":623,"height":11}},{"id":"82669658-2d66-478a-9c27-e5af1104abb8","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":12,"box":{"x":265,"y":709,"width":637,"height":11}},{"id":"6799a562-47fd-4330-b8a6-a14d9a54e907","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":12,"box":{"x":265,"y":724,"width":631,"height":12}},{"id":"82941810-99de-4f53-8f76-de06aaa46a7c","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":12,"box":{"x":264,"y":739,"width":626,"height":11}},{"id":"503c3b0d-4dc0-4c45-842d-184ce9401958","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":12,"box":{"x":265,"y":755,"width":639,"height":11}},{"id":"2cc1b2e3-1646-4f8f-a59c-ce3cdb20f940","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":12,"box":{"x":264,"y":770,"width":637,"height":11}},{"id":"faef5415-ab40-47cb-8783-10132791ee5f","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":12,"box":{"x":265,"y":785,"width":586,"height":11}},{"id":"83cd62bc-b0de-4efd-b41b-212a37487931","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":12,"box":{"x":265,"y":800,"width":640,"height":11}},{"id":"567ad0a0-cdd8-44a8-adc8-9c89e82182fa","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":12,"box":{"x":265,"y":815,"width":389,"height":11}},{"id":"6902dbec-8cfd-414c-a358-0525005410d5","block_type":"box","text":"I-10","page_number":12,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"7f503f8a-afcf-4147-8e62-1d6b314b5efb","block_type":"box","text":"NM1026U-5981128-12/232","page_number":12,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"13523344-5823-46cf-becf-0275d48e0d41","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":13,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"95d4d40f-4b63-407d-86e2-939cd608cf22","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":13,"box":{"x":69,"y":65,"width":806,"height":12}},{"id":"a9ccadcf-a06e-46fc-988c-1105b8ea302e","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":13,"box":{"x":265,"y":81,"width":604,"height":11}},{"id":"074f5db6-953d-4105-98ad-4325f360f85a","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":13,"box":{"x":265,"y":96,"width":632,"height":11}},{"id":"84850618-db5f-426c-8f7d-bc75eae7cc10","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":13,"box":{"x":265,"y":111,"width":562,"height":9}},{"id":"08e73792-c212-4a57-861a-7d395c92639d","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":13,"box":{"x":265,"y":126,"width":616,"height":10}},{"id":"73e9148f-ad89-4b15-8a1a-f2676f21358a","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":13,"box":{"x":264,"y":141,"width":591,"height":11}},{"id":"b272f175-9114-4f1c-8d12-5a414c8948c6","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":13,"box":{"x":265,"y":156,"width":641,"height":11}},{"id":"25d25207-6cfc-4b0d-a9ee-d7bd81c53ea0","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":13,"box":{"x":264,"y":171,"width":638,"height":12}},{"id":"ea247b14-a30e-4447-baba-263fa609a3f7","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":13,"box":{"x":265,"y":186,"width":584,"height":12}},{"id":"7808553b-2271-4ad2-9f1a-a1aaebc31c9a","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":13,"box":{"x":265,"y":201,"width":630,"height":12}},{"id":"8ebed2c2-9cfc-4f89-bead-0f3a457da978","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":13,"box":{"x":265,"y":217,"width":634,"height":11}},{"id":"fb8cdb9c-b51c-43e1-b28b-8d4723dc2c95","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":13,"box":{"x":265,"y":232,"width":599,"height":11}},{"id":"16a8e01e-6bce-455c-b3c2-f65435d82337","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":13,"box":{"x":265,"y":247,"width":407,"height":11}},{"id":"65ae6559-234c-4f81-a216-78314bbdabc0","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":13,"box":{"x":69,"y":269,"width":837,"height":12}},{"id":"c6c30600-6831-4dd9-b62e-708bb4c8ed13","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":13,"box":{"x":265,"y":285,"width":638,"height":11}},{"id":"073d60c9-aadd-42e8-bd79-86e92b37e831","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":13,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"bae9f561-4923-411c-8ff4-5e4adeeb504d","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":13,"box":{"x":265,"y":314,"width":601,"height":12}},{"id":"1f330314-0c23-4668-9ab1-198b59539de2","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":13,"box":{"x":265,"y":330,"width":595,"height":11}},{"id":"3be9eeb6-8159-4eaa-9b51-7b83f71f5dc9","block_type":"box","text":"perspective on the markets and the economy.","page_number":13,"box":{"x":265,"y":345,"width":323,"height":11}},{"id":"26b21c90-e619-4643-8e09-61fba96860b7","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":13,"box":{"x":70,"y":368,"width":798,"height":11}},{"id":"44067d95-7d72-4ed8-a687-aac30273f41f","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":13,"box":{"x":265,"y":383,"width":631,"height":11}},{"id":"03c7ff40-c8dd-4f17-9f0b-adfb2c7e54cf","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":13,"box":{"x":265,"y":398,"width":633,"height":11}},{"id":"a2d35447-88f3-4ee3-876e-c32d42eb3e6c","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":13,"box":{"x":265,"y":413,"width":628,"height":11}},{"id":"9dd9c154-ad82-496f-afa6-927e03ff5666","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":13,"box":{"x":265,"y":428,"width":596,"height":12}},{"id":"1c6c08a0-2921-410d-ab6a-76644ad3c327","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":13,"box":{"x":265,"y":443,"width":616,"height":12}},{"id":"0b448d50-fb20-472e-b77c-faa7a45dceb9","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":13,"box":{"x":264,"y":458,"width":368,"height":11}},{"id":"14828233-4ef5-47aa-b714-b5861f28caea","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":13,"box":{"x":69,"y":481,"width":777,"height":11}},{"id":"6d2ee660-ac9e-4b11-9041-a5739f2e0b91","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":13,"box":{"x":265,"y":496,"width":613,"height":12}},{"id":"78ea4b8b-dbb3-4fdc-bd0c-07ec60a6d258","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":13,"box":{"x":265,"y":511,"width":563,"height":12}},{"id":"bb9268b3-71f2-4788-ad8c-34b0aec783dc","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":13,"box":{"x":265,"y":527,"width":607,"height":11}},{"id":"fbed9f66-d558-4f26-b4ee-1607276d4170","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":13,"box":{"x":265,"y":542,"width":638,"height":11}},{"id":"a079311c-8c69-41b3-810d-b7500a9cd475","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":13,"box":{"x":265,"y":557,"width":626,"height":11}},{"id":"18e6b886-fd20-4362-9d4d-0485e64886a3","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":13,"box":{"x":265,"y":572,"width":563,"height":11}},{"id":"3219529e-053a-482e-afc3-1e2757669a7a","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Trustees prior to becoming an","page_number":13,"box":{"x":265,"y":587,"width":625,"height":11}},{"id":"6ac0e944-47f6-4234-a127-3ad1c9581b19","block_type":"box","text":"Independent Trustee. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":13,"box":{"x":265,"y":602,"width":625,"height":11}},{"id":"c579e000-01e7-468e-a5c6-58df12a2d63e","block_type":"box","text":"audit committee financial expert, as such term is defined in the applicable Commission","page_number":13,"box":{"x":265,"y":617,"width":623,"height":11}},{"id":"0f7dc99b-3e88-4d27-a891-6769e3dc8e6d","block_type":"box","text":"rules.","page_number":13,"box":{"x":265,"y":633,"width":38,"height":8}},{"id":"44b8860d-108b-4890-a2f2-df931d453cb7","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":13,"box":{"x":70,"y":655,"width":806,"height":11}},{"id":"66e84380-e07e-499b-bcc0-cf947bd1b6de","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":13,"box":{"x":264,"y":670,"width":584,"height":11}},{"id":"d547ed16-d3ae-4697-a452-72f5a5db2356","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":13,"box":{"x":265,"y":686,"width":622,"height":11}},{"id":"a3388735-d683-47c7-b37e-5b127697b162","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":13,"box":{"x":265,"y":700,"width":638,"height":12}},{"id":"7fe3a1dd-1598-404f-88f0-4ce74e2fbf09","block_type":"box","text":"and expertise in financial reporting, accounting, auditing, risk management, and","page_number":13,"box":{"x":265,"y":715,"width":570,"height":12}},{"id":"38c3b80a-df8b-455a-9a1c-88e1f4bb1d2d","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":13,"box":{"x":265,"y":731,"width":642,"height":11}},{"id":"8421d219-18ff-417b-9d0b-a19effc1f604","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":13,"box":{"x":265,"y":746,"width":626,"height":11}},{"id":"99c1aed0-8256-43ac-b833-78369e5703ea","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":13,"box":{"x":265,"y":761,"width":630,"height":11}},{"id":"0c9eaeb6-f19f-497e-845a-14ef604cbc98","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":13,"box":{"x":265,"y":776,"width":602,"height":11}},{"id":"f2e6cc80-377b-4bec-8bc8-31571c836474","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":13,"box":{"x":264,"y":791,"width":643,"height":11}},{"id":"0524ea58-0cd1-4a99-9596-c6bcd1562027","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":13,"box":{"x":264,"y":806,"width":639,"height":11}},{"id":"7dde38d2-4144-4c90-a541-e6478d02b934","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":13,"box":{"x":264,"y":821,"width":641,"height":11}},{"id":"04744a7c-83b3-4c8e-b25a-a26775d715e0","block_type":"box","text":"applicable Commission rules.","page_number":13,"box":{"x":265,"y":837,"width":208,"height":10}},{"id":"f73735cb-7a4c-42e3-8bda-2a6884816143","block_type":"box","text":"I-11","page_number":13,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"8efec373-9206-4d08-8a95-e5bbb69efd1c","block_type":"box","text":"NM1026U-5981128-13/232","page_number":13,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dff87c35-51b5-43fa-946a-b84efbe231e0","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":14,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"af9d0dfa-9d7d-4b1b-9c1f-f59d17d0738d","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":14,"box":{"x":69,"y":65,"width":769,"height":12}},{"id":"055503d9-4838-48fc-8085-9840b7a1593a","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":14,"box":{"x":265,"y":81,"width":621,"height":11}},{"id":"730f332b-f8a6-4f0a-9ae5-76a33c430804","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":14,"box":{"x":265,"y":96,"width":599,"height":11}},{"id":"8ad8f859-cddb-4d83-8c20-19af1a1afd2a","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":14,"box":{"x":265,"y":111,"width":641,"height":11}},{"id":"de25c480-dec3-49bd-afc8-b20c46bafb11","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":14,"box":{"x":264,"y":126,"width":602,"height":11}},{"id":"23a5bea7-6b6d-4a79-b661-f898636f40fc","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":14,"box":{"x":264,"y":141,"width":617,"height":11}},{"id":"618cdf87-c13e-475c-a565-d0e240397286","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":14,"box":{"x":265,"y":156,"width":629,"height":11}},{"id":"0364928a-49cb-4d69-9ab9-c2f0cd783615","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":14,"box":{"x":264,"y":171,"width":628,"height":11}},{"id":"b68dba18-105f-403b-8e16-ed640d388028","block_type":"box","text":"articles and books on these topics.","page_number":14,"box":{"x":265,"y":187,"width":251,"height":10}},{"id":"e0a5a98b-dedf-46cc-ae6f-8518c741d896","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":14,"box":{"x":70,"y":209,"width":764,"height":11}},{"id":"a46b9157-95ca-4593-8943-ef99b1c6d6ce","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":14,"box":{"x":265,"y":224,"width":642,"height":11}},{"id":"da46cb35-0779-4021-aae4-aa9cc68cee4c","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":14,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"ed7930f4-3675-4c10-bc21-e29044eb7492","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":14,"box":{"x":265,"y":254,"width":603,"height":12}},{"id":"b3ff2950-f912-42dc-91e7-47506eae0cf4","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":14,"box":{"x":265,"y":269,"width":629,"height":12}},{"id":"c43a253e-f0fc-4377-b6b9-60ac1534e4d7","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":14,"box":{"x":70,"y":292,"width":804,"height":11}},{"id":"32d82bc6-ce16-434b-816f-04339e13199e","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":14,"box":{"x":265,"y":307,"width":552,"height":11}},{"id":"f7274c06-ddc5-471e-87a3-390dbbc49514","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":14,"box":{"x":265,"y":322,"width":636,"height":12}},{"id":"a134f118-9207-4918-8926-05d3c09726bf","block_type":"box","text":"2009. 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In addition, Ms. Richards served as a member","page_number":14,"box":{"x":265,"y":474,"width":627,"height":11}},{"id":"e4e889d7-e7b2-4e0a-9f52-21e00c0f9604","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":14,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"47209b6a-bbda-41fb-83fc-b7dad39f487b","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":14,"box":{"x":265,"y":504,"width":607,"height":11}},{"id":"f1bc3be1-8ce0-4e00-a717-21bf260baa17","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":14,"box":{"x":265,"y":519,"width":615,"height":11}},{"id":"3af282c5-3fac-4463-9754-8d4e6926c78d","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. 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In addition, Ms. Richards serves as a","page_number":14,"box":{"x":265,"y":595,"width":628,"height":11}},{"id":"9eaebd3e-856b-4468-bd8a-4c298a802de0","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":14,"box":{"x":265,"y":610,"width":460,"height":11}},{"id":"bf584a6c-3ee9-4e48-aae3-93c757a216e0","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":14,"box":{"x":70,"y":632,"width":818,"height":12}},{"id":"94ec5774-e937-4e77-ba83-dd8a553d7442","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":14,"box":{"x":264,"y":647,"width":603,"height":12}},{"id":"b5c565d8-fdfc-4e99-91d2-fe02a9582008","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":14,"box":{"x":265,"y":663,"width":606,"height":11}},{"id":"65ad86e4-313c-476f-8ac2-6533bf1fe4bc","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":14,"box":{"x":265,"y":678,"width":608,"height":9}},{"id":"2da47afd-8a6a-4b0d-a1fc-4b61be9c45ac","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":14,"box":{"x":265,"y":693,"width":626,"height":11}},{"id":"2a0750b4-6236-498d-b90e-e747ae3950f4","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":14,"box":{"x":265,"y":708,"width":591,"height":11}},{"id":"8f880919-0f32-4516-acf8-5f25e665e327","block_type":"box","text":"various private and non-profit boards.","page_number":14,"box":{"x":264,"y":723,"width":265,"height":11}},{"id":"b3617a3d-d4ee-478f-829d-64a09579446e","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":14,"box":{"x":70,"y":746,"width":833,"height":11}},{"id":"297d2b56-a5e7-4d65-8544-27df40951ee2","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":14,"box":{"x":265,"y":761,"width":638,"height":11}},{"id":"81096f7b-bfdd-4ad8-8636-654178e7b121","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":14,"box":{"x":265,"y":776,"width":608,"height":11}},{"id":"e839b739-87cd-4251-b7d6-d04f01808fd8","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":14,"box":{"x":264,"y":791,"width":645,"height":11}},{"id":"608d13d6-abaa-4730-a136-3a01c151800b","block_type":"box","text":"firm’s executive committee. 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These positions","page_number":14,"box":{"x":265,"y":852,"width":610,"height":11}},{"id":"7b312cc4-7133-4735-a044-5a3a18b15809","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":14,"box":{"x":265,"y":867,"width":642,"height":11}},{"id":"be5406fe-f8af-4877-b2cd-1171f9044283","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":14,"box":{"x":265,"y":882,"width":583,"height":11}},{"id":"2a2974cd-3aef-48da-9294-2a93170c5b47","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":14,"box":{"x":264,"y":897,"width":369,"height":11}},{"id":"8fb0d55e-1eb7-47af-bd81-1aa2dc87085c","block_type":"box","text":"I-12","page_number":14,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b3da9449-c06c-432f-8228-8b686d06fdf2","block_type":"box","text":"NM1026U-5981128-14/232","page_number":14,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5fd67114-83b1-4668-a1df-1c0dda78c058","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":15,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"5f07c318-cd50-4e31-94b3-65655429d88d","block_type":"box","text":"Kenneth L. Urish Kenneth L. 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Stern* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":20,"box":{"x":79,"y":360,"width":503,"height":9}},{"id":"92c3ebcd-e5fb-44e8-88dd-b426feaa8244","block_type":"box","text":"None None","page_number":20,"box":{"x":659,"y":360,"width":199,"height":9}},{"id":"e3754859-0cd0-461a-874d-0f5a7a8d4945","block_type":"box","text":"Kenneth L. Urish","page_number":20,"box":{"x":79,"y":376,"width":117,"height":8}},{"id":"17f125db-7de7-4f1d-9ba3-0e761d3b81e5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 -","page_number":20,"box":{"x":205,"y":375,"width":451,"height":10}},{"id":"6c3dee15-3696-42f6-9e32-320a4528368e","block_type":"box","text":"$10,000 Over $100,000","page_number":20,"box":{"x":662,"y":375,"width":232,"height":11}},{"id":"ab91a4dc-9f24-4e76-84db-c49fa5caf3b8","block_type":"box","text":"Claire A. Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over","page_number":20,"box":{"x":79,"y":391,"width":574,"height":8}},{"id":"0b7ccb4c-279a-40c8-a7f3-5795f28066d3","block_type":"box","text":"$100,000 Over $100,000","page_number":20,"box":{"x":659,"y":390,"width":235,"height":11}},{"id":"4cbb6f43-253c-4b06-ab2b-f4472443b0ec","block_type":"box","text":"Interested Trustees","page_number":20,"box":{"x":70,"y":406,"width":138,"height":9}},{"id":"8c9ca461-f577-4a3a-a0b7-c9260246b7d9","block_type":"box","text":"Robert Fairbairn","page_number":20,"box":{"x":79,"y":421,"width":113,"height":9}},{"id":"095cc6be-ea62-44a5-8321-3ad0b4276fd1","block_type":"box","text":"................................................","page_number":20,"box":{"x":197,"y":428,"width":385,"height":2}},{"id":"4b009161-0689-4bb0-ab67-9e39fa33f1fe","block_type":"box","text":"None Over $100,000","page_number":20,"box":{"x":659,"y":420,"width":235,"height":11}},{"id":"e13e60d9-01ae-4434-aa0a-b093db80b439","block_type":"box","text":"John M. 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As of December 31, 2025","page_number":20,"box":{"x":69,"y":496,"width":819,"height":12}},{"id":"4457e466-c29e-409f-b111-21038aa77063","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":20,"box":{"x":69,"y":511,"width":839,"height":12}},{"id":"5fae6284-5133-44a5-b4f4-69fcff7290ca","block_type":"box","text":"their immediate family members owned beneficially or of record any securities of the Fund’s investment adviser, sub","page_number":20,"box":{"x":68,"y":526,"width":834,"height":12}},{"id":"c8d3449d-9ac1-41f8-916d-cf893544d909","block_type":"box","text":"adviser, principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control","page_number":20,"box":{"x":69,"y":542,"width":820,"height":11}},{"id":"8500c3a0-044c-41a1-975e-1c14c783876f","block_type":"box","text":"with such entities.","page_number":20,"box":{"x":68,"y":557,"width":129,"height":9}},{"id":"835e294c-a4d9-4885-919c-66766a3b9091","block_type":"box","text":"Compensation of Trustees","page_number":20,"box":{"x":69,"y":587,"width":190,"height":11}},{"id":"c5efb68b-8270-4e2f-b9ee-20a3e148c788","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":20,"box":{"x":102,"y":609,"width":791,"height":12}},{"id":"3764aab4-5f51-4ba5-9018-82b458fc626a","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":20,"box":{"x":68,"y":625,"width":810,"height":11}},{"id":"a1ded788-67a7-49c6-883e-0485c8eb0159","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":20,"box":{"x":70,"y":639,"width":838,"height":12}},{"id":"4b61329a-6290-4b45-965e-2086c30b94d2","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":20,"box":{"x":69,"y":655,"width":807,"height":11}},{"id":"3ad36a14-a161-4643-aba3-7ba98d3dfd46","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":20,"box":{"x":69,"y":670,"width":791,"height":11}},{"id":"6ff431f9-fb35-4501-bf58-26c6941708bb","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":20,"box":{"x":68,"y":685,"width":786,"height":12}},{"id":"04677648-e8b5-4275-adf4-f9e142b5601e","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":20,"box":{"x":69,"y":700,"width":769,"height":12}},{"id":"d1888d67-7148-4c03-a7f0-fc7293385e89","block_type":"box","text":"Committee and Performance Oversight Committee are paid as compensation an additional annual retainer of","page_number":20,"box":{"x":69,"y":715,"width":778,"height":12}},{"id":"bc30c0f9-4de2-47b4-a4ed-7c6432ecd20f","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":20,"box":{"x":69,"y":730,"width":689,"height":12}},{"id":"bd164207-70ce-48e1-99ae-9567f05333b8","block_type":"box","text":"The following table sets forth the compensation the Trust paid to the Trustees, on behalf of the Fund, for the","page_number":20,"box":{"x":101,"y":753,"width":776,"height":12}},{"id":"52708b2f-4ca8-4630-9da6-83f53de1ec9f","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":20,"box":{"x":68,"y":768,"width":841,"height":12}},{"id":"6fd47d08-ba4c-4eef-ad9e-2f0d69c5c320","block_type":"box","text":"calendar year ended December 31, 2025.","page_number":20,"box":{"x":69,"y":784,"width":298,"height":11}},{"id":"99f8ca8f-eabf-4083-a0dd-e9e1bd6bbe36","block_type":"box","text":"Name","page_number":20,"box":{"x":69,"y":842,"width":32,"height":7}},{"id":"12aaf413-905e-4847-aca5-c0b74eac0e33","block_type":"box","text":"Compensation","page_number":20,"box":{"x":516,"y":832,"width":83,"height":9}},{"id":"04b9c33d-9fe8-47e1-8ccd-728f1ee9b1ec","block_type":"box","text":"from the Fund","page_number":20,"box":{"x":517,"y":842,"width":81,"height":7}},{"id":"8b37e516-7639-427d-942d-9100717c245d","block_type":"box","text":"Estimated Annual","page_number":20,"box":{"x":630,"y":822,"width":101,"height":7}},{"id":"05a27844-6381-451d-a9e7-212dcf6ee81c","block_type":"box","text":"Benefits upon","page_number":20,"box":{"x":641,"y":832,"width":79,"height":9}},{"id":"e38e5f4a-963c-49a8-aa7b-20aa55ae67f5","block_type":"box","text":"Retirement","page_number":20,"box":{"x":648,"y":842,"width":65,"height":7}},{"id":"af670b3f-c021-4eaa-85c2-03ed8d007b3e","block_type":"box","text":"Aggregate Compensation","page_number":20,"box":{"x":761,"y":812,"width":148,"height":9}},{"id":"09e0206c-452d-42f4-a45f-03e037668dda","block_type":"box","text":"from the Fund and","page_number":20,"box":{"x":782,"y":822,"width":106,"height":7}},{"id":"752693f1-625d-488e-b326-a8cecc0dad70","block_type":"box","text":"Other BlackRock","page_number":20,"box":{"x":785,"y":832,"width":102,"height":7}},{"id":"63104dc0-68dd-46e9-9832-7e2daca26ba2","block_type":"box","text":"Advised Funds","page_number":20,"box":{"x":791,"y":842,"width":84,"height":7}},{"id":"3241e0c0-7391-4c4d-a56d-dd1213cb9f87","block_type":"box","text":"1","page_number":20,"box":{"x":876,"y":842,"width":3,"height":4}},{"id":"01ffc251-a90c-43df-81c0-9bdc2a2872f5","block_type":"box","text":"Independent Trustees","page_number":20,"box":{"x":70,"y":860,"width":154,"height":11}},{"id":"e6b79835-5ac4-4eee-a058-9823431f5294","block_type":"box","text":"Christopher J. Ailman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,069 None $445,000","page_number":20,"box":{"x":79,"y":874,"width":792,"height":12}},{"id":"474ea6ea-630e-482e-ba77-cc478f3a470f","block_type":"box","text":"Susan J. Carter","page_number":20,"box":{"x":79,"y":890,"width":110,"height":9}},{"id":"cff9ddf6-4da5-408e-a892-163ca981d27d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,069","page_number":20,"box":{"x":198,"y":889,"width":386,"height":11}},{"id":"b152b336-05e8-40cf-8a44-df4d25622710","block_type":"box","text":"None $445,000","page_number":20,"box":{"x":663,"y":889,"width":208,"height":11}},{"id":"112e7080-1611-4f16-94bd-84a621682480","block_type":"box","text":"Collette Chilton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,069","page_number":20,"box":{"x":79,"y":904,"width":505,"height":12}},{"id":"b9f5bcf1-6dd1-4f23-812b-d4d629749ab1","block_type":"box","text":"None $445,000","page_number":20,"box":{"x":663,"y":904,"width":208,"height":12}},{"id":"9e4f5091-35ba-4fdf-b17f-79ebbcd8af06","block_type":"box","text":"I-18","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"92901577-f63b-4317-8238-502b2918d962","block_type":"box","text":"NM1026U-5981128-20/232","page_number":20,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3c0cf12c-58df-4018-946c-78fdc2bf72ec","block_type":"box","text":"Name","page_number":21,"box":{"x":69,"y":79,"width":32,"height":7}},{"id":"bee02469-287c-4e27-a2f7-4b6dd0ad71b1","block_type":"box","text":"Compensation","page_number":21,"box":{"x":516,"y":69,"width":83,"height":9}},{"id":"1e622c46-f2e4-43f6-9a8b-a50aa9ae7d6c","block_type":"box","text":"from the Fund","page_number":21,"box":{"x":517,"y":79,"width":81,"height":7}},{"id":"d469a67b-fffd-4cb8-a458-3261832fbf1f","block_type":"box","text":"Estimated Annual","page_number":21,"box":{"x":630,"y":59,"width":101,"height":7}},{"id":"82b235d7-8606-4d6f-9d45-365bd11fdbf7","block_type":"box","text":"Benefits upon","page_number":21,"box":{"x":641,"y":69,"width":79,"height":9}},{"id":"cc8b3a2e-30d9-46cd-9a0f-ec064bc45a8a","block_type":"box","text":"Retirement","page_number":21,"box":{"x":648,"y":79,"width":65,"height":7}},{"id":"f62a6874-eb63-4c4a-9010-3a6bdb4ac08c","block_type":"box","text":"Aggregate Compensation","page_number":21,"box":{"x":761,"y":49,"width":148,"height":9}},{"id":"be75fd2f-a4b1-4dc7-b0db-15edb56e06eb","block_type":"box","text":"from the Fund and","page_number":21,"box":{"x":782,"y":59,"width":106,"height":7}},{"id":"101976dc-2a12-402a-bbb8-34365b78c5e7","block_type":"box","text":"Other BlackRock","page_number":21,"box":{"x":785,"y":69,"width":102,"height":7}},{"id":"c66f81f1-a4ba-4be3-97c9-2cde1e995042","block_type":"box","text":"Advised Funds","page_number":21,"box":{"x":791,"y":79,"width":84,"height":7}},{"id":"6171f827-e03a-4f33-8c3f-99d06031fe7b","block_type":"box","text":"1","page_number":21,"box":{"x":876,"y":79,"width":3,"height":4}},{"id":"795ac527-e45b-4a72-8f1e-e9452a0a309f","block_type":"box","text":"Neil A. Cotty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,099","page_number":21,"box":{"x":79,"y":96,"width":505,"height":12}},{"id":"50848e33-b37c-49cc-9439-c3566c387809","block_type":"box","text":"None $467,500","page_number":21,"box":{"x":663,"y":96,"width":208,"height":11}},{"id":"2c820bdc-7a39-4c8b-a1e5-6807d41e496a","block_type":"box","text":"Jeffrey Jarczyk","page_number":21,"box":{"x":78,"y":112,"width":103,"height":11}},{"id":"6a5d6d77-9412-44a0-8b23-4e677db59b49","block_type":"box","text":"2","page_number":21,"box":{"x":181,"y":112,"width":4,"height":5}},{"id":"d651f2cb-e0b4-4ae7-8885-f635f4401066","block_type":"box","text":".....................................","page_number":21,"box":{"x":190,"y":119,"width":295,"height":2}},{"id":"b0119b32-d341-4427-95bf-cca414e72194","block_type":"box","text":"$329 None None","page_number":21,"box":{"x":539,"y":111,"width":314,"height":11}},{"id":"39a9deb2-5178-4052-8b77-b4259106a339","block_type":"box","text":"Henry R. Keizer","page_number":21,"box":{"x":79,"y":127,"width":109,"height":11}},{"id":"7f418e53-91ec-4267-92b3-a1d47e331256","block_type":"box","text":"3","page_number":21,"box":{"x":189,"y":128,"width":4,"height":4}},{"id":"6b01dc93-965a-4226-89ef-045373705287","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,152","page_number":21,"box":{"x":198,"y":126,"width":386,"height":12}},{"id":"ebff2aae-c780-413a-8a8e-ade765e36d6a","block_type":"box","text":"None $490,000","page_number":21,"box":{"x":663,"y":126,"width":208,"height":12}},{"id":"4cf4874f-f33f-47a7-9234-8476db6f6cff","block_type":"box","text":"Cynthia A. Montgomery","page_number":21,"box":{"x":79,"y":142,"width":164,"height":12}},{"id":"dc93b121-e6a5-4a7f-abf4-4f40c7f1ae83","block_type":"box","text":"4","page_number":21,"box":{"x":244,"y":143,"width":4,"height":4}},{"id":"6f5ed12f-c301-4d5c-9e62-2588b51f95e1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,124","page_number":21,"box":{"x":255,"y":142,"width":329,"height":11}},{"id":"245bbcb9-e563-490a-ae70-0c6096e2d15d","block_type":"box","text":"None $490,000","page_number":21,"box":{"x":663,"y":142,"width":208,"height":11}},{"id":"ae999f8d-c68f-4c6c-adbb-5ca3af184491","block_type":"box","text":"Donald C. Opatrny","page_number":21,"box":{"x":79,"y":158,"width":129,"height":11}},{"id":"11066236-7aca-4b2e-a5ef-f49f190344d6","block_type":"box","text":"5","page_number":21,"box":{"x":208,"y":158,"width":4,"height":4}},{"id":"5446e4e1-8572-4f58-aa6e-9c7191f1c4aa","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,124","page_number":21,"box":{"x":214,"y":157,"width":370,"height":11}},{"id":"52ee1d8b-775f-4017-8b73-65acce725f2b","block_type":"box","text":"None $490,000","page_number":21,"box":{"x":663,"y":157,"width":208,"height":11}},{"id":"e8bc0e99-12d4-4f4c-a817-83524f556ebb","block_type":"box","text":"Lori Richards","page_number":21,"box":{"x":79,"y":173,"width":91,"height":9}},{"id":"db1a3ed7-884e-4441-99cc-45bdc635d156","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,069","page_number":21,"box":{"x":174,"y":172,"width":410,"height":11}},{"id":"1dc11db7-dbf3-450f-878a-0ec9e7aa6d34","block_type":"box","text":"None $445,000","page_number":21,"box":{"x":663,"y":172,"width":208,"height":11}},{"id":"d2d58267-28db-4858-8d1d-ad0c8858209e","block_type":"box","text":"Mark Stalnecker","page_number":21,"box":{"x":79,"y":188,"width":115,"height":9}},{"id":"f443f38a-19b9-4b87-9c0a-c83156853e35","block_type":"box","text":"6","page_number":21,"box":{"x":194,"y":188,"width":5,"height":4}},{"id":"41c5c395-b5f3-4bab-85b7-a5b792e2a324","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,252","page_number":21,"box":{"x":206,"y":187,"width":378,"height":11}},{"id":"15d0955a-c577-4960-a673-052a51bf7429","block_type":"box","text":"None $595,000","page_number":21,"box":{"x":663,"y":187,"width":208,"height":11}},{"id":"fabb8715-64e4-49db-8551-67bf67df7196","block_type":"box","text":"Marc D. Stern","page_number":21,"box":{"x":79,"y":203,"width":97,"height":9}},{"id":"5a8633cc-994d-4d71-9787-63c85ec2fad4","block_type":"box","text":"2","page_number":21,"box":{"x":178,"y":203,"width":4,"height":5}},{"id":"07e81d87-aa0e-4f5c-ad98-dc5586a906a6","block_type":"box","text":".....................................","page_number":21,"box":{"x":190,"y":210,"width":295,"height":2}},{"id":"5a375a39-2c8b-48e0-9868-e55641de71a6","block_type":"box","text":"$329 None None","page_number":21,"box":{"x":539,"y":202,"width":314,"height":11}},{"id":"997c1053-fa6f-41fe-85a1-9238a6df45e3","block_type":"box","text":"Kenneth L. Urish","page_number":21,"box":{"x":79,"y":218,"width":117,"height":9}},{"id":"435909a0-ca7a-41a8-96e7-b0e4bdd90e72","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,069","page_number":21,"box":{"x":206,"y":217,"width":378,"height":11}},{"id":"f4fc7c41-5a78-41a8-bcc7-c0111b66b511","block_type":"box","text":"None $445,000","page_number":21,"box":{"x":663,"y":217,"width":208,"height":11}},{"id":"71423720-83ea-4581-9262-8dd42af840c6","block_type":"box","text":"Claire A. Walton","page_number":21,"box":{"x":79,"y":233,"width":111,"height":9}},{"id":"15fc2164-7d10-4a09-8f03-0541e589a7c5","block_type":"box","text":"7","page_number":21,"box":{"x":192,"y":233,"width":3,"height":5}},{"id":"f1294caa-321e-43b2-b54f-a610728e4229","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,124","page_number":21,"box":{"x":198,"y":232,"width":386,"height":11}},{"id":"52eadc07-8982-444f-9ebd-132e2569a5c9","block_type":"box","text":"None $490,000","page_number":21,"box":{"x":663,"y":232,"width":208,"height":11}},{"id":"2a253b15-ca93-4f42-a588-0b92588f64bf","block_type":"box","text":"Interested Trustees","page_number":21,"box":{"x":70,"y":248,"width":138,"height":9}},{"id":"1817f572-0f30-4120-9081-3bebdb60fb65","block_type":"box","text":"Robert Fairbairn . . .","page_number":21,"box":{"x":79,"y":263,"width":137,"height":9}},{"id":"7c5d108b-0511-4b4d-be13-d8ec6af180f8","block_type":"box","text":".................................","page_number":21,"box":{"x":223,"y":271,"width":262,"height":1}},{"id":"c144e8d0-8d98-4fe4-a283-f0e498020f55","block_type":"box","text":"None None None","page_number":21,"box":{"x":541,"y":263,"width":312,"height":9}},{"id":"a6239c8b-7500-42a2-8d64-01875bdb07f7","block_type":"box","text":"John M. Perlowski . .","page_number":21,"box":{"x":78,"y":279,"width":146,"height":8}},{"id":"89cf048a-1a71-451d-9960-241485d71c92","block_type":"box","text":"................................","page_number":21,"box":{"x":231,"y":286,"width":254,"height":1}},{"id":"373827d1-5d23-49a8-8b1c-61b358eea8f3","block_type":"box","text":"None None None","page_number":21,"box":{"x":541,"y":279,"width":312,"height":8}},{"id":"a05811f9-3119-482f-ac87-3c463c959dd6","block_type":"box","text":"1","page_number":21,"box":{"x":69,"y":303,"width":3,"height":3}},{"id":"6f1e88f1-c9e6-4d5c-8fea-3421f272bb53","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation, see “Biographical Information” beginning on","page_number":21,"box":{"x":94,"y":303,"width":786,"height":9}},{"id":"67faebd3-bfbf-4cbd-9378-9f5c89a700d4","block_type":"box","text":"page I-14.","page_number":21,"box":{"x":94,"y":313,"width":55,"height":9}},{"id":"5c80042a-0492-498b-885a-b06e0c490b4c","block_type":"box","text":"2","page_number":21,"box":{"x":69,"y":326,"width":3,"height":3}},{"id":"b6c25b10-f3cb-46ca-893a-4e812db06432","block_type":"box","text":"Compensation includes $329 earned as a consultant to the Independent Trustees for the period April 1, 2026 to July 1, 2026.","page_number":21,"box":{"x":93,"y":325,"width":724,"height":9}},{"id":"46e4a878-4930-4c48-9cd0-14c364f89d18","block_type":"box","text":"3","page_number":21,"box":{"x":69,"y":338,"width":3,"height":4}},{"id":"776be45e-ebb4-42be-9cf7-c3cefb59ea4f","block_type":"box","text":"Chair of the Audit Committee.","page_number":21,"box":{"x":93,"y":338,"width":168,"height":7}},{"id":"5a68934f-e4cd-42e9-923a-37f2b6d5f453","block_type":"box","text":"4","page_number":21,"box":{"x":68,"y":351,"width":4,"height":3}},{"id":"4d58c025-d901-410a-80de-f0c643b89d24","block_type":"box","text":"Chair of the Governance Committee.","page_number":21,"box":{"x":93,"y":351,"width":206,"height":7}},{"id":"9370ceeb-0274-46cb-b222-babfd29c0be9","block_type":"box","text":"5","page_number":21,"box":{"x":69,"y":363,"width":3,"height":4}},{"id":"8107713b-08fb-43a1-8363-52a894d3e8d9","block_type":"box","text":"Chair of the Performance Oversight Committee.","page_number":21,"box":{"x":93,"y":363,"width":269,"height":9}},{"id":"3b065b4f-2df1-4ef5-8e91-cf997127160b","block_type":"box","text":"6","page_number":21,"box":{"x":69,"y":376,"width":3,"height":4}},{"id":"d607c684-15e9-4216-b043-faba8c491df5","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":21,"box":{"x":93,"y":376,"width":352,"height":9}},{"id":"a3a7fdfd-c7bb-4564-b91a-b035e3cc2367","block_type":"box","text":"7","page_number":21,"box":{"x":69,"y":389,"width":3,"height":3}},{"id":"838a5f73-f93a-4c32-9646-cbf924755001","block_type":"box","text":"Chair of the Compliance Committee.","page_number":21,"box":{"x":93,"y":388,"width":205,"height":9}},{"id":"5dd601b3-9a49-4b43-941f-3fc8bd4afaf2","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":21,"box":{"x":69,"y":417,"width":432,"height":11}},{"id":"9858f2bd-cf25-4d36-855b-08223c8453a4","block_type":"box","text":"Management Agreement","page_number":21,"box":{"x":69,"y":447,"width":180,"height":11}},{"id":"d95491b3-99f2-44aa-818c-a98342aded6e","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into an investment advisory agreement with BlackRock pursuant to","page_number":21,"box":{"x":101,"y":470,"width":805,"height":11}},{"id":"38b1e406-d843-46d1-8f13-82ccc219fe4b","block_type":"box","text":"which BlackRock is entitled to receive fees for the services it provides (the “Management Agreement”).","page_number":21,"box":{"x":68,"y":485,"width":736,"height":11}},{"id":"e37a280b-3b58-4a4a-b0a0-5f994a263dbe","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s","page_number":21,"box":{"x":102,"y":508,"width":762,"height":11}},{"id":"19e579c1-6bce-42d6-9b76-9fddc356f86b","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":21,"box":{"x":69,"y":523,"width":799,"height":11}},{"id":"a22f9281-5e32-4da0-b7d9-e69057cdd2dc","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":21,"box":{"x":68,"y":538,"width":726,"height":11}},{"id":"c25be99a-9137-462c-a32b-32e1c6e13f05","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":21,"box":{"x":69,"y":553,"width":797,"height":11}},{"id":"a89e3436-344c-4ad9-ac1c-bb8daa495314","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":21,"box":{"x":69,"y":568,"width":789,"height":11}},{"id":"a98035ff-69f0-4e42-9d2f-32ce4218cc74","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’","page_number":21,"box":{"x":70,"y":583,"width":810,"height":12}},{"id":"0a34f2f1-5b7a-4afd-bd7e-a46b0c0530de","block_type":"box","text":"notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the","page_number":21,"box":{"x":69,"y":598,"width":827,"height":12}},{"id":"56f72d92-5a8a-4a8d-adbd-00a89245d2f6","block_type":"box","text":"Fund.","page_number":21,"box":{"x":70,"y":614,"width":36,"height":8}},{"id":"eef04ff9-782d-4f52-95d9-9870f2d3af85","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual","page_number":21,"box":{"x":102,"y":636,"width":778,"height":11}},{"id":"d922e919-0fed-4f6c-9aff-360af26c9c9a","block_type":"box","text":"Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest","page_number":21,"box":{"x":70,"y":651,"width":824,"height":12}},{"id":"db8b597b-a0a0-46d8-a792-adf2f7113130","block_type":"box","text":"Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) as a percentage of average daily net","page_number":21,"box":{"x":70,"y":666,"width":821,"height":12}},{"id":"af10d301-6283-4fe7-98be-a95bff17e2ba","block_type":"box","text":"assets to 0.97% (for Investor A Shares), 1.72% (for Investor C Shares), 0.72% (for Institutional Shares) and 0.67%","page_number":21,"box":{"x":69,"y":681,"width":817,"height":12}},{"id":"01b10066-3afc-4a27-88a5-634ccc5e4ef6","block_type":"box","text":"(for Class K Shares) through June 30, 2028. The contractual agreement may be terminated upon 90 days’ notice by","page_number":21,"box":{"x":69,"y":697,"width":829,"height":11}},{"id":"a4d160b5-bc30-4f51-9669-c78472f125b9","block_type":"box","text":"a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of","page_number":21,"box":{"x":69,"y":712,"width":830,"height":11}},{"id":"6fce49d0-7f4b-4368-aac6-2c44a96b40f9","block_type":"box","text":"the Fund.","page_number":21,"box":{"x":68,"y":727,"width":66,"height":9}},{"id":"1fe2e9f6-87c5-4821-8e9f-b2742f75e023","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":21,"box":{"x":102,"y":749,"width":784,"height":12}},{"id":"1188bd47-cbc9-4808-84cd-e973b9e16cbc","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of BlackRock, to","page_number":21,"box":{"x":70,"y":765,"width":838,"height":11}},{"id":"62e5984d-354f-4934-ae3c-5f444bfe57f6","block_type":"box","text":"perform investment advisory services with respect to the Fund. In addition, BlackRock may delegate certain of its","page_number":21,"box":{"x":70,"y":780,"width":810,"height":11}},{"id":"991f3801-ec2a-4c0d-9b99-e2697c895956","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":21,"box":{"x":70,"y":795,"width":779,"height":11}},{"id":"0a37ec86-9bb4-49b4-b5ac-d6850de40fcf","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":21,"box":{"x":70,"y":810,"width":827,"height":11}},{"id":"b239cfa6-5beb-4cde-8e05-f31074725382","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":21,"box":{"x":69,"y":825,"width":486,"height":11}},{"id":"cba1cae2-31ab-4420-84d3-9cebaa506f45","block_type":"box","text":"BlackRock has entered into a sub-advisory agreement with BlackRock International Limited (the “Sub-Adviser”),","page_number":21,"box":{"x":102,"y":848,"width":791,"height":11}},{"id":"7d9f1254-e51b-49d0-a89f-afbefd4e8062","block_type":"box","text":"pursuant to which BlackRock pays the Sub-Adviser for providing services to BlackRock with respect to that portion of","page_number":21,"box":{"x":70,"y":863,"width":831,"height":11}},{"id":"58978878-d885-43be-8ad1-f6363c43b876","block_type":"box","text":"the Fund for which it acts as sub-adviser a monthly fee at an annual rate equal to a percentage of the management","page_number":21,"box":{"x":68,"y":878,"width":822,"height":11}},{"id":"b83c33d8-ac7e-4f79-b7a8-3dd5e4d75376","block_type":"box","text":"fee paid to BlackRock under the Management Agreement.","page_number":21,"box":{"x":68,"y":893,"width":411,"height":11}},{"id":"fc23526c-5ec8-449e-a0c9-87f608d357cf","block_type":"box","text":"I-19","page_number":21,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"c3de8dd7-ba78-46df-b39a-8e757b147d5b","block_type":"box","text":"NM1026U-5981128-21/232","page_number":21,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9cd9c650-d1a3-41ec-8a9f-d0703c3785ec","block_type":"box","text":"The table below sets forth information about the management fees paid by the Trust, on behalf of the Fund, to","page_number":22,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"45f69c59-2273-4c16-88f3-15e8b8cf6536","block_type":"box","text":"BlackRock (which includes amounts paid by BlackRock to the Sub-Adviser), and the amounts waived and/or","page_number":22,"box":{"x":70,"y":60,"width":765,"height":11}},{"id":"e8b359be-e084-44d7-9932-fd1bfc17cbb8","block_type":"box","text":"reimbursed, for the fiscal years shown.","page_number":22,"box":{"x":69,"y":75,"width":276,"height":11}},{"id":"c79ad0d8-00aa-4b74-865b-a74361890071","block_type":"box","text":"Fees Paid","page_number":22,"box":{"x":598,"y":103,"width":56,"height":7}},{"id":"e5d6a3db-0cb3-4ac4-9ced-437f897597a0","block_type":"box","text":"to BlackRock","page_number":22,"box":{"x":586,"y":113,"width":79,"height":7}},{"id":"b3149202-b9ed-405d-8dc3-ae23fb1acd2f","block_type":"box","text":"Fees Waived","page_number":22,"box":{"x":704,"y":103,"width":72,"height":7}},{"id":"1add78ff-b5dc-4e7d-ac8d-f6dfec41e624","block_type":"box","text":"by BlackRock","page_number":22,"box":{"x":700,"y":113,"width":80,"height":9}},{"id":"e21acc03-88b3-4494-95a3-52205a6fbad9","block_type":"box","text":"Fees Reimbursed","page_number":22,"box":{"x":810,"y":103,"width":99,"height":7}},{"id":"185954b9-68ca-4861-850e-ce73e87c648c","block_type":"box","text":"by BlackRock","page_number":22,"box":{"x":820,"y":113,"width":80,"height":9}},{"id":"9b4e8ddd-0c2d-4b9d-aced-4474d2ee9e8d","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,469,710 $397,674 $564,644","page_number":22,"box":{"x":70,"y":130,"width":825,"height":12}},{"id":"edf2a2be-1d80-415b-a72f-22b6a5c966d1","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,925,160 $410,919 $314,433","page_number":22,"box":{"x":70,"y":145,"width":825,"height":12}},{"id":"02064666-a699-400b-9b5f-1609e4c64091","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,284,654 $482,027 $579,531","page_number":22,"box":{"x":70,"y":161,"width":825,"height":11}},{"id":"63dd9dc7-e352-41dd-a435-3b36f3cf938e","block_type":"box","text":"Administration Agreement","page_number":22,"box":{"x":68,"y":193,"width":191,"height":11}},{"id":"ccaa65c4-5c5f-4ad8-b91f-15eb92fcff07","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":22,"box":{"x":102,"y":216,"width":711,"height":10}},{"id":"3cf0ba9c-067a-4131-9664-8212e7f5820c","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":22,"box":{"x":69,"y":230,"width":838,"height":12}},{"id":"b83a4f3a-26da-4de7-941c-7f194a3e54a5","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":22,"box":{"x":68,"y":246,"width":830,"height":11}},{"id":"59783758-530b-40ca-a407-5ddc9d8ae6ba","block_type":"box","text":"publication of the Fund’s net asset value; oversee the preparation and filing of Federal, state and local income tax","page_number":22,"box":{"x":70,"y":261,"width":813,"height":11}},{"id":"885d908c-2a8e-4006-82fa-70392537d949","block_type":"box","text":"returns; prepare certain reports required by regulatory authorities; calculate various contractual expenses; determine","page_number":22,"box":{"x":69,"y":276,"width":837,"height":11}},{"id":"1b3c44e6-f2b6-428f-a7a5-1b43036b595e","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":22,"box":{"x":68,"y":291,"width":836,"height":11}},{"id":"5a2a8310-3fe2-4d3d-9be4-a6f26317c724","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":22,"box":{"x":68,"y":306,"width":785,"height":11}},{"id":"65d20b37-39cd-4067-a7a1-9dc2db36758a","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Trust’s officers,","page_number":22,"box":{"x":69,"y":321,"width":765,"height":11}},{"id":"acaef773-53d3-4562-b161-af785fa90639","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":22,"box":{"x":70,"y":336,"width":819,"height":12}},{"id":"35404da0-5ee0-4e29-ac4f-a1bd02090271","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":22,"box":{"x":69,"y":351,"width":818,"height":12}},{"id":"1d2c192d-7723-4efc-85d6-58f53a52fb3f","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":22,"box":{"x":68,"y":366,"width":840,"height":12}},{"id":"1bf7a3e5-f82a-4de7-9ec9-b4a8799a205b","block_type":"box","text":"reimburse the Fund for expenses.","page_number":22,"box":{"x":69,"y":382,"width":238,"height":11}},{"id":"6a08f6d4-b615-4005-b91a-ce8ff789f432","block_type":"box","text":"Under the Administration Agreement, the Trust, on behalf of the Fund, pays to the Administrator a fee, computed","page_number":22,"box":{"x":102,"y":404,"width":802,"height":12}},{"id":"a78f13e3-7df3-4e93-bfed-aed68f1c1eb5","block_type":"box","text":"daily and payable monthly, at an aggregate annual rate of (i) 0.0425% of the first $500 million of the Fund’s average","page_number":22,"box":{"x":69,"y":419,"width":830,"height":12}},{"id":"809d8c1a-1c80-4b7f-8629-d20432f732d8","block_type":"box","text":"daily net assets, 0.040% of the next $500 million of the Fund’s average daily net assets, 0.0375% of the next","page_number":22,"box":{"x":69,"y":434,"width":788,"height":12}},{"id":"b6e5ca72-4b22-4bba-aae7-b0a61e356fe7","block_type":"box","text":"$1 billion of the Fund’s average daily net assets, 0.035% of the next $2 billion of the Fund’s average daily net","page_number":22,"box":{"x":69,"y":449,"width":785,"height":12}},{"id":"5150d1c3-1565-4b9f-8c81-1cf7681fb0f9","block_type":"box","text":"assets, 0.0325% of the next $9 billion of the Fund’s average daily net assets and 0.030% of the average daily net","page_number":22,"box":{"x":69,"y":464,"width":816,"height":12}},{"id":"46a24444-aa29-47b3-87f3-1bb40c72de3c","block_type":"box","text":"assets of the Fund in excess of $13 billion and (ii) 0.020% of average daily net assets allocated to each class of","page_number":22,"box":{"x":69,"y":479,"width":805,"height":12}},{"id":"cafdf2c6-3b5a-4fb9-95bb-264921207035","block_type":"box","text":"shares of the Fund.","page_number":22,"box":{"x":69,"y":495,"width":137,"height":9}},{"id":"a53e281b-c7cf-49ba-9eb6-2d0e0f36777e","block_type":"box","text":"The table below sets forth information about the administration fees paid by the Trust, on behalf of the Fund, to","page_number":22,"box":{"x":101,"y":518,"width":798,"height":11}},{"id":"512c670f-1562-43d4-9213-3ab33f7abd93","block_type":"box","text":"the Administrator, and the amounts waived and/or reimbursed, for the fiscal years shown.","page_number":22,"box":{"x":68,"y":533,"width":642,"height":11}},{"id":"ebbebb6e-06a4-447e-b9be-aecacd6fb90e","block_type":"box","text":"Fees Paid to","page_number":22,"box":{"x":544,"y":561,"width":72,"height":7}},{"id":"3eacf1ae-4ce7-4540-9a12-5c9e725af571","block_type":"box","text":"the Administrator","page_number":22,"box":{"x":529,"y":571,"width":102,"height":7}},{"id":"db5a6a30-76e7-4188-b8cd-76dd175c8e4b","block_type":"box","text":"Fees Waived by","page_number":22,"box":{"x":667,"y":561,"width":90,"height":9}},{"id":"1ca0c3cb-efd5-4fa4-9690-2a3fe52ea1ba","block_type":"box","text":"the Administrator","page_number":22,"box":{"x":660,"y":571,"width":103,"height":7}},{"id":"80ad7179-a921-49e1-9073-8c2e04c59201","block_type":"box","text":"Fees Reimbursed by","page_number":22,"box":{"x":793,"y":561,"width":116,"height":9}},{"id":"b786e251-b802-4b38-80ba-ef20410f8cb2","block_type":"box","text":"the Administrator","page_number":22,"box":{"x":800,"y":571,"width":102,"height":7}},{"id":"6acfeb54-d0f5-42d1-8585-6524a63ce864","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . .","page_number":22,"box":{"x":70,"y":589,"width":314,"height":11}},{"id":"2ed729c2-4c85-4d80-8446-91d7821df8ba","block_type":"box","text":"..............","page_number":22,"box":{"x":390,"y":596,"width":108,"height":2}},{"id":"1728d12c-067e-4114-ae86-06d7e2e96e1c","block_type":"box","text":"$542,405 $176,973 $0","page_number":22,"box":{"x":544,"y":588,"width":316,"height":11}},{"id":"59de95a7-3947-4add-b0b0-5f8ea8569947","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . .","page_number":22,"box":{"x":70,"y":604,"width":314,"height":11}},{"id":"c4b3f3f7-943b-4da0-afdd-44e51f4b7025","block_type":"box","text":"..............","page_number":22,"box":{"x":390,"y":611,"width":108,"height":2}},{"id":"58afcc21-9750-40f0-8fe2-34331d856ea2","block_type":"box","text":"$392,412 $126,676 $0","page_number":22,"box":{"x":544,"y":603,"width":316,"height":11}},{"id":"9fe83e48-6444-4c00-a94d-301e31cf54bf","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . .","page_number":22,"box":{"x":70,"y":619,"width":314,"height":11}},{"id":"b6cab1eb-0448-4d8a-8a5a-83c723c3f43f","block_type":"box","text":"..............","page_number":22,"box":{"x":390,"y":627,"width":108,"height":1}},{"id":"2fdb1502-b62e-4dc8-8eeb-d0bc2ffa948e","block_type":"box","text":"$524,662 $171,200 $0","page_number":22,"box":{"x":544,"y":618,"width":316,"height":12}},{"id":"0f39db5d-f2da-4abb-9f0b-99d65810d4a9","block_type":"box","text":"The Trust and its service providers may engage third party plan administrators who provide trustee,","page_number":22,"box":{"x":101,"y":658,"width":708,"height":11}},{"id":"c3046282-1dea-4adc-8398-c738a43457a7","block_type":"box","text":"administrative and recordkeeping services for certain employee benefit, profit-sharing and retirement plans as agents","page_number":22,"box":{"x":69,"y":673,"width":838,"height":12}},{"id":"134df6b8-c50f-49b2-af0a-07a2b1f55940","block_type":"box","text":"for the Trust with respect to such plans, for the purpose of accepting orders for the purchase and redemption of","page_number":22,"box":{"x":68,"y":688,"width":800,"height":12}},{"id":"72fd0925-4355-4fdd-b13f-402438e3151a","block_type":"box","text":"shares of the Trust.","page_number":22,"box":{"x":69,"y":703,"width":138,"height":10}},{"id":"064f9749-5fef-47b6-b9cf-a317f3a9213d","block_type":"box","text":"In addition, pursuant to a Shareholders’ Administrative Services Agreement, BlackRock provides certain","page_number":22,"box":{"x":102,"y":726,"width":740,"height":11}},{"id":"0a7cdbd1-299d-4683-952d-3a07a1530793","block_type":"box","text":"shareholder liaison services in connection with the Trust’s investor service center. The Trust, on behalf of the Fund,","page_number":22,"box":{"x":69,"y":741,"width":824,"height":11}},{"id":"c98c7d36-2323-4efe-b0d1-c97e844c88d5","block_type":"box","text":"reimburses BlackRock for its costs in maintaining the service center, which costs include, among other things,","page_number":22,"box":{"x":69,"y":756,"width":787,"height":12}},{"id":"c5ae497e-84b6-4463-bb3f-a63d32e49088","block_type":"box","text":"employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":22,"box":{"x":69,"y":772,"width":531,"height":11}},{"id":"f3ac9366-b02a-4637-ae14-5091cfb13de0","block_type":"box","text":"For the fiscal years shown, the Trust, on behalf of the Fund, reimbursed to BlackRock fees for shareholder","page_number":22,"box":{"x":102,"y":794,"width":757,"height":11}},{"id":"c9e9033b-55d0-4ea8-9009-a0b89fdd2941","block_type":"box","text":"liaison services pursuant to such agreement as follows:","page_number":22,"box":{"x":70,"y":809,"width":397,"height":12}},{"id":"fd6460d4-f8c9-4f24-8478-c5a79c51226a","block_type":"box","text":"Fees Paid","page_number":22,"box":{"x":722,"y":838,"width":56,"height":7}},{"id":"98c93cc8-c993-451b-9217-42f2e68702d9","block_type":"box","text":"to BlackRock","page_number":22,"box":{"x":710,"y":848,"width":79,"height":7}},{"id":"dd3dd611-1743-4f1c-ba71-e57a40c45a6c","block_type":"box","text":"Fees Waived by","page_number":22,"box":{"x":820,"y":838,"width":89,"height":8}},{"id":"cc33646c-98b3-42a9-906b-353c47a9a319","block_type":"box","text":"BlackRock","page_number":22,"box":{"x":833,"y":848,"width":63,"height":7}},{"id":"901e078c-baff-4720-8e71-1280f4b2daa3","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . .","page_number":22,"box":{"x":70,"y":866,"width":283,"height":11}},{"id":"781f69dc-ae50-4383-9344-e6ebc0183cb6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,891 $ 4,891","page_number":22,"box":{"x":360,"y":865,"width":535,"height":11}},{"id":"8c39c5e9-0535-4c08-a59e-0b975ae886a4","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . .","page_number":22,"box":{"x":70,"y":881,"width":283,"height":11}},{"id":"7c60b83f-c68d-4a2b-baa0-ee1aa1a51282","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,705 $ 4,705","page_number":22,"box":{"x":360,"y":880,"width":535,"height":11}},{"id":"19a01411-2c01-40be-aeb9-669c5a6ff127","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . .","page_number":22,"box":{"x":70,"y":896,"width":283,"height":11}},{"id":"5708250d-a153-426a-887f-d12fa5ff3c67","block_type":"box","text":"........................................","page_number":22,"box":{"x":360,"y":903,"width":319,"height":2}},{"id":"70a6ef9f-4cfb-46a0-b06e-0ee68eef64b0","block_type":"box","text":"$15,273 $15,273","page_number":22,"box":{"x":719,"y":895,"width":176,"height":11}},{"id":"92965b4d-aec2-45ab-8bb8-0e5233106d99","block_type":"box","text":"I-20","page_number":22,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"49cc02b5-deda-463f-a18e-ba57f4d7e4c0","block_type":"box","text":"NM1026U-5981128-22/232","page_number":22,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f77af8b9-3f3d-4349-a172-4f35699a51d8","block_type":"box","text":"Fees Paid","page_number":23,"box":{"x":722,"y":49,"width":56,"height":7}},{"id":"9d785c9d-8c07-41ec-9bfa-125655cbc222","block_type":"box","text":"to BlackRock","page_number":23,"box":{"x":710,"y":59,"width":79,"height":7}},{"id":"acd8b872-4a24-41a7-a611-d53b8c0d456e","block_type":"box","text":"Fees Waived by","page_number":23,"box":{"x":820,"y":49,"width":89,"height":9}},{"id":"a16b7451-b831-4765-8938-3837681cb244","block_type":"box","text":"BlackRock","page_number":23,"box":{"x":833,"y":59,"width":63,"height":7}},{"id":"cdff0bcc-d8fa-4939-95aa-4d9f304c15c6","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":23,"box":{"x":69,"y":108,"width":335,"height":11}},{"id":"aae6bf58-d0aa-4e11-9426-56c4228d0fdd","block_type":"box","text":"Alastair Bishop and Hannah Johnson, CFA, are the portfolio managers and are jointly and primarily responsible","page_number":23,"box":{"x":101,"y":131,"width":788,"height":11}},{"id":"1a863cea-8e52-4168-b549-6cad5748c57f","block_type":"box","text":"for the day-to-day management of the Fund.","page_number":23,"box":{"x":68,"y":146,"width":309,"height":11}},{"id":"abe17e9c-cd4c-47c4-b8ce-704c727cde08","block_type":"box","text":"Other Funds and Accounts Managed","page_number":23,"box":{"x":69,"y":176,"width":264,"height":11}},{"id":"de283920-86f0-41b0-a985-ae540ba0a3d0","block_type":"box","text":"The following table sets forth information about the funds and accounts other than the Fund for which the Fund’s","page_number":23,"box":{"x":101,"y":199,"width":806,"height":11}},{"id":"6a5fbc10-1d40-43d3-91a0-f1f22315c426","block_type":"box","text":"portfolio managers are primarily responsible for the day-to-day portfolio management as of May 31, 2026.","page_number":23,"box":{"x":70,"y":214,"width":755,"height":11}},{"id":"9a1aef8d-bdaf-4ed8-a568-9d00070c7a94","block_type":"box","text":"Number of Other Accounts Managed","page_number":23,"box":{"x":360,"y":242,"width":212,"height":9}},{"id":"3d0b2956-0e7f-48cb-9d23-21b7c02ba4b6","block_type":"box","text":"and Assets by Account Type","page_number":23,"box":{"x":383,"y":253,"width":165,"height":8}},{"id":"86deb2c5-c3ff-4a2f-9f4b-50ded452e042","block_type":"box","text":"Number of Other Accounts and Assets","page_number":23,"box":{"x":656,"y":242,"width":222,"height":8}},{"id":"24b569a9-3d0a-4467-9c0e-3e5c3328ef6b","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":23,"box":{"x":634,"y":252,"width":265,"height":9}},{"id":"d633c3f8-766b-47ab-8161-6600fac594f2","block_type":"box","text":"Name of Portfolio 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Pooled","page_number":23,"box":{"x":419,"y":275,"width":75,"height":7}},{"id":"5a73dfe4-fdf2-421d-be2e-49ee34e5de57","block_type":"box","text":"Investment","page_number":23,"box":{"x":425,"y":285,"width":64,"height":7}},{"id":"ec11c031-f16d-48aa-b408-212b669155d1","block_type":"box","text":"Vehicles","page_number":23,"box":{"x":433,"y":295,"width":48,"height":7}},{"id":"d359524f-1f55-41a5-8185-bb1611214326","block_type":"box","text":"Other","page_number":23,"box":{"x":553,"y":285,"width":31,"height":7}},{"id":"34006827-51f9-4357-8a3e-db0fb8a1d340","block_type":"box","text":"Accounts","page_number":23,"box":{"x":541,"y":295,"width":54,"height":7}},{"id":"1fdc020f-af23-4e41-81d4-a57de4c49eb0","block_type":"box","text":"Other","page_number":23,"box":{"x":652,"y":265,"width":31,"height":7}},{"id":"38a834ec-6ed0-4b8b-be25-ff8df580b3ac","block_type":"box","text":"Registered","page_number":23,"box":{"x":636,"y":275,"width":62,"height":9}},{"id":"5174f4b7-bc91-429e-bdb0-6a39c41e2c81","block_type":"box","text":"Investment","page_number":23,"box":{"x":635,"y":285,"width":65,"height":7}},{"id":"0e08bfd1-0a62-4888-9fef-9ff9e247e552","block_type":"box","text":"Companies","page_number":23,"box":{"x":635,"y":295,"width":64,"height":9}},{"id":"a62ddb54-7edb-49c3-aabf-3639ed0a533d","block_type":"box","text":"Other Pooled","page_number":23,"box":{"x":735,"y":275,"width":74,"height":7}},{"id":"4dc080a6-3179-4a7d-9225-9874cfabd62b","block_type":"box","text":"Investment","page_number":23,"box":{"x":740,"y":285,"width":64,"height":7}},{"id":"172ddab6-7d67-41f2-b28c-15d05b91c847","block_type":"box","text":"Vehicles","page_number":23,"box":{"x":748,"y":295,"width":48,"height":7}},{"id":"06fa07fd-a124-4381-972f-9c8091297ea6","block_type":"box","text":"Other","page_number":23,"box":{"x":856,"y":285,"width":32,"height":7}},{"id":"54628162-82f3-48a5-a37b-8ae1d917e335","block_type":"box","text":"Accounts","page_number":23,"box":{"x":844,"y":295,"width":55,"height":7}},{"id":"4f4077b3-71c7-405c-8176-0839939d0b86","block_type":"box","text":"Alastair Bishop 6 13 2 0 1 0","page_number":23,"box":{"x":73,"y":309,"width":802,"height":9}},{"id":"22cd4334-17aa-4e81-be43-4e4e26d2b17a","block_type":"box","text":"$3.50 Billion $9.68 Billion $168.69 Million $0 $33.83 Thousand $0","page_number":23,"box":{"x":318,"y":321,"width":561,"height":9}},{"id":"2e3d8335-80be-4e63-9149-c11b59589b59","block_type":"box","text":"Hannah Johnson, CFA 0 5 1 0 0 0","page_number":23,"box":{"x":74,"y":334,"width":801,"height":9}},{"id":"d38b936e-3e0e-4103-bd39-de2b5e93a3db","block_type":"box","text":"$0 $790.00 Million $67.43 Million $0 $0 $0","page_number":23,"box":{"x":347,"y":346,"width":532,"height":9}},{"id":"dff86e2b-355f-4840-81ee-5c6340650666","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":23,"box":{"x":69,"y":381,"width":304,"height":11}},{"id":"27ffdf0f-0c3a-446f-a94a-efd15bfd592a","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of May 31, 2026.","page_number":23,"box":{"x":101,"y":404,"width":656,"height":11}},{"id":"1a817874-c731-41f4-b403-4fbc683d67a4","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":23,"box":{"x":102,"y":426,"width":774,"height":12}},{"id":"88a88fa5-5017-4c02-80ab-bdc610402ddc","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":23,"box":{"x":70,"y":441,"width":837,"height":12}},{"id":"f58f489b-e793-490c-a67c-2a688e76f7d4","block_type":"box","text":"a variety of components and may vary from year to year based on a number of factors. The principal components of","page_number":23,"box":{"x":69,"y":457,"width":823,"height":11}},{"id":"441ef763-07bd-43fc-8a05-787f15f8ac79","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":23,"box":{"x":69,"y":472,"width":799,"height":11}},{"id":"4a738b74-59fd-4665-b325-781d8db92dbf","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":23,"box":{"x":70,"y":487,"width":670,"height":11}},{"id":"d289ee63-045e-4618-a047-4c0d21c3baee","block_type":"box","text":"Base Compensation.","page_number":23,"box":{"x":102,"y":510,"width":148,"height":11}},{"id":"1389deba-8c7d-400b-889c-f3d4fcd774ad","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":23,"box":{"x":257,"y":509,"width":640,"height":12}},{"id":"4798b3ac-8146-453a-86f9-23e55c832b59","block_type":"box","text":"firm.","page_number":23,"box":{"x":68,"y":525,"width":32,"height":9}},{"id":"6c18bad3-c76c-4303-baf3-463c58d6a0fa","block_type":"box","text":"Discretionary Incentive Compensation","page_number":23,"box":{"x":69,"y":555,"width":277,"height":11}},{"id":"bc9ef103-f9fc-45d1-aa5a-63edc6aa03b7","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities portfolio managers is based on a","page_number":23,"box":{"x":102,"y":578,"width":763,"height":11}},{"id":"806d7658-2af0-4ffe-b1e8-1c561bc8b8df","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic portfolio manager compensation program is based on team","page_number":23,"box":{"x":68,"y":593,"width":832,"height":11}},{"id":"02433513-8b2a-47c6-9350-c50c54106b46","block_type":"box","text":"revenue and pre-tax investment performance relative to appropriate competitors or benchmarks over 1- and 5-year","page_number":23,"box":{"x":69,"y":608,"width":815,"height":11}},{"id":"bd3d1b9e-adb9-41bb-86e6-6a41c4d08d6c","block_type":"box","text":"performance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":23,"box":{"x":70,"y":623,"width":757,"height":11}},{"id":"36f9cc48-faa4-42ae-9f5c-dc2204ddf4ad","block_type":"box","text":"benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are","page_number":23,"box":{"x":69,"y":638,"width":814,"height":11}},{"id":"1342a647-0665-4fdc-83d6-40851bdaba3a","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":23,"box":{"x":69,"y":653,"width":780,"height":11}},{"id":"3ee37d6e-9ad5-480e-b0d7-dcccff9443d3","block_type":"box","text":"performance of the Fund and other accounts managed by the portfolio management team is compared and the","page_number":23,"box":{"x":70,"y":668,"width":791,"height":12}},{"id":"d5eb2f6c-e939-48bf-b766-91695815c79d","block_type":"box","text":"period of time over which performance is evaluated. With respect to these portfolio managers such benchmarks for","page_number":23,"box":{"x":70,"y":683,"width":823,"height":12}},{"id":"21d74d8d-4041-4be3-aee2-386c09ed5102","block_type":"box","text":"the Fund and other accounts are: Bloomberg Commodity Index Total Return; FTSE Gold Mines Index (Gross Total","page_number":23,"box":{"x":68,"y":699,"width":799,"height":11}},{"id":"0e876fa9-8eef-41e9-82ec-01ef889a0777","block_type":"box","text":"Return); FTSE Gold Mining Index - expressed in JPY; FTSE Gold Mining Index - GBP Price; SOFR 3 Month Index; MSCI","page_number":23,"box":{"x":70,"y":714,"width":824,"height":11}},{"id":"7d30fac3-c711-45a7-96cd-67c049116f3e","block_type":"box","text":"10/40 DW Energy (Net); MSCI ACWI Metals & Mining 30% Buffer 10/40 (1994) GBP Net TR; MSCI ACWI Metals &","page_number":23,"box":{"x":70,"y":729,"width":814,"height":11}},{"id":"4709f450-f883-481b-955f-9fc3e85cb8a7","block_type":"box","text":"Mining 30% Buffer 10/40 (1994) USD Net TR; MSCI World Energy Net Daily TR Index; NYSE Arca Gold Miners Index","page_number":23,"box":{"x":70,"y":744,"width":823,"height":11}},{"id":"77a5c2e6-c40d-4e4e-9571-131e59daa9f8","block_type":"box","text":"EUR Net Total Return; S&P Global Natural Resources Index; S&P Global Natural Resources Index - In GBP; S&P Global","page_number":23,"box":{"x":70,"y":759,"width":838,"height":10}},{"id":"b98f4a57-44ed-452e-a081-d2102bc9edbd","block_type":"box","text":"Natural Resources Net Return.","page_number":23,"box":{"x":70,"y":774,"width":216,"height":9}},{"id":"a9c60d1b-e83d-4885-8ff5-ebeebfd8a137","block_type":"box","text":"A smaller element of portfolio manager discretionary compensation may include consideration of: financial","page_number":23,"box":{"x":101,"y":797,"width":759,"height":11}},{"id":"a9709198-87a7-465d-9967-e587ecd135ca","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":23,"box":{"x":69,"y":812,"width":798,"height":11}},{"id":"8525cfb5-29b5-47e6-9c2b-f71ec024fcb2","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":23,"box":{"x":69,"y":827,"width":814,"height":11}},{"id":"4e972eff-a52a-4b28-a64e-c97c82745c94","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":23,"box":{"x":68,"y":842,"width":798,"height":11}},{"id":"cfbba4f3-399c-4d9c-893d-384581b9bd6e","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":23,"box":{"x":102,"y":865,"width":389,"height":11}},{"id":"6ef518a8-3742-4166-9123-8716bb6344ad","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":23,"box":{"x":499,"y":865,"width":383,"height":11}},{"id":"252dd75a-e108-48f8-8ed6-0bf71541c5d8","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":23,"box":{"x":70,"y":880,"width":815,"height":11}},{"id":"69285811-e612-4ad3-983c-3f2eaddc9499","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":23,"box":{"x":68,"y":895,"width":522,"height":11}},{"id":"7730308e-85e1-4bc4-adaa-ba2bf4f75833","block_type":"box","text":"I-21","page_number":23,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"951d3176-4998-4e9c-8a43-9e25e43f9850","block_type":"box","text":"NM1026U-5981128-23/232","page_number":23,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dfdf23c5-bdd9-48e6-9407-0363fd7a1e1d","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":24,"box":{"x":102,"y":45,"width":760,"height":11}},{"id":"b21740d3-5d89-4abb-ad55-fd2d81067beb","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":24,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"32cf72ff-437e-41f9-b290-477d00ff39cb","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":24,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"0ce1e2f9-efc6-4381-93d5-76a918188735","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":24,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"b0c886d8-52a4-4cc6-88df-724c0dab8c0b","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":24,"box":{"x":68,"y":105,"width":839,"height":11}},{"id":"b6647a9a-9c71-4017-9c94-db8f530b931e","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":24,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"d4e689d3-fd22-4550-9a66-8f581b30457e","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":24,"box":{"x":70,"y":135,"width":820,"height":12}},{"id":"0aed8314-552c-48e3-8340-4dcf2db9e2ba","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":24,"box":{"x":70,"y":150,"width":801,"height":12}},{"id":"4d4ef665-0089-4659-aefb-8bbfd1011bf1","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":24,"box":{"x":70,"y":166,"width":831,"height":11}},{"id":"6c7bec6a-014d-4d95-b6e8-4d7474524d1e","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":24,"box":{"x":69,"y":181,"width":479,"height":11}},{"id":"cc2495ab-4c5c-43fe-82f5-a7f2a72c0533","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":24,"box":{"x":102,"y":203,"width":785,"height":12}},{"id":"bc8d226c-7fae-42e3-87f3-2cd99430b083","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":24,"box":{"x":68,"y":218,"width":836,"height":12}},{"id":"79136b04-b7b7-4af7-b8d1-274c9c7626ff","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":24,"box":{"x":68,"y":234,"width":821,"height":11}},{"id":"54fc412a-91e6-40f2-b88a-482d934a5cb2","block_type":"box","text":"results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only","page_number":24,"box":{"x":69,"y":249,"width":829,"height":11}},{"id":"101c8e08-e821-4edb-aeec-3e869084ed51","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":24,"box":{"x":70,"y":264,"width":835,"height":11}},{"id":"48817183-5d73-4e8f-81f8-1e19dd032b89","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":24,"box":{"x":69,"y":279,"width":414,"height":11}},{"id":"9ec6ddac-2f9c-4898-974c-117872f12aed","block_type":"box","text":"Other Compensation Benefits.","page_number":24,"box":{"x":101,"y":302,"width":218,"height":11}},{"id":"27e99b74-8685-4281-a9a5-a14c4cd48845","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":24,"box":{"x":327,"y":302,"width":552,"height":11}},{"id":"85264bd1-8330-474d-93f2-9b9e183c5b36","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":24,"box":{"x":69,"y":317,"width":582,"height":11}},{"id":"52c23534-f413-4072-ba0a-f57e9ec863d0","block_type":"box","text":"Incentive Savings Plans —","page_number":24,"box":{"x":102,"y":340,"width":189,"height":11}},{"id":"ad5773ca-54c7-4ecf-a60d-bffae93da681","block_type":"box","text":"United Kingdom-based portfolio managers are also eligible to participate in broad","page_number":24,"box":{"x":296,"y":339,"width":584,"height":12}},{"id":"90fa242a-7e0c-4dca-8301-d01e36bf1f58","block_type":"box","text":"based plans offered generally to BlackRock employees, including broad-based retirement, health and other employee","page_number":24,"box":{"x":69,"y":355,"width":834,"height":11}},{"id":"0a8e2b74-6ebc-4102-85a5-cc5d485be527","block_type":"box","text":"benefit plans. For example, BlackRock has created a variety of incentive savings plans in which BlackRock employees","page_number":24,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"1224231a-ae9c-4e2d-8e11-fee42719e1ce","block_type":"box","text":"are eligible to participate, including the BlackRock Retirement Savings Plan (RSP) and the BlackRock Employee Stock","page_number":24,"box":{"x":69,"y":385,"width":836,"height":11}},{"id":"3f37bd91-5883-4fd0-af10-0fccfc5a75ca","block_type":"box","text":"Purchase Plan (ESPP). The employer contribution to the RSP is between 10% and 15% of eligible pay capped at","page_number":24,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"de3c2b2e-4e4f-45a7-a0f7-59cdd3b8e0f2","block_type":"box","text":"£160,000 per annum. The RSP offers a range of investment options, including several collective investment funds","page_number":24,"box":{"x":68,"y":415,"width":817,"height":11}},{"id":"ccac6283-e3d4-418d-bfe2-5f91a5e60278","block_type":"box","text":"managed by the firm. BlackRock contributions follow the investment direction set by participants for their own","page_number":24,"box":{"x":69,"y":430,"width":781,"height":11}},{"id":"162a34ce-8225-4b2d-baea-fffe73299c19","block_type":"box","text":"contributions or, in the absence of an investment election being made, are invested into a target date fund that","page_number":24,"box":{"x":69,"y":445,"width":794,"height":12}},{"id":"b4e16547-401a-48bd-bc58-d57c3cf83f5e","block_type":"box","text":"corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in","page_number":24,"box":{"x":69,"y":460,"width":823,"height":12}},{"id":"2d64dbe6-468e-4044-9858-8d4df0fb9f10","block_type":"box","text":"BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual","page_number":24,"box":{"x":70,"y":475,"width":784,"height":11}},{"id":"7523f878-6246-4091-8579-4ec94c00c222","block_type":"box","text":"participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a US dollar value of","page_number":24,"box":{"x":70,"y":491,"width":776,"height":11}},{"id":"ea1bc5a3-eb86-455a-b3a2-11d3a637e0c1","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":24,"box":{"x":69,"y":505,"width":808,"height":12}},{"id":"8d6b4f81-fc9c-4502-a318-a53c77e46ee5","block_type":"box","text":"participate in these plans.","page_number":24,"box":{"x":70,"y":521,"width":185,"height":11}},{"id":"108c8a7b-5e1e-46fc-91d0-cdc264ccbcb1","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":24,"box":{"x":69,"y":551,"width":268,"height":11}},{"id":"b75b5cce-20d1-4063-8755-7f6972ec2831","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":24,"box":{"x":101,"y":574,"width":731,"height":11}},{"id":"73e04763-e2a1-4415-9bbd-8fc8c74e65fa","block_type":"box","text":"beneficially owned by the portfolio managers in the Fund is shown below:","page_number":24,"box":{"x":69,"y":589,"width":519,"height":11}},{"id":"bc317ebf-4370-421a-b4c6-b591aded06be","block_type":"box","text":"Portfolio Manager","page_number":24,"box":{"x":69,"y":627,"width":105,"height":9}},{"id":"62c8f4e8-46c1-4716-b50b-3c5a14728083","block_type":"box","text":"Dollar Range of Equity","page_number":24,"box":{"x":759,"y":617,"width":129,"height":9}},{"id":"d5f0c545-045e-4756-b1f0-ad3e9c48b89d","block_type":"box","text":"Securities Beneficially Owned","page_number":24,"box":{"x":736,"y":627,"width":173,"height":9}},{"id":"f477e66b-1d9a-4d67-86a5-ffda289e8a39","block_type":"box","text":"Alastair Bishop . . .","page_number":24,"box":{"x":68,"y":645,"width":132,"height":11}},{"id":"d66f0a15-aee4-4695-89dc-cba5f58777f7","block_type":"box","text":"..............................................................","page_number":24,"box":{"x":206,"y":652,"width":499,"height":2}},{"id":"75fd0f12-9e1c-4ed4-915e-515dd57ef629","block_type":"box","text":"$100,001-$500,000","page_number":24,"box":{"x":749,"y":644,"width":148,"height":11}},{"id":"c24c7bbc-6d09-421a-8460-16f0a13febf0","block_type":"box","text":"Hannah Johnson, CFA . . . . . . . . . . .","page_number":24,"box":{"x":70,"y":660,"width":244,"height":11}},{"id":"a1f1a448-f013-4570-8c0f-7627560df352","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,","page_number":24,"box":{"x":320,"y":659,"width":480,"height":12}},{"id":"dfc85ae8-aba3-4fc5-a74a-bce6daae853a","block_type":"box","text":"001-$50,000","page_number":24,"box":{"x":802,"y":659,"width":95,"height":12}},{"id":"8617e859-1d72-4cab-bf10-862771e01286","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":24,"box":{"x":69,"y":692,"width":403,"height":11}},{"id":"d389e039-daf1-4dd0-8b11-73f7635dbde8","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":24,"box":{"x":102,"y":714,"width":727,"height":12}},{"id":"ba2e3c8c-40b4-49fa-8aaa-c3e64328787d","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":24,"box":{"x":70,"y":729,"width":814,"height":12}},{"id":"686cd8ab-68b5-4444-93cb-4d87ea174d71","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":24,"box":{"x":70,"y":744,"width":837,"height":11}},{"id":"64d06752-3acc-4adf-b336-21e2aece5dde","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":24,"box":{"x":70,"y":760,"width":810,"height":11}},{"id":"8c9b00d7-740c-42d7-97b7-4881b9334680","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":24,"box":{"x":69,"y":775,"width":782,"height":11}},{"id":"fdfb52ac-d134-4dac-bda3-ecff67958036","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":24,"box":{"x":69,"y":790,"width":830,"height":11}},{"id":"09c97aa5-5c2c-47a4-8942-c3ffcb133fb5","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":24,"box":{"x":69,"y":805,"width":828,"height":11}},{"id":"4c613af5-4184-47ab-b73f-7bfadcbcd526","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":24,"box":{"x":68,"y":820,"width":834,"height":11}},{"id":"7b3c86a1-a33d-4ca1-87c8-ce6fa8af712e","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":24,"box":{"x":70,"y":835,"width":777,"height":11}},{"id":"2623dc4d-6666-4a6f-9591-aa252b451e6f","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":24,"box":{"x":70,"y":850,"width":821,"height":12}},{"id":"cbf94dfd-01b8-49d4-b692-3e2b308f2a36","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":24,"box":{"x":69,"y":866,"width":819,"height":10}},{"id":"11b1e306-ea8d-4686-aeb6-8a3fdf2b724d","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":24,"box":{"x":69,"y":881,"width":832,"height":11}},{"id":"103e75cc-d3f9-40f5-bcfc-f87207b50332","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":24,"box":{"x":68,"y":896,"width":804,"height":11}},{"id":"a99fee94-6236-4035-9172-ae3bf85af146","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":24,"box":{"x":69,"y":911,"width":760,"height":11}},{"id":"9faac552-585a-4a86-948a-93548db0ec67","block_type":"box","text":"I-22","page_number":24,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"4310bb49-91f3-46bf-86fc-7c4a97e64eb2","block_type":"box","text":"NM1026U-5981128-24/232","page_number":24,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"063c7f8d-0a57-431a-9f9c-d918652b5fee","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":25,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"cb84b405-dc53-4872-adcc-0fb10d20b209","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":25,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"9aef92d6-6bd9-44a9-9183-68442c158164","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":25,"box":{"x":69,"y":75,"width":822,"height":11}},{"id":"00c2c133-1b9a-4d4a-9b1b-7bf8cf7d2515","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":25,"box":{"x":70,"y":90,"width":835,"height":11}},{"id":"467d6acb-7afe-4bcb-8050-19cb4e745209","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Mr. Bishop and Ms. Johnson may be","page_number":25,"box":{"x":69,"y":105,"width":808,"height":11}},{"id":"effcda55-70ca-48e5-89f6-aa5d2d6c214b","block_type":"box","text":"managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only","page_number":25,"box":{"x":69,"y":120,"width":811,"height":12}},{"id":"9264c6f4-23c0-4066-ac51-acc8bd8f6cb1","block_type":"box","text":"accounts, subject to incentive fees. Mr. Bishop and Ms. Johnson may therefore be entitled to receive a portion of any","page_number":25,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"617b79e5-c377-45b3-9e3f-788f112e4c67","block_type":"box","text":"incentive fees earned on such accounts.","page_number":25,"box":{"x":70,"y":150,"width":286,"height":9}},{"id":"41523abb-4f40-4290-b506-971b939bb630","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":25,"box":{"x":101,"y":173,"width":788,"height":11}},{"id":"81901604-48d1-4542-b8e3-c4447c41c92d","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":25,"box":{"x":70,"y":188,"width":839,"height":11}},{"id":"534aa21d-2534-4732-b94f-5b053297ba8e","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":25,"box":{"x":68,"y":203,"width":823,"height":12}},{"id":"1b8f7704-9ce2-4d94-95c8-fdec9f1b7fc8","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":25,"box":{"x":68,"y":218,"width":812,"height":12}},{"id":"05ac8408-e568-4e58-897e-a8f4c8fe52fd","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":25,"box":{"x":69,"y":234,"width":777,"height":11}},{"id":"dc6d8887-2708-4df5-923e-78e51df2d857","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":25,"box":{"x":70,"y":249,"width":826,"height":11}},{"id":"e4f9237c-7989-4c7a-a1a8-7e8d3eca1a77","block_type":"box","text":"Accounting Services","page_number":25,"box":{"x":68,"y":279,"width":150,"height":11}},{"id":"956c5bf0-6436-40e9-bd23-123352072907","block_type":"box","text":"The Bank of New York Mellon (“BNY Mellon”) provides certain accounting services to the Fund. BNY Mellon","page_number":25,"box":{"x":101,"y":302,"width":763,"height":11}},{"id":"2e2c910c-a0c3-4555-a974-261c77e414d0","block_type":"box","text":"maintains the books of account and other financial records (other than those maintained by the Fund’s custodian);","page_number":25,"box":{"x":69,"y":317,"width":816,"height":11}},{"id":"642db5f9-9641-4bab-a410-6dbd48de5312","block_type":"box","text":"records general ledger entries; calculates daily net income; reconciles activity to the trial balance; calculates and","page_number":25,"box":{"x":69,"y":332,"width":804,"height":11}},{"id":"3c0b029b-57f5-42d7-9b90-ddd49a042021","block_type":"box","text":"publishes daily net asset value; prepares account balances; and provides such other accounting services as may be","page_number":25,"box":{"x":70,"y":347,"width":829,"height":11}},{"id":"2e5d7cbe-b513-428c-a4ee-f8d8123081ae","block_type":"box","text":"required. In connection with its accounting services, BNY Mellon also provides certain administration services.","page_number":25,"box":{"x":69,"y":362,"width":789,"height":11}},{"id":"35bec36d-5a0b-498d-8648-3651fd090693","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY Mellon for accounting services for the fiscal years","page_number":25,"box":{"x":101,"y":385,"width":793,"height":11}},{"id":"2d2d097d-c28f-4156-9ceb-c81f1ce57cd1","block_type":"box","text":"shown:","page_number":25,"box":{"x":69,"y":400,"width":48,"height":9}},{"id":"12f68bd0-6d0a-454b-87b4-c46010f4d473","block_type":"box","text":"Fees Paid","page_number":25,"box":{"x":840,"y":428,"width":55,"height":7}},{"id":"89e9f8b3-2b62-4344-8075-920965140468","block_type":"box","text":"to BNY Mellon","page_number":25,"box":{"x":825,"y":438,"width":84,"height":7}},{"id":"4f796869-c4a7-48d4-b3e5-ff47d89709d3","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . .","page_number":25,"box":{"x":70,"y":456,"width":317,"height":11}},{"id":"f9d0a1f8-2bd8-4e81-83a6-002d47d6cc14","block_type":"box","text":"..................................................","page_number":25,"box":{"x":393,"y":463,"width":402,"height":2}},{"id":"2f469e21-59f2-4df7-aa32-b3993991426c","block_type":"box","text":"$84,211","page_number":25,"box":{"x":837,"y":455,"width":62,"height":11}},{"id":"023aac9f-0845-4367-8bd0-c05090616e0a","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . .","page_number":25,"box":{"x":70,"y":471,"width":317,"height":11}},{"id":"04e597d3-4c44-4ead-a75b-b92e659b1e14","block_type":"box","text":"..................................................","page_number":25,"box":{"x":393,"y":479,"width":402,"height":1}},{"id":"503abd22-d7b4-426c-a3b9-10dca8223319","block_type":"box","text":"$71,146","page_number":25,"box":{"x":837,"y":470,"width":61,"height":12}},{"id":"d2e37235-9af9-48a4-bc28-7f0fb066d342","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . .","page_number":25,"box":{"x":70,"y":486,"width":317,"height":11}},{"id":"38fb6c1f-7e56-4a6f-ba19-818db0a14be5","block_type":"box","text":"..................................................","page_number":25,"box":{"x":393,"y":494,"width":402,"height":1}},{"id":"971e5ab4-6987-4514-ae74-3ac5fb84f0a2","block_type":"box","text":"$82,760","page_number":25,"box":{"x":837,"y":486,"width":62,"height":11}},{"id":"6df0241e-2b3d-4c0f-8b55-64b1589b167f","block_type":"box","text":"Custodian","page_number":25,"box":{"x":69,"y":533,"width":72,"height":9}},{"id":"afd707de-e9ac-4708-9b13-a391e34dc382","block_type":"box","text":"BNY Mellon (the “Custodian”), which has its principal place of business at 240 Greenwich Street, New York, New","page_number":25,"box":{"x":102,"y":555,"width":805,"height":12}},{"id":"437d88bf-cd2f-473a-9bdf-5a1ce596cba8","block_type":"box","text":"York 10286, serves as the custodian for the Fund . The Custodian, among other responsibilities, maintains a custody","page_number":25,"box":{"x":68,"y":571,"width":840,"height":11}},{"id":"3dc32147-4a10-4152-9645-88fd317fa7ad","block_type":"box","text":"account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase and upon","page_number":25,"box":{"x":69,"y":586,"width":826,"height":11}},{"id":"276763c8-8bce-4999-ad12-5d9ff79d58d5","block_type":"box","text":"sale or maturity, and collects and receives all income and other payments and distributions on account of the assets","page_number":25,"box":{"x":69,"y":601,"width":832,"height":11}},{"id":"64c967c7-c767-4398-8214-caa0013c82e9","block_type":"box","text":"of the Fund.","page_number":25,"box":{"x":69,"y":616,"width":83,"height":9}},{"id":"3f51f997-cabc-4bdb-b9f2-b0662dc2e54d","block_type":"box","text":"Transfer Agent","page_number":25,"box":{"x":68,"y":646,"width":107,"height":11}},{"id":"49366a30-6de4-43eb-9b54-9066a286d276","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":25,"box":{"x":102,"y":669,"width":764,"height":11}},{"id":"3e6d3196-e3e3-40ba-9fad-e2dce5c768f7","block_type":"box","text":"Westborough, Massachusetts 01581, serves as the transfer agent and dividend disbursing agent for the Fund.","page_number":25,"box":{"x":68,"y":684,"width":792,"height":11}},{"id":"b508e0ff-ac4a-46d3-bd46-6c592eadb1f4","block_type":"box","text":"Credit Agreement","page_number":25,"box":{"x":69,"y":714,"width":129,"height":11}},{"id":"9414b6cf-6283-42e8-ace9-aec1751cfd1e","block_type":"box","text":"The Trust, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates","page_number":25,"box":{"x":101,"y":737,"width":757,"height":11}},{"id":"18bba3e1-a259-4a93-8d68-66db3f4b2744","block_type":"box","text":"(“Participating Funds”), is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":25,"box":{"x":69,"y":751,"width":817,"height":12}},{"id":"d1b47f97-81fa-4602-a158-91a71974684e","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":25,"box":{"x":68,"y":767,"width":743,"height":11}},{"id":"133948e4-a11d-4115-9aed-4c47e8f8c0c8","block_type":"box","text":"commitments designated for certain Participating Funds, the Participating Funds, including the Fund, can borrow up","page_number":25,"box":{"x":69,"y":782,"width":825,"height":12}},{"id":"cea2545d-fc19-4f37-8cde-0dcba9a47f44","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":25,"box":{"x":68,"y":797,"width":818,"height":12}},{"id":"8e005630-0d02-47f7-9970-6bb1d6a59c11","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":25,"box":{"x":70,"y":812,"width":761,"height":12}},{"id":"536c8c2d-e259-4ac9-99aa-3368051811ff","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":25,"box":{"x":69,"y":828,"width":768,"height":11}},{"id":"8493cb92-75c9-4e38-b735-e79152c2fad9","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses","page_number":25,"box":{"x":68,"y":843,"width":825,"height":11}},{"id":"e0ac21bd-21ac-4801-b995-9594f1f165e9","block_type":"box","text":"and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and","page_number":25,"box":{"x":69,"y":858,"width":805,"height":11}},{"id":"4e0e2b68-dfc7-4942-8cff-32a10f317dc0","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":25,"box":{"x":69,"y":873,"width":838,"height":11}},{"id":"51d7d5e9-fe15-43fc-8788-371b8f701cdc","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":25,"box":{"x":68,"y":888,"width":801,"height":11}},{"id":"ab28aee5-ecc5-4a48-a90c-6af52c0e6cf7","block_type":"box","text":"I-23","page_number":25,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"3be8b5b9-7fc4-4b67-84be-c6444975e2f0","block_type":"box","text":"NM1026U-5981128-25/232","page_number":25,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"17252ed7-ea39-4d2b-81e6-c1928e8675ae","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":26,"box":{"x":69,"y":45,"width":833,"height":11}},{"id":"0d83de97-adef-4ae2-ac50-0c7d73cac057","block_type":"box","text":"charged interest at a variable rate.","page_number":26,"box":{"x":69,"y":60,"width":245,"height":11}},{"id":"bf02f179-d8e9-4294-9b5b-e7d3a4f34336","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":26,"box":{"x":68,"y":90,"width":491,"height":11}},{"id":"4df73d1d-1970-44dc-be8b-61d67060bf1e","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":26,"box":{"x":102,"y":113,"width":773,"height":11}},{"id":"b76bc69e-4238-4fd9-8b7e-19e3f5a5f25a","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":26,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"0d420f0c-1bd5-4de2-a367-bfa93c80beb9","block_type":"box","text":"years. BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor.","page_number":26,"box":{"x":68,"y":143,"width":706,"height":11}},{"id":"ee1df477-aae6-43d5-a1be-5e0754d47b06","block_type":"box","text":"Investor A Shares","page_number":26,"box":{"x":659,"y":171,"width":102,"height":7}},{"id":"83fd0a57-cf62-49c3-8b77-9f0a7a0f4e4c","block_type":"box","text":"Gross","page_number":26,"box":{"x":530,"y":197,"width":33,"height":7}},{"id":"5f0c901d-5fbc-44f9-bd2e-8879b72e68b1","block_type":"box","text":"Sales","page_number":26,"box":{"x":531,"y":207,"width":31,"height":7}},{"id":"ac9a1b8a-5399-4819-9875-107c48c35553","block_type":"box","text":"Charges","page_number":26,"box":{"x":523,"y":217,"width":47,"height":9}},{"id":"4d837019-bb4e-4e76-a688-9b9ec1d6a654","block_type":"box","text":"Collected","page_number":26,"box":{"x":519,"y":227,"width":55,"height":7}},{"id":"98c8bfe0-0ea7-4337-98bd-5cba1e103887","block_type":"box","text":"Sales","page_number":26,"box":{"x":632,"y":197,"width":31,"height":7}},{"id":"150a8a5d-09d0-4c69-99d7-5d6f5b5e8823","block_type":"box","text":"Charges","page_number":26,"box":{"x":624,"y":207,"width":47,"height":9}},{"id":"de8b3cec-a2e4-46ab-8629-35d5cddd22e7","block_type":"box","text":"Retained by","page_number":26,"box":{"x":614,"y":217,"width":68,"height":9}},{"id":"b6664b31-4e4c-478b-a0ac-358671c23999","block_type":"box","text":"BRIL","page_number":26,"box":{"x":634,"y":227,"width":27,"height":7}},{"id":"2954dc18-08f2-4384-a8d7-ff5caf27ec4f","block_type":"box","text":"Sales Charges","page_number":26,"box":{"x":711,"y":207,"width":84,"height":9}},{"id":"a2a4e460-237e-4911-be3f-9bd8fbfca54d","block_type":"box","text":"Paid To","page_number":26,"box":{"x":733,"y":217,"width":41,"height":7}},{"id":"bcb70411-8ae0-4967-a4fe-ff0ce9084316","block_type":"box","text":"Affiliates","page_number":26,"box":{"x":727,"y":227,"width":52,"height":7}},{"id":"1c640487-d52d-40c3-9083-3d64f2a4ba61","block_type":"box","text":"CDSCs","page_number":26,"box":{"x":847,"y":187,"width":40,"height":7}},{"id":"c5b2ec2e-014b-4d41-89b8-b3c6cab0031d","block_type":"box","text":"Received on","page_number":26,"box":{"x":832,"y":197,"width":70,"height":7}},{"id":"7bfda449-0039-48ea-8189-c873f693e10e","block_type":"box","text":"Redemption of","page_number":26,"box":{"x":826,"y":207,"width":84,"height":9}},{"id":"fd505dd9-d346-4b3b-82a7-dc267f92c3f5","block_type":"box","text":"Load-Waived","page_number":26,"box":{"x":832,"y":217,"width":71,"height":7}},{"id":"6f48a923-21ee-43e9-9efd-4d8e20b208bd","block_type":"box","text":"Shares","page_number":26,"box":{"x":847,"y":227,"width":40,"height":7}},{"id":"b3d52825-9c5b-411e-8b9a-fc07d77be9ba","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . $111,808 $7,027 $7,027 $251","page_number":26,"box":{"x":70,"y":244,"width":816,"height":12}},{"id":"fda6ac4c-a2f2-4eaf-914e-2b3301f6e534","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . $ 47,383 $3,400 $3,400 $577","page_number":26,"box":{"x":70,"y":259,"width":816,"height":12}},{"id":"5e641c28-fdac-41bd-aae1-d11972dddb14","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . $ 45,918 $2,722 $2,722 $544","page_number":26,"box":{"x":70,"y":275,"width":816,"height":11}},{"id":"f834a6ea-2089-4122-8ef9-fd8e3ebba918","block_type":"box","text":"Investor C Shares","page_number":26,"box":{"x":760,"y":320,"width":103,"height":7}},{"id":"dd76a349-6235-43f7-95d1-9edc17835a2a","block_type":"box","text":"CDSCs Received","page_number":26,"box":{"x":713,"y":336,"width":97,"height":7}},{"id":"abac5470-47ec-4409-9e5d-3e26aaa1fba2","block_type":"box","text":"by BRIL","page_number":26,"box":{"x":740,"y":346,"width":44,"height":9}},{"id":"3ea55f86-8c4a-4997-8cce-49b00952a889","block_type":"box","text":"CDSCs Paid","page_number":26,"box":{"x":840,"y":336,"width":69,"height":7}},{"id":"4a0460c7-6ebb-4d9f-a9f6-82e80f8a4fb0","block_type":"box","text":"to Affiliates","page_number":26,"box":{"x":841,"y":346,"width":68,"height":7}},{"id":"091453df-4db5-47b5-bf2c-13d9d090fcd9","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":70,"y":363,"width":474,"height":12}},{"id":"c09b2427-16e8-45ad-87b6-4ea2b98c067a","block_type":"box","text":". . . . . . . . . . . . . . . . . $1,484 $1,484","page_number":26,"box":{"x":550,"y":363,"width":351,"height":11}},{"id":"154492c6-61d4-466f-9412-a7e57f18ce60","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":70,"y":379,"width":474,"height":11}},{"id":"9b7fe8fc-ae7f-4efc-a364-0c092961bbbc","block_type":"box","text":". . . . . . . . . . . . . . . . . $1,695 $1,695","page_number":26,"box":{"x":550,"y":378,"width":351,"height":11}},{"id":"c711362d-46aa-41e8-8f71-c698ca886f06","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":70,"y":394,"width":474,"height":11}},{"id":"dcabd7ab-bf77-4076-bd0d-b1b34de66b65","block_type":"box","text":". . . . . . . . . . . . . . . . . $3,980 $3,980","page_number":26,"box":{"x":550,"y":393,"width":351,"height":11}},{"id":"d142b62f-8102-46ad-b8a4-6426d381bba2","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Fund paid","page_number":26,"box":{"x":101,"y":418,"width":805,"height":11}},{"id":"4e22c082-ddc2-4e98-95e3-3265f65290cd","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plan. A portion of the fees collected by BRIL were paid to affiliates for providing","page_number":26,"box":{"x":68,"y":433,"width":796,"height":11}},{"id":"0bc490be-fd60-4c4d-95af-816a4e24c28c","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution-related","page_number":26,"box":{"x":69,"y":448,"width":826,"height":11}},{"id":"e0c9ff1c-a6cc-45e1-a74f-f6c0273fef0c","block_type":"box","text":"activities and services for Investor C Shares.","page_number":26,"box":{"x":69,"y":463,"width":318,"height":9}},{"id":"ec212b09-61a5-4f89-9c9e-0efb6ce1c9c1","block_type":"box","text":"Class Name","page_number":26,"box":{"x":69,"y":511,"width":68,"height":7}},{"id":"e3f4d192-7c06-4136-9e42-5baec07cdd4f","block_type":"box","text":"Fees Paid","page_number":26,"box":{"x":845,"y":491,"width":56,"height":7}},{"id":"66b87be0-a59d-4107-bd32-148503bfd90e","block_type":"box","text":"to BRIL","page_number":26,"box":{"x":851,"y":501,"width":44,"height":7}},{"id":"9a97a091-2473-487e-923e-0aadb77eb698","block_type":"box","text":"Investor A Shares . . .","page_number":26,"box":{"x":70,"y":529,"width":157,"height":9}},{"id":"c8e6b8ee-81f6-4b75-a9a9-15706092d7cc","block_type":"box","text":".......................................................................","page_number":26,"box":{"x":233,"y":537,"width":572,"height":1}},{"id":"810bcb91-fe58-4d74-b9c5-85cdb815f242","block_type":"box","text":"$300,189","page_number":26,"box":{"x":837,"y":528,"width":72,"height":12}},{"id":"f88b2178-e692-47bc-996a-de74383912da","block_type":"box","text":"Investor C Shares","page_number":26,"box":{"x":70,"y":544,"width":125,"height":9}},{"id":"49afdc9b-f8c3-4e01-afe9-e250012feaa0","block_type":"box","text":"...........................................................................","page_number":26,"box":{"x":200,"y":552,"width":605,"height":1}},{"id":"eede6db6-a757-49c3-8c66-59fc6037b258","block_type":"box","text":"$158,469","page_number":26,"box":{"x":837,"y":544,"width":72,"height":11}},{"id":"359b0b30-34b8-4571-a861-9bb7c08b04ea","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":26,"box":{"x":68,"y":576,"width":318,"height":11}},{"id":"ec493ebb-0386-4709-8035-974196b43bb6","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":26,"box":{"x":101,"y":598,"width":805,"height":12}},{"id":"ef99ba67-35e7-4f9c-9caa-c46d9daebe2b","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":26,"box":{"x":68,"y":613,"width":827,"height":12}},{"id":"2ed15e2b-089d-478f-9bed-ebbbe6906731","block_type":"box","text":"forth below.","page_number":26,"box":{"x":68,"y":629,"width":83,"height":9}},{"id":"27e561d7-fbbb-4b2c-bff4-4c058fde0b8e","block_type":"box","text":"Investor A Shares","page_number":26,"box":{"x":805,"y":657,"width":102,"height":7}},{"id":"dcc0e6aa-53ee-41e6-bb4d-09864c176841","block_type":"box","text":"Net Assets","page_number":26,"box":{"x":70,"y":675,"width":76,"height":9}},{"id":"7cf65be8-3215-473d-9135-69f87de5e163","block_type":"box","text":".............................................................................","page_number":26,"box":{"x":150,"y":682,"width":621,"height":1}},{"id":"d2e5cc0d-617e-44a9-ab3f-e521aa2d4fa2","block_type":"box","text":"$181,694,764","page_number":26,"box":{"x":803,"y":674,"width":106,"height":11}},{"id":"ba801fa8-ef3a-4055-a355-523267a68732","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":26,"box":{"x":70,"y":690,"width":245,"height":11}},{"id":"df10d7f8-ba95-4700-8022-a7a7b2e6272b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,","page_number":26,"box":{"x":321,"y":690,"width":524,"height":10}},{"id":"e37c841e-0955-476c-bbb3-d65a5459d3d8","block_type":"box","text":"958,393","page_number":26,"box":{"x":847,"y":690,"width":62,"height":10}},{"id":"4d9c1f5c-75e4-4885-8303-5c8654839bb7","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":26,"box":{"x":70,"y":705,"width":571,"height":11}},{"id":"7d018094-fdc4-4fe4-bd37-cc0a74b9333e","block_type":"box","text":"................","page_number":26,"box":{"x":647,"y":712,"width":124,"height":2}},{"id":"39db23a7-6aa3-4470-9a56-89af096ca84f","block_type":"box","text":"$12.15","page_number":26,"box":{"x":857,"y":704,"width":52,"height":11}},{"id":"a54d2df0-e6f8-4335-be43-aa00eb7fe8d1","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":26,"box":{"x":69,"y":720,"width":534,"height":11}},{"id":"9f800708-bdfa-4bee-88d8-614f64925e41","block_type":"box","text":"1","page_number":26,"box":{"x":604,"y":720,"width":4,"height":5}},{"id":"69cfb5cc-8c4f-4b5b-8592-5eebcab3c8b5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $0.67","page_number":26,"box":{"x":615,"y":719,"width":293,"height":11}},{"id":"c042145b-2cd7-4430-9b5a-4d37c1c33e1c","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":69,"y":739,"width":702,"height":12}},{"id":"8c1f23d7-c12e-4942-b7a2-cc458a4cf347","block_type":"box","text":"$12.82","page_number":26,"box":{"x":857,"y":739,"width":52,"height":10}},{"id":"4b3519cd-ebd6-4ff0-8b49-997ce3f4a1e0","block_type":"box","text":"1","page_number":26,"box":{"x":69,"y":772,"width":3,"height":3}},{"id":"3accca2d-b977-4b37-b4c5-fe4f1ba34b2a","block_type":"box","text":"Rounded to the nearest one hundredth percent; assumes maximum sales charge is applicable.","page_number":26,"box":{"x":94,"y":772,"width":542,"height":8}},{"id":"e4ef0e05-8e46-44a0-bad8-a329b9e60cce","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":26,"box":{"x":101,"y":792,"width":796,"height":12}},{"id":"f81373b6-94c8-4fb7-ad9a-643e4a0eb3cd","block_type":"box","text":"set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject to","page_number":26,"box":{"x":69,"y":807,"width":833,"height":12}},{"id":"05cf1c68-d933-46ea-baac-bc00b1e6b297","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":26,"box":{"x":69,"y":823,"width":813,"height":11}},{"id":"6069f740-1651-45ad-8d42-138debec873a","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":26,"box":{"x":69,"y":838,"width":377,"height":11}},{"id":"b30136cf-72cf-4c8c-b06f-958c86905273","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":26,"box":{"x":68,"y":868,"width":302,"height":11}},{"id":"36d7c184-c662-4dda-ace6-1557ea07186f","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":26,"box":{"x":102,"y":891,"width":609,"height":11}},{"id":"d96bc16a-64b4-4789-8cee-2dd54e4d1bc5","block_type":"box","text":"I-24","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"2f2d9353-4892-4779-ad2a-3918b6fc17cc","block_type":"box","text":"NM1026U-5981128-26/232","page_number":26,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ad095114-c7b9-47d4-82b5-f241e981aba6","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, during","page_number":27,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"eb629f61-5dc1-4eeb-9ebb-c2bbb34b188a","block_type":"box","text":"the periods shown, is set forth in the following table:","page_number":27,"box":{"x":68,"y":60,"width":376,"height":11}},{"id":"53d6a13b-b310-4fda-a7c9-4f2b8190e061","block_type":"box","text":"Aggregate Brokerage","page_number":27,"box":{"x":657,"y":93,"width":125,"height":9}},{"id":"80d362c0-40b3-4c64-891c-e57f20654c2b","block_type":"box","text":"Commissions Paid","page_number":27,"box":{"x":667,"y":103,"width":106,"height":7}},{"id":"7b8bd8d9-0925-4a4f-85d7-48ccbb3295f1","block_type":"box","text":"Brokerage","page_number":27,"box":{"x":831,"y":83,"width":59,"height":9}},{"id":"a7a6da0b-94f1-4134-9e0e-6708e5e49ea6","block_type":"box","text":"Commissions","page_number":27,"box":{"x":822,"y":93,"width":77,"height":7}},{"id":"bb69e30a-9b9f-4846-bb69-814d49b2c843","block_type":"box","text":"Paid to Affiliates","page_number":27,"box":{"x":813,"y":103,"width":96,"height":7}},{"id":"26af3a88-cbe3-4729-b2bc-74ea9f8f467a","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":70,"y":121,"width":450,"height":11}},{"id":"88821728-c47c-465f-9f40-1cd9bff0a56a","block_type":"box","text":".............","page_number":27,"box":{"x":527,"y":128,"width":99,"height":2}},{"id":"19741713-81de-4cc9-8073-6cadd0542789","block_type":"box","text":"$228,527 $0","page_number":27,"box":{"x":684,"y":120,"width":186,"height":11}},{"id":"8c9bc0dc-59dd-415d-ac0a-4dad3aad0be0","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":70,"y":136,"width":450,"height":11}},{"id":"3360d109-6968-4b31-a8f1-7b2636f22d0b","block_type":"box","text":".............","page_number":27,"box":{"x":527,"y":143,"width":99,"height":2}},{"id":"b893acbe-d6ef-440b-aec3-ddc2c75c907f","block_type":"box","text":"$179,548 $0","page_number":27,"box":{"x":684,"y":135,"width":186,"height":11}},{"id":"6d3b1be9-634d-4431-8ed2-259c73fbe4a7","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":70,"y":151,"width":450,"height":11}},{"id":"2f9d36b1-8816-4c14-bc2e-590acb036f23","block_type":"box","text":".............","page_number":27,"box":{"x":527,"y":159,"width":99,"height":1}},{"id":"a15747a2-b605-4720-9b19-f31a32a7fef1","block_type":"box","text":"$213,541 $0","page_number":27,"box":{"x":684,"y":150,"width":186,"height":12}},{"id":"3130731e-71e5-4b82-90f3-cb11a0b96012","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":27,"box":{"x":101,"y":175,"width":770,"height":11}},{"id":"80516ce2-dce0-474d-8712-19abc6ec96d5","block_type":"box","text":"28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as amended, and","page_number":27,"box":{"x":69,"y":190,"width":814,"height":11}},{"id":"be8d1cad-3ed1-4cff-a6ac-4ac9a49d82be","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026. The provision of","page_number":27,"box":{"x":68,"y":205,"width":829,"height":11}},{"id":"8c64b33f-6f1a-48c9-9220-4eae08b1baa9","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":27,"box":{"x":69,"y":220,"width":822,"height":12}},{"id":"959e2efc-af21-4964-99b9-cb2d86f4a97f","block_type":"box","text":"with such brokers.","page_number":27,"box":{"x":68,"y":236,"width":130,"height":8}},{"id":"2ce9f16e-59ce-43f4-85aa-ad666abfe330","block_type":"box","text":"Amount of Commissions","page_number":27,"box":{"x":325,"y":264,"width":141,"height":7}},{"id":"488adb0f-efb5-4195-8d1e-d1b7d87a7054","block_type":"box","text":"Paid to Brokers for","page_number":27,"box":{"x":341,"y":274,"width":109,"height":7}},{"id":"0706f99a-7321-435a-b3d8-8a873338d1d3","block_type":"box","text":"Providing 28(e) Eligible","page_number":27,"box":{"x":327,"y":284,"width":136,"height":9}},{"id":"9464f554-bd74-446b-8c7f-60f5bef972f5","block_type":"box","text":"Research Services","page_number":27,"box":{"x":342,"y":294,"width":107,"height":7}},{"id":"ba5cc6a7-bdcb-4fa9-b1da-7b8d5fbfd3aa","block_type":"box","text":"Amount of Brokerage","page_number":27,"box":{"x":528,"y":284,"width":124,"height":9}},{"id":"7a4c851e-0090-4f6f-9994-d37d112bfa99","block_type":"box","text":"Transactions Involved","page_number":27,"box":{"x":527,"y":294,"width":126,"height":7}},{"id":"8f060e5e-a693-40f7-920d-ebf76f73c28f","block_type":"box","text":"$0 $0","page_number":27,"box":{"x":386,"y":311,"width":213,"height":11}},{"id":"9dfb533b-aa12-4a98-b6c0-3d496d9a6659","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":27,"box":{"x":101,"y":336,"width":808,"height":11}},{"id":"11b84a0e-5ee2-4eec-81b0-b605109a6244","block_type":"box","text":"the Investment Company Act) or their parents whose shares were purchased during the fiscal year ended","page_number":27,"box":{"x":68,"y":351,"width":748,"height":11}},{"id":"11992e30-8434-4e56-bf3a-cc95d4880ef7","block_type":"box","text":"May 31, 2026.","page_number":27,"box":{"x":70,"y":366,"width":104,"height":11}},{"id":"da44ab4c-9c52-47f7-ba98-a9e9f5fffe30","block_type":"box","text":"Securities Lending","page_number":27,"box":{"x":68,"y":396,"width":135,"height":11}},{"id":"02401294-7c7e-425c-8d1e-adf8458dc679","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":27,"box":{"x":101,"y":419,"width":807,"height":11}},{"id":"ad6e5875-bfda-46ea-a4c2-02cbbba76354","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":27,"box":{"x":69,"y":434,"width":817,"height":11}},{"id":"e67b832b-689b-4641-b869-aa3e909e326c","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":27,"box":{"x":69,"y":449,"width":813,"height":11}},{"id":"1568a517-e69f-4282-a23b-6e0aa554382a","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":27,"box":{"x":70,"y":464,"width":838,"height":11}},{"id":"fedb10b9-9efa-45e7-b9c7-991a9eac46a8","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":27,"box":{"x":69,"y":479,"width":813,"height":12}},{"id":"a07aeb8f-c5e2-4e88-95f2-a5a2ab52f54b","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":27,"box":{"x":70,"y":495,"width":646,"height":11}},{"id":"1e3304e3-d4ef-45dd-afab-5b183e27d61d","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":27,"box":{"x":101,"y":517,"width":735,"height":11}},{"id":"137d137c-0015-4c91-b3e9-42dbe4ae7e05","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":27,"box":{"x":69,"y":532,"width":834,"height":11}},{"id":"3a732959-2cf0-4bbe-9832-bc67381c90c0","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":27,"box":{"x":70,"y":547,"width":822,"height":11}},{"id":"9593222f-d2d8-4e32-a143-647d3105cc27","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":27,"box":{"x":69,"y":562,"width":787,"height":12}},{"id":"3564c4d7-f8c7-4601-945c-876e8e5854ef","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":27,"box":{"x":69,"y":578,"width":783,"height":11}},{"id":"9e97ac27-b26e-449e-af41-71c989afcd1e","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":27,"box":{"x":70,"y":593,"width":800,"height":11}},{"id":"725bb2af-c90d-4964-bfe4-91c7ce51032f","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":27,"box":{"x":70,"y":608,"width":813,"height":11}},{"id":"0359ee49-5139-4aba-8191-79800906c551","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":27,"box":{"x":70,"y":623,"width":830,"height":11}},{"id":"bf7ff5a7-b347-4ac7-92c9-843e8a9918b9","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":27,"box":{"x":69,"y":638,"width":773,"height":11}},{"id":"5f4c2122-f8bb-486e-8cc6-c8d00d485cc0","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":27,"box":{"x":101,"y":661,"width":776,"height":11}},{"id":"7b62944e-be1e-44b3-aff7-8a30c2f413ce","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":27,"box":{"x":69,"y":676,"width":831,"height":11}},{"id":"d0cb052e-4144-46a6-b546-3d0dd6eb78eb","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":27,"box":{"x":68,"y":691,"width":812,"height":11}},{"id":"b20f1514-6bdb-4470-a126-c47ce04fc0e4","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":27,"box":{"x":69,"y":706,"width":799,"height":11}},{"id":"04a890d1-58fd-44f1-86b5-4d5abd7196d8","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":27,"box":{"x":68,"y":721,"width":835,"height":11}},{"id":"e31b5464-cf3f-47ad-b486-fc5eedc2bba4","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":27,"box":{"x":69,"y":736,"width":818,"height":12}},{"id":"931e8b97-9eae-47ab-8287-64e8d830fb4a","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":27,"box":{"x":68,"y":751,"width":789,"height":12}},{"id":"4bd833af-fdb0-41c9-90dd-b7dbe9d344d2","block_type":"box","text":"making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount","page_number":27,"box":{"x":69,"y":766,"width":829,"height":12}},{"id":"884f0ef5-6bc2-42bb-910b-d76cef488037","block_type":"box","text":"of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":27,"box":{"x":69,"y":782,"width":839,"height":11}},{"id":"025e5d43-6df0-4894-b77a-981f02cc8505","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":27,"box":{"x":69,"y":797,"width":802,"height":11}},{"id":"ca4b9b3c-b9d7-4451-9d71-98dd642dedca","block_type":"box","text":"portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value","page_number":27,"box":{"x":70,"y":812,"width":830,"height":11}},{"id":"a475cf4f-1d42-411d-a25b-fa35b5905c18","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":27,"box":{"x":69,"y":827,"width":838,"height":11}},{"id":"2d2da644-1870-48ad-b1d1-2c228bb72416","block_type":"box","text":"Fund’s returns on securities lending.","page_number":27,"box":{"x":70,"y":842,"width":258,"height":11}},{"id":"866f3c5a-23b4-4392-8c57-c0dd525f34c9","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":27,"box":{"x":102,"y":865,"width":774,"height":11}},{"id":"3baa4cb1-a8eb-45b9-8054-2c673c1e5c05","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":27,"box":{"x":69,"y":880,"width":794,"height":11}},{"id":"212316c6-ad57-40e8-b102-ae77249e4349","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":27,"box":{"x":68,"y":895,"width":809,"height":11}},{"id":"c5c0efae-6112-4de6-b15d-cc7b5504e638","block_type":"box","text":"Trust and BIM.","page_number":27,"box":{"x":68,"y":910,"width":103,"height":9}},{"id":"377f1960-d6c3-4439-a3e7-1b119df3fdbe","block_type":"box","text":"I-25","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b97005ff-5f32-46cc-9744-788dcd165070","block_type":"box","text":"NM1026U-5981128-27/232","page_number":27,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7be5dafb-9d38-481f-b180-61b0d37897d6","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 82% of securities","page_number":28,"box":{"x":102,"y":45,"width":783,"height":11}},{"id":"01c35c7b-db8b-4f92-9d8b-ce7d43a94108","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":28,"box":{"x":70,"y":60,"width":815,"height":11}},{"id":"3c0a3cec-580a-4f7e-b94f-0e3dc19d3834","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":28,"box":{"x":69,"y":75,"width":463,"height":11}},{"id":"80d99e0a-8882-4384-9ec0-94b7ff25ce08","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":28,"box":{"x":102,"y":98,"width":753,"height":11}},{"id":"a1ac36c1-a77d-4d82-b531-4bca6ed36bd0","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":28,"box":{"x":69,"y":113,"width":778,"height":11}},{"id":"1be1c4c2-0ac4-4896-bb10-c701517cd779","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":28,"box":{"x":70,"y":128,"width":817,"height":11}},{"id":"bed006a0-af5f-4d52-a781-50b5c3719f6d","block_type":"box","text":"lending income as follows: (i) 85% of securities lending income (which excludes collateral investment fees); and","page_number":28,"box":{"x":70,"y":143,"width":794,"height":11}},{"id":"2761fc94-0ab5-4dcc-9ca3-89cf9df1023e","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":28,"box":{"x":69,"y":158,"width":825,"height":11}},{"id":"caeb37e9-8e34-462a-8b19-b3a8dacb2a54","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":28,"box":{"x":102,"y":181,"width":683,"height":11}},{"id":"a0b90de6-93e7-491e-8e0b-283fa6782ca3","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":28,"box":{"x":101,"y":203,"width":803,"height":12}},{"id":"89c4a35e-d53b-4e09-ad9c-c4c9a0a91861","block_type":"box","text":"the following:","page_number":28,"box":{"x":68,"y":218,"width":93,"height":12}},{"id":"ccc43cbe-4cf1-4dfe-a925-c8ab3df287fa","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":28,"box":{"x":69,"y":239,"width":818,"height":11}},{"id":"33458d03-1f28-4014-af22-7e50a858d474","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":28,"box":{"x":102,"y":254,"width":333,"height":10}},{"id":"8264bded-f9d4-4b5b-9131-d6fe615fa5c7","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":28,"box":{"x":69,"y":274,"width":538,"height":11}},{"id":"54abd453-89f5-45c4-afc8-cc914061f716","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":28,"box":{"x":69,"y":294,"width":330,"height":11}},{"id":"1ee5d3f6-3276-426b-b3dd-70ab95189e82","block_type":"box","text":"(4) monitoring the daily value of the loaned securities and directing the payment of additional collateral or the return","page_number":28,"box":{"x":69,"y":314,"width":834,"height":12}},{"id":"f6062ebc-ac66-4bdf-a1f2-5d89fc318b9e","block_type":"box","text":"of excess collateral, as necessary;","page_number":28,"box":{"x":102,"y":329,"width":246,"height":12}},{"id":"83aebe05-5a7d-49aa-a258-ad428a32dc95","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":28,"box":{"x":69,"y":350,"width":562,"height":11}},{"id":"a92d6e1a-2b9f-49e9-9c87-e3b76051c2df","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":28,"box":{"x":69,"y":370,"width":665,"height":11}},{"id":"35c3ba92-01af-4df6-a10f-27dbb117161c","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":28,"box":{"x":69,"y":390,"width":822,"height":11}},{"id":"d41e6d40-f3dd-443e-8736-139feb0e582e","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":28,"box":{"x":101,"y":405,"width":803,"height":11}},{"id":"63e18277-abf6-45e2-a9d4-b8f4e18c0eab","block_type":"box","text":"of the loaned securities; and","page_number":28,"box":{"x":102,"y":420,"width":203,"height":11}},{"id":"8d06fdcd-954a-49e2-9b85-a2d465dfacce","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":28,"box":{"x":69,"y":440,"width":808,"height":12}},{"id":"bd3b6b74-76d6-42c2-9bb3-59e3906f8be7","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":28,"box":{"x":101,"y":463,"width":805,"height":11}},{"id":"177895ef-23b6-4fca-87eb-01fb07bf15d0","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":28,"box":{"x":69,"y":478,"width":546,"height":11}},{"id":"55e31d20-7e19-4c7d-97e2-1d247bac899c","block_type":"box","text":"Gross income from securities lending activities","page_number":28,"box":{"x":69,"y":506,"width":343,"height":11}},{"id":"8bc6f7b1-06f2-4769-953c-3218174d46e3","block_type":"box","text":"..................................................","page_number":28,"box":{"x":414,"y":513,"width":401,"height":2}},{"id":"80deb40a-d66a-481a-a8d7-1e754d2ee4a0","block_type":"box","text":"$270,339","page_number":28,"box":{"x":837,"y":505,"width":72,"height":12}},{"id":"3fe0abbf-4348-412c-b9b6-ac0429e3a055","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":28,"box":{"x":70,"y":525,"width":565,"height":12}},{"id":"b08947fb-6089-4244-b265-0ea7ecf53840","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent .","page_number":28,"box":{"x":79,"y":540,"width":565,"height":12}},{"id":"a62d982a-9515-4184-91c9-684047b14dc8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $ 13,806","page_number":28,"box":{"x":650,"y":540,"width":259,"height":11}},{"id":"d893f709-0e2c-4f44-a498-a2f061c536ae","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":28,"box":{"x":79,"y":556,"width":679,"height":11}},{"id":"f1c329fc-f102-4b81-987d-a7bc983c23b3","block_type":"box","text":". . . . . . . $ 2,473","page_number":28,"box":{"x":765,"y":555,"width":144,"height":11}},{"id":"aba69b47-0bcf-47f4-b835-c7c83f31adb0","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM","page_number":28,"box":{"x":78,"y":571,"width":519,"height":11}},{"id":"a4fb2358-a56a-4a2e-9960-739987adf2a9","block_type":"box","text":"........................... $ 0","page_number":28,"box":{"x":602,"y":570,"width":307,"height":10}},{"id":"6c30dde8-73a9-45aa-8f4a-1d5505cd5951","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM","page_number":28,"box":{"x":79,"y":586,"width":526,"height":11}},{"id":"ce342652-6bf8-4024-936b-8b664c171bd6","block_type":"box","text":".......................... $ 0","page_number":28,"box":{"x":610,"y":585,"width":299,"height":11}},{"id":"bd09edcf-f57d-418f-a94e-53b9428d81da","block_type":"box","text":"Rebates (paid to borrowers)","page_number":28,"box":{"x":79,"y":601,"width":197,"height":11}},{"id":"20fcae25-5590-4b45-a593-ed07b9128920","block_type":"box","text":"..................................................................","page_number":28,"box":{"x":284,"y":608,"width":531,"height":2}},{"id":"ed113e20-d7a5-4ad4-a8f3-676e19cc64b1","block_type":"box","text":"$189,318","page_number":28,"box":{"x":837,"y":600,"width":72,"height":11}},{"id":"d11ae192-bf4f-4229-9294-34eba46e1ead","block_type":"box","text":"Other fees not included in securities lending income paid to BIM . . . . . . . . .","page_number":28,"box":{"x":79,"y":616,"width":532,"height":11}},{"id":"43362026-a885-43c5-9853-5ac3b67a8116","block_type":"box","text":"......................... $ 0","page_number":28,"box":{"x":618,"y":615,"width":291,"height":11}},{"id":"f3e1dddd-aab1-4cbf-878d-49c387c8f2b6","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":28,"box":{"x":68,"y":631,"width":455,"height":11}},{"id":"7ea2fe58-a0af-4dfb-bb55-0a50b1260de6","block_type":"box","text":"....................................","page_number":28,"box":{"x":528,"y":639,"width":287,"height":1}},{"id":"99c521de-a2d4-4ae7-942e-3b48a7ead8e7","block_type":"box","text":"$205,597","page_number":28,"box":{"x":837,"y":630,"width":72,"height":12}},{"id":"0c4729cc-62dd-405f-abfb-99ddb611eafa","block_type":"box","text":"Net income from securities lending activities","page_number":28,"box":{"x":69,"y":651,"width":327,"height":11}},{"id":"b606ad9f-753e-4ce4-b30d-99f7d6bab5e2","block_type":"box","text":"...................................................","page_number":28,"box":{"x":406,"y":658,"width":409,"height":2}},{"id":"a2af1dbe-f3f9-4b26-8f1c-b737b390723c","block_type":"box","text":"$ 64,742","page_number":28,"box":{"x":837,"y":650,"width":72,"height":12}},{"id":"ca1345df-b5db-47c5-b04a-e00dd06b165b","block_type":"box","text":"VIII. Additional Information","page_number":28,"box":{"x":68,"y":687,"width":195,"height":9}},{"id":"17bf2464-0d89-44de-91d8-234c33f48c38","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":28,"box":{"x":102,"y":709,"width":352,"height":11}},{"id":"e070539d-552b-43b9-94d6-3ae91648ccbf","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":28,"box":{"x":461,"y":709,"width":412,"height":11}},{"id":"8c267f6f-11dd-477b-9f82-4e68108c4ce8","block_type":"box","text":"Street, Boston, MA 02110, serves as the Fund’s independent registered public accounting firm.","page_number":28,"box":{"x":69,"y":724,"width":685,"height":12}},{"id":"a481d9eb-df8b-4fd1-8af3-0fa8119f480a","block_type":"box","text":"Counsel.","page_number":28,"box":{"x":101,"y":747,"width":62,"height":9}},{"id":"fc253a25-3183-4af9-8623-6fceb3b0bc42","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":28,"box":{"x":170,"y":747,"width":736,"height":11}},{"id":"d56e2d17-8855-40a0-90fe-f9985cd37a44","block_type":"box","text":"the Fund’s counsel.","page_number":28,"box":{"x":68,"y":762,"width":139,"height":9}},{"id":"fe966ea0-357e-4f9b-a2f3-0b563dc1ba11","block_type":"box","text":"The Trust","page_number":28,"box":{"x":68,"y":793,"width":69,"height":8}},{"id":"4544d8c8-eed6-4be6-a3c7-9d864cc4fd5b","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on December 22, 1988, and is registered under the","page_number":28,"box":{"x":101,"y":815,"width":807,"height":11}},{"id":"c440c2e1-42f5-463c-addf-0b9b4c314ba1","block_type":"box","text":"Investment Company Act as an open-end management investment company. Effective January 31, 1998, the Trust","page_number":28,"box":{"x":70,"y":830,"width":816,"height":11}},{"id":"8bc2478c-37f0-4bed-b3a8-321f636d4a7e","block_type":"box","text":"changed its name from Compass Capital Funds","page_number":28,"box":{"x":69,"y":845,"width":337,"height":12}},{"id":"7b30012e-a018-42a9-a099-678334ef4211","block_type":"box","text":"SM","page_number":28,"box":{"x":407,"y":846,"width":11,"height":4}},{"id":"29457564-8bc8-4951-a249-25fe7f3bed44","block_type":"box","text":"to BlackRock Funds","page_number":28,"box":{"x":423,"y":846,"width":140,"height":8}},{"id":"eb8e0ad3-d725-4617-b6cf-fa676fc20db7","block_type":"box","text":"SM","page_number":28,"box":{"x":564,"y":846,"width":11,"height":4}},{"id":"bb1e9976-404e-430c-9318-21d3a6e48f93","block_type":"box","text":". The Fund is classified as diversified. The","page_number":28,"box":{"x":577,"y":845,"width":298,"height":9}},{"id":"eb5fcff2-c67a-4294-a50f-c9bdba0d1f09","block_type":"box","text":"Trust is authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per","page_number":28,"box":{"x":68,"y":860,"width":792,"height":11}},{"id":"da5c8563-77a4-4c5d-9d04-7ccf821cae6b","block_type":"box","text":"share, which may be divided into different series and classes.","page_number":28,"box":{"x":69,"y":875,"width":441,"height":12}},{"id":"b2cb0e92-cd8b-47f1-a438-0d5fc647eeb6","block_type":"box","text":"I-26","page_number":28,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c48baf80-105a-44b8-ab08-a47a39851f95","block_type":"box","text":"NM1026U-5981128-28/232","page_number":28,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6e3ade9d-7705-4a44-ae2a-7b71ce4d42e0","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under certain circumstances, be held","page_number":29,"box":{"x":102,"y":45,"width":734,"height":11}},{"id":"4591ba5a-1b67-4b91-8b15-0ece1f74e0db","block_type":"box","text":"personally liable as partners for the obligations of the Trust. 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In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":32,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"69efa6ec-fba2-4734-80ba-e8e9b59a29c4","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":32,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"da9b931a-370a-4f4b-8f1a-55212236ec32","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":32,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"73cf4f26-8020-4262-85af-3f2a63608362","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":32,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"d83dd87d-dd42-463a-8c9d-944b09dfc318","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":32,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"652d505b-fde0-42d1-bed3-cc477ba6a509","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":32,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"3c2183cf-9f6b-4945-8922-a20516539c45","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":32,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"13930241-b122-416c-b7eb-7c8cbb33a394","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":32,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"47160631-3812-4728-9d38-2b108f54d5a7","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":32,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"166dfa2a-f494-4cb4-a154-5adccbad2c77","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":32,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"34fac057-f2aa-4177-a340-6d5e184727a6","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":32,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"e77b6ad5-37df-4d16-9658-b66fd4724e2b","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":32,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"3cd87223-db1d-4dec-aa6c-039f88bd7036","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":32,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"ee30b507-b9f4-468e-aac3-0e7d22ab1417","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. 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Information that does not apply to a Covered Fund does not form","page_number":32,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"12d93d8a-1f86-4b2e-8179-5c6bd4cdb1e9","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":32,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"7f796e3f-3d16-4dff-bcad-4fa0e417ac8e","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":32,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"29d1e17b-4a65-4d47-80a2-d13fd59b4fc7","block_type":"box","text":"Asset-Backed Securities.","page_number":32,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"1e7f20cc-0488-4c22-b526-e529b6dd8b9a","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":32,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"ec2ac929-72a3-41cf-a1e6-7a4682327b6f","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":32,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"55696f07-307f-47d5-934c-b56c2be1ca6d","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":32,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"449e4b39-fa84-41ef-b19e-b692e52102e5","block_type":"box","text":"credit card receivables) are passed through to a Fund. The value of asset-backed securities, like that of traditional","page_number":32,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"8d6b0411-b4da-4d9c-8ae0-2a96e523fe71","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":32,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"c0cf5267-3c70-42dc-baf4-530673a9752b","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":32,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"921553be-6193-4c96-961b-0b8fab950c9a","block_type":"box","text":"price paid by a Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and","page_number":32,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"39090c40-ecf4-4588-9513-8c0b27551ad6","block_type":"box","text":"the average life of the securities are based on a number of factors, including the anticipated rate of prepayment of","page_number":32,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"8efebc13-a8eb-4781-9b26-3c0205f845bb","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":32,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"fcbe0620-34f4-4dc1-ab84-3c2422290945","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":32,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"562cea2b-036d-4cc3-9f9e-2a5e05f52127","block_type":"box","text":"Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely receive a rate of","page_number":32,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"32dfe499-5953-4c8e-81b3-a07f23f0e897","block_type":"box","text":"interest that is lower than the rate on the security that was prepaid. To the extent that a Fund purchases asset","page_number":32,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"d697eb20-5ee5-4268-b4eb-453a09f56658","block_type":"box","text":"backed securities at a premium, prepayments may result in a loss to the extent of the premium paid. If a Fund buys","page_number":32,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"72bf9d40-2141-4d61-bdfa-587e6813ab24","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":32,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"684c3f97-5d3f-4252-b163-88be17533ba4","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":32,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"26319408-9c01-4ae9-a946-347e0b82b501","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":32,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"89bc806e-af3e-41a4-a81a-07273e02ea85","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":32,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"f6af051e-41b1-4195-89db-dd6fcba8ab91","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":32,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"40aa920d-e65a-471d-a20c-a0a4526efa60","block_type":"box","text":"II-1","page_number":32,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"cf10da7e-08b6-4134-b66c-7ffc0af35532","block_type":"box","text":"NM1026U-5981128-32/232","page_number":32,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c1703d0c-a67c-4daa-9673-1ab89e05aa9d","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":33,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"4d202d4c-89ce-4d57-ae4d-ec660e529eba","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":33,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"3ab86dbe-ceea-40ae-9e5e-f1b4da9cba72","block_type":"box","text":"interest rates decline, the value of an asset-backed security with prepayment features may not increase as much as","page_number":33,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"bd1aa61a-e5ac-4afd-8e97-43aadd570ecd","block_type":"box","text":"that of other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate or","page_number":33,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"64c39353-66bf-4f0c-a60e-8f4619570594","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":33,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"b0c6dc5b-efe7-4856-876f-fa7da7bb114d","block_type":"box","text":"Asset-Based Securities.","page_number":33,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"273d1f0e-5cef-407d-9a75-e452cfa6c95b","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":33,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"ed1723e6-b057-4763-b20e-47add0a12b20","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":33,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"d212f703-df51-4a5a-ab5c-2c0e54a8f6cc","block_type":"box","text":"asset such as gold bullion. These securities are referred to as “asset-based securities.” A Fund will purchase only","page_number":33,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"bdfa88a8-314d-44ba-9a20-a52c562b3d5e","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":33,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"757acdf9-7fcc-4002-bc11-0c002c3cf935","block_type":"box","text":"investment grade (for example, AAA, AA, A or BBB by S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by","page_number":33,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"1b86ef5f-feb7-4c6d-87c1-f8143a865f29","block_type":"box","text":"Moody’s Investors Service, Inc. (“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by","page_number":33,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"e6c563a5-220f-4708-8dd3-e846ae2e4678","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":33,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"986eddf2-5e02-4609-b522-5680f5442def","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":33,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"57308ecb-80ef-449c-b064-d92a68cfa1f3","block_type":"box","text":"likely to be downgraded than securities rated in the three highest rating categories. If an asset-based security is","page_number":33,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"2049c8b3-1a17-4f26-a43b-fbf53adf6f2d","block_type":"box","text":"backed by a bank letter of credit or other similar facility, the Manager may take such backing into account in","page_number":33,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"5089ed73-bd82-4874-94e5-f8bc2c2c2ae7","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":33,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"370a746a-16ee-47f5-848c-08ea01ae0cb1","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":33,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"acf6e218-f1c8-42df-8f33-8f6f46c8fb28","block_type":"box","text":"the two price movements. Asset-based securities may not be secured by a security interest in or claim on the","page_number":33,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"a447bd01-f294-414c-9db6-236aa47c735c","block_type":"box","text":"underlying natural resource asset. The asset-based securities in which a Fund may invest may bear interest or pay","page_number":33,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"d8d5f334-91c3-4331-87c8-6fff0525ef0c","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":33,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"6b46e7d3-d48f-4b3f-8db6-194ede70ea2e","block_type":"box","text":"at maturity in cash at the stated principal amount or, at the option of the holder, directly in a stated amount of the","page_number":33,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"58b15d90-c164-4be4-9d00-ab70c7113897","block_type":"box","text":"asset to which it is related. In such instance, because no Fund presently intends to invest directly in natural resource","page_number":33,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"e9fea698-d56b-417a-ad0f-3d436169e127","block_type":"box","text":"assets, a Fund would sell the asset-based security in the secondary market, to the extent one exists, prior to","page_number":33,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"b03b5d6d-2761-4c0a-b818-951cedeb1344","block_type":"box","text":"maturity if the value of the stated amount of the asset exceeds the stated principal amount and thereby realize the","page_number":33,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"f08294f8-5295-4e19-9b9b-030c0126f9cb","block_type":"box","text":"appreciation in the underlying asset.","page_number":33,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"a544c82e-ecd5-4448-871d-d99e672d1671","block_type":"box","text":"Precious Metal-Related Securities.","page_number":33,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"6152a42e-e0a2-47aa-aa9b-df4801ca67b9","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":33,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"2dfda0d3-aacc-4050-9d39-24d024b51aac","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":33,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"79c7fca0-ee74-4979-8ae1-61905861951a","block_type":"box","text":"e.g.","page_number":33,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"cb566a51-255d-49dc-a5b5-f4269df78005","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":33,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"937ff126-d426-4564-9888-8b004779d19d","block_type":"box","text":"indexed to the value of such metals. Such securities may be purchased when they are believed to be attractively","page_number":33,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"eb52feea-fa60-48e4-a491-517571b8a631","block_type":"box","text":"priced in relation to the value of a company’s precious metal-related assets or when the values of precious metals","page_number":33,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"c2491148-cf01-4004-8591-b164a0607ec4","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":33,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"0b9ae374-221f-41a4-8f2e-758f0817f426","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":33,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"dd4a5a90-e3fc-488d-a97d-a1e9015c5d8b","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":33,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"1f8a812b-e922-411a-a6f0-1bbafded33ea","block_type":"box","text":"metal prices during such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":33,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"695dcc56-8057-4e99-ad35-4264367a6e00","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":33,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"48619861-8bda-40e9-b264-408c8c392dd9","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":33,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"3748dfa0-32d9-49f7-92f3-60fc27df2a3f","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":33,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"a1ba1790-7a7c-4e84-9343-f38f96c28739","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":33,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"7826475b-2193-4f47-b8e8-a047eee58975","block_type":"box","text":"South African gold production.","page_number":33,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"d65b8875-cf87-4943-a58b-c868f09db185","block_type":"box","text":"Borrowing and Leverage.","page_number":33,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"94a6c13b-4f08-49cb-81b4-4abae8f1dad7","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":33,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"727f5e0a-42c9-480f-a352-3700fadb3da3","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":33,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"d70ad462-7d9c-4fe7-86ba-7f30462bee81","block_type":"box","text":"securities at any time when borrowings exceed 5% of their total assets, except (a) to honor prior commitments or","page_number":33,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"82ab53b5-0150-4da2-b7ca-2acceb671b62","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":33,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"fcbd55e1-eafd-4995-948d-90dce32e55a7","block_type":"box","text":"other securities transactions.","page_number":33,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"8b626c20-5b3e-4dc8-8cba-56d206a070bd","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":33,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"89e9e2b4-5ddb-47ea-8754-f2657ec1dc1c","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":33,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"6587313b-509e-4c64-9379-7adf4212bcaa","block_type":"box","text":"leveraging increases the Fund’s exposure to capital risk, and borrowed funds are subject to interest costs that will","page_number":33,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"28aed62e-c502-4b8c-baf1-70b102cc2d4f","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":33,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"0684ef21-aa50-4b73-9121-a7c0d2eee17d","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":33,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"4160c5f6-173d-489a-87e2-8e17c3122eec","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":33,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"04f9d6ff-f316-45d8-bbfd-b15f847266b7","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":33,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"b67e59dc-5078-492a-925f-55ba80927ebe","block_type":"box","text":"for the Fund that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":33,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"0a9a19eb-b6be-4018-922b-bea6faf98d8b","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":33,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"77fe716c-15aa-4eeb-9bc0-1d6f94ef8305","block_type":"box","text":"pay on the borrowings, the Fund’s return will be greater than if leverage had not been used. Conversely, if the income","page_number":33,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"afde8864-ef36-4283-ac80-a63d991d8537","block_type":"box","text":"or capital appreciation from the securities purchased with such borrowed funds is not sufficient to cover the cost of","page_number":33,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"e23f52ad-377f-4682-851e-5bcd5b1970e4","block_type":"box","text":"borrowing, the return to the Fund will be less than if leverage had not been used and, therefore, the amount available","page_number":33,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"8832b0e9-5fe3-41be-bde4-cbe82a6a6029","block_type":"box","text":"for distribution to shareholders as dividends will be reduced. In the latter case, the Manager in its best judgment","page_number":33,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"45d1649f-ad28-4a8c-ae5e-9e7c4425b00b","block_type":"box","text":"II-2","page_number":33,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"7179dddc-221c-4b0e-a562-6bf413cf86e3","block_type":"box","text":"NM1026U-5981128-33/232","page_number":33,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2ce5046e-1845-4d76-9649-126cdd10d603","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":34,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"cb76064d-4067-4652-bd23-a257bb74ef87","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":34,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"5a1d94d2-5446-49d1-8f02-dae54e7187d2","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":34,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"f195eec0-91d4-4aec-b1f8-3166405822af","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":34,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"2eecebf0-6a5c-432c-8242-217f800023e3","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":34,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"724b4b28-4651-4cd9-89fb-4579c9fea0c7","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":34,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"00cb7f20-6510-4bc9-830c-d3480b68748d","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":34,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"8239db8d-26fe-4017-93a5-3c407e49d37b","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":34,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"149866d6-342d-4e19-8325-4799543f84c4","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such borrowings are","page_number":34,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"8f765643-c97d-419c-8670-04aaad95cb75","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":34,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"1f8e0dd1-99da-426e-8f0b-d48fdf1c9e13","block_type":"box","text":"Cash Management.","page_number":34,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"00d6feea-ded2-4e08-a0e2-e757937c0a7c","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":34,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"cfb170e0-0c01-40f7-9b48-0bd4932ecdb9","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":34,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"1561b574-c768-4810-af81-feb11a3b01a8","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":34,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"d369214e-abcc-4268-b1b2-b6505717fc7d","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":34,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"d2fe4c14-06a7-4205-8ab9-b8e8e7666658","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":34,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"8e20e832-9053-451a-945f-8cfb66a68579","block_type":"box","text":"Securities”); (ii) other fixed-income securities rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of","page_number":34,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"77253bbe-b094-4dda-aec7-e63145d998b1","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":34,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"4e3c151e-b1a7-4d2a-97c2-afbd5070d07a","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":34,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"f40cdbf4-2814-4033-939f-9e056ccfabd4","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":34,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"3e2caeef-12fc-4ca8-a985-b0155006bd31","block_type":"box","text":"have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or outstanding commercial paper, bank","page_number":34,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"228df29b-6b32-4be4-95a2-3e3f0afd0fb7","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":34,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"6c7ad242-e389-496a-9f52-c9d11d527c04","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":34,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"c2af61d6-17a1-4b0c-b107-2e3e860e83fe","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":34,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"6fd1dcdf-83eb-4390-88ca-f6e6a092d354","block_type":"box","text":"Collateralized Debt Obligations.","page_number":34,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"4ef2d851-debc-4ccd-aa2d-e12159633f63","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":34,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"4cc010f8-59a5-46ec-83ac-da90af7d1d45","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":34,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"c0abdc9d-4c32-4a79-9e30-0a6e24066f79","block_type":"box","text":"structured securities. CDOs are types of asset-backed securities. A CBO is ordinarily issued by a trust or other","page_number":34,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"de350811-e1bb-4259-aba2-ced9d258df04","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":34,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"f4d2b2ce-cc5e-464b-aaa3-d28e0690a980","block_type":"box","text":"include high risk, below investment grade securities) held by such issuer. A CLO is ordinarily issued by a trust or","page_number":34,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"5b416481-7ce8-47df-b9e1-b77b0eff54dd","block_type":"box","text":"other SPE and is typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S.","page_number":34,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"08c34317-4718-4b75-905e-30f6d6f4e404","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":34,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"77828ab7-56e1-46d4-8648-eba9fd81f39a","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":34,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"8dc76ae1-1088-48cb-9e87-6fa520203946","block_type":"box","text":"the United States may not be deemed to be foreign securities if the CLO is collateralized by a pool of loans, a","page_number":34,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"32be0157-94e0-4d86-8222-135898eebf59","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":34,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"3f4c2da6-3522-435d-852d-81d41dcd7333","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":34,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"7431fc2d-5904-47e6-8096-9dc5d789bb04","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":34,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"b5b4c82e-e16d-4d95-afa7-5dd499fd4b1e","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":34,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"09e02a6f-b1ef-4ac9-bdb3-554af038e5c5","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":34,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"6af129b1-2ff3-4516-a370-62fc4d7b702d","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":34,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"db435e13-ffc0-4e3e-897c-fc69538aff36","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":34,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"31b351ec-7c1f-4078-9993-056ad8648765","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":34,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"50609e6e-368b-40a7-8789-191245d428a3","block_type":"box","text":"bonds or loans in the SPE and serves to protect the other, more senior tranches from default (though such protection","page_number":34,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"ce505b36-6e3b-42e1-8e6b-e8042b97ec28","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":34,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"40ecab6b-ff17-4428-8fec-d27bf666b2d0","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":34,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"7c043759-fad4-4b10-a74a-d50b0e44f53d","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":34,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"81ab6bfa-fb55-4bfb-a183-1f9446e084e0","block_type":"box","text":"of the underlying collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage","page_number":34,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"7221eb38-18bd-4df4-85bc-5ef5f51b8811","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":34,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"096ea76d-a0c7-470a-bb32-8a91e44d4048","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":34,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"a304d111-7c09-45bd-9339-ccc469675ad2","block_type":"box","text":"of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than","page_number":34,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"b2aeee31-f11a-4dce-83ff-35c86ea53ac7","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":34,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"60d56a6f-6568-43d7-86a2-42acbef2e883","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the","page_number":34,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"4902c253-427c-423c-99e1-2079525b8146","block_type":"box","text":"CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus are not","page_number":34,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"cbd205da-14ab-4fc1-94b9-690ec3a804f5","block_type":"box","text":"registered under the securities laws. However, an active dealer market may exist for CDOs, allowing a CDO to qualify","page_number":34,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"13fd8f12-2f54-4123-a4e2-6ac359780e2a","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":34,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"120fda78-671c-4d01-9783-acc773f820c8","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":34,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"3e743f94-8805-46d8-a7c5-ca697eabbb33","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":34,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"d79a921a-8e05-4c4d-81ab-ec9c9be0571e","block_type":"box","text":"II-3","page_number":34,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"41f6dc29-43f9-4796-9038-7bca873bdac0","block_type":"box","text":"NM1026U-5981128-34/232","page_number":34,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"498874c1-ece1-492d-a6ca-3c5394307604","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical","page_number":35,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"320f9066-6f54-438c-91f7-51bf2877310c","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":35,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"26ade7cf-28b4-49c5-b564-4943c9a56adb","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":35,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"2a79c87e-5e0c-4777-8dd2-e0bdfa262220","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":35,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"8bc91ebc-31b7-4ab5-9133-c4548d47d334","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":35,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"1ed106d2-31b3-4e73-be93-7fd602e40e49","block_type":"box","text":"(vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the","page_number":35,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"00940d04-e1f4-41b5-bbc3-8ab49c94420d","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":35,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"93a3d1fb-1685-48ba-9246-99008a6d5545","block_type":"box","text":"Commercial Paper.","page_number":35,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"eaf0ce08-bffd-4cbb-9dfc-bfdd230019e9","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":35,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"16bd0658-e383-4c4e-9a01-a390f915ec8c","block_type":"box","text":"Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance on the “private","page_number":35,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"c0ddf094-961a-4784-a6c8-8961103120c8","block_type":"box","text":"placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act. Section 4(a)(2) paper is","page_number":35,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"92553ce2-ee91-4ef1-ab24-7cd57ff19b64","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":35,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"67b2b51e-1c51-4be7-a315-ffab2eedcce2","block_type":"box","text":"investors such as the Fund through or with the assistance of investment dealers who make a market in the Section","page_number":35,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"3fc2467d-8c96-4c92-a4fb-c04db841954e","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":35,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"961b4c85-5190-451e-888c-813c2f2a2806","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":35,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"f4667c2e-137c-4d34-a116-161d4794e22e","block_type":"box","text":"time of purchase) “A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub","page_number":35,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"854e73b1-c08a-40d2-b472-f7ebc5c2437d","block_type":"box","text":"adviser, “high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":35,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"6b17e75a-b5f7-4cf1-b8f9-e64b9ea12fb3","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":35,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"36c794c5-7f0b-40e8-b6dc-14cd5b07b464","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":35,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"e1cd53f5-c633-4d47-a35f-1ac85a0faaf4","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":35,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"2e777784-58ed-45ab-873b-ed7615e5d433","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":35,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"a6648f0c-f038-4d5c-bc52-7602690d4cfc","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":35,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"03e5c6f1-e2c6-43a7-a3ab-471d3113e677","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":35,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"851db8a5-7c7f-4e59-b174-d8f21141b9aa","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":35,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"3b931583-b49b-46ab-af91-499290aa4a9e","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":35,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"8872fa07-1435-4c93-856f-d58a8235243a","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":35,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"a59fff60-54e0-4d63-a9f6-5d392b297074","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":35,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"1b70d46e-05f1-456c-a474-010d85a9629f","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":35,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"2797a8a8-0b0c-42d7-82b1-02bfa81b5b6d","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":35,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"f8296dbe-9da8-4398-9f01-3b4ee7ea0228","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":35,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"a70ce1d9-4aa0-4aaa-afe9-64705df78899","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":35,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"a3b1d057-d80f-4ba6-bafc-3787797fa964","block_type":"box","text":"variable.","page_number":35,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"0b89aae3-0d00-46ad-9063-4b7431f028c8","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":35,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"bf781193-67f8-4ab3-a851-b676b2deb1f9","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":35,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"9c327884-f273-41d5-a655-7cbdf32c1bc3","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":35,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"c0f7c55a-0a7d-47e6-852f-cd0f2c0e4b13","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":35,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"c8c8890a-18d4-4082-8816-29764495afa6","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":35,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"4b5de2f4-b399-4e6a-bb15-62d188faf195","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":35,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"2d570672-8911-4c70-b981-54e5fd47224f","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":35,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"f5fb5c7c-6409-40b8-9077-dbf747091835","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":35,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"e4cb7768-150b-44ad-a5ef-2195df630b5e","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":35,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"cb1eec77-df31-4f2b-a676-bfd024b3eb81","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":35,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"d04af957-3e83-403f-b5a3-b3f1a6f53932","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":35,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"0468fc11-ebfa-4fa2-ae2d-19375680acbe","block_type":"box","text":"securities. Over the long term, the returns on the Fund’s investments are expected to exhibit low or negative","page_number":35,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"16fccd4c-1d96-4e3a-81b8-45db0a6af8cc","block_type":"box","text":"correlation with stocks and bonds.","page_number":35,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"82cfd418-cf2a-450c-9142-f807ad93e224","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":35,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"1fb14b74-1d6b-424b-803f-94db5dbc3956","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":35,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"c11d3adc-0f43-459f-a8b2-3d59ab7acd1b","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":35,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"599f7feb-a2c6-4a3f-a1dc-7037185aca11","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":35,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"3b3f61e9-c95d-4060-abc5-10e97e5eb1cf","block_type":"box","text":"be predominantly a security if (a) the issuer of the hybrid instrument receives payment in full of the purchase price of","page_number":35,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"5b1ef35d-2e2d-4c58-bb46-fb51346a1102","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":35,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"459fbce8-927f-4407-8b3f-b9f305b47f59","block_type":"box","text":"holder of the hybrid instrument is not required to make any payment to the issuer in addition to the purchase price","page_number":35,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"04ffd80a-6f32-4c2b-b8e7-3e5295111545","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":35,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"10a14808-b273-4194-ab48-f2691c1a230c","block_type":"box","text":"instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the instrument to","page_number":35,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"15ff9875-06a8-40a1-99e1-af04361ca38d","block_type":"box","text":"mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as a contract of sale of a","page_number":35,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"84f7965d-d781-43f7-a4a3-7e2a4777b685","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":35,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"0fe9f946-7cfb-41b0-897d-43a1be53f9a0","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":35,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"8e698b28-c6c0-4b44-9ac7-d95f21f7ffb4","block_type":"box","text":"principal protected hybrid instrument means that the issuer will pay, at a minimum, the par value of the note at","page_number":35,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"a73afb1e-aa94-445f-8c6e-6ae9c98179bf","block_type":"box","text":"II-4","page_number":35,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d8b6b93d-78cb-468a-a619-5dad9cf12f28","block_type":"box","text":"NM1026U-5981128-35/232","page_number":35,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d824151b-dfd5-4675-a132-3aef1606574d","block_type":"box","text":"maturity. Therefore, if the commodity value to which the hybrid instrument is linked declines over the life of the note,","page_number":36,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"ab33e5f3-1944-41a4-8340-418c4ee06d26","block_type":"box","text":"the Fund will receive at maturity the face or stated value of the note. With a principal protected hybrid instrument, the","page_number":36,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"6ae2ce70-8e0f-4f98-8713-bcc96a44814b","block_type":"box","text":"Fund will receive at maturity the greater of the par value of the note or the increase in its value based on the","page_number":36,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"a13714eb-1e07-411b-aad8-3111a5a32468","block_type":"box","text":"underlying commodity or index. This protection is, in effect, an option whose value is subject to the volatility and price","page_number":36,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"3d02f2f1-b2ba-46e3-8b3b-ebc6b08a17d4","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":36,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"c004cd49-843e-4b58-a5c2-29e2d4c0a33c","block_type":"box","text":"cost of the protection. In addition, the protection feature depends upon the ability of the issuer to meet its obligation","page_number":36,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"968cce0e-40b1-41a2-8dea-465a09ffc41e","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":36,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"b953bd32-a9d1-441d-b724-960c57cee7a1","block_type":"box","text":"the Fund will receive at maturity of the hybrid instrument either the stated par value of the hybrid instrument, or","page_number":36,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"93ccd2e0-034d-48d4-a7c1-e0241ba30aec","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":36,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"74835295-e589-418d-b2c0-e561ff3f1dfc","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":36,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"da750069-4dfa-4bfe-8690-63538d70adac","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":36,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"15dc7b79-1e11-4598-a728-34ff830555e6","block_type":"box","text":"variable to which the hybrid instrument is linked declines in value during the term of the hybrid instrument. However,","page_number":36,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"700e1ca2-5214-4575-9a3a-17a21fcb3c3b","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":36,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"e8232d94-e15c-40e7-979e-336675341f37","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":36,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"19001c3d-3a5e-4433-acb4-8029c38b3fb7","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":36,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"953e022b-b596-4d23-b7ba-5deb27adf677","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":36,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"61b782bf-4359-429b-b2ed-e97bb4dfcb42","block_type":"box","text":"economic variable may have declined sufficiently in value such that some or all of the face value of the hybrid","page_number":36,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"21a5321e-279d-4a26-baa5-ed0f89bcbce5","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":36,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"81f69645-dbeb-4251-82fe-bec9fb895d4d","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":36,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"24e2982c-3349-42de-ae3d-6e6311256ee5","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":36,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"ecbf03d8-8297-4247-8b6d-7321ff79e507","block_type":"box","text":"index or other economic variable over the term of the note, the cost of the note, and any other economic factors that","page_number":36,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"6db20856-e091-4307-82f5-b161cb8e870d","block_type":"box","text":"the Manager believes are relevant.","page_number":36,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"d58cce4e-b774-4ab3-a57a-18b6b12803fa","block_type":"box","text":"Limitations on Leverage.","page_number":36,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"3ebd00f4-f7de-4f49-aca3-197f1dfe1949","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":36,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"59ae154d-38f2-47d2-b263-a273d6bc9631","block_type":"box","text":"avoid being subject to undue leverage risk, a Fund will seek to limit the amount of economic leverage it has under any","page_number":36,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"e4c3923e-c46b-40ba-9cc1-692196446224","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":36,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"23d94578-346f-41b6-a7e3-264e21c4c668","block_type":"box","text":"instrument if, at the time of purchase: (i) that instrument’s “leverage ratio” exceeds 300% of the price increase in","page_number":36,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"ef91021c-d9c0-4acb-917f-43cb889c9b36","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":36,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"22029969-49c1-4032-aa68-1f87cf1b86b8","block_type":"box","text":"ratio” exceeds 150%, measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a","page_number":36,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"3ecf5364-e866-498d-b978-0ee204fd01d6","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":36,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"ee33b345-6800-494b-a933-4fa3b20d2604","block_type":"box","text":"other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1% gain in the","page_number":36,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"24a99c84-4ffc-44ec-956a-e7baf6946d17","block_type":"box","text":"underlying economic variable would be expected to result in a 1.5% gain in value for the hybrid instrument.","page_number":36,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"567c92c7-d2f1-4090-89db-ae41b8c491a9","block_type":"box","text":"Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5% loss if the underlying economic","page_number":36,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"69689d7e-7f83-467e-a380-540c0a14f81f","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":36,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"c2dd5a20-a1bc-488f-afe2-0966d2b39e7c","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":36,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"4f3904de-cd34-45d1-a805-6f8d728e271c","block_type":"box","text":"contracts, their notional values. A Fund may at times or from time to time decide not to use leverage in its","page_number":36,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"65f945ca-b369-4107-9277-68a2de954c2a","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":36,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"419a0c2f-aa41-46f8-a525-237a123b81cf","block_type":"box","text":"Counterpar ty Risk.","page_number":36,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"8853c7c8-4ee8-4a23-900b-9ee89e53cc3b","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":36,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"89d80444-d628-4317-ad84-d2e895f4789c","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":36,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"d2847063-442c-41ae-af1b-6bc170c0903c","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":36,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"8f925a71-e67f-4951-b580-1c305febc74d","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":36,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"f9f70840-936d-4976-920d-3b6b86be7188","block_type":"box","text":"e.g.","page_number":36,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"c0d3f88a-b8ab-4860-8c3d-e9af8a3d06c3","block_type":"box","text":",","page_number":36,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"f16dd5f8-c0f7-4e8b-9a4b-9d542c5c185c","block_type":"box","text":"ratings of AAA or AA by S&P). Therefore, the risk is small that an exchange clearinghouse might be unable to meet its","page_number":36,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"667b368d-0252-4ab1-a865-55da60b3d2cb","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":36,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"5abfafd3-f85d-4fdc-8e6b-ca458c786913","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":36,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"09ff23a6-22e0-419b-9d97-0ceb04f48dc3","block_type":"box","text":"obligations under the structured note.","page_number":36,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"4a98c52c-cf30-4cf4-bc64-59d892829539","block_type":"box","text":"Convertible Securities.","page_number":36,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"eec1cb82-8f6c-488e-8dce-4021cf30eba2","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":36,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"acacfe8f-8cf4-4814-801c-3066f03b0462","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":36,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"69e3e8eb-17b8-42f6-8fd4-4f48c83d2c97","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":36,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"ca1cf115-e8d1-4033-893a-a71f62cce73b","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":36,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"d11feb08-1e45-47e3-98f3-8ea33088a39b","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":36,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"6030cb54-7e11-477b-94cc-9f0016212363","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":36,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"2e84a15e-354f-4b81-8c53-3aa60cc506de","block_type":"box","text":"with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than","page_number":36,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"44853837-c9ff-4e20-8758-3db298aa1873","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":36,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"6d835eb3-5c96-4f1f-88d5-7e62926cf332","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":36,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"688d2e56-d6fb-415e-bc91-af68714b4d0a","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":36,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"7c218c69-0dbb-4ff1-9438-b67b66d1bd1b","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":36,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"c2f27fe5-7c29-4679-92e3-91c25fff3dbc","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":36,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"ca6adce6-e3e8-4dbc-9022-d28e90ca6d06","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":36,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"b7b0cea7-30e1-4078-bfbf-ac67657da4df","block_type":"box","text":"II-5","page_number":36,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ad93f892-6f11-4370-add5-019df65cd1e8","block_type":"box","text":"NM1026U-5981128-36/232","page_number":36,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"79a89af1-d682-4900-b709-dc6115a6b729","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":37,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"2f1efcb8-6497-4908-931d-04d9eeba9924","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":37,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"ce5dd040-382e-4b7e-852f-56607362a612","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":37,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"26fe2865-ceff-4e56-8868-e2ab9f54fafe","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":37,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"48aa0d67-a32d-4202-99ad-7bcff3418c1d","block_type":"box","text":"in value relative to the underlying common stock due to their fixed-income nature. As a result of the conversion","page_number":37,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"f803f1c4-7fc4-4a17-b1de-f80f26b315f7","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":37,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"dea3425a-4d6f-452e-bf77-e89458e9d228","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":37,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"ed3e6050-b045-406b-91da-46f5eb6ce605","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":37,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"547ddfd9-6566-4ea5-83a1-7aeae4271095","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":37,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"4a37ef11-f42c-4b69-94b2-2533a2be923d","block_type":"box","text":"things.","page_number":37,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"3574c6d4-25c3-4efc-bb9a-b6eb6d17d3f9","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":37,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"50de76e2-f2da-4a92-bb24-4a892c1feb48","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":37,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"d55b9714-1bf7-45cf-91ef-bbfc5b2e968e","block_type":"box","text":"securities may be quoted in the currency of the country where the issuer is domiciled. As a result, fluctuations in the","page_number":37,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"1e30c228-09fb-42e4-ab9e-8df2cc2867bd","block_type":"box","text":"exchange rate between the currency in which the debt security is denominated and the currency in which the share","page_number":37,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"5fbed7c2-4f62-4152-816b-9852130e655b","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":37,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"c2812e14-0373-4716-933c-3748515a4f20","block_type":"box","text":"a currency different from that of the underlying equity securities, the conversion price may be based on a fixed","page_number":37,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"e73cca4f-20cf-444a-9f9f-07bd32284717","block_type":"box","text":"exchange rate established at the time the security is issued, which may increase the effects of currency risk. As","page_number":37,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"951eeea4-cb79-4b8d-a4e8-e1eda071f6b1","block_type":"box","text":"described below, a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to","page_number":37,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"784a6284-5491-4971-b628-e51c26c74a0d","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":37,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"7bea77e4-93bd-461b-9068-2e6f1c24fcd1","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":37,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"a93c7c70-3f2c-48c4-9610-c1f8f71a7a85","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":37,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"06b3087e-0862-448c-9c23-b7f81e3af539","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":37,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"0839936e-ab64-4f63-a82d-b559b4ccc3c6","block_type":"box","text":"i.e.","page_number":37,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"b0d999f6-5f2c-4229-972c-97ac76e8b67a","block_type":"box","text":", strictly on the basis of its yield) is","page_number":37,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"673d75c5-3dab-4f8f-9ae8-20ba8de794be","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":37,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"4f88df65-afa6-4b17-adcd-e1e203c08571","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":37,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"4b9f8e6a-e61e-4842-8415-b4e2f022b249","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":37,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"6d07c59d-a6c5-4adf-984a-6f8c31ab8875","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":37,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"7703bbb6-8166-4524-b220-b7657448f341","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":37,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"2d0ac371-cfe2-45a3-9794-142830eb6d98","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":37,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"04b14757-e8c0-4f92-aca7-0872b4bfe97c","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":37,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"281c4923-0362-49fa-b64d-7803eb0ec542","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":37,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"529738dd-90fe-4c6f-bbab-8973bb725f18","block_type":"box","text":"over the conversion value to the extent investors place value on the right to acquire the underlying common stock","page_number":37,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"7685b0da-538b-4894-9fa6-f3a551bac3f5","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":37,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"7a69a56c-43d3-495f-a925-e14a535065a1","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":37,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"1031a0be-1f52-4393-a128-51b41a920e42","block_type":"box","text":"than the securities’ investment value.","page_number":37,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"8a6b5f7a-1e19-49f6-9778-c517d768c81a","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":37,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"bcca5b26-d0ff-462b-8ed9-37b08c56767f","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":37,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"c8d00387-00fe-4c2b-9ab5-36c79f406038","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":37,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"612abd08-b2df-4129-801b-d3973262eaca","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":37,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"615ef2f9-a12a-4333-b7bb-4d2aa600fd71","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":37,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"2029a724-5182-4ba5-bd96-717d0a338afe","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":37,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"5fda872b-3dad-40f9-a476-092b537b0c41","block_type":"box","text":"holder to cause the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":37,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"3a620b8e-f3fa-49ed-b8af-10fab0465bbe","block_type":"box","text":"security under certain circumstances.","page_number":37,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"0cb2c5c0-4b44-4e21-9e77-74de014b9185","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":37,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"9f093cd6-c32a-4b4f-b923-dc38293b5efa","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":37,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"f02ac734-ce87-44b2-a3f2-804187fa4e43","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":37,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"ca125108-fac5-42c1-8269-9cd1e54f5b5b","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":37,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"daa207dc-07a3-400b-9723-a457bc6c5bfc","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":37,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"24dbc668-ca23-449e-bd9c-a824653c3331","block_type":"box","text":"public offering of its common stock prior to maturity and otherwise pays a cash amount to reflect any equity","page_number":37,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"21fa0b3e-ca96-4cc9-a668-3a27db427cde","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":37,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"3d256c39-8355-4b6c-9bca-9c38de18d670","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":37,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"bae81755-a894-4449-8a39-46b42de529f9","block_type":"box","text":"i.e.","page_number":37,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"79fde095-9c8e-4dcb-b70a-9973b12d067d","block_type":"box","text":", fixed-income (“fixed","page_number":37,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"4dde3598-476b-437f-a506-385dd5764a41","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":37,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"b91ecb54-75eb-4f54-8fc2-caa7041293c4","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":37,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"8faa1136-4886-454c-acdc-8515507d8564","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":37,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"8490204f-b5ae-4b2a-b6a7-3cdcc7d55cf5","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":37,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"90d3dbcd-2965-4a0a-a089-f91d2b83ff0c","block_type":"box","text":"II-6","page_number":37,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"71d6d63c-b5c1-43db-b6fc-93bfe0278d58","block_type":"box","text":"NM1026U-5981128-37/232","page_number":37,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b93b02d8-036a-4c22-a21f-685bf75d3955","block_type":"box","text":"specified quantity of the underlying stocks within a specified period of time at a specified price or, in the case of a","page_number":38,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"0bd892de-dc36-4b68-ade0-707d1040b629","block_type":"box","text":"stock index option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":38,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"936602f0-5f3b-476b-9c3b-fc19fe8366b3","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":38,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"4086cb3f-6e76-4bc4-8980-90e8cb254654","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":38,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"aebc3a4e-194d-4fad-8e79-3e898db1cc08","block_type":"box","text":"comprised of two or more separate securities, each with its own market value. Therefore, the total “market value” of","page_number":38,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"0780acfb-6628-4563-b5db-75176dcc42f2","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":38,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"837e4ce1-9b15-4bf4-9e3e-606b468891ab","block_type":"box","text":"component.","page_number":38,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"0973bb64-ab0c-4077-beb6-777226aac142","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":38,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"43663bf1-6d40-498c-a088-3a25391e77ba","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":38,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"fc4c063d-3dd3-48e5-a46e-e3c843670de2","block_type":"box","text":"fixed-income instrument and an equity feature with respect to the stock of the issuer of the fixed-income instrument","page_number":38,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"6107ff81-5d96-45c5-9bdc-e1e344f59714","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":38,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"94e20553-3a89-4b92-9812-776b7f71feb8","block_type":"box","text":"fixed-income instrument of an issuer with an equity feature with respect to the stock of a different issuer when the","page_number":38,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"0d7b355a-ad50-4389-9f8d-07f7649d47d9","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":38,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"f39d74b8-6bd7-4a52-a645-e7ce2734f362","block_type":"box","text":"investments. For example, the Manager may combine an equity feature with respect to an issuer’s stock with a fixed","page_number":38,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"9c39f21f-2e8d-430f-a72a-69e03d1e293d","block_type":"box","text":"income security of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":38,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"1046cb0e-d85c-4b6e-b029-45cd9df9120f","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":38,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"1b9dc936-8a39-4dec-8e7f-1220a5cf6d56","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":38,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"1db128f0-decd-4861-b814-158f686854d2","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":38,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"93a8bf62-9496-4e12-879f-aab791ce2edb","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":38,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"df6fc228-bd15-4943-8a00-7012f9b7bd1e","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":38,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"f4aefee7-2cd1-4192-a549-461f86b162aa","block_type":"box","text":"favorable market conditions.","page_number":38,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"c3a8d40f-a385-4107-8c9a-c8cb3219bd45","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":38,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"6216846c-ef2d-44af-b558-0a291ccd9c3c","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":38,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"316c4b93-bec5-4e2f-8be8-606b2632aa0d","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":38,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"fad3bbb8-bbff-4033-8b5b-0c591ce21eb6","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":38,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"bf77b03c-9d64-44f4-807f-94eec2b21e19","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":38,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"2ed0fe94-4ebc-42af-ab0e-20c0a035310a","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":38,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"3b4df09e-90ea-4700-89c6-1ca0f663c371","block_type":"box","text":"Corporate Loans.","page_number":38,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"43c6cf19-8be8-48c9-a8ce-6895eeba9266","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":38,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"cf82bf23-d07e-40ce-b438-e7dd88ca2f2b","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":38,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"c2cba6fb-263a-4a40-bd15-a8ac8f540e4e","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":38,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"89446424-276a-47fa-822e-e6558d501ff6","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":38,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"fdd4a88f-9ef2-48ff-97c0-21d9f4dfe2f3","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":38,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"92461462-f924-4996-a040-ea97b6d187f0","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":38,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"c3a3b67b-d46f-4489-811f-85f911763269","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":38,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"483be003-8193-4a8f-85bb-cfbaba953c08","block_type":"box","text":"only with the Lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and","page_number":38,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"ad0afabf-5c1c-493d-878c-cbe16a077e52","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":38,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"5a74a02e-0880-4a5e-be11-7d0a151852e7","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":38,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"fe48d543-6a70-41f3-9ab6-a8e1fe7037b9","block_type":"box","text":"enforce compliance by the borrower with the terms of the loan agreement relating to the Loans, nor any rights of set","page_number":38,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"51f58a5d-d5fc-4279-be94-d35d7dfb0c24","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":38,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"a1d7be51-6d3e-4c11-950c-4d17497fcf5b","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":38,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"22fa6ab2-7b25-4f73-9f8c-171e7ac91f0a","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":38,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"bd8293c1-7e10-4050-9681-283a972c334f","block_type":"box","text":"treated as a general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":38,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"d481cfca-be9e-4109-9e0f-da33682c38a5","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":38,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"2584bd1a-26e0-4d24-95e5-2caa220e5bb6","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":38,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"03c4d5f1-806b-4ea9-9f2d-43f1b13d07a7","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":38,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"f0030ea9-b694-474a-bb94-b32cba6239d7","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":38,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"bd63e5e9-eeee-4a12-8d3c-471b4b38bf06","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":38,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"359f54a0-35c2-4d37-8dfe-95097661514e","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":38,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"2325c224-9f4a-48a0-8e1a-9b1496412b0d","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":38,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"fad5bfc1-3252-4c38-b1f9-2685c0972b32","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":38,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"e0832852-6de3-420a-8637-581514482703","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":38,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"ef16632b-90b8-464c-9073-52ced969b41b","block_type":"box","text":"could be sold only to a limited number of institutional investors. The lack of a sufficiently liquid secondary market","page_number":38,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"07776dbf-003c-4d88-a8c6-ff997c005f3a","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":38,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"6edde690-e013-4ad8-b217-4dbeade2d321","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":38,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"5015d883-959a-44b9-a408-55e105ec4f61","block_type":"box","text":"of the borrower.","page_number":38,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"ce675084-b72a-45bd-8c18-f98e478e4cf2","block_type":"box","text":"II-7","page_number":38,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"311f8d96-3297-4701-944f-fe725209b704","block_type":"box","text":"NM1026U-5981128-38/232","page_number":38,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6a094b4b-c3c6-4344-8bd1-6ced47776281","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":39,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"d3b98fa9-9857-47df-88a1-c01bc33813c9","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":39,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"d828a196-09e1-408f-932b-1d3a2d42a03f","block_type":"box","text":"Failure by the syndicate agent to fulfill its obligations may delay or adversely affect receipt of payment by the Fund.","page_number":39,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"051b7793-6c35-459c-a27b-ed127591072f","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income. Although","page_number":39,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"3124a247-72eb-4e41-bb62-fdd296495f37","block_type":"box","text":"borrowers frequently provide collateral to secure repayment of these obligations they do not always do so. If they do","page_number":39,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"dcd0f488-92cb-496d-b225-bb39ff8c278d","block_type":"box","text":"provide collateral, the value of the collateral may not completely cover the borrower’s obligations at the time of a","page_number":39,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"3771ab46-0b04-45a6-a325-750b254ce2ff","block_type":"box","text":"default. If a borrower files for protection from its creditors under the U.S. bankruptcy laws, these laws may limit a","page_number":39,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"422df84b-0447-42b9-8cff-7c9e4a806440","block_type":"box","text":"Fund’s rights to its collateral. In addition, the value of collateral may erode during a bankruptcy case. In the event of","page_number":39,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"48d8046a-30d2-481e-a0e8-834e536500aa","block_type":"box","text":"a bankruptcy, the holder of a Loan may not recover its principal, may experience a long delay in recovering its","page_number":39,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"5964d7da-3ad5-4663-af3d-05c0646d0f51","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":39,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"a9381823-b6c3-4ad3-b446-52249ca85f27","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of","page_number":39,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"3de1aef5-a434-4278-a863-576fedd95863","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":39,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"ec2887b4-8d4a-4d72-9c90-cbef94e03d70","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":39,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"4e3e05de-0119-47b7-83f1-29d98441e7a7","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":39,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"b72ec97e-9e81-4ad7-856f-27738d782c8b","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":39,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"6d082221-342e-4b7f-993d-a5975279be4c","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":39,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"29605881-995e-42ea-9c36-0b9b92426938","block_type":"box","text":"interests in Loans, such as the Funds, may not have the protection of the anti-fraud provisions of the federal","page_number":39,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"ff5dcfef-153f-428e-9081-948474eac14a","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":39,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"3e2e3fd5-beff-43a1-87eb-289e3b3e95ae","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":39,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"3b9983d9-37ff-4b84-8465-6ba281a2aeb5","block_type":"box","text":"state law.","page_number":39,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"5e7c4995-ddf6-42cf-ab82-b0faf202c176","block_type":"box","text":"Direct Lending.","page_number":39,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"0f2c555f-ecdf-4699-ae35-49d7a3d6c0c7","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":39,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"c0dcd12c-b0b4-498f-adb0-610ec25ad7a0","block_type":"box","text":"between the Fund and a borrower may not be administered by an underwriter or agent bank. The Fund may provide","page_number":39,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"8526c3b0-2866-4336-91a7-f73787908b7c","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":39,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"815738a2-423e-4d89-b635-1556383579b2","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":39,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"8fd9a5a1-705f-4b1c-aebd-5f1750d2828b","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":39,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"0d691ed5-6646-4d6c-a4d5-64655f4c16c4","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":39,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"3e091b60-3e99-441c-8115-95b98ad1ce5b","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":39,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"6ce0b2a0-8b8b-466f-ab4f-4d66e416bbc4","block_type":"box","text":"loans are substantially similar to those associated with investing in corporate loans. In making a direct loan, the Fund","page_number":39,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"2f6122f6-9898-48cf-92d9-d7a22165525a","block_type":"box","text":"is exposed to the risk that the borrower may default or become insolvent and, consequently, that the Fund will lose","page_number":39,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"51233fe6-c648-4b04-8063-4c1c49bd245c","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":39,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"b867a8dd-07a1-4a50-acdf-3c0c7a2b8c66","block_type":"box","text":"direct loans may be deemed illiquid. Direct loans are not publicly traded and may not have a secondary market. The","page_number":39,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"953d97f4-9804-4e00-8d91-3b6eb5930f71","block_type":"box","text":"lack of a secondary market for direct loans may have an adverse impact on the ability of the Fund to dispose of a","page_number":39,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"e052bfe0-10cc-4830-aadc-660d5ab25337","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":39,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"24c0b2fe-d1b8-4dca-a631-3812bf6f4282","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":39,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"ad2c7328-6861-4688-976b-91f02022cd06","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":39,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"111179d1-984d-441b-a8f2-486803b5c126","block_type":"box","text":"Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on","page_number":39,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"b14893dc-f4ff-46e5-b613-265d5df082c6","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":39,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"1b109325-09d8-4d64-b64e-8a0fd973b9df","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":39,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"336d95b5-c286-4cad-b073-c7609342f795","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":39,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"2cc09ac6-733f-4706-9225-4217619f7665","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":39,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"b34b1f97-080f-4dba-b2fa-47cbbbcffdd7","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":39,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"c90e6579-0f2f-4977-9755-810add9fbb0c","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":39,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"ece36131-1b00-47ba-be6f-e1b68352a6f4","block_type":"box","text":"Credit Linked Securities.","page_number":39,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"d99db151-e146-4022-ba5e-4d4d684c23ed","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":39,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"6237b734-9bc9-4e80-9727-1cfc86ce8883","block_type":"box","text":"securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument","page_number":39,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"f92cffad-b52b-4252-a1ab-ba0d62d3ca94","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":39,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"dac7eaa8-19e0-480d-b04e-82646a9efa3c","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":39,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"eb33288d-286e-4c86-91e0-8f4bc4acea8d","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":39,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"02678d02-f63b-4cd2-9726-772a5df1bdd6","block_type":"box","text":"traditional income producing securities are not available.","page_number":39,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"6ebb6eb2-c021-4817-975b-ebe71e378489","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":39,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"895432ea-f060-4ac4-a421-6352cd8e2125","block_type":"box","text":"income payments (in the form of distributions) and payment of principal at the end of the term of the security.","page_number":39,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"2e31f2f2-a627-447d-9d5a-4ad7f601aa86","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":39,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"96a3f9df-14bb-4346-95e0-2e4ceeb4a873","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":39,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"18bc91d1-9ad0-4d64-8c64-841f2189d83e","block_type":"box","text":"instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of","page_number":39,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"3a6adc5b-8698-40d0-9a3e-e733f2b9b0c8","block_type":"box","text":"II-8","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"34af79cc-8d46-4028-a971-cc96ef1c2791","block_type":"box","text":"NM1026U-5981128-39/232","page_number":39,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8c262007-4d25-4813-a21c-60a3a3f742b3","block_type":"box","text":"payments over the term of the swap agreements provided that no event of default has occurred with respect to the","page_number":40,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"ddc39154-de86-46ea-bfab-91850a7e583c","block_type":"box","text":"referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and","page_number":40,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"5db794a8-502f-482d-b2f4-a9a7d9fb4890","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":40,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"8135d645-c9f8-4f98-b612-df53595f0bc6","block_type":"box","text":"obligation. This, in turn, would reduce the amount of income and principal that a Fund would receive. A Fund’s","page_number":40,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"7614fe90-2041-4948-ab69-61825838bcc8","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":40,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"47c999b0-e14d-47ad-8d16-dac8840b7511","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":40,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"5737228a-4f23-497b-8fdb-e67367248d44","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":40,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"3df72ebc-9f5a-4957-8ef9-73d00dfdc8fc","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":40,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"587b154e-d426-4302-a0a8-ae7143459212","block_type":"box","text":"investments.","page_number":40,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"83f22ede-07c9-4dd3-84d7-ab7fd9ee5d46","block_type":"box","text":"Debt Securities.","page_number":40,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"92d28e2b-94af-4b01-ae50-11afa6d11ff0","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":40,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"51513d4d-a89c-42d6-a2e9-b435d0128297","block_type":"box","text":"timely payments of principal and interest. The degree of credit risk depends on the issuer’s financial condition and on","page_number":40,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"4a2aa2f5-b547-4d4d-a1cd-632453c6b09e","block_type":"box","text":"the terms of the debt securities. Changes in an issuer’s credit rating or the market’s perception of an issuer’s","page_number":40,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"de3a146b-8583-474e-88fe-d582ab91a224","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":40,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"02e24c5e-3ada-4840-b110-150eca1a4b22","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":40,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"c508bcc1-23e9-4734-84f8-31651b3a8c07","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the security may","page_number":40,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"5eecf6cb-2e48-494d-99f1-b242aeb02f44","block_type":"box","text":"fall when interest rates rise. If interest rates move sharply in a manner not anticipated by Fund management, a","page_number":40,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"4b885bcf-9f41-4954-8c3d-8771563f08f4","block_type":"box","text":"Fund’s investments in debt securities could be adversely affected and the Fund could lose money. In general, the","page_number":40,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"e7a05ffd-8673-4a28-9218-fa7450def8e2","block_type":"box","text":"market price of debt securities with longer maturities will go up or down more in response to changes in interest","page_number":40,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"3deb8128-7276-4428-a3c8-d6b874f93bbf","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":40,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"869ef832-5e20-4cec-91db-fa7792e50b85","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":40,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"35a01cc0-071b-401f-820b-6710c8703f57","block_type":"box","text":"slower than expected principal payments. This may lock in a below-market interest rate and extend the duration of","page_number":40,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"1b6b7759-e302-42a2-abfd-c8a537355ea3","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":40,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"a6cfc61e-f287-4f27-b367-bedb16fefd89","block_type":"box","text":"interest rates. As a result, in a period of rising interest rates, these securities may exhibit additional volatility and","page_number":40,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"8ba435e4-80b1-40e8-bd71-d65fbd3552f9","block_type":"box","text":"lose value. This is known as extension risk.","page_number":40,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"7a6f400b-2276-4fa3-b6c1-dbd054449937","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in prevailing","page_number":40,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"7196f894-c847-4524-a735-0c41628b6809","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":40,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"443042a4-3f37-4983-8a71-b5002a40be0d","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":40,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"34d924a1-152b-41e6-9fcb-f39f711ba24a","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":40,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"69147150-73d3-4904-8760-b25b5c7dac0d","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":40,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"58aaa5a0-df94-4d4a-92e4-e7b67c196253","block_type":"box","text":"Floating and Variable Rate Securities","page_number":40,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"f1941240-2389-41ed-bb26-c23cca3c9d91","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":40,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"1ee05200-9bc7-4eac-8b93-44f45d9dd8f4","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":40,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"774d455d-4020-4cae-96bc-3a2b9a7ea441","block_type":"box","text":"with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest","page_number":40,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"c818f2a3-f2da-412a-be64-1014fe27a140","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":40,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"fcbf427d-8230-4dc3-bd8c-32db639b6018","block_type":"box","text":"impact of interest rate changes on floating rate investments is typically mitigated by the periodic interest rate reset of","page_number":40,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"579a89ab-dbdb-4a85-a4c5-b2587d2bb849","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":40,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"5e530b12-36af-4c4f-a1c1-205f8607d39d","block_type":"box","text":"market interest rates.","page_number":40,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"34e0cc84-f188-4d74-8056-59deaca5c74b","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":40,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"1644fd98-eda7-4316-8396-26e050cab043","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":40,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"71db9d24-0472-4bc7-a866-f2ec5ac39911","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":40,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"dd3c7f9d-54f3-49d8-8714-78b61e9596a2","block_type":"box","text":"common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of","page_number":40,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"fadb2d9a-d974-4425-a51d-5790ad4280bc","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":40,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"7088799a-bf10-45af-b802-380b7107da9e","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":40,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"60fdf9c7-bf6e-494c-9373-b2be28fd4588","block_type":"box","text":"possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on","page_number":40,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"35905703-f407-4946-912e-3a41eef06a40","block_type":"box","text":"a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount. For example, if a Fund","page_number":40,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"b8d70893-3fea-4a0f-9e01-8ea5ba876876","block_type":"box","text":"purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%","page_number":40,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"64a56acd-1f04-4196-8e86-28ce4a005bbc","block_type":"box","text":"semi-annually), and inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010","page_number":40,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"5a140507-3226-4a74-b71c-dadc52f568d3","block_type":"box","text":"and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half","page_number":40,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"aa3ba3c9-ebba-4d2c-a10b-7ba9f137ef80","block_type":"box","text":"of the year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be $1,030","page_number":40,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"10e35629-196a-426a-81a7-835e97dce6fd","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":40,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"74f568a7-4872-4fd4-84ce-d2119d037f2e","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":40,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"67f9f396-d985-4bc6-a99e-980049d8e65c","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":40,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"b627181d-ef98-4ec2-9a88-5fd7821d890d","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":40,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"4dfdc291-e690-4922-8ab6-63afc91b1dc0","block_type":"box","text":"guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the","page_number":40,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"c2616a08-5b7b-4e44-b61e-78aa092c92bd","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":40,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"43c79a3a-5c42-497d-9e9b-e219d47b44f7","block_type":"box","text":"inflation related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided,","page_number":40,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"63279007-1bb8-48f6-afd7-1430cab83851","block_type":"box","text":"II-9","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"04db644a-8b9e-4b7d-991f-d5907fac02e2","block_type":"box","text":"NM1026U-5981128-40/232","page_number":40,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"67514ab5-8807-4842-87d3-ea905561d1a6","block_type":"box","text":"the adjusted principal value of the bond repaid at maturity may be less than the original principal. In addition, if the","page_number":41,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"f94cd2ef-38ee-4edd-884b-f1d136f626bf","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":41,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"62ef4603-d7ad-4273-890f-3b0c81cdb02a","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":41,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"ba972482-0a05-4da9-bb79-478da9e7aa75","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real","page_number":41,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"c96ece1e-cc84-4f3f-85a5-a902c0c303da","block_type":"box","text":"interest rates, in turn, are tied to the relationship between nominal interest rates and the rate of inflation. Therefore,","page_number":41,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"6b36f6d2-344f-4d5e-bb3e-fc44ac2ffe49","block_type":"box","text":"if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an","page_number":41,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"72c9265c-a2c3-4910-a6f0-399c779c6be3","block_type":"box","text":"increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than","page_number":41,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"f6a817be-5c5c-41b0-8b19-fd23573e1f09","block_type":"box","text":"inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no","page_number":41,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"668ffcbc-fea9-46b7-a451-44e492beb3c9","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":41,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"f507d3c6-d725-4f90-bc5f-1ec0ff89aad9","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":41,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"0bb55f25-afdd-46d6-adc5-7fbf62b62bbb","block_type":"box","text":"inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to","page_number":41,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"2eaf8e97-3c5a-47e9-ab7d-f88fb940346c","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":41,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"f60df78f-d9ae-4210-bb35-42f1520bc6e5","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":41,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"fa1d7dd4-ebb3-444c-85db-54f74896548f","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":41,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"ade7bb88-334b-4dc6-b7b7-ab09da43844f","block_type":"box","text":"Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor","page_number":41,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"0968ab7f-5877-45af-b63a-767c85bf8d20","block_type":"box","text":"Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing,","page_number":41,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"96108570-4dae-47cd-9f0f-c6c2862f3782","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":41,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"471410f3-eaec-4072-97e8-85cf266a14b4","block_type":"box","text":"reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any","page_number":41,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"2fdb454a-7fc6-4c4a-a138-7f77674fd711","block_type":"box","text":"foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover,","page_number":41,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"6cff352f-d11b-4688-a057-f0dee8cdffb6","block_type":"box","text":"there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":41,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"3aebcca2-688b-4184-8c24-f817127ae000","block_type":"box","text":"United States.","page_number":41,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"85bcc49a-3564-4256-97c9-7a7aef9bd47a","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":41,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"4ea99387-984a-4636-aa95-c2380ccf0480","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":41,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"9c2d6d41-4ceb-4300-8db4-811f87268dbf","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":41,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"06307983-e305-4991-9109-cd4a628341c3","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":41,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"c4877daf-9f70-420d-8229-478168f2e3dd","block_type":"box","text":"securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent quality by a Fund’s","page_number":41,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"53fbbd63-d856-4f92-8794-86c51aba111f","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":41,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"b8c3af5d-47b7-4208-8308-8b09f5d3ed89","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":41,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"5d753bbf-3b75-4742-a6da-0709acad300c","block_type":"box","text":"i.e.","page_number":41,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"0d099c77-6a32-4929-b5be-cba89daf0d3e","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":41,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"92530adc-88d0-408c-97bd-d3d59cfd448d","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":41,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"58813eff-a9dc-4982-a66a-a6f9e9251b41","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":41,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"6091ad14-49f7-4aaa-b647-6740676fc81c","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":41,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"e9aba33a-924e-4462-986d-daaa501d6e20","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":41,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"4d59c6f1-d571-43a9-9e93-a65f8d2be276","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":41,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"cabb1a0b-f055-48b4-9921-eafdca6b4780","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":41,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"7f5c5ab7-804e-4bdf-93f9-bd9074165a52","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":41,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"f33c87d8-616b-4bef-a4f0-0d4c0864a60f","block_type":"box","text":"“junk bonds” are debt securities that are rated below investment grade by the major rating agencies or are securities","page_number":41,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"2f96d503-48f3-4a91-9b8f-ee2457ab05ca","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":41,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"599221d1-d791-4d93-a0b0-df9e277fcf09","block_type":"box","text":"for gain, non-investment grade debt securities may be subject to greater risks than securities which have higher credit","page_number":41,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"d4003741-0614-41c8-8656-1453033804a4","block_type":"box","text":"ratings, including a high risk of default, and their yields will fluctuate over time. High yield securities will generally be","page_number":41,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"8840d081-3414-4817-9295-b5b9cb248c59","block_type":"box","text":"in the lower rating categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P)","page_number":41,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"79457809-c1b5-4c7a-ab50-c0fc2b9f9e37","block_type":"box","text":"or will be non-rated. The credit rating of a high yield security does not necessarily address its market value risk, and","page_number":41,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"502fa074-e531-4405-bc45-428ea8d251f4","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":41,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"1fe155a5-f5a7-42db-bd03-b92c3a48ab98","block_type":"box","text":"condition. High yield securities are considered to be speculative with respect to the capacity of the issuer to timely","page_number":41,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"8d81f1b5-1cdc-4219-aa8b-eacf8fcf74d4","block_type":"box","text":"repay principal and pay interest or dividends in accordance with the terms of the obligation and may have more credit","page_number":41,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"9da4a4c5-2863-4d6f-bc2a-4f212ec843dd","block_type":"box","text":"risk than higher rated securities.","page_number":41,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"d75984b8-df53-46f8-be83-99bbde8d2cd8","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":41,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"d04b2eec-426f-410c-980b-2363d8ba4f64","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"7c330982-145f-45a7-afd7-626557b4805f","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":41,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"703fb345-2270-42c9-bb3e-de46650bd88b","block_type":"box","text":"in the issuer’s industry and to general economic conditions. Issuers of junk bonds may be unable to meet their","page_number":41,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"1810a46b-ec60-4952-8acf-cb50e0fe5950","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":41,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"787dcd0a-1fd0-4f59-aef6-6d105488089c","block_type":"box","text":"unavailability of additional financing.","page_number":41,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"2644d028-8349-4412-82bb-98465c5e72e4","block_type":"box","text":"•","page_number":41,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"fe70f3f3-5f51-4e90-9257-68ef14abe756","block_type":"box","text":"The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of","page_number":41,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"e68e8a4e-bf10-468c-816c-659a3991c323","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":41,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"81396698-13fb-4015-951b-207574e45009","block_type":"box","text":"The issuer’s ability to pay its debt obligations also may be lessened by specific issuer developments, or the","page_number":41,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"1524283b-2378-4ca0-b6bd-80512215cbeb","block_type":"box","text":"II-10","page_number":41,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d4c310bc-0bff-40d5-a304-2a380ba45553","block_type":"box","text":"NM1026U-5981128-41/232","page_number":41,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1a9a8330-a808-454b-bef9-7f93fdaedebb","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":42,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"0370f750-7747-4dac-93ee-8df895420a07","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":42,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"12c18136-7390-43dc-a0fd-c54da2cec438","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"4f069dec-d4de-4011-8e32-527a7d254ef4","block_type":"box","text":"Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the","page_number":42,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"2bc4cc23-2930-4a20-bfb8-fa81a94e781f","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":42,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"fae1af49-1b8d-4a2d-84dc-896d27076864","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":42,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"a370100e-e2a3-4791-b66b-ffd8777afd3d","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":42,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"13de6a7d-dc88-4c99-b823-0e32cad9004b","block_type":"box","text":"investors in higher rated securities.","page_number":42,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"4bfa4ba3-2b00-477b-9105-bb1cd65d593f","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"d5f736af-c3e0-4979-b72e-7a19cd88f8b4","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":42,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"01bb6b88-d1ca-48e0-968a-d825f2c2ff1f","block_type":"box","text":"before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the proceeds in bonds with","page_number":42,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"83712565-0869-4428-9f8c-53113cea67cd","block_type":"box","text":"lower yields and may lose income.","page_number":42,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"00eaa8b0-c796-4112-a708-91e8634d3807","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"d0f6b37f-f455-4b1b-a716-15a4cb1ee5d8","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":42,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"a326ab38-c642-4d96-ba65-d76cf76c6daa","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":42,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"14ac1fd8-d5b9-4661-8ce6-a83eb22e6c0c","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"713c4a58-ce8b-4781-b30b-c246c787303a","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":42,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"44ff24d1-1757-4d05-8fb8-4dfac71b1931","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":42,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"5636724c-3f89-490c-bb8c-c62ef56fe0b2","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. There are fewer dealers in the junk","page_number":42,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"8bb05841-6e24-42b1-aa6c-200155e145f1","block_type":"box","text":"bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers, and","page_number":42,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"af3f516b-b48f-4bc1-83d2-e645c15a77bb","block_type":"box","text":"such quotations may not be the actual prices available for a purchase or sale. Because junk bonds are less","page_number":42,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"d3234061-b3af-4f05-8ce9-6bcd84a2a911","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":42,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"3a2caea4-3b62-484e-ac98-834b640bff2a","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":42,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"631c3a97-7a22-4a29-914a-6fa057fcf13e","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"bf76164c-cbbe-4505-80ea-9f8f6a01860b","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":42,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"aa2957be-aea3-494d-9e3a-ffcb305514bf","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":42,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"09249807-0166-4aa6-affb-919c2c28e9da","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":42,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"c1e5e30e-3bc1-49a7-b9f6-d93f9ba7c69f","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":42,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"f5d9e2e3-1e45-4ac4-a546-e6d28fd023e1","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":42,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"fdcb296c-35e4-4172-bfbc-487855663e8c","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":42,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"6c7ea5c6-71c6-4e8b-9079-3fdea0ac911f","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":42,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"ca452739-4e9e-4f0f-b924-755d4b180b35","block_type":"box","text":"due to the limited number of investors in that sector of the market. An illiquid secondary market may adversely","page_number":42,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"9c92ef3d-8730-4565-9494-98315495266f","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":42,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"8208e9b6-6f51-47c2-8465-76bb136b0ad6","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":42,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"e81b8810-e182-4c23-87ed-d9a5bedece5b","block_type":"box","text":"on high yield securities are available only from a limited number of dealers, and such quotations may not be the","page_number":42,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"e9bacf53-9e09-4f10-b323-b366356fdcc3","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":42,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"46af762d-a979-4f3a-8024-620a21a543ec","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":42,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"8d33b915-2052-4691-9852-5f0f1178e002","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":42,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"56562383-3317-4a6b-b5a4-4e7621ad2a77","block_type":"box","text":"role in determining such valuations.","page_number":42,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"0d9de673-3cd8-4a42-b165-8fad57581f56","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"79275814-510b-4b9c-9f6b-13e37d2ab924","block_type":"box","text":"A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with","page_number":42,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"4a92808d-c1e5-4e87-be2d-6602c20783f9","block_type":"box","text":"a defaulting issuer.","page_number":42,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"c606559c-36df-42eb-ba82-a013e9f42daa","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"d67db012-1313-4f9c-a408-1e20f8247a4c","block_type":"box","text":"The junk bond markets may react strongly to adverse news about an issuer or the economy, or to the perception","page_number":42,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"efc3d17c-da16-4f3d-9fdc-d4419c9be9f3","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":42,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"1472ebe7-c9d7-4007-b0f8-3b5b8b407904","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":42,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"1693944c-0f65-4f73-94d7-5eef6cdaf4c1","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":42,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"f113ffb6-53a3-4ead-b6de-814e1969e766","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":42,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"89e285a2-f0e2-46e7-a700-c15367e561cf","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":42,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"09b3ca8f-395a-453f-ba60-f50a2ed35dd9","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":42,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"89f6bdbb-43a4-400e-ad87-d1f38119a1c8","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":42,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"040c5c38-aa5b-4ce1-add2-43f523280c07","block_type":"box","text":"•","page_number":42,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"15e1fda6-99f4-4449-be83-a9d51ed9e24c","block_type":"box","text":"The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of a non","page_number":42,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"e70657ee-5807-4290-9adb-41e9066917c2","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":42,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"7c4db571-8453-4c2f-8c24-0a69abde1b8e","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":42,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"74c40f62-ecf2-4ea7-95f1-2959544e8d1f","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":42,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"6d610cfe-38ee-44db-8daa-0443ad7e1efc","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":42,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"7e946be5-746a-4cc4-a59b-d778942542c1","block_type":"box","text":"depend more on the Manager’s or sub-adviser’s own credit analysis than in the case of mutual funds investing in","page_number":42,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"cc8debd8-66a4-49cf-85e4-430e5ec9e534","block_type":"box","text":"higher-rated securities.","page_number":42,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"e3de1b88-b9f1-4527-8437-8de3a13f468c","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":42,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"5d29bcb3-39c8-4c6e-adda-2d219aa37025","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":42,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"2e6be0b9-a287-4b0a-ab3c-7bda31b8e8b7","block_type":"box","text":"the securities and the diversity of the Fund. The Manager or sub-adviser continuously monitors the issuers of non","page_number":42,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"12ccdcec-2d01-48ff-8770-91eb1a33fa2a","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":42,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"edf65ea0-7404-4291-9e9f-8f333b3444db","block_type":"box","text":"II-11","page_number":42,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2648e462-5903-49cb-8f06-66c89617f886","block_type":"box","text":"NM1026U-5981128-42/232","page_number":42,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e0057e69-8e3b-49ec-910a-ba4178ddb744","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":43,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"536d28a7-9955-4fc5-9689-f044cb53d11e","block_type":"box","text":"is reduced below the minimum credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will","page_number":43,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"6db9aef0-aca3-4c02-b29f-b3d7ad6e6ff0","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":43,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"cda1b07e-0cd6-4f08-936e-2dbab8e77eb3","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":43,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"463cb6a6-5885-4e36-a732-677013ce59ea","block_type":"box","text":"the Fund could be forced to sell its holdings without regard to the investment merits, thereby decreasing the assets","page_number":43,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"72205bee-b71a-442e-954f-a30077289047","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":43,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"91f23696-d520-4c20-9ff4-649edac03586","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":43,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"43cd2802-f86b-47b7-be18-7c1e4a32dfb3","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":43,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"58b49a65-ee51-4202-999b-547c17bb7dab","block_type":"box","text":"Mezzanine Investments.","page_number":43,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"6279f49d-9c85-4a37-acae-677afa372bc6","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":43,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"1ba83557-40d8-4b8b-a1d1-338472ef4b5c","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":43,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"9dd7564f-cdb6-4f59-84d9-a1faa5549f59","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":43,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"e550ff8e-7247-4c26-9463-42e15efe9074","block_type":"box","text":"e.g.","page_number":43,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"bc220075-cfc8-4824-82e8-5be287f9e8ea","block_type":"box","text":", with","page_number":43,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"c717a8d9-6ccf-4bad-a925-d85d21228508","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":43,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"d20ee4a6-4993-4fb3-8225-9200f363ddd7","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":43,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"1c8bb72c-e2b7-40f6-89f3-3194bd7de389","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":43,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"a57e2da5-4703-4b6d-a37d-9e8580c747df","block_type":"box","text":"other obligations of the issuer.","page_number":43,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"f35b1461-d4c3-42f9-8923-df4f289f0016","block_type":"box","text":"Pay-in-kind Bonds.","page_number":43,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"8766ee4d-66a8-405e-8f8a-4e9e5a11792f","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":43,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"57b100d8-8cee-4555-bb10-605dcb7770d4","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":43,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"d3a52890-c7ca-4efa-84ff-007778d9e7cc","block_type":"box","text":"bonds also carry additional risk as holders of these types of securities realize no cash until the cash payment date","page_number":43,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"e08c0c49-898e-44a9-9a7b-9cc298137d33","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":43,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"d7ec3c92-7b8d-40c6-9463-2ce8ae163563","block_type":"box","text":"investment. The market price of pay-in-kind bonds is affected by interest rate changes to a greater extent, and","page_number":43,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"7c2f4e6e-5acc-4765-97cb-cb5d36521c2e","block_type":"box","text":"therefore tends to be more volatile, than that of securities which pay interest in cash. Additionally, current U.S.","page_number":43,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"e94d3c36-4415-410d-84e0-d509271d8eac","block_type":"box","text":"federal tax law requires the holder of pay-in-kind bonds to accrue income with respect to these securities prior to the","page_number":43,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"c2ff600c-57bb-48d4-8657-d36ed24dce61","block_type":"box","text":"receipt of cash payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":43,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"d962e5fd-8f62-4704-8701-77007f6e98ee","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":43,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"02675e54-4c54-4007-80a2-4cbd5763bb67","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":43,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"cb654ff8-d20d-4308-9d27-213b5ceb08b4","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":43,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"b9c955ba-91a0-456b-9d5f-c0d5df3fe8bf","block_type":"box","text":"Supranational Entities.","page_number":43,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"290119fe-eba5-49ab-ba70-c364b732eb15","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":43,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"d2f80c30-c616-48c0-b61b-19f75165600d","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":43,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"00de759f-d96d-4bb8-8125-dd133dfa56a3","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":43,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"48e01462-2454-4c51-8c8c-260a51f114a4","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":43,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"203752c5-a8cc-42b0-aa27-27e439fbdedc","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":43,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"06218fde-7e03-4438-9583-e7d010bc047c","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":43,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"bd11e4b1-9706-47de-ae3a-e693a8bb6dac","block_type":"box","text":"additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay","page_number":43,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"92bf74d5-a46c-4ae6-aba6-478809530ed6","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":43,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"73f35d94-6956-4632-b9be-4fd1cdea373b","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":43,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"9e7ba25b-cebd-420c-b619-8b17f27c8657","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":43,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"74b97c52-83e7-4353-ab0e-114d6ae40cf8","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":43,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"869afd52-4a7a-4ef9-a713-1305ad811439","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":43,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"d6688a7c-7fb7-4a43-8fa9-1a3c8a7d524b","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":43,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"c7d33bfc-93a0-4d14-9cb4-17e1161aed17","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":43,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"803ba9d0-01e7-46b1-b4ec-a5914aeada60","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":43,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"32a8343a-9d43-491c-ae68-69390e170dd4","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":43,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"7c3a609a-0988-46d4-9365-66d67560f6f1","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":43,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"a38259c7-2b9e-4a5c-9233-56df06133ccf","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":43,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"beba694b-8171-49ee-a3fb-b10f3234d50a","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":43,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"79c7b803-28b4-488f-90b4-ba84f09688c3","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":43,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"7597bd13-e84e-4eed-8e94-4497223451ae","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":43,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"f547bf5c-6a68-4ecf-929a-209cf27321fa","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":43,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"03490491-03de-421d-abf7-88ab72456d91","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":43,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"ad15af90-e1e7-437d-9e91-61a9821c494b","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":43,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"7aeb5b85-5698-4fef-87c5-b318cd5f998a","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":43,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"cb3cc3d4-9080-4843-b7dc-2d1cffcd29ab","block_type":"box","text":"Available information concerning the issuer may not be as current as for sponsored ADRs, EDRs and GDRs, and the","page_number":43,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"b41591cf-849e-4c38-866d-1977481a2019","block_type":"box","text":"prices of unsponsored ADRs, EDRs and GDRs may be more volatile than if such instruments were sponsored by the","page_number":43,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"154420bf-25f8-4637-83b9-4b0f43880705","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":43,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"d37126ce-8cf0-4b28-9147-e82bfa038234","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":43,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"6ff2e62d-b6cf-471a-bc09-63349317f0b1","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":43,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"f7c1dbc2-5265-4cbc-8997-737dfb65876e","block_type":"box","text":"II-12","page_number":43,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"18318346-5fd2-4bd5-8cef-1d69da9d9b4d","block_type":"box","text":"NM1026U-5981128-43/232","page_number":43,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"46cb2483-b6c4-45bb-9749-5dc1f14227f5","block_type":"box","text":"Derivatives.","page_number":44,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"a58f6575-81bf-4bea-af6f-46b60ad53083","block_type":"box","text":"General.","page_number":44,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"a0daa50d-1852-4ed7-9cfc-9ff012ba80c5","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":44,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"eb41f08a-3233-4bcf-baef-8bac7b2f1806","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies, interest rates, credit events or","page_number":44,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"a734db86-fdc2-4c85-a6f8-18f7909eefe5","block_type":"box","text":"indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate) or other reference asset.","page_number":44,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"bfb3e472-bcc6-4c4b-a090-e86cb0703157","block_type":"box","text":"Derivatives may allow a Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and","page_number":44,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"46663c9e-454a-44df-b80a-a9668cad9455","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":44,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"3c3c433d-9b6f-4075-b474-030e57ada8eb","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":44,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"78b6f1ab-80e9-43cf-b329-1f65e725ab92","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":44,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"35a348fe-c39e-4ed9-ad8a-b14d3d5cee72","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":44,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"b112ca13-0679-4559-90d9-67cee74541de","block_type":"box","text":"i.e.","page_number":44,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"c84ae460-bc19-442f-a301-65368e920934","block_type":"box","text":", the payment","page_number":44,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"e378d602-43b9-4ef1-a8da-731a7da9a742","block_type":"box","text":"obligations of derivatives contracts are netted against one another with the Fund receiving or paying, as the case may","page_number":44,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"7268b34c-94b1-4dd7-89ea-e2c7071e943c","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":44,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"40ca967c-7f54-44c3-affc-ad5c413e5a19","block_type":"box","text":"Hedging.","page_number":44,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"c583cee1-974a-401f-91be-e05b7c55572d","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":44,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"87f13efb-e8a5-4fe2-bea2-510f40e6ea8f","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":44,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"2b9c792c-815c-46b2-a7c5-2f360b55150e","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":44,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"484e64b2-2f69-4094-a233-10b09d81f30d","block_type":"box","text":"reduce or eliminate gains. In addition, hedging may cause losses if the market moves in an unanticipated manner, or","page_number":44,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"ef5bd6d1-3924-4c84-9231-b2f52f0047de","block_type":"box","text":"if the cost of the derivative outweighs the benefit of the hedge. The effectiveness of hedging may be reduced by","page_number":44,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"efcf3e6e-517d-4bfa-9d62-72f3155edfc5","block_type":"box","text":"correlation risk,","page_number":44,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"01f89f10-772e-42e5-957d-afd5bfde5984","block_type":"box","text":"i.e.","page_number":44,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"c603a675-f1d1-407d-b552-761dcfbc6c2c","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":44,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"b2abeb2a-7f22-473a-8bd8-409f41ed0e99","block_type":"box","text":"hedged as expected by a Fund, which may result in additional losses to the Fund. The inability to close or offset","page_number":44,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"0d65422e-70f1-48be-a0b3-e5eba199fb07","block_type":"box","text":"derivatives could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging will","page_number":44,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"89ceee61-2915-477d-9226-d1ab6c28142d","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":44,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"b61c70fc-195d-43fa-a376-8c05908a2dbd","block_type":"box","text":"Speculation.","page_number":44,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"25687c4b-77d6-41e2-a2f0-0fef4434c044","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":44,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"67c451d5-6eba-444c-8b9a-c6de26bd7955","block_type":"box","text":"use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather than offset the risk of other","page_number":44,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"9cc5f402-a1b8-4364-a682-2cd51d9e9946","block_type":"box","text":"positions. To the extent a Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the","page_number":44,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"092a269e-5e3a-4c84-a632-12507913470a","block_type":"box","text":"risks of loss of that derivative, which may sometimes be greater than the derivative’s cost, and the potential for loss","page_number":44,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"ad38aefa-19a0-4f36-9250-fb72bb871d61","block_type":"box","text":"in certain cases may be unlimited.","page_number":44,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"86fce847-5aa1-4560-9b9c-d70395b2fc10","block_type":"box","text":"Regulation of Derivatives.","page_number":44,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"73656d63-eb22-47a7-9848-d0e580464ced","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":44,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"0146ca4d-1e7c-4199-96fb-0d417317dca5","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":44,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"0a89b6f4-daff-4f71-b5b3-088302f92952","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":44,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"5ad4dac8-397d-4af7-9066-1f46b5f98b81","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":44,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"21db501e-5fba-41ac-9e5b-b7720c1b82d5","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":44,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"a29822d2-0273-4c44-a8fc-7ef4b7072594","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":44,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"73b78013-fdbf-45a1-8002-7421e7e9299e","block_type":"box","text":"coverage”).","page_number":44,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"ff8da51e-ec0e-4d0b-81f3-4cc5198b4ab9","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":44,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"badc6936-d635-4ba9-9fac-92f703229ce4","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":44,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"f19aa39a-6373-49d4-93cb-a7b57226bf43","block_type":"box","text":"of the foregoing, or any similar instrument, under which a Fund is or may be required to make any payment or delivery","page_number":44,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"dd52c59d-aec0-43af-9dc8-385cb317b072","block_type":"box","text":"of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or","page_number":44,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"6a905070-8ea9-45c4-8eda-b564e52e06ee","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":44,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"6d0f4b41-6980-42b1-ab72-d58e5b5c46b1","block_type":"box","text":"financing transactions (","page_number":44,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"7ade60c2-2eac-4350-be15-fce3e6cbd8e5","block_type":"box","text":"e.g.","page_number":44,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"7a6be776-b7b6-4941-b2cc-c80bdc0bb66a","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":44,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"4fb6a8ad-d4c3-4a19-8dad-fe7e47f9f7b3","block_type":"box","text":"treat all of these transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":44,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"7beebd65-2814-4392-8f65-0170d9d8a5b2","block_type":"box","text":"securities (","page_number":44,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"64e8b0a5-0170-469a-a592-36117858ac02","block_type":"box","text":"e.g.","page_number":44,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"34654992-2ac1-4a2c-9f99-6e6bc8fe377d","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":44,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"797b0720-30a9-4fd1-9fdb-59e2b15f6024","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":44,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"128a82ef-03d7-422e-b10d-a3d705d49dd6","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":44,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"6436ac66-3f00-46b0-8fd4-f7b6921e181f","block_type":"box","text":"Commitments”).","page_number":44,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"031f9867-35d0-48ea-bdcb-bf4cb476e166","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must comply with","page_number":44,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"4a1a39b0-3c08-4cf4-8d24-d8674e2a7620","block_type":"box","text":"Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires a Fund to adopt and","page_number":44,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"d84d3d9f-cc33-41d5-98ea-b40e63fc81e9","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":44,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"24c9246a-492d-421d-ba4d-9f1ef08899d3","block_type":"box","text":"absolute limit on Fund leverage risk calculated based on value-at-risk (“VaR”). The DRMP is administered by a","page_number":44,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"7cbbc04a-7e47-41f4-8891-d27ac45e55bb","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":44,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"b8eb3232-dcbb-4050-86d6-e7c5881e186f","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":44,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"c1c69b8f-3792-4580-8bdf-2133c9cb7b78","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":44,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"48b18aea-5fad-4935-ba46-0dd924b04272","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund","page_number":44,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"be4fd26b-9841-4383-8294-87de283d35f5","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":44,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"8c4c4276-0016-43b7-829b-4b4adf0be421","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":44,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"0c71e965-e9a5-4e67-9145-4e0fa02faafd","block_type":"box","text":"II-13","page_number":44,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d25f716a-ccaf-487a-b224-069614ada2af","block_type":"box","text":"NM1026U-5981128-44/232","page_number":44,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"130f1733-60c0-46b3-bc40-4abda7af54c0","block_type":"box","text":"Dodd-Frank Regulations.","page_number":45,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"27b7df21-55a6-4cf9-a17f-bdd6dd2a82b1","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":45,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"25d7feea-0552-403a-a042-9ecae15725b9","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":45,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"91373f45-6b85-451a-8d4c-905ae4d0ba6d","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":45,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"2d33fc42-9a70-4b84-8ab9-5abeb7767413","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":45,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"8d29d0aa-d252-4cdc-ad4b-63584422dee4","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":45,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"7a56bcbe-a32d-4095-89d7-d38ce2c6f573","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the SEC as","page_number":45,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"29c53c34-2c92-4391-963b-bf565f86001e","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":45,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"9bd1859c-c019-4553-80d2-9d6e2b4b887e","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":45,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"66912285-9f51-433a-9d64-4bc391ef5a1b","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":45,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"c82c2a7b-a073-4636-9677-7094b93d6115","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":45,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"0da4a633-0235-4fa8-85f6-a714471f65e0","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":45,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"7032e32c-d74b-40dc-9fd3-763919a3bdb8","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":45,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"740a2960-f678-49f7-b44b-456940e37fe5","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":45,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"fac5335a-8a87-4006-84e5-a10fef8e9d14","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":45,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"ea907949-5834-4b30-b730-c328d007e2d8","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":45,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"95e8949b-80af-43dc-9d5c-8bec3e21b646","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":45,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"dabe2086-88e8-439d-8653-71d07ae2b05a","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":45,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"3e005a70-eee9-49d1-bb04-0bdf7828f9de","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":45,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"78bb5381-1dad-465f-a657-156f3087dfa7","block_type":"box","text":"the FCM and the customer. These regulatory requirements may make it more difficult and costly for the Funds to","page_number":45,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"a8e16e86-33a1-4e8c-bfd6-10f51959fe5a","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":45,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"b7ade249-54a8-4f5d-bf8c-e981525684c0","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":45,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"fd649828-a5f4-4133-9727-8b4829b3a5a7","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":45,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"c03327d5-feda-49df-86bd-caef35e64fed","block_type":"box","text":"member FCM or as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":45,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"11ea4659-5aac-4555-954a-df4d3b45e2ce","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":45,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"6a51904d-6f0b-43bb-9148-446eebb7f534","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not face a","page_number":45,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"26408c81-9635-4216-86a0-90f28cd64630","block_type":"box","text":"clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/or SEC and that acts","page_number":45,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"14674fe0-6d9b-4fa4-b5b8-d25595704db1","block_type":"box","text":"as a clearing member. A Fund may face the indirect risk of the failure of another clearing member customer to meet","page_number":45,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"ff9627ec-ae2c-4002-857c-99dc6ae90205","block_type":"box","text":"its obligations to its clearing member. Such scenario could arise due to a default by the clearing member on its","page_number":45,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"6e4ff259-1840-4ac0-9bfb-a07ea6df0674","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":45,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"f67f5677-dd92-441b-8e48-d5c1784dacc0","block_type":"box","text":"member.","page_number":45,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"fc98493a-1f3e-4185-9905-0643a728af14","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":45,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"777d76dd-0297-46ad-b4b8-9783e1138eec","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":45,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"571b920f-44b0-4b7f-b51d-80cd16702a5a","block_type":"box","text":"was widely permitted for OTC derivatives before Dodd-Frank. While an FCM may require its customer to post initial","page_number":45,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"ca7bec7c-a83e-43df-91b4-9ba25671910b","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":45,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"5df3231e-8d81-4c57-ac84-0d7b05897ff0","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":45,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"1f5ce68c-4b32-4541-ad32-b2fb9d81fecb","block_type":"box","text":"clearinghouse does not generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on","page_number":45,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"3f99555e-fdf3-41c1-bffe-a4c314c9318a","block_type":"box","text":"initial margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives may cause","page_number":45,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"a9b4a4bf-6d81-49f7-83ba-096fdb72bbab","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":45,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"281c28ad-6aec-45e5-a86a-357f01f1926e","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":45,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"afceec86-9dd1-404f-8c40-66b23b6a3f7c","block_type":"box","text":"payable to FCMs with respect to cleared OTC derivatives, which may raise the cost to Funds of clearing as compared","page_number":45,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"faf1a3b6-7ec1-45a9-8f7d-8ef90fe0ef44","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":45,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"e7e5e156-0043-4839-87ba-94c477bb0508","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":45,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"fa7f0142-618b-4287-afe7-284378028bfa","block_type":"box","text":"exchange variation margin with a Fund and may be required by applicable regulations to collect (and in some cases","page_number":45,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"43383cb7-24b8-4c83-b558-5b86599a283c","block_type":"box","text":"exchange) initial margin with a Fund. Both initial and variation margin may be comprised of cash and/or securities,","page_number":45,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"e018de09-fe82-410d-8cb5-7243b6ac9b03","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":45,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"82aa64a8-e011-4c59-b220-fdbae6369d37","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":45,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"e618e158-7bb3-4936-a819-2efff09629d1","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":45,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"68c2f30f-2dbb-40b4-8205-c96660aa2ea1","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":45,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"fc7e9d96-2a36-4c5c-8f2f-727ff81b5e78","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":45,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"f690ff58-c1d3-4d12-bd5a-9b1889efeeb6","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":45,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"f6593d11-a4e6-4379-937d-d878da2f33d0","block_type":"box","text":"commodities. All positions owned or controlled by the same person or entity, even if in different accounts, must be","page_number":45,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"3af1dfb8-0240-4604-bb1d-4426237f4b90","block_type":"box","text":"aggregated for purposes of complying with the speculative limits. Thus, even if a Fund does not intend to exceed","page_number":45,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"33b3ed6c-0032-4a6f-b539-167e3f1b6743","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":45,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"de0fca79-351f-4253-8bdb-d252e58107ef","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":45,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"9a588407-05fa-425d-aaf1-0e150ae0e832","block_type":"box","text":"held by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions or the","page_number":45,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"e5a20b2e-2cdd-4a37-9a6b-eac8160d9f4d","block_type":"box","text":"II-14","page_number":45,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7b6ecb67-c2de-4ffb-888d-f3efa4bfe215","block_type":"box","text":"NM1026U-5981128-45/232","page_number":45,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"bac8967c-b3b8-4d8a-b80f-826cb99dac35","block_type":"box","text":"elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A violation of position limits","page_number":46,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"e4150890-013b-4b7e-b233-f27c5957c9b5","block_type":"box","text":"could also lead to regulatory action materially adverse to a Fund’s investment strategy. A Fund may also be affected","page_number":46,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"835acb6c-b502-474e-8015-8bae8fd21d94","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":46,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"82dc3002-46fa-49e1-9c3d-77f1c53eeab9","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":46,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"e1ae23e9-6a2e-4f21-a822-a46bd553c805","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":46,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"973ed70b-3227-4fd4-947b-d18cdb0e1a31","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":46,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"9341aee8-c60e-4e00-878d-73298559bcca","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":46,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"22126f7c-c617-444e-b839-e78c606592c0","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":46,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"21fc1b8f-670c-4cc2-b3ba-bc310d62f3e4","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":46,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"e378622e-aff8-4685-b445-db23137f5f58","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":46,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"ec71d360-ecc8-4545-820f-d10abf3128a3","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":46,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"3a4c81e7-872b-4f7c-85c3-c920d4d360eb","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":46,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"8a5c27c6-1c3c-4c8f-9c5c-707e3b6e656d","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":46,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"d08dcd65-8e89-42f3-915c-8f6277e7b7fe","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":46,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"693f0ff5-522a-452f-88ab-7cd3ed9d2683","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":46,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"86e8ba27-29d1-4b6c-a4fb-bd0815265b95","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":46,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"7387250d-0b14-41e5-b31b-c9908fb4ffe7","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":46,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"c5f45be6-9c7f-40ce-81ce-5956fdbcf79a","block_type":"box","text":"Member States to apply position limits to the size of a net position a person can hold at any time in commodity","page_number":46,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"748a309e-c071-44b0-a39b-550b434951e5","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":46,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"d1a58156-c189-4e67-a937-53ce2eb0a017","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":46,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"02f44c8d-f9a9-4716-8ce7-e79aec74482f","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":46,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"730c2ae0-b7b2-4070-86cc-5ebab105b2ed","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":46,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"b559911d-ad83-4343-b7e5-edc02ea9afdc","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":46,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"8e23bd09-c34b-4f92-b69e-ffbdf6209ba7","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":46,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"845846ba-1368-44f9-8307-e78ff4b10cf6","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":46,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"36a07a94-fbdb-47af-b255-a05f9b6d9346","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":46,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"7353a66f-81be-47c8-8793-0391fc2f4306","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":46,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"ff9729e6-7041-40bb-9232-96dbc427d3e3","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":46,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"584e74ca-57bc-4793-ac6a-a59b1a08fa0a","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":46,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"1ce95124-5730-4a89-bda2-0da9d3c9fd6f","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":46,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"202cf354-d5f9-43e5-be80-fa13960520dd","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":46,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"6012b9d2-fd8f-4a8a-8dec-068b15f231ea","block_type":"box","text":"collateral received under such contracts.","page_number":46,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"7eabbb24-d77a-415d-8a2c-d2b8c88f740c","block_type":"box","text":"Risk Factors in Derivatives.","page_number":46,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"b947a5db-31cc-48e1-8734-0ce30e6da913","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":46,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"cd8b144b-c2df-493b-b7e4-c97fd9fcb82e","block_type":"box","text":"Correlation Risk","page_number":46,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"80af0e8a-7ee0-4093-92e9-88d5489fa9b6","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the value of","page_number":46,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"6835eb13-d792-4233-8d3e-3b2e5b8050dc","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":46,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"427feede-4745-465c-9584-ed764db9e92c","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":46,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"cdb4261f-e8f7-4184-a112-6b0ea3a628ac","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":46,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"09ee33ec-1648-4d6a-8dd9-5541d8acbac8","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":46,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"ff64815d-6383-4db9-a492-8dcd40d9e698","block_type":"box","text":"Counterpar ty Risk","page_number":46,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"3c4408bc-bbac-4571-99f6-dad125d1aa65","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":46,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"63d2d738-291f-4a95-80e7-c68a66bdca82","block_type":"box","text":"payments or otherwise honor its obligations to a Fund and the related risks of having concentrated exposure to such","page_number":46,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"3fb1eacf-8e7b-43cd-ac03-8c971d4e38fb","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":46,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"5bd04cc7-2574-496b-a25b-2368b1c66005","block_type":"box","text":"corporation and often do not require payment of margin, and to the extent that the Fund has unrealized gains in such","page_number":46,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"cb50585f-2f53-4bb7-a295-11e0bb38e070","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":46,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"b4004b4d-a1d1-4f46-a4e4-205b8920ada1","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":46,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"4b7cfe5a-7c49-4947-b325-b49bc39c8ab2","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":46,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"4474c0e5-04a6-4495-ba99-71ce7f7970c8","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":46,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"f642eebf-df2d-49c2-a5e1-5135c38364a9","block_type":"box","text":"transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is subject to the credit risk of the","page_number":46,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"6cdfe805-058e-4365-8276-e46ccbefbcc8","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":46,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"e0328664-58f3-4c8b-9964-c026cedd22b1","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":46,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"64c1332e-bc50-4354-8a22-051855460dad","block_type":"box","text":"clearing members. It is not clear how an insolvency proceeding of a clearing house would be conducted and what","page_number":46,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"9a855921-0ee0-4709-928a-aa4205d4577f","block_type":"box","text":"impact an insolvency of a clearing house would have on the financial system. Also, a Fund will not be fully protected","page_number":46,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"51300256-a608-4b3a-9e0a-07405ac6c2d9","block_type":"box","text":"in the event of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":46,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"8f5ba697-6452-45c1-81c5-b5446e15301d","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for cleared","page_number":46,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"426043f9-0e22-4c17-95f4-9f67df2c9cff","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":46,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"60da1192-0c32-4cb6-b1d3-78c912ab971b","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":46,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"51d902ae-01c4-40c5-9970-96e187c281f4","block_type":"box","text":"II-15","page_number":46,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4557ec3e-0506-455a-b758-cd6d978853a2","block_type":"box","text":"NM1026U-5981128-46/232","page_number":46,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"13a8cbff-4d1f-4632-a2d0-e0590337de93","block_type":"box","text":"applicable regulations, or in the event of fraud or misappropriation of customer assets by a clearing member, a Fund","page_number":47,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"b1dc7de2-c7e1-40ff-adf4-0637744a061b","block_type":"box","text":"could have only an unsecured creditor claim in an insolvency of the clearing member with respect to the assets held","page_number":47,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"e733e223-f591-442d-bb03-ee3c3d490d42","block_type":"box","text":"by the clearing member.","page_number":47,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"98d75f4d-4024-4ca0-8b36-2477b935c9f4","block_type":"box","text":"Credit Risk","page_number":47,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"301d0a54-1c13-49ba-bcc6-2a3b285f3929","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be able to","page_number":47,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"d3b702d2-6eb9-4737-a99d-933811c64786","block_type":"box","text":"honor its financial obligations.","page_number":47,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"785d2c10-6c8e-4087-b9ff-cb52ef1497c2","block_type":"box","text":"Currency Risk","page_number":47,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"05271c62-3253-4fd7-9aa9-d0df6b83c4ed","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":47,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"5b84f369-3f48-4327-9d8a-db81ce44ad62","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":47,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"7fd02de7-e8be-4694-bb08-8460fc4e22ee","block_type":"box","text":"Illiquidity Risk","page_number":47,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"a6ae8737-1e58-4b03-ad2e-b9da9d49e1fe","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":47,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"f9b07c76-99bf-4c19-9f27-70be397b579f","block_type":"box","text":"or at the price desired by a Fund in connection with payments of margin, collateral, or settlement payments. There","page_number":47,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"51dbc68e-2a18-4639-aa8b-1039666a67e0","block_type":"box","text":"can be no assurance that a Fund will be able to unwind or offset a derivative at its desired price, in a secondary","page_number":47,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"71ca8def-6bec-406c-8dc1-9be93a0be838","block_type":"box","text":"market or otherwise. It may, therefore, not be possible for the Fund to unwind its position in a derivative without","page_number":47,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"ad93934a-6da7-4fd1-94c5-817d5a503fe8","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":47,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"7aff278f-2780-437f-93ee-5bc9896aa84f","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":47,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"95b9a864-6235-447c-98a8-ee0eec42a112","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":47,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"ec6096b0-5e5e-4509-bbf0-8f6f43081ff7","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which the Manager","page_number":47,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"944acd37-af46-4730-ba9e-c9e10c28ef95","block_type":"box","text":"anticipates the Fund can receive on each business day at least two independent bids or offers, unless a quotation","page_number":47,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"80258b95-9cd3-4582-80b0-684fcdf1d437","block_type":"box","text":"from only one dealer is available, in which case that dealer’s quotation may be used. The illiquidity of the derivatives","page_number":47,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"058e06a8-3fcd-4525-a963-0fce6cef5757","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":47,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"5dd0fb48-a2a5-4dbc-bc62-1755af7f3060","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":47,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"491f6e83-d1a3-4afb-8dd6-b63038e268ea","block_type":"box","text":"failures. In addition, the liquidity of a market in an exchange-traded derivative contract may be adversely affected by","page_number":47,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"9ddf521c-471f-4117-9cd9-4386a8c066bd","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":47,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"51a87126-b09b-4015-8a0f-e8f5c5a113a3","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract, no trades may","page_number":47,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"d2ce685d-aaaa-4ca7-b7cd-042bc45170b9","block_type":"box","text":"be entered into at a price beyond the limit, thus preventing the liquidation of open positions. Prices have in the past","page_number":47,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"1571a2e7-1a53-4ae6-ba32-461448ef81bc","block_type":"box","text":"moved to the daily limit on a number of consecutive trading days with little to no trading. If it is not possible to close","page_number":47,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"b4b4db94-4afb-4a52-890b-658b48fa090b","block_type":"box","text":"an open derivative position entered into by the Fund, the Fund would continue to be required to make daily cash","page_number":47,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"196bd86d-34ca-41a3-82dd-b1d428524f57","block_type":"box","text":"payments of variation margin in the event of adverse price movements. In such a situation, if the Fund has","page_number":47,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"81df3d9d-6da7-4f2c-89f5-17e3c4dcda83","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":47,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"566901ad-40c9-42b0-977b-b6ada1d8264b","block_type":"box","text":"may be disadvantageous to do so.","page_number":47,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"caa74b48-76fd-4a2e-82a8-23db7ada11e4","block_type":"box","text":"Index Risk","page_number":47,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"ab972fec-e6f9-40ec-8b52-35ede0f79e5f","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":47,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"7c903eca-e152-4fe9-9d12-241c7c206281","block_type":"box","text":"with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a","page_number":47,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"ce083b62-61bf-4c09-8227-35710bca5613","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":47,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"17140ed8-544a-4fea-9b58-af46c07de94b","block_type":"box","text":"Legal Risk","page_number":47,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"d395f407-d3f7-466d-a22c-686eef19498e","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":47,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"404bd319-40ea-4b8c-bcfd-a77619211278","block_type":"box","text":"or enforceability of a contract.","page_number":47,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"f617ee6c-052a-4a24-ad1a-2e60dd03ef2c","block_type":"box","text":"Leverage Risk","page_number":47,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"68bcbd2c-5a6d-470b-9109-af03c585601f","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":47,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"d8a916af-9757-49e1-805c-028fc46b19e1","block_type":"box","text":"Relatively small market movements may result in large changes in the value of a derivatives position and can result","page_number":47,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"88e4eb9d-9605-4056-b461-a3f7f9c47311","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":47,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"ee768cc8-2447-4af8-92f1-292394337809","block_type":"box","text":"Market Risk","page_number":47,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"10e31253-4367-410c-bf08-9f995c575058","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to the value of","page_number":47,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"3705f91c-819c-48b5-a79e-2bec663507db","block_type":"box","text":"the underlying asset will adversely affect the value of a derivative. In the event of an adverse movement, a Fund may","page_number":47,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"005d2f08-67dd-42d8-90ec-d919daf2b906","block_type":"box","text":"be required to pay substantial additional margin to maintain its position or the Fund’s returns may be adversely","page_number":47,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"453fe8a9-2391-467d-b6ca-d3a9bf90f831","block_type":"box","text":"affected.","page_number":47,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"182c9bfb-e7c8-4c40-95cf-09619583b9c3","block_type":"box","text":"Operational Risk","page_number":47,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"4d04ea49-1f89-4945-b3ed-5b7b3d6a87be","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":47,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"82cb6819-6750-4fc3-8c93-ae7a8e1bf5d1","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":47,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"0bbd50c6-5f1e-4079-a3c6-b57acdfc16b9","block_type":"box","text":"Valuation Risk","page_number":47,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"1ecf5b40-1e49-4209-b739-6976a7b11a53","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":47,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"72840b73-bcaf-456e-b8e7-3a91d36e52bf","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":47,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"2682c626-92ba-40fb-ba45-9d3a32a83ab8","block_type":"box","text":"complex instruments or quote prices for them.","page_number":47,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"03087c3c-6a3f-47b9-a99b-1be7b9ad31b9","block_type":"box","text":"Volatility Risk","page_number":47,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"b3ada285-2863-45ba-a9a9-a3ef665c66d1","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":47,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"29d5aa20-15f4-4ab7-b79f-af54d8dcc94d","block_type":"box","text":"Types of Derivatives Transactions.","page_number":47,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"fd048e0e-6ce7-45f4-a6cc-2673b0ad5f8b","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":47,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"431c0324-2cff-4eee-b907-e3fd8efb7f61","block_type":"box","text":"including the following:","page_number":47,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"8a9b02bf-4484-48ec-ad20-3bcdcc5a69db","block_type":"box","text":"Futures.","page_number":47,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"0cc938ea-6997-42b8-bb53-99d79a3a1f12","block_type":"box","text":"II-16","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1ff25427-8858-4e86-aedf-e56f6e0f224d","block_type":"box","text":"NM1026U-5981128-47/232","page_number":47,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3de98dcc-2a1b-47ba-a34f-e32a818ee2dd","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":48,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"1c1f9558-e110-4252-bce5-83c8b44ab8de","block_type":"box","text":"exchange-traded contracts that require a purchaser to take delivery, and a seller to make delivery, of a specified","page_number":48,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"e39a3fef-e1f5-45ed-b19b-f2255cfed453","block_type":"box","text":"amount of an asset at a specified future date and price. Upon purchasing or selling a futures contract, a Fund is","page_number":48,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"f8fe7dfd-140b-43df-9410-1406c5a48882","block_type":"box","text":"required to deposit initial margin equal to a percentage of the contract value. Futures contracts are marked to market","page_number":48,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"59ef01d4-07d8-4843-adbb-3fb79c54788d","block_type":"box","text":"daily for the duration of the contract, and the Fund will either post additional margin or be entitled to a payment, as","page_number":48,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"52b417b7-339b-4f55-a873-71111e5e0449","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":48,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"a6d029af-fcbd-4a1b-a240-ef97a2f0bdef","block_type":"box","text":"A Fund may sell a futures contract prior to the completion of its term to limit its risk of loss from a decline in the","page_number":48,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"c11c8bd5-de64-4f8c-a244-aca65270e7fb","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":48,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"0530d170-5a71-4f86-aaa1-8cd7da48de12","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":48,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"0d6af44e-2511-4c68-9381-910e52356522","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":48,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"1cabd6ea-30b5-4c14-9d5e-4bccfeaa58cb","block_type":"box","text":"of the futures contract.","page_number":48,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"24b634bb-0abd-4d99-a25a-49d56597bd80","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":48,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"3e3108ea-5e63-43f4-aa9f-8d8eb1a13c7c","block_type":"box","text":"commodities directly. In the event that such securities or commodities decline in value or a Fund determines not to","page_number":48,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"1d72d34f-9c20-4d15-b807-02046c137258","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":48,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"3520bcc9-4b11-4071-b101-db55a0dd4d76","block_type":"box","text":"relating to the futures position.","page_number":48,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"d00eddca-cb68-4013-8ee8-375a573e8998","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may be","page_number":48,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"e26c38ec-470d-447d-ad82-977e9ce9925b","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":48,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"a333c02e-d4b8-429b-9e50-102e6bfbfb10","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":48,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"8b28a2b6-aa4f-4522-baf7-aa2b9e81bbba","block_type":"box","text":"Regulations” above.","page_number":48,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"f386b2fb-2b55-4a60-87a5-4067bfb4ade5","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including financial futures","page_number":48,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"9b4cf490-0e1d-4517-be33-69c87da0aa0b","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":48,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"36b112d6-7e4f-43ec-aa7a-15fba61fdd47","block_type":"box","text":"(","page_number":48,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"97d3ce64-a36e-46bc-bb1f-8b07fbb09e66","block_type":"box","text":"i.e.","page_number":48,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"c89ce5a5-c9c7-4dd6-841d-3338ccadd940","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":48,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"1b658a26-e697-4a05-a9e1-4abd0afceafe","block_type":"box","text":"may purchase put options or write call options on futures contracts and stock indices in lieu of selling the underlying","page_number":48,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"4f62f341-4203-47d9-accc-7d79cdbc0e96","block_type":"box","text":"futures contract in anticipation of a decrease in the market value of its securities. Similarly, a Fund can purchase call","page_number":48,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"34c9dca3-6775-4857-9351-f0b2c9c70835","block_type":"box","text":"options, or write put options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":48,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"0e9f48c8-5949-4fc1-80d1-8d3344cba5b1","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of securities which the","page_number":48,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"9ef48aad-6694-47d8-8e19-5828074672f4","block_type":"box","text":"Fund intends to purchase.","page_number":48,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"dfaa5576-e089-4335-ad3c-4468116dc3ca","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":48,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"181f2ccc-f567-495d-8839-7aff6c36727c","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":48,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"72821f68-32af-4c85-ac87-0165a6d49c11","block_type":"box","text":"determined by reference to the value of a security, an index of securities or a commodity at a future point in time. The","page_number":48,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"b40b47c3-d229-4f24-a9d4-c1a78726c6da","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":48,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"2e0a15d5-591a-4861-8c50-ef57d23a803c","block_type":"box","text":"illiquidity.","page_number":48,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"bb59a18c-7f05-430b-a2c9-7eea0982126e","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":48,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"8aa3b08a-80fd-4791-bdbb-bdc535009db4","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":48,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"0e3ee4bb-6b0c-4073-aa6d-391e6d9dbdb3","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":48,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"2b25d70b-17f5-405c-aa19-1c169f778539","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":48,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"fdb622af-2a1a-469e-925c-6db9f375f283","block_type":"box","text":"set by a regulator, such as a government entity, on the total amount of specific greenhouse gases, such as CO2, that","page_number":48,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"a127d2c1-9788-4216-8f34-4062234c0bdf","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":48,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"b7534ef5-6975-4fb9-9e69-6b7607af15b8","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":48,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"9cf59c94-a614-48c6-8fb4-e0187bc24b08","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":48,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"28dbc134-54ca-4114-9b78-d9b05869eaf8","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the demand","page_number":48,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"70b1df1e-b63d-48c0-b16a-b9aea38a2a86","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":48,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"3b76dab3-02c3-41f9-ab16-a2370e282e6d","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":48,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"cd4cf400-9e7b-4ec2-8d37-9d31599a14be","block_type":"box","text":"for carbon futures contracts is still developing and may be subject to periods of illiquidity. During such times it may be","page_number":48,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"86862f1c-aff5-486a-b039-0df047277e63","block_type":"box","text":"difficult or impossible to buy or sell a position at the desired price. Market disruptions or volatility can also make it","page_number":48,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"ee43b8ec-b42e-47e0-b068-66879d8ff4e2","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":48,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"73bad8bd-e8eb-440e-9bfa-2fde1f605c75","block_type":"box","text":"Swap Agreements.","page_number":48,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"c3592361-29a0-4464-962a-fe42f6f49daf","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":48,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"35f9302f-ffda-428d-9807-055c5a6e8cbc","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":48,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"d521c99c-c955-4c01-ac20-20d7837a4b56","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":48,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"8839af71-dace-4e9c-ac9b-ec2d24d328d8","block_type":"box","text":"earned or realized from one or more underlying assets or rates of return, which may be adjusted for an interest","page_number":48,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"c255c459-abbd-4f87-bf0d-ae8ca06d6381","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":48,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"d4fbcbe9-5724-400c-a35a-9d4b417343c6","block_type":"box","text":"a “notional amount,”","page_number":48,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"61d9e82e-0c56-4f3c-9493-4969ad1745cc","block_type":"box","text":"e.g.","page_number":48,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"641eec78-f3d7-470f-b9ee-549ee46c140f","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":48,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"4ae1d93a-32d8-4cc2-8528-2505c2e8cf66","block_type":"box","text":"II-17","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9b37e390-6231-49b3-96be-00451fa726f7","block_type":"box","text":"NM1026U-5981128-48/232","page_number":48,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3950c22f-8f4e-4576-8544-62c3324289ae","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":49,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"56b0a1f0-b987-40a5-9eb5-d03086c93bc1","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":49,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"73d07df4-1c90-4c46-a24e-a937399c6a56","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will generally be equal","page_number":49,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"36f4f009-56ab-4b20-bb23-de3a67af39ba","block_type":"box","text":"only to the net amount to be paid or received under the agreement based on the relative values of the positions held","page_number":49,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"52f0f1f1-e7d3-4e2d-99e9-dba34f4b7fdd","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":49,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"82fdc6c1-3a43-499c-8436-bc36043d92a1","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":49,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"4125c0d9-9b35-429d-8433-d3be80415daf","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":49,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"9c5cb61f-9d3d-47de-bd8c-358e9cf15eb2","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":49,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"e8d4e0df-7a8f-4ade-9c29-123df8ff622a","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":49,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"ad08e490-8959-417f-ba3e-855011d14f60","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":49,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"7f6051c8-60a3-453a-9848-eeea71cc898a","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":49,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"5048be1e-e20f-4d91-bb9a-aee528075824","block_type":"box","text":"“seller” an up-front payment, or a periodic stream of payments, over the term of the contract, provided generally that","page_number":49,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"2305ed36-f19d-4ac9-91a1-9ae8a148fd5c","block_type":"box","text":"no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the","page_number":49,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"d3032137-c118-40c9-9e96-43a5a599f53e","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":49,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"d66109e6-54db-42cb-975a-565e892df038","block_type":"box","text":"the reference entity. A Fund may be either the buyer or seller in the transaction. The Funds may enter into credit","page_number":49,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"c7b4143a-98c0-45ac-87d7-35b45fd5016f","block_type":"box","text":"default swaps that reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that","page_number":49,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"c87ba974-d046-4a6b-bb0a-f82ba2658991","block_type":"box","text":"make up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name CDS and","page_number":49,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"d39f9c5f-d00d-4f35-9b20-123df0eb85d6","block_type":"box","text":"index CDS.","page_number":49,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"a4a4e8ae-17be-4303-b3e0-076c48214067","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not currently held by","page_number":49,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"3e9bd997-7b6c-4e91-b10f-faf693e0641c","block_type":"box","text":"a Fund. In circumstances in which a Fund does not own the securities or loans that are deliverable under a credit","page_number":49,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"30b78938-f21d-4550-8a80-e6699bb7b585","block_type":"box","text":"default swap, the Fund is exposed to the risk that deliverable securities will not be available in the market, or will be","page_number":49,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"5d86c5aa-9574-4acf-a2d0-daa4309975bf","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":49,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"df60c17a-8581-4c77-93ad-fc3c207a9717","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":49,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"2b36f297-5fcd-47a7-a311-f3ce48c53e4d","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":49,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"9c6cc4f3-712a-4738-acdc-fc0cd1893779","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":49,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"8a481bea-67d1-4339-aad7-18d1ec9a9177","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":49,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"9a730a00-c396-46df-830f-ac739ef157c9","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":49,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"c675b95b-e779-4074-9b3b-87fb07c05146","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":49,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"4849a985-c71b-418a-94a2-8c33d4ac0f5b","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":49,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"29bffa95-4eab-46c5-9597-f944717c0c27","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":49,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"7d9c8504-952f-48d7-869e-409188e836ef","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":49,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"410444f0-8aaf-4473-9420-cb40d8039b6b","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":49,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"efa6d531-4606-4f7b-90c1-7cb1fc9a2f18","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":49,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"6eba8955-d262-40ec-a5f6-3d6a7d6f140c","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":49,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"c2fff567-4128-4c3e-b735-88ec94b73adb","block_type":"box","text":"respect to a “credit event” or otherwise does not establish a cash settlement auction, a Fund may not be able to","page_number":49,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"38c98450-ee34-4f33-ba45-01bc8330fc6a","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":49,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"aeec7640-4dd4-4ed8-b8a6-3811b66297d5","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":49,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"3f5b2a33-abba-4c97-88ab-d69a56fc3d16","block_type":"box","text":"If a Fund is a buyer, it will lose the payments made under the terms of the credit default swap and recover","page_number":49,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"a95b4073-9976-481a-b75f-a42bfe7799a9","block_type":"box","text":"nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value of any deliverable","page_number":49,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"858f40eb-1023-4b28-a7bb-1bf8015e11fc","block_type":"box","text":"obligation received by the Fund or the amount of cash settlement received by the Fund pursuant to the relevant cash","page_number":49,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"5ff6ac87-1a89-4bc0-9163-400d61995ccf","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":49,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"cca8bf8a-380e-4027-8f63-f04e01cde655","block_type":"box","text":"it pays to the buyer, resulting in a loss of value to the Fund. A Fund that sells credit default swaps incurs leveraged","page_number":49,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"98ccd3c0-4d53-409f-a16e-34767435a351","block_type":"box","text":"exposure to the credit of one or more reference entities and is subject to many of the same risks it would incur if it","page_number":49,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"6dbceabc-7be2-43c0-a05c-c6ea501494ac","block_type":"box","text":"were holding debt securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":49,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"e8c69f32-7710-45e6-9990-18b051e85e7b","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt obligations. In","page_number":49,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"e3dba90a-2e32-4acf-8490-b5b2dca830de","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":49,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"823681c3-e5ba-4835-90fc-96fe4b2c44ab","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":49,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"f6e93c5c-6ef1-49c9-b31a-e83d4944842b","block_type":"box","text":"which of the reference entity’s debt obligations to deliver to the Fund following a credit event and will likely choose","page_number":49,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"df209e7e-1099-481e-a2b0-53b08c47d5c5","block_type":"box","text":"the obligations with the lowest market value in order to maximize the payment obligations of the Fund. In addition,","page_number":49,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"c65cb742-3469-4eca-8da8-b66ae6633ce2","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":49,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"98fb8b5f-8b9c-4bb3-a144-dc612a7db31d","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":49,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"f80866ba-c09e-4ad6-b44d-4a67deae1150","block_type":"box","text":"conditions.","page_number":49,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"0f6e561d-ca99-44ba-a32e-804221e0bda8","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":49,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"cadec65a-aec9-4162-a02b-4cb8819b30f8","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":49,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"db4b37a3-ab06-4991-82c8-2265f7d437dd","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":49,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"042e73cd-0c06-4b2d-ba6f-09405dcedc57","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":49,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"bf4ec084-43a7-4412-b9ae-ef8f82bc45d9","block_type":"box","text":"clear some, but not all, of the other credit default swaps not subject to mandatory clearing. The Funds face","page_number":49,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"8df80794-b3a3-4d8c-91d0-26c914d4ee47","block_type":"box","text":"II-18","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"da2cc1b4-30ae-4ee2-9a57-6f0e776719b7","block_type":"box","text":"NM1026U-5981128-49/232","page_number":49,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f1aeb5ce-bebb-4efb-b8af-a24ed70152fd","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":50,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"fb0dd847-8292-4d23-ae3f-ecf03a1a995e","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":50,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"f5eb0088-5c3c-43c2-ad68-fabe01a80654","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":50,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"27b654fb-505c-4853-a98c-d521de03808b","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":50,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"bde52c0c-208d-473c-a330-0fd09db87dd5","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":50,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"79d3885d-568e-4c0d-a6d2-7ee8cf6cdcf5","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":50,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"838a9c91-872b-435c-bb69-34c2f1ca331f","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":50,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"9b78eded-ffc0-4492-87b4-50c653417a95","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":50,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"c36a46cc-1ca1-4f58-97f6-4a28a0118b99","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":50,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"69e8a1aa-faeb-4035-8287-830b8a032852","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":50,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"7f355b0a-2e5a-477d-baaf-a9814e3a59cf","block_type":"box","text":"underlying security or loan to or by the Fund rather than by way of cash settlement, and there may be a wider range of","page_number":50,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"2f102ee8-1b9c-48aa-8cf3-6d12e4cc491e","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":50,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"29d3a94a-ab54-4c17-872b-0c6a0b06473f","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":50,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"82e30c2b-f578-4cbc-8e46-c360c68ab6d5","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":50,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"c29ae6e2-005f-48f6-aee1-c582441a1f6a","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":50,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"be0a3366-69c4-492c-9277-484ced337a86","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":50,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"bd736b46-a948-4031-8203-34e7a2f8626d","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":50,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"90cb8daf-5097-4704-bcad-56ef16c264d1","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":50,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"7184eb50-f520-4afd-b0c1-10193e2f44f9","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":50,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"1a9677df-fd7c-4dc9-b659-64fde19ed81d","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":50,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"c3bc6467-faf3-4537-a358-cced0542f606","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":50,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"71dfa82a-3d05-4d58-b448-905b5f7789aa","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":50,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"3b0763d6-a7ed-4ed0-ba8e-545aa4ad5e5d","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":50,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"3283a313-2b71-4c1a-aba3-a57b157a4ba7","block_type":"box","text":"interest rate swaps are permitted, although not required, to be cleared. Most of the interest rate swaps entered into","page_number":50,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"6cd3307c-f40d-43bf-ade3-c76ac884238a","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":50,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"d03c176a-1ae1-4c30-9f6f-bc9dc6d67c07","block_type":"box","text":"cleared interest rate swaps.","page_number":50,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"8ade5b94-1978-45cb-9098-ba181ef624bf","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":50,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"02d390aa-704f-4667-8469-c2c8674f9d26","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":50,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"363d1430-d415-4e6e-9803-2056586cdbd3","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":50,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"0b7900a6-5d18-4a23-acec-4ea5b000d05f","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":50,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"284939a6-764a-4675-b4dc-b0abc6bf31d5","block_type":"box","text":"Fund will have contractual remedies with respect to the transaction but there can be no guarantee that the Fund will","page_number":50,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"8129d9ff-3bc7-4c76-a8d0-255e5b42a4e5","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":50,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"058950da-80f9-46dc-bd28-2dc0665fa71d","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":50,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"f64c52da-c75b-4d2c-a16d-98302e213bb9","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":50,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"14bcbc52-e40e-4dc2-ac17-d8827eada8c5","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":50,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"9dd0290c-b394-4f57-9a84-91a4b71bc999","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":50,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"34aff0d9-5da7-411c-8a29-b61d6b95cb30","block_type":"box","text":"or variable interest rate, index or asset.","page_number":50,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"aa92b157-59e4-4a2a-81e8-8b389d291b6c","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a","page_number":50,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"71efd981-fa0a-4d08-8fc2-b21a4948de5f","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":50,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"f446c152-78bb-4287-b7ba-43c20bc0206f","block_type":"box","text":"such interest rate floor.","page_number":50,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"572957ca-23d1-4b35-ae75-03dbb93d4661","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises above a","page_number":50,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"5e80445b-3f67-42d1-b35b-2f403b6f297e","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":50,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"77fab452-b939-4b60-af45-12172fee621f","block_type":"box","text":"such interest rate cap.","page_number":50,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"944774b6-184a-416e-b920-5a5c1ad87f6e","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":50,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"71efb2c7-6f2e-43de-b9cf-12c77df62ff6","block_type":"box","text":"commitments to pay or receive interest,","page_number":50,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"337d2ff5-262e-4f29-8b81-60ef29adcb80","block_type":"box","text":"e.g.","page_number":50,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"8eeeb68f-4515-4c18-ba11-cb9c053f85f6","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":50,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"2a0eaf26-d2e9-4eae-a538-1d6e993f415d","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":50,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"0e14a46b-892b-4da0-8bb3-f5c07a2cfc1b","block_type":"box","text":"swap the right to receive interest at this fixed rate for the right to receive interest at a rate that is reset every week.","page_number":50,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"90562720-e046-41d0-9b41-b13e818f2b8e","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":50,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"a69f7578-f05b-404d-8f44-3b78eb8cbc6e","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":50,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"16cd9e08-ce47-45ee-85b4-1bcbf5328d20","block_type":"box","text":"security with an interest rate that is reset every week and it would like to lock in what it believes to be a high interest","page_number":50,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"570c3132-028e-4db6-a7fa-0d369ec9c945","block_type":"box","text":"rate for one year, it may swap the right to receive interest at this variable weekly rate for the right to receive interest","page_number":50,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"e849f726-a3e4-4b30-a4a4-a58861df00de","block_type":"box","text":"at a rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to falling interest","page_number":50,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"319ec356-b6ec-4806-bc72-bc72e2eb3d14","block_type":"box","text":"rates and may permit the Fund to enhance its income through the positive differential between one week and one","page_number":50,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"af874863-5ab0-4d20-a037-999bdfcfc17f","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":50,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"9a3afdba-f918-4e18-ba84-59eb7b582833","block_type":"box","text":"II-19","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6361816d-8330-466d-b3f7-11b2e841738b","block_type":"box","text":"NM1026U-5981128-50/232","page_number":50,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ee04bf6c-d844-467f-b921-1f821d5aabc9","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":51,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"25adfa43-f1f7-4360-b230-59647259b31c","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":51,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"dbbfb49c-8e96-4ef3-9613-ae3e1823b0a0","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":51,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"9d63c366-027e-4690-9ac9-b609d2e22d1f","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":51,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"f047a272-aa4a-44c0-8394-cd6bc4893f68","block_type":"box","text":"Total Return Swaps.","page_number":51,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"d60f200b-02f1-4d35-a70e-12b2cf633766","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":51,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"c9683f15-3b35-4569-a6e2-e71f69e92820","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":51,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"9c9bd7f9-fa9c-434f-bcc2-ece7dee06478","block_type":"box","text":"a fixed or variable interest rate or the total return from different underlying assets. The return of the assets","page_number":51,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"0a6c9453-4de9-46ba-904b-782b06eda037","block_type":"box","text":"underlying the contract includes both the income generated by the asset and the change in market value of the","page_number":51,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"1d7c469b-607d-4ad1-ad4c-4d9d03f109ed","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":51,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"7b676de3-5527-45cc-beda-63c1fbfaa8c4","block_type":"box","text":"Total return swaps on a specified security, basket of securities or securities indices may sometimes be referred to as","page_number":51,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"64770653-069d-451f-94c0-98f7defe1b32","block_type":"box","text":"“contracts for difference.”","page_number":51,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"882ed2f9-63c7-4bbe-9533-60acaa3d4dde","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking physical","page_number":51,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"92d9020a-1f5c-4b6d-8feb-a55d19f5f0c8","block_type":"box","text":"custody of such security or investing directly in such market. Upon entering into a total return swap, a Fund is","page_number":51,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"586d7005-531c-42ae-a2ab-ad9921365e8f","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":51,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"3ffa1bb4-5037-4cb7-9def-546ed2aecc06","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":51,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"cf85f56f-de30-4aeb-b21e-994ac3ecc5f4","block_type":"box","text":"the notional amount of the swap.","page_number":51,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"5644fbdf-dc04-456f-ba7b-93263468ab1a","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":51,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"6f652843-16af-4de9-8ed9-2c3222334e15","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":51,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"011c1f7f-e096-4dc9-ac59-2c918db38848","block_type":"box","text":"Options.","page_number":51,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"24314ab9-68eb-4db8-b679-4858605f54a9","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":51,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"b9b35f73-5a29-45d8-9f3b-c29e40dd6050","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":51,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"1c0351fb-858b-42ed-9501-fa928f0dc513","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":51,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"21af90cc-c5ee-4945-8b83-e79ef3339566","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":51,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"0373ddda-c8cf-4f6e-89c3-fdaccf12ef7a","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":51,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"f32d97ee-9d6a-4702-82cf-5a75390ccfbb","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":51,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"2ca77f98-3e4c-4dd7-80a5-dcdd6827f1ec","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":51,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"c795ef84-e0d1-4581-8480-d1e76149d262","block_type":"box","text":"OTC options have more flexible terms negotiated between the buyer and the seller, but are subject to greater credit","page_number":51,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"f62c31d6-3f01-4589-aaa8-205cb23f57e4","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":51,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"5dc96951-1e5f-4be7-844d-65be11f92f08","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":51,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"d32ad8b4-f996-4263-9e0e-b6b6fd28f243","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":51,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"822bd5c8-dda4-4f69-ad49-c834292071c6","block_type":"box","text":"exotic options that can only be exercised (or automatically expire) if the price of the underlying asset reaches one or","page_number":51,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"fc81ebd4-1b63-4206-8c70-6ae7ef35c109","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":51,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"8bfb6ea4-8d2d-4263-b3bb-2a1a41d5452b","block_type":"box","text":"a fixed all-or-nothing payout if one or more predetermined conditions are met. Exotic options are typically traded in","page_number":51,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"9205352a-2f45-4d33-b704-a80b1710a9cb","block_type":"box","text":"OTC markets.","page_number":51,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"e4b62c3d-b1cf-481d-8706-60498a93e563","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":51,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"afec9c32-8616-4327-b0a3-ef23657fc988","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":51,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"0a0e2af5-f742-41d4-a401-588171c0f0fb","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":51,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"b250c1d5-9e74-4bc6-8595-0b238cc5dc8f","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":51,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"c9b1adc8-9936-4c41-9a55-21a9e390b062","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":51,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"fb5bced2-9167-45a4-a9a1-0016943d2112","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":51,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"9a7fa2c7-8784-48f9-8a4f-b0f12262e83a","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":51,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"3bf0ee3c-a411-46d9-9c55-ce4f6c443828","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":51,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"c488b336-9340-49be-a6e9-e60ef154db4a","block_type":"box","text":"Options Clearing Corporation may not at all times be adequate to handle current trading volume; or one or more","page_number":51,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"ef231fee-483c-466a-8072-a36db104f284","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":51,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"dcade8d6-5c69-40a6-9d9d-354cfec902c6","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":51,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"88450f33-c23f-450a-9fa2-c0a57b6803bf","block_type":"box","text":"class or series of options) would cease to exist, although outstanding options that had been issued by the Options","page_number":51,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"cac85696-cb75-46dc-ace1-47ce27f04ebe","block_type":"box","text":"Clearing Corporation as a result of trades on that Exchange would continue to be exercisable in accordance with their","page_number":51,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"6a9a52b5-3d2c-43fc-a0c7-12d9a2566a5d","block_type":"box","text":"terms.","page_number":51,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"db7603b8-9425-49f2-b0b5-95a82ded595e","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":51,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"12244fec-802d-48e2-9583-b106a82ca1f9","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":51,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"54c8ebae-ff2a-4a41-b4a3-484396fbb295","block_type":"box","text":"(regardless of whether such options are written on the same or different exchanges or are held or written on one or","page_number":51,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"5e1e9c4b-d281-4951-acc2-15c665437320","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":51,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"d62d4eb3-5bf1-4177-8eda-c445e658bfbf","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":51,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"0520f825-7e24-4790-b6dd-90d0d3b9d46f","block_type":"box","text":"II-20","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f496b037-7ffd-4f94-af40-bd2785940886","block_type":"box","text":"NM1026U-5981128-51/232","page_number":51,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0635f513-05ab-4555-b891-1a6c3edef513","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":52,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"5641dcf7-bf14-475c-9a06-df473ce1ca23","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":52,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"cdc610c7-06cf-425a-9d58-4132ae356eb8","block_type":"box","text":"Call Options.","page_number":52,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"2ba456f5-4cd4-4d67-a4c0-94c5f529eb97","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in which it may","page_number":52,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"e41e90fe-388b-48d0-b21f-7b010eca9309","block_type":"box","text":"invest. A purchased call option gives a Fund the right to buy, and obligates the seller to sell, the underlying security at","page_number":52,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"48971a47-14f1-4b07-a5f3-617be3faaaad","block_type":"box","text":"the exercise price at any time during the option period. A Fund also may purchase and sell call options on indices.","page_number":52,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"853c9ae7-32ef-4ebd-b136-14c783645ae0","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":52,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"d9ffa1a9-18de-4f5a-ae24-59c0bd033fa1","block_type":"box","text":"underlying the option at a specified price upon exercise, an index option gives the holder the right to receive cash","page_number":52,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"73b6cff0-029c-4027-9b0a-642964894823","block_type":"box","text":"upon exercise of the option if the level of the index upon which the option is based is greater than the exercise price","page_number":52,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"0de727b7-8e5f-4ca0-9e17-e0546b81d943","block_type":"box","text":"of the option.","page_number":52,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"3ec93b67-675a-4c0c-a510-adfcfb9f1d8e","block_type":"box","text":"A written call option is covered if a Fund holds a call on the same security or index as the call written where the","page_number":52,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"b2658eaa-534d-4014-8f8d-08bd4db3f860","block_type":"box","text":"exercise price of the call held is (i) equal to or less than the exercise price of the call written, or (ii) greater than the","page_number":52,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"24ea3307-6236-48b3-bff4-0612ca70949a","block_type":"box","text":"exercise price of the call written provided the difference is maintained by the Fund in assets which are not considered","page_number":52,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"13535b7c-077f-4126-bad1-58adce21a635","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":52,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"f5cc1ddd-df03-438a-a57b-c24e1b06ce02","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":52,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"e3db17d2-14a9-4887-bfd1-5a02ad6fab4a","block_type":"box","text":"A Fund may write (","page_number":52,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"b028ead5-2861-44af-a5db-5ccde61bdb79","block_type":"box","text":"i.e.","page_number":52,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"76b12c9d-7277-467e-8694-451a29b1863f","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":52,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"dcb859cf-dea5-407b-bc18-42dbea7f7a26","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":52,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"9976ac09-284a-4f0f-8409-ef6c582fafd3","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":52,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"390782da-f91f-44b8-a203-a899bda6e25c","block_type":"box","text":"specified future date and price set at the time of the contract. The principal reason for writing call options is the","page_number":52,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"0c1a11f1-2669-47aa-91eb-704af86579e5","block_type":"box","text":"attempt to realize, through the receipt of premiums, a greater return than would be realized on the securities alone.","page_number":52,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"533af033-e398-4bf2-8eed-9022d3421795","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":52,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"3c1ca533-065a-4f77-b08b-efaa780032e2","block_type":"box","text":"increase in the underlying security above the option exercise price. In addition, a Fund’s ability to sell the underlying","page_number":52,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"8a1ae57d-cea9-47eb-9f59-48af46ecf058","block_type":"box","text":"security will be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":52,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"af16b17e-9b80-41f3-99a0-9193979ce649","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an offsetting","page_number":52,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"71e3e80c-e876-4b58-9796-c27e7be6d3f2","block_type":"box","text":"purchase of an identical option prior to the expiration of the option it has written. Covered call options also serve as","page_number":52,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"43a1e310-c2da-4cc4-93b8-5c6780765064","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":52,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"dae9c817-7aba-4038-b423-6b72ba7af06d","block_type":"box","text":"A Fund may write","page_number":52,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"8816f27e-f2d5-4d8c-8ae1-abf37854ea2e","block_type":"box","text":"(i.e.","page_number":52,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"96fe391b-2359-4ce3-b74f-5834a48fdaa2","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":52,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"17dae17b-d387-4f72-a5e1-edf50eafada5","block_type":"box","text":"are not currently held by the Fund. The principal reason for writing uncovered call options is to realize income without","page_number":52,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"e36b120b-e493-4902-ab27-fbeb73c81374","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":52,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"3dc91bf8-3d7d-41a6-8842-74c805f6af31","block_type":"box","text":"a Fund must deposit and maintain sufficient margin with the broker-dealer through which it made the uncovered call","page_number":52,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"67e05b15-b4b9-4608-88c0-8b912ad7d045","block_type":"box","text":"option as collateral to ensure that the securities can be purchased for delivery if and when the option is exercised.","page_number":52,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"575e00d2-7b80-4fcb-bc2f-65fba3bd02b0","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":52,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"c6e06e40-6cb0-4c8c-941b-eb1b1433132a","block_type":"box","text":"strategy to increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls because","page_number":52,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"f011d99b-dcbe-4199-9cc7-c57fb891869b","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":52,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"0a21cf0e-424d-4f4c-abcf-1cab4664e2a7","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":52,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"a20060de-e0d9-4e7c-bfd1-446599a2edef","block_type":"box","text":"the underlying security to meet its call obligation. There is also a risk, especially with preferred and debt securities","page_number":52,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"c2718f79-4702-4f6d-846f-cf8bb3fb27ae","block_type":"box","text":"that lack sufficient liquidity, that the securities may not be available for purchase. If the purchase price exceeds the","page_number":52,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"16711241-49e2-4db0-86a4-591d27ddf255","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":52,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"e0d8dcf1-d051-42f8-8263-078620196011","block_type":"box","text":"Put Options.","page_number":52,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"53d5cab8-85f0-4e16-942a-5c8729c98c8e","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its securities or","page_number":52,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"d6d4f83b-6984-4052-82d7-46d952ac46fa","block_type":"box","text":"to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying securities or instruments","page_number":52,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"068b0c02-e00a-474d-98cf-7b2b5e5c77fb","block_type":"box","text":"at the exercise price, thus limiting the Fund’s risk of loss through a decline in the market value of the securities or","page_number":52,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"d38d18f7-e45b-4ebb-9c23-d91ea3400359","block_type":"box","text":"instruments until the put option expires. The amount of any appreciation in the value of the underlying securities or","page_number":52,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"2f78eb7b-c859-424a-a3c2-59d442212a93","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":52,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"192dd7a3-9b84-4ed1-bad6-d293383a5560","block_type":"box","text":"costs. Prior to its expiration, a put option may be sold in a closing sale transaction and profit or loss from the sale","page_number":52,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"411aa466-345b-4311-9b8d-410c9b5496a4","block_type":"box","text":"will depend on whether the amount received is more or less than the premium paid for the put option plus the related","page_number":52,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"df75712a-9887-4843-af66-591d320e87ba","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an option by means of","page_number":52,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"49f8742e-9710-481a-86e6-8b443464ea85","block_type":"box","text":"an offsetting sale of an identical option prior to the expiration of the option it has purchased. A Fund also may","page_number":52,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"a43f3916-4bd1-410c-9460-f38e98ea8ac0","block_type":"box","text":"purchase uncovered put options.","page_number":52,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"c07b9cc4-fe6e-4b71-b0b1-fd20081a22dd","block_type":"box","text":"A Fund also may write (","page_number":52,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"06590d69-c198-4a16-84b3-7076342abe3a","block_type":"box","text":"i.e.","page_number":52,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"11b0b8ba-7ff7-468a-9cc1-00e983ee8166","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":52,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"29719bd7-f81e-43b2-9b96-855257c7de7d","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":52,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"b85f2e12-cf3e-4bca-a742-c5acb04391ac","block_type":"box","text":"A Fund also may write (","page_number":52,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"51081ba5-b7e5-4354-981a-db12b75a2065","block_type":"box","text":"i.e.","page_number":52,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"56bca404-d566-4a5c-a7be-1a641320fdf3","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":52,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"31bd7166-d4bd-4c58-a27e-8a38a0444f7e","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":52,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"ba50b92e-325a-4e3d-b939-82e10994be19","block_type":"box","text":"collateral cash equal to the exercise value of the put option with the broker-dealer through which it made the","page_number":52,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"12c595c1-0911-4e63-b612-7b76668272ab","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":52,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"8f2f20b0-5af7-4c4e-af4e-e035426f170e","block_type":"box","text":"acquire such securities or instruments at a net cost below the current market value. A Fund has the obligation to buy","page_number":52,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"85e9a101-dae3-4829-97e3-42854f114d7c","block_type":"box","text":"II-21","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"641aed9c-f7c3-4a1c-8e09-cab93781c5dc","block_type":"box","text":"NM1026U-5981128-52/232","page_number":52,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b8e70bfc-0d43-4d5e-8d55-d6840ca5a42b","block_type":"box","text":"the securities or instruments at an agreed upon price if the price of the securities or instruments decreases below","page_number":53,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"c3ffb459-ee0d-4e7f-a2b8-8bcecc41504d","block_type":"box","text":"the exercise price. If the price of the securities or instruments increases during the option period, the option will","page_number":53,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"29e4a17b-d292-4c0f-847f-7fd1e8f1b940","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":53,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"223c2789-cdc7-4cb6-a24b-0f59f2785edb","block_type":"box","text":"the exercise price.","page_number":53,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"c0821576-0e72-471c-b7de-c4f08d0656df","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":53,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"f8f2f234-5004-435d-9d2f-38356e7550bb","block_type":"box","text":"The following information relates","page_number":53,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"165e66c1-d645-4d51-ae0a-2054500ee776","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":53,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"86a1757a-a09c-44de-a59c-5770fe548e87","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":53,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"159fa304-1645-48ec-a643-5d9d4fddf448","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":53,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"03df375c-823d-4353-84d8-807f525c9eef","block_type":"box","text":"it holds no longer have a sufficient remaining principal balance for this purpose. Should this occur, a Fund will","page_number":53,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"e7ea2263-5f81-413a-84d1-2ff84f8c8113","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":53,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"8326df0d-f6a7-4a89-951c-e8b2e19d069e","block_type":"box","text":"market in order to maintain its “cover.”","page_number":53,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"04075538-b55a-4894-a00b-685973cdcabc","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":53,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"799c425e-ad2b-4a64-bb01-92df772deced","block_type":"box","text":"to represent cover for the option in the event of a decline in the GNMA coupon rate at which new pools are originated","page_number":53,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"29f4a993-4dca-4b83-b131-44ef33245ee9","block_type":"box","text":"under the FHA/VA loan ceiling in effect at any given time. If this should occur, a Fund will no longer be covered, and","page_number":53,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"75be9b16-cdf6-4aa7-acf6-7619737bd782","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":53,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"fcaaff61-b8ea-430a-adf3-04231a0fef94","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":53,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"f20d4c6f-9ca3-4708-bcd3-82dcb5d11ea5","block_type":"box","text":"and incur transaction costs.","page_number":53,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"924de621-f408-4f1e-bad3-aca0521d1a59","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":53,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"9370680d-9657-4ee5-8922-f8973da8c2c2","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":53,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"26763310-6cff-49aa-9e67-230a00f01f4b","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":53,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"6326a584-f4aa-44b9-b72e-f5a88487bee6","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":53,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"765fed75-3e0d-43fd-bbe3-b97e48df9c5f","block_type":"box","text":"i.e.","page_number":53,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"6ffac641-883c-4351-b1d0-518aafc6f2d8","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":53,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"11804643-9aa4-44a4-87ce-3e4b9cc140a7","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":53,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"b61ac3c8-ea8e-49d6-943c-bcc24324d2d2","block_type":"box","text":"it writes a swaption than it will incur when it purchases a swaption. When a Fund purchases a swaption, it risks","page_number":53,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"71305d6c-7d0b-40f4-9f13-11db7c7d1ca8","block_type":"box","text":"losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However,","page_number":53,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"bbd10666-e9d3-4e77-ba51-f4a512bf9ef5","block_type":"box","text":"when a Fund writes a swaption, upon exercise of the option the Fund will become obligated according to the terms of","page_number":53,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"4ec32754-7315-42cb-b671-d9f351584bdf","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":53,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"b4d5d10b-070c-4adb-9a1c-0578a1dc890d","block_type":"box","text":"required, to be cleared.","page_number":53,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"18a4794f-cbf2-4807-9929-98046b320443","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":53,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"451d3dad-8381-4d95-a5af-9b39777b5ecd","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":53,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"aabfc7c2-c589-4f04-b817-dc49c9b901ce","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":53,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"7ee07dcb-c9a7-4a76-9648-01f246af4c35","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":53,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"e506eb3a-b789-4acd-908a-cc56536e17a5","block_type":"box","text":"Derivatives” above.","page_number":53,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"aab6386b-e813-4020-baa9-b0a87a96394c","block_type":"box","text":"FLEX Options.","page_number":53,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"91c4ca5a-68f9-4954-88b5-6fcb578dc68b","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":53,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"f9f79726-3b9c-4d38-9063-22abb7e86904","block_type":"box","text":"are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX Options are listed on a U.S. national","page_number":53,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"e26a8f7f-74a3-401d-83d4-fe2515cc6c8c","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":53,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"258fbc0c-555b-47f9-a3ba-6710d384f839","block_type":"box","text":"exercise prices, exercise styles (","page_number":53,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"2112cbc5-7f8d-4807-8783-3682b5a995c0","block_type":"box","text":"i.e.","page_number":53,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"03685593-0fc1-4407-bbcc-90df108ef3a1","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":53,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"304bc9d5-db7c-4481-9192-7f0aff871419","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":53,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"006afb67-cc6a-41bc-b822-43666ba5f241","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":53,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"45536a23-0ab3-40d9-a298-75163ae80d16","block_type":"box","text":"option contract entitles the holder thereof to purchase (for the call options) or sell (for the put options) shares of the","page_number":53,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"a7599b26-f3e0-4e00-abac-b2f131b8c8ae","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":53,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"4979d417-e2a4-484c-8c49-e40ca4542057","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":53,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"16298ec8-d79c-428c-bad9-026a0d67e3a3","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":53,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"b4715ef4-a302-452a-85b3-3c1b0a6815b1","block_type":"box","text":"FLEX Option’s expiration date.","page_number":53,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"89f28920-5179-4743-9063-6eb6d6770d0f","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":53,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"f9798516-8c88-4025-84ae-ed7827e0cc20","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":53,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"573ac9b3-3d6e-4bb6-913b-193ee5d96195","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":53,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"51a6407a-2091-4670-b42c-1634f3d673c7","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":53,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"fc73ba6f-60eb-4806-854c-5c24026b111c","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":53,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"549ebc31-f63a-4244-97e7-a58554f01e00","block_type":"box","text":"FLEX Options contracts.","page_number":53,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"5c0fd890-c3cd-4166-82b0-ae9b4dd92dad","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":53,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"524efcc6-fc5c-44d2-86c4-3fa6538f1df7","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":53,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"85480cd6-d4c2-44bf-8415-23de44c553d4","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":53,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"c3940427-23fb-4c9d-86d2-f31cfcd5463b","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":53,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"133919de-bb02-4478-8b61-2c40d3faffb2","block_type":"box","text":"liquidation of the issuer of the underlying security. According to the OCC’s by-laws, the nature and extent of any such","page_number":53,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"ec51b3ff-1f83-42e2-b4c8-85391d812e7d","block_type":"box","text":"adjustment is to be determined by the OCC’s Securities Committee, in light of the circumstances known to it at the","page_number":53,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"cd12ae1e-30bb-4098-86ea-4970731c3069","block_type":"box","text":"II-22","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"12ed29b2-d2d1-47db-8e08-207f2e23e3c2","block_type":"box","text":"NM1026U-5981128-53/232","page_number":53,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7b54e937-d89c-4f10-bd02-64443dda0009","block_type":"box","text":"time such determination is made, based on its judgment as to what is appropriate for the protection of investors and","page_number":54,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"8d748a81-7d87-4392-826c-e1064d80bb97","block_type":"box","text":"the public interest, taking into account such factors as fairness to holders and writers (or purchasers and sellers) of","page_number":54,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"59c9c47d-7394-4bfc-8cfc-7a0151a4495a","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":54,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"19ac179e-f543-4006-99cc-67e6382f0972","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":54,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"d8ded670-9bf5-430a-b02a-5c6c8ba909f4","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":54,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"c580f8df-0c56-4656-9cbe-981db7f25f98","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":54,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"a9b3384c-bf9b-418b-bdae-092c08fb6a07","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":54,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"9cfc74c1-c6c5-406a-8f6b-bd643403600c","block_type":"box","text":"on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a “Reference Asset”). As","page_number":54,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"cf3229ad-8d3b-44ad-9c07-5cadc8887b97","block_type":"box","text":"such, the value of a Fund’s FLEX Options will fluctuate with changes in the value of the securities held by the","page_number":54,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"612b15fd-ea30-496c-b90f-0f1da9b9697c","block_type":"box","text":"ETF, and thus the ETF’s share price. In addition to the value of the ETF, the value of an option, in general, will","page_number":54,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"4ded2045-84a8-4699-8185-cdc38454bcb4","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":54,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"32274719-1f9a-4087-9398-4b9329d19a95","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":54,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"bab83ccb-fc00-470e-9d82-ae09f0fa167a","block_type":"box","text":"expire unexercised have no value.","page_number":54,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"c3eeec1f-c189-40d1-aaf9-ad9406f44973","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase (for a","page_number":54,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"986328cb-7b02-422e-8eff-818976543145","block_type":"box","text":"call option) or sell (for a put option) the Reference Asset at a predetermined specified price (the “strike price”).","page_number":54,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"b8ffb58c-9c70-4ad0-bf6f-c103c89ab454","block_type":"box","text":"When a Fund writes a call on the Reference Asset, it receives a premium and agrees that the purchaser of the","page_number":54,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"5fdd93ee-267b-4ba3-a3b1-7f215e62cd60","block_type":"box","text":"call, upon exercise of the call, will receive from the Fund the delivery of a specified number of shares of the ETF","page_number":54,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"007ea048-6163-4dfa-8db5-3f1da6e372ae","block_type":"box","text":"in exchange for the strike price. When a Fund buys a call on the Reference Asset, it pays a premium and has the","page_number":54,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"dbf1fc41-6ce8-49a9-b7e0-3388d6363035","block_type":"box","text":"same rights to such call as indicated above. When a Fund buys a put on the Reference Asset, it pays a premium","page_number":54,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"e1e41ece-0f66-490d-9b4a-97b2261d1481","block_type":"box","text":"and has the right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":54,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"d1a7ae96-5463-4798-b77a-c000af1512eb","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the Reference Asset,","page_number":54,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"eba2a6f2-ced1-4308-860a-1a1b4cd323cb","block_type":"box","text":"it receives a premium and the purchaser of the put has the right to require the Fund to deliver the specified","page_number":54,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"2eaf6b6a-5a7d-4cd1-9d00-e674396bf47c","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":54,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"522a2770-a9ac-4b9c-91d8-285941a8a465","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":54,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"f07e0903-cac7-4c22-843e-c9986fb58f42","block_type":"box","text":"FLEX Options that are cash-settled. Cash-settled options give the holder the right to receive an amount (or owe","page_number":54,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"de236a4e-29b2-48b7-a8ab-e5846671bedb","block_type":"box","text":"an amount) of cash upon the exercise of the option. Gain or loss depends on changes in the value of the ETF’s","page_number":54,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"930f98be-2fdc-43dd-a769-d74237c6e600","block_type":"box","text":"share price relative to the strike price for a given option contract. The amount of cash is equal to the difference","page_number":54,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"ac5a6860-e699-432c-bef0-cd220af2cd2a","block_type":"box","text":"between the closing price of the ETF’s share price and the exercise price of the option contract times a specified","page_number":54,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"f93b5e02-d287-4de4-81af-950487099ed4","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":54,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"64324157-ff6c-4802-b7e3-d2413f958c5c","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":54,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"9dc71a08-ec27-4066-8e84-39e73afe6d2f","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":54,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"6006bd60-5edd-40f9-acbd-cf96bc355547","block_type":"box","text":"closing value for that day is available, it runs the risk that the level of the Reference Asset may subsequently","page_number":54,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"8e6aa655-65cd-413c-820a-ebcfd7bdce2e","block_type":"box","text":"change. If such a change causes the exercised option to fall out of the money, the applicable Fund will be","page_number":54,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"c20ef10c-b1a0-405a-88eb-c1ae332b71b8","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":54,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"e57bb62b-b0eb-4341-b0ed-ee0d432e8209","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":54,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"bbfe3aa7-c43d-4518-8176-60215043177b","block_type":"box","text":"Foreign Exchange Transactions.","page_number":54,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"a8678b84-a8ca-42ea-8741-6b0200ccfdfe","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":54,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"cc18a11a-a53c-496f-a408-9f0973829a6b","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":54,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"72e573b9-91c2-4946-9c02-fe225fd28fe1","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":54,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"6853f407-f45b-46fe-9778-25d08c78e3f9","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":54,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"122f34fe-7f23-4898-8822-60aea8e253f0","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":54,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"58543b64-0f80-45a9-9d79-d57c9a94ba13","block_type":"box","text":"Fund, sold by a Fund but not yet delivered, or committed or anticipated to be purchased by a Fund. As an illustration,","page_number":54,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"cace7c28-d7d8-40f4-9e62-93331d02bd6e","block_type":"box","text":"a Fund may use such techniques to hedge the stated value in U.S. dollars of an investment in a yen-denominated","page_number":54,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"801eb55c-4085-4de0-8495-0bcb4cea94b7","block_type":"box","text":"security. For example, the Fund may purchase a foreign currency put option enabling it to sell a specified amount of","page_number":54,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"f351d616-3c08-4c9b-a9b2-f822793b3301","block_type":"box","text":"yen for dollars at a specified price by a future date. To the extent the hedge is successful, a loss in the value of the","page_number":54,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"555d1397-a38c-408b-a22c-2190fd644539","block_type":"box","text":"yen relative to the dollar will tend to be offset by an increase in the value of the put option. To offset, in whole or in","page_number":54,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"2519e024-2998-4969-a9ac-b4b68f3adf7b","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":54,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"26bd4ded-6740-4b8a-8256-4e7f595fc67e","block_type":"box","text":"sell a specified amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":54,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"af3c86ba-7d4c-4b25-a99d-8a438b5320e8","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":54,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"f8baa378-f419-49f4-a16e-62ad0562b2ec","block_type":"box","text":"the relative value of the yen to the dollar. “Straddles” of the type that may be used by a Fund are considered hedging","page_number":54,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"a818eca0-ca38-46f1-8031-e3044cc3eea0","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":54,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"3a4a1ec0-fa56-472c-b055-e31b1f397426","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":54,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"0d4fc46c-dc3d-421e-8d8b-1fe011e668d5","block_type":"box","text":"use of Currency Instruments to effect hedging strategies is intended to reduce the volatility of the NAV of the Fund’s","page_number":54,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"806bf2fd-a007-4c51-9102-3bc005feb050","block_type":"box","text":"shares; however, the use of such hedging strategies will not prevent the NAV of the Fund’s shares from fluctuating.","page_number":54,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"5d18684e-7233-426f-a7a5-c82891f7879e","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":54,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"9f1992cc-3853-4c9f-9f8c-28ea65486758","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":54,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"6260f51d-97ca-4e41-94f5-6300999e6f46","block_type":"box","text":"II-23","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7941d94e-7112-4d59-b0f2-efd73e59f317","block_type":"box","text":"NM1026U-5981128-54/232","page_number":54,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8612eb3d-673b-4f78-9679-36f7edea96c6","block_type":"box","text":"accurately predicted and that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges","page_number":55,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"5b1d14b9-7c17-440b-a848-06c2b07d2c47","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":55,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"c06b760f-bcd7-4089-a69f-b929e034a6e5","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":55,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"9c76c9c3-7801-4895-b5b3-98c2d0d0371c","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":55,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"6cb77df8-2f4d-4b23-b3e7-2b81815f5797","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":55,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"dde72ea6-5640-4681-a043-feae2b68493a","block_type":"box","text":"domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified amount of a","page_number":55,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"cd3f80d5-c0e2-414e-a9ea-0edc5d01c4aa","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":55,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"f16c0aaa-f661-4d8e-827d-6f1d2a5133fd","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":55,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"26bb7013-7438-4eac-90ca-abf9415892df","block_type":"box","text":"or dealers have refused to quote prices for such forward contracts or have quoted prices with an unusually wide","page_number":55,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"82b238c1-1d4b-4d13-a40a-4adac7b531e1","block_type":"box","text":"spread between the price at which the bank or dealer is prepared to buy and that at which it is prepared to sell.","page_number":55,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"55fb6359-53ae-4ba7-9ff0-159b74920396","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":55,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"364a8aaa-eb5a-490d-923e-2ceb2a8bd755","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":55,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"8dd76468-b69c-460a-a7b6-4a166170f2ba","block_type":"box","text":"would deprive the Fund of any profit potential or force the Fund to cover its commitments for resale, if any, at the","page_number":55,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"0a0c6fc8-ce46-44d0-9d38-1222905ba8a9","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":55,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"a816d4d7-2ba8-4be0-98db-f4339d828e4e","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":55,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"ae5f1f26-54b7-418c-a1d3-c687c5a4bc02","block_type":"box","text":"anticipated, in the event that (i) the currency exchange rate movement is so generally anticipated that the Fund is not","page_number":55,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"60c916c9-41a2-453c-832c-6d09a9ad1bd7","block_type":"box","text":"able to enter into a hedging transaction at an effective price, or (ii) the currency exchange rate movement relates to a","page_number":55,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"a9068d2a-7e90-490b-9e78-01152d08a91b","block_type":"box","text":"market with respect to which Currency Instruments are not available and it is not possible to engage in effective","page_number":55,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"0f543456-1555-437d-829f-d8f619533f65","block_type":"box","text":"foreign currency hedging. The cost to a Fund of engaging in foreign currency transactions varies with such factors as","page_number":55,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"93f8a818-08f7-430f-859b-1430b5cdbabc","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":55,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"ce45f66b-a7e5-4497-bd81-4ad39fe13054","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":55,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"82739f1c-706e-4309-9350-e1a0d7709b0f","block_type":"box","text":"involved.","page_number":55,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"e2a01a9f-8a7e-4426-85e6-9bb8bb29285c","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns (including","page_number":55,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"781c8f63-ac19-45b7-ab30-54e31a117082","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":55,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"74f50626-8de0-4e55-8806-281b66a0b017","block_type":"box","text":"denominated in such currency.","page_number":55,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"4431e1f7-a1d8-41ae-9185-4c394d4d90fb","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":55,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"01f5ea0d-d1c5-46d6-b066-19b691c3ae29","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":55,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"12842b29-5016-4b2b-abab-96a4da9ca7f0","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":55,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"6cc33d33-55a4-40ac-9cfc-9aa2a61ad042","block_type":"box","text":"transactions are similar but are settled in the current, or “spot”, market. A Fund will enter into foreign exchange","page_number":55,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"466e6a5c-ead3-42b2-abb9-ea1fbe989c03","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":55,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"61f238b5-18d9-4e85-a39b-fe20163a1175","block_type":"box","text":"Funds, to seek to enhance returns. FX forwards involve substantial currency risk, credit risk and liquidity risk. A Fund","page_number":55,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"9ccd5000-a355-4eef-bba1-f26bc687a65d","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":55,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"063d2165-ac7c-44de-8ee1-6f5200551aad","block_type":"box","text":"purchasing a currency needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":55,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"6904ee43-2fb5-4ecb-97c3-13b1c3d4c1d7","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":55,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"a3b2d5f1-6bf0-4755-bccf-d2bc06ac2bbc","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":55,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"f84f928c-74ee-4b4f-bc3a-6ce99f73a40f","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":55,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"eba208c5-3459-4e96-a9b4-62b5fd0fbd0c","block_type":"box","text":"also hedge a currency by entering into a transaction in a Currency Instrument denominated in a currency other than","page_number":55,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"7c3ea2dd-39db-4b12-a0e2-cef78c2bfe01","block_type":"box","text":"the currency being hedged (a “cross-hedge”). A Fund will only enter into a cross-hedge if the Manager believes that","page_number":55,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"8ade71e3-0832-4d69-8f7b-64f68c9e9e88","block_type":"box","text":"(i) there is a demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":55,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"4e0fc5de-cfd8-4933-b813-e457c2d2ee87","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":55,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"42a076de-3738-4ba4-b142-c89b4acea523","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":55,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"6a26592f-ce5e-47f6-a33e-74e91589dd87","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":55,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"6a1c021c-feb5-4d70-ae23-a945333c9a88","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on the value","page_number":55,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"ff9ba121-a055-429c-b4f9-1c5e27dd9c41","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":55,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"45bddf7f-9b9c-4a4a-beb0-64de25ebc1f4","block_type":"box","text":"Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar. Proxy hedging entails entering into a forward","page_number":55,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"77b75dd7-b882-41fa-bd8d-927091858d24","block_type":"box","text":"contract to sell a currency whose changes in value are generally considered to be linked to a currency or currencies","page_number":55,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"86483545-afbc-4688-8edb-410b5a71b84b","block_type":"box","text":"in which some or all of the Fund’s securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy","page_number":55,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"1318a7cf-ac5d-42c7-b94b-233880f480fa","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":55,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"35d80472-a3ef-4755-acec-5a269c656e38","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a degree or in a","page_number":55,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"36e0814c-bb40-4b7f-8ad1-9e383998c5ba","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":55,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"677c6baa-8cba-489e-baac-31bf38fbc7ce","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":55,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"25fc0eac-2ea0-4cd5-b484-44549ed3774c","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more currencies that","page_number":55,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"9bb30e3d-5ead-4a37-a604-4afc92a0fae6","block_type":"box","text":"are expected to decline in value relative to other currencies to which the Fund has or in which the Fund expects to","page_number":55,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"fe9e7f97-20ff-4ce1-a952-c6e04ec63bc3","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":55,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"a848da83-ce04-44df-b031-9e33a3bfb0ff","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":55,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"a3fffcc4-a4fa-4134-ab19-46bc6369d7e6","block_type":"box","text":"Fund would sell Canadian dollars to reduce its exposure to that currency and buy Japanese yen. This strategy would","page_number":55,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"63c1c4e3-de86-4b46-9754-979f4400e0d7","block_type":"box","text":"II-24","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b7eec4e6-db57-4b77-9a1b-c7ee16ff8171","block_type":"box","text":"NM1026U-5981128-55/232","page_number":55,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"64a628ff-bc7b-4dd7-971e-798d32b0121e","block_type":"box","text":"be a hedge against a decline in the value of Canadian dollars, although it would expose the Fund to declines in the","page_number":56,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"b1149049-6fba-471d-98fc-0e329950d10f","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":56,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"5f9cf5e7-cbe4-4256-86c8-41007502678f","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as non-deliverable","page_number":56,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"397e22ce-2e46-40ff-b13e-aac39d6c056b","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":56,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"0fc16747-425c-459d-8030-8660cacdeee5","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":56,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"7c65df30-7fc8-47dc-84c6-269ed086a246","block_type":"box","text":"the difference between the agreed upon exchange rate and the spot rate at the time of settlement, for an agreed","page_number":56,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"85bc1df2-652a-4012-975c-eea6cf8da4eb","block_type":"box","text":"upon notional amount of funds. All NDFs have a fixing date and a settlement date. The fixing date is the date at which","page_number":56,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"8198ccd3-1fdf-4bcc-b5a9-2f8e7f13dfaf","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":56,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"c9a85ed2-a77a-4558-8cb2-1fa00f5f4e7b","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":56,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"d8a17981-a2a0-4ccd-bae3-cffbda94d978","block_type":"box","text":"commonly quoted for time periods of one month up to two years, and are normally quoted and settled in U.S. dollars.","page_number":56,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"7bd232fe-2e7d-49c5-b42c-71cca91a4ead","block_type":"box","text":"They are often used to gain exposure to and/or hedge exposure to foreign currencies that are not internationally","page_number":56,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"f7c885f5-55a0-47ee-b566-7eb88d81dca1","block_type":"box","text":"traded.","page_number":56,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"6cbac95f-1820-4452-b617-7459f7dd56f0","block_type":"box","text":"Currency Futures.","page_number":56,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"e21ff681-f68f-4d48-a0c0-63ca68065149","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":56,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"4415e072-4268-4d49-89dd-b537fc62a761","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":56,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"52242a49-cd7f-4a6f-8856-e1ec2d2b18c5","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":56,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"07a9ef87-a8a2-425c-b5bd-607e7444cbd0","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":56,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"87ebbbe1-32d3-45e9-8a60-e6c2a13f04ce","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":56,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"56e2bc2e-cba9-40af-84d3-9ab219fb56f0","block_type":"box","text":"Currency Options.","page_number":56,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"f1848753-dd8c-47a6-875b-acc7220c055a","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":56,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"8611aee1-aa15-4fa8-b343-381e24708436","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":56,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"5aae7498-2341-45a6-bda3-baa7f3f67aa3","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":56,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"cd1a8a62-1cc1-4584-86fb-34407cee6694","block_type":"box","text":"securities. For example, in consideration for an option premium the writer of a currency option is obligated to sell (in","page_number":56,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"e57d2c18-c7da-400f-ade8-1daaa49eb0f9","block_type":"box","text":"the case of a call option) or purchase (in the case of a put option) a specified amount of a specified currency on or","page_number":56,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"a26d4728-fd1e-421c-acdc-e1c75f9ccc57","block_type":"box","text":"before the expiration date for a specified amount of another currency. A Fund may engage in transactions in options","page_number":56,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"3bc81e17-3d67-402d-8b4e-4a6a3740ee28","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":56,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"772cc43e-59f8-4dae-b408-3900f2250011","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":56,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"fd97a0f9-ee26-41d4-b2c3-2c22e44d8d66","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered call options","page_number":56,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"f26608de-f974-43fd-a6b4-85ec2b7eb87e","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":56,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"d95d10bb-ade8-4286-a3f9-e8ac779b55e0","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":56,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"dd945ec7-4807-4e67-aab9-20b32a6d9ca1","block_type":"box","text":"Currency Swaps.","page_number":56,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"0dd9a058-e08d-4414-aeff-e26adf9fc67f","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":56,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"c1ce0dad-6289-4430-a610-5427fe347989","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":56,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"805df020-0835-46b1-a570-5ec7c23f1819","block_type":"box","text":"second currency on a spot basis and sold for the second currency on a forward basis. Currency swaps involve the","page_number":56,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"729dc8c3-92b2-4734-a8f5-20b047c28620","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":56,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"229c3b4f-4bbb-40cd-b6a8-13636efd5fb2","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":56,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"43c7fe49-c054-496a-bd50-749fcdf34462","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":56,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"74a3882b-2174-4346-8a83-d08fe5a51f95","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":56,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"26871eff-5899-4964-a1b2-8dcf683c41d8","block_type":"box","text":"Distressed Securities.","page_number":56,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"4bec3b69-3bfc-4fad-a73f-92a6d4e47e95","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":56,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"87467389-70dd-4669-b79e-f6124c54de0a","block_type":"box","text":"are the subject of bankruptcy proceedings or otherwise in default or in risk of being in default as to the repayment of","page_number":56,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"c0c81604-5a1a-411e-aeb6-1a09c42d1421","block_type":"box","text":"principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one","page_number":56,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"b285f3b4-1ef2-4aa2-af8b-23902961aa25","block_type":"box","text":"or more nationally recognized statistical rating organizations (for example, Ca or lower by Moody’s and CC or lower by","page_number":56,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"b8e9665b-7666-45a3-8555-a0a84d4582bc","block_type":"box","text":"S&P or Fitch) or, if unrated, are in the judgment of the Manager of equivalent quality (“Distressed Securities”).","page_number":56,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"9249a9db-e577-41e5-95a6-883e121daf90","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":56,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"4a3257af-7a06-4573-a8a3-70258926c5bb","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":56,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"cd9dbd93-6f60-423c-8dd0-ced485f529eb","block_type":"box","text":"issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan of reorganization","page_number":56,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"16adbd89-ef46-4667-9934-5769b1a306c4","block_type":"box","text":"pursuant to which the Fund will receive new securities in return for the Distressed Securities. However, there can be","page_number":56,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"0fc2b74f-26d7-4646-bfc6-f8eb4696c10e","block_type":"box","text":"no assurance that such an exchange offer will be made or that such a plan of reorganization will be adopted. In","page_number":56,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"66b9ac92-b5b9-49da-9959-d41a6f0cc951","block_type":"box","text":"addition, a significant period of time may pass between the time at which a Fund makes its investment in Distressed","page_number":56,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"ee0459b4-87c3-4d82-b6cb-0d3cccd81ed1","block_type":"box","text":"Securities and the time that any such exchange offer or plan of reorganization is completed. During this period, it is","page_number":56,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"5dc56fce-4bb1-4246-859d-86a9c5bfab35","block_type":"box","text":"unlikely that a Fund will receive any interest payments on the Distressed Securities, the Fund will be subject to","page_number":56,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"4a45ad2a-7ea7-4a30-aab3-96e88a1d074c","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":56,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"b8c34c21-5cec-4d83-b601-3dd75ece1056","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":56,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"a1a36828-9a4f-4daf-b526-ac2ec478deed","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":56,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"824a8917-99fa-48ba-90d9-94def0c414c1","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":56,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"a5f1cc19-ff30-445c-a158-c7e764775752","block_type":"box","text":"when and in what manner and for what value the obligations evidenced by the distressed securities will eventually be","page_number":56,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"a6e5d262-4bde-4413-8b52-cf81bb5cc646","block_type":"box","text":"satisfied (","page_number":56,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"a4c09680-0847-4aa2-95cf-cac9bc3dd372","block_type":"box","text":"e.g.","page_number":56,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"8150392b-b4c7-40d1-8741-df52ec1fa4bb","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":56,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"a521cfdf-832a-402b-9aeb-a7c44b1074e5","block_type":"box","text":"distressed securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":56,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"865e5bc4-d870-4bca-80a4-057fb3ed4beb","block_type":"box","text":"II-25","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"36c048ee-3c10-46a2-ba82-e589e72c3981","block_type":"box","text":"NM1026U-5981128-56/232","page_number":56,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8ae3c4ef-e62b-47b2-ab22-f62333db4647","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there can be no","page_number":57,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"14af64d9-78af-4980-a226-a7159467b06b","block_type":"box","text":"assurance that the securities or other assets received by a Fund in connection with such exchange offer or plan of","page_number":57,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"aaf994e1-348b-460c-9611-a40c5dbedcd9","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":57,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"66677759-6ea6-400b-9e7f-e6c9092600ba","block_type":"box","text":"was made or no value. Moreover, any securities received by a Fund upon completion of an exchange offer or plan of","page_number":57,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"c1fe79a2-62a4-4d7b-9c4e-eef215c62ffb","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":57,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"947a4e11-f0c3-4704-8d48-a811ed32bf3d","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":57,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"4251a163-cbc1-4015-b6b5-b259da14e4bb","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":57,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"d4560bc2-43f2-4d0f-8215-927848c86d29","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":57,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"6f3d8beb-f1db-412a-a921-8862cc9a1859","block_type":"box","text":"Fund, however, will not make investments for the purpose of exercising day-to-day management of any issuer’s","page_number":57,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"17d7f6b6-09c3-446e-92e2-ebd1f0d2180d","block_type":"box","text":"affairs.","page_number":57,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"b2114de1-4c3e-4ad8-a53b-e72be45df5e2","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":57,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"150d071a-ae79-4696-8747-b2aec3f1208a","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":57,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"6d12d05b-0742-4b18-a9da-d4be1f277ee0","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":57,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"19f73d63-34a0-4d34-ad05-fbd20616b9e6","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":57,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"1556ceb5-67a7-4a86-9b22-d115b6a9297b","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":57,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"ebf26375-fe05-42d2-a37a-d2a3d559440f","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":57,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"5c0ef9bf-5674-46fb-850d-3d8d2a9f0c72","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":57,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"c26bcd18-2ccf-440f-91af-2abaac09e613","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":57,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"d169e1db-a049-4b39-9b07-afb316a30a75","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":57,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"78dcec49-98b5-45d1-9aa9-e428554b9b43","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":57,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"27d3a33d-95c0-496a-a803-ade79d6ff529","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":57,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"f2b16c03-16c2-4f48-a486-4adc97dd26d7","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":57,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"b67b55b7-6cc3-4930-a700-f03e4fa1969d","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":57,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"c71c0733-dcbe-4e7f-a8a3-9b4ca284fb55","block_type":"box","text":"Equity Securities.","page_number":57,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"87085bd8-f507-4bc8-9350-c810578ee90a","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":57,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"5bd85f2f-4d7b-404e-9921-06b5efe1e2b1","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":57,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"1b5e5fde-7217-4917-b33c-ef42b54a9c6f","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":57,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"1c9443cf-7bc7-4aae-8ec5-eca1c2c66f19","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":57,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"0c25e3de-4fa1-414a-ad94-a634041949f1","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":57,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"35483733-42c3-4c0b-b895-cbb7cd3f3ee9","block_type":"box","text":"and overall market and economic conditions. The value of equity securities purchased by the Fund could decline if the","page_number":57,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"4fb81c94-f3ce-48c1-87bc-ed9f38d953a3","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":57,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"2df356af-c866-4808-813e-db85ea02f0ab","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":57,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"55c203be-c075-4250-b3d1-99a95013cc4f","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":57,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"b6ea2132-7403-43a2-bfc4-119de4a4392d","block_type":"box","text":"due to general market conditions that are not specifically related to a company or industry, such as real or perceived","page_number":57,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"08e937de-83b8-4e62-aa66-b8aa62579d29","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":57,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"48f1a547-347d-4e33-b7b1-fefc8a2dae77","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":57,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"a9c6d6b3-1ebd-4824-bfcf-5c73837a067d","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":57,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"41de999d-40e3-44a1-9e29-b7ea917ef997","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":57,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"e4cd5776-b943-491a-83ad-2c1ea163417d","block_type":"box","text":"no assurance that any Fund will have continued access to profitable IPOs and therefore investors should not rely on","page_number":57,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"dccb5c07-354a-4ef3-8aa9-cc978f40b23e","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":57,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"22e0fe45-624a-46e0-9f23-71e727c6e65f","block_type":"box","text":"it is unable to invest significantly or at all in IPOs may be lower than during periods when it is able to do so. In","page_number":57,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"3e3b97a9-767e-40c5-bd33-13066ee2dfa1","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":57,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"07e90851-55c1-497f-b078-982e2296700b","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":57,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"34aef94b-a4dd-4e8b-9496-92c29fb4774c","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":57,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"af7527d4-6aa5-4b6e-978c-e1065f8589ca","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":57,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"94832682-6fed-40b9-adca-1512526f7642","block_type":"box","text":"initial public offering.","page_number":57,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"29ae7087-60f8-4bbe-aad6-f9023e62f134","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":57,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"967adbb1-a351-4cb4-b581-8548e051e41f","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":57,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"db4215e0-df0d-4b92-aa92-ababfa4ac255","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":57,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"64b1febc-e311-46c9-aaa5-3a3713643ad4","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":57,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"224e6858-3a08-4fc5-b8ee-29ef678457d7","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":57,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"c19e6ebf-3979-4ef0-a443-2a04e7061ee1","block_type":"box","text":"are often traded in the OTC markets and may have fewer market makers and wider price spreads. This may result in","page_number":57,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"c57e5bed-06cf-4320-a2a0-55729fd16aef","block_type":"box","text":"greater price movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":57,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"c2a008fc-d820-46ad-9512-a29c920206e9","block_type":"box","text":"more established companies.","page_number":57,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"e442720b-a60f-4efb-92ec-19b629928cad","block_type":"box","text":"II-26","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e56d3b17-40c5-4e5c-a3ec-4b509715e4c1","block_type":"box","text":"NM1026U-5981128-57/232","page_number":57,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"77d1f0b3-65a3-43e6-a4e5-0ca5c58a8598","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks associated with","page_number":58,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"791cf574-2e18-49b5-953c-a44d08149dc0","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":58,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"b41e57cd-414a-4606-a4e1-7bacc9b7a96b","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":58,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"df82ce42-136b-49c6-a51c-b71a28a42f9e","block_type":"box","text":"below.","page_number":58,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"829dda69-e0a3-422c-b4cf-41b2be6c6cd0","block_type":"box","text":"Real Estate-Related Securities.","page_number":58,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"651a24f8-78f1-433c-ad3b-ed4f418e558f","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":58,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"463cf7c8-211d-49a3-917a-591b14315b53","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":58,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"7caaa3ce-a4e2-4239-9e9a-b4afec2cc995","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":58,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"ab549bb9-c48c-462f-8cb0-586809d6a8a9","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":58,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"f8022a27-d5f5-4d5c-acc2-b1e93a45bec8","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":58,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"375ae444-c563-4c2e-91c5-885a0274dc72","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":58,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"b3bb7597-158b-465b-bf1d-616afb187269","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":58,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"99415637-52be-4a40-b35e-2a8efc1e8332","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":58,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"f9cc3167-f495-43e6-a5a6-ef1fdadc8ddd","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":58,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"23335e06-72e8-4f7d-8584-e07d1b9b444f","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":58,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"aa2770f4-e9ea-493a-99b7-b4da55840f2d","block_type":"box","text":"rents; investment in developments that are not completed or that are subject to delays in completion; and changes in","page_number":58,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"ec71a394-413a-4f97-96db-3ec22efd77ea","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":58,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"d789a4b3-6adf-4e0a-9cfc-5c4ac75aee97","block_type":"box","text":"type or in certain other respects, the Fund may be subject to certain of the foregoing risks to a greater extent.","page_number":58,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"95e1c51a-eb5b-45bb-a169-3704f42fcbcb","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":58,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"458ea7c8-28ed-40f0-821b-e5cd192c9881","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":58,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"eb6fe469-bd35-48bd-a884-7cbaee93f06a","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as a result","page_number":58,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"46216f35-4ea8-4e9b-a42a-f3eb2d7a4bf8","block_type":"box","text":"of a default on securities the Fund owns, the receipt of such income may adversely affect the Fund’s ability to retain","page_number":58,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"04bcdad2-08ca-4964-9045-bcda744d73b5","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":58,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"91c38f19-abdc-4f8a-9a9e-e30c47b2139a","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":58,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"e28a44b4-ac7f-455f-8ee2-80afe791ace6","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":58,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"7722b0cb-a79b-4169-acd6-608ec71ded99","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":58,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"dabc6caa-f196-441f-b0f5-9fc57edaec1b","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":58,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"c42c178a-4be6-4cd0-99ca-5fc732cf16e7","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":58,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"a2399fb6-6777-4b2c-ab14-81393be265b1","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":58,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"4a859a88-11ff-4e70-9c51-bb74500acdb7","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":58,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"2812c87b-c669-4aac-85b3-89e7b7e2e84c","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":58,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"1692eb50-b4e2-4f60-8eda-177c15ebab49","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":58,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"14921133-71b7-4aee-a9a8-fd263c06ce80","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional securities","page_number":58,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"851a7dcf-2c78-42a6-844b-7ebee065851f","block_type":"box","text":"exchange and may not be traded every day or in the volume typical of trading on a national securities exchange. As a","page_number":58,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"cb30cbba-3246-430d-bb79-b188db019f6e","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":58,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"f3b5d28d-fbeb-40f9-897b-7a3d405d85a3","block_type":"box","text":"make many small sales over a lengthy period of time, or to sell these securities at a discount from market prices or","page_number":58,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"f189f44f-6d66-4209-a9cc-23d5cffce3f7","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":58,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"9b999732-0476-470e-962f-f5a168815470","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":58,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"e9ae63c9-0ada-42a5-b64b-9f55d84a4133","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":58,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"dc679997-658e-4773-af68-e4b508712d0c","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":58,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"f2ac356e-19ff-4b64-94a0-62298e6407f6","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":58,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"1d70fce6-a8c5-414e-a53f-b069ad0cd719","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":58,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"d27d72ae-234c-4b8a-8125-25a48cd0f214","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":58,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"c1c163c4-a8df-4ab2-aa17-434c8689ffa8","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":58,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"f3d22173-47c1-46b9-99c8-36489acf16b8","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":58,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"d53ed7b2-319a-4764-9681-66b40160eaf8","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":58,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"26bcb531-ab4b-478a-88d3-cd38da420235","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":58,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"a56d6a5a-82d6-4304-a2b4-02cd64bbd949","block_type":"box","text":"cycles.","page_number":58,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"203afb86-dab8-4285-b28f-ca05bb678c09","block_type":"box","text":"Tracking Stocks","page_number":58,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"e40756a2-db09-4681-bef7-f3f222d8300b","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":58,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"506ee2f8-bb9d-41cc-b8f5-7a3ee57115f8","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":58,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"2f70775c-c017-4b49-a156-d1719a5add61","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":58,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"85f71253-9abf-497a-88c8-d55426c11cb6","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":58,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"e42c6789-2bdd-461c-9f42-426233738e6f","block_type":"box","text":"holders of the tracking stock may not have the same rights as holders of the company’s common stock.","page_number":58,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"3872b307-30d0-4206-87f2-2beefe0e34e1","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":58,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"fb4ced17-fc56-4629-b84c-e0b047e830f0","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":58,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"5865d017-be08-4000-ae8c-d411a95aafa5","block_type":"box","text":"debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and ETFs. An ETN’s returns","page_number":58,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"e3dd3db6-08e4-4b9c-8a26-4dc1f2c7bf4f","block_type":"box","text":"II-27","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"451ca4d4-93f3-480c-9484-a28cc97e1310","block_type":"box","text":"NM1026U-5981128-58/232","page_number":58,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c94bc0d0-4c44-4495-ac4e-e63d10a926d3","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":59,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"ab2e147f-be83-4b66-ab7d-ec12b1f41a62","block_type":"box","text":"expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However, unlike an","page_number":59,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"956c4863-384d-4704-b9b6-87f9dd6697fa","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":59,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"542b77a8-600e-42fa-a91b-7f4f2808f712","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":59,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"8ed46de1-bf05-41ba-8dc9-2de1d07856f8","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":59,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"19f58047-6c2b-44ab-a0a1-5f596f5e63f8","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and demand for","page_number":59,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"e0a82ca5-362d-440e-aba1-5e8f4d244557","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":59,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"7528974b-8101-4935-9b74-920c06e4e75f","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":59,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"34b7fa02-3225-4311-979b-aab7e6ba58cf","block_type":"box","text":"geographic events that affect the reference instrument. ETNs are subject to credit risk and the value of the ETN may","page_number":59,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"df25803f-36af-4289-a7a8-ca39d02b2507","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":59,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"dae51d99-3a2c-445d-a5f1-d71680219ea7","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":59,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"c6e7cbdd-15ce-4d79-a7f0-526767847b45","block_type":"box","text":"ETN.","page_number":59,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"e181105c-51e7-465a-b8af-6ab665e0c359","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":59,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"784e996e-e1aa-4ab3-bd89-2298df86049f","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":59,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"2c21dbc4-8d2c-4ea1-9cf2-0e7c98bf11d8","block_type":"box","text":"may, at times, be illiquid and may be difficult to purchase or sell at a fair price. Levered ETNs are subject to the same","page_number":59,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"7a8a656e-e4c1-4046-9326-29d1a91344a5","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":59,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"8cd274cb-35c8-4ecc-a843-97dfb3cf1b1c","block_type":"box","text":"potential for loss is also greater. Finally, additional losses may be incurred if the investment loses value because, in","page_number":59,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"1af90ec8-593e-4df0-84a3-ae554e33f1ff","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":59,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"e7f5a7cf-ac83-4a30-8fb9-9f15074d146a","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its obligations, the","page_number":59,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"fb766592-8321-458c-b9a7-3ab8ecb3c4e3","block_type":"box","text":"value of the ETN may change due to a change in the issuer’s credit rating, despite no change in the underlying","page_number":59,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"b1575c2f-d7f4-4e41-88ed-c5aae9ca3f19","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":59,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"9914c6a7-a169-4709-a1f0-e65b5263ab4c","block_type":"box","text":"difference in price may be due to the fact that the supply and demand in the market for ETN shares at any point in","page_number":59,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"b4503946-2def-4f19-9865-8888d6f2cef9","block_type":"box","text":"time is not always identical to the supply and demand in the market for the assets underlying the reference","page_number":59,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"0d84a60a-98c5-438b-b885-32e1913ad355","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":59,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"66d45dba-be59-42ae-95e4-2283d73df755","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally meant to","page_number":59,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"bf670803-b9b9-4b8f-a00d-8bb8ade8d15b","block_type":"box","text":"be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the availability of a secondary","page_number":59,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"11946864-95e9-4504-9138-eb961dbfb836","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":59,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"5dddfa0f-3575-4e3a-9646-4fae2fee64e3","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":59,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"d36c2865-aed3-4a65-b3aa-bad5e4cfa5e9","block_type":"box","text":"uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and character of income and gains","page_number":59,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"35fa87bc-969b-4c70-9087-5881209bc442","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":59,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"f62b14e5-36b7-47fd-9067-3841f77e8485","block_type":"box","text":"Foreign Investments.","page_number":59,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"282e8855-2b4d-45ae-960c-96b5e9ed53dd","block_type":"box","text":"Foreign Investment Risks.","page_number":59,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"fd15b509-8c47-4198-b7c5-fd73e74c4666","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":59,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"ef92031e-5767-4c19-9c93-08082c1658aa","block_type":"box","text":"located in emerging market countries. These securities may be denominated in U.S. dollars or in a foreign currency.","page_number":59,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"cae48b6e-af45-4af6-8681-5da0ca31fbd6","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":59,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"89ea106d-38bb-4c59-a1e7-fe7460f4084d","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":59,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"807c5cb2-935e-4bdd-9855-c213deda727e","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":59,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"b124c68d-66d9-46e0-b6fb-68d4f5d08ec4","block_type":"box","text":"securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are conducted from the","page_number":59,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"bf4f17bc-7e7b-4b16-8272-852d68977cfd","block_type":"box","text":"U.S., (ii) the company’s equity securities trade principally on a U.S. stock exchange, (iii) the company does a","page_number":59,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"43a0cada-3132-4d3d-b2d5-d690221a49ac","block_type":"box","text":"substantial amount of business in the U.S. or (iv) the issuer of securities is included in the Fund’s primary U.S.","page_number":59,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"dc264496-8fc6-41d4-b411-7da73397f8c2","block_type":"box","text":"benchmark index.","page_number":59,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"31fb8f9f-773d-4b08-bcd5-c850b29bcf53","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":59,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"e5917c39-5bd5-439c-a4af-50f9e084f470","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":59,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"dbd950e7-8a68-44e6-97a9-8d94f6eb757c","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":59,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"ebd8746d-64bd-4093-8394-dd7d64fd1f09","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":59,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"aaa86dab-650c-4b43-962e-a2e40e8cca79","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":59,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"b9a243d5-3589-435e-8225-b049335258ee","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":59,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"e48b02de-c4c5-415f-bbca-830c33ae7691","block_type":"box","text":"securities and zero-coupon securities.","page_number":59,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"634de8ed-3f5e-479c-ab57-85a388668768","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":59,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"e9cb19a6-f8d8-4b60-9d95-c9850315e77a","block_type":"box","text":"taxes.","page_number":59,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"597854d2-ba61-4c0c-bcdc-aa1f2e9f7f17","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign exchanges or in","page_number":59,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"afa7d479-b0ca-4473-bc98-ebfa62075479","block_type":"box","text":"foreign markets that are closed when the securities exchange on which the Fund’s shares trade is open, there are","page_number":59,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"b9e77308-ccbf-4b70-9568-efa1e3ce039e","block_type":"box","text":"likely to be deviations between the current price of such an underlying security and the last quoted price for the","page_number":59,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"2d0082be-b93c-4656-a4fe-43234f20c54e","block_type":"box","text":"II-28","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e84e7316-8d36-4c63-83a3-47f40938372f","block_type":"box","text":"NM1026U-5981128-59/232","page_number":59,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2ca62f9f-69cf-4636-9275-a945d2ec3e13","block_type":"box","text":"underlying security (","page_number":60,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"83834c4b-0b85-4b48-b76d-66ae043e13fa","block_type":"box","text":"i.e.","page_number":60,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"c456ec4d-a662-4c3c-b9ad-ef2de1f7a33b","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":60,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"de08a39f-811c-4963-8949-b7d3f6de6d94","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":60,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"571241ea-e5fa-45c7-a406-f97c3169cab1","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":60,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"ca92b5f1-322c-43ee-a19f-90a7b0585017","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":60,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"71e2516c-0162-47ad-871f-335f433245ad","block_type":"box","text":"Foreign Market Risk.","page_number":60,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"d62462d8-b438-4473-9b64-afc7aa446513","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":60,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"ded64902-5545-4482-9c66-334ba8f0358f","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":60,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"a8f3b302-a587-4653-8fc5-4246c875aee6","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":60,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"5af5ba37-09d9-432f-a5e7-2b1ff14a129a","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":60,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"1a8d819c-dce0-44ba-bb28-cfdc6e672ade","block_type":"box","text":"is subject to the risk that, because there are generally fewer investors on foreign exchanges and a smaller number of","page_number":60,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"d57befc5-140f-4933-8fce-b01e7deac5ff","block_type":"box","text":"shares traded each day, it may be difficult for the Fund to buy and sell securities on those exchanges. In addition,","page_number":60,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"52525f51-9880-4685-b60c-844af00e5fe3","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":60,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"12c2e90b-721b-4c8a-9dab-ac12ba97e777","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":60,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"8906b8cc-2968-45d5-b0de-cbf9b5a260cd","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":60,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"7411182f-4915-4a96-b7ee-ff7cdde1e951","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":60,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"bea4c8ff-c344-4933-a46a-e1784320bb44","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":60,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"0a521a92-9d8d-4c95-a7bf-fb71ae093d2c","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":60,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"a8e51035-ad79-4718-ada1-3c193bf40608","block_type":"box","text":"controls and/or sanctions may include the prohibition of, or restrictions on, the ability to own or transfer currency,","page_number":60,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"912b2663-1d16-4b4c-b9fa-3a682124e7ee","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":60,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"be178592-84d2-4225-9a5c-53b7ec482cf0","block_type":"box","text":"government, such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":60,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"da4f8c25-628a-4ee3-b7f7-11124aed8838","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":60,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"6b3b84ba-9065-4112-b969-70fcaff456e0","block_type":"box","text":"transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or","page_number":60,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"0560f778-6c7c-406e-9747-176b5f3067fa","block_type":"box","text":"liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the Fund to decline in value. Other","page_number":60,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"35ce6b3a-b44a-419a-a4bd-a5ac970ab8ea","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":60,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"2b06d591-35b4-4fe9-9a1d-2465d2e89d9a","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":60,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"0156c8d3-a73f-44ee-803a-5f8e819733f4","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":60,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"ec9912d2-59db-49ef-83b0-0ae05727117f","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":60,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"98742572-6672-4201-8c02-6e35c703e139","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":60,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"c520ccf5-fd65-446e-a89e-fae357cc4cec","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":60,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"b0a1ccdd-ca08-4625-9d28-1fc5ab67fd4f","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":60,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"978cd351-f5fc-44b4-873a-89064fddcd29","block_type":"box","text":"Fund’s operations.","page_number":60,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"d82b095a-419d-4bba-91a7-f7f330dadb64","block_type":"box","text":"Foreign Economy Risk.","page_number":60,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"fb249fc1-1239-4137-8fe8-52f90b48a316","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":60,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"0ee28d90-b474-4865-9ef6-6b9d9636a8a4","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":60,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"b9cb96a8-42b7-4615-b96e-e3e7fd3fa22e","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":60,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"db5b8dda-bbc7-4caa-a2c2-30204f4ebdd8","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":60,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"c4dfba41-5abf-4587-b69a-354be179dc32","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":60,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"08cfa234-284e-4021-948c-efe00712afab","block_type":"box","text":"measures.","page_number":60,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"ca719c58-594e-4fb2-8cb8-482073fca2c8","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":60,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"1ddfa402-ee51-4aeb-ad07-b65cd0928987","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":60,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"253a5850-e630-442f-98df-98be11101bea","block_type":"box","text":"interest in foreign currencies, the value of a Fund that invests in foreign securities as measured in U.S. dollars will be","page_number":60,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"8bd78442-959f-4c62-814c-fd48885b7232","block_type":"box","text":"affected favorably or unfavorably by changes in exchange rates. Generally, when the U.S. dollar rises in value against","page_number":60,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"27275045-2172-4792-a990-14e929848ce4","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":60,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"f75a882e-a19a-4453-8a4a-b56bfba3fc6a","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":60,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"0ae51b1e-00cb-4114-9e2f-3db879855175","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":60,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"5056a1c0-1d16-4edb-b966-1ed8360d60d2","block_type":"box","text":"risk,” means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will increase","page_number":60,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"41838419-849f-4682-8763-0e42b8c72c09","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":60,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"af29409d-13cd-40d2-9c13-f2f09cecb0e0","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":60,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"e0b4d4c6-151e-4ac7-9e26-b01d08876f2e","block_type":"box","text":"United States or abroad.","page_number":60,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"7fbc7b4f-b51c-4702-8ee2-191a7ad8f1eb","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":60,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"3e45f027-beba-4e17-aaff-53a34bfcb160","block_type":"box","text":"Many foreign governments supervise and","page_number":60,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"0a8103e7-fe34-4f1c-aa10-f3dec27204cc","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":60,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"bf635044-20c7-4378-b894-e1a5d45a9e5e","block_type":"box","text":"not have laws to protect investors comparable to the U.S. securities laws. For example, some foreign countries may","page_number":60,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"0213500d-e0b1-451e-8ba9-94d339869c2c","block_type":"box","text":"have no laws or rules against insider trading. Insider trading occurs when a person buys or sells a company’s","page_number":60,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"d9dab579-aa80-43df-a7e0-3c4d19c8e0e9","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":60,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"92fbca0a-2d42-47a2-85f5-a91cb5dcb699","block_type":"box","text":"necessarily the same as in the United States. If the accounting standards in another country do not require as much","page_number":60,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"dc92c373-2be4-402e-b827-369ad64bbd38","block_type":"box","text":"detail as U.S. accounting standards, it may be harder for Fund management to completely and accurately determine a","page_number":60,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"abe7394e-e93d-4cba-8ff5-8c7fba88eb07","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past imposed","page_number":60,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"b231de8e-fe48-4c4e-a3c0-9d0028f74bba","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":60,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"94ca64ab-56a3-47ca-b770-5a2cbc8a88c4","block_type":"box","text":"restrictions should be reinstituted, it might become necessary for the Fund to invest all or substantially all of its","page_number":60,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"7e589a13-3e01-4604-bc16-98f6cb84c1f4","block_type":"box","text":"II-29","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"322d9a73-ad1b-47c0-8e29-00a9c2522851","block_type":"box","text":"NM1026U-5981128-60/232","page_number":60,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4d4167cf-9bf6-4ba0-86c9-78292274f222","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":61,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"d93a0dae-1586-457a-92a0-0d0f87da980e","block_type":"box","text":"higher in foreign countries than they are in the United States. This reduces the amount the Fund can earn on its","page_number":61,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"fccf7dc4-5a6f-47b5-b901-e6dc7fea520a","block_type":"box","text":"investments.","page_number":61,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"e13be066-ad6b-4dc7-a333-feb1c7a0d958","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":61,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"f358b999-0593-44d4-947b-83346929d8c7","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":61,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"79ce31d4-8118-4a33-ae9f-8c898cde7aa9","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":61,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"b7368cde-3939-421a-9e67-99e9a3ec6a10","block_type":"box","text":"organized or new to the foreign custody business. In addition, there may be limited or no regulatory oversight over","page_number":61,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"1c52d095-e60f-4fbd-9acc-1d2a2b2dd6ca","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":61,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"25272220-1365-41c8-888f-a8d699dba2cf","block_type":"box","text":"bank or depository or issuer of a security or any of their agents goes bankrupt. In addition, it is often more expensive","page_number":61,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"895636a7-8fbd-4258-b122-b605b945b8a3","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":61,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"caf65aa0-f433-4b3b-b277-e35e13308112","block_type":"box","text":"expense of investing in foreign markets reduces the amount a Fund can earn on its investments and typically results","page_number":61,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"556647ab-7b71-42fb-8898-9f54c983cbd1","block_type":"box","text":"in a higher operating expense ratio for the Fund as compared to investment companies that invest only in the United","page_number":61,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"744f757b-3f09-4e5e-a486-68f9ab9d2ae1","block_type":"box","text":"States.","page_number":61,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"f48c5e54-67be-40b5-9186-caa04254c0bd","block_type":"box","text":"Publicly Available Information.","page_number":61,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"60afc840-05cf-4ab2-9f28-06f9947a37e0","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":61,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"5b765778-6753-45eb-88cd-d3356737772c","block_type":"box","text":"than is available with respect to U.S. companies. Most foreign companies are also not subject to the uniform","page_number":61,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"8f29473e-76cf-4819-83b4-59cd606dd1f9","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":61,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"c57b7aa5-f435-4e77-a9cd-ad19f67bf4e9","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":61,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"70cd36dd-5281-4ef7-b017-6b50104da2a4","block_type":"box","text":"the New York Stock Exchange. Accordingly, a Fund’s foreign investments may be less liquid than, and their prices may","page_number":61,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"6fc2e8af-c320-45f8-bed9-64fb5e560f33","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":61,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"21961bef-4d1f-454d-814f-2d28b03f6cba","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":61,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"68c16e1a-e8b6-4358-b7be-ef19a7fd81ee","block_type":"box","text":"United States.","page_number":61,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"2a72603e-fac7-4c82-81aa-94d68377d33b","block_type":"box","text":"Settlement Risk.","page_number":61,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"287534b0-b0e5-4168-9864-4815935a123c","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":61,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"2994aaa7-ff7e-4950-9a26-d7e734d9f93e","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":61,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"100e45d3-c6dc-46ef-bb09-a19591b5a323","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":61,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"0c5c2aa6-1a01-45f2-aedf-a1df0968b551","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":61,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"985278a9-5ff0-4961-a65e-c0b067787f97","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":61,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"ac6d36cc-bef7-41c9-b683-5b66113cafb3","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":61,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"57163956-6eb5-45c5-8819-053c639e4b3c","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":61,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"22a9d8c1-7d15-44e3-9b0b-ad64be0a7979","block_type":"box","text":"these problems may make it difficult for a Fund to carry out transactions. If a Fund cannot settle or is delayed in","page_number":61,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"0602f796-9ff6-497d-a01a-b07b4af51b36","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":61,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"6bf84ab5-594f-4e0d-9c9f-fb82b9ee6a5e","block_type":"box","text":"uninvested with no return earned thereon for some period. If a Fund cannot settle or is delayed in settling a sale of","page_number":61,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"72805502-0f0c-4109-b37c-aea41a051b14","block_type":"box","text":"securities, it may lose money if the value of the security then declines or, if it has contracted to sell the security to","page_number":61,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"99561fa8-5ec2-462d-84a0-17cbcee43996","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":61,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"ce90a824-e57e-41c2-a85f-d047e4facd35","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":61,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"0ec6e2fc-9f9e-4814-8238-eaf89ad68696","block_type":"box","text":"arise in respect of securities held by or to be transferred to a Fund. Compensation schemes may not exist or may","page_number":61,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"b42b977f-e260-4535-bbbd-a97f468c55a1","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":61,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"2d86cdf3-155b-4ecf-abbe-f70888765bc0","block_type":"box","text":"Sovereign Debt.","page_number":61,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"dbbb21e6-05e3-44f6-9595-c410a585423c","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":61,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"96f1dc50-d8a0-4bb7-965f-8380d5e0f75b","block_type":"box","text":"controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in","page_number":61,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"d7dc9e2b-2554-46e9-9700-940e50b7f44f","block_type":"box","text":"accordance with the terms of such debt. A governmental entity’s willingness or ability to repay principal and interest","page_number":61,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"163fb17c-51c6-4b44-9682-2a12f31eb84a","block_type":"box","text":"due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign","page_number":61,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"e62b816e-d11b-4923-a3eb-9abef4eea2d8","block_type":"box","text":"reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt","page_number":61,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"fc4bd013-22b4-4a1b-8d88-4c6cf397c65a","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":61,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"be0f12fa-967c-474f-9dfc-f8ab3081c9fa","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":61,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"f8e5affb-288c-4b08-8302-97c9718b05c8","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":61,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"66881578-7bed-4992-b12f-4751e037b764","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":61,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"34935439-5c57-4f02-ab82-a677c41c5158","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":61,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"97b67b9f-066b-444e-9bdd-ba2294416339","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":61,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"b5e73d69-6379-474b-bdc8-3f07169ecf4a","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":61,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"e59459d5-fe4d-4fbc-b52e-703b8b353b19","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":61,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"88ef295b-8bc8-4b7d-aea0-53b7e4972c62","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":61,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"87da814e-a810-4c8a-a456-f187456cf563","block_type":"box","text":"debt.","page_number":61,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"cb4a7c2e-e505-43d4-b110-101d5ce3677b","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":61,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"29c274c7-24c5-4565-a8a1-260652cac7e2","block_type":"box","text":"loans to governmental entities. In the event of a default by a governmental entity, there may be few or no effective","page_number":61,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"569e5e1a-14e6-40b5-9480-9dd92b8791e5","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":61,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"756540fe-ad82-4e0d-bf05-7e21e0d37972","block_type":"box","text":"II-30","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4a78f599-6521-4666-9f4a-7104099da038","block_type":"box","text":"NM1026U-5981128-61/232","page_number":61,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cfd5b83d-104a-4a61-8a79-1986782e6b02","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":62,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"4a7e2950-1171-4ac2-82b5-c0dd37dcdc3a","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":62,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"9d4fa0a2-6385-4ba0-8c30-5af67e18dc98","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":62,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"ab72eae5-02ad-4637-815d-82251df88f3b","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":62,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"d4dea045-1f14-4d28-9bc3-2f2cc0f18644","block_type":"box","text":"refund is within the control of the tax authorities in such countries. Where a Fund expects to recover withholding","page_number":62,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"bdcbaa62-e212-4c8a-a91b-ba5c64994d28","block_type":"box","text":"taxes, the net asset value of the Fund generally includes accruals for such tax refunds. Each Fund regularly evaluates","page_number":62,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"48107044-9299-45ea-80a5-ff6d25b80070","block_type":"box","text":"the probability of recovery. If the likelihood of recovery materially decreases, due to, for example, a change in tax","page_number":62,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"3668ea80-56cf-4f27-a15d-7a8403e49092","block_type":"box","text":"regulation or approach in the foreign country, accruals in a Fund’s net asset value for such refunds may be written","page_number":62,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"91d41e52-1b0e-49e9-a3a9-3ef71e806312","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":62,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"05c1cc80-a239-4a7e-a88c-3c579c18e21c","block_type":"box","text":"accrual is written down will bear the impact of the resulting reduction in net asset value regardless of whether they","page_number":62,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"3f9b8ff8-5513-4c7b-ae24-53108a0c0771","block_type":"box","text":"were shareholders during the accrual period. Conversely, if a Fund receives a tax refund that has not been previously","page_number":62,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"d5abfd65-4d74-41f6-b22e-c7e7c0fea51a","block_type":"box","text":"accrued, shareholders in the Fund at the time of the successful recovery will benefit from the resulting increase in","page_number":62,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"c303dd31-ed04-47db-83c0-14250a547238","block_type":"box","text":"the Fund’s net asset value. Shareholders who sold their shares prior to such time will not benefit from such increase","page_number":62,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"8d5196db-218e-4fa5-b574-c04b55d2ebc2","block_type":"box","text":"in the Fund’s net asset value.","page_number":62,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"0b854576-554f-4ef4-adff-517ac19eb465","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":62,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"ac30c7ad-2b7d-4ed7-86f3-45591bf660ff","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":62,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"2ebe9b58-80d8-49e3-9a35-700a39b86dd3","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":62,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"759236e7-06d0-4439-a15c-8323552ea61d","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":62,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"ff957ea4-017a-4912-b0eb-6ff8237b5eaf","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":62,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"cb83d496-7168-4fdb-9b29-7685c3b7fb08","block_type":"box","text":"slowdown in the United States may have a material adverse effect on a country’s economic conditions and, as a","page_number":62,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"abb43797-7449-45ed-bd67-4b31f53b80c1","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":62,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"65b97b9c-bbd6-430f-b57b-59571dbfccca","block_type":"box","text":"of interest or principal on U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment","page_number":62,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"2e7d8e26-1dff-4143-bf1c-f803bd715974","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":62,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"45452f72-9d5a-4ea4-862a-8fe263bdb859","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":62,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"ab153c9e-6bcf-472d-98e2-005840f4e3d0","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":62,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"047e39b1-5fa3-4097-b877-dc4c5c133eb0","block_type":"box","text":"If these relations were to worsen, it could adversely affect U.S. issuers as well as non-U.S. issuers that rely on the","page_number":62,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"d3cbdbba-1f5b-47dc-a40d-c382e1f3b236","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":62,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"8b3897d7-f726-402b-9545-95d012c809a0","block_type":"box","text":"trends were to continue, it may have an adverse impact on the U.S. economy and many of the issuers in which a","page_number":62,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"56095a98-c857-47a0-a3dc-a5c3a5332b3d","block_type":"box","text":"Fund may invest.","page_number":62,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"670e5cd2-41f3-4654-8393-982a45ad6db3","block_type":"box","text":"Funding Agreements.","page_number":62,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"0a09bd15-9bde-4f9c-a0e9-ebb065c5ba9e","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":62,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"7abfa89d-36f4-4fba-be69-f00bfaa2fb26","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":62,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"96ec3dab-786e-4c21-b6d0-41eb0d3adb8b","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":62,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"8330a264-959e-4a85-9f49-e14d9bdcc084","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":62,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"f3d5bc08-6a9c-456c-a481-2bac918dfa0a","block_type":"box","text":"not be less than a certain minimum rate. The purchase price paid for a funding agreement becomes part of the","page_number":62,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"383ff0e5-1ea4-4abc-8641-789c369545f2","block_type":"box","text":"general assets of the insurance company, and the contract is paid from the general assets of the insurance company.","page_number":62,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"ba67ae9a-5c9a-4897-8c8d-61c8cfda08e0","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":62,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"ac5bd829-24cf-43b7-8d0c-2b1c8e703f64","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":62,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"fcf722ac-6acf-448f-b83f-3ce58cb36e44","block_type":"box","text":"Guarantees.","page_number":62,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"3e6c1099-12ee-4982-a14a-fbe7e50d9dcf","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":62,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"0c5d8835-086f-45f7-be32-52c5d41320be","block_type":"box","text":"issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":62,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"924f67a5-1fea-45e9-93a7-6cedb3d3876a","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":62,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"2ab4daec-c5c9-43f5-9dbc-44a43f3654cc","block_type":"box","text":"Illiquid Investments.","page_number":62,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"f5efd6e2-ef69-47a7-bcf9-5c75ea594fae","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":62,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"133010b3-0d57-4fd1-8dc3-e7b5604cf040","block_type":"box","text":"Fund would have invested more than 15% of its net assets in illiquid investments. 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If illiquid","page_number":62,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"7e0e4e45-eb41-4d60-9376-bc696a3710c1","block_type":"box","text":"investments exceed 15% of a Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as","page_number":62,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"3847f8c3-ce8b-40f0-b2a4-009f4bbc1d0d","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":62,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"5dfefbce-b016-4ad7-b153-a8cba765be42","block_type":"box","text":"comparable liquid investments. 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The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":63,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"96b00b3c-765b-4bc6-9fa4-20ac48b4b16c","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. 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Finally, since each Fund seeks to","page_number":63,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"c4ee4428-2e14-4a80-b1e3-aa9d325856ff","block_type":"box","text":"replicate the total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":63,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"a3fa4169-18c8-4e8d-b478-c3083e70a0ab","block_type":"box","text":"particular security as an investment.","page_number":63,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"cdb772fd-bfe6-422e-8d90-17778ccb9293","block_type":"box","text":"Tracking Error Risk","page_number":63,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"ec70edde-ecaa-40ac-a1f6-4dd6019d74bf","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":63,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"2587a951-8870-41db-9556-21d81d46e083","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":63,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"128e74a0-c059-4b5d-b77d-3013e4b8e524","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":63,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"59938aa7-a8e6-4c06-978d-3dfbd9b8642c","block_type":"box","text":"applicable, differences between a security’s price at the local market close and the Fund’s valuation of a security at","page_number":63,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"620e8a24-2e83-49be-beef-a1176fb4018f","block_type":"box","text":"the time of calculation of the Fund’s net asset value), differences in transaction costs incurred by the Fund, the","page_number":63,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"b0122276-b1b4-4ff1-b16d-6b98bd1aaf87","block_type":"box","text":"Fund’s holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or other","page_number":63,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"17e375ae-b3da-48d6-adb5-84c7afe5cbed","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":63,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"f93f2473-41d7-487e-b983-3add5e094942","block_type":"box","text":"minimize the distribution of capital gains to shareholders, changes to the Underlying Index or the costs to the Fund of","page_number":63,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"83f6d39f-54a0-452b-879d-c674297232f6","block_type":"box","text":"complying with various new or existing regulatory requirements. 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S&P makes no","page_number":63,"box":{"x":69,"y":687,"width":818,"height":11}},{"id":"08aa4a4f-839f-4056-bf82-1649b4054466","block_type":"box","text":"representation or warranty, express or implied, to the owners of shares of a Fund or any member of the public","page_number":63,"box":{"x":69,"y":702,"width":783,"height":11}},{"id":"2f957fe6-35bc-4415-822f-b400bdcf0b73","block_type":"box","text":"regarding the advisability of investing in securities generally or in a Fund particularly or the ability of the S&P 500 to","page_number":63,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"eef4e5b2-4382-4565-a8f5-dfe7185d8e5d","block_type":"box","text":"track general stock market performance. S&P’s only relationship to certain Funds is the licensing of certain","page_number":63,"box":{"x":68,"y":732,"width":769,"height":12}},{"id":"875c9dea-1bb6-4380-ae93-5d85a7c19764","block_type":"box","text":"trademarks and trade names of S&P and of the S&P 500 which is determined, composed and calculated by S&P","page_number":63,"box":{"x":68,"y":748,"width":804,"height":11}},{"id":"9992f3c2-b1ee-41b8-b82f-5240a4fc7ddf","block_type":"box","text":"without regard to the Funds. S&P has no obligation to take the needs of a Fund or the owners of shares of a Fund","page_number":63,"box":{"x":68,"y":763,"width":811,"height":11}},{"id":"e4143bab-4788-417a-8189-7f06c4e6d872","block_type":"box","text":"into consideration in determining, composing or calculating the S&P 500. 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A Fund may also invest in so-called “inverse floating obligations”","page_number":65,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"8b6538c5-5c12-4768-9af5-11e53508b4e4","block_type":"box","text":"or “residual interest bonds” on which the interest rates vary inversely with a floating rate (which may be reset","page_number":65,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"bbe11b4c-8327-49a7-a577-c3eb77755f89","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a short-term tax-exempt interest rate index). A","page_number":65,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"f1db5716-cded-4d59-be08-812f5e9635d9","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":65,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"2df390dd-4ed7-4843-8acf-a5b8054c88ae","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":65,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"10cf757e-e90a-4df1-b701-39539d8c4634","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":65,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"2fcdaebf-b0b4-436e-9d87-e2d73849c453","block_type":"box","text":"increase or decrease in value in response to changes, as an illustration, in market interest rates at a rate that is a","page_number":65,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"3d7e6fab-ee95-436b-9777-4e721925975f","block_type":"box","text":"multiple of the rate at which fixed-rate securities increase or decrease in response to such changes. As a result, the","page_number":65,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"5d4d958a-d2df-4e48-867e-1c6ce52e7abb","block_type":"box","text":"market values of such securities will generally be more volatile than the market values of fixed-rate securities. To","page_number":65,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"78999ac7-b628-4aa3-b59d-e0179ea81333","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":65,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"e9357eb5-c483-4f49-83ca-2cdd70a94f63","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":65,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"baa7162b-49ff-4794-8258-b97e5f7daad9","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":65,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"3e4b5036-b1ae-4ed7-b4f4-ff0f20e82cb4","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":65,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"7bacd9dc-6725-4913-bd9a-20dde64b3bd2","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":65,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"5f03bf73-baec-44ea-b33a-e8cbe99e041d","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. When used for","page_number":65,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"feaeb454-a239-44bf-90bb-e6d3686fe036","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":65,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"65da7737-a918-45b3-a839-a7de911d40bd","block_type":"box","text":"includes a contingent liability, in the event of an adverse movement in the underlying index or interest rate, a Fund","page_number":65,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"316950a1-026a-49eb-9253-c8f51f6fef81","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":65,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"3883cdf4-a665-4b8e-bf3c-38ea3c46407c","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":65,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"cdf52d80-3c4f-4812-8203-78b3ab5fdacb","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":65,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"5296af19-adb5-4972-b2a5-081ffe08a014","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":65,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"91f967e1-d302-43fd-93ff-2cb9de798bae","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":65,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"e6b69b39-66a7-451f-8e18-3287568bd93d","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":65,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"1319c9c9-7a59-4c50-bd4d-17badf25d0e6","block_type":"box","text":"Inflation Risk.","page_number":65,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"621d85ff-9a45-4577-bf51-c651f3c3f934","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":65,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"ce7ad441-f429-44ab-9958-26ac2ce9e5fe","block_type":"box","text":"value of assets or income from investments will be less in the future as inflation decreases the value of money. As","page_number":65,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"73f869a2-c44a-4a5c-b14e-fc8f6c8daeb9","block_type":"box","text":"inflation increases, the present value of a Fund’s assets can decline as can the value of a Fund’s distributions.","page_number":65,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"23f7e4fb-81c5-459b-9661-3d5b2a17d370","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":65,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"cba34826-bbbb-4290-8810-bb2bf45dad60","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":65,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"27e743a5-662e-4a78-acf1-84f027ddf2d5","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":65,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"cb1a8ab0-b3d2-4d87-ad5c-85c8dd4fa9b3","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":65,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"55790781-b0a3-4b72-a1b8-63ee7d19b217","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":65,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"fb152b59-8d23-40b5-abd1-791f63cfe294","block_type":"box","text":"availability may be limited and a Fund may not be able to buy any shares at the offering price, or if it is able to buy","page_number":65,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"7aa61d1a-e2be-419e-b473-18dad3312810","block_type":"box","text":"shares, it may not be able to buy as many shares at the offering price as it would like. In addition, the prices of","page_number":65,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"c1c18403-6412-4af1-96f5-432b2aa5c945","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":65,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"d7d83b42-f31e-4d43-a94e-fdef23ffe3bb","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":65,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"27a4f142-d2c9-4eef-b850-2fc288e3f64e","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":65,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"4b5a1652-643f-4955-af40-ab37079c718e","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":65,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"309bcf1d-8546-456b-918e-7d01dc1a57d8","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":65,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"ea6effb4-268d-4138-864f-bde77dd14267","block_type":"box","text":"II-34","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3bc9eaa6-c514-45e5-ad33-2c60d1bebcd0","block_type":"box","text":"NM1026U-5981128-65/232","page_number":65,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3df28ce4-278d-4a97-b80c-cafeea9ca47f","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":66,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"c22e83c0-a918-4c4b-b8ca-436fed73acee","block_type":"box","text":"Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when it","page_number":66,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"5d1d8bf1-eb8d-428d-93f9-57e2b0161849","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":66,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"fffb85a5-93df-4067-a4fc-ceb2d6259922","block_type":"box","text":"decrease. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller","page_number":66,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"e1520dcd-6a94-4482-a207-16bc3e31115b","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":66,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"aad6ad9a-83b6-453e-96bf-371cef099310","block_type":"box","text":"be available for very limited periods.","page_number":66,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"e42649b4-6895-463a-ac77-547f05bf1d17","block_type":"box","text":"Investment in Emerging Markets.","page_number":66,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"d9dd565a-7266-4e36-80c1-4d9ca876dd3f","block_type":"box","text":"General.","page_number":66,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"a0aef054-2e8b-4675-9cef-784ed91b7bde","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":66,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"2f5cc6d1-1314-41c4-9431-37d2b7a26a57","block_type":"box","text":"markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital market is any country","page_number":66,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"1c35feff-9320-486e-b67d-ba0f6aa8b1ee","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":66,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"bf0759f2-d397-48ca-aa96-f7489d52b811","block_type":"box","text":"the International Finance Corporation, or determined by the World Bank to have a low, middle or middle upper income","page_number":66,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"792d8a8a-0638-4d4a-a0da-8198e683b2ca","block_type":"box","text":"economy; (ii) classified by the United Nations or its authorities to be developing; and/or (iii) included in a broad-based","page_number":66,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"4bbf9b33-cbcf-4acd-9f7c-8189d25c7e3d","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":66,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"f2cac674-3033-4a2e-a649-33a1e789bfe4","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":66,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"308af91d-8180-4350-bc56-8bc1982b0d16","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":66,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"2d230434-5030-4548-8ba5-fcca64d8cbdb","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":66,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"3da546f0-0fa4-4294-a0f2-cf243e330708","block_type":"box","text":"such as (i) low or non-existent trading volume, resulting in market illiquidity and increased volatility in prices for such","page_number":66,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"429202e2-4a70-4999-80c3-09611407537f","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":66,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"72f8ddd7-29e5-4573-8cf7-52a33133a4db","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":66,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"922a0092-263f-4f99-8e22-a57d52881f86","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":66,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"751902a2-41ab-46c3-9b41-f5ee8f95ec89","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":66,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"e99ebe42-dd7b-426c-ac98-d3cfed2fd159","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":66,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"dfecd760-b5ef-40e8-83c1-4f8c12693b76","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":66,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"8594f568-ecb9-4a98-a765-424980e9cc6e","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":66,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"6ca02896-f0af-44f3-aaa6-2bedcfd18dae","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":66,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"f366cafc-3dde-434a-928f-5df6503c9722","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":66,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"1b2c5c89-6fae-4339-819a-23ddc19a5bfc","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":66,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"c76022ff-064a-49cb-b13f-8ded65b73119","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":66,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"d982786b-b88a-4ca6-9d30-c332c10bad1d","block_type":"box","text":"developed countries. In such a dynamic environment, there can be no assurance that any or all of these capital","page_number":66,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"24fecefe-9169-4929-9c01-c70f2087e8cd","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":66,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"18cffa27-1213-4071-8303-d4d10cd46890","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":66,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"fd1dc074-1f4f-4556-9b0f-e281610b0af2","block_type":"box","text":"fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":66,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"137e60e9-fadc-41b2-9def-80479650e4d1","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks described above,","page_number":66,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"0452b464-d04f-44a3-8e54-3342c74fe9a0","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":66,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"bc04aa86-b561-498b-a611-ec667e9fda57","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":66,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"e9af7f2e-2c07-4e6e-bc77-ad9bf3251695","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":66,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"df5abd96-55c6-43f0-993b-234d91536671","block_type":"box","text":"the limited volume of trading in securities in these countries may make investments in the countries illiquid and more","page_number":66,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"07e4bdda-b262-4a14-a51d-57e726785442","block_type":"box","text":"volatile than investments in more established markets.","page_number":66,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"f00de202-526a-49b2-9355-7c40e4f2c50a","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":66,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"42ef0634-3edc-4c59-b69c-601e89e77375","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":66,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"f5f2a3a1-8367-48d9-bedc-afa548f4f2cf","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":66,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"dd87dba9-c5e3-4caa-ba75-168b6fff7a3e","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":66,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"2b00b1c1-645d-4728-aa6d-5f1dcf407952","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":66,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"2e8268aa-1c51-4e4f-9500-00148a4e896d","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":66,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"6bb5362d-3227-4716-887c-01a5997adbc6","block_type":"box","text":"shares may be held by a limited number of persons. This may adversely affect the timing and pricing of the Fund’s","page_number":66,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"b085b1ee-aba6-459d-80b2-e91e699af919","block_type":"box","text":"acquisition or disposal of securities.","page_number":66,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"a6cd4b69-a1ea-43be-a4f3-b975b6e0b740","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":66,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"bc700927-6c67-44f2-9031-36bfba8a9ca0","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":66,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"fa5e5022-4412-4892-99dc-47f0d474e5d8","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":66,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"64a66710-be70-420f-9009-acf347e82b2d","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":66,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"07c5b8a1-6e68-47ba-9f67-d9c9f9ce0d97","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":66,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"a92f6530-f37f-409f-bdd7-4ccf64e5d5c3","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":66,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"63016c34-022c-4e4e-bee0-f21e542f754a","block_type":"box","text":"II-35","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"95edbee3-8054-4daf-971e-41e479988b0d","block_type":"box","text":"NM1026U-5981128-66/232","page_number":66,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"88e00cf4-93ca-4791-8407-2b46d25e0c58","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":67,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"6446b0dd-dfac-4299-8ae1-2be37f081f49","block_type":"box","text":"countries may be on either a currency hedged or unhedged basis, and the Funds may hold from time to time various","page_number":67,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"721eb9f5-edc6-4aa3-b756-0249017b8ade","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":67,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"252fd066-cabf-447d-ad4b-ff1c49a0f01c","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":67,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"c59df442-84b3-46a0-9935-1383c01bcbae","block_type":"box","text":"to seek to protect against changes in the level of future exchange rates which would adversely affect the Fund’s","page_number":67,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"480000ef-604e-46b1-a384-1c5212d0c343","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":67,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"c7cdcb6b-3e1d-4dfe-b3d3-15b441719813","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":67,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"1f754ac5-a21a-4de4-8782-b67cf48a7624","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":67,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"2879d372-5016-481d-a0cf-2c60620023c5","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":67,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"050a95b6-1282-4a6b-b022-e1589979d23d","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":67,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"24683423-11a6-42a4-96c1-21abe3f71c25","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":67,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"8ed3d28b-fe7f-4301-939f-5d8533566e64","block_type":"box","text":"these markets, there is a high concentration of market capitalization and trading volume in a small number of issuers","page_number":67,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"0b8c65d2-0178-442f-8cc2-4d78da163cdd","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":67,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"5f507d23-f1b8-48a0-9952-5cb8b3d09a5f","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":67,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"8749fda6-0324-458c-80c3-72b199d34321","block_type":"box","text":"region such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are fewer in","page_number":67,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"9c74cbbd-3465-446c-9f54-20833d032cf0","block_type":"box","text":"number and less well capitalized than brokers in the United States. These factors, combined with the U.S. regulatory","page_number":67,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"4b8b0ad9-9fe0-4bd2-a2df-e5decf4c8aa1","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":67,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"ef4e5b6d-5429-4416-92eb-cba5335894e5","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":67,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"d7262edd-e959-4c57-94a9-212e6da1da41","block_type":"box","text":"performance of the Fund.","page_number":67,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"d6224b1f-db48-4ba9-8332-3326e87c33db","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":67,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"61c0c30c-5c57-4680-9b22-5cdd5516e3d9","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":67,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"08ae3a4b-3580-4daa-a8d3-8880cb9f11b6","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":67,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"c423a7ba-8c9c-47ff-9f8d-57f54c47311f","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":67,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"9759c792-9490-4aeb-9cb1-c8ce87ce861e","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":67,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"a4f198ab-3e89-4bb3-b171-735f1c993f9e","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":67,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"caeb7d26-3736-45dc-9f21-6e36a5b8c169","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":67,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"b5228b39-78ad-4899-b153-da1ad701bfc1","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":67,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"8229c870-368c-45e7-a333-75a6d3c6285d","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":67,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"00b54ea0-73ff-4131-b6c5-2cd387f8f720","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":67,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"ed4918af-1bc4-45c7-88f6-c5936c34efdb","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":67,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"7beceee4-645a-4565-b4c5-2b5438de1bf4","block_type":"box","text":"affected by a variety of factors.","page_number":67,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"ced591e1-d02a-4396-8a8b-17c1bacc6714","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":67,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"8ebf6ca1-6c6f-4ac5-8154-4b8724c9ecb6","block_type":"box","text":"Fund. For example, while the potential liability of a shareholder in a U.S. corporation with respect to acts of the","page_number":67,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"fb7bc6b1-782d-45d6-b4ab-896b1bb860c7","block_type":"box","text":"corporation is generally limited to the amount of the shareholder’s investment, the notion of limited liability is less","page_number":67,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"c8aee153-da84-4d64-a775-de2f6280252e","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":67,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"1d584012-81ca-434b-9730-ea4f68659969","block_type":"box","text":"Pacific companies may be more limited than those of shareholders of U.S. corporations. It may be difficult or","page_number":67,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"bcfb9001-046d-4b00-b1ab-4523bee90597","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":67,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"5bdf33e9-28ac-482b-a370-2767c8869d8e","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":67,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"5b895bba-3b04-4a59-9bef-faacda5d2d5a","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":67,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"c64373b1-5eed-4ab9-bf59-1eb7d239ffb8","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":67,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"d79a1b12-42ce-4129-ac9a-9f6b01281a25","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":67,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"d02c8859-84dd-4b67-802d-72326079b2f0","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":67,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"f8b3c01d-c700-4d05-88df-33b2083e62e0","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":67,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"4de2242e-0cd6-49b3-aee5-be74713d9671","block_type":"box","text":"nations.","page_number":67,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"5f9b8cf5-ed7d-499a-97c9-eea13fd6f46c","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":67,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"3d43f484-b10b-4d88-8636-95a13f5820ef","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":67,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"db535891-011d-4fbe-bdda-0799d3e63ff3","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":67,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"467a2534-0848-4835-8f59-d615c65fa3fb","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":67,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"196f3f46-73ad-413a-8762-cd216a020e95","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":67,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"aeff58ea-1f90-40e3-9ecb-919eb4651551","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":67,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"973588c9-abfb-4723-8cc4-21a831378297","block_type":"box","text":"market Asia-Pacific companies.","page_number":67,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"97d12939-0d7d-4d75-b914-f8898399954b","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":67,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"e78e65b3-c634-4df4-9890-3806c8f16b4d","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":67,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"61aaa554-d255-4c0a-9327-b843140497cc","block_type":"box","text":"services for such securities outside such countries.","page_number":67,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"974fee96-d05a-4211-ac67-654fa9cb3008","block_type":"box","text":"II-36","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"34237666-0d15-4ede-b5e3-96c516f526c0","block_type":"box","text":"NM1026U-5981128-67/232","page_number":67,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8ef1deeb-248c-4cb9-9766-7a61b5a10b73","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":68,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"22d7a11b-3202-4465-ace7-991e2e30480b","block_type":"box","text":"to commercial banks and foreign governments.","page_number":68,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"78dc14bb-552f-4ff2-b4d1-116328071589","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":68,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"76eaa98a-8dbc-49ee-ab85-ecd1719c50ae","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":68,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"fe1ba37b-365b-4ca6-92bb-84dfea8fd788","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":68,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"b12c23d5-c2b6-4a6f-ab0a-a93552bc2fc8","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":68,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"2db60f31-cfd6-413b-bc9d-da55dc0f5ae1","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":68,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"72e8d06d-26a9-407f-8c67-20b0c57995f4","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":68,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"876cbb3d-c162-4f22-aebb-6c93f985594a","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":68,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"b08a07c1-5fe9-4769-93c2-470ce761c266","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":68,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"af1722f5-e8f7-4d95-94ad-b1cebba6043c","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":68,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"e0d6c57a-3764-4e02-a756-670ad052bb6f","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":68,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"812d7dbb-6307-4f6b-8a84-1648eeaf5f20","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":68,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"407dc7fa-dd90-4faa-89a2-067962ff4449","block_type":"box","text":"by foreign persons to only a specific class of securities of a company which may have less advantageous terms","page_number":68,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"72a360be-3250-4f39-954f-0ddaeeb6eb82","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":68,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"dba5c0d2-4880-4777-b10a-dbec1ad8310e","block_type":"box","text":"be no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In addition,","page_number":68,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"68bac00f-3c8c-4d0a-9ebe-fc42a8c6f1c7","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":68,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"228f034d-901c-4c38-8299-1bd775d526bc","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":68,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"3c4dae8e-47d1-4007-ab82-c5a933f7c23a","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":68,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"9bd9cd7d-85bd-4ff1-abe1-b565d7111e16","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":68,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"f6ab8c46-3f5a-46e1-8a3a-af252a39829d","block_type":"box","text":"well as limitations on such investments, also may have an adverse impact on the operations of a Fund. For example,","page_number":68,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"1e4ec0b3-849f-419c-ace3-79ade5afb8c4","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":68,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"794063a9-f538-4172-84b4-7387dfdaa5ef","block_type":"box","text":"have the shares purchased re-registered in the name of the Fund. Re-registration may in some instances not be able","page_number":68,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"ba26fea4-17d2-4e6a-83a5-89162cdf5020","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":68,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"a6afb295-52f3-486f-9be0-3b911f7a893d","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":68,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"ca96fb69-cd09-44ed-aef4-759cdcfd7eeb","block_type":"box","text":"a Fund places a purchase order but is subsequently informed, at the time of re-registration, that the permissible","page_number":68,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"55e4d6ea-0643-4389-86ae-abf10b5c43e0","block_type":"box","text":"allocation of the investment to foreign investors has been filled, depriving the Fund of the ability to make its desired","page_number":68,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"465357a5-fad2-4e23-94b6-03f71de81b14","block_type":"box","text":"investment at that time.","page_number":68,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"369fc114-1cdb-427c-80ad-7d536c03f270","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":68,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"fa81feee-ce27-44ad-8e69-7db789e8af6e","block_type":"box","text":"income, capital or the proceeds of sales of securities by foreign investors. A Fund could be adversely affected by","page_number":68,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"df3f5371-bd56-43dc-a975-947daa1f45aa","block_type":"box","text":"delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the","page_number":68,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"438eb72e-2a0b-40ba-bc66-2373f6c24631","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":68,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"848de989-cd28-4fd0-b5df-125f43eb776a","block_type":"box","text":"controls or other restrictions relating to their currencies or to securities of issuers in those countries. To the extent","page_number":68,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"3aed1720-f0e5-4fc8-98b5-0e1176382e25","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":68,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"125c0e4c-1489-4873-9ec6-4d8ec6af0076","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":68,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"a9795e56-a6d9-487e-bb7c-35d7908dd07e","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":68,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"b01c2ee2-f393-48e6-8506-bac6df8f8059","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":68,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"45a93016-be27-45bf-86b5-9e5c2d88ea25","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":68,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"531ee0d8-0daf-42d8-b153-291224c7b810","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":68,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"bd2b919d-1ee7-4b8f-ad19-3ea39d29d97b","block_type":"box","text":"government).","page_number":68,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"7dce65e0-912e-4896-8c65-ffb7d140351d","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":68,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"459102af-1783-4477-975e-1b6e48d6d264","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":68,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"767d366f-7683-4824-b093-cb1f47a089ef","block_type":"box","text":"securities of an issuer that, in its most recent fiscal year, derived more than 15% of its revenues from “securities","page_number":68,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"3d7bde41-5ec6-4e8e-895a-becfe472c660","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":68,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"e20dabd5-3293-429d-afe5-b81b7b4cdeb3","block_type":"box","text":"foreign banks and other financial institutions.","page_number":68,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"c73b7893-4954-4278-9762-6bc96e462452","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":68,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"db6d6325-ff1a-49f5-9000-f7686df562f9","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":68,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"971b1954-efcc-499b-bf49-b25bdb879138","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":68,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"8569a132-bf51-49b6-8b06-3d46d6ce89a6","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":68,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"1c626e33-9348-49e2-bbed-508aa3100881","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":68,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"bb5495d6-0231-4073-b9c9-84a986cd932e","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":68,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"8d4263d3-db85-4388-82fc-15e3a07f3fa9","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":68,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"2fd46080-e3e4-46a0-ba5b-93bc6d7cc4df","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":68,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"253c263a-f3c3-4496-a5b5-fd1e086da906","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":68,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"c7eef890-fbe1-4194-a21c-a04c392a52d7","block_type":"box","text":"II-37","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d37a4349-8a23-4930-8f8d-40f0e96dd247","block_type":"box","text":"NM1026U-5981128-68/232","page_number":68,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c89ad39f-4aef-49d1-a7c4-4c8453efe19a","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":69,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"707b8178-3549-42fc-9768-d9757d6cfb73","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":69,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"3bcf9abe-749c-462b-9e57-d6fee2a00f09","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":69,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"deb6edf4-bf1a-4684-90c0-8deedea8edf5","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":69,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"25292c2d-a49a-48dd-a001-0c8194e59e62","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":69,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"2d157b46-fa10-437e-9973-f3e04f43f459","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":69,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"b49b88af-a35b-4890-9454-32c0f787ce26","block_type":"box","text":"foreign securities.","page_number":69,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"0076edb0-1edb-4002-aee5-117673add158","block_type":"box","text":"Risks of Investments in Russia.","page_number":69,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"e55ad335-8824-4f85-9e8e-1d2756d33fef","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":69,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"627dafaa-bfbc-44c4-905f-109b02ce9c3a","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":69,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"63a6051f-ff7c-4086-95a7-49781a8b057c","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":69,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"9f95155b-3621-4232-8b7d-b73b01f82709","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":69,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"f1e3d43e-78da-4249-bf55-eda427d72a14","block_type":"box","text":"The inexperience of the Russian securities market and the limited volume of trading in securities in the market may","page_number":69,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"05752efa-1317-49ee-88d3-c7a1e3f7a7e7","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":69,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"55d92ad3-8cdd-4389-9176-0d08e83f1c2a","block_type":"box","text":"developed markets.","page_number":69,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"d1679800-b779-49a9-a278-0c2ecb3d63da","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":69,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"06c69eeb-ce0f-49e0-a4fa-914649688a62","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":69,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"d3b3215a-3db2-4db7-913a-d09ebfb5a2c4","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":69,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"5a31d843-e9e0-4577-8d1d-d662293dbf4a","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":69,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"5fea20b4-3c0c-4337-866d-55ff75ba6186","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":69,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"62f25ff3-8eeb-4afe-82f0-142767a0cd51","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":69,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"9aceb453-d0d5-46f3-b2fb-100af20244fc","block_type":"box","text":"through the NSD is now based on the records of the NSD and not on the records of the local registrars. Although the","page_number":69,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"a2adca39-35c1-41d6-9544-693da9db7154","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":69,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"b933190b-0d74-4e17-aa5c-2adf578d7027","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":69,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"1345deb9-b1fd-4953-9ea3-e923d73bb70c","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":69,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"eb9faaf4-f42a-4c13-aafb-b1bd4e9746a7","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":69,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"1fa9ecd2-e4a1-4b52-89ff-e9fd57d006e2","block_type":"box","text":"respect to the completion and submission of corporate action elections. To the extent that a Fund suffers a loss","page_number":69,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"1c38b978-be6f-49b2-9ace-08d90dfba34d","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":69,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"17dd14f3-abe9-4677-81d4-216669f9c868","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":69,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"c8914224-9ad4-4dc5-ac20-059cffa5b784","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held on behalf of","page_number":69,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"75ba87e4-89e3-4a73-97fa-d0763199f333","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":69,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"cb4313aa-7243-453f-b26e-ce726fd894a7","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":69,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"d24d9d0c-8f01-4ebd-8054-a6b7e514a660","block_type":"box","text":"did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia launched a large-scale invasion","page_number":69,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"3220f498-2816-46cd-88e3-d98aab62a24c","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":69,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"e81f213d-67fa-4436-baf3-f117af0d58d8","block_type":"box","text":"future market disruptions, including declines in its stock markets and the value of the ruble against the U.S. dollar,","page_number":69,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"36343569-e0cd-4de8-9835-799703f856c8","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":69,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"a30b8a09-5248-4d2e-834f-1b40542c2af5","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":69,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"8596772a-17a2-4827-9c63-03f1c5931704","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":69,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"423aeb59-76ac-4beb-ae3f-67a2cdee4b9a","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":69,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"adf28756-b359-42b1-838d-8739c4b462ea","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":69,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"2f7654d0-1dc2-44bd-876a-c8f3665dfa41","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":69,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"6f0fad0a-0775-49d9-85ef-c5db4853d045","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":69,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"db955adf-ba5b-4868-929a-648fa2331084","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":69,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"f07f8773-4823-44fd-96fa-7ce2c3a278e0","block_type":"box","text":"oil and natural gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":69,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"65b7d53b-a74c-4ead-81d2-4ad9fba896dc","block_type":"box","text":"sectors globally.","page_number":69,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"1f37f08d-d7f1-4744-8c79-ceffeee165cd","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":69,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"0d2d0b0d-fe24-4729-a3fa-3a1c0e68b6ab","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":69,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"e92c3fa3-64d6-4c31-8748-bdbe97231124","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":69,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"75bae711-fc11-4132-9723-ae950077a345","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":69,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"b4208ab3-eeec-4694-87a6-6711e125d103","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":69,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"6850b577-f800-4fe8-a081-2cce94182765","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":69,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"2c6917c6-0125-4f3e-a0b6-6f155080bca6","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":69,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"6b2be285-d95f-4603-aac8-c10565e6f9a7","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":69,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"1be5edc8-085d-4a26-8a55-156ed971a866","block_type":"box","text":"funds invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities","page_number":69,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"a146410d-f2ef-45c0-ae7f-16c18eb145a3","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":69,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"2e5e1bcd-1497-4c2d-89a5-60ee3c3a3867","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":69,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"888077c1-bd8f-45ed-8207-a891f9f3eed5","block_type":"box","text":"II-38","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"54ba18eb-b4aa-4649-b0b8-109077cc963a","block_type":"box","text":"NM1026U-5981128-69/232","page_number":69,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c75e04b0-3386-4ac5-bc46-c85582f15474","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":70,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"e41b9292-5b78-4032-a6d6-7c6dda3b92e6","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":70,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"a847d25e-d84b-448b-8d10-ba248fb13da1","block_type":"box","text":"issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian government at any time,","page_number":70,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"ccda908e-181a-42d4-99aa-3069e9346063","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":70,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"66734279-f9aa-4939-9b73-787a4683bd63","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":70,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"88f0c1f9-6b39-4392-af15-f9f581f94617","block_type":"box","text":"including a limitation on a Fund’s ownership of any single issuer listed on the Saudi Arabian Stock Exchange, which","page_number":70,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"48a47692-4a00-48c3-9559-14572073d3df","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":70,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"1b1df38e-35f2-490b-a5e0-fc574e9bca1e","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":70,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"ce557572-aee2-4385-b656-6eddd21a1fb2","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain or maintain any","page_number":70,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"7a63782e-b1c9-46cf-b363-9521903675d3","block_type":"box","text":"such licenses or approvals and may not be able to buy and sell securities at full value. Major disruptions or","page_number":70,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"ba004493-0b87-472b-80a5-e1cda7de4cb6","block_type":"box","text":"regulatory changes could occur in the Saudi Arabian market, any of which could negatively impact a Fund. These risks","page_number":70,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"3907171c-4a8d-4172-b4de-50cd1055a8c3","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":70,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"6b43c5ac-3051-4a07-87ef-6944ec271574","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":70,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"022e0b1b-1de8-41ec-9d5e-aa4a1582cf2d","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":70,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"15024632-8c43-4550-9492-9075e413d26d","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":70,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"4318139b-2e44-4f2f-ba92-542f3079a722","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":70,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"5c59639e-918d-4578-b651-3d263c25275e","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":70,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"64c44914-3236-4cdf-bb9c-8f7d4f1efad8","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":70,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"1d69b6ec-d39d-44c5-a150-4a11a595d375","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":70,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"a517d482-2a72-4471-aee4-96c40f18ee9c","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":70,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"e71d11b8-a33e-439d-ae73-ea38976b3dda","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":70,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"1f9c1cb3-ba07-4a42-a3cf-e0d085b25f09","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":70,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"c2c7103d-c5d3-4e67-8c5c-7ee8cc762696","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":70,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"5ab3e054-7d51-4210-954c-b8a13e408c7b","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":70,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"199b577f-0809-4b5e-bfc4-2aaf6255bef9","block_type":"box","text":"to an applicable treaty). Saudi Arabia is highly reliant on income from the sale of petroleum and trade with other","page_number":70,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"7e50d9ee-f751-4655-ac4e-96d3667358cf","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":70,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"833b9f2c-310f-4441-a0bb-21cf7cf51d58","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":70,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"06ef1c3e-2a3c-4c01-8457-ed25f9550d53","block_type":"box","text":"impacted.","page_number":70,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"365d6f8c-6243-4c32-8416-34e24c958052","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":70,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"6e138758-f5d9-4e67-afa6-73e5f3fb6163","block_type":"box","text":"many aspects of the private sector. Although liberalization in the wider economy is underway, in many areas it has","page_number":70,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"52eb9c31-e1c5-4ca4-b9af-0e6b9b1777b1","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":70,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"32480c22-9d50-4ed4-bfe7-831539f024c4","block_type":"box","text":"key industries. The situation is exacerbated by the fact that Saudi Arabia is governed by an absolute monarchy. Saudi","page_number":70,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"344674a1-3fef-4f0c-935c-670c297c1a62","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":70,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"f37480a1-51ac-44b4-9f1a-0124b226a2a9","block_type":"box","text":"the Middle East due to geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security,","page_number":70,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"c05100e1-bf1b-4368-8fa5-e977e607b5e5","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":70,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"2cf53c8a-b6d1-4b0d-9323-c1d211747b27","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":70,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"f816b304-db24-47d5-b420-e7ec871918a0","block_type":"box","text":"Arabia, which could affect private sector companies and a Fund, as well as the value of securities in a Fund’s","page_number":70,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"b75ea777-d8d9-4322-b830-db06be225cdf","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":70,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"df131c76-5dfe-4076-ae12-e5e9de007499","block_type":"box","text":"of sanctions, may result in the decline of the value and liquidity of Saudi Arabian securities, a weakening of the Saudi","page_number":70,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"b03216c6-e11e-48c8-97a8-2ac1f687d63b","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":70,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"ed17867f-cc9d-48b6-9e25-46c2c6452433","block_type":"box","text":"on cheap, foreign labor, and changes in the availability of this labor supply could have an adverse effect on the","page_number":70,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"de243e6e-f42b-4fba-9b83-8d05975a58b2","block_type":"box","text":"economy.","page_number":70,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"fe602a19-cd27-40d6-b2ff-6aac1cdc37a4","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a result,","page_number":70,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"3e922f10-1fb7-4af1-bcc5-fa0809ba0575","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":70,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"18075dc2-5752-4ed6-ac2d-15f4bdb53f08","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":70,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"70fb3a4d-684a-43a3-acc4-b02be378135f","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":70,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"9b9ec404-83ca-473b-b141-fc7b6171e613","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":70,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"46cb62ca-ef65-4473-b239-2366885410d1","block_type":"box","text":"infrequent trading may adversely affect the pricing of these securities and a Fund’s ability to sell these securities in","page_number":70,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"7281c343-2c26-4e5e-9cc5-a2fbd6739425","block_type":"box","text":"the future. Current regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":70,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"fdb85b92-3a9a-444b-a34b-1d3162c42d09","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a Fund than is","page_number":70,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"2a550242-10cd-4271-a89f-30518106811c","block_type":"box","text":"typically the case for investment managers.","page_number":70,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"43c606c8-ab5b-406f-8abf-22cf01e01f23","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":70,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"2ece443c-0483-4a1d-9643-6e746170a151","block_type":"box","text":"instability, and there remains the possibility that the stability will not hold in the future or that instability in the larger","page_number":70,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"109c4782-e906-4806-a61d-597e5adba86e","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":70,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"cb6f0413-34c7-4430-bd8d-87ee33890baf","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":70,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"3bb6d4e2-29a9-45bd-951e-e94524ed4eae","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":70,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"4177ac2b-9111-465d-92c2-cfde2a448f0b","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":70,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"278f7058-878a-4a25-8883-dbe2b1b02059","block_type":"box","text":"II-39","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"321c7380-a418-4d2a-8992-e62590554410","block_type":"box","text":"NM1026U-5981128-70/232","page_number":70,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0ef59887-7d65-4a73-83c1-b3fe344091ad","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S. is a","page_number":71,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"1dd3c2fc-5de7-48db-adb8-cbea0926950d","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":71,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"e795711f-6b8d-460d-8899-7bb655a54eff","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":71,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"1f719bd7-afb3-4be7-bd39-4308bc6c0277","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":71,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"b516eac3-1b0d-494a-8dc7-e6ab5776919a","block_type":"box","text":"an economic slowdown in the U.S. may have a material adverse effect on the economic conditions of Saudi Arabia","page_number":71,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"a8b5d6c8-223b-4673-8068-a1707bf843d2","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":71,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"7685139a-aa8e-47fb-aeab-fc8ff61888f7","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":71,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"f24516e9-39a6-45cb-bd2d-a4bbbe90dd38","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":71,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"426b00c0-a7ee-415e-a3e0-4fc92fb57d7d","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":71,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"da675787-9c21-4ac0-b984-5a718bc0f47c","block_type":"box","text":"and/or embargoes imposed by the U.S. Government and the United Nations and/or countries identified by the U.S.","page_number":71,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"dddfd81e-75b9-4828-adbb-714991028046","block_type":"box","text":"Government as state sponsors of terrorism. As a result, an issuer may sustain damage to its reputation if it is","page_number":71,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"8048a495-f940-4e18-87e1-37a0cff31461","block_type":"box","text":"identified as an issuer which operates in, or has dealings with, such countries. A Fund, as an investor in such issuers","page_number":71,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"7d5a9676-d293-4f32-a30e-1a66c31b34a3","block_type":"box","text":"will be indirectly subject to those risks.","page_number":71,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"f35af3d1-2127-4efb-9ff9-af667c9ad8f1","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":71,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"c1cd50fd-4aec-49f9-9a6a-aac2278eb0a2","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":71,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"c3968b23-1b33-4d29-930c-c696c560978a","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":71,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"f1a983fa-313a-43da-aa0e-adddd037cfac","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":71,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"d5d352b7-0810-416d-80d8-5e3fc3e91429","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":71,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"abb849b2-5654-4e43-8c50-2c63239b2717","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":71,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"09864a52-25de-4376-8541-678d0b1a863f","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":71,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"58fe1d94-444e-404b-affa-6a0b78c833d6","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":71,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"056943bb-eb65-4f25-b7ec-8751f1f9cf94","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":71,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"8cf71f08-a2a4-4c84-b2fc-0e8b0f89dbbe","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":71,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"fa3aa9c1-eeeb-4e2d-b898-93fe298a3708","block_type":"box","text":"governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions, which consist of asset freezes","page_number":71,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"a8bf51ba-d73c-4d25-9cb0-fd10d0a5c1d3","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":71,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"065a3c58-b0e3-41c0-8f9d-0ae0914ea8f3","block_type":"box","text":"government. The U.S. could also institute broader sanctions on Venezuela. The U.S. has also taken military action","page_number":71,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"3c079c71-9622-4604-9988-50be7d2211d8","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":71,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"ac8c7406-d0a5-49f9-8ea6-e537eddb8db6","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":71,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"aec4698a-2fa6-4539-b6cf-292e5907c897","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":71,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"248eb1a4-e5b7-42c5-a9ab-bf3788686fe6","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions against Venezuela","page_number":71,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"7a1b540d-3482-4fc1-ba1d-e03c9e070538","block_type":"box","text":"may in the future be imposed by the U.S. or other countries. These factors, among others, can have a negative","page_number":71,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"a1c7f2ac-6ed3-4b8d-94d8-74101eec5901","block_type":"box","text":"impact on a Fund’s investments.","page_number":71,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"c3c71653-23a4-47c8-b1c3-2d4f3162bfc7","block_type":"box","text":"Brady Bonds.","page_number":71,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"32030ab9-55ea-48da-ba00-71bf3073299f","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":71,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"8a58fc41-41e7-4837-b01b-202672c326b0","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":71,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"484d0e80-5e90-49ee-b82f-dc76003ade49","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":71,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"ce1b505a-9ff2-4ea5-9c26-777171d9d62d","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":71,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"24c8b892-8dc2-478b-8e0f-10202f96e6d6","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":71,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"f29786cf-7abb-4c83-9a59-5d31584cd8e8","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":71,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"0c8e12c2-fa96-4f25-9e66-76b236255a75","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":71,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"62991632-e591-4213-b135-2bf874b897e4","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":71,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"700ee023-dd09-4f71-a676-f54ca049d7cd","block_type":"box","text":"Venezuela.","page_number":71,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"c8f38d95-715a-4a7f-bb04-3ea87ccb93d3","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":71,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"39f37b4e-07d1-476b-87a5-cbee4784478d","block_type":"box","text":"and are actively traded in the OTC secondary market. Brady Bonds are not considered to be U.S. Government","page_number":71,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"9b3ff5f0-2f34-4fc5-88fc-193876c9a9b7","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":71,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"e8981636-0831-44d5-8e90-94c412ee0a9f","block_type":"box","text":"discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero-coupon bonds having the","page_number":71,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"d994a873-60bd-45bb-b5e1-05d6a7b177d0","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":71,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"c27378d0-cebe-4f34-88e4-4c493dabd4b0","block_type":"box","text":"year or longer rolling-forward basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal","page_number":71,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"35891c69-0511-42f5-a8ba-75586c0d822c","block_type":"box","text":"to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":71,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"8d413be4-1bdb-44c7-975c-6188b5671307","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":71,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"cf299ba0-54e3-4bb5-bbd6-a448b726fcca","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":71,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"2eb2919f-ae15-44e6-b170-4da58bedf251","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":71,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"546cb538-9c3c-49bf-8bc6-6c7002e3ac65","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":71,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"d5fa940e-8e8f-41a9-a91e-b26db0a847ed","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":71,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"2a9f8070-5e78-4bc9-aed0-ba2715f7433d","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":71,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"0842396c-f0e7-4859-88f3-bf9e0955610a","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":71,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"ea3d32bf-f910-4dee-b796-e8f37ffe8cdb","block_type":"box","text":"the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady","page_number":71,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"4dedea5d-7963-4ded-ba88-0ff209ee178b","block_type":"box","text":"II-40","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5362715f-aaab-4480-94f6-4b25c355495a","block_type":"box","text":"NM1026U-5981128-71/232","page_number":71,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"30b21c49-5f0d-442c-a47e-c3d026627c53","block_type":"box","text":"Bonds. In light of the residual risk of Brady Bonds and, among other factors, the history of defaults, investments in","page_number":72,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"c25935b9-6161-4c25-bd04-ef75a456ecab","block_type":"box","text":"Brady Bonds are considered speculative. There can be no assurance that Brady Bonds in which the Funds may invest","page_number":72,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"d7cae9d5-d503-4c8e-9ce0-f5edc1664d54","block_type":"box","text":"will not be subject to restructuring arrangements or to requests for new credit, which may cause the Funds to suffer a","page_number":72,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"d69c5580-7839-48b4-a1f0-ece53fa10a7f","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":72,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"94a24bc9-4f82-44da-9e90-a9ae954881d2","block_type":"box","text":"China Investments Risk.","page_number":72,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"813b96db-5042-448d-b77b-e3cd3a00e762","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":72,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"282e622d-7edc-4911-8454-a4aa6054434c","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":72,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"815aff49-9bfd-41d3-8ef5-980d6f40463a","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":72,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"4fd74aee-ce36-4b38-9333-d74c8ea5c82a","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":72,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"0fcf1e8d-e3ec-4da2-8e13-cc8547aa257f","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":72,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"65cb6ca9-4b7b-4885-b902-e1a15fab5988","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":72,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"95a6c45e-861c-43b7-bfe4-a9949b5d28ab","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":72,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"6847fc43-5229-431b-b676-099775b461a1","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":72,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"c7203152-9b15-4792-9d7c-9acb4c6cb48e","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":72,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"be82339f-bf6a-40d3-94a1-0a6ece6bf129","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":72,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"9924ebb9-ac43-405b-b8a1-3772632a3ee6","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":72,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"8b04c07e-57e4-45fe-806e-f7a86f9f1549","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":72,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"da8c866c-ec1d-4397-afe2-ae62b258137c","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":72,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"e6c74b4d-55a4-419f-a614-07e1f1f63afa","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":72,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"8e1ebcd6-ee44-491e-a6e4-89439eb3560e","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":72,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"e11e25ef-2db2-4302-a56a-c6f4e6cc9389","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":72,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"98f52a5b-a718-42cc-bb03-1d1596d9c85b","block_type":"box","text":"hostility between China and Taiwan would likely have a significant adverse impact on the value of the Fund’s","page_number":72,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"5aaaf726-6def-4dc2-85f5-e3f854d9d41e","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":72,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"ba8b67ef-ea39-4822-8623-9ba565d27857","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":72,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"7ce9bbf7-4143-4fe2-8674-6fe0a17e37a3","block_type":"box","text":"Frictions between China and the Philippines in the South China Sea pose a risk of escalation potentially leading to","page_number":72,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"39739203-8bca-4d29-96ba-9f7074dda1cf","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":72,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"8959ff76-9d34-4853-8927-d20b2c08c8f1","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":72,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"9c8c6db0-703d-4d57-843b-6798567d3049","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":72,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"615292b2-bed8-4a0f-9b14-81cffa99e7e8","block_type":"box","text":"companies, may impact China’s economy and Chinese issuers of securities in which a Fund invests. China could be","page_number":72,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"1b05bbe1-ed5d-4fdd-bc01-54a8caecdb77","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":72,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"d86e796a-f16e-4173-9cfc-d6872b1dc892","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":72,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"ef124c3b-ff03-4b65-a4db-a139affe9efa","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":72,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"75af2775-3e11-4608-980d-b5841f3dd341","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":72,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"3dc6f478-8278-4552-95ac-4c5df4c0fdfa","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":72,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"4e410178-4c35-44da-ace6-b18e35f2506b","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":72,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"869d7fe3-cd5e-4d93-b6c3-1f21238fe842","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":72,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"af278dc3-fad0-40a2-9166-db0500617197","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":72,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"95f3f998-1f11-4177-abdd-f56a22de5c9b","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":72,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"e3086c85-a1dd-4923-8a2e-7290a831a580","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":72,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"00d94d50-aca8-4944-9322-ded47c73c17d","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":72,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"678c3191-2683-4e0d-9b62-d3507d66625c","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":72,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"a35aac1a-3c54-468f-8bbb-6e7730514df3","block_type":"box","text":"market price and liquidity of these stocks, and may have an unpredictable impact on the investment activities of the","page_number":72,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"0e536b0d-fe07-4a52-abac-fadd777142fe","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":72,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"092e290f-8400-43e5-9dcb-dafaafadb56e","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":72,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"928bda44-e1d0-4f1e-811a-29513451f944","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":72,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"0a216b94-4a74-40f3-a786-568c7d4711e8","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":72,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"58d656a4-6abe-4455-baa7-73372afdaaa7","block_type":"box","text":"Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulation as are U.S.","page_number":72,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"0a4d1a01-88ca-4c62-b88a-a15983f1b532","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":72,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"3dfcbd4e-8037-45ca-9ea9-7825997be272","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":72,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"705dcf30-983b-4a68-99c6-74992da9b668","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":72,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"c72c5290-36d5-4b23-926b-402e33bd6bad","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":72,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"7f9d6cc0-20dd-4256-a8da-37f6f7770fdc","block_type":"box","text":"the relevant regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":72,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"33b4bd5c-d054-40b4-8941-37729f925167","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":72,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"27dfe2ce-2aa9-4b42-ade7-bd3531ceca27","block_type":"box","text":"there is a risk that a Fund may not be recognized as the owner of securities that are held on behalf of the Fund by a","page_number":72,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"5ed174c9-6bb8-4a9e-9b7a-75cf68fae091","block_type":"box","text":"sub-custodian.","page_number":72,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"44e9bd87-d0dc-4737-a87b-9f1300f49d41","block_type":"box","text":"II-41","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d6bca842-d9e6-4702-bd5b-58847016562d","block_type":"box","text":"NM1026U-5981128-72/232","page_number":72,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4bc51d31-4d64-4e4d-84ec-952c58f71696","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":73,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"33a39c38-84d5-4f7e-b317-9b9904a1fee9","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":73,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"8fb5405d-2aab-4bc0-a978-bdfd8ae7e578","block_type":"box","text":"on investor protection considerations.","page_number":73,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"f193c645-6039-4f48-a5dd-87c2ef4be220","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":73,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"c82b65af-de82-4e34-87ed-9b812382f98e","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":73,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"afcde8c9-0321-4ec5-adcc-e2b424ce2622","block_type":"box","text":"for compliance with U.S. law and professional standards. On August 26, 2022, the PCAOB signed a Statement of","page_number":73,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"94a13b9d-c319-403b-afc2-9e8f7bbd8f80","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":73,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"e55d97cd-1ef7-40ec-9b77-726289cb3277","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":73,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"2ba8eea0-0401-493e-920f-560ba6e49f12","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":73,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"f408df41-dfc7-4c1e-91c0-de29f39a3045","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":73,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"9c6e094c-d502-444f-98b9-77831c1ee032","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":73,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"27738d4d-29b1-44fd-b7a5-03ce936bc194","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":73,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"dc14b328-1020-44e7-b1f1-a28c09dee430","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":73,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"b7a02dd8-5381-49ac-88a1-60afd91b60d7","block_type":"box","text":"2020, which requires that the PCAOB be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer,","page_number":73,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"0c448e63-5f69-468b-856d-b9ead70332f6","block_type":"box","text":"Chinese companies with securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the","page_number":73,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"e2c25b83-af9e-415e-a6fe-c3270b39d0e8","block_type":"box","text":"accounting firm.","page_number":73,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"7bdb3f8e-0021-453b-87bc-9013f0c39685","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":73,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"862e4182-194e-44fe-9f1c-29f407eade46","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":73,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"bfedcfc4-3f8c-4b28-9037-eafca9a60bc3","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":73,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"594286ca-48e8-40c0-ae8f-dc373e018f53","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":73,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"42ff1832-67b2-4c85-903d-841a6bef3eed","block_type":"box","text":"capital, as well as by the application to the Funds of any restrictions on investments. Investing in entities either in, or","page_number":73,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"a367cef7-a1b9-4a8b-96cc-23e22300e35e","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":73,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"d7d7f9b7-6e02-4300-b03d-e5e236283091","block_type":"box","text":"seek local government approvals or take other actions, each of which may involve additional costs and delays to the","page_number":73,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"40c6a7e8-d7d8-4084-9755-7ff139898c54","block_type":"box","text":"Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and RMB, as well as in","page_number":73,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"35150b86-aece-418f-a4db-137faec57133","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":73,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"4e035e8b-8271-4aeb-b9f9-8b4d47a67236","block_type":"box","text":"RMB (“CNH”).","page_number":73,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"33fae445-fbe0-4499-a906-e830203a7d94","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their structure as a","page_number":73,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"217cf935-941e-4568-a996-071c645a4bb1","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":73,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"bfd5fc95-857c-4ca4-8b45-1bc0e00a2ec3","block_type":"box","text":"in another jurisdiction to issue stock to public shareholders. When a VIE structure is used by a Chinese company to","page_number":73,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"ccc1587d-fe36-4086-9e9d-023df10d2c9b","block_type":"box","text":"list its stock in the U.S., instead of owning the equity securities of the Chinese company, the U.S.-listed shell","page_number":73,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"e4825ff7-6565-4054-bb7c-f9990731db8b","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":73,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"0fea4238-0a29-4c0d-acd2-41c042de8c86","block_type":"box","text":"contracts provide the U.S.-listed shell company with only economic exposure to the Chinese company and do not","page_number":73,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"00fa75be-b32b-456b-bbf0-0fcdfca4dfca","block_type":"box","text":"represent equity ownership in the operating company.","page_number":73,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"76b846e5-e971-4cba-8089-02349c77cfbb","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have not been","page_number":73,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"2acaaddc-febe-4c8d-893b-04e18ea9a07a","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":73,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"e4e5be48-46c8-4bf9-aee7-61758cd512b0","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":73,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"bcc4fd02-a5a7-4f1b-bca8-19849d52e624","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":73,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"5c9b3788-2156-46ac-b6be-17d2dfffa945","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":73,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"ff3a726c-ae0d-4b7e-9631-15df5afeb023","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":73,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"9b220d0d-5b75-4e86-b0b4-b8f5a813f5b0","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":73,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"fe91166b-7f90-4196-a94c-7e76fa523307","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":73,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"1b91e74c-4ee7-4832-b613-6081689f0e6e","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":73,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"e4ee80dd-746a-42e1-8fd5-282462185cbf","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":73,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"97973ace-aa39-4f83-a942-8e9d09abb96e","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":73,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"16e6a0c5-d135-4c3e-b698-e72b40101846","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":73,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"b0678ce7-66fa-4f81-85d3-cd2e35a2ad4e","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":73,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"6f82847d-a385-41f8-b73b-33ec76f30da7","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":73,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"219a5420-6fb6-4a84-b971-8742a7447b6b","block_type":"box","text":"losses on its investments through a VIE structure with little or no recourse available. Any change in the operations of","page_number":73,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"b9e3391f-cae9-495d-b20a-5ce7445080f4","block_type":"box","text":"entities in a VIE structure, the status of VIE contractual arrangements or the legal or regulatory environment in China,","page_number":73,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"b596f253-30e3-42b7-b535-5d4439a6ac51","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":73,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"1be0030f-c848-4c79-a673-d79fc3742464","block_type":"box","text":"losses to a Fund.","page_number":73,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"5e267bf2-4eb6-4d02-b136-cdd09be4a650","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":73,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"e6008aaa-88a9-4a83-891e-c3f0c57d4099","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":73,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"6858be98-4560-4cdd-bd6c-4ee0fa1c6cb7","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":73,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"26d7a2c3-2f77-46d1-a9a5-42e6b1503566","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":73,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"31ad16b1-f809-441a-a7d7-25a0bbfcd0c3","block_type":"box","text":"II-42","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"17d7df62-b724-4233-bd5d-64b909c303e2","block_type":"box","text":"NM1026U-5981128-73/232","page_number":73,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5a77ce74-5266-4519-b7a1-3af8c16d6404","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":74,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"da641d84-f0c8-480b-a993-640e05b441b0","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":74,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"5f07b695-8cee-4feb-8de0-50caa91b3fd1","block_type":"box","text":"and the United States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":74,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"ead54b31-9426-45b8-bff7-dc9e7ab5aef2","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":74,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"29bfc6c3-4a9b-430f-8e68-45b0d3745dbc","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":74,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"d9224a50-b663-45c5-8707-bf986eec88c5","block_type":"box","text":"subject to economic or trade restrictions imposed by the U.S. or other governments due to national security, human","page_number":74,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"33bce6b3-9231-41aa-94a0-82cee318ca5b","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":74,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"67b2f905-32d5-4bac-b808-c535675bc610","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":74,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"3f716276-1c2e-4399-95ee-ff9baefbe04c","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":74,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"f19e4a66-0f72-4a1b-93c1-ebd71a05ce27","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":74,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"5851ee9b-afc0-4ef7-aaf8-d8ef271a41c1","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":74,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"6dba6312-c672-4b27-a624-40f7183c89af","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":74,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"ac26cfe0-8085-461a-a786-c3d09e542eb6","block_type":"box","text":"restrictions) imposed by the U.S. or other governments due to national security, human rights or other concerns of","page_number":74,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"fbab0381-dddf-4df0-904c-5cd9aa360219","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":74,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"76ac67be-5b4f-4fe2-996a-b1c30840fbbf","block_type":"box","text":"such companies.","page_number":74,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"a027dff8-da98-4284-ac10-81c7f86143d3","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":74,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"c3acc784-8787-471a-a081-67cf09de7035","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":74,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"987da33d-6670-4b48-b4b8-0d5455bc7e40","block_type":"box","text":"tax authorities are not as consistent and transparent as those of more developed nations, and may vary over time","page_number":74,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"25d23086-6385-4785-9f91-1d4a005b3c98","block_type":"box","text":"and from region to region. The application and enforcement of PRC tax rules could have a significant adverse effect","page_number":74,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"cb8a7694-2fa9-4c6c-a7cf-0ee5c6a8d5b7","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":74,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"0d5c4f5f-906f-4506-9cd2-d0599bdb6e81","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":74,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"462e6197-b555-4961-b4b3-5b8874b91f9c","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":74,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"cb75ffee-0712-4d1a-a979-3d95bc779cff","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":74,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"9cf8b43a-be50-46d3-9100-efeaf940ee6b","block_type":"box","text":"standards.","page_number":74,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"0d775183-e1ff-4363-88c6-7a1e00e34e44","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":74,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"b03338de-226d-4dc8-a89a-109929713719","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":74,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"0e49cd80-45f7-405e-acec-ed45f126777c","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":74,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"5882b5a3-9881-48f0-a919-bce0615f2d9d","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":74,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"a1baa113-1e1c-402a-9216-c17600eacdb9","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":74,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"f248f6f2-3361-4870-8dac-879aaa4b45c8","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":74,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"26ece53b-88f5-4087-a082-d7f731dfc483","block_type":"box","text":"General","page_number":74,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"db3f3e31-6484-4079-a2e7-9d1c0b31b6c9","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":74,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"57a33e40-a793-4f54-b2b1-9b6d5f9fa12d","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":74,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"eb4540f0-d185-4114-9564-87948533b19b","block_type":"box","text":"Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the SSE and SZSE is not permitted, other","page_number":74,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"3c2a2f7d-3fb0-4853-a3e6-742474464e2f","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":74,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"06dfbf5a-f542-4930-873c-18c7da5d590d","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":74,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"d37edd1b-35ea-4529-8d86-0626859e7e2c","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":74,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"9675005c-bb36-46c2-a9e0-25ad751be0fc","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":74,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"464c19b2-9e43-47ab-9ae6-5cdd0bb708db","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":74,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"b25156f2-b5f1-408f-8b77-507aff2e5cc5","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":74,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"901f5293-0088-4e4b-823b-d6bd6e4d87cc","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":74,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"9bf810d8-b10a-4268-be86-fae391031bf8","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":74,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"c2fc5ca3-f441-4f34-adfe-bf35469b0ab6","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on each market","page_number":74,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"c40828d1-6044-4a87-bd7e-7ef9b7c7a7a5","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":74,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"ecea5ce3-9ab8-4d22-943d-4485775fb1b0","block_type":"box","text":"the SSE or SZSE, as applicable, would be effectuated through its Hong Kong broker and a securities trading service","page_number":74,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"eb5cec6c-8772-4d24-ad0e-7c936a04af07","block_type":"box","text":"company established by SEHK.","page_number":74,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"4a63b84e-6c64-4c09-9b9a-40d8a6fa55d9","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":74,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"e610ed42-7b17-4e67-9c4d-ce1e3c56cee9","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":74,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"394f6cd1-de79-42ca-8808-8faa6eb94491","block_type":"box","text":"buy orders for Stock Connect Securities be rejected once the daily quota is exceeded (although a Fund will be","page_number":74,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"8e1a686c-ecdb-4a3d-82c4-5a8b5c70e076","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":74,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"fae1fb01-688c-432f-9fa5-3386927e988b","block_type":"box","text":"investing in Stock Connect Securities on a timely basis, which could affect the Fund’s ability to effectively pursue its","page_number":74,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"56f04bb8-4cff-4f68-bc8b-3afc9f226089","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":74,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"acc09dce-b51e-4734-abed-b38cea84ad00","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":74,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"b2db48c4-425e-4429-a711-2a2d7509abd6","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":74,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"b89d0ea6-d9f7-47c8-bd2a-098e522e3580","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":74,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"65b6fa5a-012a-42c1-bb2e-4e0d0282122d","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":74,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"040464fc-4b5b-4494-9813-74450508bdf5","block_type":"box","text":"II-43","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"75ba35e9-c275-425a-8566-61e3ae9c4e46","block_type":"box","text":"NM1026U-5981128-74/232","page_number":74,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f5a467ac-0321-4c80-a9aa-6e7f03ffa00d","block_type":"box","text":"Securities in the investor’s account before the market opens on that day. If there are insufficient Stock Connect","page_number":75,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"b548dfc6-b0d0-4a6b-b284-6a2bb90fd3fd","block_type":"box","text":"Securities in the investor’s account, the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries","page_number":75,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"c62c0dd8-0a3e-4261-8c21-2c7146fdc6b6","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":75,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"8a6bd3df-ea78-409e-9c53-a7264397763b","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":75,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"a3f2f4e1-bff5-4bce-9b6e-8dd3f66a8f01","block_type":"box","text":"i.e.","page_number":75,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"69d5ff94-ab5b-47a5-8da1-b2d2a04b8ef6","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":75,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"daab67fd-9253-45bc-87bc-c5360ebf8236","block_type":"box","text":"must be designated as eligible to be traded under a Stock Connect, those shares may also lose such designation,","page_number":75,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"b2013bc8-f07b-43a3-aaee-08f0d8364453","block_type":"box","text":"and if this occurs, such shares may be sold but cannot be purchased through a Stock Connect. In addition, Stock","page_number":75,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"f21022fb-df2b-4f78-81cb-f751cd3f6dac","block_type":"box","text":"Connects will only operate on days when both the Chinese and Hong Kong markets are open for trading, and banking","page_number":75,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"1b114a06-3eeb-4915-a2ee-c820873ea153","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":75,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"723f3167-0006-438e-99d3-f5491705d1a6","block_type":"box","text":"Connect Securities through a Stock Connect may subject a Fund to a risk of price fluctuations on days when the","page_number":75,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"a79706ab-06da-400d-b61c-c3bff62c8154","block_type":"box","text":"Chinese market is open, but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on","page_number":75,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"77750970-0031-4e4d-bfda-fd35dc798765","block_type":"box","text":"the Stock Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will only","page_number":75,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"ca58ce7a-7470-4409-bb21-1884af8320a4","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":75,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"321552e8-3b1e-4697-9684-408fd05fc524","block_type":"box","text":"must be settled in RMB, investors must have timely access to a reliable supply of offshore RMB, which cannot be","page_number":75,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"0331251e-f5c5-46b8-8277-81479758418c","block_type":"box","text":"guaranteed. There is also no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could","page_number":75,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"0a17121f-2100-4afe-b217-b3e970caf93b","block_type":"box","text":"adversely affect a Fund’s investments. If a Fund holds a class of shares denominated in a local currency other than","page_number":75,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"30dc2029-3bdc-4d4b-8f17-2cdcabd68736","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":75,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"37964ade-34bd-41a0-81ec-e9974614c935","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":75,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"695f96c5-8d51-4268-ae35-6bdb7c0decbe","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":75,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"4593baa9-a57e-4d64-ab66-b01eab7ad863","block_type":"box","text":"as nominee on behalf of investors. The precise nature and rights of a Fund as the beneficial owner of the SSE","page_number":75,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"cee19cb5-7e1f-4630-9ce4-da2b24a287b9","block_type":"box","text":"Securities or SZSE Securities through HKSCC as nominee is not well defined under the PRC laws. There is a lack of a","page_number":75,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"b3529e09-22c6-49da-88d0-312c042358b6","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":75,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"254fddfe-7710-4425-8f4d-cb87681d4786","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":75,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"10b57ca6-a2a9-4386-a5aa-672588c8c20c","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":75,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"93a73de2-f7c7-45e2-bd01-34fa732da58b","block_type":"box","text":"HKSCC becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or SZSE","page_number":75,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"12be1523-a574-44ad-8024-a2afeee6ff68","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":75,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"deddabd1-b826-4de7-a630-ab70f56820cf","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":75,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"4554db8a-874f-4e2a-b52f-fc9f1663d5cb","block_type":"box","text":"proprietary interests in the SSE Securities or SZSE Securities held in its omnibus stock account in the CSDCC, the","page_number":75,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"adce47f5-c1d1-4080-8ca3-c0d18e45fb87","block_type":"box","text":"CSDCC as the share registrar for SSE- or SZSE-listed companies will still treat HKSCC as one of the shareholders","page_number":75,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"7afb4c4b-0fb4-454a-a3e2-7ff15230352b","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":75,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"ff4f00f5-8302-4ba7-85ce-cc3364ef3dfa","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":75,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"c9938e19-e521-4dbd-acaa-68cc32e21ba7","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":75,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"4a8300ac-fea7-463c-9eb5-97f2e68a4f53","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":75,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"3739e056-6d04-4e42-895f-a200af87d80b","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":75,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"8fd6360c-874a-4490-849a-4b308f35c184","block_type":"box","text":"HKSCC, who will then submit a combined single voting instruction to the relevant SSE- or SZSE-listed company. As a","page_number":75,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"ab768216-389c-484b-9b63-936b1b094e8e","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":75,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"e32e8e17-7585-462a-b09c-047f587c43ed","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":75,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"0c7aa8d4-ac2b-4182-9f53-d8adc5e7b13e","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":75,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"10aafe12-3584-46b6-9b05-c2acc9183356","block_type":"box","text":"to exchange-traded products in Hong Kong. For defaults occurring on or after January 1, 2020, Hong Kong’s","page_number":75,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"50b37208-3b07-432b-b632-6f065b34d35e","block_type":"box","text":"Investor Compensation Fund covers investors’ losses in relation to securities (i) that are traded on the SSE or the","page_number":75,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"3475898e-a190-483d-9d5d-148e647c083b","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":75,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"58d9a9d5-600e-44a1-bd5c-f7d12873e1c4","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":75,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"35657b60-4cd5-4189-914d-8b9341ecb71e","block_type":"box","text":"brokers in Hong Kong but not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the","page_number":75,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"ad39ce74-bc40-4e32-87ef-e154dd84f4b3","block_type":"box","text":"PRC.","page_number":75,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"d2fca07e-66b4-44ad-b31b-2479f0e41500","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":75,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"474adff3-66bb-405f-bfeb-49f7e80fa6d5","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":75,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"b7073da8-66fd-417d-8257-88acad2500db","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":75,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"eb405a02-4423-4bb7-b5b7-f4604b8fcd4c","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":75,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"e1d30408-c59f-4c37-8254-13a793830fc9","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":75,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"87f32810-077d-41a5-aa29-14183049aa8f","block_type":"box","text":"continue to be adapted to changes and developments in both markets. In the event that the relevant systems fail to","page_number":75,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"8fc3fadf-45a5-4a23-ad4b-f4696ddc188b","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":75,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"c87ff369-d230-4bb5-baf9-bd5571750280","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":75,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"5a71a85b-09f5-4359-ac81-5602b5d85086","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":75,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"df53e839-030c-4890-a969-eaed019f0d86","block_type":"box","text":"New or revised regulations may be issued from time to time by the regulators and stock exchanges in China and","page_number":75,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"4ab1a827-cf88-491a-893e-927ecb4bdc6a","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":75,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"6cd8937d-d898-4d00-b748-8d95ce5a4c2d","block_type":"box","text":"addition, there can be no assurance that Stock Connect will not be discontinued. A Fund may be adversely affected","page_number":75,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"1d8913c0-05b9-4e31-aef2-06a910845290","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":75,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"b97bfec7-ef94-4a95-ab2d-bb56c1a0d91b","block_type":"box","text":"II-44","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"12aaaf7d-4b81-4c32-b9dc-8b93f72c9940","block_type":"box","text":"NM1026U-5981128-75/232","page_number":75,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"91fa9470-0e01-4acd-9d22-61d8a063d4c3","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the relevant systems","page_number":76,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"0f3da8ba-0b1f-4307-bb31-7e53019c881f","block_type":"box","text":"fail to function properly, trading in both markets through Stock Connects could be disrupted and a Fund’s ability to","page_number":76,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"68571698-6b09-47c5-a7b2-e00ecd7d0ae0","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":76,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"aafb5b4a-8b4c-4138-b7dc-56204a1e6863","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":76,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"7f2ffde1-e42e-4a54-b9df-bdd3a824bfef","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":76,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"df0a1cc5-4ccd-4c46-8f41-d50211f27ab7","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":76,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"53364351-6980-4023-b215-4d9e7e3b2233","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":76,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"f53e77fe-e1c3-4cd0-a29c-62384b46ffad","block_type":"box","text":"Suspension Risk.","page_number":76,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"d07d6950-240b-498c-98e1-ef442b6390da","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":76,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"054037b5-9553-445f-a013-fc37dd567a11","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":76,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"f46fca4d-26c0-4e0c-b4fa-953db0ac1b1f","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":76,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"9aabf5ef-bc09-4736-93d2-379afed2c154","block_type":"box","text":"global equity markets. Each of the SEHK, SSE and SZSE reserves the right to suspend trading of SSE Securities and","page_number":76,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"42542ad2-37a2-49a0-bb31-a44cb6abfbba","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":76,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"632adfdf-4008-4528-a83c-f24c688fd1cc","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":76,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"32589825-794f-4a6c-a93b-db803b9f0409","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":76,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"f4d5eb64-80f9-46fa-b850-3bdea3735a7f","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":76,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"01c73f26-6d56-4b82-9afe-ea8f1b2a3fa1","block_type":"box","text":"Connect is effected, the Fund’s ability to access the PRC market will be adversely affected. Trading suspensions in","page_number":76,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"4081b2dc-fa1c-422c-a793-f8c13405898b","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":76,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"5dbe99b2-b54b-4525-930c-15472752f380","block_type":"box","text":"daily price limit, generally set at 10%, of the amount of fluctuation permitted in the prices of the relevant SSE","page_number":76,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"4c07435e-7dab-4917-bcae-d396b583437c","block_type":"box","text":"Securities and SZSE Securities during a single trading day. The daily price limit refers to price movements only and","page_number":76,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"0f306094-3768-49b1-9859-0c91ed5ceedd","block_type":"box","text":"does not restrict trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":76,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"78623026-9b5b-4b82-9ce4-c005630b469b","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":76,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"9fd5a4d4-f66f-4560-b898-bbef62384980","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":76,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"4113e054-d282-48a2-bb78-b7bf3d93e651","block_type":"box","text":"A Fund may invest directly in the","page_number":76,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"045aa6d7-320c-45b6-97e2-80631f3d7914","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":76,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"0b20d2d7-9f62-4598-a790-dda2716f68dd","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":76,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"c5c9c3ed-fb2c-4ff6-bb5a-9c3ff8122d0c","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":76,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"1ea548e3-c011-4ab3-9e10-fdf3fa025756","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":76,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"587d2525-673a-44e8-94d5-2f945a85f33a","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":76,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"ff0917e8-8d2f-47e5-a282-b0a6008abcae","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the China Interbank","page_number":76,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"afd886ff-5164-44a1-86b5-76cdd31b7b3d","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":76,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"b1839140-5367-4671-842a-e330eaffcf48","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":76,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"8a90d328-fa74-483f-8aec-d824f735c738","block_type":"box","text":"turn transmit their requests for quotation to CFETS. CFETS will send the requests for quotation to a number of","page_number":76,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"995c591f-f09e-4ac9-9747-531243568829","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":76,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"da3b553b-b6d6-4584-8af7-8489bfadb241","block_type":"box","text":"The approved onshore dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their","page_number":76,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"481dddca-77e3-4b59-9753-3990a6704036","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":76,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"33d13363-90e7-4260-9d25-70286c6315f9","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":76,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"16815d0a-40e9-43f2-b84d-15187ee3cc78","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":76,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"f3105ba5-2c1f-409f-801e-5104f71c56b2","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":76,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"450541e8-cb10-4bd8-aad1-8f97550d9429","block_type":"box","text":"as onshore custodians and clearing institutions in the PRC. Under the settlement link, CDCC or SCH will effect gross","page_number":76,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"cfecf227-2bad-40e0-9549-ade4fc23f04e","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":76,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"e705ae9d-9167-474e-81ce-609f7de840aa","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":76,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"b5cb75fd-d892-4496-82e7-2985058fed1a","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":76,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"3f53f76b-12c0-4e3b-b9c6-802b1e9705ab","block_type":"box","text":"carried out simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":76,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"30fc19cf-feb1-4790-8215-97c071e7a31c","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":76,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"3909ed0b-b7f3-43c0-8339-48d5acf88be9","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":76,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"da429090-2bc9-4870-901d-b09fee58fcfa","block_type":"box","text":"i.e.","page_number":76,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"ea357311-aa23-4082-b11e-e025fd21e5a4","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":76,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"314b058f-cf6b-4392-9732-2d4e7e07f78b","block_type":"box","text":"eligible foreign investors through Bond Connect will be registered in the name of CMU, which will hold such bonds as","page_number":76,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"14f4f00d-4ec3-4bfc-aae8-02545212e554","block_type":"box","text":"a nominee owner. Therefore, a Fund will be exposed to custody risks with respect to CMU. In the remote event of a","page_number":76,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"bc252eea-6677-454b-958a-38b6656b45c9","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":76,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"fc00253e-40fc-4edb-b095-8f3a6850f080","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":76,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"21524a64-b983-41ae-b5bd-dedc35c7dbbf","block_type":"box","text":"delay in the recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":76,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"97e921eb-bbe7-4ce3-806e-a2c596fbec4d","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":76,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"0111c990-39e0-4237-9ef3-475cb575e64b","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":76,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"49ebdf77-3273-4431-9a29-614e33b7ab7b","block_type":"box","text":"parties.","page_number":76,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"a239a34b-3fcb-4877-b5ed-1c37795d2db4","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China Interbank Bond","page_number":76,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"ecd3cfbe-9855-4ac2-8481-67994dda0b70","block_type":"box","text":"Market through CMU as nominee is not well-defined under PRC law. There is a lack of a clear definition of, and","page_number":76,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"bd981e82-dc7b-4db0-a262-fc786188da73","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":76,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"0b729a81-e19b-4c95-b3a9-4b336aae62a7","block_type":"box","text":"II-45","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2c982fcc-6d2f-4976-a3ae-1e0c99503c20","block_type":"box","text":"NM1026U-5981128-76/232","page_number":76,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"44657c10-2e95-472f-8faa-21082c526359","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":77,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"a03b18c7-c8cf-44b3-b90c-f71e233f5240","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":77,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"0a502f0f-c306-49f8-b5e5-52575f852d95","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":77,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"3cd05636-6216-4b12-b6c6-a3922e4d12e2","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":77,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"bbd02b8a-d95b-4987-8444-1d2ff7f537f4","block_type":"box","text":"such market is therefore subject to liquidity and volatility risks. The bid-ask spreads of the prices of such securities","page_number":77,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"4ce3565b-523f-4a48-8c93-4a7230664d87","block_type":"box","text":"may be large, and a Fund may therefore incur significant costs and may suffer losses when selling such investments.","page_number":77,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"5a54401d-ccb4-4c4e-b6a1-48a9676c767b","block_type":"box","text":"The bonds traded in the China Interbank Bond Market may be difficult or impossible to sell, which may impact a","page_number":77,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"2a782520-5a52-4330-929d-f1214fd9d16b","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":77,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"b454dabb-8ebf-4b4f-9d0d-1f931713db22","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":77,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"0cd89ebf-69eb-480a-8dd5-d49450c632dc","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":77,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"866aca30-8684-4155-bb0a-9d3370c2bf8b","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":77,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"38bf1a2d-7414-46f2-b9d5-3d96ea03ef00","block_type":"box","text":"systems of China and Hong Kong differ significantly and issues may arise based on these differences. In the event","page_number":77,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"e96c447d-3225-4f2d-8d19-43ea591f354d","block_type":"box","text":"that the relevant authorities suspend account opening or trading on the China Interbank Bond Market, a Fund’s ability","page_number":77,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"f40a3eee-5298-475e-b553-12b0d2134943","block_type":"box","text":"to invest in the China Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability","page_number":77,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"e3acc8b0-04a5-4fb5-bff0-97546a2f4a2b","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":77,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"610cee19-52b7-444a-ade0-362e9dad2661","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":77,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"390bcd86-9bf3-4a4e-ae75-14cee753fea9","block_type":"box","text":"acquire or dispose of bonds through Bond Connect in a timely manner, which could adversely affect the Fund’s","page_number":77,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"f6adf528-48b3-4edb-9fca-961ec49510df","block_type":"box","text":"performance.","page_number":77,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"73dc2683-877a-4dfa-b764-6506fb949dc0","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":77,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"8908c779-3f5d-4470-b2a7-249d47d4fecf","block_type":"box","text":"There is no assurance that such systems will function properly or will continue to be adapted to changes and","page_number":77,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"c4235d55-1674-4d8f-a05a-2c693bba947f","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":77,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"2c5fe59d-1204-4b25-ba73-171b2e4d63b7","block_type":"box","text":"Connect may be disrupted. A Fund’s ability to trade through Bond Connect (and hence to pursue its investment","page_number":77,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"289145c5-a533-49c6-971d-e3ab0660cc65","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":77,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"350625ea-562c-46da-b1d8-908af37ef7e5","block_type":"box","text":"through Bond Connect, it may be subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":77,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"8b65baef-779b-4e35-9059-ccb39f6db067","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":77,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"73785d37-53fb-438b-8821-3ee55b8dcd57","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":77,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"42528245-3772-4776-abc7-b025c15cef4c","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":77,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"fc334184-fd6d-40e8-b6fd-27bae1fd4fa7","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":77,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"d5da68e8-bdcc-4724-9f26-467a8437ab15","block_type":"box","text":".","page_number":77,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"07d33247-e109-4d34-8ae3-85ec2a7a0095","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":77,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"30128c4b-f43c-4b1c-af61-4072da274e04","block_type":"box","text":"interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is reduced under an","page_number":77,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"3a0ee147-d5fb-4cd3-b6be-19f8a0701146","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":77,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"21ff6c16-e8dc-425a-b51f-3e6093249e0f","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":77,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"dcd59c19-c231-4ee6-b174-f01e809cf094","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":77,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"b8e6cc3a-cfc7-4338-8a21-35a51b8ce2d6","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":77,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"65604f9d-7706-4d9d-a420-54af009f3da7","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":77,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"4c3ba148-f470-4283-a1a7-b1f99b8e8f56","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":77,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"fa18be7f-eaed-4f35-9c1c-cb707dab97c6","block_type":"box","text":"(“RQFIIs”) from tax on capital gains derived from the trading of shares and other equity interest investments on or","page_number":77,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"97749bac-91e1-4121-af26-413d4223f40f","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":77,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"61a1ec09-b019-4041-9263-b9b90ad2107c","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":77,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"b7c2038f-9112-4cf3-a87d-1af520839522","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":77,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"bdb630d1-a931-4cea-8686-a885eee433fe","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":77,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"b66cf663-dca3-47a5-9928-1fc953ba0f75","block_type":"box","text":"temporary exemptions is not stated in the circulars and is subject to termination by the PRC tax authorities with or","page_number":77,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"4b7aaa0b-1349-4538-a674-cc86e3e9d9f9","block_type":"box","text":"without notice.","page_number":77,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"04559537-6d69-4f33-90fe-69ac35d2e7bd","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":77,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"d8b65899-2147-428c-8686-d4590bad74d6","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":77,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"b8e7cff9-707d-4eb3-b58a-606454eac161","block_type":"box","text":"the PRC bond market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA","page_number":77,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"c1a63f1e-603e-4a64-bd3a-affeddc25904","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":77,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"3b9b24e5-4526-4c23-b103-aa61bc1844b0","block_type":"box","text":"January 15, 2026, it was announced via Public Notice No. 5 of 2026 that the exemption was extended through","page_number":77,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"e7d0d42d-2061-4ccd-a146-cfed2c6d6a6c","block_type":"box","text":"December 31, 2027.","page_number":77,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"25b0fec5-ff68-40a1-883e-b06542bc0053","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":77,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"51ca1e0c-f10a-4d22-ab39-cf411e40d933","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":77,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"277f4b49-70bb-48ae-ae3d-19971c6bc87b","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":77,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"4e5495d9-abd2-4478-a11f-6ad704d497b8","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":77,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"7d966a22-88b2-4016-9b58-ca39a80ae057","block_type":"box","text":"II-46","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e640e75c-0eb1-4576-b67f-2c3fd313e8aa","block_type":"box","text":"NM1026U-5981128-77/232","page_number":77,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"55cf6d76-eef2-4071-83ca-1cc8759a8758","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares traded on the","page_number":78,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"d4dad4aa-38fa-41f4-9353-5a95c3194203","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":78,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"a12d4d21-9183-4495-ace4-5c20f39ee978","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":78,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"190a10d8-8694-4ece-b1b9-da9be0e7611e","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":78,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"12b67629-d90c-4df5-a88a-1095d28d9f12","block_type":"box","text":"market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA jointly issued Public","page_number":78,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"8ad09f96-c8b9-4551-8a11-e7d08bf357a1","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":78,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"25894fd6-fb73-41a4-8295-a009003ed7f0","block_type":"box","text":"July 31, 2025, the MoF and STA jointly issued Public Notice No 4 of 2025, stating that VAT will apply with respect to","page_number":78,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"081c1a25-6894-4d60-9f3b-0687eae429c3","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":78,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"f3dc4cac-ac96-47f8-97a8-017ea80ee388","block_type":"box","text":"August 8, 2025. It is understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption","page_number":78,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"aa0501d3-34e2-4039-8a70-891991b97c3e","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":78,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"5fb05ac7-e159-4b95-a000-04e3ba213e55","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":78,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"f1fb6077-d955-4f0b-a38c-3c0187b6e09f","block_type":"box","text":"tax authorities may result in a loss which could be material to the Fund. There is a risk the PRC tax authorities may","page_number":78,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"621298b3-f897-4ff3-880c-ea6f0a755904","block_type":"box","text":"withdraw the temporary tax exemptions in the future and seek to collect taxes realized on the sale of A-Shares or","page_number":78,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"dfcb7472-45b2-49d0-8c7c-a0690c650157","block_type":"box","text":"PRC sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":78,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"0d60b8f4-d723-40d9-86da-495d92bcf9fe","block_type":"box","text":"temporary tax exemptions are withdrawn, any taxes may be directly borne by or indirectly passed on to the Fund and","page_number":78,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"33606d5d-4c11-46a0-a5a7-fccdf66a0730","block_type":"box","text":"may result in a substantial impact to its net asset value. As with any net asset value adjustment, investors may be","page_number":78,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"20e985c0-bbf3-48c8-b15f-0c701fd07740","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":78,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"d140516b-eb09-4c4a-80ff-6d42343a650b","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":78,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"369d2bfc-91a9-4488-8f32-c83bb893abd6","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from time to","page_number":78,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"c92782be-1ec9-4205-a34d-64d444d8e99c","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":78,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"e1538c15-9939-4a18-a10b-4b6695a742bb","block_type":"box","text":"the PRC in notifications.","page_number":78,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"e614abc9-e5cb-4972-a017-6ff318773438","block_type":"box","text":"Investment in Other Investment Companies.","page_number":78,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"616a3c8c-42e7-4d4d-a0d9-1e9456e17f0c","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":78,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"022eb4c8-089c-4d20-a61f-5c665b45f0ed","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":78,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"295bd115-74ff-4028-b2e3-a442a0181535","block_type":"box","text":"market funds and ETFs, which are typically open-end funds or unit investment trusts listed on a stock exchange.","page_number":78,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"a1dd2c2b-8401-4f93-8f8e-ae293cd79c7d","block_type":"box","text":"Under Section 12(d)(1)(A) of the Investment Company Act, however, a Fund may invest up to 10% of its total assets","page_number":78,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"dbba0b24-405d-42cd-9a55-c2b61d54dae7","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":78,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"79c90d04-32ec-48a0-a333-62ad1b75d506","block_type":"box","text":"12(d)(1)(A) of the Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":78,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"8592a54e-77f2-44ed-9a49-c1f5228ab293","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such investment","page_number":78,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"e08e7295-c42a-422a-801a-aecc03f91003","block_type":"box","text":"company and a Fund may not invest in another investment company if such investment would cause more than 5% of","page_number":78,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"19b744f5-c48a-475d-b016-f91535aeef23","block_type":"box","text":"the value of the Fund’s total assets to be invested in securities of such investment company. (These limits do not","page_number":78,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"ca73c4c3-6e65-4175-ba29-1eeda055eb70","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":78,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"45cb3f64-5659-4e65-9511-16688f095374","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":78,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"3ed2101e-5103-400a-8ea5-2375ac062e31","block_type":"box","text":"Act a Fund may not invest in a registered closed-end investment company if such investment would cause the Fund","page_number":78,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"0351e3cb-486a-4123-af0a-32c1e5ff604d","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":78,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"dd587315-b817-4d9e-b872-38dc005ef301","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":78,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"12a3627a-44d7-4cc0-8f28-61a9599f7132","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":78,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"f63ed3c4-1116-44a8-9c13-cf69497b6f54","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":78,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"c3391b7b-588d-4787-86a9-0e4f6a0570cb","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":78,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"1bd0b189-a486-4c6e-94d1-84431f330fce","block_type":"box","text":"subject to certain conditions.","page_number":78,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"bc7a6b28-9f05-4f95-9ce4-b85c2f580dab","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":78,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"13fcbd69-cf98-4eac-a562-27da0052bfa5","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":78,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"857c7275-dd4d-42e8-a215-4526f5471705","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":78,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"b62ea78e-01eb-4d1f-ac40-da2d8b285214","block_type":"box","text":"held by a Fund that trade on an exchange could trade at a discount from NAV, and such discount could increase while","page_number":78,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"3cc884e0-56e4-4672-a289-840a4a5da822","block_type":"box","text":"the Fund holds the shares. If the market price of shares of an exchange-traded investment company decreases below","page_number":78,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"ad03c75c-3abf-457a-88c5-a59b2e41e4f9","block_type":"box","text":"the price that the Fund paid for the shares and the Fund were to sell its shares of such investment company at a","page_number":78,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"e6776a9d-6090-41dd-b030-1c52ffcdc38d","block_type":"box","text":"time when the market price is lower than the price at which it purchased the shares, the Fund would experience a","page_number":78,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"c19cb732-ff5b-45cb-b24a-ee8baf7a1164","block_type":"box","text":"loss.","page_number":78,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"3dd9f9c5-4df6-44c4-a228-10f1672d7ea4","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":78,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"bd3f33c4-0b72-44d2-a36d-dec107b281b2","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":78,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"9f4cdf14-3698-435b-9030-b0463f0dc996","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":78,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"17bc94e1-4709-41d5-b2a5-eb5c862aac39","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":78,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"16da1d8d-2e48-43d6-994f-510ef662bd07","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":78,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"906edb0d-9f1e-4b16-a72a-69e124f96df7","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":78,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"33afae29-9fe9-4972-8326-94fbcbe8bb69","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":78,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"76c94a09-00b7-4d65-8ef2-c4bc88ee6f5d","block_type":"box","text":"II-47","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9924ed2a-4c35-4d52-9def-d56e3dd08cad","block_type":"box","text":"NM1026U-5981128-78/232","page_number":78,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"aa307329-770a-40bd-8d09-a4ae82918271","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":79,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"8c067e7c-7718-4f27-ac43-b80f1aa9708a","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":79,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"ed725dbc-0fa5-482e-83cb-1f445dea0045","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":79,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"ed89abde-5823-4450-a360-cceb20370067","block_type":"box","text":"assets.","page_number":79,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"8fc1c776-e867-43d7-8dec-f924914717cd","block_type":"box","text":"To the extent shares of a Fund are held by another fund, the ability of the Fund itself to purchase other funds","page_number":79,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"cb5cade6-b109-4d3e-a893-bffbc3f55434","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":79,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"dc333bc4-39c9-4373-8a8a-ffaf79eb971f","block_type":"box","text":"e.g.","page_number":79,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"54b41483-c441-4a00-9d38-e39e9411ac80","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":79,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"b4cf0f33-2749-48ad-9d19-b21aa68910de","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":79,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"cd34da49-8ecd-4cac-a84a-80d061805fc9","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":79,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"1478192f-ef8b-4069-be71-d30cf323f0a3","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":79,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"8ec8b9e8-b9ca-48d5-949d-ef6e4567d741","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":79,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"c5a323cc-74f8-4990-8f36-31384e1217ea","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":79,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"d8b62f8e-b32b-4358-ae38-aa0284a03826","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":79,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"0a870a2b-e219-4377-8f79-4fa825f54d39","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":79,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"4f2ccb80-373a-4827-ac9b-cce473e97a31","block_type":"box","text":"countries.","page_number":79,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"6d9fda77-226d-4d48-b5d4-1197c639d584","block_type":"box","text":"Issuer Insolvency Risk.","page_number":79,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"96cb66c4-b026-4b73-9852-2fb149521222","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":79,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"490702fd-9ff4-48fb-bd96-44df4b1de820","block_type":"box","text":"a high degree of credit and market risk, which may be heightened during an economic downturn or recession. Should","page_number":79,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"7b6a8d2b-3d47-4344-80f9-c6a723caaec3","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":79,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"ea1bc816-4a0b-464c-a302-18656a434efd","block_type":"box","text":"restructuring, a wide variety of considerations make an evaluation of the outcome of the Fund’s exposure to the","page_number":79,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"0e36f3e3-7f76-4d1e-82b2-4690dd235ca2","block_type":"box","text":"issuer uncertain.","page_number":79,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"f07f3037-159f-495a-8dc2-e228d53e0ae5","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":79,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"7b10d7d0-8085-4681-b6d2-4317b73ff263","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":79,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"4983106b-7237-4c08-9d65-3a27d71cfa8b","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":79,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"efbeab7c-7aac-4821-b925-47ea3f45fbab","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":79,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"f423c202-b798-4237-b3d3-268082b22519","block_type":"box","text":"in what manner and for what value the obligations evidenced by the securities of the issuer held by the Fund will","page_number":79,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"26d0e364-dfde-4981-b1ab-205d48dbf81e","block_type":"box","text":"eventually be satisfied.","page_number":79,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"43af2b1a-14d4-4a9c-9160-e64778778837","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer held by the","page_number":79,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"cf31fee0-1de4-42c6-80e2-627ecefa7db5","block_type":"box","text":"Fund, there can be no assurance that the securities or other assets received by a Fund in connection with such plan","page_number":79,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"65b98cad-1f7f-4512-bf13-ad441bdd49e5","block_type":"box","text":"of reorganization or restructuring will not have a lower value or income potential than may have been anticipated or","page_number":79,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"ac0333f3-754d-4858-b169-61013782982c","block_type":"box","text":"no value. A Fund may be unable to enforce its claims or rights in any collateral or may have its claims or security","page_number":79,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"c0401c01-48ab-45b4-9021-4a01dd883642","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":79,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"54c09abf-3b44-463c-9bee-9b6afdbfa158","block_type":"box","text":"In addition, amendments to the U.S. Bankruptcy Code or other relevant laws could alter the expected outcome or","page_number":79,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"00b95649-719d-4231-acd0-7b646ed57eb3","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":79,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"f5216cec-9b15-48ee-b6b5-2159c3775ca0","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be re-characterized or","page_number":79,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"26d75c56-973b-4c39-9d25-d116e9f8dbd9","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":79,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"276e1de8-0762-4f67-9f50-040e894dcb53","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":79,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"82d3c65c-80c1-4317-890a-3f4cde11e9ee","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":79,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"540ee7ac-5260-4cd5-bbeb-9e509c241e0d","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":79,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"b674713d-61aa-4faa-807a-cea1cd7ea170","block_type":"box","text":"volatile than those of other asset classes. Holders of equity securities are subject to more risk than holders of debt","page_number":79,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"c6a65ef4-1190-462a-9a54-c4517b56e6cc","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":79,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"67b686cd-9fd7-45a5-8096-2eaf894f91f6","block_type":"box","text":"value of equity securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":79,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"f7af686d-5636-4e4f-a0bb-cc0eea20fff6","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":79,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"d311f9f1-4a61-41a3-b2ad-687edfdb3ded","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":79,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"61ee6d7a-d80b-4faf-9e19-9298fbadb009","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":79,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"be55c7ee-49d0-4649-8639-b7b249a43a0f","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":79,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"df8c29df-0416-41a6-a6f3-e933f9561beb","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":79,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"5eb43d90-9582-4e5a-bd6e-326b69b122ea","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":79,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"b96207a7-fe03-48e7-961d-f48d5de1d3f7","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":79,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"ec29f0fa-2af8-4619-91f1-f2eff12df459","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":79,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"3b8217bd-b05f-4e63-9bf8-425847c319e8","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":79,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"f644e6f3-836f-471d-84f6-a8bd5590f1ad","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":79,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"ee53ef83-9e9c-446c-9e59-47cd16146934","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":79,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"f4dbe14a-5f95-45cf-9137-a02feaf25384","block_type":"box","text":"issuer held by a Fund, the Fund also may be restricted from disposing such securities for a period of time. If a Fund","page_number":79,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"4939a496-767d-4920-8899-f7b025265e9d","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":79,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"32dda1b3-9406-40d5-a936-b40ef1adb0fa","block_type":"box","text":"that assumed generally by an investor.","page_number":79,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"0e6671ca-9ec3-439c-9247-2bf82fe04cdb","block_type":"box","text":"II-48","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c84c8e7f-7e5f-461b-baa8-3dcf44ad9c9a","block_type":"box","text":"NM1026U-5981128-79/232","page_number":79,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"40f943bd-705d-45b5-9848-ecc9a8fbdd69","block_type":"box","text":"Lease Obligations.","page_number":80,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"094c6a88-5913-406d-99a7-28d9ff310b80","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":80,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"248006bc-a51d-45de-8691-f5936eb83c7c","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":80,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"5147b160-39e3-49b9-ae54-796eb7efdb8e","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":80,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"9b091451-ce0a-4958-863d-c1ea4fe4e74f","block_type":"box","text":"Life Settlement Investments.","page_number":80,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"19af25fb-7d61-4435-ab96-618fe9521792","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":80,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"c7c0d977-208b-498b-bf93-3faffd963952","block_type":"box","text":"Fund, of existing life insurance contracts for more than their cash surrender value but less than the net benefits to be","page_number":80,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"a441c29d-dbda-408d-ab7b-5ae176008d1f","block_type":"box","text":"paid under the policies. When a Fund acquires such a contract, it pays the policy premiums in return for the expected","page_number":80,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"0eea3f47-22a1-42f1-9fbb-f2f43d1ed31e","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":80,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"54348f45-e421-468f-8a32-f83928b7f094","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":80,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"19650331-c320-4766-9392-ef6f852954d5","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":80,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"cd8ee186-f2d1-4ab6-82a4-1aeffbe4f170","block_type":"box","text":"secondary market through life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a","page_number":80,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"11700ff1-6ca3-4b13-90e1-fc92b8090d61","block_type":"box","text":"policy, the Fund may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":80,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"801f0c37-43a3-458d-8019-d3a177fce86f","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":80,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"24016dfb-b15c-4f52-b432-c29f5ef75d5e","block_type":"box","text":"losses on its investments if there is an inaccurate estimation of the life expectancies of viators. A Fund intends to","page_number":80,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"b5fa877c-ce77-4a2c-998e-e2a44ced394c","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":80,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"a461fb3c-3001-4a8b-af86-843309a446c5","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":80,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"3a28bbb7-ce5b-4888-afc1-4dd623696bea","block_type":"box","text":"addition, it is unclear whether the income from life settlements is qualifying income for purposes of the IRS 90%","page_number":80,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"6c046ff5-a7a8-4c06-9354-0321e2900c95","block_type":"box","text":"gross income test a Fund must satisfy each year to qualify as a regulated investment company. A Fund intends to","page_number":80,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"67cff35c-2ebd-451a-9030-bc2a59cf22ec","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":80,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"91dd4181-a6dc-41eb-9081-1450ed41bd75","block_type":"box","text":"Liquidity Risk Management.","page_number":80,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"7c155c19-b406-4c6e-a080-aa03841ce8e6","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":80,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"625935c4-6515-4097-bb7f-f23645d307ad","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":80,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"296f7c39-d7b8-40ea-9c17-c501fe73ad2a","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":80,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"e2448646-013f-41f6-a6f4-243d61b648b9","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":80,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"9c9e3bb4-d6e0-4248-ab7b-3d562d36a532","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":80,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"e2b856cf-0972-4abc-9634-4273bd514401","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":80,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"a5524a30-1466-408e-bcd6-e23d06fb4762","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":80,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"bb3969c2-6bff-4fe5-b31b-d0d9ad36bd79","block_type":"box","text":"“illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund could not meet requests to","page_number":80,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"e4e1cc2e-2cb4-4920-a1fa-8c5a6626ebf3","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":80,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"358a44b0-1306-4481-915f-26cf7a0febc4","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":80,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"d98a887e-8f7b-4f33-9bc8-fd156810fcb6","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":80,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"0301b0ee-6d81-49b8-a5f3-ea1a6c346069","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":80,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"c65faf7e-6cd6-4615-8ae8-9bab8beab0ff","block_type":"box","text":"Master Limited Partnerships.","page_number":80,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"d82406e4-3b33-4231-b1f9-f2253ec9b854","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":80,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"d0469557-a5c3-46d4-8a3e-70c5f3be5d30","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":80,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"1c70b95b-7b84-4bb6-8fa6-08d4704d78b4","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":80,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"7a78adf1-eae1-45d5-8d88-43ea0e91ec7f","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":80,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"c5e7c50d-3fcc-4eff-bd2b-d31b0735cea1","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":80,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"0a2548f9-4486-4379-a081-e83a6b42fa98","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":80,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"dc91dc7a-06ab-4c97-8c15-68cb9476d0e9","block_type":"box","text":"typically owned by a major energy company, an investment fund, the direct management of the MLP or is an entity","page_number":80,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"99388cd4-9c2c-4b47-b67e-d50d5403ab4e","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":80,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"f7982224-248f-4993-9f44-3fc2a76c4c86","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":80,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"428c7241-7c69-4092-9532-78c8e4d1f0b9","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.","page_number":80,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"5b463dfc-a102-4351-9d7c-0a7fe85b1426","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":80,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"138786a1-4a42-47d0-abbe-6f963df7a9d8","block_type":"box","text":"in the partnership’s operations and management.","page_number":80,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"4744a3cf-6440-4b00-9e44-2b68a10a6cdb","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":80,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"113d70d6-b726-4b11-b9a1-0c64fa7201ce","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":80,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"912ab430-c581-4760-bff8-be07af67062c","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":80,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"eb5d073a-56ac-497d-920f-069ad5977c42","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":80,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"c023ab2b-73fc-49a1-bdc8-22dfc929f40b","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":80,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"ca63ef4c-2285-4845-8184-4dce0fb14432","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":80,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"6f1bb551-cda0-49b3-a443-c6974d122489","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":80,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"52368232-66c5-4d6e-bf4d-11e6580ab2d6","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":80,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"e7d9f629-6895-45a9-b912-b97016efd5f9","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":80,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"9b94c7e7-c1e4-45aa-89cf-3346e9262cf5","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":80,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"d282de93-6700-4a40-aed1-0774a578072d","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":80,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"b517689a-031f-4d29-8fd2-a9cfe3b7028a","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":80,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"80811569-6499-4286-b092-6a9cc3bdb589","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":80,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"0ee60ba0-02e8-440a-ac1d-ab8d2094a876","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":80,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"e48cb392-fc7e-4e9f-bf84-f1e99386db0f","block_type":"box","text":"II-49","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c12e0c94-a5bb-4299-89bf-3f1616920cd5","block_type":"box","text":"NM1026U-5981128-80/232","page_number":80,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5b1c3f2b-022b-46ab-8947-caf4f707cdd9","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":81,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"e34928ca-105c-4697-a748-4aa9e74bcfed","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":81,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"99d5faf0-aae8-498b-bf9b-744930d9ef62","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":81,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"eda16963-f505-470a-bdf9-1452f8a1a2f9","block_type":"box","text":"common stock of a corporation, owners of common units have limited voting rights and have no ability to annually","page_number":81,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"30e7d780-6e4c-4786-aceb-336b49414b8f","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":81,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"801ca2bf-94af-4662-a2d8-28b739ffb9d0","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":81,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"d56766f0-4ca4-4e80-82f0-72adc7ec8069","block_type":"box","text":"Merger Transaction Risk.","page_number":81,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"d455382a-648d-40c5-b0fc-4b0eb1195b7e","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":81,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"009f5ad7-f9e9-4e8e-949a-fdac78fedc05","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":81,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"f172a1eb-e0fc-4722-9c18-7940afbd5170","block_type":"box","text":"in cash, stock of the acquiring company or a combination of both) in excess of the purchase price paid by the Fund","page_number":81,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"783cb694-f99e-4573-9006-d1d11e98a391","block_type":"box","text":"for the target company’s stock. However, a Fund is subject to the risk that the merger transaction may be canceled,","page_number":81,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"96e3b0db-ed3c-4697-a4b7-985959b8eb5f","block_type":"box","text":"delayed or restructured, in which case a Fund’s holding of the target company’s stock may not result in any profit for","page_number":81,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"dd532b6b-5980-4cfd-b004-a54939f93006","block_type":"box","text":"the Fund and may lose significant value.","page_number":81,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"ce37f407-b32b-43f9-a1f2-97eca6b34d76","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":81,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"50f7978a-055d-4d71-85d1-af97773a3d3e","block_type":"box","text":"Certain","page_number":81,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"5fb1fdd9-f72a-4b38-8caa-74eba9aba33f","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":81,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"269bd4ff-de7e-4c2a-bfbb-c54a6545412c","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":81,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"aec21854-b65a-4e24-a592-1b81997fb1fc","block_type":"box","text":"having total assets at the time of purchase in excess of $1 billion. These obligations may be general obligations of","page_number":81,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"43e73d1b-177b-4ca8-8b7f-c18a918efe85","block_type":"box","text":"the parent bank or may be limited to the issuing branch or subsidiary by the terms of a specific obligation or by","page_number":81,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"f9e65d84-1e57-4979-9196-675bbc6d7179","block_type":"box","text":"government regulation. The assets of a bank or savings institution will be deemed to include the assets of its","page_number":81,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"d7d36a47-7ed0-4615-bfe5-2cecb73e8d16","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":81,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"31b649a5-0107-4814-bbe5-98efcc165275","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":81,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"686e485c-3e86-4835-a51b-75049b6dc0ed","block_type":"box","text":"branches of domestic banks.","page_number":81,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"93955466-0b41-4a1e-9cdc-4be4316146c9","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":81,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"7b885b16-bf0e-46e6-bc7e-ee6af810d1cf","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":81,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"72c81800-bd5d-4cdd-a86c-181ae853feb8","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":81,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"936d31c8-a92f-443c-94f6-7b5d36717cef","block_type":"box","text":"paper of a foreign issuer.","page_number":81,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"91d35820-d857-4c30-af39-5fc838b2d8e9","block_type":"box","text":"Money Market Securities.","page_number":81,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"9f37b51b-6713-43ee-8a7d-2a96e54d5cdb","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":81,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"3c5d3588-c360-408d-b0ad-3c0e2c0d9222","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":81,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"46e0be09-e8ae-4019-9f16-972862f80a9c","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":81,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"896bbbb5-18ff-49d3-a301-22695af69405","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":81,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"9d803660-f332-43f6-bbbd-0f264c8c529e","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":81,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"47bb4138-4757-46ad-922a-6a14633de18c","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":81,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"17c77c67-d604-471a-97be-971f56d733c0","block_type":"box","text":"other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2 or higher by Moody’s or F-2 or higher","page_number":81,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"499cc58d-481d-4ed6-b29c-e0b6531d0bee","block_type":"box","text":"by Fitch, as well as high quality corporate bonds rated (at the time of purchase) A or higher by those rating","page_number":81,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"7c53ec1e-fde1-48a8-9e81-3fa4023db0f9","block_type":"box","text":"agencies;","page_number":81,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"376cde67-6d30-4cd1-bb6e-32aee712e56e","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":81,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"5fc755a1-d5c0-4b71-8599-25c01736743b","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":81,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"ed45c5ae-a48b-419d-a055-b1660241c0c7","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":81,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"d3cde042-edf5-4ea1-9169-68e7abff2598","block_type":"box","text":"obligations and credit card receivables);","page_number":81,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"91c53170-c004-4352-b319-e8703c742ae5","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its agencies or","page_number":81,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"8090a4ed-44ab-403c-b6d4-91d299c86eda","block_type":"box","text":"authorities and related custodial receipts;","page_number":81,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"9e4b1bd0-855c-4e18-8a90-9194b445ba67","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":81,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"10021310-e329-4751-aee8-1624dd6b221d","block_type":"box","text":"agencies or authorities;","page_number":81,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"55bcda15-ea67-4116-b74d-653f6ba2534b","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":81,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"2f549db7-a3bc-4955-ad19-7968775ca569","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":81,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"5ada965b-471e-46b6-8e50-04e3844f735d","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":81,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"5f364190-48aa-446e-96f7-16995157cfda","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":81,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"df6c8f8f-5c74-4c01-b091-52049b7762ef","block_type":"box","text":"one of its agencies or authorities or which otherwise depend directly or indirectly on the credit of the United","page_number":81,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"65d47bd6-7154-410e-a7fe-783d089d814b","block_type":"box","text":"States;","page_number":81,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"fae0e8d6-4a44-4f31-9062-2cd65143872e","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or higher by Moody’s,","page_number":81,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"67d0b590-0594-414e-b22b-c1e9c9816f65","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":81,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"9cc9e353-a1d8-4f20-b1d0-66e100df2593","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by Moody’s, A-2 or higher by","page_number":81,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"c65424df-8057-4123-8944-7a9a2dac45a0","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":81,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"1d52c9ad-9b2c-4f18-a5bc-1970cbd6fdfb","block_type":"box","text":"II-50","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"80dd66fc-5e92-4ed2-92fb-79c6077b23c5","block_type":"box","text":"NM1026U-5981128-81/232","page_number":81,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"37c5595b-2d2a-44c2-aadc-f601d4a8ffa6","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":82,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"7b927a14-96ac-4a7e-9200-462fd21ea3eb","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":82,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"449c9eb9-5079-4906-8550-0d64b49132f7","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":82,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"5d67f89a-271f-4266-ac88-421839d58481","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S. Government or an","page_number":82,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"e585ffef-4bb1-4bfa-b3d2-df67a92cca99","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":82,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"79a6c765-9ed6-446c-abd7-b928cc25c6af","block_type":"box","text":"States.","page_number":82,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"8bf080c2-7c44-4063-b9c7-52ecee73ed50","block_type":"box","text":"Mortgage-Related Securities.","page_number":82,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"d2ce2397-091d-4f02-a363-4fc9074773a7","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":82,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"18dc8ef2-dec3-4f5c-a67c-9e1b7265aee6","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":82,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"8165131e-db56-49a7-9fa4-642051dffa7b","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":82,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"28999234-52e5-4a24-b5e0-2f147176b249","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":82,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"c7ee84cb-058d-45a4-a1b2-0386cb07db53","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":82,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"73012743-68bd-40c3-86a9-20641ab4572e","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":82,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"b0893643-7273-4aa4-9ef0-cc899a84cb68","block_type":"box","text":"maturity or specified call dates.","page_number":82,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"78c40d35-8397-4919-8fdf-8068531c4715","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":82,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"50dd7723-e05b-4121-a87d-731525251319","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":82,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"42d8150a-40cf-4352-98d2-ca288af84ee1","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":82,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"8600c016-2f9b-4f6c-91fd-1bb5ae1edfab","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":82,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"daac7b67-6751-46e3-9739-c2592f1096fb","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":82,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"4e2de471-b333-4210-85c7-10a0d8d57db9","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":82,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"8f281047-2b04-429e-bb5f-f3175c601c45","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":82,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"cedcfe49-c4dc-43f5-804d-619b03e8742b","block_type":"box","text":"in prevailing interest rates, and, like other fixed income investments, the ability of a Fund to utilize these instruments","page_number":82,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"0876601d-3b3a-49fb-bd58-7def03eef1a0","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":82,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"31a19568-0b1d-48d5-b5b7-fb7000101cc6","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":82,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"6ccec642-27b8-4e97-8440-406bdd797b27","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":82,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"e953ac6e-8dc7-40bb-925c-daeb0cca5efa","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":82,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"f73bcfc3-d2a6-4638-bfa7-e9f303d62ca1","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":82,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"8406a9b5-d6d1-4d97-b8c4-ae6a4b8281f1","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of prepayment of the","page_number":82,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"36e6bc47-3856-411e-a3e0-eba9b8167bd3","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":82,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"e8c064d8-7a34-40d2-8cdf-c3ea11ecb7dd","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":82,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"9f6575b6-3705-4961-9588-703850a74fc7","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":82,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"7c53fa9b-4e54-449b-b441-2b7d5b2a2b13","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":82,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"a36f337a-c94f-4c55-b3ca-ef9d7f8ab10b","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":82,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"8da88164-2f84-4213-b59c-d35037747ddb","block_type":"box","text":"principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such securities at a","page_number":82,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"14a7dc26-73b8-4206-8f56-09eb476590b2","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":82,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"9ba39027-c157-4044-aecd-db464a589022","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":82,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"66b375d8-211b-44b5-92cc-0edaabf30fe0","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":82,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"e92b2009-a407-49aa-989d-fa6fbb5a4f36","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":82,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"2164059d-f809-4840-bf5f-83ecbfedf4f1","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":82,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"4df1ea8d-18e7-4c40-80ea-7a7623566571","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":82,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"690ef8d0-f35f-47ed-a9ee-d132f8056350","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":82,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"e0ff8f09-09b0-4386-91aa-f2a2478acff0","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":82,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"0b81fe8f-c1d6-4336-8cfe-04ca9a249984","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":82,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"2ad6ea53-2412-45e7-9dc6-b07c7b7b5409","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":82,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"6e832045-9a76-46e7-8b8c-2dc0baa3069b","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":82,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"d4d92ec0-1d78-46d5-96b2-a7fb58f735d2","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":82,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"7d92c738-ce0f-4ade-868a-bb037e341f02","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":82,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"d9bbeff5-c2fb-4434-9cdc-d431339e076b","block_type":"box","text":"securities issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities; and (3) those","page_number":82,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"4e2066fe-4949-40fd-9ead-74240b549dde","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":82,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"9c4b3a5a-c693-4c9e-8a1c-4c99ab0b9e3a","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":82,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"a3714973-a1ed-4e38-a899-34060f7f57c7","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":82,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"5dedbcd3-d633-4308-8903-bf5fa987930e","block_type":"box","text":"Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely","page_number":82,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"1eda5fc7-725f-481e-bfa9-ad0950cbe200","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":82,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"440a168e-bc0a-4ee8-ab9f-f5f83ecbfce0","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":82,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"b147ed97-0c57-4060-9ccb-dd867fc534fd","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":82,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"92e86488-a0df-4263-80f8-0c0042e9a7e2","block_type":"box","text":"II-51","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c9a44c85-9eb3-4c0a-a155-3bf27190aa63","block_type":"box","text":"NM1026U-5981128-82/232","page_number":82,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"08f2d667-c006-4093-9085-8a8f86cc851d","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":83,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"84c15db6-50d1-4550-b203-99bb3b50e252","block_type":"box","text":"payment of principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the United","page_number":83,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"9f082fdb-d809-4c83-97f6-5e5860e2436e","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":83,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"0a897d86-5446-4e35-952a-0deb21a08be4","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":83,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"c566d90c-cb97-421c-b1d9-b4d6114c772b","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":83,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"c9fffd9d-4617-440c-9c86-93712cf3b401","block_type":"box","text":"guaranteed as to timely payment of principal and interest by Fannie Mae. They are not backed by or entitled to the full","page_number":83,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"b82bd443-90c9-44e7-9cd3-96e3aaa86fb4","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":83,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"0aa73325-5f85-42aa-a434-06bf45418284","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":83,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"4bc50777-39c2-404b-b4ec-576962deb99c","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":83,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"ba3927ce-1e17-4645-af1a-94e4bd6b255f","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":83,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"8b31c97c-511d-494d-bc29-ee4746e776b2","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":83,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"de9aa7df-d2b4-4005-ae2f-b18c51ddc3c7","block_type":"box","text":"Home Loan Banks and do not constitute a debt or obligation of the United States or of any Federal Home Loan Bank.","page_number":83,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"500b31f0-7898-4796-be3a-0f082834b7de","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":83,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"a4fa40d0-1725-475a-b69c-1c1d787ba32d","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":83,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"807ab1f2-1080-45eb-9fb9-b2c186f4bb53","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":83,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"33d93f98-9e22-4616-9b1c-d43bf0a90839","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":83,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"2656b675-9a2f-4e82-b467-6b681647a94b","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":83,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"f20abfaa-99f2-4b8f-86f5-3bb3ea9b6955","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":83,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"2fe57a69-6f3e-4883-b3dc-b23cff5044b6","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":83,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"4e7d0656-36dc-4964-9844-79152a6c506a","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":83,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"f24ebee2-6de7-4d36-a603-d775c55c4bba","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":83,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"370975ec-83e3-4155-9f3d-57ae5b9825d8","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":83,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"7a55c335-83b7-4b9d-9a35-f01ef5a1de7e","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":83,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"034b1c59-7e7e-4472-8751-43d16e74a8d7","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":83,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"5aa3ae73-8427-4e33-b63d-3412151d9087","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":83,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"1136ecfd-29bd-4a0a-a970-76aefeb2a7e2","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":83,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"a40c0c83-bcf1-44c7-b076-ac9b25c43812","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":83,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"6b128b0e-a1cc-4ace-bc45-a815f0564acf","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":83,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"047f0431-a392-41c4-a0d7-23d400ac90b5","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":83,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"e0fe406a-5047-441c-9118-f299f65c1545","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":83,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"141962f9-db1b-4660-bad6-462185882a3f","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":83,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"61a65bc2-49af-448f-b13d-3a2ac9273dae","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":83,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"8026df35-05f4-4222-b73d-00e1b37b2245","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":83,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"ad0b4f9e-be65-4f2c-baf4-211a20e5001d","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":83,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"16e19bbd-5f68-4e17-8fd6-4cad1ffb05f7","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":83,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"6cff4941-aeff-4ede-bb49-d14214f732bf","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":83,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"79e19d56-43ad-4413-a462-7f7a71c0b8cf","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":83,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"ec59de0e-b750-4a84-a87d-df5f37bdee58","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":83,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"49f2d390-e56f-4e62-a69c-fadd354e3182","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":83,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"8b0b107d-916d-4dea-a8d1-12547e0c68ab","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":83,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"411617a3-9fb9-4de0-a8dc-fe939460faf0","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":83,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"a9409acb-96f0-4ccc-8db6-3f782c82c088","block_type":"box","text":"loans. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to","page_number":83,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"58efc9ae-d28f-43dd-9c86-c3f747ea76e1","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":83,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"26bcf523-c100-458f-b62e-792c2c0a9389","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":83,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"b2a471ab-df91-4403-b4a1-91c8c78cce08","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":83,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"aadf20a9-1b69-4326-b08c-28f2b7f3217c","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":83,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"2df004bf-58d4-4aba-949d-1fad81c57770","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":83,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"c3dbc26e-45b8-43d4-b744-c6a4cf2ed6f0","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":83,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"7d3c190c-57bf-45ba-8379-43685f76956e","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":83,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"606de144-32ee-4677-93c7-44104d53ba99","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":83,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"a0ef64da-44e0-4da2-8e91-0ef0a59b3a04","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":83,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"1853e335-d854-4ba3-be21-b2b3383b1ece","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":83,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"7ccf8aa5-772b-4f12-9197-4e79ed4f4377","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":83,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"9679e93b-5e9e-4d2a-b8e1-1adb65f8991e","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":83,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"12386300-33c4-4107-abe0-c5f94bcdf42e","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":83,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"e82cbf9d-8977-4f95-879e-482d6346ecd8","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":83,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"cb5ffb44-697a-456c-937f-3bf43891f0d8","block_type":"box","text":"II-52","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"533b1920-a11c-47f5-bb74-d330d9e29784","block_type":"box","text":"NM1026U-5981128-83/232","page_number":83,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9f221aad-4801-457d-a869-0c6f01839368","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":84,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"a16e63f7-1fa4-44dc-9d65-5d880f416f74","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":84,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"3bff87d9-c1fa-4434-8be1-ffc6f6e01d03","block_type":"box","text":"by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer of a series of CMOs may elect to be treated as a Real Estate","page_number":84,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"91e530ba-53d5-4a4f-9dd6-29dc6265cec5","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":84,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"3e8d5e62-88de-4050-b5d0-437d24b2d5de","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":84,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"3d3c30c9-8200-450f-b0e7-8438cc798488","block_type":"box","text":"or fixed interest rate, and bearing a different stated maturity date and each must be fully retired no later than its final","page_number":84,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"43dfdfdc-160d-41bd-9673-1edc77d95429","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":84,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"6b907559-b2b6-4b53-a6a1-3f521391333e","block_type":"box","text":"is ordinarily unrelated to the stated maturity date. CMOs often provide for a modified form of call protection through a","page_number":84,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"c00a48a7-09f4-444c-a622-46313551bf23","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":84,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"61955c71-2124-4398-bb89-cd0b9f70cfd4","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":84,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"f3a30d6d-ef84-4bc6-9062-c709bfe1b39f","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":84,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"ed60fbd4-54b5-4ad4-a317-b83a647a18e5","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":84,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"3069036b-79bd-4bc1-a5de-730f2d7601fc","block_type":"box","text":"of principal because of the sequential payments.","page_number":84,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"8c24fadd-b8c8-4b97-a365-627cad0d5aff","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":84,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"2454ae49-a8f8-4e7a-ae40-414fe5b6d22b","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":84,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"0deafc1a-bb4c-4fd7-a802-b776298daaa8","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":84,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"ae813abb-ef11-447f-aa4c-697aba0c4198","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":84,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"fff6041a-edeb-425a-953d-6fd27b15e078","block_type":"box","text":"on the rule, are also not subject to the limitation of the Investment Company Act on acquiring interests in other","page_number":84,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"6a7698b7-6e97-4ce8-a6e6-21211004c786","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":84,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"83f01d58-8947-49c4-8dd3-fb61fa29e653","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":84,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"176d7e79-7750-4244-8283-3477de4c37e4","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":84,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"862abccd-d2f1-4c44-9c2e-6cb67a580ab7","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":84,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"3d2b6797-ca30-4912-b312-4036707d0c61","block_type":"box","text":"To the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above requirements, the Fund","page_number":84,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"c1f951a8-19c9-4250-ab28-dc3dcd9c4715","block_type":"box","text":"may not invest more than 10% of its assets in all such entities and may not acquire more than 3% of the voting","page_number":84,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"ef71768d-efcf-4123-9b71-d40764fd8778","block_type":"box","text":"securities of any single such entity.","page_number":84,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"d47e1cc6-45eb-4b10-b9a3-1a7ea26a6a63","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating rate CMOs.","page_number":84,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"1eea2884-b9af-430d-b0c9-8168f81ac23b","block_type":"box","text":"Parallel pay CMOs are structured to provide payments of principal on each payment date to more than one class,","page_number":84,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"9b540da9-cef3-46f1-aad4-6e0cc50910f7","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":84,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"5d7cb714-b5a7-43d6-b3c3-ea6578934f78","block_type":"box","text":"calculating the final distribution date of each class. Sequential pay CMOs generally pay principal to only one class at","page_number":84,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"2d731035-92d6-4849-9143-96f40c0c6dca","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":84,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"d09ca2cd-0cb3-459c-8b97-f9a63c1ac9c8","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":84,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"bd028103-7bb8-497c-b318-c2bb3b371266","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":84,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"78810009-728a-4d9e-be2e-eb1e026746a3","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":84,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"dc7fb8da-edc2-4b00-b319-02549a653c60","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":84,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"e525e6c2-86d1-4c2b-8823-671fbbe5e7a9","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":84,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"1ae0d414-6c5c-4a5e-a482-4eea032b2821","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":84,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"1a0e796a-0617-4487-8753-e63295d649c4","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":84,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"2bde17ac-d4e1-42bc-8262-ca61a5f33881","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":84,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"d85ee075-0b3c-45d1-b0de-1d054e35204f","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":84,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"cb67be99-0fdf-44ac-b9ea-e10a58f8fa70","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":84,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"50bb448f-ed85-4f3f-bea8-b98639d8bc77","block_type":"box","text":"the final distribution date of each class of PAC. In order to create PAC tranches, one or more tranches generally must","page_number":84,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"5aff2d1e-9fa8-4eee-b1e7-db4232fc3ed5","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":84,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"f9f6d26f-aeaa-4f0f-9ddb-df715d2672a5","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":84,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"38bad1bc-e4a6-4151-80e0-e2e9ae3534db","block_type":"box","text":"classes.","page_number":84,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"aefae3a2-f1f3-4087-aff3-489efc63199e","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each payment","page_number":84,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"34136a40-7694-4774-9460-1ab7acffa78e","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":84,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"f51e8710-af50-4710-b48c-05756f238743","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":84,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"33d69bc7-0b66-48bf-a12b-11bd90519a4e","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":84,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"85d37c4e-1b5d-4907-aa2d-e2409242e311","block_type":"box","text":"not both. TACs thus provide more cash flow stability than a regular sequential paying class, but less than a PAC. TACs","page_number":84,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"30702690-6a47-4ff3-a9f8-38147d6b702b","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":84,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"6f29900b-2a2e-486a-abb3-5333500f709e","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":84,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"6b96e2e3-2a3d-4b81-a8ee-437d512a9539","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":84,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"f0eb9822-d6a5-4505-b207-9004a4f52827","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":84,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"c9c6e92b-52dd-4cd8-b92f-c0eadc761ec0","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":84,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"cebdf44c-e426-418c-97dd-22188c0592d5","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":84,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"716b976b-bac5-470d-8b42-983845e55db8","block_type":"box","text":"to a designated benchmark index.","page_number":84,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"fc841145-d057-4e29-808e-a0c7c1e3c2d1","block_type":"box","text":"II-53","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d056c5b2-8982-42ab-b992-91b9b4cf7daf","block_type":"box","text":"NM1026U-5981128-84/232","page_number":84,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"bcc66622-2721-45dd-9a0f-dac935207944","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":85,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"6ace4dbf-3ae1-450f-be9c-6d4f3d2080c7","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":85,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"0c133c9f-ebb5-44fa-9254-2d79d0e4b7c4","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":85,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"a8390816-3f0e-4d27-99bb-6133a52cfbcc","block_type":"box","text":"more rapidly to levels above that of the ARM’s maximum rate, the ARM’s coupon may represent a below market rate","page_number":85,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"7bc61f18-6f49-4916-9997-30e04c8a40a5","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":85,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"ad1b1fa2-7b9a-4a5f-aacb-3f6fe1012fac","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":85,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"883e4181-915d-43e4-8cd7-834bb3347216","block_type":"box","text":"payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is added to the principal","page_number":85,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"c4c14c20-ea6a-4791-a55e-345d698399eb","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":85,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"37638250-a9bd-4606-8ab4-d115c8148d31","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":85,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"62fb8334-fa64-4a4f-814c-94e9fa8326d3","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":85,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"3a6ac142-2d70-48e6-8826-7cfd31c709cb","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":85,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"4ec3901f-014e-465a-b950-8b68014f57f5","block_type":"box","text":"CMO Residuals.","page_number":85,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"6b507c40-5129-45ad-ace3-ad4e2852f15e","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":85,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"4d3dfc74-8df3-4b58-8079-6274c8154803","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":85,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"517251e7-3a7c-4328-9bf7-907a4d77d69f","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":85,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"ca949780-ddf4-42c1-bfaa-b3c493bde241","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":85,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"57d09aef-f733-4312-a49e-c937eb96226b","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":85,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"9f4a365c-9e2e-46ef-8ad5-1af8cb19ce0e","block_type":"box","text":"any management fees of the issuer. The residual in a CMO structure generally represents the interest in any excess","page_number":85,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"08a274ba-608f-4f5f-89f5-4f2769c7e7b7","block_type":"box","text":"cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the","page_number":85,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"ea5409d8-38cf-4fb4-ad42-9a3acce4b15a","block_type":"box","text":"related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a","page_number":85,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"ab34482f-c5f6-45fb-9699-65fdda85ef18","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":85,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"dd87baee-a76b-472b-938e-1ae46c064811","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":85,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"2cd7c639-2c7b-44a1-a94d-325a1a2f7fed","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":85,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"86a377dc-1b7a-41ab-8d60-acac03e8bd3e","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":85,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"e0ea3cb0-7636-4cee-82b7-62f91c05ce57","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to","page_number":85,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"3ec48d2e-e59a-4f36-a87d-4e976748ec7e","block_type":"box","text":"maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which","page_number":85,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"9db27530-ebac-4bc1-93fa-962daa2a9919","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":85,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"ec643a37-09e2-496a-a4fa-86362b245b9d","block_type":"box","text":"a CMO residual.","page_number":85,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"5e692260-3c0f-48df-9ae8-8615c048654a","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":85,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"6b9a9000-0f6f-4db4-ab47-7cb0318570eb","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":85,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"1504b7a1-1a11-4f27-a3d8-c7575cf43595","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":85,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"efb46b91-5895-47a8-8f28-5640fc20afc0","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":85,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"ff74d83c-7264-46ed-8737-7553c9a7c543","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":85,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"e33d7c50-e96a-4842-a91c-54a9697c0f77","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":85,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"e3ce6929-eac6-43f5-bf81-830cdd5ce372","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":85,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"6cf6f51c-b49e-4062-a3a1-8011c891b728","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":85,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"3ef89f33-60fa-41f8-ae68-5f966b0af98f","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":85,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"3bfba361-e5c3-4e68-9a6e-3ce567df31b3","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":85,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"31089550-b8a7-4c2f-9c1c-f05cd7a5e04b","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":85,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"c8ed0f2f-9dc7-4b0c-8e58-4f6e270712ea","block_type":"box","text":"principal only or PO class) receives some of the interest and most of the principal from the underlying assets, while","page_number":85,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"233ec7bf-6291-4029-bdcb-b9ae03001576","block_type":"box","text":"the other class (the interest only or IO class) receives most of the interest and the remainder of the principal. In the","page_number":85,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"f8f996be-77b9-496f-a525-5418b3b63798","block_type":"box","text":"most extreme case, the IO class receives all of the interest, while the PO class receives all of the principal. While a","page_number":85,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"4903c5cc-4b5f-4bd8-96db-389874535ebd","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO class. The yield","page_number":85,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"9cf92e38-be69-49bd-9cab-53fb8f3a2341","block_type":"box","text":"to maturity of an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the","page_number":85,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"d72ee291-3b42-4189-aae2-697353e9c917","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":85,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"e90dbecf-f0df-421b-9c18-df486ea48cfb","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":85,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"852eed6b-c47d-4325-8f8b-8495a6cd82a2","block_type":"box","text":"experience greater than anticipated payments of principal, a Fund may fail to recoup fully its initial investment in IOs.","page_number":85,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"bd3b7615-cc5a-47db-a00b-06478db3d0d5","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":85,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"26231aae-bfc9-40b1-b27c-185b4a801c0c","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":85,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"b47ee6fe-1684-4ccd-a497-b2aa1b0bed8e","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":85,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"b22f6949-cab7-4264-bdeb-83d3162a74ad","block_type":"box","text":"generally will purchase IOs only as a component of so called “synthetic” securities. This means that purchases of IOs","page_number":85,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"db59a2ff-d142-403b-ae01-288c5ab85922","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":85,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"8dea893a-38ab-4e81-80dd-58bbc44d1cc1","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":85,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"abc0a54b-7d93-4453-bb80-b6b6c0bd1932","block_type":"box","text":"effect on a Fund because of its holdings of IOs should be diminished somewhat because of the increased yield on","page_number":85,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"fe5c39ab-c249-466b-8d83-74d051be118f","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":85,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"120e0a6c-6531-4097-ba21-8481a24806c1","block_type":"box","text":"Tiered Index Bonds.","page_number":85,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"6355bfcb-3567-4ba0-9db2-84bc63941620","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":85,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"79eb0fea-71f6-45ad-9db7-7495ec131e0c","block_type":"box","text":"index bond is tied to a specified index or market rate. So long as this index or market rate is below a predetermined","page_number":85,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"7da487b4-b290-429e-af40-80b8e78610bd","block_type":"box","text":"II-54","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"29456733-9fff-4d88-8421-b25a3d12f289","block_type":"box","text":"NM1026U-5981128-85/232","page_number":85,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cb5d5d1b-189f-4d08-9497-7ffae9490b00","block_type":"box","text":"“strike” rate, the interest rate on the tiered index bond remains fixed. If, however, the specified index or market rate","page_number":86,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"75a5ce60-ca68-4931-bb34-f4d92110ba11","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":86,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"94a41c5a-01ef-4033-b6db-fbdef77bcc2f","block_type":"box","text":"circumstances, the interest rate on a tiered index bond, like an inverse floater, will move in the opposite direction of","page_number":86,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"67b06e2c-480b-4b27-b6b9-40f9d1c5e346","block_type":"box","text":"prevailing interest rates, with the result that the price of the tiered index bond may be considerably more volatile than","page_number":86,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"477027fb-b673-49a3-9615-c88e026bc6ef","block_type":"box","text":"that of a fixed-rate bond.","page_number":86,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"4d1e76a2-be5b-42bc-b567-04edb0a3ecba","block_type":"box","text":"TBA Commitments.","page_number":86,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"3a339de9-768b-4f06-8de4-04c3ab09abdb","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":86,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"d33ec0b1-191f-45c4-abb3-7a8b2e6c5c93","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":86,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"a06ebc1a-e9d0-4846-9347-a3ea60e9d412","block_type":"box","text":"with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not","page_number":86,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"30dcf234-db31-4b3e-8ac4-cbda3dfb0287","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":86,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"0620dd0b-25ec-4709-905f-93a4c9927362","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":86,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"b21b4a28-f2a8-4348-addf-991f61a42565","block_type":"box","text":"price, with payment and delivery on an agreed upon future settlement date (which may be referred to as having a","page_number":86,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"c8b9d003-053c-45e6-900c-1bf784cf3ea1","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":86,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"3579a98d-2d07-4a91-8525-e01c685e2eec","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":86,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"307720a0-287c-4e44-8ef8-a92cfd45fa38","block_type":"box","text":"below.","page_number":86,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"669e6903-6aa6-48f3-bebd-2cbe6d88bef3","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":86,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"e9b58d54-e2ab-4bd2-bba2-d0acebc0ef0c","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":86,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"79b5f00f-a9f5-47f0-a509-82535e176851","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":86,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"8bd8a40f-70ea-4811-a57a-c5c9e487624b","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":86,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"71ae6ee3-1a01-4d4f-b8e2-9860f9f457e7","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":86,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"b914e1f4-4cc1-4dc9-8524-4b4c141c1586","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":86,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"1f1f4a5a-8951-446f-8735-eab77b48e844","block_type":"box","text":"be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in","page_number":86,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"abddbed8-99ce-42b4-b18b-e23acd7ef615","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":86,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"88a056c7-12f8-42c5-8244-dfd79f6e6dc4","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the","page_number":86,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"fc162853-6f28-4a5c-a015-a8c479004602","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":86,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"ec058b08-39df-4ba0-ada3-1686de6bd75f","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":86,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"451f2eaf-a49f-4499-858c-cd2ddd85c21c","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":86,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"2cc8fb21-35e0-4744-8922-f323310ba57c","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":86,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"737a3437-a081-4a40-845b-c19686389e59","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":86,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"64c2d8ec-1107-4020-b58e-4a4722df4312","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":86,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"831d9a88-0b81-4547-94c0-20ed49d6cf40","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":86,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"8da683bc-7f45-4715-9249-9cad5284a8a3","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":86,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"89f2d218-31c9-4e41-bb5b-7cc8d9e5d8cc","block_type":"box","text":"securities in the forward transaction.","page_number":86,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"7da46e03-2053-4e6b-ba45-0ec46944235b","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":86,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"a8b71036-fe30-4049-8a77-eb04dc856ba9","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":86,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"4fefcb6f-1e6d-46b8-8c63-9debe2d7f097","block_type":"box","text":"that the market value of the securities subject to a Fund’s forward purchase commitment may decline below, or the","page_number":86,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"cff1c2e6-a381-463e-864e-1661b123e985","block_type":"box","text":"market value of the securities subject to a Fund’s forward sale commitment may increase above, the exercise price","page_number":86,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"69a81fbd-097f-4dc2-a839-c21962f1a4bc","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":86,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"850c446b-5ccf-4bb0-ab84-3d9a1b0cb14e","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":86,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"18e02e13-6c07-420d-a1f2-928f8e19469d","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":86,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"dbe132f1-ee10-459d-a6cf-37f67fb79136","block_type":"box","text":"securities (","page_number":86,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"d767119e-ff14-46ed-ae31-3864ec8daddc","block_type":"box","text":"e.g.","page_number":86,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"27527c37-2895-4c96-b155-521ba6ba37c0","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":86,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"86ae39a0-865f-4414-b090-d0ba35cda78c","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":86,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"bcac2803-2e94-4b4a-873c-3a5952393200","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":86,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"2de32561-b03d-4c22-8d7c-bd4ec64bbd60","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":86,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"8745ddef-742e-4fd2-9721-11bb5c281232","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":86,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"255f9598-1d52-4971-95a3-cd5b6d6a8574","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":86,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"690d2350-e89d-4661-9834-e4205bddaf90","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":86,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"dfa8023c-c4d3-4774-bb31-cb58776e774a","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":86,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"b9368565-97e0-4364-80ce-c2e7e03601de","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":86,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"b8e22a8d-26de-4342-b9f6-d6451f455c4b","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":86,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"6d68192e-9e24-4ce0-8723-40e11487af1d","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":86,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"f45e72bc-0614-4188-a253-30f278f87a64","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":86,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"429d5279-a4f5-42dd-b910-e7b61a0e905b","block_type":"box","text":"securities, the yield to maturity on a NIM security is sensitive not only to changes in prevailing interest rates but also","page_number":86,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"4a832cec-afe0-4f0f-86d4-141bb12f885a","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":86,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"019027ff-8d90-4d55-92d1-aba34eb8bda9","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":86,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"bd5a2fd6-8ead-45e6-81bd-33a60978a917","block_type":"box","text":"Municipal Investments.","page_number":86,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"cd79cd6e-6742-4254-bd99-521e87b0ec94","block_type":"box","text":"II-55","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"46a468f6-086d-4fc4-bb97-92e90eaffb4d","block_type":"box","text":"NM1026U-5981128-86/232","page_number":86,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1ec50b48-1c85-42e3-80ef-6fdfbd325637","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":87,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"9f1afde7-28eb-4ffd-97db-5015d6c8a361","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":87,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"deaa26d0-e4a4-43d0-b8ee-3a702549d4b0","block_type":"box","text":"payments from which, in the opinion of bond counsel to the issuer, are excludable from gross income for U.S. federal","page_number":87,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"ae2e3482-6fd3-4c19-b583-e16fae88ddb3","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":87,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"6bb081bf-8d34-4d3a-b779-c98396befd5e","block_type":"box","text":"pay interest excludable from gross income for purposes of state and local income taxes of the designated state and/","page_number":87,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"53dcccbe-cb57-4852-bd84-b7c77d3eabc1","block_type":"box","text":"or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated state (“State","page_number":87,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"eb089d29-979b-41ff-aae0-0d50262ea219","block_type":"box","text":"Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on behalf of a state or territory","page_number":87,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"931d4f1f-509e-42f9-8550-a8b521bb08bd","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":87,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"51b655d4-aeb8-4472-9973-4245f4f9b2f8","block_type":"box","text":"gross income for purposes of U.S. federal income tax and state and local income taxes of the designated state and/","page_number":87,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"e73176b8-db80-4e79-aa04-962e1aefcbfd","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":87,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"38e11c8b-2d35-48e0-ae39-71443e97fd01","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":87,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"5fa9ea62-7476-442e-a643-13755106b545","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":87,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"ee934779-cf18-44bc-a7d4-c6143746c8f5","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":87,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"4cdf8a1c-9054-4991-aa84-c00e8128aeb3","block_type":"box","text":"law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for U.S. federal income tax","page_number":87,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"4e24f1ee-c03d-406c-8d06-02139c530f44","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":87,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"44435c37-f222-4d23-b48d-4907a8ed55fa","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":87,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"a96e9da7-338f-4f16-a949-00c1f664114c","block_type":"box","text":"income tax and state and local income taxes of a designated state and/or allow the value of a Fund’s shares to be","page_number":87,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"53585df3-ef5d-4940-b57a-3299cfba98b2","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":87,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"3ea72a57-e776-4eac-b612-0e6b1c0c3c72","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":87,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"974b75bb-de10-45bc-8aef-521a601f074d","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":87,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"988d04fb-ef77-4498-a81a-e68de8a06364","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":87,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"75aecbef-43a9-4fef-b4eb-b10cd3a87b53","block_type":"box","text":"The risks and special considerations","page_number":87,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"4fa35c54-20fc-47f7-9948-473ddea2172b","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":87,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"51c3563e-2498-491b-95e2-a993d2395b7a","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":87,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"402b89e6-8bc0-48be-a70d-9bed59860945","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":87,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"d1103fb7-2ed9-4bbf-80a3-8f2181ebccc2","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":87,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"5ae3bd32-9819-4eba-a598-4c678ce7ba06","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":87,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"b371964a-5d5c-4cd2-9b52-7016fc7ad634","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":87,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"b7c4e2ce-c334-4499-b43d-aa18f5462341","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":87,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"d8aad3b2-7a3f-45f9-b02f-6adbbe630f89","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":87,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"17bc6d6c-74f6-4e90-b809-b3426d5eabcb","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":87,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"dc591fa1-7126-488e-8510-7a16a7636bec","block_type":"box","text":"II-56","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9234745b-cd7f-44db-b141-8750ae38c208","block_type":"box","text":"NM1026U-5981128-87/232","page_number":87,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c5f22922-8e3e-4e89-8c4d-b50889f7bfb6","block_type":"box","text":"Description of Municipal Bonds.","page_number":88,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"17ad22aa-0918-4d55-bb8a-ac573ea0d5b6","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":88,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"ae3c233d-f57d-460a-9ace-3fcfa881667e","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":88,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"6a00abc3-04ca-4055-9f1c-b3bb0cdbf575","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":88,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"8d5d1233-dd83-4255-a9f9-617e957aa9ee","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":88,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"d7afea17-36f2-4ca2-9cf3-82c85d8bfd01","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":88,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"09311270-b5e8-44fe-ac05-b2848ac37faf","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":88,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"de29cb75-2bfc-48cb-be05-bb8cc445a39f","block_type":"box","text":"excluded from gross income for U.S. federal income tax purposes and any applicable state and local taxes. Other","page_number":88,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"e6ec1b45-a7cf-4fa2-a30e-4febf10750b9","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":88,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"3dd2cfc7-6121-469f-bac3-ff125ee393e7","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":88,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"2406894e-e9de-4bb5-aa0c-64f1ea3be6b8","block_type":"box","text":"federal tax laws place substantial limitations on the size of such issues. The interest on Municipal Bonds may bear a","page_number":88,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"bab706a6-eafc-4688-84de-39284ebba689","block_type":"box","text":"fixed rate or be payable at a variable or floating rate. The two principal classifications of Municipal Bonds are “general","page_number":88,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"83f174a9-e8b0-4f0f-b375-686e5d5cd44d","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":88,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"192456f6-75d8-4ae1-a395-944decb880f9","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":88,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"554c9051-fe76-4a00-a72e-6a65ca9bb801","block_type":"box","text":"General Obligation Bonds.","page_number":88,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"2c604643-6713-46ad-8889-bb6cc0cf5923","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":88,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"f7eb70be-7cb7-4ea1-9c7f-21583640868b","block_type":"box","text":"taxing power for the payment of principal and interest. The taxing power of any governmental entity may be limited,","page_number":88,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"cb305748-cbdd-4e3f-8293-44959416f26f","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":88,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"34b78981-567c-4086-8980-974893b0e758","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":88,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"425f2551-072e-4593-9182-746cb7823415","block_type":"box","text":"industrial base or inability to attract new industries, economic limits on the ability to tax without eroding the tax base,","page_number":88,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"58529cd5-8a8e-4f02-874b-3402e5e92dce","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":88,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"5a0e6219-3ec1-42a6-8fa4-537ff79c675a","block_type":"box","text":"relies on federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":88,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"fd97bb47-ad6e-49dd-9eb0-48c1be2c82d8","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest and the","page_number":88,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"874254d8-f00a-4ac7-856f-43235367ff73","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":88,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"3b4ece40-2f39-43cd-a602-70c3545adfd7","block_type":"box","text":"Revenue Bonds.","page_number":88,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"3fe0bf60-309b-479f-b6d4-8b24fcdb58dc","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":88,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"2845a1d2-9ae1-487c-9be6-00b477bcd87a","block_type":"box","text":"facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source such as","page_number":88,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"1b9a0f07-4939-47ce-8577-996088b47bd9","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":88,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"0a5810fd-d1ea-4897-8bfe-34cc33c2c966","block_type":"box","text":"of principal in accordance with the terms of the revenue or special obligation bond is a function of the economic","page_number":88,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"5e101aa3-74ae-496c-8043-e2083ae26615","block_type":"box","text":"viability of such facility or such revenue source.","page_number":88,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"2c07071b-a5fb-40a2-afbb-43a3de7e0cad","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":88,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"ceab4c10-f492-4e63-97d4-d6fa4c21cb1e","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":88,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"4ec3bd6b-e503-4b57-a16c-96a6402b0281","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":88,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"09b9c99a-1561-494f-b410-7d6435fb33c5","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":88,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"580dd723-eab8-4465-a753-e0f888ec618e","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":88,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"38e3746a-db96-4369-9b9a-97a9b7e7cb24","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":88,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"6731caa4-4553-4259-9fed-85f165f49d12","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":88,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"9c962958-3fd8-42ed-ada8-6db93a66de7e","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":88,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"c996e08c-3a99-46b4-9c30-62242303d5a1","block_type":"box","text":"PABs.","page_number":88,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"85b2d3e0-35df-49ea-bb61-edba514f4cc0","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":88,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"8c0a5aa3-a26b-40b3-a386-84765bcd4d42","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":88,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"45833d5d-cedf-4036-bcb1-c80286fe72b5","block_type":"box","text":"construction or improvement of a facility to be used by the entity. Such bonds are secured primarily by revenues","page_number":88,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"42132d76-4ed6-4aa5-ac82-92703b380b2a","block_type":"box","text":"derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a","page_number":88,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"ba186003-c3d0-4e0f-940d-9c9a311488c1","block_type":"box","text":"parent company or otherwise secured. PABs generally are not secured by a pledge of the taxing power of the issuer of","page_number":88,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"8413dab3-d368-4190-a5b3-b39a854f0cb8","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":88,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"84833257-3564-409e-8061-594b7ebe30bf","block_type":"box","text":"revenues of a private entity and be aware of the risks that such an investment may entail. The continued ability of an","page_number":88,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"9ec03066-e5b2-4b37-871a-3edf9d7206cd","block_type":"box","text":"entity to generate sufficient revenues for the payment of principal and interest on such bonds will be affected by","page_number":88,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"c7e62330-8efd-4fe7-b77d-f21facbd5e65","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":88,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"419f9956-927c-4df8-b46f-6651030aff6e","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":88,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"9244789f-70bb-43b3-a5b3-2b0a55624c7f","block_type":"box","text":"the particular facility being financed.","page_number":88,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"c8c0b88f-5d82-4162-b30d-ef3f90b07b53","block_type":"box","text":"Moral Obligation Bonds.","page_number":88,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"7d3537c7-88b5-4307-9069-60f234694b99","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":88,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"e6569da7-0f39-46ca-ac06-06360fa7232e","block_type":"box","text":"issuer of moral obligation bonds is unable to meet its obligations, the repayment of such bonds becomes a moral","page_number":88,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"688cd827-bf4a-407c-be7c-0f3ca2d9ca85","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":88,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"4f1b271a-9414-49fd-b236-5b131b8214d4","block_type":"box","text":"that issued the bonds.","page_number":88,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"42b4bc6a-b7a1-4986-87ed-090a6a68cf14","block_type":"box","text":"Municipal Notes.","page_number":88,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"59cd7713-0cb0-408a-aa87-c5ecb13b152c","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":88,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"532204f8-032c-4fed-b332-6d7f91150707","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":88,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"215fa53b-38d9-41a6-b82d-c5758bbde0ea","block_type":"box","text":"repayment on the note may be delayed or the note may not be fully repaid, and a Fund may lose money.","page_number":88,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"d07e4e5a-e0c7-499d-aca6-dd8c138d6415","block_type":"box","text":"II-57","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bbf08321-71a9-4c9c-9f64-56da9c73c2d8","block_type":"box","text":"NM1026U-5981128-88/232","page_number":88,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"744795af-c3c0-4d91-9806-2640d82a6e73","block_type":"box","text":"Municipal Commercial Paper.","page_number":89,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"d34e7476-b475-4add-b844-1af83b324977","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":89,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"5d59c9ba-2bd7-43c3-b8d1-1d16bebdf218","block_type":"box","text":"financing needs. The lack of security presents some risk of loss to a Fund since, in the event of an issuer’s","page_number":89,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"a6b25e10-8b77-4064-bbc3-58ffc5510190","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":89,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"a227e807-3a99-409a-b8fb-88c3e9e777a8","block_type":"box","text":"Municipal Lease Obligations.","page_number":89,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"2150747a-19aa-44f8-84ad-c279754fcb8d","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":89,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"5b811659-fd52-4b81-a3a5-f2af9a4123b5","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":89,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"6e17b15c-3bf1-4eda-adc6-01840bc9bd26","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":89,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"e58030bf-37fc-4f68-820e-aa713da0f78f","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":89,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"fa5ca445-f87d-43c5-a444-d447cf068912","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":89,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"11fcc9c9-4815-4306-a810-25ea6e51bd0d","block_type":"box","text":"lease obligations do not constitute general obligations of the issuer for which the issuer’s unlimited taxing power is","page_number":89,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"468c9a02-3f53-43f8-aa86-855e3725a78d","block_type":"box","text":"pledged, a lease obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":89,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"6f980db0-0603-49c4-97e9-6965c18faea7","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":89,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"78902658-05e6-444b-9134-278901b4c603","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":89,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"6d4e17d8-614b-49cd-a788-1e47f0aaf7bb","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":89,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"e6e0f7c7-6bff-495e-a033-798447e4260a","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":89,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"28df38ef-4dd7-4b90-a98d-b5ac23668fea","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":89,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"9aa0a74f-5c07-4540-8696-8a9530851960","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":89,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"31259e96-d793-40f0-890e-3827733258c7","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":89,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"d07e5ba4-e12b-471b-bfe3-903abdea329f","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":89,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"179b1eff-452b-4315-b9c6-699e0ea6ed97","block_type":"box","text":"and local governmental units. Such non-payment would result in a reduction of income to a Fund and could result in a","page_number":89,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"5e3b2ebf-1fff-4f69-943e-7afef04a726c","block_type":"box","text":"reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":89,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"2dd8a04d-4341-4e5a-a429-7ee561da873c","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":89,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"51464feb-31aa-43c6-a512-a69e011a5330","block_type":"box","text":"such an issuer, a Fund could experience delays and limitations with respect to the collection of principal and interest","page_number":89,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"df439968-ba44-4527-b273-c41d1d37c8a2","block_type":"box","text":"on such municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest to","page_number":89,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"33e0b4a1-acd6-4691-88e9-ca42e7ad0862","block_type":"box","text":"which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might take possession of","page_number":89,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"76bd0117-257a-498c-84df-93956ed8186d","block_type":"box","text":"and manage the assets securing the issuer’s obligations on such securities, which may increase a Fund’s operating","page_number":89,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"4890e9d9-9566-436a-a33a-8e50be6f9c30","block_type":"box","text":"expenses and adversely affect the NAV of a Fund. When the lease contains a non-appropriation clause, however, the","page_number":89,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"9e9974e8-2d5e-4f1b-bf83-ca96c1fea369","block_type":"box","text":"failure to pay would not be a default and a Fund would not have the right to take possession of the assets. Any","page_number":89,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"8ed52a92-da64-43c4-a283-1a4bbb88d133","block_type":"box","text":"income derived from a Fund’s ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s","page_number":89,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"67e53d22-798d-476b-9117-7310b21796e0","block_type":"box","text":"intention to qualify as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":89,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"13542973-2a5c-40a7-9111-9795d5a75048","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":89,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"0c7d48e0-9c1e-4dbd-8d2d-74da7f3cbba5","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":89,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"28a4090a-618b-400a-8069-c932cfa00d12","block_type":"box","text":"Tender Option Bonds.","page_number":89,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"9b46a597-eab9-4891-b936-98192fb2d80b","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":89,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"4584dde2-5d98-4ae2-9003-3fcc55a6d657","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":89,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"a37cefec-a072-4da9-8506-82fab612afba","block_type":"box","text":"invest pay interest or income that, in the opinion of counsel to the issuer, is exempt from regular U.S. federal income","page_number":89,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"76de0d9f-2419-4985-8e9e-0251263bd718","block_type":"box","text":"tax. BlackRock will not conduct its own analysis of the tax status of the interest or income paid by TOB Residuals","page_number":89,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"428fcc45-75f6-4d11-ad6b-95c405e89c53","block_type":"box","text":"held by the Funds, but will rely on the opinion of counsel to the issuer. Although volatile, TOB Residuals typically offer","page_number":89,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"47c25de9-3e2c-4ee3-acdf-4b0e15a57b08","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":89,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"e9bd0324-bd02-4cc7-943f-cb9d84b70c6c","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":89,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"bb21f43d-17d4-4ecd-b1a8-00548a239208","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":89,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"2e535ffe-8ae2-490a-a37f-e340610e8928","block_type":"box","text":"Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically issues two classes of","page_number":89,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"c4487724-6240-494e-810c-55e93f99cc68","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":89,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"ca0bbd52-b061-4622-822a-b9630a615922","block_type":"box","text":"TOB Residuals, which are generally issued to the fund(s) that transferred Municipal Bonds to the TOB Trust. The","page_number":89,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"be7e6e1d-a191-45d9-8a0a-e432e22ccde7","block_type":"box","text":"Funds may invest in both TOB Floaters and TOB Residuals. TOB Floaters may have first priority on the cash flow from","page_number":89,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"061eace2-4dc6-45cb-b347-4b115aed0b7f","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":89,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"f2d200bd-5393-4f5c-9380-32ac1a4b7074","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":89,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"5eba3297-ad9b-465b-9a56-5f1018d59b50","block_type":"box","text":"as a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes the","page_number":89,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"51b38584-444b-4253-8910-52789fb0c861","block_type":"box","text":"Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the TOB Floaters, less","page_number":89,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"577bcb1b-dc61-4114-8d0a-25e17ee20401","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":89,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"f1b64119-a752-4605-974e-c85ae5a85705","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":89,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"4c6cc5c9-a3b4-44b3-ba85-41eb5efad401","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":89,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"c8ca10be-8e34-4637-acc8-e5a31b78cd83","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":89,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"df77ff94-68e4-4e82-90d4-5bbb721af943","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":89,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"c7b38cc1-bc10-4f31-9991-db976fd03c81","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":89,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"b23b0ba6-a382-4e7d-af9d-d7ef5d2182f3","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":89,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"15f0ce10-bd62-4240-ae76-5bbf6e920aa1","block_type":"box","text":"participation in the TOB Trust.","page_number":89,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"f1931c23-55c5-4028-b153-131946c93baf","block_type":"box","text":"II-58","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d2cdd023-47b5-4b43-b3a2-665fb5bae509","block_type":"box","text":"NM1026U-5981128-89/232","page_number":89,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b9c8d9e4-e9da-42b5-8f5f-46fb9342941f","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":90,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"4904a55a-e22d-4448-a858-64a3a7200b38","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":90,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"23390dd4-29ae-4afb-856e-42fd8f8ae86d","block_type":"box","text":"enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by","page_number":90,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"1b2c919b-74fd-4378-8df3-ef378fe420fc","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":90,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"5cd6ec85-9804-4f22-90cd-11c2a1b93dd4","block_type":"box","text":"and a Fund, as a TOB Residual holder, would be responsible for reimbursement of any payments of principal and","page_number":90,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"339f8f4a-ea45-4558-a0d7-a45db5493e44","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":90,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"74287bac-af69-4e2e-9787-d04ed6e2ce4e","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":90,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"45c728ef-5c8e-483d-a622-86098ff4f530","block_type":"box","text":"share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued interest. Thereafter, the Fund","page_number":90,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"66014587-2ecf-4acf-ad9f-1abe8a2eded1","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":90,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"7312f76b-25b6-463c-a69e-f295eebdb40c","block_type":"box","text":"exposure for the Fund to the entire return of the Municipal Bonds in the TOB Trust, with a net cash investment by the","page_number":90,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"9bea37c2-661c-4624-8efc-e75b250cd630","block_type":"box","text":"Fund that is less than the value of the Municipal Bonds in the TOB Trust. This multiplies the positive or negative","page_number":90,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"6b21b81d-e123-47da-aa5a-71eb7677d2b8","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":90,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"9e99274e-b536-4445-8727-e77b118a34ae","block_type":"box","text":"depends on the value of the Municipal Bonds deposited in the TOB Trust relative to the value of the TOB Floaters it","page_number":90,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"246332c3-10de-4d4e-a0f4-8cf031d2e0e2","block_type":"box","text":"issues.","page_number":90,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"40045e67-b3d9-4076-acfd-ec3dfed44bee","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":90,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"97dcfe40-a426-41ce-ad2b-09737585a5da","block_type":"box","text":"the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of the principal amount of the","page_number":90,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"f49d2ca9-390d-46f5-afb5-0265b067f897","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":90,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"2cd3ca94-260e-4d2f-ae0d-1447cd65891e","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option termination","page_number":90,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"036e1d11-690f-42e9-b4b9-333ea727c883","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":90,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"deadafc8-c684-4593-b241-d3f62d431e48","block_type":"box","text":"include the bankruptcy or default of the issuer of the Municipal Bonds held in the TOB Trust, a substantial downgrade","page_number":90,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"a3f1a4a4-fa92-4c3b-8690-f6b94c646359","block_type":"box","text":"in the credit quality of the issuer of the Municipal Bonds held in the TOB Trust, failure of any scheduled payment of","page_number":90,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"a4a3b9cf-47c7-464a-af9a-814e7c45ebd7","block_type":"box","text":"principal or interest on the Municipal Bonds, and a judgment or ruling that interest on the Municipal Bonds is subject","page_number":90,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"a2fb71ea-fba5-470a-9c71-ebddb67e9ed1","block_type":"box","text":"to U.S. federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Floaters, the","page_number":90,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"d8c8e742-4ee3-4b20-afc8-e98c91f7ed8a","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":90,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"26e72eb9-9008-43f3-b13e-47ed6cd77f44","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a TOB Trust would be","page_number":90,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"6adf5ea4-2722-40c8-aa27-22bf766ed0d6","block_type":"box","text":"liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the remarketing","page_number":90,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"377f9ec4-da44-4fde-b574-6ea39c5172f4","block_type":"box","text":"agent of the TOB Floaters and the Liquidity Provider (defined below). In the case of an MTE, after the payment of fees,","page_number":90,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"af839d16-2090-4190-89ba-9fc25a7bf2f5","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":90,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"d89f7e89-f0a3-43d5-83fb-e1fa57fc1f34","block_type":"box","text":"i.e.","page_number":90,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"5c481054-0701-4249-a283-f47d69093f88","block_type":"box","text":", the Fund). In contrast, in the","page_number":90,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"4fb7ad23-f96f-4706-96ae-bbaac5dbd5f9","block_type":"box","text":"case of a TOTE, after payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro","page_number":90,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"1066b07b-8a9c-4f87-8562-b566fb2a8216","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":90,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"8aa61679-a478-48de-9bf2-7df8a21b5f3f","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":90,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"33799e51-2ede-450c-a7ee-ca0ca45c4378","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":90,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"fb801a0c-27a1-4346-a0a0-37a007b002ba","block_type":"box","text":"the holders of the TOB Floaters to tender their TOB Floaters in exchange for payment of par plus accrued interest on","page_number":90,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"bf107045-5336-48f4-9d14-c9d8d5043911","block_type":"box","text":"any business day (subject to the non-occurrence of a TOTE described above). Depending on the structure of the TOB","page_number":90,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"b0c0060b-692e-4a3e-b8bb-06b5c450c891","block_type":"box","text":"Trust, the Liquidity Provider may purchase the tendered TOB Floaters, or the TOB Trust may draw upon a loan from","page_number":90,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"17a2a4f7-f6a8-4966-a17f-cb537c03af02","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":90,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"6a4aef9f-68a5-43de-8118-494d2de1b305","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a","page_number":90,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"70ba747c-ec98-4e09-b67f-484b10d373a3","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":90,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"c2820726-1d82-4783-ad0b-27c7443655fe","block_type":"box","text":"held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility over the","page_number":90,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"1ac8b9b4-d4c0-4f8a-99ca-49dc2c83610e","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":90,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"3e196885-1d08-4677-a65d-cf45059feb94","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":90,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"6f268bb9-bd69-4ae0-a66f-b0d552a2ab86","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":90,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"6f94a6a0-ca62-44f0-997d-0f415ec2a607","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":90,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"f0435e4b-b5a8-4a9f-8cad-03f05e038933","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":90,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"1caf7f71-30d2-47cd-bd62-3d2b777cd46f","block_type":"box","text":"Trust.","page_number":90,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"2cada826-879f-4157-a0bc-96367b7daec8","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are investments of the","page_number":90,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"3328a426-711a-4d27-b880-8c8fe8a1e34d","block_type":"box","text":"Fund and are presented on the Fund’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust","page_number":90,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"353930ee-dc02-4963-b664-0ef97d97a4b1","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":90,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"1626bc34-9860-43f6-be01-c9c86b9e7d2f","block_type":"box","text":"Municipal Bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Floaters and other","page_number":90,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"8f304867-1096-44a7-9408-432d3951cf63","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":90,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"872aa1a4-e5e8-43b4-b932-a5ff5f348ad6","block_type":"box","text":"of a Fund. In addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented as","page_number":90,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"b469372a-d017-4327-811e-a35218deabe2","block_type":"box","text":"loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s assets.","page_number":90,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"b6febd0e-ea46-4cce-bd0a-509b9c0b3e59","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":90,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"1d2bb87a-5ef0-4c72-8da1-44a03210f444","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":90,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"3d4cb4b6-c464-4d98-8de2-e7f08585ee73","block_type":"box","text":"II-59","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f6a51b3d-1dd0-4baf-8aeb-6a87493bd787","block_type":"box","text":"NM1026U-5981128-90/232","page_number":90,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4daa210d-d7ba-4654-ad6c-d933459388fd","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":91,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"c2a22327-ad60-4951-a05e-2b021d9e1096","block_type":"box","text":"Bonds deposited in the TOB Trust, the holder of the TOB Floaters relies upon the terms of the agreement with the","page_number":91,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"2ed9efaf-388d-4711-979f-0bd98facb1d2","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":91,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"3cb49da2-d0fa-4793-bb79-a694a41725b8","block_type":"box","text":"with TOB Floaters, however, may be increased in the current market environment as a result of recent downgrades to","page_number":91,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"5af4c8f3-49a4-4e9b-8009-82667bf7318f","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":91,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"8541e3ea-3e25-437d-a198-23d9ac328886","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":91,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"c9eb3cb8-08a7-4747-8419-1696840216a4","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":91,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"fd42cf76-524b-445e-84a5-74cc652c1b56","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":91,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"15ccbf96-e280-42aa-aa7b-05d4f9900958","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":91,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"e3b950f6-8a32-44e7-9029-8f820aef8197","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":91,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"4e073675-efd6-49a3-9861-0637129433ed","block_type":"box","text":"(i) complies with the 300% asset coverage ratio with respect to such transactions and any other borrowings in the","page_number":91,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"134e6f69-f02a-4137-b4d4-34ded45627bd","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":91,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"aa9c9782-983f-4386-aa1d-4627adf9f139","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":91,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"2386a04f-955c-44f7-94e8-00447090bd9c","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":91,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"dafd8c70-b029-4a6a-89d7-97c2655a8a44","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":91,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"c4f8d319-c685-4b9b-9560-66c35687bd0b","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":91,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"eb485c0d-d292-46c9-9e7d-3778779a62e7","block_type":"box","text":"ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will","page_number":91,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"77827059-72e8-4ad4-961c-3666328e701b","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":91,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"177022ad-5740-4375-8cfc-263cfaf59440","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":91,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"027009e0-d29a-47d3-a1c3-f2a8581dda3c","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":91,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"fd59e596-7382-4e73-bff5-370a64d9d1d9","block_type":"box","text":"could limit the market for such structured TOB Trust transactions or a Fund’s ability to hold TOB Residuals. Under","page_number":91,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"e1262772-53f1-44c1-bc3b-034bda3b9b08","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":91,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"8d98419b-9a9d-4a1a-b069-0cdaf82855d2","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":91,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"5de411ba-6fec-4b1c-99cb-8f63ef8bfcf0","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":91,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"36ead898-fa6d-463d-9f9d-52519827a04d","block_type":"box","text":"remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":91,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"fd03efd6-a0d5-4dd9-ae6b-8d2ea8e788bf","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":91,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"e02d6be7-90ff-4b67-8507-8d7c5336d3f1","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":91,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"df78c200-7e86-4cbd-aea7-2813df1a6380","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":91,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"a05a9abc-4878-4801-98f3-100cff7e3362","block_type":"box","text":"i.e.","page_number":91,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"5bb9c463-0da9-43d4-bb53-5b3472bd8da2","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":91,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"ce8e827a-d3b5-458c-beb3-b55bba2caea0","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":91,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"3be23c03-38cd-458e-aa54-8cafccd128cb","block_type":"box","text":"TOB Floaters for its own account in the event of a failed remarketing, which may increase the likelihood that a TOB","page_number":91,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"ea3c7ca7-151e-4310-ae57-64ac1afe0040","block_type":"box","text":"Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of a failed","page_number":91,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"26b8442e-4545-444c-a3c6-32923c1aa091","block_type":"box","text":"remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the TOB Trust the proceeds","page_number":91,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"d96c8e5a-2817-44d0-9fa5-a58c21fceb57","block_type":"box","text":"of which would be used by the TOB Trust to purchase the tendered TOB Floaters. The Liquidity Provider is not","page_number":91,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"18dd92af-ce6b-4afd-b919-741d72bc6ae7","block_type":"box","text":"obligated to advance such a loan. The TOB Trust would be the borrower with respect to any such loan. Any loans","page_number":91,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"58b209ef-5223-45d3-95ba-79191411bdc0","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":91,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"7436e059-cf1e-4667-9920-438b036a5c3a","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":91,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"4f62b01e-c4fe-4b1a-a638-04aebde35577","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":91,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"98e0dfb3-ae34-416e-a1a6-378085ded73c","block_type":"box","text":"contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB Residual. However, as described","page_number":91,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"ac6c5214-61f2-4a1f-b6ff-74b3f0ee773e","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":91,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"4fab4ece-9d07-43c6-a4f4-272952b0a1e2","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":91,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"630e6019-fdf9-4d9b-94c8-8e93807956ed","block_type":"box","text":"(the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention Rules require the sponsor of a","page_number":91,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"eaaeda73-4ae8-492d-9fe5-3e023df54f64","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":91,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"c58111e3-ad22-441c-ae21-8e4bdf39d808","block_type":"box","text":"Bonds. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or","page_number":91,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"fffaa4c3-3764-4655-baaa-5caad5e309c8","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":91,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"5491818a-30c3-4a75-8c8f-386c85d67d3d","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":91,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"52d3522e-bebd-430b-bb9e-978b5a4ea0db","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":91,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"ce159a83-5ad5-45d2-9637-d74b00ff2374","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":91,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"126b667e-83c3-4227-9a37-6118298994d7","block_type":"box","text":"could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal","page_number":91,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"cd134704-7294-4118-a364-2fb4346f07e4","block_type":"box","text":"market is not yet certain.","page_number":91,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"58f5fb62-2b5d-47cd-b2fb-3590110ae095","block_type":"box","text":"Yields.","page_number":91,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"80442dbf-f0ef-4e26-9da8-b209c2f0af77","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":91,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"867d160b-e728-4cf0-af0a-bd65a5fb52bb","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":91,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"ac34f0df-5ca0-4f16-8488-e8169eac5be0","block_type":"box","text":"issuer, the maturity of the obligation and the rating of the issue. The ability of a Fund to achieve its investment","page_number":91,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"4627f617-3d73-40ec-aa12-04f906f638cc","block_type":"box","text":"objective is also dependent on the continuing ability of the issuers of the securities in which the Fund invests to meet","page_number":91,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"58ce5069-b1f5-478d-8cb8-d03a58f55e6d","block_type":"box","text":"their obligations for the payment of interest and principal when due. There are variations in the risks involved in","page_number":91,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"41f8cae7-a3fd-4d22-92d9-3069a8c33aab","block_type":"box","text":"II-60","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"caa8e07e-113e-451e-9979-1b0ead531729","block_type":"box","text":"NM1026U-5981128-91/232","page_number":91,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5da525ae-2e27-4ff9-85bb-a097fd6786e6","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":92,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"a902680c-7dfb-4173-a971-f10e537c1417","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":92,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"6c86d32e-c903-43d3-b7fb-eb59f79c3f6a","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":92,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"f3918baa-eb34-43ae-878f-2715ec669b19","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":92,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"f15e0b89-344f-440a-bc02-38fbc1934470","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":92,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"3fe1c3b2-bf53-4227-869d-769ca3b4740a","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":92,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"33ec9d1b-69c5-48e2-9556-c60d551d2a86","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":92,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"ee48cb53-4f63-459f-83c2-3f81d69193e1","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":92,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"63acb143-a854-4ac4-881a-91721f0f7f68","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be honored.","page_number":92,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"f63ff6e8-6150-4094-99d7-eae88a656a7b","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":92,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"58212479-fd0c-43cc-a18b-f7ca1c22570c","block_type":"box","text":"adjustment formula being calculated to maintain the market rate of the VRDOs at approximately the par value of the","page_number":92,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"e5e5b54d-e03d-4245-ab18-acd83e90590b","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":92,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"943a6543-3153-4255-9ce9-2e0af350455b","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":92,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"f9b2621e-80d1-43a1-a70d-39ab2bf2541c","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":92,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"f2beedec-6fd5-4024-a4ab-7a0548944b9f","block_type":"box","text":"During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its shareholders will forego the","page_number":92,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"7dcac321-3349-45aa-bc7c-293e75d2b8cc","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":92,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"ac389726-2f19-43b8-b4e0-fd64284b5dcc","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":92,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"70ef7a9b-b498-4cb0-a819-b3f36afad124","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":92,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"6e381162-ff05-4613-b0d1-b472a44878b4","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":92,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"82af14ea-75cc-4490-8be7-08f8280e75cd","block_type":"box","text":"deal in financial futures contracts based on a long-term municipal bond index developed by the Chicago Board of","page_number":92,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"d3778c1b-f7c5-413f-91fb-fa6eb50d5d4b","block_type":"box","text":"Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal Bond Index is comprised of 40 long","page_number":92,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"d2255b53-3008-4cd2-96c1-d1af92baa807","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":92,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"7fca36b7-c815-4546-b729-4b16d09eb08d","block_type":"box","text":"Bond Index must be rated A or higher by Moody’s or S&P and must have a remaining maturity of 19 years or more.","page_number":92,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"8f4bc185-e782-4197-a2f8-e7bafc998c33","block_type":"box","text":"Twice a month new issues satisfying the eligibility requirements are added to, and an equal number of old issues are","page_number":92,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"0e8752c2-be16-4848-aa83-2ec08e185452","block_type":"box","text":"deleted from, the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":92,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"c7184186-b6c5-4612-93be-bc1306979d6f","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six dealer-to-dealer brokers.","page_number":92,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"5fdc9a37-370f-4e65-833e-eef383029dba","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":92,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"dc74a4ab-8a3d-44dd-8c5f-5732021ea732","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":92,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"c518d5ba-b595-4bf1-bc27-a306b86e6921","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":92,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"2263af9d-1e19-4b6b-96de-747ad78a1a71","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":92,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"cc1e5dff-267e-487d-a173-0db3760d6f20","block_type":"box","text":"contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s ability to hedge","page_number":92,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"3f17ab9b-6bde-456a-9b08-0b3104d343a2","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":92,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"403bc0f3-08f8-4940-9a75-40852fcb8ef1","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":92,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"99de217f-ad53-48f4-91a4-8daf0d53fab6","block_type":"box","text":"correlate with the price movements of the Municipal Bonds held by the Fund. The correlation may be affected by","page_number":92,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"97c5521b-b3cc-4fb4-bd74-a10d7d6fb525","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":92,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"7b78da3f-91b0-4460-a7f0-6bed1675f575","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":92,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"0f884ce1-d681-4339-af41-cfddb5b7668f","block_type":"box","text":"correlation between movements in the value of the Municipal Bond Index may be subject to change over time as","page_number":92,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"cb7c15b1-aafc-46db-945d-49132d9c46a7","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":92,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"146722f4-2824-43f9-ac44-d91d9619500c","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":92,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"9a967e38-ff5d-4aa3-834e-97f8a91eb734","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":92,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"db7d92c0-f61b-40c8-85b9-838af8816424","block_type":"box","text":"contracts and the prices of Municipal Bonds held by a Municipal Fund may be greater. Municipal Bond Index futures","page_number":92,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"1b501f9d-5a74-43e5-9fec-4223863cc8df","block_type":"box","text":"contracts were approved for trading in 1985. Trading in such futures contracts may tend to be less liquid than trading","page_number":92,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"afcd7c2d-8263-4fd3-a26a-c129fc21a86a","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":92,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"abaef8d1-40c2-4bc9-a47b-7d37badef415","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":92,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"202dd030-7d0b-4bb5-adcd-4cd509bfd22a","block_type":"box","text":"Call Rights.","page_number":92,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"cc6d6e50-d09c-4d19-8916-58e229690be8","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":92,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"249f1698-2de0-4981-a150-f65460d71172","block_type":"box","text":"for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may exercise such right to require a","page_number":92,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"56983bc4-ee23-4940-8eee-93d92fcbbc11","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":92,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"06b5bd3a-cdb6-4d9b-8065-8f82c0a62186","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":92,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"9695a33d-8c84-464a-a3b7-77b7bf6c34c9","block_type":"box","text":"both the Call Right and the related Municipal Bond is identical to holding a Municipal Bond as a non-callable security.","page_number":92,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"617cfa06-836f-42db-a143-1ffdb36ffcb1","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":92,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"03cf971a-6ec5-4d5a-91f3-7c4ced007e25","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":92,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"b5a0455e-e33b-4abe-a166-5ea80483ccb8","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":92,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"15dd34c0-244f-4043-99ac-d2222c455248","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such as Municipal","page_number":92,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"a9697b82-3f73-4e9a-97b5-598529f9c6cc","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":92,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"6ee6b27d-feee-4379-a54c-ac8927ce7924","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":92,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"e6c1ddf9-c107-468b-8d14-b6affd6536a9","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":92,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"b8639523-73db-4b3a-8585-01db08553300","block_type":"box","text":"protect against any increase in the price of securities the Fund anticipates purchasing at a later date. A Fund intends","page_number":92,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"06f2642b-09b6-4998-8451-fd7df4e6ed1c","block_type":"box","text":"II-61","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"814bd3eb-02a6-4e5e-8439-db06cd9c2abc","block_type":"box","text":"NM1026U-5981128-92/232","page_number":92,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c4b170ba-360b-4049-a2f3-0bb7f8160aff","block_type":"box","text":"to use these transactions primarily as a hedge rather than as a speculative investment. However, a Fund also may","page_number":93,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"b48d00f9-3ddd-4cdc-8d67-675b47994981","block_type":"box","text":"invest in MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for example,","page_number":93,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"41ebd73b-1cda-4dad-9bc9-23f47e4f20eb","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":93,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"b3c7eda4-1334-4831-adf7-3ff3685459c1","block_type":"box","text":"i.e.","page_number":93,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"54892c92-7cfb-4c8c-bb00-0df3895daac4","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":93,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"efd46a23-ba9e-44c7-b3a3-54a1cc914363","block_type":"box","text":"rates).","page_number":93,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"fec3b553-0379-48de-9325-de5690e224db","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund exchanges with","page_number":93,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"1d1644e2-7130-43b7-86fe-e2b229bfce39","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":93,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"4a67cb52-da99-4420-9358-ac5872a33e88","block_type":"box","text":"e.g.","page_number":93,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"4291933c-2179-49dc-9726-b78c2707a70c","block_type":"box","text":", an exchange of fixed rate payments for","page_number":93,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"3a91c2ba-2ba2-4618-91ec-918645bf89b2","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":93,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"10405224-b82b-45e6-a292-4e0f70e2fb71","block_type":"box","text":"index, SIFMA Swaps may reduce cross-market risks incurred by a Fund and increase a Fund’s ability to hedge","page_number":93,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"b1283793-0925-478f-b937-0252b4d18eb8","block_type":"box","text":"effectively. SIFMA Swaps are typically quoted for the entire yield curve, beginning with a seven day floating rate index","page_number":93,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"42678622-38ed-42a5-a489-d7d4508b6731","block_type":"box","text":"out to 30 years. The duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond","page_number":93,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"6f0b4973-e1ff-4adf-ad4a-358a8a6f0448","block_type":"box","text":"with the same attributes as the swap (","page_number":93,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"d712c5bf-8b83-4a11-9cae-2756ba873edc","block_type":"box","text":"e.g.","page_number":93,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"cfdb0ef1-1314-4631-8f4e-a3a4b4461ff1","block_type":"box","text":", coupon, maturity, call feature).","page_number":93,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"c8fd213d-2e39-44b5-b8be-c6d4f8077c14","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap permits a Fund","page_number":93,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"97fbdc28-caca-48cf-8808-97db300b3ec0","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":93,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"33e792a9-cc38-4c75-a1df-ad8a99b293b0","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":93,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"91fe1fbd-6ccb-4aba-81a3-a8154713c6db","block_type":"box","text":"price of securities to be purchased at a later date. By using an MMD Swap, a Fund can create a synthetic long or","page_number":93,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"e2e4aa8a-cf15-4aa0-90ea-813e194fde93","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":93,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"4eeb884e-8375-4212-bcc9-f0374b2b0b5c","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":93,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"587c07da-52c1-4735-a5e8-ceb53bf78db0","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":93,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"6fd55c10-2013-4c02-b4ec-6d425198cee0","block_type":"box","text":"below a specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and the","page_number":93,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"cde84743-ecb3-48d4-ac64-4faa004a6167","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":93,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"95dfdc55-ac8f-40a5-9d1c-d9045e1d07f0","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":93,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"8d185ce5-856a-47ea-b7cd-4fe167a6b464","block_type":"box","text":"multiplied by the notional amount of the contract. If the Municipal Market Data AAA General Obligation Scale is above","page_number":93,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"4ce96e05-f20b-41d9-b009-f5ec9188123e","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":93,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"4c922f03-eee9-4501-adc5-2f46e90cfca8","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":93,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"94186b25-21ad-4de3-b3e0-0c34796c5e3c","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps, there is a risk that municipal yields will move in the","page_number":93,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"55dc19af-e4d3-451e-b774-47882bba2623","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":93,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"c2e47287-8cf0-4350-aebd-e15a4f602f50","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":93,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"56f40012-c8c2-41e7-99a4-2e574b4aa117","block_type":"box","text":"Insured Municipal Bonds.","page_number":93,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"7c4cf720-421e-4293-9d48-fac159c59235","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":93,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"c7fe7326-6675-41db-8094-6db1aa6ccab4","block_type":"box","text":"payments on the bond will be made on time and the principal will be repaid when the bond matures. Either the issuer","page_number":93,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"79d96f03-7130-4065-9746-ba704025343f","block_type":"box","text":"of the bond or the Fund purchases the insurance. Insurance is expected to protect the Fund against losses caused by","page_number":93,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"9b404d5b-39d0-4b05-92e7-088415dd7b05","block_type":"box","text":"a bond issuer’s failure to make interest or principal payments. However, insurance does not protect the Fund or its","page_number":93,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"1bf92083-3629-4652-9b28-8e10af9ccca2","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":93,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"8454e993-f0f4-42b7-9403-aa9cc28ff34e","block_type":"box","text":"insurance company does not make these payments. In addition, if the Fund purchases the insurance, it may pay the","page_number":93,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"dfff7636-1660-430c-8322-e248a76149e6","block_type":"box","text":"premiums, which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims paying","page_number":93,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"91807070-7834-49fc-a5d5-5efea85b7cdf","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":93,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"3a3b3f62-0c54-437e-8e91-293dbb8f74a7","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":93,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"7868a2a4-6e8f-4c45-89c5-dd8d29fcb556","block_type":"box","text":"insurance or insured bonds. If a bond’s insurer fails to fulfill its obligations or loses its credit rating, the value of the","page_number":93,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"092d0fe7-0e52-4b95-add2-84e156eb95a4","block_type":"box","text":"bond could drop.","page_number":93,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"2b4389c9-8168-4df9-b27d-da1adae1961f","block_type":"box","text":"Build America Bonds.","page_number":93,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"cac936eb-68ed-4c1c-915f-e758cde50c49","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":93,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"41b58103-2b2d-4e9b-8b22-cd8a54477ff3","block_type":"box","text":"income tax credit; however, the issuer of a Build America Bond may instead elect to receive a cash payment directly","page_number":93,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"cca00f96-db5a-4224-843e-31abdc534844","block_type":"box","text":"from the federal government in lieu of holders such as the fund receiving a tax credit. The interest on Build America","page_number":93,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"95be7972-53b2-47e8-875f-7e3236c22ca9","block_type":"box","text":"Bonds is taxable for U.S. federal income tax purposes. If the Fund does receive tax credits from Build America Bonds","page_number":93,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"38af8ed5-0735-47b9-acf9-84ea3ebeb3f6","block_type":"box","text":"or other tax credit bonds on one or more specified dates during the fund’s taxable year, and the Fund satisfies the","page_number":93,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"851ed5fe-9501-4287-b4c9-90a514a84af0","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":93,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"6c588a73-8f21-4508-8d91-ad23cceb8006","block_type":"box","text":"shareholders tax credits otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond","page_number":93,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"8ddf5e82-cfd7-4e5d-a401-2ae8e2d83d4e","block_type":"box","text":"is defined in the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":93,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"745f7f9e-07fd-47df-b19d-1f039d71404c","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":93,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"13ef6e49-e323-4755-bf5e-4e9da8fd4cf3","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":93,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"1ce73063-497f-4fa1-91a4-6f1220d06f4e","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":93,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"ca43073a-4621-449f-9873-80f04e258b04","block_type":"box","text":"would be required to include in income and would be entitled to claim as a tax credit an amount equal to a","page_number":93,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"512a7d3c-20ee-4ac5-a909-9c7eae207177","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":93,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"dd17d7d8-4578-4e93-89b0-85512b9b5bd0","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":93,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"292d4200-7735-481c-ab80-9ba27d9033ae","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":93,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"b84dd998-c69f-4655-af80-52f9f99bb693","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":93,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"66429966-5b14-4003-b024-3f487c15764d","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":93,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"f0766a5a-bbdd-4749-bdaa-bc0431ef584f","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":93,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"09abb448-3d2a-404a-a67b-082b5ce14091","block_type":"box","text":"II-62","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"50f1119c-3942-4282-8a36-4ba697c58acb","block_type":"box","text":"NM1026U-5981128-93/232","page_number":93,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4d5878e1-74d0-483c-8452-1421cedb1568","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":94,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"6f861d6a-6b06-4276-9cf5-4f05f2f14bf4","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":94,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"37e6b57d-55c5-4e6b-8742-80fe754fff66","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":94,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"f738d2c3-8001-41a2-a18b-09f8d1866a5e","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":94,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"07adbb79-84aa-4356-9632-b9e4001fd185","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":94,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"e3dfdfad-b3db-4d6f-8eaf-af8d33b2aed1","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":94,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"0bcc6929-fbf4-4043-b718-f81432438c0c","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":94,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"09e16403-6ab2-4a67-938b-752d47464a3e","block_type":"box","text":"their face value to the sponsor (","page_number":94,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"805aa167-b378-4828-95ee-a030959d12e5","block_type":"box","text":"e.g.","page_number":94,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"3f0e8a4d-bd73-4acd-9260-98372ee99afc","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":94,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"684e06f9-156e-458f-80ec-d61f838e7b0f","block_type":"box","text":"periodic fees equal to the difference between the securities’ fixed coupon rate and the rate that would cause the","page_number":94,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"45f06d99-25be-438b-bb71-04df50c375e8","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":94,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"3b2f5a18-48d3-4280-bea5-cc321635853b","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":94,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"22573cc8-738f-478f-a4e0-47f5b24ae822","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":94,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"f1cceb0b-754f-4ff9-b1e3-dee5347bb8ed","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":94,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"7b4a92d3-751c-4c79-bbed-0ab512042279","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":94,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"063f5ac4-4d51-463f-89ac-7a3981f785bf","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":94,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"aeb49b0c-5ab8-4755-a2fd-3f670b78fc21","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":94,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"68936b8c-37c5-4bd4-825f-a7e50d137d40","block_type":"box","text":"which give the holder the right to receive payment of principal subject to the conditions described above. The IRS has","page_number":94,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"7c6b0789-25b8-4af7-894a-1f0581fcc7ac","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":94,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"fed5f07e-e8e8-483b-8268-3d0ad65493fc","block_type":"box","text":"or custodial receipts is tax-exempt, and accordingly, purchases of any such interests or receipts are based on the","page_number":94,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"c00d2da3-5619-437d-9dfe-bcc6097a6e59","block_type":"box","text":"opinions of counsel to the sponsors of such derivative securities. Neither a Fund nor its investment adviser or sub","page_number":94,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"e8b127c3-958d-41d6-8729-8e0c51ae1b41","block_type":"box","text":"advisers will review the proceedings related to the creation of any tax-exempt municipal investments or the basis for","page_number":94,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"d71110ce-68fe-495a-b0b3-49a5caad60aa","block_type":"box","text":"such opinions.","page_number":94,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"c08554d2-12d6-452a-97d3-5f0b49e62f0e","block_type":"box","text":"Operational and Technology Risks.","page_number":94,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"e2cc9995-e086-4334-bc4e-da2738aa9a18","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":94,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"661f2bc3-0bfe-4aff-925d-47f9a9ff5f8a","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":94,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"a1b206ac-bef3-44a9-8148-441e7d6c9ee9","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":94,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"fbf09d24-9c58-4172-a928-c53aeda0778b","block_type":"box","text":"learning (“AI”), which may result in losses for the Fund and its shareholders or impair the Fund’s operations. These","page_number":94,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"5516d96b-e667-4685-a498-31b86f3ff96d","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":94,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"661fad4f-add1-47d1-9f58-67ac0bf74541","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":94,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"c263e79b-9f6b-4564-b625-43d78e1c5b29","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":94,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"9e21608e-4933-4918-9b4b-fa4710e6c272","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":94,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"b41da847-4751-4ad0-b2e5-c21b6155b45e","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such","page_number":94,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"7412968f-e8ab-446c-9abb-5eceb3985d96","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":94,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"978f28bf-6ac1-4e37-a1f3-6348b10bd360","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":94,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"6517cfd9-c166-4257-b81e-b5b9ade4b427","block_type":"box","text":"Fund invests, the Fund or any of its service providers. They include, but are not limited to, gaining unauthorized","page_number":94,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"c47b3ab3-b8fd-45e1-bf82-5646f4b5c4ce","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":94,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"ae3e2eaa-038c-49dd-9955-e53a50c8030b","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":94,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"530bdd6c-ea44-4a90-97b2-0cfac2711f7c","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":94,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"d3b0d980-c93c-4cfc-892e-8ec3970226e7","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":94,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"fd36101d-6ed5-4475-b095-33eb493d3f81","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":94,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"55148270-e27c-43b0-8670-8b1b65083704","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":94,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"6365fe9c-4b75-4d76-9f48-43c65b537588","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":94,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"a1eb6795-52f6-4843-bf94-bf59ba4c4b2b","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":94,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"1297963a-ddc0-410a-b1a2-8d51fb5495b3","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":94,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"189b4bc4-b2c1-46c7-b8f9-2711a7ed9bdb","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":94,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"f0ccf097-c0e9-48e4-9391-91a4091cd6a6","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":94,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"12fb3b01-5f9d-4bd9-af7c-23d4a2ee04a6","block_type":"box","text":"upon by the Fund or its service providers, as well as market events that occur at a pace that overloads these","page_number":94,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"e855ad82-eda2-486b-80ea-9373d91c1183","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":94,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"1c86ea32-8ed9-4474-83f6-7f955f47cd3d","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":94,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"76eb2056-73c8-4206-9bef-2e9f50e88aa6","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":94,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"e56934f4-4000-46e0-a785-b64fd2000b04","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":94,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"20fccf1d-1b2f-46a6-b2d1-bc4d73d894ca","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":94,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"4f1b2c19-13b2-45d4-87a1-e41bbd4cbecc","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":94,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"d2286f44-b949-4d05-a288-1598044fd013","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":94,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"81f95f98-91fb-41cc-a31b-d4e25f430fc2","block_type":"box","text":"infrastructure assets.","page_number":94,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"81dfe856-8dfa-499c-aead-516c33150952","block_type":"box","text":"II-63","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cf0ee43c-7870-4670-b249-a1cc56f8c0d4","block_type":"box","text":"NM1026U-5981128-94/232","page_number":94,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c67bbd6a-efe9-4ca2-8906-37450672e097","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":95,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"383dd672-95cb-41a3-9c29-a1ae7d013cf6","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":95,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"62284c8f-57f0-4132-82b4-19e99d514f15","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":95,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"5989e174-bba1-4ed0-8c69-b32cf32debff","block_type":"box","text":"or services.","page_number":95,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"dd8270b7-cf68-4fc2-86d0-cab1066e96ab","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":95,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"25c35f45-ebda-4c43-b00b-e3db2eadae4c","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":95,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"b39132ff-256c-418f-914e-c426559eeb5c","block_type":"box","text":"other third-party AI technology applications and users.","page_number":95,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"0a34ea26-0a2e-4a16-b5c0-bca1027d15cf","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and analysis of large","page_number":95,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"a1f1c43a-7dd5-4e30-ba2d-d3a3fa466adf","block_type":"box","text":"amounts of data, may incorporate biased or inaccurate data, and it is not possible or practicable to incorporate all","page_number":95,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"58625f72-65b0-4f11-b15b-e4abe68c8ff8","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":95,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"d487ba6e-7bdc-447c-bfeb-2ba822bb46b0","block_type":"box","text":"contain a degree of inaccuracy and error, or could otherwise be inadequate or flawed, which would be likely to","page_number":95,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"ef5ebec2-01f6-493f-85aa-6fd107194bbc","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":95,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"9a993bed-05fd-4800-8c06-acb36e93339d","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":95,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"8a6b347c-1c83-49a6-b3ba-7425c93e7f70","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":95,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"31017155-766d-4393-9a1d-8e450d2902cc","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":95,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"20fe1c94-927e-4026-b411-9c07b964d7b1","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":95,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"d36155a4-0171-405f-a58b-2aad6e547aa3","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":95,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"21d0e9f6-412d-46cd-a240-7ce1d9fa2aa4","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":95,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"f4fd3e13-61ad-4b94-b648-fafd39022466","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":95,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"0b9149dd-1f77-406c-a9a5-9f76396dae19","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":95,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"ad7f7992-c196-4e3b-9ff4-fd1cc378f6cc","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":95,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"eda87834-c34e-4fc4-af3e-d73ec48354db","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":95,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"e5e28f79-2545-4439-b19d-fab36c4b614d","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":95,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"d7c99abb-1a36-4f32-a7e9-b74c85b02ccb","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":95,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"682bce29-d092-48c8-b73d-4a203134b7e4","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":95,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"85280774-42d4-426b-b468-89dee0f4bac0","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":95,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"ac8804e1-b49b-47cc-ad76-845813e62d08","block_type":"box","text":"and it is impossible to predict the future risks that may arise from such developments. The full extent of current or","page_number":95,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"1bf5fb5f-b761-49df-a1b4-424f43b51e95","block_type":"box","text":"future risks related thereto is not possible to predict, and the Fund may not be able to anticipate, prevent, mitigate,","page_number":95,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"6ee10660-0404-4ae2-a3b3-3e7f068ad132","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":95,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"d1ee9a45-b117-43d5-ae52-b9aa13e3ba91","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":95,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"95db1a46-d093-4375-bf5b-d4da15de8bd5","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":95,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"2ceb12df-ba29-43c0-a1d5-c6f942b2117b","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":95,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"0864bba7-7fef-4bd3-8b9d-671994953a4d","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":95,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"701bb532-6e92-4e68-9de2-7287afda2f56","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":95,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"1849fdc6-ce8a-4519-8c5b-0fb724603a69","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":95,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"9b471643-26c2-4a51-8958-1b9b485d092e","block_type":"box","text":"may emerge in the future; that such plans and systems may not completely eliminate the occurrence or mitigate the","page_number":95,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"92c85261-d6d6-4b73-9548-66a4646f132d","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":95,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"0af3a7c0-c344-4b7c-88f3-70e37b237da6","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":95,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"fdb6f532-1d99-455e-b9a8-65f0ba47c109","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":95,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"7027796b-bb19-4b92-b3b3-ccf55ab2c4bc","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":95,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"b959d8f4-179b-4944-a8f7-e31b9607853d","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":95,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"9c8904c5-a7c8-4738-88df-7e3161738af1","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":95,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"85a60cc9-c602-4b3f-b22b-0982d2b7eecf","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":95,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"fd329dad-bfeb-49ec-80de-81c6bf1bdbe5","block_type":"box","text":"resources to monitor and implement required changes.","page_number":95,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"6bbb61e7-e1ed-46df-9c31-78d51bb5d1c6","block_type":"box","text":"Participation Notes.","page_number":95,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"e927401a-58da-493b-ab95-4c781ca9c365","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":95,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"129f4b7a-29a2-402d-8785-0d2fc28d98fe","block_type":"box","text":"Fund to a return measured by the change in value of an identified underlying security or basket of securities","page_number":95,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"d97440c4-5a33-4e02-9ca4-52190c219622","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":95,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"ebc0e056-9aca-490a-846f-974c77ff8981","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":95,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"2a24cdb5-15b5-43fd-b71f-10f6fdf84ecf","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":95,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"e93ec5c1-ad1f-4037-8742-0345fd8001b4","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":95,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"0cb88fae-bc83-4968-b991-fb8a7c190c8e","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":95,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"0550f921-b49b-4e9f-8064-f1efabd142c1","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":95,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"3b60e5df-cba5-46c4-b578-77e3ac09e037","block_type":"box","text":"security. In other words, shares of the underlying security are not in any way owned by the Fund. However, each","page_number":95,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"5fa3e096-a524-4e97-b30f-84d1ba53dfa7","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":95,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"13e8e755-5fb3-40b4-bfec-4d53ba3c8466","block_type":"box","text":"II-64","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"30d9384b-4a0e-4d46-bf03-a258b435b3b9","block_type":"box","text":"NM1026U-5981128-95/232","page_number":95,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"09283434-f385-4e76-b135-26a6071a8ac1","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":96,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"a1a3460f-8cb0-477c-8702-7f5e13b8d752","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":96,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"e4bcb3f7-764a-45b9-9734-11fdcc732657","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":96,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"8af02306-a758-4e6d-817b-e07a33e141e1","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":96,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"f3f5d2d7-0cc9-4c04-b948-6ad47c2cb3d9","block_type":"box","text":"obligation. A Fund may, but is not required to, purchase credit protection against the default of the issuer. When the","page_number":96,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"3e3de059-79f2-417e-a047-6b8502693263","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":96,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"901344f9-4ab9-47d4-a6b6-457d74f4f768","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":96,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"157b5e65-bec6-438a-ac0c-be8d4140c2c3","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":96,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"94c7574c-659e-4e90-92dc-e53ad3319332","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":96,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"2a95c52e-7499-414a-b4cc-6bee9308108f","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":96,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"077c0c5b-8468-4559-a3ad-e68045b3c1af","block_type":"box","text":"Portfolio Turnover Rates.","page_number":96,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"fbd82149-6da6-4a9c-86f3-7c1b10cdcd1f","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":96,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"00d05b84-221e-48ee-8d66-69ea5d961073","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":96,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"095d2f3b-60c8-4ef7-8330-3e3a62a24098","block_type":"box","text":"Funds will use an approach to investing that is largely a passive, indexing approach, such Funds may engage in a","page_number":96,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"7e39b609-f2cf-489f-8273-18361febb5ce","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":96,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"6664bed6-b6ed-4581-af2e-db9e0e194f58","block_type":"box","text":"limiting factor when the Manager considers whether to purchase or sell securities for a Fund only to the extent that","page_number":96,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"183959fa-0647-469f-bc46-eadccf793f02","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":96,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"11c4d51d-b699-48fe-8831-38b0503caccd","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":96,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"3a39f60b-af18-4b70-a965-47d717b95fe1","block_type":"box","text":"i.e.","page_number":96,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"d8343a31-48ae-4167-80b6-baedcc0bb169","block_type":"box","text":", 100% or more) may result in","page_number":96,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"1cd75b58-7919-4003-87db-6483d9bdbd50","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":96,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"d45f1212-de93-4cec-bd78-8096cb05cf90","block_type":"box","text":"costs on the sale of the securities and reinvestment in other securities. The sale of a Fund’s securities may result in","page_number":96,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"44bce621-6c44-4aa5-b24d-0d0d00ce9b5b","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":96,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"d1af0455-a2ee-4965-860a-3b5724f66746","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":96,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"6988d19a-b41d-417d-bf09-3521ba27f737","block_type":"box","text":"Preferred Stock.","page_number":96,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"c5ff0d22-05aa-430d-a987-7edbe50e1988","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":96,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"d75be4f5-572f-4372-8e08-40e422aca18b","block_type":"box","text":"stock in liquidation (and generally dividends as well) but is subordinated to bond holders and other creditors in all","page_number":96,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"be971bae-f281-4da0-9281-cfbf010e3806","block_type":"box","text":"respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element","page_number":96,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"c3d2f615-c558-42c0-b246-d9c116d39815","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":96,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"7ca46aca-72b5-41f9-bfe3-ba2ee3918cea","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":96,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"b40af32e-9b53-4103-8589-1bce0226a987","block_type":"box","text":"other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value","page_number":96,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"c5071d11-ff2d-4ca3-b2b0-d5943c3dc721","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":96,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"65e203de-ede4-46d5-a0ab-fbdd0c72b075","block_type":"box","text":"payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors.","page_number":96,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"34861060-ab8c-44c8-ae02-ee6f201ced50","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":96,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"edca3347-a2c5-4ba7-abdb-8e1044c800e9","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":96,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"85deee6c-ece4-4cae-8e28-b568f1423e04","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":96,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"23deb442-30b9-44c8-822f-0c3c661dd5a6","block_type":"box","text":"dividends that are exempt from regular U.S. federal income tax. Such funds in turn invest in municipal bonds and","page_number":96,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"65064c2e-071c-47b0-aa80-7096e43b5842","block_type":"box","text":"other assets that pay interest or make distributions that are exempt from regular U.S. federal income tax, such as","page_number":96,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"a16d31db-2db6-4e9f-a64f-24ee23fc878f","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":96,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"2307e42e-0059-4678-8bdc-610222c2fd62","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":96,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"7016b5d4-3fe7-471c-acf6-d6bf216867e2","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":96,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"53fe3522-bab7-4ae9-8f38-28c983d4c194","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":96,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"345f4ad8-a8ce-410d-b2c5-62a6fbebf32f","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":96,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"dcfd326d-9e66-450e-915e-3ece3876a8ea","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":96,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"8ff9b7f2-88b2-47ea-9135-8ad29218b6b5","block_type":"box","text":"Trust Preferred Securities.","page_number":96,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"2b761f98-3a14-4883-a8b8-e2debe26c35a","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":96,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"bc5fb307-f877-4443-be8b-e4bed4263450","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":96,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"2676f527-398c-42c8-becb-3f407ce045b1","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":96,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"5f95c609-b771-4e70-b264-47d1f0b84a47","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":96,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"5383564c-7e38-4ccd-abf1-5a077558d7a7","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":96,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"7a4a3434-75b9-4eda-8303-f3e7a3f122e1","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":96,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"de43c2d4-4b15-4449-aab3-b08815d14417","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":96,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"d54897f3-798b-4cc4-a1a0-1920bfc5d337","block_type":"box","text":"securities typically permit an issuer to defer the payment of income for five years or more without triggering an event","page_number":96,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"4dc8beb3-8d6f-4df5-9c17-72610149be38","block_type":"box","text":"of default. Because of their subordinated position in the capital structure of an issuer, the ability to defer payments","page_number":96,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"cdf5f5ee-3613-4fa5-ac98-314b38d11b55","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":96,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"de3ffb52-a6d4-487b-ab63-793dc0feeb75","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":96,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"440e5cd0-d554-4207-8342-a7ef7a5d93ff","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":96,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"1dec1489-c050-4271-8a5b-7aa15b2ae9f9","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":96,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"c4eb068e-4b87-482c-bc7c-7121f3600343","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":96,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"27a78efe-d0bf-416c-87f7-5c392122d537","block_type":"box","text":"®","page_number":96,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"a68fcb36-b462-48f9-b2aa-6aaece9496b5","block_type":"box","text":"”); monthly","page_number":96,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"e9de0da2-e9c1-4d9f-9469-efa1cfcb9d23","block_type":"box","text":"income preferred securities (“MIPS","page_number":96,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"95ee6b57-395e-4b3c-93f8-eef9d658a6d1","block_type":"box","text":"®","page_number":96,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"dc308fe9-2ac5-4b6f-8a89-720f75d8e4db","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":96,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"d2f0f4bd-73b7-448e-903f-1df3fcdb1cb4","block_type":"box","text":"®","page_number":96,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"aab42965-ed53-4de2-929d-e2199a0182a8","block_type":"box","text":"” ); quarterly income debt securities","page_number":96,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"598a5334-3cc3-4e5b-b40d-9eaba6a84d63","block_type":"box","text":"II-65","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3d092878-826e-4d39-8e16-5287eb060ccb","block_type":"box","text":"NM1026U-5981128-96/232","page_number":96,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"23077b97-b983-4e64-8a9d-ad4a17b2b39a","block_type":"box","text":"(“QUIDS","page_number":97,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"b89942e6-d857-47a9-bc5d-0513249ec5aa","block_type":"box","text":"®","page_number":97,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"c356239d-dc0f-4d22-8d93-449f478808ff","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":97,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"3e2e3d1d-c184-4fe5-aee9-5d832e7992ed","block_type":"box","text":"SM","page_number":97,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"e9088dc8-4e49-499d-9bc2-ad4260f89a1e","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":97,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"48225f52-47d7-4bba-a644-afb25504335c","block_type":"box","text":"®","page_number":97,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"21557eee-e64d-419d-a266-84a1b5777842","block_type":"box","text":"”); public income","page_number":97,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"3e9e8ae2-bd76-4c46-a79e-c0cec418af20","block_type":"box","text":"notes (“PINES","page_number":97,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"70d19886-6ca5-43c8-b6a7-df2cc030b818","block_type":"box","text":"®","page_number":97,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"e95ba8f0-cbb3-4996-a96d-1236bbeaab02","block_type":"box","text":"”); and other trust preferred securities.","page_number":97,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"83a88a6b-efa3-4e28-b633-e32009fdaef4","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":97,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"8b026e3b-fa4e-4b13-a5c4-834cd37b28fa","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":97,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"c8901785-d1f2-402d-9e09-cd2dc63ae3c3","block_type":"box","text":"the issuer’s option for a specified time without default. No redemption can typically take place unless all cumulative","page_number":97,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"25ef6aa0-9a80-417d-9811-d5fe24686bd8","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":97,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"3cb422c3-1865-4c09-ba1f-5f5efd8f4319","block_type":"box","text":"regard to whether all payments have been paid.","page_number":97,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"78f63b79-32be-4711-92af-64581d85d02a","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":97,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"8980709c-e01d-45d5-b38f-012ed7e6712b","block_type":"box","text":"companies and are not a direct obligation of an operating company. At the time the trust or special purpose entity","page_number":97,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"2f7909f6-c700-49d4-ad6f-62b4d9f378b4","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":97,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"6f3d0d46-e521-4ea4-a08c-c7094181275d","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":97,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"c5ce5aa7-14a0-4e6a-b992-7d8f7ee7d1df","block_type":"box","text":"purposes the interest paid on the debt held by the trust or special purpose entity. The trust or special purpose entity","page_number":97,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"7687ea2b-9547-4b76-9dd2-abdba59d4fd3","block_type":"box","text":"is generally required to be treated as transparent for U.S. federal income tax purposes such that the holders of the","page_number":97,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"29268fb9-3646-4512-a81b-32b046adc0a9","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":97,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"b75e1f53-5ef1-4081-8e4c-e32aa327756c","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":97,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"d78a50fb-268a-4c90-be5e-f595d625e3ee","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating company’s debt","page_number":97,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"6f2b037b-058a-47a4-94b8-4d7855199e1f","block_type":"box","text":"and would have priority with respect to the operating company’s earnings and profits over the operating company’s","page_number":97,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"d762f09f-79cc-441b-89c3-107e57a66d29","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":97,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"3fffce9c-078e-4fab-8b5c-59d10aa54336","block_type":"box","text":"Typically a preferred share has a rating that is slightly below that of its corresponding operating company’s senior","page_number":97,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"e5da47bf-65c1-4be5-8e39-be9a6574346a","block_type":"box","text":"debt securities.","page_number":97,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"e5d61947-05aa-4707-b4ba-d29629f1d62f","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":97,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"6a1ce9ab-c78f-4087-8be8-5d3b5e68c33d","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":97,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"0d9c69f7-21f7-4322-98b8-7ab151c2e235","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":97,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"237c1ba9-1f6c-4fd2-9a36-767cb3c19165","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":97,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"5b1a8527-50b1-4c35-8c6e-3df94a583c6c","block_type":"box","text":"geographic areas or in specific property types,","page_number":97,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"c4b4521e-7f43-44b3-a832-c99f94771e98","block_type":"box","text":"i.e.","page_number":97,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"96fd7853-d6c6-43b9-846d-e48f72191b8a","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":97,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"f23ebcd6-8213-40e2-869c-4b8c5bc4c1ae","block_type":"box","text":"buildings.","page_number":97,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"a9774066-40b4-42e1-841e-2ee9bd24643f","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will bear its","page_number":97,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"28a3b73f-2d1a-4666-adb7-1c40e8d465af","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":97,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"984a5595-9908-4eb8-958f-80e0495a104d","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":97,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"2b513ab4-042d-4fdb-9091-52f5ceeb6de5","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":97,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"f9587f87-8cb1-4572-896f-ac7151938a16","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":97,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"98a5ac15-51d6-4077-b639-944c7163a70b","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":97,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"a362efd8-894d-4c1a-b980-aca9eff59cfb","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":97,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"c8e684a2-cdee-4968-8d1b-273a121d77fa","block_type":"box","text":"estate industry in general. The market value of REIT shares and the ability of the REITs to distribute income may be","page_number":97,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"33914e46-b9d3-4245-90af-e1f3dd9494bc","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":97,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"ccd737e3-8b51-4d1a-8d53-11723b355bc9","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":97,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"44b774cf-ba55-442c-8042-1068016477d3","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":97,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"5d69e50a-2432-46b2-913f-ce29ed4794b5","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":97,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"f843d153-2b61-47f6-847d-a5b4f05f70ee","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":97,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"880b670e-e6da-4109-ad34-1d0a0ec8d254","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":97,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"197c2460-7705-4074-804f-b61c0226aced","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":97,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"db23e866-ea69-4973-9528-c4a4f5a1236d","block_type":"box","text":"zoning laws and other factors beyond the control of the issuers of the REITs. To the extent that assets underlying a","page_number":97,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"425e7400-f2bc-4aef-babd-5fcb4718305a","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":97,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"ca1c17cb-94fd-4c10-b4d8-f457475ad0ad","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or return of","page_number":97,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"b8b36fc9-9b6b-48ee-9e53-1ba17e3aa71e","block_type":"box","text":"capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent","page_number":97,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"186d4865-1806-4d88-98c6-b3ee91abb772","block_type":"box","text":"application of the Fund’s investment strategy results in the Fund investing in REIT shares, the percentage of the","page_number":97,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"a263d055-09bd-4501-8de4-2c2ee65f3016","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":97,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"fd322aec-c42f-4fc0-b9df-efcf9f88ab97","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":97,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"2207d2fa-05f1-4c8b-affd-ddd60046c93e","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":97,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"00383e3d-fe89-46c1-99fb-c714c4268b83","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":97,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"f03ef472-7007-40b0-ade0-49a259f49171","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":97,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"2ba49c6a-b08b-4048-8f3f-926f8b9161a0","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":97,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"e69ecc16-6c76-4fa0-a372-0526725baa84","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":97,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"63830bfc-1608-424c-a620-0c84e426952a","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":97,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"d9875476-9619-4360-b458-d1e66b715160","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":97,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"98fc064c-e495-450b-b9fc-5191b4f95c5c","block_type":"box","text":"investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity","page_number":97,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"b5d60e93-f4d5-4200-994b-11ec4eb99c4d","block_type":"box","text":"II-66","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f5be129b-e162-4829-b1d4-44638a2dc876","block_type":"box","text":"NM1026U-5981128-97/232","page_number":97,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0df216f3-8dee-4063-803a-d47b2e254f8b","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":98,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"b191323f-b791-430b-8f62-ca0b6fccc968","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":98,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"e9e41c34-3e74-4124-975f-1fc6aac16306","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":98,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"206552f3-01fe-4d23-a1a3-970737fd49e3","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":98,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"c5d50fe9-f43e-46bc-b7c9-1eb707c2527c","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":98,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"48ff57fa-46ea-4162-8375-a072b74ed637","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":98,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"a57a9b3e-783a-4544-a326-83aff88361dd","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":98,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"6e61fda8-a7c6-4af1-9735-c23b316f8496","block_type":"box","text":"trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger","page_number":98,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"24d850b3-01af-4955-bab8-5a8c1846fe3b","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":98,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"fd3c8cf0-de83-4cc1-9baa-00384c61d092","block_type":"box","text":"larger capitalization stocks such as those included in the S&P 500 Index. The management of a REIT may be subject","page_number":98,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"a3465de4-fe34-4519-b987-3d2978b5f795","block_type":"box","text":"to conflicts of interest with respect to the operation of the business of the REIT and may be involved in real estate","page_number":98,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"67e0d7e4-b486-4dbe-b2a3-010e5778f543","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":98,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"cfaac939-6623-43d5-bf55-b5844b5c89ac","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":98,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"508b34bd-ea2a-4dde-a8fe-3e06f97af671","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":98,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"3dc84895-df08-4155-ac5a-6683ce971d05","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":98,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"0a7436cc-6a7e-4bcd-8ec0-ccc52b12e70f","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":98,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"1fa44da4-5469-4e86-a3e6-6a81449daf4c","block_type":"box","text":"general market conditions, economic trends or events that are not specifically related to a company or to factors that","page_number":98,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"b99272b8-0dbe-4871-930b-210e5ee4cffe","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":98,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"3eb2a5f4-0830-4939-9928-51195cf9060b","block_type":"box","text":"group of countries, region, market, industry, group of industries, sector or asset class. The success of a Fund’s","page_number":98,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"8ae3b25d-f4b7-42c1-8dae-f09609bbd90c","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":98,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"4ba173d8-61b5-4cf3-a036-bc18df8b5488","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":98,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"75bd2bf9-fc18-43fc-a2a7-4c0a48674ef0","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":98,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"5e7a7075-d456-4d2d-b2f8-eec70aaed157","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments. During a general","page_number":98,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"66e6b588-2c37-4f1d-82cb-59ee82329e99","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":98,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"ceda2d89-3d7b-4040-af8e-e1cef28df21c","block_type":"box","text":"affect the level and volatility of securities prices and the liquidity of a Fund’s investments, which could impair the","page_number":98,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"9d941395-865d-4ab0-964b-eaa9c680c1a5","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":98,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"d5ac00dd-6dc5-4484-a086-7240f6ac5478","block_type":"box","text":"affected by the level of volatility in the financial markets; the larger the positions, the greater the potential for loss.","page_number":98,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"5f9e76a4-3495-4ddd-a75e-2fcd2b50ae95","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":98,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"c90c08ba-1100-43b2-92fe-fc69ff58a9c3","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":98,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"e98259c7-c0f5-4882-81aa-a6888d7c2bc3","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions and there can","page_number":98,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"4dd3d0df-1377-4ee6-875e-f3aedb8e9fb4","block_type":"box","text":"be no assurance that a Fund will not suffer material adverse effects from broad and rapid changes in market","page_number":98,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"96f78a35-638a-4aa9-bbd8-8f9e52a1bf8b","block_type":"box","text":"conditions.","page_number":98,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"23728323-1fab-4de6-92d9-ed0fbb676771","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":98,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"9a4242c4-f918-4692-917e-616cac0a0242","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":98,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"60a7070e-7be0-4165-b587-24df6eea6515","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":98,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"452c209c-b3c3-4b48-a64a-9eb82104ef00","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":98,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"54125628-f43f-4d77-aa41-03f88d19b1de","block_type":"box","text":"of these policies is still being considered, but the equity and debt markets may react strongly to expectations of","page_number":98,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"1956444d-4856-484c-aa37-568bc35adc39","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":98,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"bd92160d-9ec7-46ce-9593-ba87fa87a825","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":98,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"23d86e34-b420-48d8-9b1c-2d0a9c228c29","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":98,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"170e2ce9-9a4f-4b82-8678-3315fee35d20","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":98,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"248f81fa-25f2-4c42-b2f3-7f5200050c1e","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":98,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"e6e54a42-076e-44c4-aa59-9e28cf871ab1","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":98,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"7dd1e3f3-ca4a-44fb-b010-43a1bcbd2e68","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":98,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"d5988c16-e982-4de0-962d-d4c0ac21cb17","block_type":"box","text":"affected by such events.","page_number":98,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"dde1ad31-29de-490b-a994-1125339ab02a","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":98,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"192523ef-12a3-4d2e-996a-daae40c874e8","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":98,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"2671e502-a7d9-4a8f-a57c-d7e31138f81a","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":98,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"cbc8d094-9faf-409b-a659-87639835a530","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":98,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"ad2d6789-f998-49b7-a1be-f1468de526cf","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":98,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"ff183bc7-9293-4ccc-b044-7b03e802a2f2","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":98,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"79fcfb84-8d04-4d24-a72f-79ab56887284","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":98,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"f5f885ca-803b-43d4-9842-c044a151eeb4","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":98,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"521d0124-a1d9-4cf5-b64d-1fb0267d7685","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":98,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"fa1bcae4-4133-4e3d-bd83-06bc144a4229","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":98,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"b3e54730-caf5-470f-8a3a-576d3142ee3e","block_type":"box","text":"branches of the U.S. Government, the U.S. Government’s inability at times to agree on a long-term budget and deficit","page_number":98,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"cd3110d5-f0c8-452c-9166-2f4701ccaa2b","block_type":"box","text":"reduction plan, the threat of a U.S. Government shutdown, and disagreements over, or threats not to increase, the","page_number":98,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"fc2af221-2605-4cdb-aaa0-ab3daa485c21","block_type":"box","text":"II-67","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6ef5884f-52d2-4624-8362-61b37f800270","block_type":"box","text":"NM1026U-5981128-98/232","page_number":98,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"105f3ec9-ef13-484b-aed0-873800e87c28","block_type":"box","text":"U.S. Government’s borrowing limit (or “debt ceiling”), as well as political and diplomatic events abroad, may affect","page_number":99,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"9ce965fb-1fd3-4db8-953f-99bc96556f92","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":99,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"9e5da2b7-2c63-4cda-a821-97d0941be90c","block_type":"box","text":"suddenly and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns","page_number":99,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"c9ecd930-8950-45b2-bb96-b236ef78d31a","block_type":"box","text":"about the U.S. Government’s credit quality in general, could have a substantial negative effect on the U.S. and global","page_number":99,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"53e8bcd8-f434-488c-813b-f4fb9e230c8c","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":99,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"44ee67a5-995f-4128-9ba9-6fd0d5de51bf","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":99,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"0beebad2-90bf-449a-b7cf-d7f2bcf146c3","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":99,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"9a326e71-caee-4181-8206-3dd410c56c37","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":99,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"9423105f-a123-49b9-a23d-fbed79239310","block_type":"box","text":"unprecedented event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":99,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"7c569ac6-a874-4013-9022-33474de9a99c","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the Fund’s","page_number":99,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"ee168084-1ba5-4168-a185-8e547aa304d3","block_type":"box","text":"investments.","page_number":99,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"98ee2961-4827-472e-b861-c0f75a5b9387","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":99,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"beb42047-5e9c-4f05-9415-6b58cb026675","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":99,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"f72af803-7eeb-424c-bc81-9b5cba43e323","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":99,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"717e02df-e7d1-4bb9-b4d9-e434b9fb4cb0","block_type":"box","text":"in the future, could affect the economies of many nations, individual companies and the market in general in ways","page_number":99,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"78b66265-51cf-4397-a9de-557a3e98f0be","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":99,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"025af625-2685-41ef-821a-c6cbc46e1aec","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":99,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"2693e155-c6ec-43f1-872b-bfb38f9eb399","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":99,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"69cfcae6-6ec9-48ae-ba06-e22196b44a02","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":99,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"f12dda59-3bd8-4531-88bb-97a4603ff08e","block_type":"box","text":"Legal and Regulatory Risks.","page_number":99,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"3f356f04-921e-4965-8301-104f77c38344","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":99,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"b96e85a0-04d7-4d3b-becc-d37ea5ccfa18","block_type":"box","text":"jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some of which are new and","page_number":99,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"7c6027e5-17b5-48d7-8abf-c874f9f33940","block_type":"box","text":"evolving. As a result, the Funds and the Manager and its affiliates are subject to extensive and sophisticated legal,","page_number":99,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"f58e12e3-4a05-4dd4-9783-bb39524463e7","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":99,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"0ae574b4-f69c-4872-af45-9c8724b2f952","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":99,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"35189910-563a-4e3a-99b7-4ecee8340116","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":99,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"901dd9df-0cc7-40df-87e5-702f204e7694","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":99,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"0c22d310-a92e-431f-b193-d842a5b3df24","block_type":"box","text":"changes to comply with current and/or new regulations applicable to the Funds and/or the Manager could have a","page_number":99,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"233cd22b-6d62-4d16-a75d-fec7fb784973","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":99,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"20f4db8f-f77e-4276-ae00-8bc5d47f60fe","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":99,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"f454f197-5454-40be-851b-d41304818985","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":99,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"c89bf935-bf89-4ca0-8f52-9a44b40018aa","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":99,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"805c4f10-f2ae-43a5-893d-da789b39e8a1","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":99,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"97c5313f-ad01-4b84-aea0-6a027f4481ee","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":99,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"1321ab66-ddc0-4d55-a67c-dfb42b4c76d4","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":99,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"5ec1b21d-c3d9-439d-b7a5-034edabdade3","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":99,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"2397d55f-a3c8-4b94-b264-89197759089d","block_type":"box","text":"Union, and the risks associated with trade negotiations between the U.S. and China, could affect the economies of","page_number":99,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"3df04432-45bc-438a-8bfd-26f6cdc7a4ae","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":99,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"3e2a5a6e-2e05-42e7-bd36-d457019d70ea","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":99,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"1c3ea37c-bd49-495b-9fad-81fd3d107c43","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":99,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"0fa8cbb5-7b74-4e9d-8033-90782cd1095a","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":99,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"df482bcf-c16d-42b1-ad49-71738decdc56","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":99,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"a71af485-93f5-4a49-a495-6f12b62a8697","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":99,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"fe7df54c-d931-4427-964b-9cd546e7524e","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":99,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"fb3d5355-6373-48a1-9c37-307f00234b77","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":99,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"086ee1bf-72ae-4911-a2ad-f7204a20db12","block_type":"box","text":"Geographic Risks","page_number":99,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"6aa216f0-d0f7-4601-951b-ed46bfa6722b","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":99,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"971b9422-c229-4d46-a084-3401a5a96a26","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":99,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"113319a8-761e-4b4b-a334-b7783c2cca1e","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":99,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"e6780e39-b105-40c0-a7ef-3d1306cb508c","block_type":"box","text":"addition, issuers may be impacted by security concerns with respect to a country or region, such as war and other","page_number":99,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"346430b2-b16b-43ef-ba50-efab33aefd7f","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":99,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"42688948-f480-4f28-bcf1-38c6e4a333b8","block_type":"box","text":"affect the issuers, markets and economies to which a Fund is exposed, which may adversely affect the value of the","page_number":99,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"1c43e129-b3e5-4545-89ed-fe52dd79bbde","block_type":"box","text":"Fund.","page_number":99,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"fb060d4d-e6c3-4b3a-bbf1-905e61b00f96","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":99,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"67d0545d-08b9-4afb-a087-f19ed5957ce1","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":99,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"0db14f40-48f8-4ffe-bdd0-c2bde60bdb90","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":99,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"dc3f9a94-aaf4-475f-8fb0-609d476a4e9c","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":99,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"0d08d415-035d-44eb-8f1b-46e490afd7ab","block_type":"box","text":"or any other changes or reforms to the determination or supervision of a Reference Rate could have an adverse","page_number":99,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"28412197-725b-47b7-92f3-4e990b897723","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":99,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"3c823d56-5daa-4c4c-a0fa-13c4a52c0a51","block_type":"box","text":"II-68","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7be4fefa-1f3a-4ab0-8d5b-0a1a457c6206","block_type":"box","text":"NM1026U-5981128-99/232","page_number":99,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dc2706d4-2526-401a-a915-374cc835d9d5","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":100,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"f779177d-30ea-4b6f-8226-a84be272071e","block_type":"box","text":"imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or net","page_number":100,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"2edefe27-213f-4fb0-92f3-ceb510715413","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":100,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"335e4353-5958-4103-97c2-52c87411cad0","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":100,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"265ccec3-b67f-47bd-9b1b-574b1f69ac73","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":100,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"ab6f9712-ee2a-4f60-bcb7-6555635eac44","block_type":"box","text":"derivatives. Instruments in which a Fund may have historically paid interest at floating rates based on LIBOR or may","page_number":100,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"dd36b125-60b3-486b-af55-584da58881dd","block_type":"box","text":"have been subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a Fund","page_number":100,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"09f19579-9478-4fa8-a2e8-f1a9e5a6af2e","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":100,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"20320abf-76e7-4c59-940f-4b1541c756d7","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":100,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"4415aa71-d8d7-475c-b2dd-4bb26ad93b28","block_type":"box","text":"last published on a representative basis at the end of June 2023. Alternative Reference Rates to LIBOR have been","page_number":100,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"021405f3-2948-44ff-9d1c-2c1512dcd09f","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":100,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"f5a2cb93-9792-4725-8e81-f9e4470d70bb","block_type":"box","text":"e.g.","page_number":100,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"31475bb2-529f-475b-8740-e7e2eb2dd8a4","block_type":"box","text":", SOFR for","page_number":100,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"02f7d054-895b-4d1c-99fb-68f430a5c6d4","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":100,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"c36adf7b-f706-4e4c-9e97-14598f8fc8c1","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":100,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"8010a1df-8601-4327-8e50-99a18099c18f","block_type":"box","text":"impact of the transition on the Funds or the financial instruments in which the Funds invest cannot yet be fully","page_number":100,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"57fd3234-4d91-4b7d-840f-b69cbd075d09","block_type":"box","text":"determined.","page_number":100,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"a9718583-e1b4-4814-8921-b709ea61dff3","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are","page_number":100,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"0cacab29-146a-4aa0-879f-5d2fe3bab6e6","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":100,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"fdebd2c9-0997-4fe8-8ead-b7d867a7b6b8","block_type":"box","text":"various sources. For each trading day, SOFR is calculated as a volume-weighted median rate derived from such data.","page_number":100,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"83cccdc8-53a4-4f12-bc0e-e1aaa29485e4","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":100,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"ac5f67f6-40ee-42e7-b032-33eae9951df6","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":100,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"38304a8c-65dc-4290-8888-af4a91140a0b","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":100,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"766698cf-3dd4-472d-acd8-d090a71c3e1c","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":100,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"958dd434-c79a-421b-b0d6-61fb8b2ab7db","block_type":"box","text":"In contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is","page_number":100,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"f84b2520-7705-4bf9-980b-0ed3a3a969ea","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":100,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"f30032f5-ef6e-4d60-9269-78906b32440d","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":100,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"43e1d0db-53f2-4044-a067-8137148e8670","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":100,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"d15dc4dc-5c94-4a0c-af2a-78a28ccb8d39","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":100,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"f14c9ee1-2bdf-45c7-a5d3-b4df60f55d8f","block_type":"box","text":"rates will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April","page_number":100,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"9317167d-8d76-43f8-8ac4-1360e7fba89e","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":100,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"eb807a26-1dcb-4a70-9b5b-07de723edb48","block_type":"box","text":"history or otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or","page_number":100,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"56bd5c91-0810-4f52-a0c3-ef5a83a1837e","block_type":"box","text":"other rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner","page_number":100,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"82b6e004-7ee5-4625-a560-befa1377c526","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":100,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"c933cf93-89fa-40b3-9472-75a565df1626","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":100,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"f9076cc5-2c9c-4bfc-9b94-ae995eeaefaf","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":100,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"0ec34232-325e-4d00-86be-f1334896acf4","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":100,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"41631151-ef0a-4cc1-80f9-9295f4b234d3","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":100,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"6bc93286-fd8b-4b03-b749-b7517c429673","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":100,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"6288e6cf-b7b4-4d83-88b6-6d15d407dbde","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":100,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"6e1d1a9a-4db0-490c-9238-1cc7391ee3a4","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":100,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"7dd63070-f4e7-43fc-9f4a-758df2d442e9","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":100,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"710c26c9-381f-40bb-9306-6bd658489200","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":100,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"e9abdf6a-afa9-4b94-84a2-3a62b8e2eb18","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":100,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"473df822-0011-4fa5-b9db-7f9eac5a6d10","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":100,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"b57fe3cd-d05e-4b9a-b8bd-fda1067807ca","block_type":"box","text":"consequences which cannot be predicted.","page_number":100,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"bf9ec0da-9cd1-4d42-81d4-b5ff062d4eef","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":100,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"43db0327-d562-4548-8642-e4f28ec81974","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":100,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"264dc0bb-c7fa-4ddd-830b-8cb1601c87c3","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":100,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"fbe9ea74-011b-46f1-820d-c68c1870b3d8","block_type":"box","text":"the Fund at a mutually agreed-upon time and price in a specified currency, thereby determining the yield during the","page_number":100,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"520badc9-1334-4974-97b1-180805a84a73","block_type":"box","text":"term of the agreement.","page_number":100,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"49ea0eed-c7ac-4a3a-96b9-f2ff8a67942f","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":100,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"328521c3-9f43-4ff1-93e3-3107e564bcc4","block_type":"box","text":"that securities are owned by the Fund and the purchaser receives any interest on the security paid during the period.","page_number":100,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"db57d25c-e2e1-4ac3-86ab-f81eb64ae073","block_type":"box","text":"In the case of repurchase agreements, the prices at which the trades are conducted do not reflect accrued interest","page_number":100,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"581aaf3c-2bc7-4f25-a7d6-b8269d4aa30e","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":100,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"690a31cc-5641-43bb-8456-4be6207e41fa","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":100,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"f78481b5-3111-4061-9d92-a8800399d40c","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":100,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"820621b3-b5ff-4edd-adcf-b65c6503a54e","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":100,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"63d0f697-8f83-4685-8f33-08ed7003db54","block_type":"box","text":"II-69","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"afb2b766-1a31-4453-9837-94e9796ad27a","block_type":"box","text":"NM1026U-5981128-100/232","page_number":100,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"63a4c98e-5dfc-4710-8b5e-9cb0191fa603","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":101,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"31cb8bbd-9e46-440e-97fe-f27328c96bba","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":101,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"d291b2b9-42f4-44f4-a311-b8ce86695b41","block_type":"box","text":"currency fluctuations. However, in the event of a default under a repurchase agreement or under a purchase and sale","page_number":101,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"46c5b6cf-62d8-4957-82a6-50cf509d2ec9","block_type":"box","text":"contract, instead of the contractual fixed rate, the rate of return to the Fund would be dependent upon intervening","page_number":101,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"119f6f46-cec2-4119-a855-16ae429e731b","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":101,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"53c0e3b0-7f49-44ac-bd67-bb1d9dbb755b","block_type":"box","text":"securities. In such event, the Fund would have rights against the seller for breach of contract with respect to any","page_number":101,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"22adfe4b-f50d-4032-9829-71473bc5381d","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":101,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"98efa46b-8ba2-4947-971e-595f20d7f0a2","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":101,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"57454a4c-3bc0-479a-95ed-fe5b9c19c301","block_type":"box","text":"longer terms, and may be construed to be collateralized loans by the purchaser to the seller secured by the","page_number":101,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"497a10f4-c6c2-4563-9b30-ae28d9b5f3f7","block_type":"box","text":"securities transferred to the purchaser. In the case of a repurchase agreement, as a purchaser, a Fund’s Manager or","page_number":101,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"e4a1968d-4b0e-47ad-9716-ff7bf06598ed","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":101,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"46888560-0867-49cb-89b8-ff99f55d148f","block_type":"box","text":"collateral if the market value of the securities falls below the repurchase price at any time during the term of the","page_number":101,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"cf52ec44-aaea-4e04-bff9-7d10eba1131d","block_type":"box","text":"repurchase agreement. The Fund does not have this right to seek additional collateral as a purchaser in the case of","page_number":101,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"de829532-38c9-4c2b-a1db-5cc2638c5e47","block_type":"box","text":"purchase and sale contracts. The Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities.","page_number":101,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"7b9c7b95-db52-4cd5-9c99-3df5b9b957ea","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":101,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"409fb1fa-4776-42b4-b42d-b871d0fde40c","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury book-entry system","page_number":101,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"df84586b-218e-4bd6-910e-d77712eb1529","block_type":"box","text":"or by another authorized securities depository.","page_number":101,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"ba6ad40e-36f6-417d-8f5c-c39d112ed63c","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan, the","page_number":101,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"73201445-1747-472c-b79a-c756300c8c17","block_type":"box","text":"underlying securities are not owned by the Fund but only constitute collateral for the seller’s obligation to pay the","page_number":101,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"28b3c34e-0bfb-40ca-bbfc-04390209a643","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":101,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"d30093f2-dd4d-4a91-b75d-08c9af049178","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":101,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"bf710fa3-8bc4-4ab6-bfdb-9fd04404fda6","block_type":"box","text":"applicable bankruptcy or other laws, a Fund’s ability to dispose of the underlying securities may be restricted. Finally,","page_number":101,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"5e46f527-7293-4c9f-856d-5318ee49cf95","block_type":"box","text":"it is possible that a Fund may not be able to substantiate its interest in the underlying securities. To minimize this","page_number":101,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"643fb9a7-e2f5-4b3a-af60-263fc16057e9","block_type":"box","text":"risk, the securities underlying the repurchase agreement will be held by the applicable custodian at all times in an","page_number":101,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"e524f3a6-47db-4664-87ee-eb15f4e57444","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":101,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"1338e5fc-490b-4fb7-bd87-69cb8f356678","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities are less than","page_number":101,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"c05b3f85-45f3-42f0-8ac4-6d193019dfb5","block_type":"box","text":"the repurchase price.","page_number":101,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"882fc1df-f769-4443-a814-f1baeb4156cf","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":101,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"f2a8f208-74e1-4634-9ef0-bc8ead6f4050","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":101,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"cab5d26a-2a60-478f-a36b-3f6e31e13c35","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":101,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"54964737-c7ff-4bb3-9586-e1d984e92ffd","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":101,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"43392b44-d8ad-4b93-adaf-35e6490c78f6","block_type":"box","text":"strategies without the repurchase obligation.","page_number":101,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"80dcaa29-e0fb-4685-a4ac-740a0bd3fca5","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":101,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"931427f7-cba9-4a5b-854e-888039313c55","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":101,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"01c0d5ab-1dbf-4336-ac8d-1af43525e05e","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":101,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"9174cb1e-ee50-41d8-bc4f-33f17de7fc8b","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":101,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"5e43a135-ee16-4516-a8ee-ed3c28050f21","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":101,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"14e5cd57-c3c4-4f20-9f15-fd2978fcb051","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":101,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"391f29a6-7d3d-4aec-b0b1-90330b6f0755","block_type":"box","text":"i.e.","page_number":101,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"f8d35fa5-0bba-4553-8a88-cdc7f4273893","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":101,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"7ae34434-1f65-4288-ab36-da08b2744fe0","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":101,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"61a85657-30c5-4de3-a8fa-f9193a53abd4","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":101,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"2c552d67-8965-437a-bc7c-be1d90cec213","block_type":"box","text":"and income involved in the transaction.","page_number":101,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"aafca9d6-0134-43e0-92f5-fa1f25305cd7","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":101,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"906db6fd-767d-41cc-8f71-d34bcfc0da48","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":101,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"27f90790-1748-4d2c-a0c2-14efc27642ec","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":101,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"74d1f003-62d8-44c1-9154-d2b67c7cfae9","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":101,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"a5b46ff8-25ed-42be-ae35-4f1f92c2fab0","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":101,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"c4f1ab88-8636-413a-bb82-87b8d0a9af31","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":101,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"3e6ebe95-3815-4db6-b747-5341fe063def","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":101,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"ccb202ac-c32c-4c8a-b736-21249ccbb156","block_type":"box","text":"contracts or to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":101,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"e703ffa8-e688-41a4-b6ad-a01c95f69b45","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":101,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"d66fe22c-bfa5-4e84-98d0-baa7f69f940f","block_type":"box","text":"Compliance with these rules is expected to be required by the middle of 2027. Although the impact of these rules on","page_number":101,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"6e2851f0-7a75-410e-aae2-4ef78f7632e9","block_type":"box","text":"the Funds is difficult to predict, they may reduce the availability or increase the costs of such transactions and may","page_number":101,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"199ff4f1-ff1d-4126-88a0-fb50180c3d14","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":101,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"eeb8b22c-302d-4e92-bc6b-6a4f77b37491","block_type":"box","text":"Restricted Securities.","page_number":101,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"557d61db-1476-4d95-a9fe-ae8b030400ab","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":101,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"b4bb58c9-59f5-408e-9c04-74e8f7e90b1b","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":101,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"437fde32-6e95-4aef-8099-ec8183c9af89","block_type":"box","text":"II-70","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6428732c-9ccb-4c02-b2cf-ad8a8a78d469","block_type":"box","text":"NM1026U-5981128-101/232","page_number":101,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"287490d4-a145-4791-8bff-ecb9e94c3a28","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":102,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"f7c6d4be-f6fb-4ae8-8981-1b7ec61f07d0","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":102,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"78f86fcd-1c8a-4e3a-9ae0-135fb66e7b8b","block_type":"box","text":"listed on an exchange nor traded in other established markets. In many cases, privately placed securities may not be","page_number":102,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"ed6b1067-1e0e-408c-b6bc-e6cf2d6ba5a9","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":102,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"2603c4d3-0984-4e68-b201-a7c54cd14d43","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":102,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"3de24fb5-72cc-4895-ae15-23e1483bcf74","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":102,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"eba2f8dc-9167-4484-a8a8-0c3f13f9791c","block_type":"box","text":"are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that a","page_number":102,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"73daf124-1022-4be0-9485-42db55422f0a","block_type":"box","text":"Fund may not be able to resell some of its holdings for extended periods, which may be several years. There can be","page_number":102,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"f3308613-c506-4a9f-b763-b9ca0b0b01de","block_type":"box","text":"no assurance that a Fund will be able to realize the value of such restricted securities in a timely manner or at all. As","page_number":102,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"d2668ebe-fe2a-4cf8-907d-a735af7a613c","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":102,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"4f009e1c-4260-4cbc-9971-2f782d18484d","block_type":"box","text":"restricted securities may be deemed to be illiquid investments or less liquid investments and may be more difficult to","page_number":102,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"da870d81-0c61-4053-8958-22b61ea545cb","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":102,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"47a91252-10e6-4e37-9f6e-bcaa703ad711","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those originally paid by the","page_number":102,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"9b94042a-e78f-455d-9ec3-a1819efabfdb","block_type":"box","text":"Fund or less than their fair market value. The amount of any discount may vary depending on the security type, the","page_number":102,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"3db4e8f5-17a4-42ac-9b11-9e4e82da3e6c","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":102,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"a53561f2-8042-4d1c-90cc-1d697fc49f7f","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":102,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"0a6d9112-294f-4762-80f8-102587ceac7e","block_type":"box","text":"listed may not be subject to the disclosure and other investor protection requirements that may be applicable if their","page_number":102,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"37753715-6095-42d2-a2ca-f26c1253354b","block_type":"box","text":"securities were publicly traded. If any privately placed securities held by a Fund are required to be registered under","page_number":102,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"5b122b14-411b-4206-817b-5672eb897aed","block_type":"box","text":"the securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the expenses","page_number":102,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"af09ce6e-4e0e-4c4f-801e-424aeb292588","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":102,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"44b8932f-348c-47f2-939c-26a5128366fd","block_type":"box","text":"between the time the Fund decides to sell the security and the time it is actually permitted to sell the security under","page_number":102,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"eb2e4e39-b362-4bfe-bed0-1e307bc2e972","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":102,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"de864682-8736-4f1f-8966-ffd677a9c7ac","block_type":"box","text":"obtain less favorable pricing terms than when it decided to sell the security. In addition, the Fund may be deemed to","page_number":102,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"fd0d7b4b-8c2d-4e9c-b8cd-66e611f0cd63","block_type":"box","text":"be an “underwriter” for purposes of the Securities Act when selling restricted securities. If so, the Fund may be liable","page_number":102,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"f435dcf4-c98b-4d5b-8a09-4732dda9f2c4","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":102,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"089c51d8-1e66-4a88-92e3-7643827d7296","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":102,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"026005fb-c4ab-49c5-8639-3a7868b9b543","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":102,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"7a154ab7-7351-406a-9db6-dd8c0bcc8385","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":102,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"086cfeb6-d8db-4fbc-8ffe-7dae6d064777","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":102,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"dcdaf2ac-0bd5-41e5-8b4b-b6ea0753a590","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":102,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"5503c7d4-06bd-4fdc-bf33-3b64e581ac9a","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":102,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"1493794e-5074-4872-8ce1-87cfc4de53c3","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":102,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"a900c0a8-50a4-4f81-9197-6bf6395c2fc9","block_type":"box","text":"operations of such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":102,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"8fbdf0ab-0c7d-4a0b-83a4-b8957eba66b7","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited product lines,","page_number":102,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"32d18fb0-d8ee-4362-885f-1bb808ca91d7","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":102,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"2b89e063-0c78-4e6d-8267-2a5b58a146a4","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":102,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"f33405c6-5a1d-4b24-ad42-b970599f68ee","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":102,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"bc7beed9-a939-457b-bc23-17f47d33dc75","block_type":"box","text":"Fund’s net assets grow from new or additional investments made in the Fund by other shareholders. The issuer of a","page_number":102,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"78ea2525-f628-4255-9067-7d3bd62e40a2","block_type":"box","text":"private placement may later register those shares for public sale in an IPO, but there is no guarantee that an IPO will","page_number":102,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"4715b87e-8882-4520-a56e-eb6515bdb00e","block_type":"box","text":"ever be completed. Even after an IPO, there may be a limited trading market for securities of that issuer, including","page_number":102,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"a7101b90-4ed0-49ef-9a3d-21b62ae8f4b9","block_type":"box","text":"any direct investment by a Fund, or the Fund may be subject to contractual limitations on its ability to resell its","page_number":102,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"f42b9a0a-ec98-4a55-b6b8-9ee7d834280d","block_type":"box","text":"existing securities following an IPO. The inability of an applicable issuer of a restricted security to complete an IPO or","page_number":102,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"7d8baaf2-1739-479d-abb2-258ca7cc239c","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":102,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"a10e8fd2-0bdf-4b57-83c3-1d3bc2d28760","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":102,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"7be63cd7-9af1-4607-8d71-dae7e891317c","block_type":"box","text":"such securities, a Fund may obtain access to material nonpublic information, which may restrict the Fund’s ability to","page_number":102,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"8ee49ead-6b4c-40f4-824a-60225d1c034c","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":102,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"11e16e6e-5641-4199-970b-1d481c1d6fe9","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":102,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"69140cea-d41f-41e2-8213-e181d267dd53","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":102,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"2e55a6e9-51eb-434b-ae3b-4b323b479fa3","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":102,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"d9c59e9e-61e1-40c4-9e30-4adbab4757b7","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":102,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"8375e0b9-7039-4814-97c7-98d7e2ccf42e","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":102,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"85a45b45-347d-471d-b062-4659c97ca3fb","block_type":"box","text":"especially as that Fund grows in size.","page_number":102,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"32c5e30a-0252-4172-8663-9312f67d2f36","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":102,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"7a7aad27-5a79-4a45-adf1-aede00bd05bf","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":102,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"c07e6095-7dc1-42f6-8923-0b347c8d4f1e","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":102,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"a4998592-67db-4e5a-b28e-a52f73ec5279","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":102,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"d2806deb-8975-4bce-8140-1e72622a5ec2","block_type":"box","text":"determining the fair value of investments that do not have a readily available market value, the fair value of a Fund’s","page_number":102,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"ebb648a3-51e6-418d-a194-34362ce81261","block_type":"box","text":"II-71","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f4e4885a-b0c6-43b6-8cca-92f96437fa26","block_type":"box","text":"NM1026U-5981128-102/232","page_number":102,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"41f368b9-3e39-4508-8087-cf52478d3e2f","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":103,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"8b696f97-68dc-4225-b576-e1507d7a3578","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":103,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"ca78c9d9-9dd1-4893-89c3-8690e0ce1b4b","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":103,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"6aab8f6d-37cf-41a4-a923-ed0cd7b5e558","block_type":"box","text":"Fund’s shareholder transactions being effected at a NAV that does not accurately reflect the underlying value of the","page_number":103,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"70606529-1d0a-4538-8434-a6446befdf2b","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":103,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"a78fe713-9ea9-4a2f-83bb-822b5c69ff4e","block_type":"box","text":"shareholder arbitrage. The values used by the Fund to price its restricted securities may also differ from those used","page_number":103,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"894e9dc3-58f7-4bc8-ad6b-c2f760fcbe4b","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":103,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"0280a278-0131-405a-a6cc-1ad4053e6ff6","block_type":"box","text":"changes in the market environment and other events on the fair values of a Fund’s investments that have no readily","page_number":103,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"8ec08c2f-f60a-4732-8f5a-4ad9296b5ef8","block_type":"box","text":"available market values may differ from the impact of such changes on the readily available market values for the","page_number":103,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"6c0fdcf3-601f-4dfc-b675-220b19ced6cf","block_type":"box","text":"Fund’s other investments. A Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair","page_number":103,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"c05e9c8b-d701-4a66-81da-b3f5d5f37a66","block_type":"box","text":"value of the Fund’s investments were materially higher than the investment’s actual market or fair value or the values","page_number":103,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"bfd6e832-0654-4567-9fd4-3766d49406a0","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":103,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"909804ad-ee3f-42b5-937a-88d92f336ef2","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":103,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"4c6015cb-bd83-43ab-897a-056cc1e357ba","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":103,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"59595168-6fa4-415f-b6c4-53bbc8b92e10","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":103,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"09aa1454-95a9-4453-89df-67827cfe2552","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":103,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"0646dbd2-4ffb-408f-88e2-c272fb75af03","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":103,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"c94ce821-910b-4d84-b7ed-72d97cb3807d","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":103,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"b9892247-a354-492e-87af-22480ad6cd3c","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":103,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"bdd43fa6-1706-4317-ad34-b15cd3521f0a","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":103,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"3ad17335-3f1a-45ae-8c70-7771ad401482","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":103,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"b716f8f9-e908-4220-ab84-284d22cc9b3e","block_type":"box","text":"of the proceeds will be less than the interest expense, (ii) the market value of the securities retained in lieu of sale","page_number":103,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"b1d7c2ba-7b2d-4707-82bd-b26d19405d94","block_type":"box","text":"by a Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase, (iii) the","page_number":103,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"d606d829-1652-45d9-8b64-df4c1be723b5","block_type":"box","text":"market value of the securities sold will decline below the price at which the Fund is required to repurchase them and","page_number":103,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"fda31b22-c4ab-47b1-bd7d-a1a6e612c627","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":103,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"6b6e068a-5eeb-4ebe-8198-5099998d1380","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":103,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"4bc696e0-328d-4aa3-9092-aea023a47158","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce a","page_number":103,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"480d327a-3f9c-4a49-a8c1-a9f159703f0e","block_type":"box","text":"Fund’s obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse repurchase","page_number":103,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"b57e497e-e254-4782-9252-70e2bc8cf594","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":103,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"92b23b13-e1f3-4c61-ad67-4d66d2f6ed0b","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":103,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"2a269e45-d741-47f2-9b2f-d3e053f4b251","block_type":"box","text":"similar financing transactions (","page_number":103,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"163f295d-a77c-46d5-bd3b-c6b780b78771","block_type":"box","text":"e.g.","page_number":103,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"bdbed987-c2f1-4db3-810a-bcade7cd8629","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":103,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"22054553-283c-4dad-9270-d7ce19c95b03","block_type":"box","text":"the limitation on the issuance of senior securities in Section 18 of the Investment Company Act, provided that the","page_number":103,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"7cd582c2-58b9-47c2-be4f-e20673ca5116","block_type":"box","text":"Fund either (i) complies with the 300% asset coverage ratio with respect to all such transactions and any other","page_number":103,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"39411af7-f49e-45ab-b035-79d5218feab8","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":103,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"8f50a7d5-491d-4de2-9daa-b7e55a367cec","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":103,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"716057f7-8f25-4cb2-a79a-c775f76b2ed7","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":103,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"fda6a8d2-a8d4-47bf-8d3a-dda98686c74a","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the middle of 2027.","page_number":103,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"e58fb32d-defe-4644-b462-13c75bf0f84e","block_type":"box","text":"Although the impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":103,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"57175ebd-5b8d-4ec3-86e1-039515b68f0a","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":103,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"3c5603fe-65c9-4ee0-adad-829ff35eda13","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":103,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"af610532-a64a-4ec4-9244-741b6d15d419","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":103,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"ffbeaea3-78bf-426d-8d09-230a6c07ac97","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":103,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"859e5a9e-5aa4-46e5-83c0-c4bb1802f383","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":103,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"d9c32af6-30dc-468c-8cab-7aff844a3a3a","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":103,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"9156f530-39a3-40c9-a553-2be605449a8e","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":103,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"bf3f43cb-5c0e-42f5-8ee2-367ec51796c5","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":103,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"5b5a6205-0e20-41d8-9229-9a6977f17950","block_type":"box","text":"amounts to be received under such agreements.","page_number":103,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"6779690f-c6e6-49b4-b4e8-3c29eaf889bb","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":103,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"8bc3adf1-afa9-45de-88a3-78241c509093","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":103,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"a8794d7b-ce7e-4cca-8cf6-2a76cbaa6256","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":103,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"2cb14b06-49d7-4a41-8382-52123a4aca9c","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":103,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"b089543b-d892-4435-a684-6b1ac3b55cfb","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":103,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"a1536298-2fb6-4ca1-afda-2fc57247570f","block_type":"box","text":"lose the purchase value of a right or warrant if the right to subscribe to additional shares is not exercised prior to the","page_number":103,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"7ca62b5c-1358-466a-977b-9824399d347d","block_type":"box","text":"rights’ and warrants’ expiration. Also, the purchase of rights and/or warrants involves the risk that the effective price","page_number":103,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"b6a18fae-10f2-4def-8d94-6055974eedab","block_type":"box","text":"paid for the right and/or warrant added to the subscription price of the related security may exceed the value of the","page_number":103,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"a4327c7e-b193-4ec5-99d7-f4224b4862c0","block_type":"box","text":"subscribed security’s market price such as when there is no movement in the level of the underlying security. Buying","page_number":103,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"ef375dfb-a1dd-494b-b117-e4f48eb80ead","block_type":"box","text":"II-72","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8154d1d8-1fd0-462c-a3c1-99fbb52d03bd","block_type":"box","text":"NM1026U-5981128-103/232","page_number":103,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"82f9cbd0-7a52-4d53-aca4-b80844afd008","block_type":"box","text":"a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder has no voting or","page_number":104,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"6db126c3-b552-4135-9857-6073433bada3","block_type":"box","text":"dividend rights with respect to the underlying stock. A warrant does not carry any right to assets of the issuer, and for","page_number":104,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"104e0185-37e8-42c3-9e37-721fc8faa883","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":104,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"79e744fb-5c33-4b4a-8b3d-640d802fc778","block_type":"box","text":"Rule 144A Securities.","page_number":104,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"8849656b-b421-45bd-a310-a8266e608e10","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":104,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"2c7f1787-9b64-4e17-91bb-2180e0d7b773","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":104,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"8b21634d-dabb-47be-bb5a-e377deaa1e82","block_type":"box","text":"Securities Lending.","page_number":104,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"470e187a-9e37-4aaa-b50a-7a218995cb56","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":104,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"d1fd8d05-2895-4351-9a2c-d3fbd414b1c0","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":104,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"dbad1ef3-8cee-4b7e-86e2-39df37900291","block_type":"box","text":"an amount at least equal to the current market value of the securities loaned. No securities loan shall be made on","page_number":104,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"565341b2-f9f5-4330-a709-151b1e243dc4","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":104,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"ad65ae32-a11d-4be9-8c25-e69bc5cfbc81","block_type":"box","text":"the value of such Fund’s total assets (including the value of the collateral received). A Fund may terminate a loan at","page_number":104,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"9841498d-fbe7-4c74-84db-928661f324c0","block_type":"box","text":"any time and obtain the return of the securities loaned. Each Fund receives, by way of substitute payment, the value","page_number":104,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"2d96c14b-a668-43d5-8415-558aa5b469b9","block_type":"box","text":"of any interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise received if","page_number":104,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"9baf3ec3-b06a-46f7-b8ea-becfd9688a92","block_type":"box","text":"the securities were not on loan.","page_number":104,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"7a81d996-5439-47a3-af2d-97e457fc3d58","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee based on the","page_number":104,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"52ff3886-004a-4a2f-a5cd-c301f742e900","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":104,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"657e9088-0801-4bce-b2ed-57c427b03e7f","block_type":"box","text":"reinvestment of cash collateral and the fee paid to the borrower. In the case of collateral other than cash, a Fund is","page_number":104,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"97817c94-14f3-4352-bffe-24d48f5f7b27","block_type":"box","text":"compensated by a fee paid by the borrower equal to a percentage of the market value of the loaned securities. Any","page_number":104,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"0489370d-cf76-4467-95ff-345f4db4fe3a","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":104,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"f9688cc0-429a-4522-af00-dd5079d50cb5","block_type":"box","text":"instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds,","page_number":104,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"2d799596-aeea-413f-89ac-58adcabe485b","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":104,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"b234e652-d5d5-4c85-a684-6c1476c4f15b","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":104,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"7217c64e-9eee-4db4-85fa-7eee90c1871a","block_type":"box","text":"i.e.","page_number":104,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"879e8902-4bee-44e8-a0e6-98b08991bd51","block_type":"box","text":", the risk of losses resulting","page_number":104,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"32df9133-448c-413e-b03d-fe8bd556a35f","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":104,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"254810d6-1dca-49db-8693-d7fdd89932f0","block_type":"box","text":"i.e.","page_number":104,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"9e2abc8d-e9ba-40b3-8ac9-1b1082803d1b","block_type":"box","text":", the risk of a mismatch between the return","page_number":104,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"27bc05e1-ade0-41fa-a8bf-baeb688604c4","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":104,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"a4810c7c-c3bf-4e26-83c3-e18875ef6460","block_type":"box","text":"i.e.","page_number":104,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"28e7a6e1-ca99-4a07-aec9-cf231946a507","block_type":"box","text":",","page_number":104,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"14e100b5-1de4-45ec-922c-369e617818e5","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":104,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"f9317192-270c-4470-a53f-188a35135247","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":104,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"9635c4cc-024a-42d7-a5c3-b4fe91a70cf0","block_type":"box","text":"market risks (including the risk that market events, including but not limited to corporate actions, could lead a Fund","page_number":104,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"116ef7da-bbf9-4ce5-bd1a-9d5e027bac99","block_type":"box","text":"to lend securities that are trading at a premium due to increased demand, or to recall loaned securities or to lend","page_number":104,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"139b1f47-31fa-48e5-9588-640ad7cbc7dd","block_type":"box","text":"less or not at all, which could lead to reduced securities lending revenue). If a Fund were to lend out securities that","page_number":104,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"e1b9ec04-7043-449a-8f1b-64226bb1f7d9","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":104,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"8d5f42b8-c580-4a50-b229-f5126a98aa0e","block_type":"box","text":"investment adviser, the benefit the Fund would receive in respect of committing to such election may or may not be","page_number":104,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"fccadf2a-62ac-42b6-a69c-9bfb67930f03","block_type":"box","text":"less than the benefit the Fund would have received from making a different election in such corporate action. If a","page_number":104,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"6e9f63de-34f5-4f07-9f31-d253342ccd78","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":104,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"32a3cb94-1162-4d2b-bd52-5df01ad98c14","block_type":"box","text":"collateral or in recovering the loaned securities, or to a possible loss of rights in the collateral. In the event a","page_number":104,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"c2fcc64f-1624-48f4-a053-650c1cb0e430","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":104,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"8fc0b9b7-0e1a-4566-b372-cba148392ec0","block_type":"box","text":"may be impacted, or the Fund may experience losses if the proceeds received from liquidating the collateral do not at","page_number":104,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"204f0c9e-214a-4da5-bd69-eafd7451da41","block_type":"box","text":"least equal the value of the loaned security at the time the collateral is liquidated, plus the transaction costs incurred","page_number":104,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"3b96ce15-afa0-4954-b28a-318050e7b45e","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":104,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"596903bc-9934-4cd0-a326-3c228128090e","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":104,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"897d27cb-6694-4e74-9c04-d0613b4daff4","block_type":"box","text":"payments received by a Fund representing dividends paid on securities loaned out by the Fund will not be considered","page_number":104,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"4485cbaf-b075-4dbf-836a-207f00fc2730","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":104,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"da0776d1-d31e-4980-a764-a84f513a350c","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":104,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"7c3f632d-db70-4c6e-a334-9574c027bdb7","block_type":"box","text":"REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund","page_number":104,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"41f01463-f0cc-4236-847e-1a730c2a1aa3","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":104,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"519325d8-6e75-410c-bb4f-777805a1b64d","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":104,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"bc13534e-1568-482f-953c-17833f46c8e8","block_type":"box","text":"will take into account the tax effects on shareholders caused by these differences in connection with a Fund’s","page_number":104,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"0166dd6d-8687-45d5-8bfb-38e8099c6a1c","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":104,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"6057f861-e7fd-48e1-b137-2aa35ff277d6","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":104,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"67cd53c8-34a4-4637-b9cc-e2dc51b87b1e","block_type":"box","text":"regulations, that may impact the regulatory or tax treatment of loaned securities and could, for example, result in a","page_number":104,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"95b8f2de-b192-4d6f-954d-f5fe156737d9","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":104,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"12b8386c-378a-4216-935f-773b19c1e6a6","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":104,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"9cfe67e4-ed7a-419d-9aff-e1a5037beba0","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":104,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"f242725f-23ba-49ce-baa4-d26ab3141633","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":104,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"f6ef632e-ee76-48c6-ae59-f36743bf66cd","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":104,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"4ffb3906-cc71-485c-ba0a-36d686c06a7b","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":104,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"c30e78c2-9f46-4c62-9b1a-e0c776bbead0","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":104,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"0f6c01d9-4cf9-4eb8-9d86-67a899693e77","block_type":"box","text":"II-73","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7119357f-a3a0-466e-a1be-e8193b9fb0f4","block_type":"box","text":"NM1026U-5981128-104/232","page_number":104,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2a12f421-50e6-449b-ae2f-38f0fbfbbd6a","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":105,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"d1cdad54-4d98-402b-9597-ad8ac8f076c1","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":105,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"3fbd6aa0-9db8-4c8c-bc88-c2121d16f05c","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":105,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"5f3e47b9-4922-4e56-ae1c-c7f3b2de1561","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":105,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"409900fc-0d89-4b0d-b0a4-02d4d48901ed","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":105,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"35563637-5623-41ed-b3fb-1b27baa3fc36","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":105,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"f0543003-9366-4b81-bb39-deb19a251e41","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":105,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"5a5b0a70-86c9-4052-9bb3-7b2054d2e635","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":105,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"4f3c5672-916b-4251-983b-5fc1f6121c98","block_type":"box","text":"although in response to the outcome of a legal challenge against the rule, the SEC may amend the rule and/or delay","page_number":105,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"b687c7e1-504a-4351-bb04-d0ce18be965c","block_type":"box","text":"the current expected compliance date.","page_number":105,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"e578c959-5573-4abb-abaa-c85b19c8de6e","block_type":"box","text":"Short Sales.","page_number":105,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"1916665a-dd95-461e-8891-0b5a8667072f","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":105,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"9547d4a4-f35e-43c2-97ba-43625fb4d09f","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":105,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"95795303-fbe3-4458-8734-82fc57136a38","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":105,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"a16d15ec-07bc-4dc4-8035-249cba746d43","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":105,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"163bb7f8-d491-4885-a90f-73e834b6d385","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":105,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"6ba12880-bd66-4246-9063-fae01f69dcfd","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":105,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"b1be93d7-c000-438b-9db9-e98965ae494a","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":105,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"feddcde7-b68f-493c-ab82-e797f115fa89","block_type":"box","text":"securities to the lender of the securities.","page_number":105,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"82b7de7d-2134-4460-931b-2d291d1a647a","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":105,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"3aeb7dba-3c98-40fb-9918-ca9b2939740e","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":105,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"28186b6a-3055-4726-86af-c4f0a0059041","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":105,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"08636339-ae9e-4591-b8bb-65e6a20852c3","block_type":"box","text":"extent that the value of both collateral deposits in the aggregate is at all times equal to at least 100% of the current","page_number":105,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"aefdbeb7-53e8-4224-8907-d16ef4fd05a7","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":105,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"0f59c4a0-a916-46ab-b032-d0c4d113e2f3","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":105,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"6446997e-5681-43ed-b6bc-95b76e835e9d","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":105,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"1956ef85-e85f-4d39-9482-59f2b29a2500","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":105,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"3be93271-f781-48ee-8ed1-831c0395667c","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":105,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"85aa050b-1298-4320-9fec-efdd30159765","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":105,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"307d60d0-6780-4a85-aaa7-e90f403757b4","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":105,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"531cb521-07a8-443f-959f-f76c5a01aff4","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":105,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"13614ea9-9763-4c15-a082-96124080c063","block_type":"box","text":"sale if the security declines in price between those dates. There can be no assurance that a Fund will be able to","page_number":105,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"92edbc7b-7826-41ed-bf80-e9986ddd96d1","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":105,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"3ca94d8b-9f21-42f1-a0e7-d6cd118034a8","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":105,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"635615ad-e21f-4dcf-baf3-81ccfe092829","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":105,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"8f3af0b1-e172-4666-8a46-d53fb955df24","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":105,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"6fc5e574-3a2d-462a-b269-145343112990","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":105,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"09d2381c-cc7b-4d47-9e0f-2fcb97bb73e1","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":105,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"afa2c33b-2753-4c3d-a932-d47bd2aff1c4","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":105,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"43f03601-6e62-42c2-9ac3-ac13d74eff99","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":105,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"fef07ca3-0886-4d95-8401-1fbb6419e109","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":105,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"fb8ee12e-7294-4262-b148-80dda2274ab7","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":105,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"50070e47-42c5-445e-8d4a-84b7d1d754f4","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":105,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"0f4a8b9a-dc27-4311-8b8c-67a2edd785d8","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":105,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"c89d5852-23ca-47d8-b06e-c14c17f3c21a","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":105,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"5f890579-2ebb-4b2c-9e4f-434ea616084b","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":105,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"df50d0b4-fa24-4d54-a653-efa593f6cb4d","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":105,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"d8cfdc18-6ac5-4d99-a0f7-845399d2f19f","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":105,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"3fca32e4-1844-4a8e-b8ed-2c3a7cf202d6","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":105,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"cabda620-0e3c-46c0-97bb-df2600e3624f","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":105,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"923a8a89-3343-4d87-81f9-e94448e884e2","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":105,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"b93a3ec8-0bf6-4bc6-b300-e7ef9a4a32b0","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":105,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"00e85a3d-4a8e-4c30-957f-258c25413612","block_type":"box","text":"publicly traded company that raises investment capital via an IPO for the purpose of identifying and acquiring one or","page_number":105,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"3d349a89-c2ff-4a30-8c97-ccc473e58a5d","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":105,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"f9fc5168-2266-42ad-a1b1-4377a6a0dc38","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":105,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"dfb4490e-d557-4224-8a73-a38bf35e4789","block_type":"box","text":"percentage (typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a SPAC","page_number":105,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"e613c046-adc0-40ca-abe5-6fe1fbd3a7f1","block_type":"box","text":"II-74","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e26e0a15-402e-4df7-ba0c-2f19b2c39ff0","block_type":"box","text":"NM1026U-5981128-105/232","page_number":105,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"89fcf302-1ea0-44f6-83b8-bbdf74119f00","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":106,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"6b12e4f5-20da-4dc7-829e-7fafc9dae788","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":106,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"671aadaa-ae43-4173-814e-39979a28d968","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":106,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"744ff772-e191-4987-8604-a9d6635e502e","block_type":"box","text":"within a pre-established period of time, the invested funds are returned to the SPAC’s public shareholders, the","page_number":106,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"2a6d881f-375b-4232-ab7d-076263e1f70b","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":106,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"dad75807-0a6d-4e1a-ae3e-716358fc6256","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":106,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"f4947dee-139f-4f83-a4cd-c74d4e899888","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":106,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"3cc50529-2465-4d51-aa80-a791df5111f0","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":106,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"6eb2cab6-d03a-4500-b64d-10450dfbb272","block_type":"box","text":"There is no guarantee that the SPACs in which a Fund invests will complete an acquisition or that any acquisitions","page_number":106,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"4f07f764-c58a-445b-b586-1a9b3b9bebe9","block_type":"box","text":"completed by the SPACs in which the Fund invests will be profitable. Some SPACs may pursue acquisitions only within","page_number":106,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"5dd71068-deda-4d73-a524-a432f82a6628","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":106,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"d197e288-fe6a-4893-9d5b-cebd4ebefa18","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":106,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"861261d2-6700-427a-83e2-23875654630f","block_type":"box","text":"Standby Commitment Agreements.","page_number":106,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"bd79c8db-cb50-457f-83bd-a945b7bd75a0","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":106,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"80ad1347-de3b-4302-ab9c-e2a64c445314","block_type":"box","text":"time, to purchase a stated amount of securities that may be issued and sold to that Fund at the option of the issuer.","page_number":106,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"19b87d54-83d8-4e20-8fbc-23a25a1dba1a","block_type":"box","text":"The price of the security is fixed at the time of the commitment. At the time of entering into the agreement, a Fund is","page_number":106,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"014a7044-b9d3-4f6d-a747-19ff4fa12d8f","block_type":"box","text":"paid a commitment fee, regardless of whether or not the security is ultimately issued. A Fund will enter into such","page_number":106,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"a6a6f1f2-21ab-4674-8986-7bb24fe790c2","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":106,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"63629c8d-e7c1-43a1-9d41-b9438c2af0e7","block_type":"box","text":"advantageous to the Fund.","page_number":106,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"4d989138-207a-4884-a534-e6b494eb0e8e","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the value of","page_number":106,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"c5ecff86-bf6b-4423-8518-b07bf1a81c34","block_type":"box","text":"the security, if issued, on the delivery date may be more or less than its purchase price. Since the issuance of the","page_number":106,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"d298b498-b160-435d-a193-8841176837d1","block_type":"box","text":"security underlying the commitment is at the option of the issuer, the Fund may bear the risk of a decline in the value","page_number":106,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"e4038d97-4816-46a1-91c7-f3b1ab6201a6","block_type":"box","text":"of such security and may not benefit from an appreciation in the value of the security during the commitment period.","page_number":106,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"da6d3cf9-a325-47da-9e07-8a013d0854c6","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":106,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"a729ff0c-f2ad-40fe-9fdb-aa6dae4a74d8","block_type":"box","text":"be recorded on the date on which the security can reasonably be expected to be issued, and the value of the security","page_number":106,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"2e806b82-5d07-443d-8ca5-de431476d161","block_type":"box","text":"thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis of the security will be adjusted by the","page_number":106,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"d37884c8-19b5-40fd-b100-b5f2b2b65a48","block_type":"box","text":"amount of the commitment fee. In the event the security is not issued, the commitment fee will be recorded as","page_number":106,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"bdcfd6cc-6b29-4214-997c-3a5cda99ab76","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":106,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"7fffcba6-c940-431b-8677-b14de78268a4","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":106,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"a38276a7-19cd-4273-9258-aa5041dcd164","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":106,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"9a7cfb4f-5e69-4a5d-9d9a-c361dd31b450","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":106,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"3f6ce1ce-ce19-45e8-ab4b-a5348648f21b","block_type":"box","text":"at zero in determining NAV. Accordingly, where a Fund pays directly or indirectly for a standby commitment, its cost","page_number":106,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"65dfc441-beda-4ecf-bb73-67420af760a3","block_type":"box","text":"will be reflected as an unrealized loss for the period during which the commitment is held by such Fund and will be","page_number":106,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"80e09162-ce9e-4ce1-8985-e69c56eb92be","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":106,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"61266e74-ab0b-4317-a105-867dfea01df6","block_type":"box","text":"Stripped Securities.","page_number":106,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"56f6c356-fa46-4773-b114-bc040874b439","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":106,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"e22d1459-dce0-4d47-86b0-b945eab5d9e8","block_type":"box","text":"components of an instrument and sells them as separate securities. In general, one security is entitled to receive the","page_number":106,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"ec1ac4bf-1e2e-4642-b6be-85965580eb55","block_type":"box","text":"interest payments on the underlying assets (the interest only or “IO” security) and the other to receive the principal","page_number":106,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"85631dfe-c9e8-447e-8e48-05ba25cef389","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":106,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"0db88e45-b0eb-4a30-9c09-04e118a8e59d","block_type":"box","text":"principal payments. The yields to maturity on IOs and POs are sensitive to the expected or anticipated rate of","page_number":106,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"d5e2689c-2b80-4380-9717-fbaabcf45b21","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":106,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"fd075aa5-d68e-4374-b735-fbbee40f6605","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":106,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"9b5ed93e-b74f-41ea-860c-228ee6e528d5","block_type":"box","text":"principal, a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets experience less","page_number":106,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"8d804a05-9484-4c44-8264-c76f9010f97a","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":106,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"16e71c7e-3896-4b52-a34b-c6ee22583df7","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":106,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"cd9d361c-0a00-4a3f-b4bc-85dcd3f68547","block_type":"box","text":"Structured Notes.","page_number":106,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"017dcf3b-d1b5-4ace-acf8-9de7b7aa3e1b","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":106,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"617a4fad-b1f6-42f7-8a77-1fc5f8491226","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":106,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"142609e4-f771-448d-9e28-53aac4d7ecc5","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":106,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"d7362005-ef88-4ab8-83d9-c5cf68630677","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":106,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"b94d1728-6de1-4aa6-9223-1777475f6706","block_type":"box","text":"increase or decrease, depending upon changes in the value of the reference measure. The terms of a structured note","page_number":106,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"7b07f836-0c80-434d-ad60-5a180b15cb44","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":106,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"f6f7b8b8-bc4c-4685-a6dc-839e3ada1448","block_type":"box","text":"invested capital by a Fund. The interest and/or principal payments that may be made on a structured product may","page_number":106,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"1c930320-1ffb-4fc5-b944-4753efa39985","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":106,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"713531a6-c8a5-4875-929b-59d5e2a40ea4","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":106,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"e398a082-dfcd-4dad-b01b-7b3f10195e6f","block_type":"box","text":"produce an increase or a decrease in the interest rate or the value of the principal at maturity. The rate of return on","page_number":106,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"b0ec028d-76b3-4c9e-b1cd-7564559a95b0","block_type":"box","text":"II-75","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6ab6232b-1aa5-45f8-b4dd-21493c4c5e14","block_type":"box","text":"NM1026U-5981128-106/232","page_number":106,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"10eae8db-5830-4e53-860a-59f7557dea62","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":107,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"44b8843a-7613-4475-84e2-ca3e9c8d2f60","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":107,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"3a119b08-0950-41d8-ae49-acf098a43f4b","block_type":"box","text":"the risk of loss.","page_number":107,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"ac680693-373a-4c9a-b6a4-4e7fcfd3b7f7","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured product.","page_number":107,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"b0d4fc5d-08eb-4fdc-a0ba-f0313e7ddbd2","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":107,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"bf17fd46-f7a8-48eb-aff1-78e7205789a7","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":107,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"41c80f2f-2287-486b-827e-b86efd2f4863","block_type":"box","text":"illiquid making them difficult to sell when the Fund determines to sell them. The possible lack of a liquid secondary","page_number":107,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"e5023bbe-c05a-4dfc-a838-9d3085907a14","block_type":"box","text":"market for structured notes and the resulting inability of the Fund to sell a structured note could expose the Fund to","page_number":107,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"e7e64ed9-fcab-4531-8382-5ba50ea47df8","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":107,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"eec0c19e-d146-48d4-9bb9-e2823bd4bbdb","block_type":"box","text":"Taxability Risk.","page_number":107,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"45e1d329-ac04-496c-87ed-3f94ab749802","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":107,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"134f0051-8648-4c42-b4df-7589e7f3aab7","block_type":"box","text":"investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to","page_number":107,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"97e87f8a-cf78-4d0c-9b43-1df4cfad82a1","block_type":"box","text":"the issuer and, in the case of derivative securities, sponsors’ counsel, that the interest paid on those securities will","page_number":107,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"04436b39-fa79-4aa0-8c4b-9817f15899fe","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":107,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"fdb122ca-011c-48dd-955e-a1547c8f793d","block_type":"box","text":"to pay, or have paid, taxable income subsequent to the Fund’s acquisition of the securities. In that event, the IRS","page_number":107,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"61ae0510-b230-4037-b69e-75fc32c2211e","block_type":"box","text":"may demand that the Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to","page_number":107,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"030dc3b1-dfc2-4b99-ad9f-91b41988a5af","block_type":"box","text":"do so, the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or to be","page_number":107,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"7f72ba46-df31-45e9-8285-f38ba8defe77","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":107,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"def5b7d4-f9ce-4ef8-8a07-a901b52819bf","block_type":"box","text":"increased U.S. federal income tax liabilities. If the interest paid on any tax-exempt or municipal security held by the","page_number":107,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"a292b90b-af87-4ab0-9ae8-6d71b3c397cc","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":107,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"a58305e8-b7bc-4245-9db2-5438fefd8c35","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":107,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"aee18416-3478-47ea-990a-670fc4d2752a","block_type":"box","text":"securities to be subject, directly or indirectly, to U.S. federal income taxation or interest on state municipal securities","page_number":107,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"c9f5bfbe-0c1a-404c-891d-5410281efa96","block_type":"box","text":"to be subject to state or local income taxation, or the value of state municipal securities to be subject to state or","page_number":107,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"e53d6200-4d0e-4152-8f91-52ee39feb9ce","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":107,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"76aabb28-be5a-4794-a791-4dc0b5c6db95","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such securities, and thus","page_number":107,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"8fa13f91-5973-4b39-ba73-6d2d92d9a28e","block_type":"box","text":"the value of an investment in the Fund.","page_number":107,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"2ac1c3fb-2450-4e0d-ad01-bf1875e10dde","block_type":"box","text":"Temporary Defensive Measures.","page_number":107,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"97e0d5e2-66de-4f43-8f89-23ef878cf542","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":107,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"dcfc97f8-5169-44a1-b907-5220301e0e1f","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":107,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"a2945516-010a-4b75-96f6-754eb9752668","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":107,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"c6ae6f6c-edcc-4ccd-b0ae-8d199db42ef9","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":107,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"6146b8ba-44fe-46da-995d-bb7c95e596d7","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":107,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"754e1fc7-cf45-4c61-9470-c65911b6b256","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":107,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"d40a07bf-458a-466d-abba-8023cf756b22","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":107,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"58dd6795-7e69-42f1-971c-5167b96d2209","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":107,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"fdf39824-c09d-4c69-aea5-39bf91661dc2","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability to achieve","page_number":107,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"c85799c0-48d6-4274-b678-df22bae3f72e","block_type":"box","text":"its investment objective.","page_number":107,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"0fbe73a4-113d-4379-8a54-91308f1d0798","block_type":"box","text":"U.S. Government Obligations.","page_number":107,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"bf6cefeb-c74c-4ae9-b6d2-05752262439c","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":107,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"faabb9b7-5b7a-4e97-8905-6d7035b90af2","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":107,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"d27ffa8d-d4ff-4a74-b0e7-1d8915ffbb67","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":107,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"77779a87-7929-40ff-9e1a-a26f60c3f569","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":107,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"0907bac4-4e3d-4746-b23a-cb5242dc8a72","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":107,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"27d02e58-007c-417f-8716-d69f17c6f746","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":107,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"a0e74108-6693-411a-af44-aa5e4c7b543c","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":107,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"cdba68e1-51c6-44da-8bb0-8d846b632e62","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":107,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"5f92d1ff-400d-4f70-848a-e73ecfbacb3a","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":107,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"bfcde96f-ac1c-4c37-8376-6fa7dfb479ce","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":107,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"eedcf2f5-b2ec-4c29-8289-181857084de1","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":107,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"ce7b112e-1466-44fb-bd06-09c4e9dc2fe7","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":107,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"6d18fb55-66e6-4437-b9f6-46eb77adece9","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S. Treasury Bills,","page_number":107,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"d0b209c3-40fe-4480-8875-89e016a71ea4","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":107,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"6372eaed-9c34-456e-b45c-a5dbb8d3cb6d","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":107,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"a5a6c787-1adf-4f41-b728-13e91f4df918","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":107,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"b086623a-6dd3-4d11-b604-f77b869f3250","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":107,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"d2c2c32d-137f-40be-b768-c7665c64a34e","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":107,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"a133414a-47f8-4d65-804f-5f467d2b6460","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":107,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"8bb04d47-b36b-454d-a893-c55e1b88df67","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":107,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"5d8c4773-f5bc-4d24-97cf-8ee425645260","block_type":"box","text":"II-76","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b97e778f-a19d-47c7-8cec-531d16d31cc4","block_type":"box","text":"NM1026U-5981128-107/232","page_number":107,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4901803e-c5cf-486c-b750-6af3773c1877","block_type":"box","text":"U.S. Treasury Obligations.","page_number":108,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"81da0287-4e50-4728-97f9-f33154900b30","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":108,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"a4bc8c89-1465-4278-b6f3-10bf7d40c4f5","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":108,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"75cbac21-04cf-4d5a-bfdf-ee115a148a88","block_type":"box","text":"of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given","page_number":108,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"ce99ce9b-a8a5-4fea-924d-4b5bff9980ee","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":108,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"34d82a7d-04d4-43e8-98a7-3aa41812d101","block_type":"box","text":"do so.","page_number":108,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"de8b8380-74a5-42e1-ba62-1c8f82fa0cf7","block_type":"box","text":"U.S. Treasury Rolls","page_number":108,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"ac1c068c-2c73-4453-898e-367db5bfcce7","block_type":"box","text":".","page_number":108,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"90196c90-ff7e-4733-87f9-80e4d2f3b6b8","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":108,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"781dc3aa-8b8a-48cb-926d-e76666cf0d84","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":108,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"b2eedc7c-179b-446a-a4f0-e242c3f89d7e","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":108,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"eb6277c5-6eaf-4e8a-ae93-d7c051d19d4c","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":108,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"9af594e9-f2d5-4a49-b9bc-00fad71f08e8","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":108,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"f96474f0-5409-4af0-98e4-7de5bc6e527f","block_type":"box","text":"roll, a Fund continues to earn interest on the securities it is selling; however, it does not earn interest on the","page_number":108,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"fcebd62c-3c58-4fa1-b803-e05e2abb79cd","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":108,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"18aabc5d-c52c-4e3f-bc6c-9bea35d71a58","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":108,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"4ab7633b-3a65-44d6-b574-366c6b98f4bc","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed upon","page_number":108,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"04ebef56-ef82-4b87-a213-c50914bfe577","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":108,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"2b709380-dd06-4182-b33f-d8b7ed37b707","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":108,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"f2b48d81-26bd-4bec-88db-ee8ede85c04b","block_type":"box","text":"Utility Industries.","page_number":108,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"b9d7e2eb-1c73-4248-8ef1-233c7bc47ec5","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":108,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"d1badd00-fe6a-45ba-9db2-2ae875e572a0","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":108,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"faf12058-a99b-42eb-b924-255761a999bf","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":108,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"00625beb-a662-4453-99e7-a225058a6a91","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":108,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"08f75311-0469-42e4-9335-55b2666b43ac","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":108,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"9d688f05-894d-4ca2-8b87-7307cc79ebd9","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":108,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"073f5211-64ae-4bd8-a6ed-10eccbd77486","block_type":"box","text":"availability and high costs of natural gas for resale, the effects of energy conservation, the effects of a national","page_number":108,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"35e0ee27-7e98-494b-9fcb-9e7097af8f26","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":108,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"b2a0127c-5825-46c9-8196-f5ed4f3f8143","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":108,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"bee45c2d-7ba6-4e5c-89fa-03df27926686","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":108,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"e668c5db-6916-4bfb-8192-d039c411a630","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":108,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"ed7337e0-2740-460a-906e-05f1e48e446d","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":108,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"74c5d827-3a53-45f6-ba49-d550b4b1a950","block_type":"box","text":"authorities will, in the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":108,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"158feb19-c562-41e2-98b0-fa2fe1ba7122","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":108,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"e154eca8-571f-49ef-96d0-a5b3e9b669ec","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":108,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"c8bbdbee-4688-40d6-a9e1-72ba0f671135","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":108,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"59680592-9da0-423d-8fae-1425e1dbbac0","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":108,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"d74801d2-365e-4aa7-8b1e-6681c9935f7e","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":108,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"7972860f-7aaf-4a3a-b64b-66c389520390","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":108,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"de91f3c2-ce2e-4cff-bc88-4dda4666b067","block_type":"box","text":"utility.","page_number":108,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"c90b94e7-5c17-4ea2-81b6-ac4c3f11cc95","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":108,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"4b5ef93e-fc3c-4861-b772-0a5a1adbb337","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":108,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"1e994e1e-e17c-4e17-942d-4eb8771e61d4","block_type":"box","text":"debt securities and, to a lesser extent, equity securities, tends to have an inverse relationship to the movement of","page_number":108,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"0c0d5d8f-8619-4427-99d5-45fbca30bca4","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":108,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"c1b9a841-23c9-48bb-8eb7-a088e9611f58","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":108,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"7a212edd-4a69-4988-af9b-a48afb68b6d1","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":108,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"e0a55c1b-c34a-4b5c-812c-294f7fe5b1a5","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":108,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"0852f807-30bb-4341-952e-cdd5fc9f3091","block_type":"box","text":"regulated in the United States and in foreign countries with the intention of protecting the public while ensuring that","page_number":108,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"d879fb19-f3f4-4650-969c-f6863314783d","block_type":"box","text":"the rate of return earned by utility companies is sufficient to allow them to attract capital in order to grow and","page_number":108,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"e577a11e-d4f2-48c8-a6d2-0c4bbc8351b0","block_type":"box","text":"continue to provide appropriate services. There can be no assurance that such pricing policies or rates of return will","page_number":108,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"8e891259-f6a4-4ce7-90d2-b089618ee66c","block_type":"box","text":"continue in the future.","page_number":108,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"b021724f-6ec1-4792-b4de-db7c23fd4f82","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in foreign","page_number":108,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"a07c0cb9-f2c1-49ce-9727-96112e762fc9","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":108,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"badde230-2cf8-4a2c-93e6-fb98f1c1da04","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":108,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"d16c54e0-e77c-4023-850a-560f7466ef73","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":108,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"b929b316-6b86-41b0-8fe6-8fbc91a4cd21","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":108,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"788161a1-48a0-4d8b-9e9d-fac21536b158","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":108,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"b9e1faa9-9055-4951-9fba-3cce239df143","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":108,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"1435d00b-4ab3-438d-8447-e99b8694a578","block_type":"box","text":"utility companies being able to earn more than their traditional regulated rates of return, while others may be forced","page_number":108,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"5ed1238d-cf81-4496-9ad9-3f092d3b3031","block_type":"box","text":"II-77","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0e78669b-76d0-4fd0-8308-ea30b260400c","block_type":"box","text":"NM1026U-5981128-108/232","page_number":108,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d1ed472c-155a-485a-9f40-2996550c4bfd","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":109,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"101ebc10-71ec-4a95-b9e8-615c19400b87","block_type":"box","text":"new uses of funds (such as for expansion, operations or stock buybacks) could result in cuts in dividend payout","page_number":109,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"ecb93909-2b51-46aa-9604-2bb497bf276e","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":109,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"c56542ef-51b5-4338-82b4-334b322b0aeb","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":109,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"7e5239ef-3b98-4ad5-a8b9-94c24c254a98","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":109,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"13dfef80-f423-4f9d-8d2b-2c8019fe1e3f","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":109,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"61ff76db-8cbf-4ead-95f2-4f7a8079c302","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":109,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"a278d51b-ac24-4a6b-8016-25975c1803b2","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":109,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"5fe421d5-1a02-42e8-a1dc-6f5464833856","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":109,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"d5dfce69-5538-4163-a1b7-a92be528d474","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":109,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"df66ff42-e847-4f4d-8889-36726e5cd093","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":109,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"d067d7fd-22d6-4380-bbde-80351ee39d9d","block_type":"box","text":"than those used in the United States, which may require such utilities to invest in pollution control equipment to","page_number":109,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"a58518f7-c8cc-4f2d-bb1b-2b53049a3b69","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":109,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"aa3c392d-d190-434e-b710-d9545827e6a0","block_type":"box","text":"ways different from regulation in the United States.","page_number":109,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"e9e747e7-8c8f-4a86-93ff-5973da4bc8c3","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":109,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"dbb58231-dbfe-45b7-9960-f381a9928f10","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":109,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"8c212125-0f1f-4ef2-99e0-256c48759452","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":109,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"43e7fd8a-1cca-4e20-b3fe-2f5d236f69d3","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":109,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"c4b6145d-3078-43b8-abfb-1aa1fa09f385","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":109,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"e6dc6139-9662-4ceb-966b-f4b4e9cc3d79","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":109,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"5d53eaf4-7bdc-4aa6-a579-42faa1b0d21f","block_type":"box","text":"ownership, is expected to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":109,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"fe10e19f-c3a6-4595-8f1f-4fa2b4b30160","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":109,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"ed92d536-6033-4702-be9b-c5e2f1cbb232","block_type":"box","text":"increase.","page_number":109,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"dbf845cd-9535-45b6-bab1-6c54f14a08b9","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":109,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"5256e7a9-63ae-465f-8fc0-2fdf5cce02e8","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":109,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"3bf34562-45a4-4d24-88e6-cb98bd975153","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":109,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"3a2416b5-31ca-4d29-9660-292494ad4206","block_type":"box","text":"Electric.","page_number":109,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"4210061c-3178-45b5-a678-18b206b3f64c","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":109,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"f50824a3-2d74-402d-8c06-7303492fa3e2","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":109,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"88f97824-2e14-412c-a317-de343127d2d3","block_type":"box","text":"electric utility companies, in general, have been favorably affected by lower fuel and financing costs and the full or","page_number":109,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"35087a67-b782-4897-ae2d-1b4948a3231d","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":109,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"428d1d01-542b-4aec-9ff1-4260c73fd611","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":109,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"4233ecb4-cfd1-4088-aaad-07b74df154ad","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":109,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"dea197bc-927c-424e-ac17-9ca57c9a602f","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":109,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"ebd0bdb6-eefb-45f7-94fe-d2179498adbf","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":109,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"314150d9-66f2-4b44-b4b1-35b76cdc5f64","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":109,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"6fd42eca-c2fc-4b10-ad2c-94c7ce7fe7f4","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":109,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"c595d851-3ee2-4805-bc0b-a517045808d2","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":109,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"3619a1ef-c2d5-4d22-a7af-9c41664650d2","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":109,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"ca5d2157-8a67-4119-8b41-ef4a9a033e34","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":109,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"bfd39969-c44e-4e24-a82d-d11438d0ef17","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":109,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"fd9b3a16-9d81-4de3-9342-02431b178c9c","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":109,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"ad18c420-d458-4dcf-a502-fa2cf3c66fad","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":109,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"ecf23742-92c8-4cdd-b63e-aca6e1cb6e15","block_type":"box","text":"costs in rate authorizations or the risk that a company may not be permitted to operate or complete construction of a","page_number":109,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"571ee77c-ba4d-4fa5-b0d6-e7a7eec39ceb","block_type":"box","text":"facility. In addition, operators of nuclear power plants may be subject to significant costs for disposal of nuclear fuel","page_number":109,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"d97d0cf4-34c0-42f3-a851-15725d13a25d","block_type":"box","text":"and for decommissioning such plants.","page_number":109,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"086c2b18-1e3e-4e5b-8b9b-1d96f31d1072","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":109,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"20d30580-58c9-438c-9b6e-12e283690506","block_type":"box","text":"impacted to a greater extent in the future by the division of their asset base. Electric utility companies that focus","page_number":109,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"330e8e5b-e18e-4477-8e30-98be69ebca49","block_type":"box","text":"more on the generation of electricity may be assigned less favorable ratings as this business is expected to be","page_number":109,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"f2ffd388-5f60-4df9-9abb-71837815d77c","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":109,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"ab921a7e-1b8b-46f2-83cc-379e05ff78b0","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":109,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"a7d892d5-50e9-4fa3-9545-6becc12e348c","block_type":"box","text":"greater predictability of cash flow.","page_number":109,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"92793466-ab65-4eb8-8cf2-b6837972f6a2","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":109,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"ce840615-d112-41d1-984a-5b0c4240b1ef","block_type":"box","text":"the industry as a result of such deregulation has at times resulted in lower revenue, lower credit ratings, increased","page_number":109,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"f87b6faf-06c9-491b-8c06-dda4324b52c3","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":109,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"9133c09e-b251-405d-9923-a0c5630fe3e6","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":109,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"865f18e5-0dce-448a-846e-e666db559fe1","block_type":"box","text":"II-78","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e0473936-75f8-4522-a65f-1522205e5e2b","block_type":"box","text":"NM1026U-5981128-109/232","page_number":109,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"308e7369-70fb-4490-b94f-18b24323ed91","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":110,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"aa93eb37-fb5b-4eaa-a19d-e2f8916e271d","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":110,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"032785d8-93e3-42da-84da-122f73bd3e30","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":110,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"87f82ffb-3d08-4c11-adaf-9359404722f7","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":110,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"834330ce-7cca-4de6-a230-63fa1dcee3d8","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":110,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"0923b4ff-dedb-4e31-a756-9ff72074eeb8","block_type":"box","text":"Telecommunications.","page_number":110,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"b78e44ab-3d64-4e6b-bb7b-223a3a59d11f","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":110,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"9fca26d8-541b-4f3f-a146-9ea28bb30abf","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":110,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"cefe3674-5252-4fe3-bfe7-2400d9c1bd66","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":110,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"927132fc-3cb4-4e56-90f4-c8a36fab4442","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":110,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"ac739ff6-34d5-43c9-a2c8-c621bce708e8","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":110,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"7215778d-11f4-4980-9e2d-449bff8ea334","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":110,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"4ced4cac-6920-45e8-95e0-286b63c5abeb","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":110,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"b8778155-1797-4c94-9a8c-13fd603f9863","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":110,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"b2b260ab-9533-4820-80bb-d07bae5018c8","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":110,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"b054163e-06bc-417b-8df5-73621f82ba7b","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":110,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"e60b1672-d1eb-4719-b15e-0cbc60bba560","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":110,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"500dc203-8169-4bf9-a505-a4b8ddca2305","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":110,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"e05865a0-f67f-406f-9d28-1c63573b8498","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":110,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"4b94ff61-7f41-4e4d-9de6-4d7546c0ccf6","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":110,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"1bc68550-b7e1-4ce6-8cc4-6eb5b4ebb86d","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":110,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"9ee0be23-2933-47d0-b213-8771292d5df7","block_type":"box","text":"residential, corporate and governmental customers.","page_number":110,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"82297266-2f64-42a5-b0e5-35605e3b344f","block_type":"box","text":"Gas.","page_number":110,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"c11820e7-e78d-4a1e-9c49-b42967a4ec73","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":110,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"4786fd7c-48ea-443a-a006-87082ec8492c","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":110,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"b82c5967-af8b-43eb-97c4-95dfe986a6ce","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":110,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"af31efaf-0725-4b94-aa8e-2cb16ba12883","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":110,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"6eeb8c27-c81d-4e1c-80d0-daaed4d3216d","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":110,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"7ccabdfb-a501-432d-8be5-6b6b1db7b448","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":110,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"9c4badce-efe2-4c2b-903f-e8bef564a717","block_type":"box","text":"outlook in the future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":110,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"3cf8fe61-876a-4375-b5d7-042c956ea36e","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":110,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"292fd681-543e-4d73-8f51-7544971bccf0","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":110,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"427b096f-778d-4c34-972e-98dfa200fa3c","block_type":"box","text":"Water.","page_number":110,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"f3d560be-97d7-4a31-950b-c2b12dce6567","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":110,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"7c9f470c-2eb8-4891-80a0-4b7919d262b3","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":110,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"dba7cbf3-95ac-4bd8-9ffc-b84922dd63c7","block_type":"box","text":"Companies in this industry are generally mature and are experiencing little or no per capita volume growth. In the","page_number":110,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"8d217261-37e6-4147-8024-da8813005b4d","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":110,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"5a8941a4-883d-4083-bb27-263a2d5e8e33","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":110,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"da7fd4c6-f41d-4b78-a237-8a6e810d056f","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":110,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"159329ca-b790-4b76-947a-7804d654cdad","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":110,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"7be2279f-08b7-4047-862c-fff5b7c0f34d","block_type":"box","text":"Utility Industries Generally.","page_number":110,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"b70c2938-76e0-4295-a500-1ad01c1d555f","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":110,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"09b1af2e-1ca2-4ae9-adbd-4c338b5c0de3","block_type":"box","text":"those relating to privatization and changing regulation, will occur or that risk factors other than those noted above will","page_number":110,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"0b604536-3b04-4456-8aa4-69e51e308ef4","block_type":"box","text":"not develop in the future.","page_number":110,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"682cb763-02a6-4f60-a5ca-930a5a998a8e","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":110,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"2270ce67-4967-4f86-867f-64c4b84bc1f4","block_type":"box","text":"A Fund may purchase or sell","page_number":110,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"9be62b75-373c-45ae-ab0d-9525bff90122","block_type":"box","text":"securities that it is entitled to receive on a when-issued basis. A Fund may also purchase or sell securities on a","page_number":110,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"a1e785b9-26b0-46de-bec9-4afd5d4ddc8f","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":110,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"c1c6291a-2b67-4b1b-bb90-97a0b55fa2b6","block_type":"box","text":"transactions involve the purchase or sale of securities by a Fund at an established price with payment and delivery","page_number":110,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"45aa06ad-b838-4b61-a4c7-27ae7a554603","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":110,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"3b384c5d-b055-4f20-be14-5d425089ace3","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":110,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"dfb97597-61ff-4692-ab39-cc317fb62d76","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":110,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"82490eb6-2a53-4a30-906e-721ce9df95cc","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":110,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"77bc7138-fa51-4c7e-8fc3-9b66d69f083f","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":110,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"6b8a9c80-08ec-4cc9-99b7-d78648202b88","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":110,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"78b0aa06-f611-42d2-988d-1d1e3b1e6608","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":110,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"5d605b24-1f38-4ea8-bb9a-b673e5c30251","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":110,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"5147e31f-78c5-498b-b7d4-d94129fa627a","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a security","page_number":110,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"8750289e-7ee4-49af-b331-985b40fcbe1a","block_type":"box","text":"purchased or sold on a delayed delivery basis or through a forward commitment will be delivered. Also, the value of","page_number":110,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"5fdbdc90-51bf-4923-b9bf-16e2e9952c39","block_type":"box","text":"II-79","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7c109ad0-6695-4e08-b796-25ac027a070a","block_type":"box","text":"NM1026U-5981128-110/232","page_number":110,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bff15be0-df46-442f-a1d9-360196eb8590","block_type":"box","text":"securities in these transactions on the delivery date may be more or less than the price paid by the Fund to purchase","page_number":111,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"4fd80e47-04f8-4074-9083-ab0333c87074","block_type":"box","text":"the securities. The Fund will lose money if the value of the security in such a transaction declines below the purchase","page_number":111,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"5b59bf7e-7e28-4fd3-98fa-eab1572dd93a","block_type":"box","text":"price and will not benefit if the value of the security appreciates above the sale price during the commitment period.","page_number":111,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"8580b570-e6c7-4ef9-99f2-c3c75dd71a0e","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":111,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"3da5be81-b776-4f9c-9e01-809a27f551d2","block_type":"box","text":"after it has been entered into, and may sell securities it has committed to purchase before those securities are","page_number":111,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"c5773dec-73d9-4626-8cfd-8ab36effd92d","block_type":"box","text":"delivered to the Fund on the settlement date. In these cases the Fund may realize a taxable capital gain or loss.","page_number":111,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"39c336d8-79ba-42ca-9d68-f5d0fd258a44","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":111,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"120c7afd-5dd2-4fa4-b6ca-dffb3e5027dd","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":111,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"5d94b201-0223-45d1-8ea7-fe1e7a1356ed","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":111,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"7817bbe4-29e4-439f-b4c1-b4598f05e37d","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":111,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"693208d9-f73f-4831-98d8-800becc5cc54","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":111,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"efc3406a-d705-49f2-8184-a4863164cf04","block_type":"box","text":"day the Fund agrees to purchase the securities. The Fund does not earn interest on the securities it has committed","page_number":111,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"b4049b2e-d0d7-4b24-96ba-ab88f19e265d","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":111,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"42533acc-5f5d-458a-9d5f-47dd0917444c","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":111,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"91858827-ca10-4175-b1f0-75dfba548f0d","block_type":"box","text":"securities (","page_number":111,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"f8f49cde-2180-459a-a0c8-a758a537fac1","block_type":"box","text":"e.g.","page_number":111,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"f2341a94-e83c-433d-998f-f6d895096038","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":111,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"a724a878-61d2-4621-aeca-330a1c7c7e1b","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":111,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"98ecff21-c074-4283-b26f-447574622949","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":111,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"26d689b0-4f20-472b-8dc9-68dcb1159f3a","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":111,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"b1654e38-204f-4503-9a05-69a9b1f9739e","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":111,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"33378ed0-d945-4546-8678-6215d4b2b185","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":111,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"69cd3994-fc8f-4e39-b3a5-1337691226d9","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":111,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"2976af06-f801-449c-886d-7e41797b9f8e","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":111,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"ddccce5b-3ab0-48b9-ab3e-46fe29f89cbf","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":111,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"a459735a-05e2-495d-8e5c-4162cd2401b4","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":111,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"a89f4c19-ef4f-4bdd-b870-4f2f90ae5c41","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":111,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"e313e466-2f57-457e-b863-e04f0d1afe4b","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":111,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"937cecce-3054-4dce-b97f-9e471f177d6b","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":111,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"2fc838f7-86d2-41d9-ad8d-af44ecd52aef","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":111,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"1cd3cc4b-90ba-41e7-914a-f34b2323bbb0","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":111,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"d265b822-5134-4751-9d27-68440804986d","block_type":"box","text":"Yields and Ratings.","page_number":111,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"3f95c2b0-bf4a-49c4-9c11-d16ac4444cca","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":111,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"9048b0c4-f5e9-46e2-a95b-df9eba8dad68","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":111,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"957b13ad-2b5e-48bc-a31c-4893690fac68","block_type":"box","text":"of the offering, the maturity of the obligation and the ratings of the issue. The ratings of Moody’s, Fitch and S&P","page_number":111,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"318780fe-666b-4f22-96f2-9b0e2a9a05c4","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":111,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"dfefc327-417c-4a3a-b95a-6b0bb5be3432","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":111,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"5aea180a-9f8d-4d77-8ce8-896366eca962","block_type":"box","text":"interest rate may have different market prices. Subsequent to its purchase by a Fund, a rated security may cease to","page_number":111,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"b98ad4f7-149e-47f4-befb-4c4e5b63bb4a","block_type":"box","text":"be rated. A Fund’s Manager or sub-adviser will consider such an event in determining whether the Fund should","page_number":111,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"13025795-c45c-4bfe-b30c-ae56b111c570","block_type":"box","text":"continue to hold the security.","page_number":111,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"683824a2-25d0-4c71-9b3d-c721a5db187a","block_type":"box","text":"Zero Coupon Securities.","page_number":111,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"6b50a1b8-ed18-4f07-ab7a-d03ce58d7818","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":111,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"da0dbd4d-7b1e-4ba3-a06a-4e5cd1d6625f","block_type":"box","text":"not pay interest during the life of the security. The discount approximates the total amount of interest the security will","page_number":111,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"993081d6-784a-42aa-977b-5e86442293a9","block_type":"box","text":"accrue and compound over the period until maturity at a rate of interest reflecting the market rate of the security at","page_number":111,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"e6f65117-db59-41c4-be7c-bc4efbb217cd","block_type":"box","text":"the time of issuance. Upon maturity, the holder of a zero coupon security is entitled to receive the par value of the","page_number":111,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"eea3e9ec-2a6f-4307-a94f-b87458d3c56b","block_type":"box","text":"security.","page_number":111,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"7449039d-7691-490c-ae10-0c8941cb3957","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":111,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"dac368f6-7887-4dfc-8a09-413264f054ae","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":111,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"8fa52859-801b-4648-a01d-069850946cfa","block_type":"box","text":"owning instruments that do not make current interest payments is that a fixed yield is earned not only on the original","page_number":111,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"748a4a1b-0e4d-4a84-b083-6a4657766fd1","block_type":"box","text":"investment but also, in effect, on all discount accretion during the life of the obligations. This implicit reinvestment of","page_number":111,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"0725694b-590d-4486-bdae-d8774599b90b","block_type":"box","text":"earnings at a fixed rate eliminates the risk of being unable to invest distributions at a rate as high as the implicit","page_number":111,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"878107ec-d218-4d1a-9c2f-702fb171a207","block_type":"box","text":"yield on the zero coupon bond, but at the same time eliminates the holder’s ability to reinvest at higher rates in the","page_number":111,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"7e5fc2ed-db35-44d3-b81f-6eb26137d861","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":111,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"ee034cf4-8916-4db9-a452-7058411b85f8","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":111,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"96dfdb89-8edc-47c9-aa5a-5d92fa74276f","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":111,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"6831b108-e4c3-4c0f-881d-37e7cb7fa354","block_type":"box","text":"benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to","page_number":111,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"a3afd08b-319d-4faa-9bbc-f1ef3607430c","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":111,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"d89ba097-85a7-4993-81e3-33b5bec41471","block_type":"box","text":"II-80","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cabe9fe8-b3f3-4a8d-b7c8-910293c98df4","block_type":"box","text":"NM1026U-5981128-111/232","page_number":111,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1c2ca959-2275-4c62-b028-1baa0fc95066","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":112,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"a56b0065-9a63-446e-bc33-ab8407de2fbd","block_type":"box","text":"prior to the receipt of cash payments. Zero coupon securities may be subject to greater fluctuation in value and less","page_number":112,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"eab10a6e-1957-425d-934b-a8215034325a","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":112,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"6c6264a8-59bf-490c-998a-7a520961157d","block_type":"box","text":"intervals.","page_number":112,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"c1ac5e51-22a4-4b0b-bcaa-9d2d5050fde0","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":112,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"e35a24f7-a1e8-48d1-a6e4-6caa9c3e946b","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":112,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"5dca9b3b-6465-442b-b4eb-16533ccfed65","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":112,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"a5df458e-f41b-4086-9c74-491129dff6b8","block_type":"box","text":"generate the cash to satisfy these distributions. The required distributions may result in an increase in a Fund’s","page_number":112,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"c4a8bd24-5ee4-4c1d-997a-3182b15811d2","block_type":"box","text":"exposure to zero coupon securities.","page_number":112,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"ca4b5fa1-a135-4645-a753-f6dbbdcf5cfd","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":112,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"97375a56-3485-4c27-8aba-ed9331357b24","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":112,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"eac10cec-da0e-43a2-8c19-cec1164e4adc","block_type":"box","text":"In addition, as these securities do not pay cash interest, a Fund’s investment exposure to these securities and their","page_number":112,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"dfca95d1-ff55-49d0-ac3e-0a7f6cb9ea12","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":112,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"d41fcc3c-52ac-4ba9-86d8-2b11826c7d2b","block_type":"box","text":"Suitability. (All Funds)","page_number":112,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"2994d630-b06d-4158-8e7a-47c7609af6e7","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of the Fund,","page_number":112,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"32b3df8c-7737-4485-b22b-5a98eba8764d","block_type":"box","text":"the Manager and its affiliates. Each Fund should be considered a vehicle for diversification and not as a balanced","page_number":112,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"c8085f78-aea4-4574-91b6-fccad9e1c13b","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":112,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"e69061a3-70ef-4917-88d8-41bd691ec31d","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":112,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"e1f5b842-0ac8-4b79-92fe-6e7e56a2bed1","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":112,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"10a6adfc-4a24-4102-aa0a-8745f0e0fbc5","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":112,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"f1b470d1-055d-4ee5-81b2-cec5a66ef2bb","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":112,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"f827eeb2-ffd9-41fa-ba31-276470444ccb","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":112,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"e12ffd57-57dc-4864-a648-c765c307e758","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":112,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"03ebd525-2ba5-4b09-8877-6d0516cd6d78","block_type":"box","text":"Each Fund’s investments will be limited in order to allow the Fund to qualify as a “regulated investment","page_number":112,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"38936252-a9de-4f5f-a9b1-976e815795b2","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":112,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"056b729c-3803-4752-bd8c-9a04f41a06d8","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":112,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"2ab63e1c-02bd-4a72-bb2a-f42c7aa43c3e","block_type":"box","text":"50% of the market value of each Fund’s assets is represented by cash, securities of other regulated investment","page_number":112,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"f7a73cd9-0d88-44cc-81f1-2084870d2ebe","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":112,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"6ee56e66-f918-4be6-b4ce-9a16b0c67235","block_type":"box","text":"issuer, to an amount not greater in value than 5% of the Fund’s assets and not greater than 10% of the outstanding","page_number":112,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"f81d4573-3c58-48de-86a5-45cc6ad4a8fe","block_type":"box","text":"voting securities of such issuer and (ii) not more than 25% of the value of its assets is invested in the securities","page_number":112,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"1fab3a19-2c4a-44b0-8fd9-78c5e6c6b53d","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":112,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"b03c07c8-922a-49cc-a510-c5b75d6c6003","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or similar trades or","page_number":112,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"57a4030a-9d4e-41e0-b0e1-f2fbe2a9fa9d","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":112,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"c2cfd5f9-35a0-40c4-ad6d-689e9c8f1a3b","block_type":"box","text":"(","page_number":112,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"34d487f4-85c7-4851-9f5b-5c3969ef48f9","block_type":"box","text":"i.e.","page_number":112,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"c0ff77d9-4f8a-4d20-a099-b7868d8f9542","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":112,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"46ea6f94-4513-41e9-b689-ed1f7831296e","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":112,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"cb35cfbb-8604-4705-80ee-f4a2a773c210","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":112,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"e4babe86-6438-475c-b558-c7103c556d96","block_type":"box","text":"of its political subdivisions, agencies or instrumentalities and each multi-state agency of which the state is a member","page_number":112,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"defa71ce-5941-4286-8b4c-e0b11e8072ae","block_type":"box","text":"as a separate issuer. Each public authority that issues securities on behalf of a private entity generally will also be","page_number":112,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"88407bf1-f81e-4b1c-b910-a8494fd47fae","block_type":"box","text":"regarded as a separate issuer, except that if the security is backed only by the assets and revenues of a non","page_number":112,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"31a97306-b48d-4dff-b4a9-641a6db48430","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":112,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"74ff5472-1dbe-467a-8aa6-a0101821be52","block_type":"box","text":"regarded as the sole issuer.","page_number":112,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"eea5cc1e-2905-4b6b-aa82-3b7d03635931","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":112,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"d945c551-7058-4ab0-a888-531b41b5e109","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":112,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"189d5fac-04ba-4e84-ba18-f034444748ae","block_type":"box","text":"considered to be obligations of a single issuer. These tax-related limitations may be changed by the Directors of a","page_number":112,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"17f81c4c-1013-4a63-bc2c-8d76edbbff9e","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":112,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"f2044283-8102-42f4-9a7d-689b1d906fe4","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":112,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"f35061f5-0b63-49dd-a27a-4a44c091aca1","block_type":"box","text":"75% of its total assets.","page_number":112,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"d663012f-dd31-4e9c-bc76-3e0d9ca423f8","block_type":"box","text":"II-81","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0dc4e99b-110e-4d26-ae96-2705b536fab9","block_type":"box","text":"NM1026U-5981128-112/232","page_number":112,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"29463b40-db57-41d9-b912-4e5a656d30de","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":113,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"f1c712a1-14b0-4bd5-acc7-7e51cb69fd11","block_type":"box","text":"Directors and Officers","page_number":113,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"45d3c2bb-43ac-4bf2-82a6-df0c25711234","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":113,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"2cd471de-080a-4331-a05f-be20fe0bc13f","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":113,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"569adbbf-13bb-41bf-b3a8-a788b48939a0","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and","page_number":113,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"37e6704e-f89c-420d-9af4-876a761fb1cd","block_type":"box","text":"certain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":113,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"48f920c3-d45d-4e64-ab10-ea0843708f45","block_type":"box","text":"Management Arrangements","page_number":113,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"c125ebee-5c28-4cf8-963b-1c5dc498e281","block_type":"box","text":"Management Services.","page_number":113,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"e75f0cf6-7c94-4b7a-80c4-aa186d3d8216","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":113,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"19906c52-5877-4454-a18c-2b555c90ede0","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":113,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"166ddb35-75b7-4f3a-8ac8-a11d875030bf","block_type":"box","text":"portfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":113,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"8d112f5a-e63c-42f0-afcc-fc3a6367b740","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a particular security rests with the Manager. 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Such contract is not assignable","page_number":114,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"a126d087-9ad3-42d3-b1b3-a3e5fae6b408","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either party thereto or by the vote of the","page_number":114,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"258838ee-7baa-4bf5-8450-2cba26bc302c","block_type":"box","text":"shareholders of the Fund.","page_number":114,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"7572fe6d-3bd6-4500-8be3-f61d563c268b","block_type":"box","text":"Transfer Agency Services.","page_number":114,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"05021644-6660-4eb6-a28b-708dac912555","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. 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Employees subject to the Code of Ethics may invest in securities for their personal","page_number":115,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"bdcbd4df-fa21-4d49-8c17-9f54cf199099","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":115,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"d8d38f9b-a6ca-4925-a419-a8a55130f6c6","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":115,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"1e820f27-84b9-441f-883d-1dbef0750574","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Portfolio","page_number":115,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"2d7036ef-9d00-4298-9c84-8e4f671ff661","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":115,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"3301d6af-0aa1-4c46-9486-7be676a16539","block_type":"box","text":"portfolio securities, as applicable, and other portfolio information. 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BlackRock, its subsidiaries and their","page_number":120,"box":{"x":102,"y":339,"width":731,"height":12}},{"id":"5805a396-e643-4d94-99e6-c436bffdadf5","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":120,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"e8a7f1cb-ebb9-4c64-9c6c-93f3e22240e1","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":120,"box":{"x":70,"y":370,"width":786,"height":11}},{"id":"61859431-23c2-4ef6-bd29-818707c439ec","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":120,"box":{"x":70,"y":385,"width":829,"height":11}},{"id":"5be5b879-8a2b-4e4b-931d-9bdb65294bb8","block_type":"box","text":"and have interests other than that of managing the Funds. 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BlackRock may, in certain cases, elect to implement internal policies and","page_number":121,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"47701c83-140a-444c-bb3f-2fdc5762b7bc","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in certain","page_number":121,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"a2676c22-a3a1-43cf-bb09-3678fec3ef5d","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":121,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"54d8bbe4-5d01-4f2e-9e0a-eb89319a8a58","block_type":"box","text":"Conflicts may also arise because portfolio decisions regarding a Fund may benefit other accounts managed by","page_number":121,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"24f5e1f6-9bcf-42f4-8da2-52922284c375","block_type":"box","text":"BlackRock. 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BlackRock may also determine to rely on the actions of similarly","page_number":121,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"cdc3dcd0-0dbc-43c3-8604-f5edccdf78de","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":121,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"0924ae48-a839-418f-a8f7-274457d4c00f","block_type":"box","text":"Funds.","page_number":121,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"7d019538-5bde-496d-b9e5-4b24c608215f","block_type":"box","text":"In addition, to the extent permitted by applicable law, certain Funds may invest their assets in other funds","page_number":121,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"1e3362cb-d041-4f02-8498-e5ba62b97dc7","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same portfolio managers, which could","page_number":121,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"a1820fbd-e44a-46f1-a1be-941fb82e4d88","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":121,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"d9bf3b10-6d11-4919-9d4c-f8390e862cd1","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including portfolio managers.","page_number":121,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"9f3b5eea-05a1-4ad1-9e62-f6376b2d7022","block_type":"box","text":"Third parties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":121,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"4b48c462-9e90-489b-9d4c-a6b29f9601df","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":121,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"25a9eb70-4911-47f4-90c9-889ca3dacd81","block_type":"box","text":"for registered representatives, other professionals and individual investors. 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BlackRock may (but is not required to) effect purchases and sales between","page_number":121,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"fcb64582-26d6-41cf-bf88-b08d7b9c76c4","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":121,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"e33b0439-10af-4fda-9e94-30743ff5a127","block_type":"box","text":"based on each party’s investment objectives and guidelines, subject to applicable law and regulation. 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BlackRock may have a potentially conflicting division of","page_number":121,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"c9986cb8-8d9c-4bf9-884c-4b83700d2337","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":121,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"a1e914d7-27e2-443f-90c4-579d93157401","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has invested,","page_number":121,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"7a752f11-44c0-499e-94e2-7035a37e03f0","block_type":"box","text":"and those activities may have an adverse effect on the Fund. 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It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":121,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"1f11875b-0bcb-4f41-9f41-e423f1676620","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":121,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"a770e4a7-5d33-4933-8a43-a06bd5120e9b","block_type":"box","text":"Fund. Moreover, it is possible that a Fund will sustain losses during periods in which one or more proprietary or other","page_number":121,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"6ac4e7c5-e9a3-42c8-bf41-7ee9a0425ccd","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":121,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"8843ba4d-8d3f-4b39-9368-f610af198a62","block_type":"box","text":"From time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in other","page_number":121,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"392cfb15-0b07-4a8e-8f62-8dee69b4eb51","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":121,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"c3226a32-2ddd-43f3-9dbe-5e19139f215b","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":121,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"92eaa757-d484-4dea-96ff-1e5f71aa0108","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":121,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"32ef0019-9169-40c1-a059-d5cf64f820cd","block_type":"box","text":"II-90","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a62f0115-bfa8-4740-a35c-db2655fef045","block_type":"box","text":"NM1026U-5981128-121/232","page_number":121,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f0b86891-ba4e-4fb9-9b7f-489c84c70c5e","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":122,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"9a8d4e4e-3e2a-4de8-8542-3c5856443271","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":122,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"04a6b2d3-73be-40fd-801d-53213410f708","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":122,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"a436b0f0-6f7f-41cc-9250-c967b8ecef9f","block_type":"box","text":"and other markets in which limitations are imposed upon the amount of investment, in the aggregate or in individual","page_number":122,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"6457e6ff-5b3e-47ed-a251-9ee94dc677c7","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":122,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"0a681f88-fd5d-4813-b514-aabd83f85ef6","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":122,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"c91bd609-1bc8-4b64-8cbe-0ef468166830","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":122,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"377ba5ca-972b-4ada-ac7a-a75e1eb894be","block_type":"box","text":"transactions on behalf of a Fund in accordance with such analysis and models. In addition, BlackRock will not have","page_number":122,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"41ba8f6f-5349-4516-8dcd-6c47796695ae","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":122,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"27da7e97-609d-47e5-a00e-2d33eb177091","block_type":"box","text":"strategies used for other accounts managed by them, for the benefit of the management of a Fund and it is not","page_number":122,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"22e002bf-fbcf-4569-88b5-def0a392c312","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":122,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"5a9b3f43-1c89-4063-bda5-e8ee94d747b1","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":122,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"f781f826-5487-426f-aa79-d143a46d23a7","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":122,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"12c021aa-36de-44a4-aec5-c70f8dc285f2","block_type":"box","text":"managing a Fund.","page_number":122,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"d944c2f7-d3c3-4aa6-a759-a9bcf6596520","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":122,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"96da31a6-d852-478e-b4ee-a51527b4410a","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":122,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"63ae2fd9-aa58-4665-a8df-e032ee2cdd98","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":122,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"82d51e5a-de3c-4c6a-a44b-f4adc46bd263","block_type":"box","text":"value and liquidity of a Fund may be impacted by purchases and sales of the Fund by model-driven investment","page_number":122,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"87bc37b1-eb1e-407b-9ad9-c4186b930aec","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":122,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"8286459a-d4a4-4083-bcc7-d10020ab77a0","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":122,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"8d146bb7-cce0-4359-8b4e-a8ffac989572","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":122,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"f9d2ff4e-f2c7-4bf7-b4aa-cf3d6a177526","block_type":"box","text":"have obligations to such other business units or entities or their clients and such obligations to other business units","page_number":122,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"19b46cc6-1924-4332-b797-d5ecc949b73b","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":122,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"c8c78d07-6e8b-43b9-81f7-37dd4a15def9","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":122,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"bb27bee0-0507-4e52-92db-ac922be38f67","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":122,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"1631cfe8-2594-4e0f-82f4-065ced0ecb01","block_type":"box","text":"as the counterparty, principal or issuer. In such cases, such party’s interests in the transaction will be adverse to the","page_number":122,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"d97e2379-299a-4f34-8e6c-8efb9fc18401","block_type":"box","text":"interests of the Fund, and such party may have no incentive to assure that the Fund obtains the best possible prices","page_number":122,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"715c578a-278e-43f1-801b-6e0928c016fe","block_type":"box","text":"or terms in connection with the transactions. In addition, the purchase, holding and sale of such investments by a","page_number":122,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"b887c0a1-f76a-48e0-a597-3cbcfd205c0c","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":122,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"15e1c116-7808-4f81-ad55-5315cf84d02f","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":122,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"bc2d515b-be80-44dd-bf53-74c0609eefce","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the performance of the Fund.","page_number":122,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"f7fa4794-0632-427f-a45c-b48d44a4ee91","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the performance of","page_number":122,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"3d5536d2-d879-47dd-8d75-c5509ae01512","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":122,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"ef74a1d3-e868-4f37-b2b1-a34e57421d53","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":122,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"9a9500c0-2c4d-4773-bae5-29c235ea7b39","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":122,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"2f061895-f6a8-46ab-8f05-edd8ffcae4b9","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":122,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"428646f6-459b-46f2-a513-3838fe372332","block_type":"box","text":"under management for BlackRock.","page_number":122,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"6c3e0f76-6b3e-4128-b3ca-8e5c6ccb6050","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":122,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"f9e6b41d-e3bd-4fa3-a2a5-9ac228a8f2c9","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":122,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"94ef6632-aba2-4322-95f3-cf38bd8f495a","block_type":"box","text":"clients have interests adverse to those of the Fund. At times, these activities may cause business units or entities","page_number":122,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"833453b3-8a4e-4dfc-802e-47a05131661f","block_type":"box","text":"within BlackRock to give advice to clients that may cause these clients to take actions adverse to the interests of the","page_number":122,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"58255df2-6a2e-432e-92ba-640722481ff4","block_type":"box","text":"Fund. To the extent such transactions are permitted, a Fund will deal with BlackRock on an arms-length basis.","page_number":122,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"7017a28a-5145-496a-bc4f-9bdb5f2a3681","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act as broker, dealer, agent, lender or adviser or in","page_number":122,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"e346193b-d69e-426f-b6f0-5032911c470c","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":122,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"a92015fd-05d5-4dab-a80d-380902831cc6","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":122,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"f9b65243-b254-406a-bd87-8fd3b593fefa","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":122,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"7ad34564-17db-4195-aa9d-f053b22a3fdc","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":122,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"987ce9da-8036-4542-be1e-38575710a44d","block_type":"box","text":"amounts that are favorable to BlackRock and such sales personnel, which may have an adverse effect on the Funds.","page_number":122,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"0cc83341-11e9-40b8-ab79-96f930175cdc","block_type":"box","text":"Index based funds may use an index provider that is affiliated with another service provider of the Fund or BlackRock","page_number":122,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"d394c91a-7e3a-4501-9b28-8d2806731872","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":122,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"331cf7f7-b51d-4305-bc0a-c764430c6c80","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":122,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"77458685-9da4-482e-8d6b-2c4f3f7ed272","block_type":"box","text":"other amounts that they receive in connection with their service to the Funds as broker, dealer, agent, lender, adviser","page_number":122,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"ea6c1957-6b25-49d5-9ca6-b2f5c2bdaf73","block_type":"box","text":"or in other commercial capacities. No accounting to the Funds or their shareholders will be required, and no fees or","page_number":122,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"260a753c-6c69-45ad-9007-a37652561de1","block_type":"box","text":"II-91","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c26617a8-c665-4e27-875a-a9abdd5abb8c","block_type":"box","text":"NM1026U-5981128-122/232","page_number":122,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"25a1a540-4d31-462e-955c-2f93fab123cd","block_type":"box","text":"other compensation payable by the Funds or their shareholders will be reduced by reason of receipt by BlackRock of","page_number":123,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"c8a752a5-0f63-4546-b3c5-7504524f4948","block_type":"box","text":"any such fees or other amounts.","page_number":123,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"803e5c3f-3832-416d-a537-01330d7de914","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":123,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"f3e015b1-36f1-424a-a44b-fdbe65377ece","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":123,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"39279975-7c05-4711-bdce-3720afe06e50","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s own","page_number":123,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"d072b114-e492-4b34-b626-c2f3a6a05469","block_type":"box","text":"credit standing. BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":123,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"6bc39362-bda4-4f8a-8d37-f837207edbc6","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":123,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"e8e70023-8362-42a0-bbcb-edb087669323","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":123,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"5c312440-3a4a-4dc8-be40-dce9205169f6","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":123,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"317823f3-6ee3-44d7-81b2-bb07a2664bbf","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":123,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"d90141ee-e3a6-4229-b7b5-bb903941b3ed","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":123,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"41fa19df-c536-4304-a941-7f164d7f7d4d","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":123,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"dcf5b872-6f34-4e63-a552-fdbe6d2fdf50","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":123,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"b02c22c1-c734-4cc8-a78a-d058ec78dbe3","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend particular","page_number":123,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"b7657c7b-c9e3-486d-8b81-41cb56236d3c","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":123,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"b8435499-9869-4c99-8227-9d266c12a54d","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":123,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"8098dfeb-3cae-4b80-a6aa-667cf58bee82","block_type":"box","text":"BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":123,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"bdb2f5a2-a978-4ee0-acd9-a586eb91571e","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":123,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"66c56611-59d6-47d3-9aaa-87971156a764","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":123,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"74a087b7-f76a-4a84-b739-641ce3652dcf","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. 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BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":123,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"e458c35e-953b-4724-b4be-65507e4729e0","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":123,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"12580a3f-980c-415d-ae34-0263ef795ec0","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":123,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"6c23c309-55dd-43db-88fc-44c02abe4b28","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":123,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"00f1ab12-7013-4b51-be00-d523d37f7e90","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":123,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"1ee9b704-c55f-4401-9338-f433bb3b501f","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":123,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"b3649553-840d-49ae-b3fe-0e909e2675bd","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":123,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"cccac6d5-5a01-4035-a7d8-d6e07d9a1eb0","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of a Fund or","page_number":123,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"2ed1f2bb-b1d0-491d-b5a7-0f7989bbbd00","block_type":"box","text":"terminate a securities loan on behalf of a Fund for any reason, including but not limited to regulatory requirements","page_number":123,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"05037b67-ba99-4fac-b9ba-39e5968dbc44","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":123,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"8dc05739-db5d-483c-a1c3-670f83630a98","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":123,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"976fbbe3-3d4e-4265-9556-017a151d0fc9","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":123,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"9de93c8c-8482-4c64-ad17-1e19815dd2b2","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":123,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"397b10f5-9766-4cc5-8a10-12b7f4c0a4a3","block_type":"box","text":"regulation.","page_number":123,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"79d70150-27a2-45a6-a5a5-9fb92deebf10","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":123,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"a57be078-042c-45f6-985e-56fbb97e2997","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":123,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"9d5ba860-7b9e-4109-9f49-2fb83446ee44","block_type":"box","text":"various program limits (","page_number":123,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"4aaa461a-4fea-4c3d-81fe-519a5e4f8b88","block_type":"box","text":"i.e.","page_number":123,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"e2f13cec-c8fc-45a6-a07e-96a422868a29","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":123,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"9bcf5cfa-a49d-40cc-bbb6-c49f5aa05ac7","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":123,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"ab9691e2-5d8f-4d93-a983-c34f59bab91f","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":123,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"340472e4-cdfa-4b99-bfd6-8c4e7ba0daa5","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":123,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"ebec6618-a13e-492f-bc7f-cdfeac040909","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":123,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"3da6b206-2011-48f8-91af-4f866ad9f634","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":123,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"721e378e-50e4-450a-9281-f7fb5ff49b83","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":123,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"408df228-26c7-4076-9c58-cf576fb9273d","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":123,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"8076fcbe-de45-403c-88e2-d2693aa141df","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":123,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"5a06aba7-981c-4911-bbbd-07d2c26b21ab","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":123,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"86d92116-7d8a-4049-94bb-1259af39b234","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":123,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"d7855598-2dc2-4def-b6c0-dd081f474714","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":123,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"880fbe27-f0aa-4766-9634-a0b409b29c85","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":123,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"9d4c04ff-2062-4f47-8daa-4eacc11278aa","block_type":"box","text":"entire volume of securities purchased or sold. When this occurs, the various prices may be averaged, and the Funds","page_number":123,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"0ff845a0-4a7b-4683-aaa7-f35dde623e3a","block_type":"box","text":"will be charged or credited with the average price. Thus, the effect of the aggregation may operate on some","page_number":123,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"616a6e88-1061-44ff-aa63-e8a3a3d1929d","block_type":"box","text":"II-92","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9d5fb9c1-9dd0-4f0c-8efc-dc36a5b736fd","block_type":"box","text":"NM1026U-5981128-123/232","page_number":123,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0ef37349-12c2-4088-8763-4c90305adee7","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":124,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"a7c1aee3-6e12-4452-81e2-faf94af4d740","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":124,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"cbecd37a-acec-4c95-894d-4e57b0cb34c5","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":124,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"30c3e433-199d-425c-bb75-f3f6c9090de3","block_type":"box","text":"Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to pay a broker or dealer a","page_number":124,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"b27d8c78-3b23-4e80-9939-9e9f4c571fa6","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":124,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"3bd88b38-2d0e-4db0-a4de-9663687ede28","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":124,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"00475f2e-5e8b-4543-ada7-973f7790c1f9","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":124,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"a29dcbc0-cf47-4ebb-9d16-c61513d758b4","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":124,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"94d0a193-70f4-4663-850e-ab01aade3acf","block_type":"box","text":"than through client commissions.","page_number":124,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"36a64e4f-d6dd-4776-8586-b5842dc57b17","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":124,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"fdf38767-e84c-466a-9c72-c4f27438da47","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":124,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"36340ddf-98e0-4533-bce7-de4f2fc25c81","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":124,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"92365939-d038-48c2-9d3f-68d78ef75734","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":124,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"cfb7b0f4-5b7d-4e3e-aad3-0d887d4e25b1","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":124,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"0e81301c-8591-4f40-985c-f833b085256c","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":124,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"f964fa2c-48b4-440f-b6da-5175df6a2daa","block_type":"box","text":"research-oriented software and other services and products.","page_number":124,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"ea128cc0-2137-495e-9f14-8a82681751f6","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds and other","page_number":124,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"c684ada9-d6de-406a-bd7b-93829d27f572","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":124,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"e0c82857-4272-4571-b231-f280349ba9ee","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":124,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"9adff7ec-1bb0-4e75-819b-c86fbfda62cf","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":124,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"57330c33-24ae-484a-90a2-6a9130754da3","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":124,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"a11dcc19-01eb-4755-91e4-3000b7bedb1f","block_type":"box","text":"that are paid for through one client’s commissions may not be used in managing that client’s account. In addition,","page_number":124,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"9a93305d-67d6-4309-b769-a82262477ca2","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":124,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"3f737ae8-805e-4dc1-a740-76997d7ba5b3","block_type":"box","text":"or price discounts in connection with products and services that may be provided to the Funds and to such other","page_number":124,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"1628572f-39cc-43c5-93d5-6d4a59e1d8f7","block_type":"box","text":"BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay for those products","page_number":124,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"630b5bff-289f-40b7-bf6e-85262369ca70","block_type":"box","text":"and services itself.","page_number":124,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"dfb06ba2-8fd9-4082-82bb-44f3a8ba343e","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":124,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"144977cc-86e4-470e-9af3-97620d271b7f","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":124,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"09c89d2d-275a-4591-9e71-7368665d8eff","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":124,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"063ffc4b-2601-40c6-a380-ce340e2e00ed","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":124,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"b153d3ad-cc6f-48cc-b611-27eeacd644a1","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":124,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"62c163a4-4288-43e4-bc78-d54a936700d2","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":124,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"01830821-9115-4657-af9d-2440173c62dc","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":124,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"3c5cb60b-c82a-4e46-a2f5-941ee3cd04f8","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":124,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"127c4f6c-8bd8-450d-bb7f-a3936c02823f","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":124,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"5952a3f1-336d-4e37-b059-cb3e0d374f0e","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":124,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"7872117c-fe5a-48c4-85cd-aaee236c0953","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":124,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"068b37ea-7740-44dd-a4e5-222d112c6ebe","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":124,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"38e904c7-c872-47df-af78-5e65066bffa3","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":124,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"95fe3481-1277-432b-8dc5-bd0e0705c439","block_type":"box","text":"the cost of the securities purchased. Access fees may be paid by BlackRock even though incurred in connection with","page_number":124,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"b2f12c73-38a7-4462-ac4f-4a1cf039d0a3","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":124,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"d4879f9a-e636-4cbf-9375-a5bef6803d33","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":124,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"b3445d0e-931b-45c0-ae21-5d249b0e7a9d","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":124,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"4d738b55-dcec-4604-aaa1-232f795054a1","block_type":"box","text":"BlackRock owns a minority interest in, and is a member of, Members Exchange (“MEMX”), a newly created U.S.","page_number":124,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"6981b745-a657-4f82-9ddd-2c025e35a66d","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":124,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"a1674bb0-98da-4935-9024-8f54240f7dc3","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":124,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"771d43e1-56a2-4f17-8322-1842babe742f","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":124,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"d6193cf5-1ab3-4314-b675-a9614e6ab6e3","block_type":"box","text":"voting decisions that it makes on behalf of advisory clients, including the Funds, and to help ensure that such","page_number":124,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"69913fb4-3549-4d31-bcd9-fb94f1ead28b","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":124,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"de00f4c6-be5a-41a0-aaa9-1f571467c9a5","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":124,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"45b7ef4e-20da-4581-b525-d2350ee0f0d3","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":124,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"e9dce0ef-d569-4b0c-b56c-7e807d4c024b","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":124,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"9278b078-b022-45c9-9a74-e99bd613634d","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":124,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"7e6f3366-7e3b-4646-9c8d-b1e2aeaab73f","block_type":"box","text":"II-93","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fbb7ac88-d842-46ef-8341-dce336e5a66a","block_type":"box","text":"NM1026U-5981128-124/232","page_number":124,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4032924b-ca38-4600-8277-5af9a3ab0b49","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds and","page_number":125,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"cea3d98d-eb0a-49ab-a905-a715fb76f5ec","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":125,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"0629b7d2-5756-41b9-83c0-d05c7b1e6796","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":125,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"679189f3-8ee6-482b-b16f-b172167b2e43","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":125,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"7979ac33-4414-491b-b747-abee1caeac16","block_type":"box","text":"applicable law, to redeem at any time some or all of the shares of a Fund acquired for its own accounts. A large","page_number":125,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"397aa0dc-7bbc-4076-9f9c-df4e2d45bfa6","block_type":"box","text":"redemption of shares of a Fund by BlackRock could significantly reduce the asset size of the Fund, which might have","page_number":125,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"b97e0233-9048-4c9a-b4f3-0bb191d26f0e","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. 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BlackRock and its sales personnel may","page_number":125,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"cafaa942-9861-4f04-9a3d-45899044dd1d","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":125,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"cad67308-19ec-4a7e-bd28-70cb76a6d34d","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":125,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"4da8bc31-27cd-473f-b865-d790e0d44968","block_type":"box","text":"management. 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BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":125,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"89c51ffc-c260-4f94-b9d6-6ba203126273","block_type":"box","text":"under the Investment Company Act and acts through BlackRock’s Rule 2a-5 Committee (the “2a-5 Committee”), with","page_number":125,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"61a26c59-8e54-459d-a648-9500c295a31d","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":125,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"3ab5be99-04d2-45a0-b096-b3661ad3b08a","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":125,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"de6530e6-bc2d-4b92-be6e-569c414f450b","block_type":"box","text":"price that a Fund might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length","page_number":125,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"37cbcfe2-12a0-4e99-a1d8-092c4e0322b9","block_type":"box","text":"transaction. The price generally may not be determined based on what a Fund might reasonably expect to receive for","page_number":125,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"3336b370-a28a-43c8-9dfe-beab638f0464","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":125,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"d8b199e5-56ac-403d-81fd-e7666d2083f4","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":125,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"be9872cb-6f55-4f19-a159-f941e1b566bb","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third party valuation models, fair value","page_number":125,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"da485cc9-a3c2-449e-ac16-75c4082012f0","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":125,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"fdec9564-de97-4c39-91e5-a731a14a16b7","block_type":"box","text":"liabilities may not, in retrospect, be the price at which those assets or liabilities could have been sold during the","page_number":125,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"4abdaf15-3904-402c-bab1-6f846eb43c8b","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":125,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"2ac1e6ee-41a9-40ea-a213-a949ac8399bf","block_type":"box","text":"redemption of its shares at NAV, at a time when a holding or holdings are valued by the 2a-5 Committee at fair value,","page_number":125,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"2d9b9903-e1c7-4848-8638-1fa054b803a2","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":125,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"cf517e54-2fb6-4ecf-9f09-230a99fcec86","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":125,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"609c8e19-9d45-49e7-9f16-ea189b4faf49","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its short term cash investments in","page_number":125,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"2d54b8c6-8ad0-4456-a7af-61627386715e","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":125,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"e515c765-ea2e-4d46-bb5d-bf653627df37","block_type":"box","text":"such investments, a Fund, to the extent permitted by the Investment Company Act, may pay its share of expenses of","page_number":125,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"2464d793-aec1-4b30-92f6-5d30875fd11a","block_type":"box","text":"a money market fund or other similarly-managed private fund in which it invests, which may result in a Fund bearing","page_number":125,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"87f7dbcd-4095-4663-a426-db09975cc228","block_type":"box","text":"some additional expenses.","page_number":125,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"6cb7b980-0d5a-44b6-9f94-e551f5e3558e","block_type":"box","text":"II-94","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5bb9ee33-6107-4072-b2ca-08e88e4c844c","block_type":"box","text":"NM1026U-5981128-125/232","page_number":125,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"56d74ad9-7f23-4734-a9b8-03952ed3173c","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":126,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"34085612-7625-4b57-a55f-db826002a1ad","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. 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To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":126,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"ce01f153-f6b4-4360-b84b-77736070a927","block_type":"box","text":"BlackRock each have adopted a Code of Ethics in compliance with Section 17(j) of the Investment Company Act that","page_number":126,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"9065f12f-7741-4593-9a93-730e5c5ced6f","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":126,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"35c3989f-3d62-4ec8-85a3-cd6467a8ca5f","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":126,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"b16fc1b2-7285-47f0-a5d2-7bffb6d6440b","block_type":"box","text":"EDGAR Database on the Commission’s Internet site at http://www.sec.gov, and copies may be obtained, after paying","page_number":126,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"5cf44cf9-5310-4bb1-8836-41ac7c2acd9b","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":126,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"8b866264-b71e-4709-80eb-855e19a8acb2","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":126,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"528b2ebf-cce3-422a-af40-ef876c1de3bf","block_type":"box","text":"except that the Fund may in accordance with rules or guidance adopted under the Investment Company Act engage in","page_number":126,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"d134012e-148c-43a9-ae7d-ad5294d47a02","block_type":"box","text":"transactions with another Fund or accounts that are affiliated with the Fund as a result of common officers, directors,","page_number":126,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"468920c8-c270-4de8-b630-69e5f573988f","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":126,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"939275c2-91da-4793-8e0b-44d2ed39459f","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":126,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"3c594f46-a866-45d2-a855-9e5351bbd72d","block_type":"box","text":"for the Fund to purchase and another client of BlackRock to sell, or the Fund to sell and another client of BlackRock","page_number":126,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"d9642088-ba5d-4e8d-9f1f-f6b367f89d6f","block_type":"box","text":"to purchase, the same security or instrument on the same day. From time to time, the activities of a Fund may be","page_number":126,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"0e4abfc9-0902-4af7-9870-c32ee7f583f6","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":126,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"c80e2cae-a9eb-41c8-9a8d-a3b0abb06d55","block_type":"box","text":"to comply with, limit the applicability of, or that otherwise relate to such requirements. A client not advised by","page_number":126,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"7b41ebd1-139b-419b-a0a0-3a12a14d5577","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":126,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"7aa83d9a-d3a6-4323-a53c-a928eae5f5e2","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":126,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"72e189d4-a3b1-4f0a-b6ea-a6b200102e84","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":126,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"6b83891f-871c-4e33-b557-e9fc52abb3ba","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":126,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"769a8265-1b2d-4ef7-9731-786548ccc60c","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":126,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"88c09733-09d2-4df4-9a31-0aa5b5393351","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":126,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"bda87049-39a3-4af0-9c5a-660a731aee85","block_type":"box","text":"public information about the company (","page_number":126,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"8f00f2a0-d88a-4e75-9d08-d5122df86ea5","block_type":"box","text":"e.g.","page_number":126,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"ac699718-8f4c-4659-b9f6-8e1cbcbe5995","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":126,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"af989e3a-7433-4f24-9f01-dea542edbde4","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":126,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"3fe14f54-0480-4b3d-ba9a-37dab320a172","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":126,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"9f06b777-6158-4027-8d86-75677ee50d1d","block_type":"box","text":"of a Fund, including where BlackRock and/or clients advised by BlackRock already have an interest in such issuer or","page_number":126,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"b2482ede-c60a-4a32-a6f2-2892d8f46661","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":126,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"a30fdfd6-17f5-4faf-9463-1c3217ab268c","block_type":"box","text":"securities of which the Funds wish to purchase or sell. However, if permitted by applicable law, and where consistent","page_number":126,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"b54b9466-7c79-48f1-b494-84f04f7153f9","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":126,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"972d8934-8c16-4376-a07e-06336742548d","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":126,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"3ed1f80a-e806-4cfc-930b-17a1a0671c13","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":126,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"4c8a08cb-b0f2-48ab-a660-000faf58d3d7","block_type":"box","text":"of the issuer.","page_number":126,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"c4fc1170-d166-4d86-a1fa-963fbef85a69","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":126,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"54817856-acf0-4701-ab61-1107e74ba728","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":126,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"29576090-6d5c-431c-8f5c-324f98306982","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":126,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"d079aeec-5d86-4832-a6cb-faf96e917e91","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":126,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"b6264806-fb3a-474d-b72f-8c513ac15ecc","block_type":"box","text":"make decisions or take (or refrain from taking) actions with respect to clients they advise in a manner different than","page_number":126,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"e0fcdaaf-766c-443a-a381-961d930ff42c","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ portfolio management teams. The","page_number":126,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"ce515848-e49b-4f06-ba29-103d3fe64702","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":126,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"8fffe305-9620-4493-b97a-7b644391e0a9","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":126,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"a8f416a9-ef9e-4221-8343-83ef375c5c50","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":126,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"38a3153e-02c6-41d5-84de-81d3dc4325b5","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":126,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"90025247-69c4-49b7-8bc9-918cdbc80d4a","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":126,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"4bff0c7a-b016-47c8-83ad-2c01d281a73a","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. 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Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":126,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"08f551a9-a6c8-4c59-9307-e8cfe0e8c12a","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":126,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"457e8990-7af5-429f-8c98-cd6dcca6e439","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":126,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"257fcc3c-7470-4af5-b5ad-0b1d7b9b9eec","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":126,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"45214f5d-d65d-410b-bd78-27d5558b989f","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":126,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"57e332ca-66cb-47ba-af9d-46dbd8d8e02f","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":126,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"b47aad36-6491-48ee-98f1-4a1fe3f5e0fe","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":126,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"e20a9b6f-aa87-468a-be58-5af4da9312c6","block_type":"box","text":"II-95","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bb91bf91-edad-4710-82a9-359d63d02205","block_type":"box","text":"NM1026U-5981128-126/232","page_number":126,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"415a2ad3-fed9-4b61-8855-a9d55e7a4e98","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":127,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"96e81073-c7a5-456e-8bd1-9b1c8851abe2","block_type":"box","text":"purchased or sold for a client in the absence of a change to an information barrier). Information barriers may not","page_number":127,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"d040dab3-1b54-475e-9eba-9170f93ceb4c","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":127,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"5579407b-be81-4f32-bf15-385f586e98e0","block_type":"box","text":"and actions by personnel on one side of a barrier may impact the potential actions of personnel on the other side of","page_number":127,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"520c1741-34dd-4c29-b66c-cf71bb967dde","block_type":"box","text":"a barrier.","page_number":127,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"26a5310b-e922-4de4-8e91-6b9f3607f730","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":127,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"f6792f54-7186-4d27-9417-e4f70311e07f","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":127,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"caf9badd-5e58-49b7-bcee-b2d5f301e06f","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":127,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"0244d8e5-6927-432e-9b05-5eadba9f20bd","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":127,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"a2b297a9-3729-4ff0-a018-672494b66544","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":127,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"c4709d5d-0580-456b-b2eb-d264eed7b8e6","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":127,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"8a716c42-feaf-42f8-9467-31d960823478","block_type":"box","text":"that operate in certain industries (","page_number":127,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"286cc51d-e57b-4451-a20f-995b65427bc2","block_type":"box","text":"e.g.","page_number":127,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"003cfcd1-d70a-4d45-9cbe-3321b5ae5ed8","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":127,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"bb0b64d5-d6b8-4d26-ad2e-c096112b55ca","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":127,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"98870bb0-5a06-4fbc-a3a7-ea5036ba6568","block_type":"box","text":"e.g.","page_number":127,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"cc162f0d-da0a-436d-a824-561f543b76ba","block_type":"box","text":", with mechanisms such as poison pills","page_number":127,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"c86dc0a1-9d70-46e2-bca1-29ba87bae767","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":127,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"ebbad94c-3bcf-42e5-adbb-1e86ed03f7da","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":127,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"5d10cf7d-5e5a-4165-8552-c3590aeb7a4f","block_type":"box","text":"not be exceeded without the grant of a license or other regulatory or corporate approval, order, consent, relief, waiver","page_number":127,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"19637047-e03b-47f6-b9ba-0f0f53602f44","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":127,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"b2fd8da4-2820-4c41-8e6b-f8b12b0d7dfd","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":127,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"de2d8124-5be1-45b0-a29f-a7be094c0c96","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":127,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"c5578d44-fa94-48aa-a689-e2422456fa2b","block_type":"box","text":"seek to make indirect investments (","page_number":127,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"5b674e82-0f74-4e0c-8e13-248bdb5520d0","block_type":"box","text":"e.g.","page_number":127,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"5b304ed0-aa38-44ac-843d-e649f2b2a100","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":127,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"ad633d34-a95c-42e5-93ab-d9da843946e3","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":127,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"d675bc24-094e-4ef9-ae42-90bb9d7672dd","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":127,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"9cf4498a-1ac4-4410-9b92-5e2b86b602d8","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":127,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"ef7b5c15-7eb2-4f97-af3c-6aaa5af14c0c","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":127,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"e7b23e08-6c32-4eb0-9546-9d1abb80749f","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":127,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"80d49abc-d58e-4487-a50f-c35bf4778828","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":127,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"ae331729-8ccb-4233-93a1-716bf04db6ac","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":127,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"21b991c1-2463-4ebd-93d5-97249afaa0d4","block_type":"box","text":"client or as a result of corporate actions by the issuer, the ability of BlackRock on behalf of clients to purchase or","page_number":127,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"4c9cdeab-13c4-4f15-8486-d4077f6ab647","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":127,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"9988c5d0-ade9-43ec-b660-384ac8296483","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":127,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"34b8f897-a1a1-4401-bacf-c4794157d2eb","block_type":"box","text":"an ownership limitation or restriction, a client may be unable to purchase or directly hold a security the client would","page_number":127,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"1f6eb156-a452-45bf-a1e2-c35262c9b6df","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":127,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"b564a907-b07b-4c2d-9e8f-66826d93d571","block_type":"box","text":"instead of the specific client being restricted. For index funds, this means a fund may not be able to track its index as","page_number":127,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"d72c3be7-2ee1-4630-a38d-5e167237c3c6","block_type":"box","text":"closely as it would if it was not subject to an ownership limitation or restriction because the fund cannot acquire the","page_number":127,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"a80e161b-ccb4-4f65-b125-756fea1d0d4d","block_type":"box","text":"amount of the impacted security included in its index. BlackRock on behalf of its clients may limit purchases, sell","page_number":127,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"a09a8c56-2ff1-4ac2-8151-27824df7cfa9","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":127,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"80308c48-6820-4084-8827-b2ce1861b19a","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":127,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"59b354db-ccab-40bf-b10e-fe0084f55df0","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":127,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"3831f1b0-d9f1-4ada-be72-797e316dba4b","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":127,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"8a35d322-61a2-4122-a347-950c5f918c01","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":127,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"33780b5b-ef31-4424-a75e-f74b3ab79e93","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":127,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"df0c3cfb-4cb9-4f6f-a3d2-17bcc787553a","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":127,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"62130824-fc5b-4822-8835-f782c2c3b09c","block_type":"box","text":"permission will be granted, or that, once granted, it will not be modified or revoked at a later date with minimal or no","page_number":127,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"2d02ba9f-3586-4e7b-a867-b1da1fb2680e","block_type":"box","text":"notice. The issuer and/or regulator may also require that BlackRock on behalf of itself and its clients take or refrain","page_number":127,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"22a06dfa-aaf5-436b-be6e-edafb442e7bf","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":127,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"7956d4ec-a272-48ca-a73b-0bbab07d5aac","block_type":"box","text":"may accept if it believes the benefits outweigh the costs and may limit BlackRock from taking actions that it","page_number":127,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"44e14866-f82e-4a33-b0e4-bde5dd964da7","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":127,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"7ac98767-a7e2-42de-b5f6-1c28cb6c42e7","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":127,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"63bc8e5f-ccba-4fab-b592-e929f3c07219","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":127,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"3dbedd60-7e7f-4fc4-a9ad-0bc84a85f510","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":127,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"3f6a3660-b5ac-4706-8a18-34f1c2fd8584","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":127,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"b0f9c339-316b-46ba-a9b4-3ac7936bb12b","block_type":"box","text":"respect to ETFs, remove such securities from the list of Deposit Securities to be delivered to the Fund in connection","page_number":127,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"8bc1aea8-d64b-4e22-8937-4a8f9fdaee0e","block_type":"box","text":"with purchases of Creation Units of such Fund. If client holdings of an issuer exceed an applicable threshold and","page_number":127,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"44ace3f9-216d-4ab4-9f46-505c2516b6d3","block_type":"box","text":"BlackRock is unable to obtain relief to enable the continued holding of such investments, it may be necessary to","page_number":127,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"59952582-6f0d-4afe-b730-5c79ba456052","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":127,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"2fabcb3c-96cd-4a4c-bff4-74d24c4b7deb","block_type":"box","text":"actions. 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It is possible that, despite BlackRock’s intent to either comply with or","page_number":128,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"3adb1732-69a1-4a6f-b8a3-e54949042bb2","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":128,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"7f2e86f7-3baf-48ae-9844-6dc4d1ed8233","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":128,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"17db7bc7-c589-4393-976c-f12872c2d405","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":128,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"5a516768-79c3-4dd4-8562-44666b8b0a16","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":128,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"eae37eea-22c7-47d5-a779-6286b61d3a77","block_type":"box","text":"strategy with respect to such security or asset.","page_number":128,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"705febbc-b266-44f3-a0ff-674f335dba0a","block_type":"box","text":"BlackRock may maintain securities indices. 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Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":128,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"4065f898-8d04-441e-95fb-3f07453341f6","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":128,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"4297c632-d3a7-4318-903b-7238376a35b3","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":128,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"d31e448e-c463-4c1a-bb18-284fa74fd854","block_type":"box","text":"e.g.","page_number":128,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"2f0228ed-b7ae-43b1-bd4b-2065a2c9678f","block_type":"box","text":", custodians,","page_number":128,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"6776b88f-fb38-4a23-83b3-d608973436fb","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":128,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"78c59604-60b4-46d5-89cb-5fdf086bd66d","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":128,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"ccb6383b-cca4-473e-aa50-cc2e557f47db","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":128,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"ae8d791a-f5a8-43bd-8e2e-71be3ffba72d","block_type":"box","text":"provider’s services are terminated with respect to a Fund. To the extent that BlackRock is responsible for paying","page_number":128,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"42873167-12ab-4490-92b0-fda911c574b9","block_type":"box","text":"service providers out of its fees that it receives from the Funds, the benefits of lower fees, including any fee","page_number":128,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"9c64ceeb-44b7-44e3-8352-b297f5863f8a","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":128,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"8717063c-0fa8-4b97-9c39-aa3c81c48b31","block_type":"box","text":"in conflicts of interest relating to the use or termination of service providers to a Fund. In addition, conflicts of","page_number":128,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"6c34500a-5339-44d3-a8bc-087c461ba409","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":128,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"317de5fe-8f24-43a8-9f35-3aeaa54bd85f","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":128,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"a3ad32e3-76a6-4518-a9d1-2826914d8ab8","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":128,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"b24e4958-5cc7-42af-8f08-69e61997270e","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":128,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"1baf5423-be2e-48c4-a812-25fef0d2f679","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":128,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"5f3c54e1-f19b-4119-aadd-de4f545bdab3","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":128,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"c939e5ea-caef-4510-952d-c648201457b8","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":128,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"f7124b11-ce29-4346-9992-fb5140f99852","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":128,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"aeb45f83-ec93-48a8-bd64-c311b1a0f528","block_type":"box","text":"information systems used by Fund service providers. These systems are, or will be, used by a Fund service provider","page_number":128,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"d33fc056-7b55-42e3-96f3-58680232a2f3","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":128,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"1eec623f-13f2-45ef-aaab-9faa0af07b5c","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":128,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"5fdc0a84-04f6-4581-90b0-e27196921881","block_type":"box","text":"provider remunerates BlackRock for the use of the systems. A Fund service provider’s payments to BlackRock for the","page_number":128,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"a39d3c03-910b-4d7d-afa8-fce949c81d63","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":128,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"5c493ed0-5ed1-4dc7-82c8-2f141080ec91","block_type":"box","text":"BlackRock’s receipt of fees from a service provider in connection with the use of systems provided by BlackRock","page_number":128,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"e01170b4-7930-411b-9d82-8e6d1c7f54dc","block_type":"box","text":"may create an incentive for BlackRock to recommend that a Fund enter into or renew an arrangement with the service","page_number":128,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"1aa60049-e486-4a90-b66a-5a7782e2fe0b","block_type":"box","text":"provider.","page_number":128,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"ae56eb4c-4d1e-4239-8c6c-c0775092e684","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":128,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"9f543302-a42a-47e5-952d-bbb560717ef6","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":128,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"001d18c0-8af2-4031-9ef4-48ae7786db5d","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":128,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"4432c149-24b2-4f9a-a5f6-9572a2dc67c7","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":128,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"be625304-5c0d-44f8-9e9a-c9c2c0d4e515","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":128,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"c349260b-4591-4ed1-b0fe-2e2379fe077a","block_type":"box","text":"PURCHASE OF SHARES","page_number":128,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"46ca201d-5ed7-4681-9c08-9ebfa15157eb","block_type":"box","text":"Most BlackRock-advised open-end funds offer multiple classes of shares under a plan adopted under Rule 18f-3","page_number":128,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"be1e9bf1-50e9-4175-a5cd-ea9235f1abd6","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":128,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"d886e8f4-a877-446b-be71-d377b364da8e","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":128,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"0bf0f72b-94f7-4e0c-a79d-b461edeb9e95","block_type":"box","text":"generally not subject to an initial sales charge, and Investor C Shares are sold to investors choosing the deferred","page_number":128,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"76c52c00-39f6-4fe3-ac1b-ea3d6ff89b5e","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":128,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"5db9af7f-4143-4da0-9625-65b7b84f54e5","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":128,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"849ea8bc-168e-4546-9a04-f408a94904dc","block_type":"box","text":"II-97","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"97524f8c-8b2e-4afa-9f81-42f6e297d4c2","block_type":"box","text":"NM1026U-5981128-128/232","page_number":128,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"aeea094c-7af7-4dd5-8be3-472da61e622b","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":129,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"4d6c6818-0f93-4192-aa1c-aea8f8068b11","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":129,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"dc1c13bf-04f1-4364-b9d4-3da6d26c4960","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":129,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"0667a32f-44f4-414d-afa3-aa4e5fb7b922","block_type":"box","text":"platforms, which are platforms where clients invest in the Fund through a single omnibus account in the name of a","page_number":129,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"08000e6d-be1b-43e9-966a-71a47c5d9bdf","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":129,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"a69c50b6-f303-420f-92e9-93d286910024","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":129,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"831305ea-8711-4454-8b0b-9693954869a5","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":129,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"b36e442d-2cee-4fe8-b89a-488bc7617bc2","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":129,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"dbd74bba-3307-4026-a3e7-aa3c0eb35520","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after receipt of","page_number":129,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"3d6dcebd-0847-4f6c-bab5-96cd639a5c9b","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":129,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"e0a9f572-0d0c-4b08-9041-dadd94486d56","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":129,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"13f394b9-9056-4c8c-8432-b9e9fe85b9eb","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":129,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"92d8a24f-39e4-491a-8047-7dc928a508a1","block_type":"box","text":"offering price of each affiliated underlying fund is based on the NAV of such affiliated underlying fund next determined","page_number":129,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"fc1b5b42-b25c-4d2b-9e8a-39e426887306","block_type":"box","text":"after a purchase order is received, or deemed to be received upon receipt by a Selling Dealer, by the BlackRock","page_number":129,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"ab466d46-a618-4e89-aae7-032918b1cd12","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":129,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"c63f2c87-6fc7-42ba-af95-9a246b6708e7","block_type":"box","text":"orders received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New York","page_number":129,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"2a1371e6-ddb1-4cd7-af97-b325ba8a2bbb","block_type":"box","text":"Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed,","page_number":129,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"348c25a9-2e53-4d8f-bfa3-40ffae4e651a","block_type":"box","text":"including orders received after the close of business on the previous day, the applicable offering price is based on","page_number":129,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"d299d2d5-aa54-4a45-b66f-fb406d2ff4f4","block_type":"box","text":"the NAV determined as of the close of business on the NYSE on that day. If the purchase orders are not received by","page_number":129,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"ad6da611-a504-4c29-a294-a870cb0352de","block_type":"box","text":"the Selling Dealer or a BlackRock Target Date Fund before the close of business on the NYSE, such orders are","page_number":129,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"e7a1a9ba-0bce-40b7-8588-9b9c5a520f26","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":129,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"0d50548e-353a-49dc-81d7-0dffaf6b7471","block_type":"box","text":"payment on a timely basis. Generally, if payment is not received within the period described in the Prospectuses, the","page_number":129,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"f6acd422-89e6-40f4-b5f4-716b04997e0d","block_type":"box","text":"order will be canceled, notice thereof will be given, and the broker and its customers will be responsible for any loss","page_number":129,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"cde46323-a7c3-4111-839a-4c6e470769f0","block_type":"box","text":"to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the Transfer Agent.","page_number":129,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"f0a9ce1a-b6d2-4639-9a76-9b6cda885ebe","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":129,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"b7f9656b-3b2f-476a-b13a-b10de596057d","block_type":"box","text":"minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or employees of their","page_number":129,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"70c881cf-2c68-460f-9aea-d0b27c618d71","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":129,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"27aec713-9e03-48ba-9382-cea3f85147d5","block_type":"box","text":"investment is $25.","page_number":129,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"3d2bf879-50a5-454d-b3dd-c07673653b65","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":129,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"34fc2a24-9f87-4ac4-819a-88bdc6ab0070","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":129,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"9fb9dc8e-a085-48c0-b571-b3794ad3b9be","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":129,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"1ed8b1bd-0068-489b-804a-ebe863a04b47","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":129,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"588f2246-e87a-4265-b9bc-c177492c42e8","block_type":"box","text":"subsequent investment requirements and suspend and resume the sale of any share class of any Fund at any time.","page_number":129,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"753bf7ca-4eab-4b1c-a123-ca95adb29c64","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":129,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"8cf7bcd4-cea8-49e0-8690-15b1be3acc33","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":129,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"d79c243f-450f-4fab-8942-a17b5c0d972a","block_type":"box","text":"class of shares of the same Fund, provided that the exchanged shares are not subject to a contingent deferred sales","page_number":129,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"753a3e04-bc08-41e0-aa5d-474d967a85da","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":129,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"13041bbe-a3b4-46c0-951c-61405353b2ae","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":129,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"15533a91-0414-4309-ac6c-b19bfa457892","block_type":"box","text":"Each Fund or the Distributor may suspend the continuous offering of the Fund’s shares of any class at any time","page_number":129,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"4cc934f0-0e3d-42c2-90eb-98d00f7d0dbb","block_type":"box","text":"in response to conditions in the securities markets or otherwise and may resume offering the shares from time to","page_number":129,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"288576f1-0eda-4554-88ad-3b5b56f70a62","block_type":"box","text":"time. Any order may be rejected by a Fund or the Distributor. Neither the Distributor, the securities dealers nor other","page_number":129,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"c391da07-2a18-4e8c-b6db-e30712542399","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":129,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"4f74edd9-6546-4298-b3f6-8051c9e672d8","block_type":"box","text":"The term “purchase,” as used in the Prospectus and this SAI, refers to (i) a single purchase by an individual,","page_number":129,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"867b57a1-e10d-4622-adfb-833579d78b1e","block_type":"box","text":"(ii) concurrent purchases by an individual, his or her spouse and their children purchasing shares for his, her or their","page_number":129,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"7d718299-962c-4e46-878d-625f3e193dae","block_type":"box","text":"own account, and (iii) single purchases by a trustee or other fiduciary purchasing shares for a single trust estate or","page_number":129,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"ef392329-93db-4496-a012-5b5973b98c0a","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":129,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"08812248-d080-4860-8615-3733185cbf51","block_type":"box","text":"purchases by any “company,” as that term is defined in the Investment Company Act, but does not include purchases","page_number":129,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"278e2ba9-9ab4-4824-aacd-64f830907d64","block_type":"box","text":"by (i) any company that has not been in existence for at least six months, (ii) a company that has no purpose other","page_number":129,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"21f23bf1-3edb-4e4a-9cec-dde937773a3c","block_type":"box","text":"than the purchase of shares of a Fund or shares of other registered investment companies at a discount, or (iii) any","page_number":129,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"a07b83f7-9707-4ef3-aab1-3450644e50b6","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":129,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"04f62576-8816-45c9-9c19-188e856ce372","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":129,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"7e6bd71d-d755-4f84-b369-f1f02b8d3771","block_type":"box","text":"adviser.","page_number":129,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"c8587275-1f31-47bc-96cd-82b6ac3d1308","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":129,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"4cba206f-b8d2-4bae-b22c-866ec9565547","block_type":"box","text":"and may not be distributed by a foreign financial intermediary. Under this policy, in order to accept new accounts or","page_number":129,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"e656bbbf-e454-46d9-a7ea-6f89d9a24416","block_type":"box","text":"II-98","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fdbb682c-e2a2-4ab6-9561-84f071c3c651","block_type":"box","text":"NM1026U-5981128-129/232","page_number":129,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8e6e1798-b15c-460f-ad2d-a26a16a1996e","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":130,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"5e506920-194c-44e6-b2b5-e07ff53de121","block_type":"box","text":"requires that (i) a shareholder that is a natural person be a U.S. citizen or resident alien, in each case residing within","page_number":130,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"ed012bce-6f32-4683-9767-0c833d5a0f76","block_type":"box","text":"the United States or a U.S. territory (including APO/FPO/DPO addresses), and have a valid U.S. taxpayer","page_number":130,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"3d463ae8-78f1-4a7b-ba52-22fffeb62d56","block_type":"box","text":"identification number, and (ii) a financial intermediary or a shareholder that is an entity be domiciled in the United","page_number":130,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"6700f488-c770-4254-a684-29b3f66a5d55","block_type":"box","text":"States and have a valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":130,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"61ff8efe-25d2-47f5-ba66-fa26fb3364fb","block_type":"box","text":"taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a non-U.S. address will","page_number":130,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"05de8fc0-4ead-49f8-a612-8f5836b0dba2","block_type":"box","text":"also be restricted from making additional investments.","page_number":130,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"a20cc869-906c-4b48-8d0d-45c9d9995ef9","block_type":"box","text":"In-Kind Purchases","page_number":130,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"a15c42ea-2683-44bc-9675-99b7781bd130","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":130,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"cd2273e2-4820-462b-9795-d215feac161a","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":130,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"05961eda-7ab6-482f-ba9d-846e20e8a538","block_type":"box","text":"limitations of the Fund as described herein. In connection with an in-kind securities payment, the Fund may require,","page_number":130,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"3d66f667-f847-422a-acc1-5c6216dcd837","block_type":"box","text":"among other things, that the securities: (i) be valued on the day of purchase in accordance with the pricing methods","page_number":130,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"11b07c30-11d5-4c65-8d6f-e3154605714a","block_type":"box","text":"used by the Fund; (ii) be accompanied by satisfactory assurance that the Fund will have good and marketable title to","page_number":130,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"5bd5b378-94e9-4bbd-b2a0-9e1dd531f625","block_type":"box","text":"such securities; (iii) not be subject to any restrictions upon resale by the Fund; (iv) be in proper form for transfer to","page_number":130,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"94b5cde8-9370-46c8-bcd4-62abb1e777fb","block_type":"box","text":"the Fund; and (v) be accompanied by adequate information concerning the basis and other tax matters relating to the","page_number":130,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"9de268b3-f605-4bed-8934-4755b9a4d0e7","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":130,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"3eb83721-c763-4298-874b-21b792201358","block_type":"box","text":"of the Fund engaged in the in-kind purchase transaction and must be delivered to the Fund by the investor upon","page_number":130,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"f0f3e627-94e2-4eb8-a256-85180096a639","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":130,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"d3f77ccd-1b72-4002-ae10-732db0331e11","block_type":"box","text":"has settled.","page_number":130,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"03a71293-e6c2-41b4-b463-0529e4d7bbdf","block_type":"box","text":"Institutional Shares","page_number":130,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"a68df5fc-c590-4a7b-bdf0-b4b7216c7249","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":130,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"25a7854e-c264-4f0f-a8c7-8f36ae0ef0d1","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":130,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"efefcd82-4641-4922-96bd-a62a9f0c0846","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":130,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"e184f07e-fe96-4e0c-b679-782feb3d11a1","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A Fund may in its discretion waive or modify","page_number":130,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"bcb98b5c-6994-47c6-b276-9be62433be48","block_type":"box","text":"any minimum investment amount, may reject any order for any class of shares and may suspend and resume the","page_number":130,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"edfc9f73-9887-47af-9f35-01a9f355b710","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":130,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"077620cd-be51-48ca-b90d-5ccf7e494164","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":130,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"097e9f19-e083-4201-a52c-e91d0d946b28","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":130,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"7f78248c-7fe7-4c91-a7c3-27d98278e748","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":130,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"939250b1-57c9-474c-b810-66b26047e350","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":130,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"1fa39b76-1d72-43b0-88d4-8654e82a2709","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":130,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"151c30f2-7b1a-41fc-ab49-a94cc721b9a4","block_type":"box","text":"redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its customers a schedule of","page_number":130,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"5a2dcd3e-8b57-405b-a59f-00eefecc96d9","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":130,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"f1529b6f-2624-4ee6-86ab-8b97c3a0d4ae","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":130,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"ac331ed1-e718-4024-8941-b34282ef7ec1","block_type":"box","text":"these fees and conditions.","page_number":130,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"efae0245-143e-4294-9a49-4d0879dd6ce1","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":130,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"99b64688-8d77-4abb-863e-35f370518ec6","block_type":"box","text":"4 p.m. (Eastern time) on the first business day following receipt of the order. Payment may also, in the discretion of","page_number":130,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"5769fcff-5297-40d9-ab0e-ae6c285c8cc3","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":130,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"8c737604-3350-47ab-9224-558120349f11","block_type":"box","text":"purchase order is not received by the prescribed time, an investor may be liable for any resulting losses or expenses","page_number":130,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"359cfaba-5973-47ae-8440-313ccd49f306","block_type":"box","text":"incurred by the Fund.","page_number":130,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"82b5e37b-a4ab-4258-8c30-a6fc749ca6f9","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":130,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"830cabaf-a6d4-4c8c-b789-b0449624c2b9","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":130,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"158fe5d5-3695-4775-87ad-5eeac7dd0438","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":130,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"33ba4919-ca58-4d55-89c1-3434e521a52f","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":130,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"70a27319-85ed-4797-a6c3-953d2350a309","block_type":"box","text":"investment of $2 million who may purchase shares of a Fund through a financial intermediary that has entered into","page_number":130,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"ad358cb0-1877-4390-b0da-1e57dd1d72af","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":130,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"934641e3-e77f-4b81-af1b-754d248c1b34","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":130,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"2b51eb8e-0819-46e2-a549-8ef8ac9c8443","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":130,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"35889998-55cc-456f-a021-824456a10d6a","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":130,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"6253ca8f-2c16-439f-8cbb-f616b64a74e7","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":130,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"c3de79b0-15a1-44c0-b79a-7045e348a0a9","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":130,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"db47a059-2772-4cbd-aa8c-ab3b8253dd27","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":130,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"13c93d53-ba73-420f-8ca0-31b6118eb81d","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":130,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"69ffc37e-1984-4450-8457-df0b7f0d0220","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":130,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"d988584f-ef65-4f61-8d7c-e65f25fbe92d","block_type":"box","text":"(i) charge such clients a fee for advisory, investment consulting, or similar services or (ii) have entered into an","page_number":130,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"f2bb7a99-b3fe-4cfe-b3f4-2a9ea7215f65","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":130,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"5f4cebd2-cb81-4fe0-8280-cb2e96e50961","block_type":"box","text":"II-99","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b29e906b-d860-4cff-8fee-9d2f193dd96e","block_type":"box","text":"NM1026U-5981128-130/232","page_number":130,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7792db7f-5aee-4a39-a38a-4e1985f2594a","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":131,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"7f03e95f-cc76-4420-b5fa-b8e1ff0f1906","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":131,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"5358ff70-c35d-4397-8cb0-9d71501ba444","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":131,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"60e7fd5f-1593-4e7f-ae7b-bf889bf7459e","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":131,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"e0ab67cc-81d3-4ecd-b296-dc8d15f50f15","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":131,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"1c9dd71d-bd3a-48c5-b364-637a12b347e4","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":131,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"22f9a5c4-ce2c-4cf3-8fbe-2c2d238467a0","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":131,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"30a18010-3c9a-403e-bc6f-b89e6a3f79f5","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":131,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"89b928de-140f-412d-8b49-ba1fd3aa49ab","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":131,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"dd8ed7ca-ed7a-4ee9-90fb-0bf203bebbe2","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":131,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"47e4032b-44e6-4d07-82dc-aea3739c83c6","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":131,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"45b91c32-a59e-41b7-8a4c-4f48ecd15a17","block_type":"box","text":"Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or other benefit plan for such","page_number":131,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"92058a1d-b374-4071-9466-a5cfc1d8089a","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":131,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"5355c802-0e5c-4646-a8ed-62557ff251df","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":131,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"c7d7b99d-31e4-4f86-8266-0789a9244352","block_type":"box","text":"with the Fund. Employees, directors, and board members of other funds wishing to purchase shares of a Fund must","page_number":131,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"5ad6d3d0-50b2-455d-af6d-83d303a53031","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":131,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"cedb3049-d2ec-41d4-9050-ffa52b5dc036","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":131,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"c8311630-1768-41ac-8511-0d4826b82445","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":131,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"7eeaecef-155c-49d5-9613-e45524d3d44a","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":131,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"bc53dcd3-a308-43b4-b413-d18617a9dc55","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":131,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"2e2eb0e4-477d-4c66-a5d0-6bcab5aa0d5d","block_type":"box","text":"for dividend and capital gain reinvestment only. The Investor A1 initial sales charge does not apply to the transactions","page_number":131,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"3c654254-9fbf-42da-a84f-5bf5366a9633","block_type":"box","text":"described in (i) and (ii). For ease of reference, Investor A, Investor A1 and Investor P (discussed below) Shares are","page_number":131,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"dceb2264-c4bf-4e98-babc-b23b968efb83","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":131,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"e49d1f73-f3be-4acd-a82f-535850c623fa","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":131,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"43330a47-872b-492c-9a1f-8adb1588bc60","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":131,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"56f497fc-1628-4ff5-b9d8-5a4b403e1c57","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":131,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"d0e97dc5-f201-4cce-bfe1-f8098e153b5a","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":131,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"4899b5a5-87ca-461d-90b2-0df1ddf4c1b1","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":131,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"96884cf5-7b7c-4951-b476-ff673992d7ce","block_type":"box","text":"for an extended period of time also may elect to purchase Investor A Shares, because over time the accumulated","page_number":131,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"0a63c9f0-f08c-4b25-bf47-4066e1746444","block_type":"box","text":"ongoing service and distribution fees on CDSC shares may exceed the front-end load shares’ initial sales charge and","page_number":131,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"9d0c5af9-9eb2-401a-8071-dbbde34c06bb","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":131,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"b2fcb590-6d74-44c5-98fd-41f6745b1889","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":131,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"96f00cd0-1feb-47b5-9f8d-75d13feea533","block_type":"box","text":"BlackRock front-end load and CDSC share holdings, will count toward a right of accumulation that may qualify the","page_number":131,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"94b0d383-dc42-40c2-b579-68db8945c5ad","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":131,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"de39afb3-ba65-485c-9877-2c0cf58f6b34","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":131,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"c13ca70a-b522-45ed-b49e-7089cb7e3b87","block_type":"box","text":"have lower total returns than the initial sales charge shares. The ongoing front-end load shares’ service fees will","page_number":131,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"4490efc8-5d1e-4b2a-9676-b94e2113c884","block_type":"box","text":"cause Investor A, Investor A1, Investor P and Service Shares to have a higher expense ratio, pay lower dividends and","page_number":131,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"0185ddd4-572b-48b8-9de4-1929c77a1c67","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":131,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"fac2c580-c302-4009-a492-5bb4369fb57f","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":131,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"c9c58a58-0fb4-40d0-ab69-aee5bbfbf549","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":131,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"4d353d40-52f6-44cb-903a-585aae5d383a","block_type":"box","text":"periods indicated.","page_number":131,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"46944e49-58e3-4b90-9f8a-44a3bcec47cc","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":131,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"a8bcb279-ed92-44c2-b409-4cb70b435753","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":131,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"481620d1-2563-40b5-8897-06ec3c46f2b9","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":131,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"cf57fe72-9d5b-4313-8efd-f8e0bf6e4c18","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":131,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"6039683c-b9c6-47db-9bd6-96575a15179d","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":131,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"232c7244-32a3-456b-a6bb-1a35b5e8fdfa","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":131,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"99ac873c-0489-427b-8b22-a0de6315b4e3","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":131,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"5cf60c14-a586-45b9-ac4b-f9f677fac277","block_type":"box","text":"entered into an agreement with the Distributor to offer such shares and are subject to an initial sales charge. The","page_number":131,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"41ea2da1-e6b7-4bf9-940f-be0e3d985d60","block_type":"box","text":"ongoing front-end load shares’ service fees will cause Investor P Shares to have a higher expense ratio, pay lower","page_number":131,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"ed0387e7-24e2-4943-83c4-12b3a620c525","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":131,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"f96af9e6-db85-4cda-aea7-4b18c431665b","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":131,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"ec0c5c19-c181-49dd-a0dc-ccb36dfd2a80","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":131,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"9f4ad2ef-46de-45e5-8782-3296c1bf34d7","block_type":"box","text":"II-100","page_number":131,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6e14b64e-d7e2-42df-8d62-d09b786ef9a4","block_type":"box","text":"NM1026U-5981128-131/232","page_number":131,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e47bf989-6ad1-4f6e-ac65-0026c31ec955","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":132,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"be596c76-ca3d-4692-80b8-fc5efb2fdc64","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":132,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"dbc8b5e5-5c88-4f42-a9ac-49a62e09291a","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":132,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"904c6028-2496-4ed3-bf3e-63bfe1a55408","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":132,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"359999e8-a5a6-437e-97bd-ef63f8412ff9","block_type":"box","text":"Reduced Initial Sales Charges","page_number":132,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"a3c6cf6f-5841-4790-b23e-315e19ebe5cb","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":132,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"0a331215-67eb-45e2-99d8-0471976c6f96","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":132,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"08a84a59-6045-406e-9fa3-e34d968985fb","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":132,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"5c6ac5a7-f903-4ea5-9131-866f93a3495e","block_type":"box","text":"exchange shares of a Fund from one class of shares to another class of shares of the same Fund provided that the","page_number":132,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"b8403be5-50ee-4b38-8b08-0cbd81cf8b1f","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":132,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"1b4d3a34-3eb8-42a9-9764-06242150f1c8","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":132,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"4951f1c6-9f99-4fe9-b887-82cdd1f0e3f4","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":132,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"d870ad5f-4bce-4d31-8abf-0757c19d0ce5","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":132,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"73730a13-718d-460a-8ce5-2814d646a1c7","block_type":"box","text":"Reinvested Dividends.","page_number":132,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"5e6ecb0c-91ae-4104-82ae-86ee83ce9e49","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":132,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"ae939dc7-5298-471b-8462-d4b2183da94e","block_type":"box","text":"reinvestment of dividends.","page_number":132,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"0ecafc17-5b67-4a9c-bd74-30f7c0299470","block_type":"box","text":"Right of Accumulation.","page_number":132,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"c7ae06a6-74b8-4f71-b193-cd6fec8b1fb9","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":132,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"33fa896c-77ef-414e-b74b-83e32cb02cbf","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":132,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"af83dbea-474a-4aa3-911d-69f9fc7ee898","block_type":"box","text":"a reduced front-end sales charge: (i) the current value of an investor’s existing Investor A, Investor A1, Investor C,","page_number":132,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"0d7ad804-6fc7-4637-bf80-aec5b9390e5f","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares in most BlackRock Funds, (ii) the current value of an investor’s","page_number":132,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"0ee09741-75bc-43ab-ac2f-808c351c1a33","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":132,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"1bf44ebf-38c2-48f4-bd95-c472a1a04208","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":132,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"478f575e-0dac-418e-8e4d-e27d065a31a6","block_type":"box","text":"CollegeAdvantage 529 Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":132,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"63dad3c6-7108-4fb1-aeed-0fdc799d9a28","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":132,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"03d89333-0701-4f0c-acc8-b5a5fd5fb296","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":132,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"2de05d68-c3a1-4485-8319-216ce2a340e4","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":132,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"c34dfec3-1099-40bb-a55b-73e47504dcb2","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":132,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"8c576575-08ad-4cde-985d-e6544f031070","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":132,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"3b8afa67-c28b-4fc3-8604-90ca14514340","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":132,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"29284f6e-2b70-49dd-a88b-e53eddc6ef8a","block_type":"box","text":"charge, an investor’s existing Investor A, Investor A1, Investor C, Investor P, Institutional, Class K and Premier Shares","page_number":132,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"88fdc311-91bc-4bd5-acec-a34fa9e91c7c","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":132,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"6a5b45f1-cac0-49a7-be0b-ce332a924b41","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":132,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"4a6da922-fc1c-4745-9d39-a99858792977","block_type":"box","text":"Letter of Intent.","page_number":132,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"4351672d-5795-4e15-8737-5f2616af06fd","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":132,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"96515361-5411-473f-af66-c8c260579151","block_type":"box","text":"Intent” stating the investor’s intention to make one or more of the following investments within the next 13 months","page_number":132,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"b1de33e4-b3ae-4962-bb27-a83f8bca5e86","block_type":"box","text":"which would, if bought all at once, qualify the investor for a reduced sales charge: (i) buy a specified amount of","page_number":132,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"a5495fa4-0ef4-4e26-8154-8c2290f54b88","block_type":"box","text":"Investor A, Investor C, Investor P, Institutional, Class K and/or Premier Shares, (ii) make an investment in one or","page_number":132,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"d9b6ca8d-0363-480b-8e0d-289c3d66dcf5","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":132,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"cf98ddda-ee45-4929-9901-e3271780baf8","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":132,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"ed3b6192-68f0-4986-9dd0-36bc6ac7e613","block_type":"box","text":"initial purchase requirement. The 13-month Letter of Intent period commences on the day that the Letter of Intent is","page_number":132,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"54602d9b-ed78-4cbb-984d-9a5599a9e2dd","block_type":"box","text":"received by the Fund. The market value of current holdings in the BlackRock Funds (including Investor A, Investor C,","page_number":132,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"c80d1798-0991-40f5-985c-877f3170683a","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":132,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"ec851d1c-3d6c-4981-8bce-b1113a17ba94","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":132,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"3c7d75be-dab0-478b-94aa-7297bdc07614","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":132,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"30a898fa-3095-4e64-ae35-c9a170595613","block_type":"box","text":"the Fund of (i) any current holdings in the BlackRock Funds, Eligible Unlisted BlackRock Closed-End Funds and/or the","page_number":132,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"cac96058-ac15-4b1d-840f-8c276cf3d740","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":132,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"fc3dccd4-dbef-469a-8101-47e8b1c293ef","block_type":"box","text":"subsequent purchases that should be counted towards the Letter of Intent. During the term of the Letter of Intent,","page_number":132,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"4825da4c-e8d7-45a0-adaa-425c5c4beafd","block_type":"box","text":"the Fund will hold Investor A Shares and/or Investor P Shares, as applicable, representing up to 5% of the indicated","page_number":132,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"c042796f-877b-4c02-99c7-2c6da4ecbc9e","block_type":"box","text":"amount in an escrow account for payment of a higher sales load if the full amount indicated in the Letter of Intent is","page_number":132,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"2f49a78c-7e10-43e0-a0b1-eebcf396dbe9","block_type":"box","text":"not purchased. If the full amount indicated is not purchased within the 13-month period, and the investor does not","page_number":132,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"75c4837a-92c1-40c6-b04d-a83ac88ee65d","block_type":"box","text":"pay the higher sales load within 20 days, the Fund will redeem enough of the Investor A Shares and/or Investor P","page_number":132,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"96032874-720e-4714-854a-07b8635424d6","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":132,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"74791fc8-005a-4910-831d-98350512884f","block_type":"box","text":"Placement Fees.","page_number":132,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"67de4ebe-db51-4d66-a96f-56195128cfd5","block_type":"box","text":"BlackRock may pay placement fees to dealers on purchases of Investor A and Investor P Shares of all Funds,","page_number":132,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"86158dd3-5d95-4d47-9ee1-e077b5942699","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":132,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"f307ccf3-953e-4690-bdcd-b92285aa3af9","block_type":"box","text":"II-101","page_number":132,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1c3f7d1f-4678-4614-b128-cdc9f9e7665c","block_type":"box","text":"NM1026U-5981128-132/232","page_number":132,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4c003826-eeea-4086-99b4-f90af2b31bf8","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":133,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"50790805-11db-42be-90b3-e46ac423c530","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"c065da06-7229-43db-bbc2-0a7b461269eb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":133,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"924abc4d-397d-4aaa-bb1f-9f818e5fcf29","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"486c13f4-058d-4e20-89ba-4cbf685fcdf6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"2b341b77-11dc-442f-a008-eaabea7d538c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"b1cb63fb-e12d-41a8-b679-e166976ff00a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"5e392325-f82a-427c-aa0a-987942f74270","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":133,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"f63e74d3-0595-44f2-885b-cdf2f0578607","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":133,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"674cda1b-d0a1-4692-9e63-7e9eab4e8a4a","block_type":"box","text":"purchased prior to July 1, 2020) of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV","page_number":133,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"2f23d0c3-4688-4fe8-9087-7d254083d535","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":133,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"ecc154bb-3dd2-44f0-8f5e-7f2e908de182","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"d39ea1ba-549c-4d77-8491-a6996a98e596","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":133,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"69f996c9-bd4b-4871-a672-c5af49b33b33","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"cf43482a-927a-4f9a-aa12-8c1323f9daab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"089c3fed-7e63-41fb-88ac-f6192334e18d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"6d499827-e69a-48c0-88f1-4db93635afd4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"ce19c9ad-0c06-477e-9b5d-2825ced29ad7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":133,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"99b471d7-52be-4708-b289-d812c1687456","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":133,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"46e1114a-d0fd-4f57-91eb-3807d0d98d65","block_type":"box","text":"SM","page_number":133,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"ca2ab026-7f2e-4142-bd3b-baa5776e3c7e","block_type":"box","text":",","page_number":133,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"15e19074-7a6d-4771-8fd6-a5f43bff9c57","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":133,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"656cab30-2ea9-4db8-8c5c-9c3f8a41757c","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":133,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"3a64286f-8bbd-4a2c-9aab-92ed223dee42","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"7c1891b1-448f-48a9-acc0-235dabdb3240","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"123d3874-41d6-4053-ae26-3956c095ad7e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":133,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"0f28787b-a8c5-45cb-95bd-3a4fe0a38437","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"08aaab43-afeb-4d72-a853-aad77476037d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"799ceea9-c2f5-436e-98ec-1022259d1475","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"26a1eea0-945f-4ea8-9931-3634e5ff89d4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"f8f1a431-0556-41f6-8d33-cc57ebdbbd25","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":133,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"8e7ab072-d1ba-4558-bfd4-35a5ec5dc4e8","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"aac6a6b5-4100-4220-b541-26bdebeae442","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"8312d78a-1313-4ba8-8178-336ce13c3874","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"5795e970-4699-4c2a-8020-2f0a5d2889b7","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"0501ecb9-cc57-45cf-87cf-5066b91d9859","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"5f8b7493-c738-4b7d-8c46-c7360bc36620","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"e92d8c4a-4ef3-4543-9f60-88d7252fe70f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":133,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"6d8e7ffd-e867-433e-845b-ac14e06d373f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":133,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"f02d1283-8022-4b51-8e44-aa9abcf519f9","block_type":"box","text":"may be up to the following amounts:","page_number":133,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"7d3aa61f-4264-45ac-9fe8-9d9d23171897","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"fbdbe2b5-1d10-41e9-88d2-de64db9e5350","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"25a6b1ed-578b-4738-a4ea-22d3b494e785","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"e0419e28-e2fb-4165-bdf5-3670dce936af","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"e16d6c66-1be4-4dc6-b08a-c40c82950938","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"a4a41824-185e-4a71-8995-cd13077d2475","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":133,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"38eaa51b-1d87-4d53-b252-027538107481","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":133,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"22984b40-6e53-4919-95e7-5e7329c571f6","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"0e66e4fb-a332-4837-a67e-091fad224140","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"995f3e80-2338-4da3-b6b4-243bb5d4b7b8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":133,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"939633fc-e031-46d1-84a5-50d2c6feb477","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"5c6b8d1e-7659-4487-965f-3f80e4e0def3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":133,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"075df93d-239b-4f0e-95ee-1aac6203b8da","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"fe830d5c-707c-43d0-96ec-9fddb405da62","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":133,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"4ea4b60e-0508-4ab7-afb1-28b4b2f9f3e6","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":133,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"12ca4b9e-ab19-44a3-997e-53fdbc367593","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":133,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"68ded94f-ffe1-47ea-ae1f-97e75cd418f0","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"cd08a49f-e189-448f-8213-6ae67f968b64","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"e882cb26-1993-44be-bc61-2c7e1bd86f25","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":133,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"d25ca44d-e7f9-4b12-b553-eaaeda46a591","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"2251b854-bd3f-41e9-9357-d0a3369de946","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"cd8433ab-8a15-4ca5-bca6-6370d31c023c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":133,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"42b4171e-98ad-49c1-a3d6-deddead700fb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":133,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"7806aaee-36cb-440f-8fe5-3624bf1a0c8e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":133,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"f3f1e3d8-6ffd-4015-8b08-99ef67b15de1","block_type":"box","text":"Inc. (for shares purchased prior to March 18, 2019), the placement fees may be up to the following amounts:","page_number":133,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"a959a11d-9be2-4f4e-88e7-5252bf77ef60","block_type":"box","text":"$250,000 and above . . . .","page_number":133,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"da6f0b0a-ef8c-4493-8c86-b0209ec04b48","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":133,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"b0793a96-1c32-4ced-81e4-35e087f39acf","block_type":"box","text":"II-102","page_number":133,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"00ee5dcd-b34e-4222-9705-4f48d7b59a49","block_type":"box","text":"NM1026U-5981128-133/232","page_number":133,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"47c98c6a-a437-4771-a44a-884e7eee3005","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":134,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"07ce4a82-2870-4017-9c4d-bd60cf8eb22f","block_type":"box","text":"Inc. (for shares purchased on or after March 18, 2019 and prior to July 1, 2020), the placement fees may be up to","page_number":134,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"5dd22b74-6e7c-405f-bab2-7ad092a83685","block_type":"box","text":"the following amounts:","page_number":134,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"fcdd7533-727f-4cf9-b5d3-8110cee50bfb","block_type":"box","text":"$100,000 and above . . . .","page_number":134,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"10e251d2-0040-4419-95e7-7581738f8675","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"f430476c-d631-4b84-b3ce-24f89625e6df","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":134,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"541c6bfd-084b-4b4f-982b-16d1022ec3a9","block_type":"box","text":"Inc. (for shares purchased on or after July 1, 2020), the placement fees may be up to the following amounts:","page_number":134,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"e86ea75a-596d-4a13-8437-98fe3ab96881","block_type":"box","text":"$250,000 and above . . . .","page_number":134,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"fe6130b2-9427-41dc-8ef9-bc0a9f692a83","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"9f5bbe45-9dae-4a9a-ae98-a055a893aa91","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":134,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"ca0ae2cf-88c0-4826-80c7-f6430aed7f67","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":134,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"0b7a91e3-ce4c-4286-9114-0572b64f576c","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":134,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"6cfe2c29-c576-4158-b2e4-98f372ffdb9f","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":134,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"c7ee7c87-b6d2-4a32-b6a6-e6d03701e5c5","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":134,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"83114e6a-600f-4c89-815c-fdb0b30004bd","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"e543ca88-abe5-49de-822a-9d370918864c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":134,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"a9811510-e3d4-4640-97d0-3df4aca9bd94","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"28848a8c-295d-4053-8eed-53fb69a5fa48","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":134,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"256e62d6-1755-4d4f-9d01-a15ae1009609","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"7af302e7-e8c4-415d-9d18-378815790e3a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"d45a08c5-75c7-4c6b-9c5c-ff9daff78bb4","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":134,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"3a0df9e1-1204-4ec1-9c68-a9ec0ced6c9a","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":134,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"0ef5660a-b7dd-4ed5-8fa5-85dfd4313771","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":134,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"3bc811ed-dd3f-4246-9d3f-780abd48a373","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":134,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"9141f886-7fab-42fc-b4dc-610d23d3e0ca","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"86a3b253-1208-40c9-b209-d634660e7bf1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":134,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"fd5d0e38-8a2b-4ea7-aed8-227f74e409e2","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"4ca573d9-cdcb-46ad-a278-2cb60223a70c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":134,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"e203c2fa-5229-462a-bcbc-606c158449bf","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":134,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"13ee7a43-fa9f-4330-8eea-80596ec8c16d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":134,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"a7128506-c9f6-4276-852d-62030a5dbca7","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":134,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"f6d0ba7d-6ad0-466d-b07e-e8ec2c82fb87","block_type":"box","text":"®","page_number":134,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"014e801c-477c-41db-a7bd-db31009224ea","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":134,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"af3c84b4-30a9-4aff-bd30-ae250d6ca22b","block_type":"box","text":"®","page_number":134,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"b830e98d-c68d-41d3-9eeb-d153781ecf9b","block_type":"box","text":"Index 2035","page_number":134,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"98b30830-3872-408a-b514-0b379f19c2a4","block_type":"box","text":"Fund, BlackRock LifePath","page_number":134,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"814e9ca9-6960-4c52-b4de-db0d9763bc5f","block_type":"box","text":"®","page_number":134,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"7ccf282b-972a-44d7-b21c-1df837caefaa","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":134,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"42a44cf8-0ce5-4587-a8a5-04fffce5d2b9","block_type":"box","text":"®","page_number":134,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"46365360-5a37-47b4-a498-8a03d312344c","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":134,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"8d370ea3-14a4-41ae-ab33-d02a7cee4c6b","block_type":"box","text":"®","page_number":134,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"f28c6913-3f20-4e1a-ac08-eefafa379c4b","block_type":"box","text":"Index 2050","page_number":134,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"b1baf0e5-f631-47a0-b334-ab1e3ab72d34","block_type":"box","text":"Fund, BlackRock LifePath","page_number":134,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"923c6da1-5570-4d08-b4c8-33daf671b554","block_type":"box","text":"®","page_number":134,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"709b533e-dfbf-4449-90f4-d3b7c52c72eb","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":134,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"d210f0b5-f548-4352-ab7a-6aa67796d3af","block_type":"box","text":"®","page_number":134,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"17b8c50c-5d7f-4b11-a8bb-37f5a615cbb4","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":134,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"cee0c242-f628-4048-aa41-8c378adc1768","block_type":"box","text":"®","page_number":134,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"18911fb4-c25f-4518-97db-23eaabc5a66d","block_type":"box","text":"Index 2065","page_number":134,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"ae617baf-1680-4f16-8954-f3ac78db2c92","block_type":"box","text":"Fund, BlackRock LifePath","page_number":134,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"97c89fcd-2cd7-49b5-810d-e36171cb2c80","block_type":"box","text":"®","page_number":134,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"accba3d5-c828-4e02-b216-6c2e8862846f","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":134,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"0aa9885b-9e49-43b5-a861-4e2edf6f1e73","block_type":"box","text":"®","page_number":134,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"03336683-578e-4f02-a4a2-35b37750660f","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":134,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"e2e94669-c83d-4950-98a1-cd9db9ea607a","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":134,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"8285c3bb-0c0e-4f66-8c7b-6a6faaed6fa9","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":134,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"761da447-aca2-4943-8949-dacbe2508e86","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":134,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"0657f4ad-ef51-403f-b310-e405bc622424","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":134,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"866b7bc7-9ff5-4e41-84c6-82a6d0a5d3d4","block_type":"box","text":"SM","page_number":134,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"b6c5d9a8-2877-446c-b0f8-16a16f46eb12","block_type":"box","text":", the placement","page_number":134,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"af8610d9-4442-4cd1-8ce7-c9f672c4c954","block_type":"box","text":"fees may be up to the following amounts:","page_number":134,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"65beb043-fceb-42fb-bc7f-e8dcdf484176","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":134,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"2bbee362-d126-414f-a275-a7878699b5c1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":134,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"f43926d0-0861-463e-8003-4b9ede20e04a","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":134,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"60d80427-4a94-43b0-b41b-f36635bd996b","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":134,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"028eb3a7-dcde-4e55-9afe-95b4811b5537","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":134,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"c554cb8f-7f2b-487c-b468-365e79ec74b8","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":134,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"081e9d64-d3f9-4bda-a76c-05a63f1c1ce3","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":134,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"b732b2e3-f115-4d95-a38a-31327a68fdb6","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":134,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"51a03f84-7d04-4b27-9036-1a12176c11c5","block_type":"box","text":"$1 million).","page_number":134,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"38e0258f-ef62-4fe0-9df3-94264e2b32d1","block_type":"box","text":"Other.","page_number":134,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"99cab44e-f334-4cd3-aa8f-932dd6d7f86f","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":134,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"850c695a-d371-48c9-afb7-7c357247d157","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":134,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"6f0e1c40-041c-4102-ae52-e6bbe1fd606d","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":134,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"5c00c913-7c79-46a4-b68e-97e020415938","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":134,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"6778260c-7ba7-4660-870b-a0750da431aa","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":134,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"484dc8f1-4057-4ac2-95e2-92a992f7af93","block_type":"box","text":"proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs","page_number":134,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"75d17681-4e90-4170-8ee3-297455e5c7ec","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":134,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"6f1d6db6-25c2-4929-81b5-88614f42259a","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":134,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"7e89f3f0-9d0f-4bc6-b3b6-2b7530b0f603","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":134,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"cf839484-43fa-49e4-bc86-ca5731c0acbd","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":134,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"2bc7cb92-ba40-409a-9d99-625edb77f3b0","block_type":"box","text":"II-103","page_number":134,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"490a19b6-5cc7-4859-908b-7d465ce9573a","block_type":"box","text":"NM1026U-5981128-134/232","page_number":134,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2e291eab-57c6-4c63-ab42-75136eb8d84e","block_type":"box","text":"fee-based program (such as a wrap account) under which they pay advisory fees to a broker-dealer or other financial","page_number":135,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"ec10cdfa-875c-451f-8e21-2cd9c4bc23d1","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":135,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"adcd62bb-317d-46b9-bc42-ff6a7d178bbf","block_type":"box","text":"approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not","page_number":135,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"1dbed42f-edb8-43b8-a9bf-8f0b5d006cf7","block_type":"box","text":"charge a transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into Roth","page_number":135,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"512edff1-a2fa-4cc2-a8e4-6a65978ca2f2","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":135,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"0bce3255-fafb-4abf-8a71-47a0c4687246","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":135,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"6d5f2dae-c684-481a-8ed1-7aba8cc10f6f","block_type":"box","text":"involuntarily liquidated from a Fund, who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":135,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"657bc60e-1af4-4305-aa50-71324417eb46","block_type":"box","text":"only up to the amount that was liquidated). The following persons associated with the Funds, the Fund’s Manager,","page_number":135,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"de7687b0-a949-4a0c-923b-8a1b8b3cb8d3","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":135,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"6ef63005-b4fa-49ff-9416-646f3cdc3057","block_type":"box","text":"or Investor P Shares of each of the Funds without paying a sales charge to the extent permitted by these firms","page_number":135,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"faba7ec4-227d-4eb1-b94d-1fffa51be67e","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":135,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"f314c58a-2144-41ed-975d-d4b1d38ef47f","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":135,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"f5713eb6-5780-4f3d-9e42-89b3066f85ed","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":135,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"813ac1fb-1684-4b8a-8131-8ceb7a7217f4","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":135,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"bab4a304-3c93-4f69-9cdc-e1aab80928c4","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":135,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"cd088115-8f45-4131-9095-152fd740f7fc","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":135,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"f70573da-efd3-4004-9be7-b15ae1705b7c","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":135,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"ec143c1b-6f10-42e2-9326-c2fe1b8df378","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":135,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"b0e1f1fe-8b32-42e1-8a0e-7e8e15c24384","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":135,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"bbfa3e00-487c-4171-ad6c-ca41bba3d120","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":135,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"559fd99a-104e-4ca3-978f-8faf82ef1a42","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":135,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"087fa152-22a3-4f9d-a90f-c528267f9a75","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":135,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"31ecc24b-6ed0-49f2-8205-d98c37f0e21d","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":135,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"bae5e5ef-6351-4321-8f65-d5dc8b643eb5","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":135,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"3bda3de1-cc29-4292-821c-2888529175f1","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":135,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"b5bcba58-5c1b-4131-be0c-d8f7f446adfa","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":135,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"ff40cdbd-1790-4b3c-bd01-3e8ce6aba7eb","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":135,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"6ead6662-69ed-4759-b351-43976c72dd5e","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":135,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"b6631330-4b62-4d57-b675-1527ffa6d8a2","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":135,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"497d416d-c2ca-456a-81c5-0fbaa26fdbdc","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":135,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"89c32613-ac0e-44ea-a90c-859a5f304389","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":135,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"a5fcbe35-da2e-43a2-bff1-169903b1aafc","block_type":"box","text":"BlackRock Funds V) or more in Investor A or Investor P Shares, as applicable, you may not pay an initial sales charge.","page_number":135,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"bd213858-7441-484f-9990-64d9fb219081","block_type":"box","text":"However, if you redeem your Investor A or Investor P Shares, as applicable, within 18 months after purchase (a","page_number":135,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"1dffb530-a621-4d03-b877-0c0dc442182a","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":135,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"a5b1806b-2c71-4b65-9e36-6881b6576b02","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":135,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"a31c66ed-4dd2-46ec-8328-a9ad882cf093","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":135,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"aee76fd6-a123-4407-b579-6995f0276b73","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":135,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"a4ccbddb-8c54-4814-b8e9-48a85ae21bca","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":135,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"a579045f-0abf-41cb-83c6-4b00eb4f685b","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":135,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"43b4bb20-6779-4d28-b8da-4c08a0d15dce","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":135,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"012d2ddd-3ff4-46dd-b7f4-925ec96cf29f","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":135,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"8f67c28a-4bb1-4fee-b71c-317ac1f323f1","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":135,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"de66a6f8-bbcf-4860-9046-537012588c4f","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":135,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"d0b9a92d-3444-46ca-b304-2fb1a0f8a0b8","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":135,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"7db65939-2b90-4424-90ab-b78766c7d252","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":135,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"ed541f99-afa6-4dfe-a995-62012f894cb6","block_type":"box","text":"The deferred sales charge on Investor A or Investor P Shares, as applicable, is not charged in connection with:","page_number":135,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"6d520801-d6fc-42bb-86e6-3a44d465b72d","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":135,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"01beba08-f082-45b8-94c1-e41a30424ad5","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":135,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"26e3ad20-3f41-45f4-abb0-5defe7ddcc0e","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":135,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"227d9a16-2312-4c52-89cf-eebb4c7e14ea","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":135,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"6c15dfcd-9590-484d-8e33-23d06b1b5f58","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":135,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"8e2c5ae6-ccd9-433e-b923-b8bca3618c2d","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":135,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"a5d69668-9e96-43fc-bc0b-686b831ca800","block_type":"box","text":"distribution of account assets to a beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as","page_number":135,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"4e5656cf-cd68-4391-abb6-59052eeba2d0","block_type":"box","text":"defined in the Code) subsequent to the purchase of Investor A or Investor P Shares; (f) involuntary redemptions of","page_number":135,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"2ac7fa39-9428-4b29-bf3a-d662d4e8cf89","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":135,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"30c9b873-dc48-414f-b795-1bf5e7c715f4","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":135,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"e9bf2cff-4d28-4725-bf79-5f7ca9ae42c9","block_type":"box","text":"II-104","page_number":135,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c4901724-a318-4390-a9b7-985ba0b5749d","block_type":"box","text":"NM1026U-5981128-135/232","page_number":135,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e52a7328-af87-4d2c-b392-c519fcd0eb17","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":136,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"5a157af0-f0fa-49de-b8eb-94204ea58ae7","block_type":"box","text":"the absolute discretion of a Fund.","page_number":136,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"a3824d1e-6ff6-4768-9876-16521fded3a4","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":136,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"c977098f-f0c9-483d-be69-f2cd69561210","block_type":"box","text":"fee, the Fund may, at its own discretion, waive the CDSC related to purchases of $1,000,000 ($250,000 for","page_number":136,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"7808e257-7e30-4f68-9f86-5a2b8473b647","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":136,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"4c5a345e-77b0-43eb-8033-c367b1c2f720","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":136,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"95a3f23e-c1ed-4185-89e8-cd948484ed93","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":136,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"f0d56584-4776-4271-a673-fd69e0b549ae","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":136,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"148d4856-cc18-4656-8caa-76b74859454c","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":136,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"ed7c3ee7-2908-4610-a428-db26bd4e8cc7","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":136,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"d98a7d4b-6081-4f9f-bc17-f6cf3266ce12","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":136,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"15b23988-bf41-4055-9318-c6674e16488e","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":136,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"a6eddd33-33aa-4a90-b748-646a22d44f27","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":136,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"d6fc4ce4-8a0a-4c5e-b2ce-edcab13904c9","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":136,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"290a6b90-33a6-44d4-ac88-17651fc32e83","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":136,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"462158fa-9543-4015-ba42-7c7d59ec1ed5","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":136,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"f8359d7c-c12f-4b7b-9113-d2e2bbfcc7a7","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons, are required","page_number":136,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"6c747a7c-fef9-486e-99d0-c4c36ada25d1","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":136,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"327fb2e4-38f8-4047-b89b-3c20c3fb063c","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":136,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"9ecca580-ec1e-4fbd-809c-38648fec1f62","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":136,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"0a0ad6c2-6cf6-433f-bbad-910cc08d7954","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":136,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"a7490d6a-a4ec-4590-ae00-ea401a516355","block_type":"box","text":"connection with the acquisition of the assets of, or merger or consolidation with, a personal holding company or a","page_number":136,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"2c6b5d50-cb5f-4507-8082-08c54308364a","block_type":"box","text":"public or private investment company.","page_number":136,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"b15f7613-1802-45f8-b599-fd3337c17330","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":136,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"9b9965ae-5721-47ea-acee-811ef953d7f3","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":136,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"1ba9de5c-587d-4d1b-bbce-c581aa06b47c","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":136,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"16904670-ba3f-409f-88c9-dbcad7433a6a","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":136,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"ad60be02-0bd2-45d6-8d83-8fcde8e11652","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":136,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"1206fecb-6c96-4bda-92fe-890fa1fd27ca","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":136,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"57e46014-4737-4083-a6ca-a523e391b967","block_type":"box","text":"as to the length of time they intend to hold their assets in a Fund. If you select Investor C Shares, you do not pay an","page_number":136,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"4f91e36a-2216-4050-9673-434f44a88643","block_type":"box","text":"initial sales charge at the time of purchase. A Fund will not accept a purchase order of $500,000 or more for","page_number":136,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"3e54027c-2a86-4fa7-979f-5b912fd562f5","block_type":"box","text":"Investor C Shares (may be lower on funds that have set a lower breakpoint for NAV). Your financial intermediary may","page_number":136,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"8891e013-a90c-4b5c-b7eb-a2ac357f15cf","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":136,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"e0197b9e-b47a-4f6e-8ed9-8cd8dacfdd6c","block_type":"box","text":"Investor C Shares are not available in accounts opened or held directly with a Fund that do not have a financial","page_number":136,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"96b6637a-1660-4ee4-8771-bbc10e5bfa41","block_type":"box","text":"intermediary associated with the account.","page_number":136,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"1af7296a-cee9-4227-9488-33d3615aa487","block_type":"box","text":"If you select Investor C Shares, you do not pay an initial sales charge at the time of purchase.","page_number":136,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"cfe028a1-d08d-4e35-bec8-03569646326d","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":136,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"49f654c0-cf6b-4689-8395-99c88d84a145","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":136,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"98660e72-c4be-4029-82af-085ff5a5f5c5","block_type":"box","text":"these fees potentially may be offset to the extent any return is realized on the additional funds initially invested in","page_number":136,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"c1727c1d-5052-4d7a-a6c4-1c891ea07172","block_type":"box","text":"CDSC shares.","page_number":136,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"6504caec-9845-478c-aa61-7e325ae0710b","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":136,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"091d056b-a12d-42a8-bc73-79f3a707e2f5","block_type":"box","text":"of purchase from its own funds. Proceeds from the CDSC and the distribution fee are paid to the Distributor and are","page_number":136,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"a5692148-8cfb-4a7a-963d-f45a68398e1f","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":136,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"4286dd95-3152-41b8-8733-2aff7f213e30","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":136,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"edc7c693-c136-4e1a-869f-d3d69ab2dda7","block_type":"box","text":"of the CDSC and the ongoing distribution fee facilitates the ability of each Fund to sell the CDSC shares without a","page_number":136,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"6296bcec-d648-4509-bcbe-719cba7d1f33","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":136,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"122de780-a337-47e5-87eb-3ab92d10cbfa","block_type":"box","text":"Imposition of the CDSC and the distribution fee on CDSC shares is limited by FINRA (as defined below) asset-based","page_number":136,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"d17ff7d5-d97d-4634-891d-acd3a9295b4c","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":136,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"ffc8d620-4aa3-44d0-bb4a-90172d56d411","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":136,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"100d2e7e-ef0a-4812-a286-5d4df19a9758","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":136,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"d6312e3f-85e7-40ad-b3d6-27503d488bd1","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":136,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"af9d5cb7-409d-4ef6-9732-f26248514775","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":136,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"e22c2c04-ea18-4619-9c2e-591a47381e31","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":136,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"aadce71b-f9b4-4c0a-a60a-b9bf561c317a","block_type":"box","text":"II-105","page_number":136,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"76387424-0138-4ded-af5b-3fe866565c82","block_type":"box","text":"NM1026U-5981128-136/232","page_number":136,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"af27ec85-53e9-4b63-857e-b0c9b6ec5ede","block_type":"box","text":"with sales of Investor A, Investor A1 and Investor P Shares. These may depend upon the policies, procedures and","page_number":137,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"f1726353-139b-446a-892a-4b728ecd82ad","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":137,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"5d00fcc0-27b6-4c0c-a208-37f67d5a12c4","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":137,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"00849b67-1678-4565-bc96-48a6ecd85075","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":137,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"ae91d8d1-f0dd-4942-a525-033128aecf0f","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":137,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"92aedd12-7f3e-45d2-9978-2fa1cff7793b","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":137,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"2c64ccb4-64d0-4f81-b4af-eb02cc3b627d","block_type":"box","text":"Investor A Shares.","page_number":137,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"d5024109-10e1-46f6-a81d-1f3f86523ea9","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":137,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"9041f0e8-c67c-44dc-a311-fce137fd5cf9","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":137,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"a3fbcdce-3e80-4bd6-8c05-f75495f800cd","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":137,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"17246642-8034-4803-aa6d-91c5513176dd","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":137,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"20cd9c75-60f8-45eb-befd-b0e641cadf5a","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":137,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"1bc5ad11-ff08-4be8-b085-9b33038932ba","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":137,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"df2317dc-ab8d-474b-9878-0d7ecf3580d0","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":137,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"9ddce4f8-5b05-460e-8364-1bad43549126","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":137,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"d1defa72-1520-420c-8f78-e95b8131a0c6","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":137,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"f0d599d5-659b-4be2-a6ef-bb910051c3fc","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":137,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"76365df4-32c4-4714-a7c4-c2acb7f41c01","block_type":"box","text":"the Effective Date. If, as of November 23, 2028 (eight years after the Effective Date), a financial intermediary has","page_number":137,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"ac059cdd-dc25-4e33-b7c8-f726fbcfdd26","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":137,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"a0f7b967-40d0-498f-8dba-e3ae5591e296","block_type":"box","text":"holding Investor C Shares through such financial intermediary will no longer be eligible to hold Investor C Shares and","page_number":137,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"e0a2220a-9e92-481d-849d-b1b90ad8c1b8","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":137,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"a7534c82-698b-46a8-a8db-83395c96e966","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":137,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"98ffaf83-983b-4ab4-940f-914302ff037c","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":137,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"02ea8ac2-c00a-4f75-b0f5-cf83c5a8435b","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":137,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"a129a2eb-7684-48c4-81d7-1262393188ad","block_type":"box","text":"“Investor C Conversions”).","page_number":137,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"21ce83a0-60cd-4c1d-920e-3bde8d5607f1","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”) on the","page_number":137,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"1672ce3b-0a4a-445f-8e8b-aec7ca8d4459","block_type":"box","text":"basis of the relative NAV of the shares of the two applicable classes on the Investor C Conversion Date, without the","page_number":137,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"de9fe5f1-636a-41de-92f4-8d1d9d3cdb99","block_type":"box","text":"imposition of any sales load, fee or other charge. The Investor C Conversions will not be deemed a purchase or sale","page_number":137,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"f478bb37-4f11-4dcc-a820-8157152721b1","block_type":"box","text":"of the shares for U.S. federal income tax purposes. Shares acquired through reinvestment of dividends on Investor C","page_number":137,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"89f18bf6-9dca-48cb-812d-11ddb7ffea6f","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":137,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"bae50a35-4aa4-43a4-8aa7-01a57067d4dc","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":137,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"b4d097ec-d4e4-42a2-8a02-65a864153148","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":137,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"2999238d-af12-4955-b0f4-bffc653ecbcc","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":137,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"d58d0eed-bedc-487a-8e2f-fad618a7dd44","block_type":"box","text":"Investor C Shares that are redeemed within one year of purchase may be subject to a 1.00% CDSC charged as a","page_number":137,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"97fa2f58-c878-4119-a95a-618885284310","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":137,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"c7d30f25-602c-4112-923e-da86b9a67a04","block_type":"box","text":"a redemption, the calculation will be determined in the manner that results in the lowest possible rate being charged.","page_number":137,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"56d13bf4-15bc-410d-9a41-2a654aa40345","block_type":"box","text":"The charge will be assessed on an amount equal to the lesser of the proceeds of redemption or the cost of the","page_number":137,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"7e646cfd-7794-4ae9-9dea-0d8b331bc854","block_type":"box","text":"shares being redeemed. Accordingly, no CDSC will be imposed on increases in NAV above the initial purchase price of","page_number":137,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"b6c68a30-d47c-4388-a054-ad4e1fac3ecc","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":137,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"c51b2237-9bb7-4a9f-b69a-12823050c197","block_type":"box","text":"dividends. It will be assumed that the redemption is first of shares held for over one year or shares acquired","page_number":137,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"fb6c3815-5f53-4736-8f99-989ca04946a0","block_type":"box","text":"pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A transfer of","page_number":137,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"2a93a182-c02c-4367-9e36-3ab686bacf6d","block_type":"box","text":"shares from a shareholder’s account to another account will be assumed to be made in the same order as a","page_number":137,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"0551c9b9-75d8-4b56-8b6e-5eaa0c063aa6","block_type":"box","text":"redemption.","page_number":137,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"0343bb9a-6695-40df-b8bb-ac6f22ad7de7","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"ac75d7c5-48b3-4fe8-a20d-bedf5c8f7598","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":137,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"6e5c97a4-1c41-4d3b-b357-dfb07a69a6be","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":137,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"8fa9bc69-3d7c-4972-9f90-c94eb123d326","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":137,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"faa3596f-f33e-42b0-85ff-8c70f1d1a423","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":137,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"faa79378-4125-4544-8f3a-6b0c627b4be2","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":137,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"7d3b5e30-17b8-4db1-827f-7c4b545afb73","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":137,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"35cc6459-6603-4c8c-9299-099670cc017b","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":137,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"1cbd9f21-0eb4-4757-808d-93932b0d607e","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":137,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"8db276e8-3f4b-4c43-9f30-3d1b0b62e86a","block_type":"box","text":"shareholder’s death as long as the waiver request is made within one year of death or, if later, reasonably promptly","page_number":137,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"33340631-6cc4-407f-b707-268bc9a6a21f","block_type":"box","text":"II-106","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5e03e45d-fbd1-4429-9427-fb6fbbe638d1","block_type":"box","text":"NM1026U-5981128-137/232","page_number":137,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"02429f84-2a23-4179-9f86-215c4775588e","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":138,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"153bbe22-53ee-41f3-b60d-980451f520bb","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":138,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"32dcc8a2-e5fa-4899-ad24-388e7ef6917a","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":138,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"3b538844-9ab6-40e8-88c6-57e2ed942b26","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":138,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"a1f4a3b5-c70b-4455-a6d3-46b07a64ef17","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":138,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"085545cf-f37b-4cb6-ad1d-dce0980c590c","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":138,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"4aa9ebbe-6f99-418a-a4f7-3558e70077d4","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":138,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"9f808ad1-b2fd-4ec1-9966-4700094502f0","block_type":"box","text":"demonstrate hardship, in the absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares","page_number":138,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"2666f715-e528-4b62-8660-537b88768543","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":138,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"5a40eb35-31c1-46a6-b542-b3120bc81e17","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":138,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"0d359c6f-51ae-4fe6-933e-d36231f8e77b","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":138,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"9c6444f1-4499-4a70-9119-2286809bd649","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":138,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"4b83fc3f-bfe5-4ce0-b706-ece823f58a14","block_type":"box","text":"Class R Shares","page_number":138,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"0cf0d89a-ccc2-4639-a752-ddb321c9b4cc","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":138,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"fbf45333-aae4-4cf0-a29c-6f33ae36bd89","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":138,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"c277be7f-4736-4838-9904-50e9ce0558cd","block_type":"box","text":"charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per year and an ongoing service fee of","page_number":138,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"d6b62e9c-30ae-4934-8a1b-35af5914824b","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":138,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"145f19fe-83d6-42c7-8162-63238521e162","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":138,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"8d8b6bc3-f78d-4fe4-b181-e46ad94fb8fb","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":138,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"1afa0c21-83c9-4f3c-8136-f1e1d86911c2","block_type":"box","text":"If Class R Shares are held over time, these fees may exceed the maximum sales charge that an investor would","page_number":138,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"850ab337-dfe2-459f-a291-508f8909fec8","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":138,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"168d8f9f-615f-4fd9-9838-20ec3f289fc8","block_type":"box","text":"Class K Shares","page_number":138,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"643d2dea-3448-4eb2-b68b-885d86922645","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":138,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"8e49db60-9a3d-48cb-bd15-9aa4ce428f25","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":138,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"7d4461da-4a2f-4269-8602-e841c38495bc","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":138,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"a12e0c65-c0a8-4ea4-a905-da3f0d89b1cd","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":138,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"92f84f55-297e-4980-be5a-1ff8912b8299","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":138,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"51dbfde4-832f-4cc5-ba6c-6df43978a5cc","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":138,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"fc2a2e40-34a6-42e1-811c-2391410c75f3","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":138,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"f394de34-0408-4e1c-bcc5-5feb002fbfec","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":138,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"494764cd-0357-430b-aee4-de78aa495075","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":138,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"0ec8281a-50dc-4997-8234-50bd5ebfdf1e","block_type":"box","text":"banks that purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":138,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"5a710d34-a75f-4e2c-8c37-866c5c128306","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":138,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"bbecb23a-c6ed-4f17-ba83-4b7b5c7929ef","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":138,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"1f8db436-c593-4b8a-8f2e-eb54b7e880fa","block_type":"box","text":"offer such shares to fee-based advisory clients through an omnibus account held at the Fund or (b) transacts in the","page_number":138,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"fe849a71-5523-437c-8db5-30303d31f0b1","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":138,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"e2dd881b-4c29-4e8c-aa0d-765a72b94254","block_type":"box","text":"met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have continually held","page_number":138,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"02146c15-9bb9-4a06-9f40-72fe4e02f880","block_type":"box","text":"Class K Shares of the Fund or the respective Predecessor Fund in the same account since August 15, 2016. The","page_number":138,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"d617aab5-4421-4e9b-9c49-cd488499ced4","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":138,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"a708d142-3989-48e5-b2a0-2b18b575f216","block_type":"box","text":"distribution and marketing agreement.","page_number":138,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"2bbb9be8-eab1-4d59-89fd-1524b7efa9c9","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":138,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"4f2eb362-4148-484f-929a-df51a01b5382","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":138,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"d72e5eef-7f5c-431f-8532-ff7ca02944a0","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":138,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"35eafcd9-c80b-4077-8604-b582667f3757","block_type":"box","text":"Class G Shares","page_number":138,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"fa460f0f-4f97-432d-b80b-3c379ae0de2c","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":138,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"e03075ea-16ad-49ab-a4f4-c0b8e1431ab7","block_type":"box","text":"are those where clients invest in the Fund through a single omnibus account in the name of a financial intermediary","page_number":138,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"83f000fe-fe96-4291-987a-805bbd16379b","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":138,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"70a5ed79-a113-43be-b9e4-722b4c3569e8","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":138,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"c2277015-c2f6-45c7-82bd-d1d7e51d7a1d","block_type":"box","text":"eligibility requirements.","page_number":138,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"635c0f7c-4af6-4e2b-9cad-72db60342faa","block_type":"box","text":"II-107","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"11a67851-7276-4bcc-8f94-c6ea860ada29","block_type":"box","text":"NM1026U-5981128-138/232","page_number":138,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2c5cb99d-f287-4784-919c-0ba00fd46f4a","block_type":"box","text":"Service Shares","page_number":139,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"9fc0a642-c5e5-4037-94a6-991140de0922","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":139,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"285b15f7-193a-486c-a636-80db4a9af03d","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":139,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"21bd7095-2d21-49e3-bfa9-30f547d3a1df","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":139,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"0be91abf-3426-43fb-a51b-00ce9ec139aa","block_type":"box","text":"®","page_number":139,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"607d1209-cc0d-42e8-bfb4-bba1ebe4f0a9","block_type":"box","text":"Fund in 1996; and","page_number":139,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"fbefb943-a4da-4c7e-adc1-916a0713fd0d","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":139,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"4bd371f2-1cb0-412a-82b0-bbaa37a895bf","block_type":"box","text":"SM","page_number":139,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"a27762c1-0c72-440e-89db-0f0a8c4b97fc","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":139,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"a1be53c9-d370-4ee5-9c07-596f549333d5","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":139,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"ebdd26d2-e4f6-4712-be04-9f73defa190f","block_type":"box","text":"BlackRock Shares","page_number":139,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"319bffc6-88f5-45ed-a9fc-830cef341e02","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":139,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"bb518f07-7e18-4cbc-a5f7-66c43299eb0b","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":139,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"21efb702-fa62-439f-8cc2-472474702809","block_type":"box","text":"fee-based programs.","page_number":139,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"ebee3043-fd8c-47a1-8686-4d7c56f451bc","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":139,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"6f84b6fc-7729-451b-be26-972239de4e98","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company Act with","page_number":139,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"fdf7e634-845e-4960-ba0a-94d5580dfabb","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":139,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"002c1c44-7f0b-4e47-baba-4a9f31f01dff","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":139,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"e9f1eb86-8ed4-4abc-bc31-812aacfcc58e","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant shareholder of","page_number":139,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"98c55942-5ba7-48f5-83d2-9c6711d8def8","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":139,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"a419f7bd-bdfb-4601-a1c9-ac8a7dd8fb6e","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":139,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"cfe5cb18-a846-4329-ad59-3a85e409a377","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":139,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"dd758de8-8907-4f64-bae4-d41bbb0dc18b","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":139,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"a2537f5b-f7e7-49cb-85d4-c90930da4407","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":139,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"5fbd9923-fc97-4cf4-875d-237c8f8f04d1","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":139,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"2c572d02-9039-4d0b-856a-5109cfbdd40b","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":139,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"6ca537c8-933c-42e2-8fd9-a687e127f6ea","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":139,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"3148c7d3-085b-4bbd-beb7-550b2a608def","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":139,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"3d147108-604a-46b4-b0a9-a6c7fbb4386d","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":139,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"02442a71-1f05-4d2c-9b32-a169c2da7b84","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":139,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"b0b0c299-9125-440b-b4a8-5d1bd844f7d9","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":139,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"fc085d45-c0d9-4651-b568-321fefc54cc9","block_type":"box","text":"Service and Class R Shares of a Fund. Such services are intended to supplement the services provided by the","page_number":139,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"30210741-1d81-4c46-ac45-8a0912ac418c","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":139,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"821cf72d-a3d1-43f7-869f-483d9be22363","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":139,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"fb14ca61-96aa-409e-be50-d10b9e27e565","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":139,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"90df9bbb-e42f-4b8d-8c4d-538413ac3804","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":139,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"0bd924be-1506-43c2-b1f0-f1ce096c83ce","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":139,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"babda9a5-0bef-4576-a6a0-9faca568a48a","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":139,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"9f7a9bf3-32f4-48ec-a9e9-a4bffaccbc89","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":139,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"c96ccbe0-5760-4da5-a8e9-b53577444f9f","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":139,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"ec3e663b-e3ab-4864-aec9-029af8ccb604","block_type":"box","text":"Payments under the Plans are based on a percentage of average daily net assets attributable to the shares in","page_number":139,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"79b399b3-3c45-4ebc-a59b-89fd71949009","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":139,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"2ac18d66-b5a6-42d8-b71c-36e0755e3ebd","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":139,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"8320eb3b-d2c4-474f-9a54-0e18450c6d55","block_type":"box","text":"with respect to the related class. Information with respect to the payments under the Plans and expenses incurred in","page_number":139,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"ec5c7242-cae4-4e94-98bb-b6f6b73c6323","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":139,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"b3f62ebf-ea2d-4c79-86ec-fd246ca1a0a9","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":139,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"39900798-8179-48f5-ba3d-e2c343848495","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":139,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"bf25eb81-9ce9-4227-aea0-8213edf29590","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":139,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"c039d018-337c-4974-bc93-e0a1d551df42","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":139,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"8e840148-60d9-486a-8f31-a6c771ad9304","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":139,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"783cf330-d492-4ca3-8517-e8a1fcd9fe3c","block_type":"box","text":"compensation for selling different classes of shares.","page_number":139,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"9a03ea48-2a5e-4827-92ab-f1c4903abf14","block_type":"box","text":"Each Plan is subject to the provisions of Rule 12b-1 under the Investment Company Act. In their consideration of","page_number":139,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"2203c358-3f14-47c6-9ce0-540113c23491","block_type":"box","text":"a Plan, the Directors must consider all factors they deem relevant, including information as to the benefits of the Plan","page_number":139,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"db75d8bb-806e-4f52-b12f-43caf4e64c80","block_type":"box","text":"to the Fund and the related class of shareholders. In approving a Plan in accordance with Rule 12b-1, the non","page_number":139,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"8b92ae4d-fb55-4127-bd34-9d78e7cf66e6","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":139,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"9098d6e4-0a43-42fa-8e69-309aeedef430","block_type":"box","text":"II-108","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2f03bfbc-a43a-48a7-a9b5-ad2d185727c7","block_type":"box","text":"NM1026U-5981128-139/232","page_number":139,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d016d678-68fd-4464-baf1-6bb913f37d2e","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":140,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"67519355-dadf-4947-8654-e9cbd78e3c94","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":140,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"df8fbbb7-703c-4fc8-864f-32047bc13d9c","block_type":"box","text":"(ii) the Plan will continue in effect for so long as its continuance is approved at least annually by the Board of","page_number":140,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"b5598de6-903a-40ff-abf3-64bd8da7e89d","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":140,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"8c8cb68a-9849-49b3-8d7d-f4a1777db4a2","block_type":"box","text":"Company Act) and who have no direct or indirect financial interest in the operation of the Plan or any agreement","page_number":140,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"675ac5c4-6c45-4113-a39e-27ab84fdaf7b","block_type":"box","text":"entered into in connection with the Plan (the “12b-1 Directors”), acting in person at a meeting called for said purpose","page_number":140,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"79447319-fd01-4495-adba-7a0877456845","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":140,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"e532f2eb-ef9f-4b52-a53d-fa9b634b6c2e","block_type":"box","text":"approved by the Board of Directors, including the 12b-1 Directors, acting in person at a meeting called for said","page_number":140,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"000368db-3e97-4c47-a823-fd6ea812220d","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":140,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"b0595c8a-ef16-43af-b165-3d91a716632f","block_type":"box","text":"services pursuant to the Plan shall be effective only upon approval by a vote of a majority of the outstanding shares","page_number":140,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"904e1570-5572-4394-b939-5f82813d8d5c","block_type":"box","text":"of such class and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":140,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"0751fcfb-7532-4a50-89f9-a6d78b252282","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the Fund’s Directors","page_number":140,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"b8177538-0a99-41dd-a1b3-0a33e6f1b5b7","block_type":"box","text":"who are not “interested persons” of the Fund shall be committed to the discretion of the Fund’s non-interested","page_number":140,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"00dbd9a4-58ef-453a-ad1c-d955fbde969c","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":140,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"bd6a2554-38f0-4416-a53d-4ba992e1b316","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":140,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"9c90c3cb-3e95-4990-a988-f145b43dce53","block_type":"box","text":"easily accessible place.","page_number":140,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"5bcfd82e-64e1-4d20-925f-295eda98ecf7","block_type":"box","text":"Each Plan is terminable as to any class of shares without penalty at any time by a vote of a majority of the 12b-1","page_number":140,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"6b5c83a3-5915-4c63-957f-ae4f7d1007ef","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":140,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"fd7680a5-62a8-4a74-8d86-8cfd50cf8cd9","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":140,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"ce5ad129-79b4-4517-9412-3c3c0e697163","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s most recent","page_number":140,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"45a45369-9c6f-41fd-87c3-f2911c5a1402","block_type":"box","text":"fiscal year.","page_number":140,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"f820f851-5d7a-4638-81a5-bc6b916147de","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":140,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"7c9894bf-a43e-4cb1-af07-08b262a25e0e","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":140,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"d1159c29-20f7-47bb-8ea2-e77454bf938a","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":140,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"b4330a3e-bb41-42f6-941e-4db8fa92716e","block_type":"box","text":"the distribution fee and the CDSC borne by the Investor C Shares. This limitation does not apply to the shareholder","page_number":140,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"173d3bd2-9f8e-4242-a741-210e38820107","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":140,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"3b8855f9-b952-481d-832a-8556ef170229","block_type":"box","text":"distribution fee payments and CDSCs payable by a Fund to (1) 6.25% of eligible gross sales of Investor C and Class R","page_number":140,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"6f527f05-3a61-4d1f-bad4-b666c0188b84","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":140,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"a49ba149-c3c3-41ab-95d7-0f635195e84e","block_type":"box","text":"(2) interest on the unpaid balance for the respective class, computed separately, at the prime rate plus 1% (the","page_number":140,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"ae5932c6-ad7f-4b60-9408-f55031d5879f","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":140,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"1ac8deb8-ef12-41b6-b9e6-29fe17d62fef","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":140,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"b14943d1-7155-4cd3-8eb1-6c883e68e4a7","block_type":"box","text":"for comparative information as of your Fund’s most recent fiscal year end with respect to, if applicable, the Investor C","page_number":140,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"1c1dafac-8368-47d1-a326-292449a2d24b","block_type":"box","text":"and Class R Shares of your Fund.","page_number":140,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"a2f76b7a-0156-4ebb-a61f-05a1c5b50cc4","block_type":"box","text":"Other Payments by the Fund","page_number":140,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"4b382a28-2a4b-422e-8cf7-1693d5398457","block_type":"box","text":"In addition to shareholder servicing fees that a Fund may pay to a Service Organization pursuant to the Plan and","page_number":140,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"a831ca75-d8b1-485b-abb0-d433d1b11302","block_type":"box","text":"fees the Fund pays to its Transfer Agent, BlackRock, on behalf of a Fund, may enter into non-Plan agreements with","page_number":140,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"92fa8714-d964-4495-bdf3-faa4004a95d2","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":140,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"96ec3ddf-25dd-483f-be92-8ed100a88a64","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":140,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"b6b1a32a-80e1-487d-a12a-3022e9fd78d9","block_type":"box","text":"generally based on either (1) a percentage of the average daily net assets of Fund shareholders serviced by a Service","page_number":140,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"2c7eaf94-b9bf-4bfb-9640-e6d54ae4a988","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":140,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"4bfb4ff1-d353-4a4c-a2f7-df437d8721c1","block_type":"box","text":"of these payments may be substantial.","page_number":140,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"11aba7c6-345b-4e0e-be0f-fc439b149fe4","block_type":"box","text":"Additional Payments by BlackRock","page_number":140,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"7abcb9f0-d66e-422c-812c-ee7a464b3924","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":140,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"d53dbf96-04d3-4c4d-a5b6-b1ee47611a68","block_type":"box","text":"may compensate Service Organizations for the sale and distribution of shares of a Fund, for services to a Fund and","page_number":140,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"464c7358-37c5-463c-9b4b-d4de6a438ad5","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":140,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"dbcc6378-4396-4871-bfec-cb86de479205","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":140,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"19fe6cc4-d251-4ca8-898b-12af1f84c3cf","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":140,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"71b83fa2-8756-4233-b5c1-fc36e8649b99","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":140,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"22ea08f9-e396-4c87-8a4b-568b1cffc683","block_type":"box","text":"paid by a Fund to BlackRock for various services, such as investment advisory services). These payments are not an","page_number":140,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"58ae06cd-4dad-4756-8464-43019e39f32b","block_type":"box","text":"additional charge to a Fund or its shareholders and do not change the price paid by shareholders for the purchase of","page_number":140,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"fe3efd92-f30f-45ea-9ba6-56e7b0f2aed7","block_type":"box","text":"a Fund’s shares or the amount a Fund receives as proceeds from such purchases. Additional Payments made to","page_number":140,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"7d31e4e5-eb2f-4821-b18a-b34a4c17cb9a","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":140,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"d1633e59-4d5d-4dc8-a90b-dd7cedbc8cf6","block_type":"box","text":"II-109","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5d3a79df-7434-4136-adc5-aa69106159d6","block_type":"box","text":"NM1026U-5981128-140/232","page_number":140,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2a55e5f9-3942-472c-b8e6-972df671d1b6","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":141,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"3721fe00-00c8-408d-8b08-f89703313b00","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":141,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"9c549752-ca8b-4c6e-b3fc-ff3de4cb6a6e","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":141,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"005d7665-5916-4b63-8e11-f093d6e83557","block_type":"box","text":"such payments in connection with the sale and distribution of Fund shares, are required to be disclosed. While FINRA","page_number":141,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"02f4f943-0175-44ec-840e-dd8fcd8bde19","block_type":"box","text":"regulations limit the sales charges that shareholders may bear, there are no limits with regard to the amounts that","page_number":141,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"03ff6ae2-574f-4ee9-89e8-ccf7759658c0","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":141,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"9430f948-3f29-4f2b-82b1-c5f581eeb0c9","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of Customer accounts","page_number":141,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"9905b3ae-cf56-435f-90fb-9896d3f32c25","block_type":"box","text":"maintained by a Service Organization, may be based on a percentage of the value of shares sold to, or held by,","page_number":141,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"47d493f2-c2bf-487b-b34f-dfb645e51b33","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":141,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"2b024d94-091e-4e94-8488-34289ec94a80","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":141,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"d7bde418-9828-4071-a161-dc20f9a8cbb9","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":141,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"6116076a-f24f-4ab3-82d3-79e99921e2f7","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":141,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"057949cc-c658-40a9-8c53-cb687fcfcc74","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":141,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"7b953306-925f-4fed-a968-c99d0a2de52e","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":141,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"7eae8078-0324-42a0-bced-6e53d3a6ecf4","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":141,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"bb9a0983-37a6-4cec-b6fd-93b2301f85ea","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":141,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"5b2bbcc9-c656-44c3-918b-2bcf8ad45109","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":141,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"b1f99c49-c306-473e-be00-c4d298b3ae13","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":141,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"a81b370f-2a28-4e9b-9364-370a8c2a0cad","block_type":"box","text":"same Service Organization, or one or more of its affiliates, may receive payments under more than one category of","page_number":141,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"25d9ecfc-76ac-4818-9ee5-d7bebffbda8d","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":141,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"cd5366be-534c-466f-ac6f-18e9e5400b8c","block_type":"box","text":"Funds.","page_number":141,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"d2c4ece8-a80e-4705-8ac3-64706569f4ec","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":141,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"7510a309-3c61-4e7b-ba5f-b5350a6d1088","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. 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These payments","page_number":141,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"77733254-dbb7-4d15-8447-5cbd90f07329","block_type":"box","text":"normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by that Service Organization, and (b) 0.21%","page_number":141,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"39517bc6-1e5e-4b9e-9f1f-a6eb1ba0d3aa","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":141,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"7ebd55c4-ae49-4566-b7c9-d68203113999","block_type":"box","text":"B. Shareholder Services","page_number":141,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"e99161ae-8d18-4cf7-8c69-2d2d62b3dc3d","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. 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BlackRock","page_number":145,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"a31c59b0-07df-4f80-8088-f0a9e889f9e8","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":145,"box":{"x":69,"y":376,"width":817,"height":11}},{"id":"19c14e85-32ec-4f05-970c-c0f63a3112d4","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":145,"box":{"x":69,"y":391,"width":815,"height":11}},{"id":"63197a56-2916-4304-915f-0cc3fb57ec37","block_type":"box","text":"traded products.","page_number":145,"box":{"x":68,"y":406,"width":116,"height":11}},{"id":"42954891-dcb7-4c8b-82c7-0c6fc6c0d499","block_type":"box","text":"F. Conflicts","page_number":145,"box":{"x":102,"y":429,"width":78,"height":9}},{"id":"2e8bbd4a-bd85-4f4b-9189-2e4398216078","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":145,"box":{"x":101,"y":452,"width":710,"height":11}},{"id":"5d2e4e46-d33a-4b7d-828f-6f4fb533be4d","block_type":"box","text":"arrangements may be an important factor in the Service Organization’s willingness to support the sale of a Fund","page_number":145,"box":{"x":69,"y":467,"width":803,"height":11}},{"id":"df4c91c9-60ec-4c8d-b965-06d51ae927ba","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":145,"box":{"x":69,"y":482,"width":788,"height":11}},{"id":"0a238f1e-d956-4047-9ca0-104e76c94fcd","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":145,"box":{"x":68,"y":497,"width":819,"height":11}},{"id":"3425fbd9-a349-43b9-8fe8-308e4e6c2d31","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":145,"box":{"x":68,"y":512,"width":473,"height":11}},{"id":"e1d0ad4a-dd26-4b88-a3a3-106b350f479d","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":145,"box":{"x":102,"y":535,"width":793,"height":11}},{"id":"58892b97-d246-4ff5-90e1-2252b244e701","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":145,"box":{"x":69,"y":550,"width":835,"height":11}},{"id":"0649c526-e12f-4f0a-b395-d4430f436c6b","block_type":"box","text":"the extent Service Organizations sell more shares of a Fund or retain shares of a Fund in their Customers’ accounts,","page_number":145,"box":{"x":68,"y":565,"width":833,"height":11}},{"id":"560ff856-c3b5-44a4-8a88-f7f038abc6f2","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":145,"box":{"x":70,"y":580,"width":830,"height":11}},{"id":"3090232c-4740-428d-b37b-b303bca7b8fb","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":145,"box":{"x":102,"y":603,"width":774,"height":11}},{"id":"d79849e6-dadb-4908-81fc-eddc7b10ccec","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":145,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"c8f907fe-e6c8-43a6-9d18-8e4ac0f34084","block_type":"box","text":"purchase or redemption of Fund shares or for account-related services which are in addition to the sales and other","page_number":145,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"c3e42dd0-d980-43ff-b3a2-12c8fbd70b0b","block_type":"box","text":"charges described in the Fund’s Prospectus and this SAI. Such charges may vary among Service Organizations but in","page_number":145,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"aa26d194-69b6-4ad4-94b0-af4d94673106","block_type":"box","text":"all cases will be retained by the Service Organization and will not be remitted to a Fund or BlackRock.","page_number":145,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"dab10fc3-fc06-4959-8a35-eb5216d9f050","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":145,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"958e8771-f900-441a-9b22-dcf6c2a7b0bb","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":145,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"31478b0b-2f33-4b59-9b09-7ddd44ccdf1a","block_type":"box","text":"appropriate.","page_number":145,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"81f12512-6ffe-412e-a563-c5c0cad20337","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":145,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"b1ea1aef-c69e-4f07-9830-e5665078b30a","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":145,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"b6a1764f-4965-4d00-a89e-5548b773451a","block_type":"box","text":"described above.","page_number":145,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"06104961-e359-446c-9c14-a2c23d007b3c","block_type":"box","text":"REDEMPTION OF SHARES","page_number":145,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"37ad0f4e-1dc7-4990-984b-f8b3dee18d23","block_type":"box","text":"Shares normally will be redeemed for cash upon receipt of a request in proper form, although each Fund retains","page_number":145,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"e8785378-c66b-4b96-a506-7238dddf2e2f","block_type":"box","text":"the right to redeem some or all of its shares in kind (valued in the same way as they would be valued for purposes of","page_number":145,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"12deed50-ab24-413b-b558-7c2b4b35aa67","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s portfolio holdings at the","page_number":145,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"901d5e40-cef0-4d25-8d62-0a9c2b1836ec","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":145,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"c0d283b8-4868-427d-b108-3b32ac4f835c","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":145,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"0030a6dc-a965-4554-a260-73aa3bcfd845","block_type":"box","text":"able to accept securities in kind, and may also be used in stressed market conditions. If this occurs, the redeeming","page_number":145,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"6b5b1671-34db-472c-ba8b-463e6b6ef285","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":145,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"b6fa861e-3bdc-49b4-a76d-51c7e1df6987","block_type":"box","text":"Fund has elected, however, to be governed by Rule 18f-1 under the Investment Company Act so that the Fund is","page_number":145,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"a3aaad19-2c76-4400-b29c-1bfb8ba68abe","block_type":"box","text":"II-114","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fa620135-8dcb-498b-b3af-7ee543455998","block_type":"box","text":"NM1026U-5981128-145/232","page_number":145,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c371af9c-66c6-4669-b403-95eb6b473189","block_type":"box","text":"obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period","page_number":146,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"cbfad8f5-7ba3-440d-85b1-7ab4185c55dd","block_type":"box","text":"for any shareholder of the Fund.","page_number":146,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"93e3dced-6c3b-4af5-8fa4-f5239932bbc8","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":146,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"d1f89939-7e4b-4439-af8d-a9ab6c773727","block_type":"box","text":"redemption. The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":146,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"a86770d3-1a61-4990-a5cc-953e6280e5d0","block_type":"box","text":"time of purchase, depending in part on the market value of the securities held by the Fund at such time. Except for","page_number":146,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"fadaaef7-849c-45f5-aa21-abcf4c8232db","block_type":"box","text":"any CDSC that may be applicable, there will be no redemption charge if your redemption request is sent directly to","page_number":146,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"1bf663b0-ab27-4a41-b7ab-09a918cef361","block_type":"box","text":"the Transfer Agent. If you are liquidating your holdings you will receive all dividends reinvested through the date of","page_number":146,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"4eae5da0-b7ea-4e92-8a95-4d425a060702","block_type":"box","text":"redemption.","page_number":146,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"89201fc7-ec13-48a1-91f3-15128f225481","block_type":"box","text":"The right to redeem shares may be suspended or payment upon redemption may be delayed for more than seven","page_number":146,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"144a69d2-be80-48e9-8961-61b80dec9b91","block_type":"box","text":"days only (i) for any period during which trading on the NYSE is restricted as determined by the Commission or during","page_number":146,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"ab7e2d0c-f7ca-45c3-8dec-1f174e5a297f","block_type":"box","text":"which the NYSE is closed (other than customary weekend and holiday closings), (ii) for any period during which an","page_number":146,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"32990aac-40ec-4adf-b420-9e64b71f1477","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":146,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"e083cd83-9622-4162-8ac4-6f4d82a1a7d7","block_type":"box","text":"determination of the NAV of a Fund is not reasonably practicable, or (iii) for such other periods as the Commission","page_number":146,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"874f1d77-602d-443d-a2b8-8a0b26f421d7","block_type":"box","text":"may by order permit for the protection of shareholders of the Fund. (A Fund may also suspend or postpone the","page_number":146,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"29d8dc1e-c561-4dbf-aaef-c57a35c89d3e","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":146,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"4cd3c5c8-92f0-4563-ad94-4e2046236474","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":146,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"69795fd7-3c59-4b88-841e-a904b996a066","block_type":"box","text":"credit with a syndicate of banks that is intended to provide the Fund with a temporary source of cash to be used to","page_number":146,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"d6f1d682-1631-4763-a5f6-aca7ec153760","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":146,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"df019258-c2fa-4b7b-99b7-3f3d5575337f","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of the failure","page_number":146,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"046c0760-98d0-44fd-b501-6d583390210c","block_type":"box","text":"of a shareholder to make full payment for shares purchased by the shareholder or to collect any charge relating to a","page_number":146,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"4fe26444-2452-4951-a983-66d8f1a6bf49","block_type":"box","text":"transaction effected for the benefit of a shareholder. Each Fund reserves the express right to redeem shares of the","page_number":146,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"0e65aba9-4b3a-4057-92d5-58bf7dcbb58b","block_type":"box","text":"Fund involuntarily at any time if the Fund’s Board of Directors determines, in its sole discretion, that failure to do so","page_number":146,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"eb46270b-ae3b-4b45-9419-fa14c8090ed1","block_type":"box","text":"may have adverse consequences to the holders of shares in the Fund. Upon such redemption the holders of shares","page_number":146,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"d3c4fe1f-51ff-4297-8bf2-a90d9419b05e","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":146,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"aeec42e9-1128-41a7-a756-7bef681f2f12","block_type":"box","text":"Redemption","page_number":146,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"93a447c1-11d5-4017-83d9-ff7c6d46338e","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":146,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"825c00a2-ea95-4ed7-9ecf-772e89ac7585","block_type":"box","text":"Redeem by Telephone:","page_number":146,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"deb8af9d-4d80-4e46-b86e-c1be086052e0","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":146,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"011f9d95-d76b-4e27-8421-465d289bc849","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":146,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"20bcc70a-119b-42c1-9341-696594c4db47","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":146,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"e692159b-3b8b-4a13-990a-c8ca1af33588","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":146,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"5917dca0-00aa-4b28-b959-f6b999ec60e2","block_type":"box","text":"verified banking information on file; or (ii) the proceeds are not paid to the record owner at the record address, must","page_number":146,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"284fb29e-9cbf-4c7d-86aa-f0af9233679e","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":146,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"f3d782ce-de95-43cf-942e-f46a7aaa6c68","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":146,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"7d8d65d9-5d63-4add-8abd-0b618b4b5a13","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":146,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"8347c9d5-4bd7-4a31-ad2e-3e4a970fa088","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":146,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"39038356-55fd-48d3-a32f-b0bccfe11111","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":146,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"a4df3b1b-72b8-452d-be54-89969a3adc7d","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":146,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"8ce58e41-808a-448a-af15-951ea22443dd","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":146,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"1a3ac60b-41cf-4717-a175-61560cb991fc","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":146,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"16a67c75-1c4d-4e20-be2e-0f10bbd73e29","block_type":"box","text":"will not be accepted. A notary public seal will not be acceptable. Generally, a properly signed written request with any","page_number":146,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"79dadf75-a981-4049-94df-3f1778fbf49c","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":146,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"e1341a53-e3f1-4b64-894f-d038e7600b67","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":146,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"bbf5ddf7-dc2d-4563-bdd7-21f3c19593aa","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":146,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"c7276e3e-9dc6-455c-a313-a94cac82fdc5","block_type":"box","text":"If you make a redemption request before a Fund has collected payment for the purchase of shares, the Fund","page_number":146,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"c91ac6f2-4b65-4f91-ac22-fad63a6db608","block_type":"box","text":"may delay mailing your proceeds. This delay will usually not exceed ten days. A Fund, its Administrators and the","page_number":146,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"84611a8c-13e6-4fd4-b434-f5e529407a4f","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":146,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"264fa71b-90f7-4895-a0e7-7ab5c6612aee","block_type":"box","text":"Telephone redemption requests will not be honored if: (i) the accountholder is deceased, (ii) the proceeds are to be","page_number":146,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"c417f25e-2567-4777-a097-ea336e7658b9","block_type":"box","text":"sent to someone other than the shareholder of record, (iii) a Fund does not have verified information on file, (iv) the","page_number":146,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"0755f14d-4be1-4fcf-b6ea-94ce0c8a58e8","block_type":"box","text":"request is by an individual other than the accountholder of record, (v) the account is held by joint tenants who are","page_number":146,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"9dd9eb45-a7df-4f03-b61d-ec7701e716ed","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":146,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"13e2c023-d879-4a14-8a6f-e4f3a76b2575","block_type":"box","text":"on the account, or (vii) to protect against fraud, if the caller is unable to provide the account number, the name and","page_number":146,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"2b3600a3-468f-4d34-bc0c-fdcf63c30a1c","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":146,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"f7028454-5645-4333-9641-489e2ac401c8","block_type":"box","text":"service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions that","page_number":146,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"6ca2534e-6728-4001-83c3-9ef342f12f38","block_type":"box","text":"II-115","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bb7ae5fd-2611-4e95-8281-c85c19877256","block_type":"box","text":"NM1026U-5981128-146/232","page_number":146,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ebf97b1d-024b-4dab-95ad-c502ad68956b","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":147,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"e37a7765-cdc9-4ab6-a30e-067222cca856","block_type":"box","text":"honored, signature approval from all shareholders of record on the account must be obtained. The Fund may refuse a","page_number":147,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"fdae4be9-e129-4dff-845a-d3202024d9ad","block_type":"box","text":"telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market","page_number":147,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"56b92316-05ee-41ac-85d0-950db10a6879","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":147,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"402e4a34-1813-455f-a150-23e9cf2a45fe","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day will be","page_number":147,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"19d6ec5d-55b9-4595-88d1-032e98960131","block_type":"box","text":"priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern time) on a business","page_number":147,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"e40b7273-8543-4b2b-9774-d58f792a6330","block_type":"box","text":"day, payment for redeemed Institutional Shares will normally be wired in Federal Funds on the next business day. If","page_number":147,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"da0da253-084d-4f4b-93ee-dc5bf7b83461","block_type":"box","text":"the Federal Reserve Bank of Philadelphia is not open on the business day following receipt of the redemption order,","page_number":147,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"dee879d6-83b9-454e-930b-c83578302e21","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":147,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"adbc6447-4511-4da1-a031-9c45d446d9ea","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":147,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"bb941627-2f0b-445e-998c-a8fc6e0e5ccf","block_type":"box","text":"Redeem by VRU:","page_number":147,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"fefdddb6-0857-4c73-a527-f5a0598ab28f","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":147,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"d89567df-20fd-4305-97ef-59d1d323c800","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":147,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"30fc62f1-9d0e-4ffe-bb68-a5e94b46bc1b","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":147,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"aa2e966a-a3e6-412e-8d3b-1e198e3ae736","block_type":"box","text":"Redeem by Internet:","page_number":147,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"9ddd01a6-4017-4c0d-a1b0-9eb043fac48b","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":147,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"919a1244-4683-44b3-a739-38fe03a1626b","block_type":"box","text":"BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent via check, ACH or wire to","page_number":147,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"e1194d7f-4dca-4509-9f16-73362b3a5d5e","block_type":"box","text":"the bank account of record. Payment for shares redeemed by Internet may be made for non-retirement accounts up","page_number":147,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"3190f5c7-2de2-45dc-8f4e-36fdc592fe67","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":147,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"07051dd3-28f7-4a8c-bf12-03ceb724764c","block_type":"box","text":"institutional investors.","page_number":147,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"08168dfd-d2ac-4be5-b403-638c2208e661","block_type":"box","text":"Redeem in Writing:","page_number":147,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"bf325fbc-6174-4026-a51c-cbd5effd5338","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":147,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"1b266fc8-5cee-4c05-be0e-7becb02cd590","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":147,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"110ab874-4468-4c3b-9737-4a58da8402db","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":147,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"71268b80-b922-4623-99b0-9fcafcb2262d","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":147,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"970db597-c718-40ed-b09d-ddafc8a82e03","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":147,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"f10091b6-b128-4fe7-98b1-3f7e96911197","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":147,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"4e7fac0a-a898-4950-a61f-0d8cdab6f4d4","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":147,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"8022e153-f3d0-4f7c-afd7-11480ec65fbe","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":147,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"8c1331fb-93a5-47c1-8e61-f3f25678a09d","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":147,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"66e31a0b-1dba-4f4a-813c-24225a789e00","block_type":"box","text":"or wire to the bank account of record.","page_number":147,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"a216432d-3df4-411c-87aa-9e82945c30d8","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":147,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"7ac07a27-4ee9-49fd-a3e3-1e6099b245eb","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":147,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"9d2f6f7d-10f1-4421-a758-d231e84b33f4","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":147,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"7e09718f-593f-4293-a239-66c84276de02","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":147,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"87752a3f-dd00-4299-add9-171e476fa3a6","block_type":"box","text":"of receipt of the proper notice of redemption. A Fund may delay the mailing of a redemption check until good payment","page_number":147,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"69f65290-f812-4eca-bb5e-eee9375efea4","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":147,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"923b49fb-c065-43a1-b36c-bd9aceb8ec6f","block_type":"box","text":"shares, which delay will usually not exceed 10 days. If your account is held directly with the Transfer Agent and","page_number":147,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"3216f5e6-93e7-4258-b1ae-cf39ba997a6e","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":147,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"733c3c8c-7861-4fc1-a9ec-4730b994b144","block_type":"box","text":"redeemed by the Fund.","page_number":147,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"cafad5bb-99d5-4714-bc73-95eecea73c47","block_type":"box","text":"Note on Low Balance Accounts.","page_number":147,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"029c965f-9367-468d-b9f6-af9bc1fc4ccf","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":147,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"b590f7f2-45fc-449a-b844-217d438178d0","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":147,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"07a7cfb5-05e5-432c-8b53-0c1cb3a910a0","block_type":"box","text":"Minimum”), and may redeem the shares in your account if the NAV of those shares in your account falls below $500","page_number":147,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"de4db3f1-54d0-43a9-8b82-ca35346cc0b7","block_type":"box","text":"for any reason, including market fluctuation.","page_number":147,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"7bb9a17e-ddc5-4306-8fd1-3f8dc1a37cab","block_type":"box","text":"You will be notified that the value of your account is less than the Fund Minimum before the Fund makes any","page_number":147,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"a4d00ed3-3b3b-49f8-a8a9-a78d5b50b689","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":147,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"d36cf5c3-b491-40ac-b6e5-c8e5e7276ebb","block_type":"box","text":"investment in order to bring the value of your account to at least $500 before the Fund makes an involuntary","page_number":147,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"8d0250c1-9ad4-4661-ae83-e7c8a2af2cec","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":147,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"f506da98-a11a-43ed-9adc-aec66857ce48","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":147,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"5e289f83-85eb-4288-825a-e63c8ad4296a","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":147,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"93a1e160-91e7-40a1-8bfb-59bdf0cf1821","block_type":"box","text":"Redemptions in Kind:","page_number":147,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"1562e1de-5a69-41fa-a0e1-5663929deaa0","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":147,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"6732951d-4c16-4273-9b25-288a4ca60f45","block_type":"box","text":"whole or in part by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":147,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"377621eb-b8df-42e1-8147-7a340843efc4","block_type":"box","text":"Fund’s NAV, except that each Fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1%","page_number":147,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"e7b6b3da-da9a-42e1-a35a-a0ffa767ae7f","block_type":"box","text":"of the Fund’s NAV during any 90-day period for any one shareholder. Redemptions in excess of those amounts will","page_number":147,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"a36bc300-c7f1-46c4-b60f-d9cec0a472b2","block_type":"box","text":"normally be paid in cash but may be paid wholly or partly by a distribution in kind of securities.","page_number":147,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"d79670f0-e885-4608-a673-d97e22ef7fb4","block_type":"box","text":"II-116","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d60b1185-d349-4b49-be45-92f23e3a5b54","block_type":"box","text":"NM1026U-5981128-147/232","page_number":147,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4c3baac0-c70a-4e6b-8857-cdc7070f6a61","block_type":"box","text":"The specific security or securities to be distributed will be determined by the Manager and could include a pro","page_number":148,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"9165cb92-39ed-4ec7-8f0c-df7d97e82d19","block_type":"box","text":"rata representation of the Fund’s portfolio or a non-pro-rata representation of the Fund’s portfolio depending upon","page_number":148,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"54f12c9e-c819-4d5f-b354-25b745587335","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":148,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"3c9d8480-db2a-4ac5-8f52-72050483e00e","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":148,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"b31744c3-5308-4cba-9073-f1f6879f0643","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":148,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"377a1e21-1358-4714-81d9-647e30c88d6e","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":148,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"2bba6d4d-2367-456a-9fef-633bffc741ce","block_type":"box","text":"liquidity of the securities, and the tax basis of the securities. There is no assurance that BlackRock will select to","page_number":148,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"c0405d6d-18cb-43b0-bce4-0ecd2d49b009","block_type":"box","text":"retain those securities that will perform the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":148,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"bce94cc7-095c-4956-ac4c-f694f218ba93","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of portfolio holdings","page_number":148,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"db088e53-e0c6-453a-b1bc-54e9eb47637c","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":148,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"6e3b8524-f7d7-4ad8-93aa-fc37485b1c19","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":148,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"da871e42-b946-4886-bfcc-5e18cdb32a66","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":148,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"3852b5a0-5426-4ea3-a030-6b6efedcccdc","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":148,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"285b5863-b711-4ee9-8d78-07e74ea5f0ab","block_type":"box","text":"reduce the need for the Fund to maintain short-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":148,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"2e19f7ff-492b-4dc2-8d52-460225d0efd1","block_type":"box","text":"for the Fund to sell its investments at inopportune times, and lower Fund capital gain recognition, all of which may be","page_number":148,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"6ee533be-0952-4572-8f3c-127f061a8298","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":148,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"eafc41cf-77bc-4185-8317-09788d493d46","block_type":"box","text":"redemptions in kind can or will be effected when they would be beneficial to a Fund, and it may be impractical or","page_number":148,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"9b3c5e4b-52ed-4038-ac54-f3e2771d73b2","block_type":"box","text":"impossible to effect redemptions in kind with many or substantially all of the Fund’s shareholders because of, among","page_number":148,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"e6d6a599-2de1-476f-8c9d-a9c9888253f7","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":148,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"2dfcb7f1-5686-42f9-a0b1-8c2b2af0efc8","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s portfolio, or a","page_number":148,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"c893098f-673e-44f6-8ba6-74b466ab9fa1","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":148,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"3b23bb11-6e42-4951-930f-5f77c4cf10ce","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":148,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"86b764df-7744-4769-8e6a-dfe8a30700a9","block_type":"box","text":"kind rather than in cash. A Fund’s ability to pay these redemption proceeds in kind relieves the Fund of the need of","page_number":148,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"656ebe83-cf22-412b-8727-4e1a5c6bf3c6","block_type":"box","text":"the Fund to sell the securities that are distributed in kind and incur brokerage and other transaction costs associated","page_number":148,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"634a95f7-bff6-4660-8097-fd4cc26266c5","block_type":"box","text":"with such sale, and may have the effect of reducing the amount of taxable gains the Fund would otherwise be","page_number":148,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"b99a869a-4e49-43bc-b58f-fca535c4d8d6","block_type":"box","text":"required to distribute to shareholders. A Fund’s ability to engage in such transactions is subject to, among other","page_number":148,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"702dd840-0aac-4a6e-a0a8-1abf2d95c9ae","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":148,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"68d79745-279a-48f4-8533-e66a26f52f69","block_type":"box","text":"to transact in kind, and there is no assurance that the Fund can or will effect any redemptions in kind. Financial","page_number":148,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"6d42675b-84e6-48bb-95bf-fe5b291d7056","block_type":"box","text":"institutions that participate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":148,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"0443fc5d-83a5-4ea7-a8ba-97ddff68b13d","block_type":"box","text":"doing so. The Funds’ short-term trading policy shall not apply to the transactions described in this sub-section.","page_number":148,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"63a782b2-4f1b-4d1e-85ab-a3f6265566ae","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to convert them to cash, you may pay taxes","page_number":148,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"436fad8e-082a-4a3e-bf10-65089f94538c","block_type":"box","text":"and brokerage and other transaction costs to dispose of the securities. You may also receive less for the securities","page_number":148,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"f834184a-45ce-4208-b7f8-c727e9ffbfce","block_type":"box","text":"than the price at which they were valued for purposes of effecting the redemption. There may also be a risk that","page_number":148,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"73e3e34d-96da-493b-a06e-a957c03857d2","block_type":"box","text":"redemption in kind activity could negatively impact the market value of the securities distributed in kind and, in turn,","page_number":148,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"783f256a-fadb-4c63-ad8f-084d79afb3b5","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":148,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"23a5007e-d0e0-4e98-9f18-0bebe79ec361","block_type":"box","text":"Repurchase","page_number":148,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"09237929-446a-4f05-a6c6-95efe3a693c5","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":148,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"f7ff2202-225d-4615-9ad0-dac967951990","block_type":"box","text":"priced at the NAV of the Fund next determined after receipt of the repurchase order by a Selling Dealer that has been","page_number":148,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"12304699-5b06-4d77-b6c3-6a157e5e0ef4","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":148,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"40d06213-12e1-4d24-9943-517ee500d734","block_type":"box","text":"prior to the close of business on the NYSE (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":148,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"308f913a-40b6-46cc-93b7-c5154bbb234f","block_type":"box","text":"order is placed, which includes orders received after the close of business on the previous day, the repurchase price","page_number":148,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"95455323-1957-4a0e-9c5c-73b6b81f362b","block_type":"box","text":"is the NAV determined as of the close of business on the NYSE on that day. If the orders for repurchase are not","page_number":148,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"0af1e036-64ea-4c24-832e-a18106b7d3ee","block_type":"box","text":"received by the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":148,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"96a06b56-4476-4a6f-aff1-648fa763efaa","block_type":"box","text":"next business day.","page_number":148,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"61684f88-2cd8-4f79-9321-aa335fdc1b20","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":148,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"f61616d1-cf2f-41db-9244-94990b5d0162","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":148,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"79a3efc9-adc4-49df-af4b-8c1f9af00ec9","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":148,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"61b93f1c-7506-4dcd-879b-e8ee9446cebb","block_type":"box","text":"impose a transaction charge for transmitting the notice of repurchase to the Fund. Each Fund reserves the right to","page_number":148,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"0ffd1430-dbfd-444e-9e7e-2caca1ab73e9","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":148,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"90cbaa8e-dd0e-468e-8476-9bb369a3211f","block_type":"box","text":"redeem shares as set out above.","page_number":148,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"9fced340-d239-47ed-abfc-8d50e0b93c85","block_type":"box","text":"II-117","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7d14082b-3278-46d4-9838-b1a7abb62f7e","block_type":"box","text":"NM1026U-5981128-148/232","page_number":148,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bbeb0186-3845-4b3a-a111-ab5e1960c8f4","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":149,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"5ae4649f-5ff3-4df0-bc5d-608fc73b1811","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":149,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"dbb1763e-db2c-411e-a96f-05158dc29d99","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":149,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"c7957a48-8d63-43f4-9fa0-6aef09e3127c","block_type":"box","text":"Shares of the same or another BlackRock fund without paying a front-end sales charge. This right may be exercised","page_number":149,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"afd26f84-b6f1-4d76-bdba-d8502dd2fc41","block_type":"box","text":"within 90 days of the redemption, provided that the Investor A or Investor P Shares, as applicable, of that fund is","page_number":149,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"5a2d2ca7-1177-429a-8ad7-023d6bb41798","block_type":"box","text":"currently open to new investors or the shareholder has a current account in that closed fund. Shares will be","page_number":149,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"fc11fd81-a1be-44c7-b914-c8bd24ef1649","block_type":"box","text":"purchased at the NAV calculated at the close of trading on the day the request is received in good order. To exercise","page_number":149,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"9d235032-9b64-4151-b19c-8382cad5c657","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":149,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"0f561693-9330-4d46-8d49-f62b616f0621","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":149,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"8cfef4cc-cc83-4916-96e7-375937a6790e","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":149,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"b7895702-6ff6-4a4c-a726-c20d87635e00","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":149,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"e374f422-8739-41c5-a726-c24e8a43b6bc","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":149,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"d0fae55b-2906-4e43-a127-ae2e4f8ca887","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":149,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"d0e77830-d790-4718-98e8-b57dc3342e73","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":149,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"6ee9afb1-3b9a-4fc8-a2ec-b5ba0836c80d","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":149,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"8dffe284-6b6d-409f-9660-bd3fa055cc54","block_type":"box","text":"Investment Account","page_number":149,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"78f40dd8-68aa-4e3e-a1d0-9febd6d23666","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":149,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"1d33d172-94a0-4b35-a35b-7cb12d6df15e","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":149,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"1e97cc95-8734-4a01-b6c3-91210ceaf8c1","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":149,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"e269d2e7-095b-4264-b4a6-8db0ddbb5f55","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":149,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"dbb09898-940a-4fcd-bc3a-769ab923207d","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":149,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"e2511009-74f9-48ed-878e-dc2b1615d93c","block_type":"box","text":"the Transfer Agent you may make additions to it at any time by mailing a check directly to the Transfer Agent. Each","page_number":149,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"8c50d42b-488e-4fd2-a6ae-6620853436cc","block_type":"box","text":"Fund limits purchases by personal check to $500,000 per trade. You may also maintain an account through a","page_number":149,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"7c4a0032-b325-45b1-b391-5b2eac7b1da1","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":149,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"4359bd69-b679-472f-ba8a-d6e8f2ce7d45","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":149,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"6ae776ef-8255-4afe-b7df-2d0ef1be9e08","block_type":"box","text":"automatically at the Transfer Agent.","page_number":149,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"5390cae0-b872-469b-9608-1a367d9a4506","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":149,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"31041404-7067-4712-994d-ce01358dd3a3","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":149,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"964ea2ac-222c-46c8-b228-559f1d4da810","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":149,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"a911eca8-6512-4049-b70d-63eee6e5878f","block_type":"box","text":"coordinated by the new firm. If you wish to transfer your shares to a securities dealer or other financial intermediary","page_number":149,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"8fa717e4-16d6-4d9f-8bae-ecb7c69aeae2","block_type":"box","text":"that has not entered into an agreement with the Distributor, you must either (i) redeem your shares, paying any","page_number":149,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"702b5c28-3fca-4bde-b6d1-338fc6709f39","block_type":"box","text":"applicable CDSC or (ii) continue to maintain an Investment Account at the Transfer Agent for those shares. You also","page_number":149,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"141b9d8a-e3d6-4769-acb3-6c5f6359b418","block_type":"box","text":"may request that the new securities dealer or other financial intermediary maintain the shares in an account at the","page_number":149,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"1f06af3a-496f-4df0-be2e-02dd58281ce0","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":149,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"8c653651-8cad-4dd2-b5ba-8c8a28dbc427","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":149,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"b682eacb-70c8-4253-9dc6-a3e3fc2d2ef1","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":149,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"398778d2-b246-47bb-902e-245734678597","block_type":"box","text":"not be issued physically. Shares are maintained by each Fund on its register maintained by the Transfer Agent and","page_number":149,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"1c398d84-12ce-4f09-a2de-fd34f4d98086","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":149,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"bf42a88e-942e-42dc-a76c-d78e6a4d30ae","block_type":"box","text":"issued.","page_number":149,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"1a469c1d-276d-447e-989b-ee4b5539354d","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":149,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"9852e886-736f-4e57-a2ab-a47668182aba","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":149,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"37cf2a77-0de7-4f66-ac04-c5478e107562","block_type":"box","text":"that if the new firm will not take delivery of shares of the Fund, you must either redeem the shares (paying any","page_number":149,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"f4fa55a7-f3ff-40d6-9447-0c19a4b1bb41","block_type":"box","text":"applicable CDSC) so that the cash proceeds can be transferred to the account at the new firm, or you must continue","page_number":149,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"f8e4d534-f9b8-4bf8-9bda-95d93a83086d","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":149,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"7a062234-3920-46bd-ac8d-e3eb8b015f99","block_type":"box","text":"Exchange Privilege","page_number":149,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"3656b334-e61c-4156-85e9-26c149cfb2b8","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G Shares of","page_number":149,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"c49d18b3-8005-4ac0-a4c2-5524d93829c9","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":149,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"66856b20-2114-4162-8dce-adcfe7a680a2","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":149,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"31b365f8-2bc0-4403-938e-1568839b1dca","block_type":"box","text":"$1,000 if you already have an account in the Fund into which you are exchanging. You may only exchange into a","page_number":149,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"563b38f0-ef03-4313-adea-77c03e11254c","block_type":"box","text":"share class and a Fund that are open to new investors or in which you have a current account if the class or fund is","page_number":149,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"8df11170-0f76-4398-8a24-5999908ec7cc","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":149,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"9604584f-a7ff-4d80-ad47-ea6037d8613c","block_type":"box","text":"II-118","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"330a3a1e-24cf-4db4-a09f-f8f837eecac9","block_type":"box","text":"NM1026U-5981128-149/232","page_number":149,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b9aec7ad-b72a-4e8a-a1ca-6f1b575526b8","block_type":"box","text":"into which you wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":150,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"0c54bf4e-5e14-4668-bcd4-c65160955222","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":150,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"35ab6f53-d296-4210-a60d-1f07d0da92d7","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":150,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"9e663e1f-4ff3-4f34-aa5d-71e47441de63","block_type":"box","text":"Institutional Shares","page_number":150,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"a63120cb-9cc6-4352-a0d7-2d9982c680c0","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":150,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"d6d4927d-d4f8-45e9-ad72-4d207daee983","block_type":"box","text":"Investor A Shares of other Funds to the extent such shares are offered by your financial intermediary. Investor P","page_number":150,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"b6380103-9b51-49df-b9fb-4e5f1a6c2313","block_type":"box","text":"Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are offered by your financial","page_number":150,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"7e01248e-8b48-4041-b899-642cc3a4d164","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":150,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"ac8ddfd4-c696-4147-b145-d343b640e9ab","block_type":"box","text":"for Class G Shares of other Funds.","page_number":150,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"5c2d7d8a-99d5-4c33-b734-7dc25df4da2c","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":150,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"bc74a52a-7a32-4110-a1d0-9d8d8a1e3cdc","block_type":"box","text":"market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of Investor A or Investor A1","page_number":150,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"5d0b153e-2341-4720-ab63-282d9a49e940","block_type":"box","text":"Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares of a second fund, or for shares of a","page_number":150,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"2e79974e-0e88-403c-a6da-b86d7adceb22","block_type":"box","text":"money market fund (“new Investor A Shares”) are effected on the basis of relative NAV per share. Exchanges of","page_number":150,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"fa01b4a0-ef09-413b-bbf8-d89f6f703dc1","block_type":"box","text":"Investor P Shares outstanding for Investor P Shares of a second fund are effected on the basis of relative NAV per","page_number":150,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"4e3d4d1f-46dc-484b-9f5f-a55308bf167c","block_type":"box","text":"share. Exchanges of Class K Shares outstanding for Class K Shares of a second fund, or for shares of a money","page_number":150,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"4ebfa1a4-94c9-4d96-ae64-b8fd3b52ae5b","block_type":"box","text":"market fund are effected on the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class","page_number":150,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"4ca4ba89-9019-4607-a2e9-5d7e188f51ca","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":150,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"e63860b1-f84b-4eb8-af13-546bec7893b9","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":150,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"6639bcb2-1af2-4023-ba21-9c8dd2742524","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":150,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"d64b82ac-29bc-42bf-89ad-6875ce2059f2","block_type":"box","text":"Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new Investor C Shares”) or","page_number":150,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"242ec694-6137-47d0-9585-26f1206136bc","block_type":"box","text":"for shares of a money market fund (“new money market fund Shares”) on the basis of relative NAV per share, without","page_number":150,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"db1d8ef8-25ee-4d47-b6f7-48704a16bcd7","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":150,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"fe116692-f5a5-4c7e-a0fc-ce85215a7f11","block_type":"box","text":"upon redemption of new Investor C Shares or new money market fund Shares, as applicable, the time you held both","page_number":150,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"b5af53ca-487c-46b5-8244-1d2f842e1f61","block_type":"box","text":"the exchanged Investor C Shares and the new Investor C Shares or new money market fund Shares will count","page_number":150,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"21554adb-0f63-4b80-99d0-480537df71df","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":150,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"870b6d73-9b9d-402f-80a3-8d3b944cfe4a","block_type":"box","text":"Exchanges of Service Shares.","page_number":150,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"df8eb64c-b9bb-4902-8e46-c2aea79c8222","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":150,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"bcd4fa74-28f3-43b8-90c4-fc06d4f28095","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":150,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"02581aa6-e97d-4263-9e20-cbde7c25cae9","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":150,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"2cd0d6c1-2ab0-456d-bc10-c8b18fcc3651","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":150,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"d0cdf244-c150-4c4c-a7a4-674a08ca938b","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":150,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"f4203b25-21de-4de9-b3d6-6c62be6a9324","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":150,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"bf838cfa-0177-4330-935f-349d0c027235","block_type":"box","text":"classes of shares: exchanges of Investor A, Investor A1 and Institutional Shares of a Fund will receive Investor A","page_number":150,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"12d7d958-e175-4d03-8707-1fdf1e7aa5b8","block_type":"box","text":"Shares of Summit and exchanges of Investor C Shares of a Fund will receive Investor C Shares of Summit. You may","page_number":150,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"dcb56b7f-7361-46a1-b84a-4ee3d7772a5b","block_type":"box","text":"exchange Investor A Shares of Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to","page_number":150,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"28fbb8a1-e100-4351-8e36-53224cc026d4","block_type":"box","text":"hold such shares. You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":150,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"51079930-cd99-472e-a968-523ad3c83006","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count toward","page_number":150,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"48030bf4-c784-492d-8b73-285cdb0adae9","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":150,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"976ecaf5-2689-4d4d-aab6-a63aa9a7e861","block_type":"box","text":"subject to a distribution fee at an annual rate of 0.75% of average daily net assets of such Investor C Shares.","page_number":150,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"318f9a18-ebe6-4346-af42-c2f3f1fd2496","block_type":"box","text":"Exchanges of Investor C Shares of a money market fund other than Summit for Investor C Shares of a Fund will be","page_number":150,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"efd2be4c-74b9-48dc-8f9a-2191743a9c52","block_type":"box","text":"exercised at NAV. However, a CDSC may be charged in connection with any subsequent redemption of the Investor C","page_number":150,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"62300fd6-0a46-4bc5-a1e7-e9f529f6c2aa","block_type":"box","text":"Shares of the Fund received in the exchange. In determining the holding period for calculating the CDSC payable on","page_number":150,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"5e4686a8-55ff-4eeb-aa0c-e5f32678f0c3","block_type":"box","text":"redemption of Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":150,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"ca030c66-b494-4c9c-a7a1-203efe6b9c64","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired through","page_number":150,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"e419ce5f-1d24-4fd8-a451-b3f48d43a544","block_type":"box","text":"exchange.","page_number":150,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"4822c163-caaa-4a30-98c2-f6fe5062a13c","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":150,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"ddd398e4-46b8-4f80-ba8e-bbab3c5e3cca","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":150,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"7bf46cd2-0b93-4d6e-b267-d436d1072d5e","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":150,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"54a018e7-fe88-43fc-81f5-e348bfa25539","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":150,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"2530b851-5099-40d2-9ed3-87ae46bdf946","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":150,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"71b3972b-86db-4b3d-9686-1cc32cc583e2","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":150,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"50ae7760-e78a-42ac-bfc6-b53c69f86933","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":150,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"dbd76510-f1d6-431f-98f1-3424322befd2","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":150,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"83278d9e-5f8f-4921-803c-56df085f64e9","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":150,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"1c23faf5-1a89-4609-b113-3588eefaf81d","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":150,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"0c0337e3-69a0-4ce4-a33a-274fa86e5433","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/o the","page_number":150,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"b0cf6288-5b1f-4bc2-b618-9028e66cd246","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":150,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"a5aeebad-0670-4a69-91d3-484b4953bb4b","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":150,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"e90206e9-eb1b-4808-b4dc-2fa464f3d950","block_type":"box","text":"Application that they do not wish to use this privilege. To add this feature to an existing account that previously did","page_number":150,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"8d47791e-0227-413d-abf1-bd45547ab317","block_type":"box","text":"not provide this option, a Telephone Exchange Authorization Form must be filed with the Transfer Agent. This form is","page_number":150,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"10156a5b-6ec8-4040-ad3d-1f8a9394e65f","block_type":"box","text":"II-119","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cc67e6f9-a43d-4548-a192-091fb86b1fd9","block_type":"box","text":"NM1026U-5981128-150/232","page_number":150,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a8d67df3-2343-46c2-8c12-9b94ba133127","block_type":"box","text":"available from the Transfer Agent. Once this election has been made, the shareholder may simply contact the Fund by","page_number":151,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"1009851d-4060-47bd-8f34-b01915f28c35","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":151,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"2ccce6ad-39a5-43f8-8f54-bd9a32b7775b","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":151,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"51d27799-455d-4b8d-990d-d9404220d0b8","block_type":"box","text":"Transfer Agent in writing.","page_number":151,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"90cc62f4-5ebc-4a05-816d-a085397455d1","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":151,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"155dc026-ed5d-4e38-ad96-187beceec1e4","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":151,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"e5b36083-9596-4f84-942f-38902c33284c","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":151,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"ba88fcaa-fcae-4075-8d5d-41f15b0e5758","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":151,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"333c1617-c9bc-4810-acb1-b33fb7a6c9fb","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":151,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"8acef474-c951-4224-a5aa-50108709118a","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":151,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"dcd85cc3-529b-4b34-8fe2-15619a8cd602","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":151,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"181f5a57-3a0f-4004-84ce-894bf97e55c0","block_type":"box","text":"must be legally available for sale in the state of the investor’s residence. For U.S. federal income tax purposes, a","page_number":151,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"19ddb42d-359f-4f19-bc50-6ae4bb6a84c8","block_type":"box","text":"share exchange is a taxable event and, accordingly, a capital gain or loss may be realized. Before making an","page_number":151,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"d8ab262a-8fbf-4e7a-a5dc-ffb420ff4067","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":151,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"e8435ce0-5803-425d-acb6-2d1b6dd1eab0","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":151,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"3c08a656-8a84-4d7d-b4cb-eb94db5e0d9e","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":151,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"521b9939-40b6-4a4d-b1b0-884cee904889","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice will be","page_number":151,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"27cab328-4037-4ecd-9039-24d72a410da2","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":151,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"e12da0aa-43de-4f3b-afeb-7ff311424aac","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":151,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"5d50e5f0-427c-4f45-9979-ca2ea31198c2","block_type":"box","text":"amount or frequency, and to other restrictions that may be established from time to time to ensure that exchanges","page_number":151,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"3bec60b0-28df-4d7c-9800-922f2099d959","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":151,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"b033f000-e12e-489b-9f25-cc1b3d5dd7c1","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":151,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"62cef869-1481-4847-a838-e27473bcafbc","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":151,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"a278c0ba-7c42-4e03-954b-bf54e7325c23","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":151,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"c34257e5-3056-49d8-a5c6-24abd42e6afe","block_type":"box","text":"such procedures. By use of the exchange privilege, the investor authorizes the Fund’s Transfer Agent to act on","page_number":151,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"fcf69118-f23a-43f1-a243-7df641b6ef63","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":151,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"52727520-5153-4f6f-b3f4-a936038afffb","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":151,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"f9ee3ed5-8444-4141-a09b-19d322fbf053","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":151,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"3a1e3680-82c9-41fe-988b-f53eb94da231","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":151,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"f3609a97-c697-4b60-9c8d-d2f13c63a036","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":151,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"88082955-e923-4f93-a2f5-d088f1e3216f","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":151,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"81b783f5-dc04-45ad-a293-7a50b3922687","block_type":"box","text":"such offering from time to time. The exchange privilege is available only to U.S. shareholders in states where the","page_number":151,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"ad93e0d1-ba3a-4c2b-b777-c34d30910e72","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":151,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"3fd876e0-ebf6-48d3-b0ad-30716a77f850","block_type":"box","text":"may be distributed by the Distributor.","page_number":151,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"df4f87d0-8cab-49ae-967e-9176b123cee0","block_type":"box","text":"Participation in Fee-Based Programs","page_number":151,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"741c63cd-ff8c-45b4-b961-8dc5a71bd48c","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":151,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"994bd4a6-6a43-48e6-89bf-4ddd6ec01da5","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":151,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"4964fbdd-a5ed-4870-9772-af16a70cfe80","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":151,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"26df73de-e57d-4583-bd32-17c3ce7cf26f","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":151,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"dfd9817f-4153-4f03-9711-985feb4b391e","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":151,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"e550e7a8-2991-4b63-a1a1-453ff02d00ec","block_type":"box","text":"if you choose to leave the fee-based program, you may have to redeem your shares held through the program and","page_number":151,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"3e8719bc-2622-4def-af09-5d2bd29bf172","block_type":"box","text":"purchase shares of another class, which may be subject to distribution and service fees. This may be a taxable event","page_number":151,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"d6b8114d-3c7b-4c9f-935b-88dd03f7ecd5","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":151,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"b79ae6b3-8f2d-4c98-bc10-52eef39b5298","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":151,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"39b89f3d-3cfd-4e90-9260-5cb39d7210b0","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can be held in","page_number":151,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"30c77774-6305-4165-b743-9b12fb8c02b1","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":151,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"26402c0e-9dd1-4122-86e7-ba53e3fc2b7f","block_type":"box","text":"class was held in the program can be held after termination. Shares that have been held for less than specified","page_number":151,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"7d928af2-4b5f-4595-b788-1cb516d10beb","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":151,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"af836a0d-e7c2-4b01-973f-63538a2eca7e","block_type":"box","text":"Institutional Shares in the program may be eligible to purchase additional shares of the respective share class of a","page_number":151,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"c37d09eb-9896-470b-a750-c0eeda6dc497","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":151,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"ba1ae7b2-434a-4ff6-b8f7-7fa2b1867cfb","block_type":"box","text":"Institutional Shares are permitted only if you have an existing position at the time of purchase or are otherwise","page_number":151,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"6d19d540-cc86-4ee0-9b0a-a434c3b6ef3c","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":151,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"26ea99ff-94ce-4311-ac4b-81d248e45caf","block_type":"box","text":"II-120","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b3633011-7cdf-4605-81d9-f8cf8f765529","block_type":"box","text":"NM1026U-5981128-151/232","page_number":151,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"40ba2333-cce4-4c13-8b6c-ddfec5c7081b","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":152,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"0eb27348-579f-4852-a473-56d1baf34e77","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":152,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"d0dded1d-3e37-4c8b-8ca5-22ba30cec081","block_type":"box","text":"intermediary’s policies and procedures, exchange the share class held in the program for another share class of the","page_number":152,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"f79fd311-bcc4-4404-a136-9145aeaa8f2f","block_type":"box","text":"same fund, provided that the exchanged shares are not subject to a sales charge and the shareholder meets the","page_number":152,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"55434433-649b-493f-b81a-76968d9c8353","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":152,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"35aaabcd-18cc-4c90-933e-9f0d8240fee2","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":152,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"f07c193e-d2c1-4740-8020-193863652886","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":152,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"75891a3e-5fe8-4f7f-a4f3-4db7a4c60533","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":152,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"1f56d9cd-8a03-4f97-bea6-c33901aa027c","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":152,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"ff3dfd4e-d403-4f3d-83c2-f2aeed4bee6f","block_type":"box","text":"information.","page_number":152,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"07412406-075f-4609-9958-067d12d2abd1","block_type":"box","text":"Retirement and Education Savings Plans","page_number":152,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"170b0cec-357b-4374-ae21-1375a7e36f71","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":152,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"52adf940-e992-4be1-8ad8-0cd4ab52def9","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":152,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"1772afae-378f-4d52-acd4-ded389956247","block_type":"box","text":"the other mutual funds sponsored by the Manager or its affiliates as well as in other securities. There may be fees","page_number":152,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"d8a991f0-3761-42de-b205-b96dcb445a12","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":152,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"2aa09fc2-68ea-446b-ade5-43126e01464d","block_type":"box","text":"your financial intermediary.","page_number":152,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"8d4311b4-1f09-4aff-a1af-6e4dabe6d1e9","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until distributed","page_number":152,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"04a83624-dea9-4755-9a42-811875a111c3","block_type":"box","text":"from the plans and, in the case of Roth IRAs and education savings plans, may be exempt from taxation when","page_number":152,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"06f7c786-6f68-4d73-b63f-cbf264e3b6a4","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":152,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"a3b5723f-1596-4737-8f9e-080328e63c25","block_type":"box","text":"specific tax laws relating to the plan and should consult their attorneys or tax advisors with respect to the","page_number":152,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"98729c64-7a04-4f80-83dd-3fb5f2495168","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":152,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"74b9b3fb-9a2a-471a-afa3-ac8dcd332f1a","block_type":"box","text":"Automatic Investment Plans","page_number":152,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"1737c8e8-38d7-4757-9358-d8fee4df87a0","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":152,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"a72a86ef-0698-4fdc-8c08-0e1ce27903aa","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":152,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"85026cfb-40f1-4a44-bd34-2fffaef56b52","block_type":"box","text":"®","page_number":152,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"59aba4ea-2b4c-45b3-8f9c-f0f269ec2b9b","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":152,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"0b711c1c-1590-4c86-9000-3ef0e7978a7c","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":152,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"0a7243d5-512c-4ca0-a34c-1efa16984687","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":152,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"eb7ab1c8-5f99-4c5b-a592-18e3de26b15e","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":152,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"f625efb6-613f-47ac-b5a3-cb1ed694ce36","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":152,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"08fd08bd-4dc4-4a9c-8bad-7fb21217a008","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if any, to","page_number":152,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"218a89d3-7e72-427a-938d-77e6e38f6c07","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":152,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"191b483e-aaa2-431f-98b8-9b4a92222af8","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":152,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"a8408b86-bb6c-4b52-a631-9170d3dc2c72","block_type":"box","text":"Fund’s prospectus. Such election, or any revocation thereof, must be made in writing to the Transfer Agent, and will","page_number":152,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"2c4098b2-0e65-422c-a0d7-21b7aab36679","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":152,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"110894d8-4fcd-439d-987a-ae559aaeb563","block_type":"box","text":"Systematic Withdrawal Plans","page_number":152,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"cf7b7a2b-9b36-461c-ad4d-218d65ab317b","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":152,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"fddefa48-229e-43d3-923f-9cfa93ec0857","block_type":"box","text":"Upon commencement of the SWP, the account must have a current value of $10,000 or more in a Fund.","page_number":152,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"75aea88f-4089-47a5-b0e5-904001a4aed9","block_type":"box","text":"Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day","page_number":152,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"79fe2a38-1130-4f59-90e4-bf5e0346dd0e","block_type":"box","text":"for the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such","page_number":152,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"e5047970-7bc9-449a-8b38-ee545bb97512","block_type":"box","text":"day is not a business day, on the prior business day and are paid promptly thereafter. An investor may utilize the SWP","page_number":152,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"2b50d5ba-6fd6-46b5-a021-f07ec9a50662","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":152,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"6a341157-54f5-4ca0-90d3-db7ed31b5908","block_type":"box","text":"www.blackrock.com.","page_number":152,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"6f264d57-68a3-4a35-ac68-de12a31939c3","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":152,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"bf0d2e76-c928-4a80-9f31-bcbc0d5b8c77","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":152,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"34949167-ea24-4d16-85bf-c24e7b88e6c7","block_type":"box","text":"Shareholders may change or cancel the SWP at any time, upon written notice to the Fund, or by calling the Fund at","page_number":152,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"8051b45d-ca8e-43da-b13f-fad721fead41","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":152,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"58cb556b-1c33-4169-b886-2db42cd84aa4","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":152,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"2d7a2444-49d9-43b0-a40c-3342e977140b","block_type":"box","text":"CDSC will be assessed on redemptions of Investor C Shares made through the SWP that do not exceed 12% of the","page_number":152,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"c2995b49-cbc2-4cd1-99cb-4d61964e8ca0","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":152,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"7a561d04-b21e-464d-b5c8-95243fbfc7b2","block_type":"box","text":"II-121","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"26112e64-7e94-4a2e-a0f6-9b502e32f08c","block_type":"box","text":"NM1026U-5981128-152/232","page_number":152,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ccbda671-4058-4a1d-8350-b9477861f528","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":153,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"112067bc-baa9-4541-9aa4-0ad59e916fa5","block_type":"box","text":"annually), respectively, of an account’s NAV on the redemption date. SWP redemptions of Investor C Shares in excess","page_number":153,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"9d217050-ac4a-4899-9b2b-b7198827ce31","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":153,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"7e7b710d-41b3-4e32-b358-ca399f9d09fe","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":153,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"a0a15f9c-e931-41db-aa1a-f9208ac40de7","block_type":"box","text":"to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,” as applicable, in the Fund’s","page_number":153,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"8418d80e-4497-43b7-a8af-c6cec1a63708","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":153,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"7a7be854-86f2-435b-801c-1b97e0eaeda6","block_type":"box","text":"Dividend Allocation Plan","page_number":153,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"44c40aab-ea16-4d28-8831-24c628443318","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":153,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"9cb4b609-be39-4c7d-aafc-45ce9a0cf08f","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":153,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"16fd88c0-46f2-4b02-9a99-5998453bdd0e","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":153,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"63f999f8-18a8-41c3-bf35-28c929493f1b","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":153,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"ed095031-4aef-4cb8-9e18-e37bfe438e9d","block_type":"box","text":"PRICING OF SHARES","page_number":153,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"5f72901b-59ce-4e9d-8731-2a59224fd080","block_type":"box","text":"Determination of Net Asset Value","page_number":153,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"4e51284b-8bea-4d62-8527-df379e8958b8","block_type":"box","text":"Valuation of Shares.","page_number":153,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"161cf5f9-270c-466f-81ec-e7b409aff565","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":153,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"8c451f92-a4dc-4fa9-b7b2-8dafca06ff23","block_type":"box","text":"regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day the NYSE is open.","page_number":153,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"d21f085f-1142-46ad-8aa8-72b01ce795d9","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":153,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"dc7b3344-0a59-4d04-907b-1387911c1b36","block_type":"box","text":"Equity Investments.","page_number":153,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"adaef4cc-acbb-41c0-9752-e7d5a98740ea","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":153,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"7bdc0c31-1f54-4621-af78-1b4af4b3435a","block_type":"box","text":"e.g.","page_number":153,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"9cca379a-2263-4220-b2a2-4b8c4b4cec9c","block_type":"box","text":", NYSE), on separate","page_number":153,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"c7ec78e1-9b22-43dc-bcb6-9c71c13fba56","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":153,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"1bdb6d48-8f48-4d90-a6cb-18b894bb92d4","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":153,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"1cb17342-9d92-4b23-8075-c84e246aa2e9","block_type":"box","text":"generally at the Exchange closing price or if an Exchange closing price is not available, the last traded price on that","page_number":153,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"1ce17b1a-88be-4813-9942-df4e8e748f71","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":153,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"4518578a-5631-4052-96ca-16d39e80b0f0","block_type":"box","text":"other means of determining current market value may be used. If an equity security is traded on more than one","page_number":153,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"19e545c5-c2a1-42d6-8cb9-c43dc710d658","block_type":"box","text":"Exchange, the current market value of the security where it is primarily traded generally will be used. In the event that","page_number":153,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"deb057dd-eea6-40c7-95ba-858dd1ffe875","block_type":"box","text":"there are no sales involving an equity security held by a Fund on a day on which the Fund values such security, the","page_number":153,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"1c258a3c-1d9c-4bc1-a7f4-39ec4eaae5f9","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":153,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"c6ddc1bb-c6c2-46d9-a947-e955033eb7b3","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":153,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"2727e33d-eb75-4e87-8e5d-11f37b8e109c","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":153,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"0037433f-9ce9-4b57-88e0-7c41f561ad4b","block_type":"box","text":"values such security, the prior day’s price will be used, unless BlackRock determines that such prior day’s price no","page_number":153,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"e1565f88-fa79-417b-83dc-8989e064662b","block_type":"box","text":"longer reflects the fair value of the security, in which case such asset would be treated as a Fair Value Asset (as","page_number":153,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"68387412-04b2-4f28-a54e-2e16a56031bf","block_type":"box","text":"defined below).","page_number":153,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"126bf0a9-9242-42a2-9970-1835be1c28cd","block_type":"box","text":"Fixed-Income Investments.","page_number":153,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"b6a6ce5a-25b4-4fdf-ab6e-42518a9036e7","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":153,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"dfb95390-3092-41d7-8b2e-b558ea4f9a4d","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":153,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"d31a1df3-f499-4009-bf7f-9b33712aae6a","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":153,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"0b248c20-beb1-426f-806b-81fe90083b77","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":153,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"01fc3367-d3dc-4b30-a78e-dc57487e20f8","block_type":"box","text":"e.g.","page_number":153,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"dc02726e-2e86-403d-956d-2da0c947d51a","block_type":"box","text":", recent representative bids and offers), credit","page_number":153,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"f046cc58-cb1d-4b63-b209-78f28617a017","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":153,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"ef72b1e6-32d5-4bfb-be86-b78ee762c9f0","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":153,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"6a991bc9-c214-486e-b6b9-c80d18ca8f4d","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":153,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"0e74d1b9-01e0-4094-bb52-6b95c5b8c403","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":153,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"bdd46823-baa7-4b55-b98e-4d86e1230dd8","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":153,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"cc10b1a5-bea5-48f0-b1d6-fcf09f4e08fb","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":153,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"cc293858-78a1-4e0b-9444-07ef60149587","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":153,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"dd860b9f-2c1f-41a1-bcf8-63c781167a50","block_type":"box","text":"respect to debt obligations with 60 days or less remaining to maturity unless such method does not represent fair","page_number":153,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"1df144b5-a355-49b6-9c5f-f1d99180e514","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":153,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"de4b1783-ac66-4270-ab2a-1ba47266c351","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":153,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"c56dce54-0a48-4f80-8b93-e7ebf2dc7827","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":153,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"fa1f1253-52b8-4bf8-9a40-e8326fc75465","block_type":"box","text":"attributes of the tranche.","page_number":153,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"7134d2e0-2b50-47cf-aae5-eff24156fc39","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":153,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"8bff23e4-f823-4122-9845-117e72542feb","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":153,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"4738c277-b566-4337-b2e4-2e655babf3a0","block_type":"box","text":"index options or those that are customized) for which market quotations are readily available are valued at the mean","page_number":153,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"2301ec30-3e8c-4639-b214-63b78fe173e0","block_type":"box","text":"of the last bid and ask prices as quoted on the Exchange or the board of trade on which such options are traded. In","page_number":153,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"9ca3a233-292a-4ab1-bb05-94ebed70ceef","block_type":"box","text":"the event that there is no mean price available for an exchange-traded equity option held by a Fund on a day on which","page_number":153,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"91cbcd29-d018-4549-8a8b-272956bce0ae","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":153,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"08c8b5ab-be09-447b-983c-5d820f08f905","block_type":"box","text":"the value of such option. If no bid or ask price is available on a day on which a Fund values such option, the prior","page_number":153,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"0b002816-4599-44ec-8e5c-6cf149a36fd9","block_type":"box","text":"II-122","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0b12fc48-ab05-4a32-b691-85bfc14f57f6","block_type":"box","text":"NM1026U-5981128-153/232","page_number":153,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"146a4299-64f9-45bf-b548-ca72772bec57","block_type":"box","text":"day’s price will be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":154,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"77bab660-5ef5-44e5-845e-30efd89b81b8","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange-traded equity","page_number":154,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"31d8a73e-0459-41f0-b911-730e4539fbb7","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":154,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"d07a910b-c32d-40a7-a5f0-fad18fe3612b","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":154,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"a887f102-6533-4e39-90ab-5da911af790b","block_type":"box","text":"on exchanges, are valued at their last sale price or settle price as of the close of such exchanges. Swap agreements","page_number":154,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"06b1ed36-0f16-4584-a6c7-7c0f80e50a6f","block_type":"box","text":"and other derivatives are generally valued daily based upon quotations from market makers or by a pricing service in","page_number":154,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"5ea5882c-7508-4d38-bc53-c2eeb4d2806d","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":154,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"04e6c2c4-ba87-4b69-9081-904896d6aa2f","block_type":"box","text":"Underlying Funds.","page_number":154,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"1d96891e-efc6-443c-b962-187c603f7c95","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":154,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"68c79093-bb8c-4e3b-8f6d-d5157012a316","block_type":"box","text":"market funds) are valued at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued","page_number":154,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"001c0e79-9b44-4999-8b77-f5a98ee53ab8","block_type":"box","text":"at their most recent closing price.","page_number":154,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"632f31bf-b443-46e0-8faf-b26960897c74","block_type":"box","text":"General Valuation Information.","page_number":154,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"d3993e6e-1db9-4286-b342-820818a13664","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":154,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"b727d555-623a-4731-80ca-b38598c3c220","block_type":"box","text":"market makers to value each Fund’s securities and other assets and liabilities are based on information available at","page_number":154,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"ef0b9372-c594-4240-a63f-7d84fdaf39b0","block_type":"box","text":"the time the Fund values its assets and liabilities. In the event that a pricing service quotation is revised or updated","page_number":154,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"e03be278-e1c1-4c42-ac39-25fb1474b661","block_type":"box","text":"subsequent to the day on which the Fund valued such security, the revised pricing service quotation generally will be","page_number":154,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"61691a58-75c5-4f7a-a36a-228db7c1f009","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":154,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"ecfd1b21-fd4e-47f4-8720-7206885cdabf","block_type":"box","text":"the revision.","page_number":154,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"e5ba994f-44ab-4f2d-8317-d9d6b9f6e5bd","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":154,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"70b9cf76-1ccd-4e44-9c2a-e1232f023066","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":154,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"7e826044-0504-4da7-8244-155285a8144b","block_type":"box","text":"matrices, yield curves and other specified inputs and assumptions. This may result in the assets being valued at a","page_number":154,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"32024585-533d-4ac5-be5d-96a6f2ebc672","block_type":"box","text":"price different from the price that would have been determined had the evaluated pricing method not been used. The","page_number":154,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"64aa03c6-0ccf-4248-89e2-a4f35ea3b798","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":154,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"51ec1773-a023-4846-a9ca-735fc7727a3f","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":154,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"4309e893-aee6-447b-9810-6eddbee02429","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an","page_number":154,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"9bf23bb6-ca08-4633-b431-968dd8eb6bf4","block_type":"box","text":"investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss","page_number":154,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"01007be7-6c29-4ead-bafe-47d597507194","block_type":"box","text":"or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investment may also be","page_number":154,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"2cd24255-499f-40d7-a522-a1b3652dafe4","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":154,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"9c11a9c4-d122-41d1-9ed6-3eca261e91d6","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security which is","page_number":154,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"50ce757c-93a4-4477-8a6f-2345a7ad8698","block_type":"box","text":"deemed not to be representative of the fair market value of such security, the security will be valued by, under the","page_number":154,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"ccfaeb21-3a5a-4951-8878-e870924bac26","block_type":"box","text":"direction of or in accordance with a method approved by BlackRock, the Fund’s valuation designee, as reflecting fair","page_number":154,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"5cc745fc-0a3d-47ad-9133-761c8489f534","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":154,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"001553f2-b35d-4c38-905e-06f45199e242","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":154,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"89fafbd0-10e7-44bf-bd41-80c13e3093a9","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":154,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"ca39bfb7-b13b-4a3b-85eb-ff6763752ad4","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":154,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"2e019477-db73-4033-ae08-0642fcf26564","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":154,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"a568b73e-f9db-4bcc-85e9-6deed078fa9a","block_type":"box","text":"which a Fund’s NAV is not calculated. In such cases, the NAV of a Fund’s shares may be significantly affected on","page_number":154,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"b7058033-d8a8-45a1-89af-b840ef3d7931","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":154,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"ebf8eda9-da50-4a00-9184-d71a460f3873","block_type":"box","text":"Fair Value.","page_number":154,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"0db6196d-da4d-4415-b13b-149734b4a141","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":154,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"8adc01ea-e165-43d6-8c40-924e6be5b1d2","block_type":"box","text":"Fund’s investments are valued at fair value (“Fair Value Assets”). Fair Value Assets are valued by BlackRock in","page_number":154,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"55d8a094-aefe-4bc5-b4aa-fbc9a50b95e8","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":154,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"2b0f52e5-b047-4c01-9b04-44dbbc645b48","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":154,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"18de0d95-30b6-4da4-a27f-af3dc08f2684","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":154,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"3ff418e3-4623-4149-ab39-a91affa88891","block_type":"box","text":"unreliable if, among other things, a security or other asset or liability does not have a price source due to its","page_number":154,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"64d81c39-b117-42de-ac0c-a582ce39274b","block_type":"box","text":"complete lack of trading, if BlackRock believes a market quotation from a broker-dealer or other source is unreliable","page_number":154,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"14404bdd-628d-4ad3-a917-4d963ff47e5d","block_type":"box","text":"(","page_number":154,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"8007fc48-de2e-4178-bcfc-88efb8e4f7df","block_type":"box","text":"e.g.","page_number":154,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"be2e5580-9d17-400f-8b22-da65038dbb8d","block_type":"box","text":", where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":154,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"73665f29-ac58-40bb-baa3-c06068a7b12a","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or liability is only","page_number":154,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"cda0926d-c295-4d76-96bb-46662692c6ad","block_type":"box","text":"thinly traded or due to the occurrence of a significant event subsequent to the most recent market quotation. For this","page_number":154,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"c37e072f-c711-4167-96fa-a5bcac2a12a2","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":154,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"07191425-5dd2-48d0-8de5-de25de99cc4f","block_type":"box","text":"an event has occurred after the close of trading for an asset or liability but prior to or at the time of pricing a Fund’s","page_number":154,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"9c616ee2-5728-4cdd-8be1-eb5e0787d767","block_type":"box","text":"assets or liabilities, is likely to cause a material change to the last exchange closing price or closing market price of","page_number":154,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"a8356e27-74e3-4948-a937-2dd8737d00a6","block_type":"box","text":"one or more assets held by, or liabilities of, the Fund. On any day the NYSE is open and a foreign market or the","page_number":154,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"35d7fd33-9a2a-4a0f-9317-ab8fc64801d0","block_type":"box","text":"primary exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued using","page_number":154,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"98ebe537-d6eb-40e7-b34d-14f90a3715b5","block_type":"box","text":"the prior day’s price, provided that BlackRock is not aware of any significant event or other information that would","page_number":154,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"635b4489-3087-4df2-aee4-60c44baff78b","block_type":"box","text":"cause such price to no longer reflect the fair value of the asset or liability, in which case such asset or liability would","page_number":154,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"53c310c4-b6eb-4ee1-bf01-dd5497aaf3dc","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":154,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"17b2bbfe-8e67-429f-9cf7-e7e0c81f1e12","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":154,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"c33befd4-78a3-4bd2-8208-615264958c7e","block_type":"box","text":"II-123","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"24902439-cf27-4056-892b-79411baecc8e","block_type":"box","text":"NM1026U-5981128-154/232","page_number":154,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b98b7a27-26d1-4ca7-8e11-357504eba3fa","block_type":"box","text":"closed. This systematic fair value pricing methodology is designed to correlate the prices of foreign assets in one or","page_number":155,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"8ab77e86-f4f7-42c1-b914-2c783fa0a532","block_type":"box","text":"more non-U.S. markets following the close of the local markets to the prices that might have prevailed as of a Fund’s","page_number":155,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"c14a854c-ad1d-442d-b808-c950beacdf52","block_type":"box","text":"pricing time.","page_number":155,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"d9c3c280-156e-4ffd-bce8-61f8b212b85b","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":155,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"4731e52e-d251-48ed-b146-229252c73cee","block_type":"box","text":"and significant inputs used in the fair valuation of Fund assets or liabilities. In addition, the Funds’ accounting agent","page_number":155,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"b6c2fd24-cdda-439b-8ae6-4a6cde34b653","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":155,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"3bbc1f34-468f-4d7e-8e5f-9b8c74a603c0","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":155,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"edc75f34-3d3b-4677-b4b0-ce23af1a2065","block_type":"box","text":"assets and liabilities of the Funds.","page_number":155,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"21e91afb-f40b-4634-841d-fedf99eb8ddd","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a Fund might","page_number":155,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"2a8d0423-7168-49dd-baab-8523c1d1187f","block_type":"box","text":"reasonably expect to receive from the current sale of that asset or liability in an arm’s-length transaction on the date","page_number":155,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"0a516277-adce-4cbd-a14f-a087f4e80473","block_type":"box","text":"on which the asset or liability is being valued, and does not seek to determine the price a Fund might reasonably","page_number":155,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"2abd50c3-0586-41eb-915d-a9f570d84261","block_type":"box","text":"expect to receive for selling an asset or liability at a later time or if it holds the asset or liability to maturity. Fair value","page_number":155,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"5720ef64-6d6f-4194-bad6-d206b1571531","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":155,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"59a0b329-c90e-4509-99e0-c58a1caafcb0","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":155,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"8659d76b-1c72-4472-a234-0c8ed2abd0a6","block_type":"box","text":"valuation models.","page_number":155,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"5670de81-64c8-474a-b304-5bd2f152cec6","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. When determining the fair","page_number":155,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"79354bf9-c167-4511-b6e3-54d44d67483d","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":155,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"7aee2ed8-3a51-47ac-a8e3-a5c62105c2fb","block_type":"box","text":"the asset type). For example, the investment may be initially priced based on the original cost of the investment or,","page_number":155,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"bd3ae892-f315-460f-8108-619ae3254892","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":155,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"87cfaad9-6f1e-4991-9301-cb96ab550749","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":155,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"1341a9d5-7f37-4c08-8a0b-2a811f384fb3","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":155,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"5c0ce1eb-be64-4b95-b833-7061bab86a50","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":155,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"2106564e-b0ef-4297-8f2d-b7ec2aa78738","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those assets or","page_number":155,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"5847d57c-0923-49af-8e64-726c1278dea5","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":155,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"18d49596-fc74-4b5a-85c4-801f946d5d3d","block_type":"box","text":"NAV. As a result, a Fund’s sale or redemption of its shares at NAV, at a time when a holding or holdings are valued at","page_number":155,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"7f0375e7-f594-48c8-a27c-058cc8df2d00","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":155,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"5b4b00f2-5779-4be7-bd6c-b5478a38813e","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":155,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"96e09e3b-1614-4c5e-b40c-0b4b211a28f0","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":155,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"2fb05166-c55d-4bd3-bc0f-4ac718c20c7b","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":155,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"770fec19-5a2f-4eeb-ad65-cf6cd5af111f","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":155,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"04751913-4e37-451a-a50f-6017e078c610","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":155,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"522a75e1-e656-4450-9e62-cfd3003e5396","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":155,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"ab26c162-943b-4c28-a3d6-34f7272deef8","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":155,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"d6ebc7d7-95e3-4a75-8a5e-5d82e159c48a","block_type":"box","text":"of the fair market value of assets or liabilities, to the extent such rules become more stringent, would tend to","page_number":155,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"beec16c3-c358-48a1-bdbe-a4091692e235","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":155,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"fe489d97-927a-4886-bfaa-ef7b2b13177a","block_type":"box","text":"increase the costs associated with selling assets or affect their liquidity due to a Fund’s inability to obtain a third","page_number":155,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"8f2b8a70-3ce9-4aaa-8d91-dd9e0b120d3e","block_type":"box","text":"party determination of fair market value.","page_number":155,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"f0f975d7-8cd6-46e7-99d4-e8c92017dd7c","block_type":"box","text":"Computation of Offering Price Per Share","page_number":155,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"37d6391b-8b63-4baa-a5e8-c00fd922e59a","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":155,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"47d3805e-5a9b-46ea-9446-3dee70a6c9e7","block_type":"box","text":"the offering price for shares of your Fund.","page_number":155,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"7bcde996-d0ae-4374-94d9-254c24731474","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":155,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"51294b81-705d-41e6-a6db-0a57bc3d839f","block_type":"box","text":"Transactions in Portfolio Securities","page_number":155,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"be2513f7-13c9-44ec-941a-d2aea813b848","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":155,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"be08b23b-1bb0-415e-a566-443cad991340","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":155,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"21797bdc-ada7-47e3-a63a-bc892db8e9e0","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":155,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"98bd7e76-dcdd-49ab-a849-5d425f3ce53b","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":155,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"86d89bdf-e311-4f32-9f61-addcd71e3a99","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":155,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"da5ab017-1d79-45c3-953a-14313a1114f1","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":155,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"b8138e14-7dee-408f-8b3c-66dd05e6397f","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":155,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"aefc18f7-a8b3-4945-8559-ce9650d8694c","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund to pay a higher","page_number":155,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"903dcb54-b297-4621-99f7-b95324c7e6f4","block_type":"box","text":"II-124","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8f2b366e-235d-4a36-b0d2-b3a57e3a8d0f","block_type":"box","text":"NM1026U-5981128-155/232","page_number":155,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f873c3ec-085b-4973-819e-1c53dccdb2ca","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":156,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"b00d2341-9865-43b9-a8cb-bfa83aaf5277","block_type":"box","text":"reasonable in relation to the services provided.","page_number":156,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"d4f7125c-3a6c-472a-a58a-602ed0d9dcdd","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":156,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"4d2a63c2-3480-4864-ae8b-75709692a4fb","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":156,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"f56f75b5-a17a-4aa1-a0eb-6945020b4c14","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":156,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"8f1e21d0-68c2-41a7-a8ce-4890163259f1","block_type":"box","text":"the best price and most favorable execution for a Fund, taking into account a variety of factors including: (i) the size,","page_number":156,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"92c65bfb-6f85-46d8-ac22-bb05cbac0ebc","block_type":"box","text":"nature and character of the security or instrument being traded and the markets in which it is purchased or sold;","page_number":156,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"30a50f77-d800-4ad5-827c-a2f61be003e7","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":156,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"3ab32eec-9360-46cf-ac1e-891da874269e","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":156,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"554aab72-686a-4dca-9dfc-ba36b538333c","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":156,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"9cde19d6-0dab-4156-9839-a912bcac5eac","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":156,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"c9df3bd4-3b6c-49f5-8062-2e363eea68b9","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":156,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"d81033ec-8dea-4cf7-9cfb-3d70cfc23e50","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":156,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"0cf87102-8e18-4181-a656-a316a3d8a5d1","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":156,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"8a9e2a9d-fcb6-418d-8785-8c26021d8375","block_type":"box","text":"to cause an account to pay a broker or dealer a commission for effecting a transaction that exceeds the amount","page_number":156,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"b973e4d0-b1bb-41c2-b3e9-b7ebf42c67ca","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":156,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"ff94b4a3-3f93-486f-a525-c399b08e780c","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":156,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"9323e8ce-0683-4bae-84a3-921d7fcd0d55","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":156,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"bc72a1a2-b3ec-43de-a4f4-70214b7c17b7","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":156,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"660b0f3f-ec31-4785-a513-1aa2dbbf1e61","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":156,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"6d2600e9-604b-4c38-afad-81b0c89661c9","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":156,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"ca5d7790-e973-4061-87a1-bc7ca3530b38","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":156,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"4943fc48-5432-4088-b74f-c3731fb5106f","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":156,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"3800a0fb-0805-4e0a-aeb5-22fa541c9a19","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":156,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"7b7e6eed-16dc-41c6-81c1-a2e6ee3e724c","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":156,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"8e4c14b3-bc3c-4c77-9fc0-4d86c400c6e3","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":156,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"f7991e7a-f491-4e65-aca7-6d04a348647d","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":156,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"747e26d1-7e77-41d7-bdd6-fd219f529776","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":156,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"c51ffdc7-55b4-4d9b-84ba-013b3564dc81","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":156,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"e100dc9a-9987-41ef-be1d-3246583c72bd","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":156,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"175f7688-085d-4ff1-b199-2351e9e4a3e4","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":156,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"3e870b27-3086-4e39-b221-ab55cd69ed30","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":156,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"1d269989-ee82-42b4-9e39-7696d004fc9f","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":156,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"e1728033-a679-4201-b089-c5ce247c7e05","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":156,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"da8e398e-6b91-40b7-906c-d2e568455eff","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":156,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"faae9356-cf55-45aa-a31b-1bfe05cf9852","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":156,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"492d64e8-aab8-4c61-a3ed-70cec6190422","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":156,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"e99db20e-896b-4826-ab32-5533c3a0deed","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":156,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"a659ba97-6825-4f7e-b43b-0af382e0e245","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":156,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"6cf629e5-90c6-4500-ac35-1472b073d766","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":156,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"92846eae-8232-4d4f-9f91-26d84a0fc1f2","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":156,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"e92c5b31-cde9-4882-8036-5ba81d93c79a","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":156,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"8da34d66-d830-4d2e-baa8-9b91e6c3b9e5","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":156,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"f1610fc7-41ca-494f-9148-f1ca2d09490b","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":156,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"d9f8fec6-1fcf-46ad-913d-e0c0dfdbfff4","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":156,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"235b5ae3-6829-47e3-9408-1a0ac113974b","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":156,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"123beab6-d790-444a-845f-d127760d3446","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":156,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"7886e51e-4470-42f6-b4a7-2d969260b9d8","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":156,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"d6827fc4-3603-4fe0-a772-c39000c44d22","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":156,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"88981804-8992-4fb0-a53d-4f9065e01ea3","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":156,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"65dd456d-80fd-4741-829c-bf0e0f8af9ff","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":156,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"b1cffa46-4b82-41ed-aeec-0366edc5f911","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":156,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"b5669a02-9712-4dd5-b24b-bc4cfe4a0a3c","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":156,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"008c5b7a-702f-4f54-ae5e-6bbff2fb7caa","block_type":"box","text":"used in servicing some or all client accounts and not all services may be used in connection with the Fund or account","page_number":156,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"b71aa71e-f9bd-4fbc-90a5-99d003ef49ff","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":156,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"0cb9e20e-3132-4523-a4af-2f436fd47e85","block_type":"box","text":"II-125","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bc8b2630-e3e2-405f-b18f-4e9e8a1e48bf","block_type":"box","text":"NM1026U-5981128-156/232","page_number":156,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"129da5ba-b595-4a43-b997-7803ed4653f5","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":157,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"9f0f6329-5c61-4ea6-86c1-ab8196f207da","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":157,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"917e9cdb-74da-4788-b647-d769f6bcbca9","block_type":"box","text":"paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt of research services. In some cases,","page_number":157,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"335a3365-bb72-42d0-b11c-f6f5cbb9e9e6","block_type":"box","text":"BlackRock may receive a service from a broker that has both a “research” and a “non-research” use. When this","page_number":157,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"4d70577f-30aa-4823-9b34-da34cc2bce12","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":157,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"ee750e2d-db12-4f2a-988d-993e8fdc3d59","block_type":"box","text":"research uses of the service. The percentage of the service that is used for research purposes may be paid for with","page_number":157,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"364cf739-d36c-4f50-b404-73d69a81cf58","block_type":"box","text":"client commissions, while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":157,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"1f0793bb-24a7-4fdf-8490-3fd9480afd95","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":157,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"949061e5-17d5-4b62-bf24-1e74e4e7d795","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":157,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"a4c0a9b4-2162-4c95-8123-0c8ce959dc37","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":157,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"ccc90312-88af-4301-a6c3-db4bdfc3b543","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay for research","page_number":157,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"0002bdc1-970c-41f8-bf76-49abed2aa44d","block_type":"box","text":"from brokers. Investment managers in the EU are required to either pay for research out of their own profit and loss","page_number":157,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"b2d73f93-1082-4710-a99f-2d70fe46903f","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":157,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"0afb1b76-aa0c-4b62-ba34-9ca9fc8558cb","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":157,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"1d7b6299-4fac-406d-9282-1dff6b8a5590","block_type":"box","text":"payments for research are unbundled from the payments for execution. BIL will pay for any research out of its own","page_number":157,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"63b411d9-d605-4c7c-a43a-7310007a0634","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":157,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"8e9a2f0f-4f11-46ef-8c1c-72e950ad696d","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":157,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"2851ce57-9e61-43e7-b666-8371fff691ee","block_type":"box","text":"to the Feeder Fund (or affiliated persons of such persons), will be made in accordance with Rule 17e-1 under the","page_number":157,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"9f23cb26-4bf3-4920-bbb5-0581bd82b06b","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":157,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"5df7f9b4-6774-4411-b9ab-9d69306fb2cf","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":157,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"c4f7a73b-cf15-476b-a54b-08120e70bb42","block_type":"box","text":"brokerage.","page_number":157,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"91f942de-8c75-4c39-91a6-8585f1acb33b","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these situations,","page_number":157,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"d76364cb-12be-4432-a057-95f623a64d46","block_type":"box","text":"the broker may be a member of the selling group that will, in addition to selling securities, provide BlackRock with","page_number":157,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"a2eaf5bb-a47a-4f8f-a567-709ed300acae","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":157,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"dc5c51ee-f1ca-45d1-9e71-d9225a0deff2","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":157,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"abb4da2b-0c56-4e06-a15f-f0e4229966e8","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":157,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"c8478229-22cb-4307-b38c-96b2a64a9a04","block_type":"box","text":"Section 28(e).","page_number":157,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"9c81b533-1fcb-4452-a54e-4a3fadf6ee11","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection of","page_number":157,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"aef6733c-ef9b-4a7d-ae84-627dba982fe6","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":157,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"133c15ca-72f5-4072-90e1-c678739d4a9e","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":157,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"20566a8c-cea6-414c-9bb2-fa7d0653ea4e","block_type":"box","text":"execute transactions for those mutual funds.","page_number":157,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"bf377b78-43d3-4472-8c50-d2bef262b8ea","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":157,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"ad69e23d-a393-48b6-8f05-b72bb610bca4","block_type":"box","text":"primarily on the principal stock exchanges of the applicable country. Foreign equity securities may be held by a Fund","page_number":157,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"9270a211-73b1-4d53-8953-f751905d9855","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":157,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"4855c54d-15cf-4e0e-867e-12b5df151c99","block_type":"box","text":"may be listed on stock exchanges, or traded in OTC markets in the United States or Europe, as the case may be.","page_number":157,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"c1aca32b-7132-449b-a831-12d7dd6a29bd","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":157,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"d2a0a879-54ae-4b42-a349-ae0884f61a34","block_type":"box","text":"commission rates. Because the shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund","page_number":157,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"75357498-6225-453e-9427-226e18171f8d","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":157,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"57eeac60-dda9-4c5a-8093-784d2b3636aa","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":157,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"37984a69-3445-42bc-827f-032ae891dd62","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":157,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"c075c9b5-a9b2-44ef-9912-0dd491d71583","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":157,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"e909d324-6708-4c99-ab68-3da816d8a95a","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":157,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"5faf0f63-410f-49d5-bd00-6a2c865c52fb","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":157,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"b498c993-b7e7-487e-808e-b41363131d70","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":157,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"a129819d-c15d-4208-9b1a-47020105cbf8","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":157,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"56e44918-c1d5-4121-a7bf-1f58a1d09925","block_type":"box","text":"affiliated with such affiliated persons are prohibited from dealing with the Fund as principal in the purchase and sale","page_number":157,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"ae931287-fe20-4b95-829e-e7d3b28e37a4","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":157,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"c4d7f7f6-0d17-4dbe-b7c8-8e34895e1085","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":157,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"9abc5950-87ca-48c7-b3a0-0dd135741509","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":157,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"a2196d9e-ea69-43fe-be5e-8a420eb763af","block_type":"box","text":"person of a Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":157,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"55549217-1d5b-44f9-a5e1-b7ac2169534e","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared to the fee or","page_number":157,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"2e24ce56-9732-46d7-9d4b-9d0a03e4d0f4","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":157,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"6cec1696-6d70-485a-9c77-47618ce71992","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":157,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"1d21aa28-503f-48e1-bda0-1efcfb177d17","block_type":"box","text":"normally traded on a “net” basis without a stated commission, through dealers acting for their own account and not","page_number":157,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"ff1e7225-6065-4cbd-b6b6-dd5bd07e9919","block_type":"box","text":"II-126","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c5b7f7c8-ec3d-4eaf-a89b-49b1998aaf8e","block_type":"box","text":"NM1026U-5981128-157/232","page_number":157,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"759eea35-b540-45dc-9c60-a130bb309a9c","block_type":"box","text":"as brokers. The Funds will primarily engage in transactions with these dealers or deal directly with the issuer unless a","page_number":158,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"4897d900-6b2a-49c9-9295-dc085762aed5","block_type":"box","text":"better price or execution could be obtained by using a broker. Prices paid to a dealer with respect to both foreign and","page_number":158,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"f15ffec0-5387-453d-b5f6-f007ea03f09b","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":158,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"d4aa63cb-30f7-4923-b6f9-b52e79171ec5","block_type":"box","text":"is willing to purchase and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":158,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"3dd32ca4-8ab0-41dd-8550-fe81eef6602a","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":158,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"11a447cd-1ce6-4623-bd02-5e772a95d972","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":158,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"e230d31e-73c0-4424-a47e-f6446cc6e3df","block_type":"box","text":"instruments are generally traded on a “net” basis with dealers acting as principal for their own accounts without a","page_number":158,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"da6615ee-5622-4b4b-a7f1-cdba0b841e63","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":158,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"f18caf7e-3f40-4a1c-873a-a7e681419940","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":158,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"69c9a8de-b69e-44fe-8cbd-dae559b42519","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":158,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"84c93824-c19a-42e4-9e2d-f51b5ed19bd2","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":158,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"45c63a6a-dfb5-4275-9748-e1c116c406ff","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":158,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"f3574881-37ff-4ac3-8212-0b0622db2bb0","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":158,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"5fc52ccc-6717-4b07-9f21-25ed9b280bfb","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":158,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"881a210c-29e9-4ded-896e-46d823f5ae29","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":158,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"d9a6a3e7-0313-4484-9686-ce4723437a81","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":158,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"de40ed40-963c-431e-9b74-46792b49a3a9","block_type":"box","text":"selling commercial paper to consider the repurchase of such securities from a Fund prior to maturity at their original","page_number":158,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"c089bfdf-051e-445b-931b-e73e17d2c8bd","block_type":"box","text":"cost plus interest (sometimes adjusted to reflect the actual maturity of the securities), if it believes that a Fund’s","page_number":158,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"2fc980a4-0080-4430-a294-a4998bf202a8","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":158,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"85979742-7f63-4f45-8219-950e12648c41","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":158,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"dcf96406-f902-497e-9809-75b3d7b3dd36","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":158,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"af0be5e0-565e-47c0-a09e-fa262d7db75c","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":158,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"cef72723-5bde-4363-8134-0a0b73b3d466","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":158,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"49d49ebf-ffed-4195-b9a0-fc055899fa94","block_type":"box","text":"accounts in a fair and equitable manner over time. A variety of factors will be considered in making such allocations.","page_number":158,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"07ce68d1-938c-49f0-9aea-a04cb32155c5","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":158,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"d08bdbe1-f234-491f-8834-fc7979c0d8ad","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":158,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"d1c4c3dc-53af-46a8-bb1d-f0d793aa48b8","block_type":"box","text":"concentration parameters for an account, (iv) supply or demand for a security at a given price level, (v) size of","page_number":158,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"1009f4b7-1f6a-4d1c-8952-12a25c546505","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":158,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"045f0864-7d04-4477-a6de-5f3293bf9441","block_type":"box","text":"(viii) minimum investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":158,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"4e72caaf-5adf-427f-8d0a-27f8a0efc83c","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":158,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"4f6d3a95-1391-4c08-ba31-ccb8e7f31820","block_type":"box","text":"another based on any of the following considerations: (i) to favor one client account at the expense of another, (ii) to","page_number":158,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"8212264d-c6d5-48e9-ad79-7ca16569fd38","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":158,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"830cfaeb-7e50-452a-a70b-55233d95e1f7","block_type":"box","text":"BlackRock, (iii) to develop or enhance a relationship with a client or prospective client, (iv) to compensate a client for","page_number":158,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"c14b32cc-7e5f-4828-be8d-9caf85a457df","block_type":"box","text":"past services or benefits rendered to BlackRock or to induce future services or benefits to be rendered to BlackRock,","page_number":158,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"b45b41cf-dede-454e-b09a-f23cb5b0c37c","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":158,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"73e3418a-18b4-4fe8-aed8-384790ba1d95","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":158,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"0b008edf-d125-45ea-a1dd-a9a7e3c7eb07","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":158,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"98c277a5-a4a3-41b7-bbdd-1307e3da3b88","block_type":"box","text":"accounts and compliance constraints.","page_number":158,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"e463391e-e218-44ea-9232-8113f0c6b63c","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":158,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"f981bf97-073d-4575-969c-081f8adc5459","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":158,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"b12726dc-9051-439c-8204-e77ac99c2f64","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":158,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"50f5663e-662c-472f-9b8d-a9385ec090d6","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":158,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"56fa7fe7-c63f-4707-9e18-abae227f6bac","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":158,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"77976079-5e0e-4270-90c8-2f56a37edb46","block_type":"box","text":"accounts for which that team is responsible. Initial public offerings of U.S. equity securities will be identified as","page_number":158,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"385bb344-71b7-4c77-bea1-179f4aa35909","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":158,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"7e3659f3-0d4d-4cf3-99cf-fcc539e54b8b","block_type":"box","text":"based on market capitalization of the issuer of the security and the investment mandate of the client account and in","page_number":158,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"eee3c032-2e20-4604-8b8b-4744fe66d303","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":158,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"aa116008-0fba-48c3-a74e-eafd3055507d","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":158,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"b40c3232-29d2-4f87-bf07-583a46173cd1","block_type":"box","text":"client accounts within each investment mandate on a pro rata basis. In situations where supply is too limited to be","page_number":158,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"463b6ac5-8d05-4407-ae0d-76d42f1edb8c","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":158,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"066fea80-53ad-445e-a2ee-def7ca5901bf","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":158,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"56b21608-d580-4cb9-99c5-ee2e04c66b23","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":158,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"7459e33f-41a8-4039-a97e-5814c91d1167","block_type":"box","text":"clients may be used as well.","page_number":158,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"84b5c73f-b835-4191-ab37-ab8213b27df0","block_type":"box","text":"II-127","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"401278fd-56ac-431e-8921-f0be5ffaddf8","block_type":"box","text":"NM1026U-5981128-158/232","page_number":158,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e26b70b4-92e9-410e-80db-89edf7931937","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":159,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"f073f1d3-cfcb-43f6-bc12-1d5a78b07413","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":159,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"84678e74-01e8-4aed-aa72-e628089acd02","block_type":"box","text":"and strategies of those accounts. For example, BlackRock may decide that it may be entirely appropriate for a growth","page_number":159,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"9c20f3c6-5668-4953-840d-e7eee46b9601","block_type":"box","text":"fund to sell a security at the same time a value fund is buying that security. To the extent that transactions on behalf","page_number":159,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"f703a6ff-56dd-4e5b-9cb5-e0467298afaa","block_type":"box","text":"of more than one client of BlackRock or its affiliates during the same period may increase the demand for securities","page_number":159,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"fe72f8cc-74e1-4edf-a1b7-3d3478d3592c","block_type":"box","text":"being purchased or the supply of securities being sold, there may be an adverse effect on price. For example, sales","page_number":159,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"38b39a75-5ff5-407f-bd46-8b1a8a7df603","block_type":"box","text":"of a security by BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":159,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"67c84acd-81b2-4f0b-b823-cab86fb54250","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":159,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"66497c53-9925-4d4e-9490-9682ba9228f4","block_type":"box","text":"consideration at or about the same time that would involve a Fund or other clients or funds for which BlackRock or an","page_number":159,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"0ced6515-ced5-47e8-97ee-9c525aa0cb74","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":159,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"6e39ffd5-7254-4795-afbf-8a37bf33d22a","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":159,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"1bc73adf-7c92-4c3c-be0d-3c9d224efcb2","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":159,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"ae466a6c-a282-4254-a0c3-7bf76e095ee4","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":159,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"b87496b8-53fc-41ab-9837-7b6ff05e544b","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":159,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"218a4518-1db4-47a5-90a9-ff0f3f959420","block_type":"box","text":"will be aggregated in a single order if the trader believes the aggregated trade would provide each client with an","page_number":159,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"1c8e9ffb-70d4-4587-8385-3fb6614e9450","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":159,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"9924a876-d905-4879-a2e4-b7e66b32247d","block_type":"box","text":"aggregated order will be shared pro rata among the clients in the aggregated order. Generally, if an order for a","page_number":159,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"5611960e-c68c-44d6-b9bc-7be2ebb891bf","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":159,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"1dea8a49-9584-434e-8258-d013025b4c4b","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":159,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"683b3691-fd66-4f76-8d5d-e5c0d5109055","block_type":"box","text":"where average pricing is not permitted. While in some cases this practice could have a detrimental effect upon the","page_number":159,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"84b48723-4346-4699-bb90-7c07b286752a","block_type":"box","text":"price or value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":159,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"94408f64-d97b-4587-9d07-7abe5cae913b","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period may increase","page_number":159,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"f97003ad-befe-4d63-8c59-e7463a3d1ab9","block_type":"box","text":"the demand for securities being purchased or the supply of securities being sold, causing an adverse effect on price.","page_number":159,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"207f125b-7591-4fdc-8f79-b9899d4ce7b4","block_type":"box","text":"The trader will give the aggregated order to the broker-dealer that the trader has identified as being able to provide","page_number":159,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"8f810b3b-2e40-40b9-bd12-0a48e1875785","block_type":"box","text":"the best execution of the order. Orders for purchase or sale of securities will be placed within a reasonable amount","page_number":159,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"58cd3024-326d-4ae9-acc3-34ac97bb860e","block_type":"box","text":"of time of the order receipt and aggregated orders will be kept aggregated only long enough to execute the order.","page_number":159,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"1054a2b6-3411-4c45-b83b-f7d673d010cd","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":159,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"9e136d2a-d0d5-4e09-92e2-f8a5721bb1cc","block_type":"box","text":"securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment Company Act) thereof is a","page_number":159,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"68e0214c-9e30-4fcb-a61e-2d6704acd419","block_type":"box","text":"member except pursuant to procedures adopted by the Board of Directors in accordance with Rule 10f-3 under the","page_number":159,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"df9a3cc4-f430-4018-b2db-963ec7c1e4a0","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":159,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"7d042e4e-5fe8-4e49-97b4-6c04e67b095e","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":159,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"f34ff2c0-8044-4e58-8c48-69b98240aeb2","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":159,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"49cb3f71-e433-4d32-aa59-baec1d56533e","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":159,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"7b41e754-227b-450e-a579-7c348742db65","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":159,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"d0fcbceb-9c8a-499f-9ac9-4c94548a9a58","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":159,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"6884283b-ea28-4b54-84fb-dcd72c044ca2","block_type":"box","text":"to all by BlackRock. In some cases, this procedure could have a detrimental effect on the price or volume of the","page_number":159,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"25a3f388-636e-4885-a297-885674cec3e5","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":159,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"47318035-01d6-4a14-9b8b-a08c9f3bf322","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":159,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"68a2b33e-99cf-4afa-8354-7773f8862c39","block_type":"box","text":"invest for its own account in the types of securities in which a Fund may invest. BlackRock may, from time to time,","page_number":159,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"43a9a34f-d74b-4dc2-bbae-de250981148c","block_type":"box","text":"effect trades on behalf of and for the account of a Fund with brokers or dealers that are affiliated with BFA, in","page_number":159,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"b84a9c5f-0adc-47cc-8dac-5680fdb1a604","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":159,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"d25ac908-9c5b-4f38-8a40-8beb43b395e4","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":159,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"58e7e8b4-e52b-4624-b68e-bb13a08bd08c","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":159,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"aa745330-1c5b-48db-9656-3d4878774933","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":159,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"c5a8e799-82e6-413f-a0bc-b9758411d3ee","block_type":"box","text":"Portfolio Turnover","page_number":159,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"5e9988e1-bc10-4a5d-91f4-6097f1d72695","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":159,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"66ed648e-12b2-44e6-a34e-e9395068564b","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":159,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"4f8104de-1e1e-4e7c-b004-a32d3eb1e027","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":159,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"1df5d9b0-d436-42b9-8507-6c24ded94e0a","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":159,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"367c5f37-7f4a-4988-9337-aa8640beb3a6","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":159,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"ba11acb7-8ec9-4fcf-9e8e-209c3d17594c","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":159,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"c270e4c9-02bd-4ceb-8706-9dd768930d0d","block_type":"box","text":"II-128","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d60cfd7b-73ae-402f-bdf1-7b55a37215d3","block_type":"box","text":"NM1026U-5981128-159/232","page_number":159,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e0c8702c-ba7d-4246-a256-adab4d8f1a40","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":160,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"ded862e8-797d-414f-87f4-cea4eec384dd","block_type":"box","text":"Dividends","page_number":160,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"b1e35a4f-dd0f-41d1-a6c7-0cbec2e7dfc6","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":160,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"91d25ad4-9244-4818-be2d-96b4f69a29b3","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":160,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"5098a303-5a3b-4424-9321-e7c9e1b50685","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":160,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"e4c46070-c1e9-4e67-a113-b7565503b10d","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":160,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"a5d91baf-dfba-46c1-921f-55c4b85e1b26","block_type":"box","text":"percentages of its ordinary income and capital gains be distributed during the year. If, in any fiscal year, a Fund has","page_number":160,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"0e0bac42-c234-4efb-af90-268f153f88f5","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":160,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"61e0f42b-f137-4d47-832a-7008da853ba5","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":160,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"7859359b-fa0d-428b-8781-9908129e1c84","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":160,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"c1e9825c-ef48-4d02-bc90-bedb60ed11a4","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":160,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"ea55ec96-373a-4ab3-87a6-790546ce0c6c","block_type":"box","text":"whether they are reinvested in shares of the Fund or received in cash. The per share dividends on front-end load","page_number":160,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"f2f1ccd3-7669-4e67-9b24-ae6522de9c35","block_type":"box","text":"shares, CDSC shares and Service Shares will be lower than the per share dividends on Institutional Shares as a","page_number":160,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"bc94c886-a5b0-466b-8878-b8789d3a4436","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":160,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"e6b35ac4-0f48-4ee3-a959-d797ada77180","block_type":"box","text":"applicable to front-end load shares and Service Shares, and the service and distribution fees applicable to Class R","page_number":160,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"6904c67d-4fe9-4646-a421-dc9db753a350","block_type":"box","text":"Shares. Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per share","page_number":160,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"19f55e0b-9160-4704-bf2e-785ce8cb5793","block_type":"box","text":"dividends on front-end load shares and Service Shares as a result of the distribution fees and higher transfer agency","page_number":160,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"e72ac07d-4dee-4109-a55e-b8ecec246979","block_type":"box","text":"fees applicable to CDSC shares and the distribution fees applicable to Class R Shares, and the per share dividends","page_number":160,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"3e320d2b-40cb-43a0-9d38-10410ce01c72","block_type":"box","text":"on CDSC shares will be lower than the per share dividends on Class R Shares as a result of the higher distribution","page_number":160,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"86d5cdb2-6184-493b-a1fb-acabb1f7fdc6","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":160,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"cbe86b2e-f5f0-475f-b28b-3f09327a0e44","block_type":"box","text":"Taxes","page_number":160,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"740674cf-e497-4c7d-8994-6329de2db78c","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":160,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"10ff0e1f-0b95-44cb-871e-9eada8e4b3ff","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not be subject to","page_number":160,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"9edb448e-07bc-45dc-8311-9783b270a23f","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":160,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"7708cc19-3cb0-418f-9161-909070f708ab","block_type":"box","text":"distributes to its shareholders in years in which it distributes at least 90% of its investment company taxable income","page_number":160,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"4704c418-60e3-4297-8e5a-ededd3144fd1","block_type":"box","text":"and at least 90% of its net tax-exempt interest income, if any, for the year. To qualify as a regulated investment","page_number":160,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"8642f30e-02c6-4326-b81b-23164eaba0a3","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":160,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"ee58d3dc-3e22-47ad-9074-94c28e57116f","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":160,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"358b0931-48ae-4ecb-83ea-fc39e4bf72a0","block_type":"box","text":"for a discussion of the asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the","page_number":160,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"c585392e-b1a4-4ad5-b0bf-fd2c139bb7d5","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":160,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"870ca22c-4c45-4d53-b445-6f83136aed01","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":160,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"d27e33c1-8ffd-4d55-ad08-9f20b0f16a2b","block_type":"box","text":"A Fund may be able to cure a failure to derive at least 90% of its income from the sources specified above or a","page_number":160,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"8465532a-aa9c-495e-a312-7017acc9784d","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":160,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"8be0a220-978a-4380-853e-488e6999d584","block_type":"box","text":"paying a tax and disposing of assets. If, in any taxable year, a Fund fails one of these tests and does not timely cure","page_number":160,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"3c71a734-b1ca-438a-be41-b6c3082462f7","block_type":"box","text":"the failure, the Fund will be taxed in the same manner as an ordinary corporation and distributions to its","page_number":160,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"4c2d6744-dd7c-4648-8328-e287a2c91927","block_type":"box","text":"shareholders will not be deductible by the Fund in computing its taxable income. Although in general the passive loss","page_number":160,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"e5939446-edb9-489e-888e-26813e3d54f3","block_type":"box","text":"rules of the Code do not apply to regulated investment companies, such rules do apply to a regulated investment","page_number":160,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"9d6a2b2d-2f0e-4f43-b869-25347d0de975","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":160,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"6ae8d40a-0603-4e6a-88d8-e81e8ece6882","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":160,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"0f30b9a2-8c11-4e8e-9c35-3d0ca1e852c6","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":160,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"387f69f7-e99d-47cc-a814-7a82574703b6","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a Fund fails to","page_number":160,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"3c87015e-36af-4217-8950-2958249eeb64","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":160,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"bc26afe9-1d18-43cc-8203-68cfc40218dc","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":160,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"34a775e9-277a-4f5f-a3f5-6228946ff605","block_type":"box","text":"earnings and profits (as determined under U.S. federal income tax principles) to its shareholders would be taxable as","page_number":160,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"00d3ea06-cd8a-4150-9c5b-8fda9a660559","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":160,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"2963e956-53e3-49e8-8654-090b82b3d047","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":160,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"4179d886-01a4-45a1-9ec4-1ad5c4cbaf62","block_type":"box","text":"exempt obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that is a","page_number":160,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"75782b13-a846-4095-94f2-74f449da75a7","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":160,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"cd533f59-8c51-442b-b82f-080b1f6ed21a","block_type":"box","text":"U.S. federal income tax purposes, and therefore is considered to be a separate entity in determining its treatment","page_number":160,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"293037cd-fb63-42ed-bce8-9ec5feac27f7","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":160,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"64a2451d-7b2f-4f55-a1ee-dd233286e4ea","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":160,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"55677365-eb10-4c5e-b1f3-4404bbdeeb23","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":160,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"d3e38fda-b75e-44b2-8540-80aebc4829bb","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":160,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"be26d9b5-5b3d-433f-8629-98396a9e954e","block_type":"box","text":"II-129","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"442eb1f9-339f-419a-9d56-9452c1497c0f","block_type":"box","text":"NM1026U-5981128-160/232","page_number":160,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"77dda0bc-6663-45d6-a65e-6cb005e0b65d","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":161,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"a153a0ea-9046-4b9e-89bb-7442201f63a1","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":161,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"99833ac4-30bf-4900-9cc1-c296b6baf51d","block_type":"box","text":"determined on a calendar year basis, and at least 98.2% of its capital gain net income, determined, in general, as if","page_number":161,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"84ae9b0e-4e86-4343-87db-b0aaf46fc39f","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":161,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"b6879624-5b34-4325-bf6f-a30a277ded55","block_type":"box","text":"previous years. While each Fund intends to distribute its income and capital gains in the manner necessary to avoid","page_number":161,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"bd20f518-d99c-4194-a7b7-c1527aca0c2b","block_type":"box","text":"imposition of the 4% excise tax, there can be no assurance that a sufficient amount of the Fund’s taxable income","page_number":161,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"2e19fbdc-3722-4e58-b4a6-1151d07be4e5","block_type":"box","text":"and capital gains will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for","page_number":161,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"e6af4b59-25b0-4c1f-8de1-a44bad50d321","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":161,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"5f14f858-8056-40c9-92e7-b1105194d3b2","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":161,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"b3eb4db0-5801-4dcc-a7bc-2d99bc28184d","block_type":"box","text":"have been reduced to zero. In the event that the Fund were to experience an ownership change as defined under the","page_number":161,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"7f974053-c9d8-4dcc-90b6-97615a83c66b","block_type":"box","text":"Code, the Fund’s loss carryforwards and other favorable tax attributes of the Fund, if any, may be subject to","page_number":161,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"7ede915a-f65a-4243-8703-46408aae8971","block_type":"box","text":"limitation.","page_number":161,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"623a38fd-f080-4686-a081-18af5d55e4e6","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":161,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"0028f3c6-c015-426c-a924-59fa47d7be03","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":161,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"3fd5b48d-02a0-4f09-a0ad-fde1e2d4392b","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":161,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"e9c2fea9-aa32-47dd-b2dc-804af42c614e","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":161,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"af62ec2a-7e82-4cfc-88bc-7e03bafc87e8","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":161,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"776a39bb-500a-4772-ac04-3fad0e462dbc","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":161,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"8b162d94-0462-4aa9-9870-f8383f0f38ed","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":161,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"0f6cd62d-7bc8-419d-ba9e-17f213c0e46c","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":161,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"dd469e61-edb9-4716-b4c4-5e7935b3e7fd","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":161,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"6d2f286e-f3d5-4d69-b88c-1849f19c310d","block_type":"box","text":"taxable to such shareholder at long-term capital gain rates provided the shareholder has held the shares on which","page_number":161,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"9bde1423-2a91-418d-b6f3-c0f2857ec884","block_type":"box","text":"the dividend was paid for at least 61 days during the 121-day period that begins on the date that is 60 days before","page_number":161,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"d13a56e4-f31e-43e2-9abc-95781884cb2b","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":161,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"ea49a6f6-d1b2-4281-aee7-9b8a0c4f1a75","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":161,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"15f94e7a-2078-49a1-aa9d-405c126d8f2e","block_type":"box","text":"was paid for at least 91 days during the 181-day period that begins on the date that is 90 days before the date on","page_number":161,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"8220e910-68f5-4175-ae2e-14533507b32c","block_type":"box","text":"which the shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s distributions","page_number":161,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"4afc6d44-4292-4eeb-82e9-c1d3362b74a1","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":161,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"73076354-b18b-4fef-8e9b-9c2f4d3d9781","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":161,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"e13adf3b-3810-468c-ae60-c2f95ec1dced","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":161,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"405b591d-6f55-4901-b4e3-b5526cc68ae1","block_type":"box","text":"constitute “qualified dividend income.”","page_number":161,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"a2c06475-2d36-49af-8e50-f40b0c4bdcbc","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":161,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"4ee91961-d08f-4d86-875e-d1b51503b975","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":161,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"4f568c21-c28a-422d-a748-7190ff3558c4","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":161,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"c9a31b18-d6d1-428c-9020-f834679b059b","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":161,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"149e9da9-27ab-43df-bcea-615dd250d3ca","block_type":"box","text":"Fund retains net capital gain, it is subject to tax on that gain, and may designate the retained amount as","page_number":161,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"fc0c53ec-b61a-47e9-b5c4-8880f1266ed8","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":161,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"ff9e4d69-7f0c-4d78-a347-985763a59e2d","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":161,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"e1b15890-e5b3-4976-a35d-4348399d888b","block_type":"box","text":"have paid and may claim as a credit against their U.S. federal income tax liability (and as a refund to the extent it","page_number":161,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"d1f57772-9833-48e0-83d2-d1b192057a08","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":161,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"7a298bb8-8fc1-49e6-a82a-484beef26d8e","block_type":"box","text":"basis of their shares in the Fund by the excess of the amount included in income over the amount allowed as a credit","page_number":161,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"982973be-f7e1-40df-98f4-0295a4c4af62","block_type":"box","text":"against their taxes.","page_number":161,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"f620ddaf-7f2c-4236-aaec-79a2c782b037","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":161,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"dc56a658-5d06-4e45-9e89-67ffc1024fb2","block_type":"box","text":"tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":161,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"9fddf4e0-db5e-4500-97f5-de0be8ad9afc","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Distributions in excess of a Fund’s minimum","page_number":161,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"53982083-a04d-4a7d-9958-b1d2348e91e5","block_type":"box","text":"distribution requirements (or taxable income) but not in excess of a Fund’s earnings and profits will be taxable to","page_number":161,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"411a05ce-58ed-446e-81b0-f4c644c4b2f2","block_type":"box","text":"shareholders and will not constitute nontaxable returns of capital. In the case of a Fund with a non-calendar taxable","page_number":161,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"8c7d0246-2203-40b5-9df6-5986fcaa2726","block_type":"box","text":"year, a Fund’s earnings and profits are allocated first to distributions made on or before December 31 of the taxable","page_number":161,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"d3f3c369-521d-44ee-b6d9-dc79838dce21","block_type":"box","text":"year, and then to distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of","page_number":161,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"19ac796b-f814-4d28-ad83-c529f52644ad","block_type":"box","text":"Fund shares held for six months or less will be treated as long-term capital loss to the extent of any capital gain","page_number":161,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"5821c558-edc5-4d70-9f8e-c35962264948","block_type":"box","text":"dividends received by the shareholder.","page_number":161,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"99473af7-e445-4e62-aca5-78e3d9695d62","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":161,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"3f540baf-9b0c-42a4-92b1-a6ccf6ace359","block_type":"box","text":"shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains, generally will not be eligible","page_number":161,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"0195f8ba-ebce-42f7-991d-29ce4c52ff9b","block_type":"box","text":"for the dividends received deduction allowed to corporations under the Code. If a Fund pays a dividend in January","page_number":161,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"e942eeb3-a890-4ac9-919a-4b120e69a2bc","block_type":"box","text":"that was declared in the previous October, November or December to shareholders of record on a specified date in","page_number":161,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"abb565dd-aa33-4846-8d12-4a7ad8efc61d","block_type":"box","text":"II-130","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f9b81a58-939e-4476-96ca-8bd19871ce45","block_type":"box","text":"NM1026U-5981128-161/232","page_number":161,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3809f362-14c1-4717-b46e-5656d10ac5dc","block_type":"box","text":"one of such months, then such dividend will be treated for tax purposes as being paid by the Fund and received by its","page_number":162,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"9b02d63e-bb5b-4457-b517-b545179d02d3","block_type":"box","text":"shareholders on December 31 of the year in which the dividend was declared. In the case of a Fund with a non","page_number":162,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"8a5c7d6e-82bf-4a1b-8612-3f8e8bb66793","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":162,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"d30b35cd-e020-4ed3-8fea-8d46df61949a","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":162,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"9fbc1a6f-1ada-484b-ad5e-d1d069fcbf77","block_type":"box","text":"dividends made after December 31 of such taxable year. A Fund may elect to defer recognizing, until the following","page_number":162,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"72d61b2d-c68b-4067-ac33-7618ce87e340","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":162,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"d7d7949d-528d-4a03-9e76-4372fa449781","block_type":"box","text":"losses arising after October 31 and/or December 31 of the current taxable year. This may have the effect of","page_number":162,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"394490da-2004-43dc-ae03-ec284d43606c","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":162,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"eab5ec6e-548d-4d3c-91e0-7d9ca4e048c1","block_type":"box","text":"taxable year.","page_number":162,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"c1204266-ec63-489f-9fbd-aaf9a5379d70","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares. A","page_number":162,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"42542641-0a6f-4f1d-bb8a-e2a94be215f3","block_type":"box","text":"shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the shareholder’s tax","page_number":162,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"be2e0bc4-68a7-47b4-9108-a5407bcc3271","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":162,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"f54c64d0-1f0a-4819-b7cd-9dc34755abef","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":162,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"c1f94aa6-47b6-4519-91fb-6bb40e70fe53","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a Fund, but","page_number":162,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"46b89ede-ddba-45b1-8c20-22dedde16b5c","block_type":"box","text":"on or before January 31 of the following year, then the loss that the shareholder recognizes on the exchange will be","page_number":162,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"445f97b2-308a-454b-a862-069b56ed3409","block_type":"box","text":"reduced (or the gain increased) to the extent any sales charge paid on the exchanged shares reduces any sales","page_number":162,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"b9fc2b65-966a-4415-889f-82b863e23219","block_type":"box","text":"charge the shareholder would have owed upon the purchase of the new shares in the absence of the exchange","page_number":162,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"b47a62cf-4a6d-43cc-93be-89bf7f36d028","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":162,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"bce2d544-7b33-4d3f-abe3-196109e8382e","block_type":"box","text":"A sale, redemption, or exchange of Fund shares may give rise to a gain or loss. In general, any gain or loss","page_number":162,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"441dc663-3d46-4e4d-8635-228af76a9133","block_type":"box","text":"realized upon a taxable disposition of shares of a Fund will be treated as long-term capital gain or loss if such shares","page_number":162,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"a1f92ad7-f3c5-4350-8540-39f6c51a1a05","block_type":"box","text":"have been held for more than 12 months. Otherwise, the gain or loss on the taxable disposition of Fund shares will","page_number":162,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"5af0411d-92cc-4db5-93e3-45572a15baea","block_type":"box","text":"generally be treated as short-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":162,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"48387585-e158-49d8-996f-784c6feb102d","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than short-term capital loss, to the extent of any","page_number":162,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"5be27cea-d14e-4783-a40a-6dc51609ab5e","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":162,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"3346fbe9-20af-442d-b7e5-e1d8f6382553","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":162,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"dd9ad277-22be-43ca-a78c-8160cd692720","block_type":"box","text":"plan described in section 401(a) of the Internal Revenue Code should see the Fund’s Prospectus for a discussion of","page_number":162,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"de9030e8-78dd-4d65-bf9f-3a786f1cf667","block_type":"box","text":"special tax rules that apply to their investments.","page_number":162,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"5c2bb06f-1c2a-426b-a892-ff552f6dbfeb","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially identical shares","page_number":162,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"8e2b9c1f-3423-49cd-bf0c-a1583d5dbbc6","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":162,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"eda4427c-47b8-431e-ba10-3c3df0f841c8","block_type":"box","text":"30 days before and ending 30 days after the date on which the shares are sold or exchanged. In such case, the","page_number":162,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"fc306ab5-8fef-403d-9a8d-f670c2cc7859","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":162,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"130e902d-8aaa-4be8-b137-09a8bd9a398a","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":162,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"b96004f9-0949-4c5e-8685-cda8c89d33a3","block_type":"box","text":"shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after that date. This information","page_number":162,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"9634964b-ef32-42b0-a259-443b3020fa74","block_type":"box","text":"includes the adjusted cost basis of the shares, the gross proceeds from disposition, and whether the gain or loss is","page_number":162,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"e4c27925-5f8d-44d4-b657-b3fc21985921","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":162,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"0107e213-b080-4e8e-a3ab-8c8d7b9f9d8d","block_type":"box","text":"selected by the Fund, unless a shareholder, before the sale or redemption, informs the Fund that it has selected a","page_number":162,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"f9d882f8-8d19-4a01-8fb6-a5b2a95509ac","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":162,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"3de02ec9-79fb-49ae-92d3-7e28d2b03229","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":162,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"6630bdb3-be33-442c-91ee-5e65f8b07af7","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":162,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"5116d57b-d427-4991-9ed4-aca50b8b06d0","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":162,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"e5cd1343-578b-4778-8262-93d062094220","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":162,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"44bd3224-5b11-405a-8985-b521a270e7b3","block_type":"box","text":"redemption of such shares.","page_number":162,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"1f687093-cb8e-4325-80ac-2de6f9a1f9e3","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute portfolio securities in kind for the","page_number":162,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"aff97a09-f392-4f98-b911-850907301c7c","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":162,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"576647ce-3346-4f66-ac6c-b663883e3eca","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":162,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"ab2ad52c-6218-438e-b41c-2c9bdadd9811","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":162,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"87d8bef8-f38e-4dd4-bb37-b3e91c6a36b5","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":162,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"c5a3b0b2-fd1c-4da2-b3eb-5eff4706c8a3","block_type":"box","text":"capital gains as described above, the Funds do not employ a systematic approach to tax management. There is no","page_number":162,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"db5412b9-da1b-4c63-853b-f65b3574f42d","block_type":"box","text":"assurance that a Fund can or will be successful in effecting any redemptions in kind and shareholders should expect","page_number":162,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"7641f543-560b-42b6-9ccd-18c8072c27bc","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":162,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"d719b1cd-dc97-4933-8ee9-5e2a77efaab8","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":162,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"6cb92efd-eb22-42de-854d-be22ffd09179","block_type":"box","text":"agreements. The U.S. federal income tax treatment of a derivative contract may not be as favorable as a direct","page_number":162,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"93498c66-5fcb-4f08-ab05-20b8fb4fe74b","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":162,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"cee0b148-b0ea-48b9-8c99-6d5fe7575786","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":162,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"e0d1e3ed-a077-4262-8843-026284fd84af","block_type":"box","text":"II-131","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"031b1a46-f4b9-47ba-9656-b42ab6b77f71","block_type":"box","text":"NM1026U-5981128-162/232","page_number":162,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"eaf47778-6388-4918-b0ff-cb0207c04ee3","block_type":"box","text":"income rather than capital gains. In addition, section 1256 contracts held by a Fund at the end of each taxable year","page_number":163,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"0c705d32-7be8-447b-96e9-345916edad84","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":163,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"84d5d70c-75e2-410a-8d81-b7533958f5a8","block_type":"box","text":"market,” such that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":163,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"13b4f14b-8411-47bb-be65-ee4c153b05fe","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":163,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"8f7b454d-d1b2-433e-b2d1-bfa5d1c1c8d2","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":163,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"47ac09cb-7652-4adb-95b2-bb406e20b3b6","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":163,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"003a1018-34c5-4761-9ef4-55621e35fb51","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":163,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"217f830e-f2c2-4c85-8e69-208f261ed6e6","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":163,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"9df3cf6b-7aaf-425e-bf49-f6d4475d57bf","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":163,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"ca508ca9-4181-4470-b1b6-7ed980addaa5","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":163,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"4aff9fd2-1dc0-49a3-81e2-fd23b19c964d","block_type":"box","text":"agreements since all the income on a notional principal contract may be ordinary income, whereas 40% of the gain","page_number":163,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"743c55c0-3cba-480a-a9bd-60fdae3b0e63","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":163,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"f28c80b7-0197-4be3-93c8-d135a6e92920","block_type":"box","text":"term capital gain taxed at more favorable rates when distributed to shareholders. The rest is long-term capital gain,","page_number":163,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"f33c16ba-219d-4f44-a0b2-80f252ebd546","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":163,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"8db4f650-227d-4e07-98b1-45b530afe77e","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":163,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"3ef9fb7a-6877-4ea7-bcda-8cba6dbe181a","block_type":"box","text":"finalized, these regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":163,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"25e4d070-e353-47a9-8120-b3be82d1f361","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":163,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"605e219d-74a8-4c14-84a5-de037e6caa3e","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":163,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"b3add413-c02f-4c20-a741-b4b9ce9e01f3","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":163,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"75cda0c5-ee11-4dd5-8629-6ef97bbae285","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":163,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"8de2b759-7dae-46ca-bf48-acd83466784c","block_type":"box","text":"price of the securities over their issue price (“original issue discount”) each year that the securities are held. Since","page_number":163,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"c2cfff7a-814c-4ed4-a510-177bd02fec58","block_type":"box","text":"the original issue discount income earned by a Fund in a taxable year may not be represented by cash income, the","page_number":163,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"be55ac4a-a55f-4a2e-bc19-683bb77667a1","block_type":"box","text":"Fund may have to dispose of securities, which it might otherwise have continued to hold, or borrow to generate cash","page_number":163,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"1128f82a-14e6-402a-9a24-24b68af8d4ac","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":163,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"404c9afa-5200-450a-a4bf-f94970f03408","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":163,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"ce180767-bb20-4967-a087-77947dfb3252","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":163,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"4f4551df-b71b-4d31-8dfc-9ffd2baf16b3","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":163,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"2d3ed01a-defb-476b-bbdc-993c84e64f3b","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":163,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"93425bb2-6863-4fc6-bbf5-b5882c87c3e4","block_type":"box","text":"contracts or forward contracts (or similar instruments) may give rise to ordinary income or loss to the extent such","page_number":163,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"a2bb2257-f22d-4018-b396-a47fd7a2793e","block_type":"box","text":"income or loss results from fluctuations in the value of the foreign currency concerned. Any such net gains could","page_number":163,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"e052ce00-ef87-434a-a341-409ee51e0a27","block_type":"box","text":"require a larger dividend toward the end of the calendar year. Any such net losses will generally reduce and","page_number":163,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"7ae7c332-26f2-4531-bf40-692d5461a90b","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":163,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"f30b4b27-9e1a-4297-99eb-2fc51c44738e","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":163,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"59fdc4fd-4234-4f7e-aef8-270757346c19","block_type":"box","text":"income. Any net ordinary losses so created cannot be carried forward by the Fund to offset income or gains earned","page_number":163,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"982ee57b-95cf-4c99-af58-ee80596b7216","block_type":"box","text":"in subsequent taxable years.","page_number":163,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"7caf5c40-e767-4f37-8a48-42f5413efc40","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":163,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"0de6ec7a-1923-4535-bba1-811c77be2fed","block_type":"box","text":"through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S. withholding tax under","page_number":163,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"ef661171-0c37-40b9-911e-97c9c64a35e8","block_type":"box","text":"existing provisions of the Code applicable to foreign individuals and entities unless a reduced rate of withholding or a","page_number":163,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"20096f42-fca7-44a3-b708-67e270e268b3","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":163,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"aab08522-3dfb-4ba9-97e2-5c37fbd6352a","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":163,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"23652576-30d7-454b-bbec-a59aaeb36898","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":163,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"a36aa61c-3811-41e0-af50-e5069dce7a15","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":163,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"f77ded5b-51d7-4e34-91ea-8212f7d2eecf","block_type":"box","text":"discount and market discount) and paid to shareholders who are nonresident aliens or foreign entities, if and to the","page_number":163,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"853f1db3-c4f3-4dcc-aa65-902f02a74fad","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":163,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"89c83136-793b-4b61-80ad-76b3ecc2f375","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":163,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"06a3d612-8461-4d24-bdf2-b0de12c54aeb","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":163,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"a342e073-acf2-4297-bf8f-462f9c5a5cf3","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":163,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"0476c164-cbdb-4034-a7ae-e3dfd539cc62","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":163,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"59b65608-a053-41de-8e68-6c9659fb81cf","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":163,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"3189c237-b936-4643-a395-1d30fe1c1a6c","block_type":"box","text":"relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS Form W-8BEN-E or substitute","page_number":163,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"1401b1c4-b394-4b7c-882b-7a1250a7b5fb","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":163,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"488b8943-af02-48a3-84c2-89c003da5a99","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":163,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"0a2d9601-e24e-4cd4-83e0-31722cddd0c6","block_type":"box","text":"intermediaries with respect to the application of these rules to their accounts. It is not possible to predict what","page_number":163,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"e6ff8d54-95e5-4b1a-b9f7-725b03776d97","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":163,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"463b4475-0396-4db5-8326-0fbbfdf49fbf","block_type":"box","text":"dividends under these rules.","page_number":163,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"c9c4cced-f8fa-47c8-af57-15b30fa1b011","block_type":"box","text":"II-132","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"905d03d5-f268-444f-8f52-70018c1bb0bd","block_type":"box","text":"NM1026U-5981128-163/232","page_number":163,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8c857e70-6a4d-4313-875d-479f5db5b47d","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":164,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"90076333-02bf-4cff-9a08-1a34a302dffb","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":164,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"0a18ba80-587d-4f10-ab33-7fa55fa99395","block_type":"box","text":"the date of the distributions, to the extent the distributions are attributable to gains from sales or exchanges of U.S.","page_number":164,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"e9d73a2d-0bd1-40c8-9d1b-b823a8aa2df8","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":164,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"5dbab6ce-090c-48cd-a406-c3638c1869b3","block_type":"box","text":"although exceptions may apply if any class of stock of such a corporation is regularly traded on an established","page_number":164,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"6cd90a69-c052-4c36-9f94-0a2549fccbe0","block_type":"box","text":"securities market and the Fund has held no more than 5% of such class of stock at all times during the five-year","page_number":164,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"35ee50e0-e43e-413d-81ae-cc6026125166","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":164,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"e428bd20-8cb5-4bd2-9a6d-d91e7e662b07","block_type":"box","text":"effectively connected to a trade or business within the United States, which is generally subject to tax at the","page_number":164,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"e30f7a39-6eae-411e-9771-fe4a8e5a57d7","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":164,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"6e1fbce9-859e-4110-b056-bd7414303cb8","block_type":"box","text":"than 5% of any class of stock of the Fund at all times during the previous one-year period ending on the date of the","page_number":164,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"ac5e5c1a-9520-499a-9531-f77bda80e7e6","block_type":"box","text":"distributions. Such distributions will be subject to U.S. income and withholding tax and generally will require a foreign","page_number":164,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"d14e8980-1d98-4870-89d1-3a16ac92b87c","block_type":"box","text":"shareholder to file a U.S. federal income tax return. If the foreign shareholder held no more than 5% of any class of","page_number":164,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"ec427159-d723-4b21-999d-76f946cbd37d","block_type":"box","text":"stock of the Fund at all times during the previous one-year period ending on the date of the distributions, the","page_number":164,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"3b6bef47-8907-4bd7-af73-cda3958e5014","block_type":"box","text":"distributions will be taxable as ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition,","page_number":164,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"c783002e-d9e5-4652-8fcb-4301c4fd189a","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":164,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"9545484b-d6ce-4252-a777-958a1fd50062","block_type":"box","text":"income and withholding tax and generally will require the foreign shareholder to file a U.S. federal income tax return,","page_number":164,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"dceff694-bb57-4cf1-959b-3e7aa575dfb2","block_type":"box","text":"although exceptions may apply if more than 50% of the value of the Fund’s shares are held by U.S. shareholders or","page_number":164,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"bdb88099-ee98-4de3-968d-5d68569ac1c8","block_type":"box","text":"the foreign shareholder selling or redeeming the shares has held no more than 5% of any class of stock of the Fund","page_number":164,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"3f064f70-acf7-4719-990f-5140e743e6b0","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":164,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"5da43cc0-37ff-4300-8d3c-9c3e8676635f","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions and other","page_number":164,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"5b451e57-6bd2-4a52-9387-a01cb5c0d252","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":164,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"193e3f16-4d9a-4f42-8e8b-1665d8cf78f0","block_type":"box","text":"corporations”, although exceptions may apply if any class of stock of such a corporation is regularly traded on an","page_number":164,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"00b6e70d-b167-4a54-bea1-f32fe7b4f027","block_type":"box","text":"established securities market and the Fund has held no more than 5% of such class of stock at all times during the","page_number":164,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"ef854279-aaf9-4fbc-9646-8e4b03b4ec2c","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":164,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"0ec84e29-7e11-4b40-8140-dc8c1304964a","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":164,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"badb5101-ac08-45ba-8940-21e76b4c05e7","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":164,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"67d08088-1dd1-4335-b1ba-ee0badf1bf14","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":164,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"a2d63aaf-e67f-42ee-b2bc-180f580e807a","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":164,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"cc22c751-cdcf-4746-ba19-08d1dc538cf4","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":164,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"963f7779-2dbf-4676-9757-866a06b0fecf","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":164,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"05a5e400-fc53-4184-98a4-8eb785cdd6b4","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":164,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"49e618b8-7d6f-41a8-b34e-eace9f09aef0","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":164,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"1c0c32fe-7ef7-4ec5-8d0b-df8980873399","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":164,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"a6a91bbb-1973-4b47-aecb-647969ccf0be","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":164,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"9904ca44-60a5-45a6-b500-accd25488c42","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":164,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"43335c9b-139d-43ba-a9ce-5681faf9db69","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":164,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"6dbc4f2d-6ede-4a8c-96db-dc355b6fb91b","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":164,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"4d108b97-f41e-4fe4-a43f-8243ef8ff85c","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":164,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"ba9e98fc-111c-4c09-9226-3be95ec7dfe2","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":164,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"f3120898-41fd-4410-a52f-c4f9956c1107","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":164,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"66a8a7a0-7223-4906-8fbc-2fa0c4c694f8","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":164,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"caf90b1d-97d0-4f9f-a595-df45657ada64","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":164,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"e75d570f-0e50-4b6e-b0fa-cd67f5c1346d","block_type":"box","text":"is on file with the Fund or who, to the Fund’s knowledge, have furnished an incorrect number. When establishing an","page_number":164,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"e217f454-b7e6-4f0d-8b1d-648883ee1221","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":164,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"e2c41ea7-f6a4-4a73-b0dd-d5e5bee06cd0","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":164,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"7d018618-db29-4382-8f5a-2c901108c052","block_type":"box","text":"may be allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that the","page_number":164,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"1f26746f-fcce-45cb-9b90-106d05f92f2b","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":164,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"d2f98871-e806-4f2e-a3d7-05c3c6a24fe2","block_type":"box","text":"If a shareholder recognizes a loss with respect to a Fund’s shares of at least $2 million in any single taxable","page_number":164,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"b2b271a9-0e35-4f65-a28c-3c83a77bc836","block_type":"box","text":"year or $4 million in any combination of taxable years for an individual shareholder or $10 million in any single","page_number":164,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"43937442-9076-466e-8a04-83d9c28c523f","block_type":"box","text":"taxable year or $20 million in any combination of taxable years for a corporate shareholder in any single taxable year,","page_number":164,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"1ceb3977-04fc-495b-bdb6-94c187b5301c","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":164,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"e9dae693-81af-4ee0-9863-ac037f584883","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":164,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"4d54dd5d-64cf-45e5-a6c3-485eae7eac19","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":164,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"b8d573f9-e9e7-443d-acd9-b407199632e4","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":164,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"4960fbc6-a146-4b01-a257-157d12b75288","block_type":"box","text":"II-133","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3d37cff4-04db-43fa-9271-29eafc37e708","block_type":"box","text":"NM1026U-5981128-164/232","page_number":164,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ee83754d-ba5b-47cd-b02a-5c82790012de","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":165,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"0aae0b94-8ee2-42d7-9f52-a43a54c977f0","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":165,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"acc98c9e-6b06-456b-8354-cc829b0963c4","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":165,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"2c4de967-efd7-4081-b779-33bbb488fd8a","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":165,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"e5762718-5027-49b6-b5a4-f6ddbbaa9fe4","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":165,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"81ce3e3b-9ae1-4c96-9dca-808d736978fb","block_type":"box","text":"be offset by otherwise allowable deductions for tax purposes; (iii) not be eligible for reduced U.S. withholding for non","page_number":165,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"2c8d7c7b-7040-4b64-b49c-066979102046","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":165,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"d5c0f404-1881-434c-9b20-a9819a3b0072","block_type":"box","text":"organizations,” as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":165,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"524b7beb-58ec-438d-9328-4a4b4c68dd82","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":165,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"ce7128e2-6d15-4b55-8e2e-f27c210f3b24","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":165,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"63df7fc9-10a2-4dc7-bdb4-42745f1cf4dc","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":165,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"2ee0246a-84d6-45b8-aa44-0a929981d95f","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":165,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"9cd22b7a-c097-4cf7-81e6-dfa6c26311ec","block_type":"box","text":"investment opportunities.","page_number":165,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"1f3a94e3-cffd-44b3-813e-d87e7be8646e","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and other taxes","page_number":165,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"8661b2d9-28ea-4746-9f2a-b9d5c11107a1","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":165,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"39b568d2-6a19-4f55-92b1-933647690210","block_type":"box","text":"eliminate such taxes. Shareholders of a Fund more than 50% by value of the assets of which at the close of a taxable","page_number":165,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"a02e4f63-466e-4e92-94ec-dc04f9427161","block_type":"box","text":"year are foreign securities may be able to claim U.S. foreign tax credits with respect to such foreign taxes paid by the","page_number":165,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"ee745a19-55a6-456c-9712-d4ecb1d2a173","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":165,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"478427f1-f0eb-4207-b442-018517950ac4","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":165,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"129b8907-a15f-4be1-a025-6eff95f63e4a","block_type":"box","text":"held in a Fund. In addition, a foreign tax credit may be claimed with respect to withholding tax on payments with","page_number":165,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"bc42e98f-fcad-4936-a654-006c21545dcb","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":165,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"fd795e29-8600-4243-ae5d-07480645481a","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it will not be","page_number":165,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"006a9808-6661-4f41-8cd6-9301d7b37a93","block_type":"box","text":"able to “pass through” to shareholders the ability to claim a credit or a deduction for the related foreign taxes paid by","page_number":165,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"ab79e409-fb3c-4709-a538-735fcb5ceb9c","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":165,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"692e717f-c9cc-4500-971b-edbabfddda83","block_type":"box","text":"subject to foreign taxes, it may not be able to pass through to its shareholders the ability to take a foreign tax credit","page_number":165,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"b2c7fb3d-1845-436a-a2c9-eb8d5e3594e3","block_type":"box","text":"for those taxes. If a Fund satisfies the applicable requirements, such Fund will be eligible to file an election with the","page_number":165,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"57196815-a82c-4faa-87b2-d94280a62956","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":165,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"3ac7254e-430c-4ef7-888f-77f1114cd414","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":165,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"942ff9f8-1d03-4891-ab99-25bce86b21c9","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":165,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"14d5175f-2bb0-4a61-86ef-ede0e513e9d2","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":165,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"5bc1d505-c705-43e8-8572-7ffab4c0ecb7","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":165,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"ebec3ef3-a81b-456d-946d-6f914f8552b1","block_type":"box","text":"corporation may be subject to U.S. withholding tax on the income resulting from a Fund’s election described in this","page_number":165,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"14181ce1-5206-41f5-af68-a6530296b5de","block_type":"box","text":"paragraph but may not be able to claim a credit or deduction against such U.S. tax for the foreign taxes treated as","page_number":165,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"efde517f-ef3e-4655-b8fa-6c28a7c8729d","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":165,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"e8b4b397-b58b-4a5a-9936-9044f52aee67","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":165,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"277d57c4-4dc7-41e3-964a-58a0c4d37fe2","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":165,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"ac030bc5-0f62-45ed-a9c3-862fc6ced397","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":165,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"6cf86c0a-cfa3-46c9-af60-b8fcf9532c99","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":165,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"b5831f68-ced0-4269-9e49-36a633f1e02f","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":165,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"da74be98-7ad9-45ba-9fe0-63d69e898649","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":165,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"42860b50-7ff7-433e-a612-6ca4e59aa363","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":165,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"77c5d1ff-e446-4729-8294-52962cbfe0c4","block_type":"box","text":"positions in its portfolio (","page_number":165,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"720d7289-e079-4cfa-b639-5886ac75947c","block_type":"box","text":"i.e.","page_number":165,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"6d9b53bd-c628-4629-ab52-c196fe077e89","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":165,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"89f609e5-c0ff-4444-8e15-a8b5a662d84c","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":165,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"0fdc4c0a-83ff-4c88-9804-56e0a031de22","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":165,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"4f959428-502f-491b-8d5e-2de8b603a2fb","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":165,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"0a3f69f0-f885-47a7-8469-c35f7a2b0f81","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":165,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"15a96418-5452-453d-88d9-6f39b0f4973c","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":165,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"034e38dd-8d24-4e6f-8db5-4d94c5e85398","block_type":"box","text":"any of the Fund’s transactions in foreign currencies and hedging activities, are likely to produce a difference between","page_number":165,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"ceedecd1-3022-49a8-8f63-dada9c2a534f","block_type":"box","text":"its book income and the sum of its taxable income and net tax-exempt income (if any). If such a difference arises,","page_number":165,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"a44bc7c9-85dd-4b75-9a68-18d5fee5c984","block_type":"box","text":"and the Fund’s book income is less than the sum of its taxable income and net tax-exempt income, the Fund could","page_number":165,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"57dab174-9bbd-4411-bca3-b75b48de6042","block_type":"box","text":"be required to make distributions exceeding book income to qualify as a RIC that is accorded special tax treatment","page_number":165,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"0af76187-0f94-4e5d-a7d9-3a8f52061960","block_type":"box","text":"and to avoid an entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":165,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"143cd3a5-f123-4162-a768-840a0fcfe61b","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax-exempt income, the","page_number":165,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"e44f4991-738a-4c46-8074-1de7edc77e1e","block_type":"box","text":"distribution (if any) of such excess generally will be treated as (i) a dividend to the extent of the Fund’s remaining","page_number":165,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"a4f57470-0850-43dc-90ba-3dc36d3bfaf6","block_type":"box","text":"II-134","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"16d6432a-00cd-44e5-a0e5-0faaaf376512","block_type":"box","text":"NM1026U-5981128-165/232","page_number":165,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"70d81e46-ef8f-4839-8450-ed282e17bdb3","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":166,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"0fbd6a8c-0ad5-4362-9094-611895d9b03a","block_type":"box","text":"capital to the extent of the recipient’s basis in its shares, and (iii) thereafter as gain from the sale or exchange of a","page_number":166,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"0872ce88-7f6e-4114-8913-9d35463c1b0c","block_type":"box","text":"capital asset.","page_number":166,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"393ebd43-5b84-4534-8407-41dc42455cef","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s realized losses on sales of shares of underlying funds may be","page_number":166,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"546845af-cb62-4185-9191-e614a2c2d874","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":166,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"d41f437a-cb98-44bc-84e4-b89aea8d144d","block_type":"box","text":"be recognized as ordinary income by the Fund and would not be offset by the Fund’s capital loss carryforwards, if","page_number":166,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"48975882-c4b0-4a6e-abbb-3118d5915d27","block_type":"box","text":"any. Capital loss carryforwards of underlying funds, if any, would not offset net capital gains of the Fund. Each of","page_number":166,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"8c359bc8-91f0-4b0e-8df2-5744d2820977","block_type":"box","text":"these effects is caused by the Fund’s expected investment in the underlying funds and may result in distributions to","page_number":166,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"28055b32-32e9-453a-8b49-fc0527cafef7","block_type":"box","text":"Fund shareholders being of higher magnitudes and less likely to qualify for lower capital gain tax rates than if the","page_number":166,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"00be93ec-1ef2-410f-90dd-46f868cf9f04","block_type":"box","text":"Fund were to invest otherwise.","page_number":166,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"262b3831-97df-400a-9624-1244e646f1a6","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":166,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"f350f2a3-d763-4f51-9655-0242ef2dffaa","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of its net","page_number":166,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"4cef4c96-3f81-4591-b71a-e5876f6c2ad0","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":166,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"f7f658d9-e2cf-4453-b1ae-e98e0b560d82","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":166,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"7cf6dea8-c43c-4abd-8dd7-353bf4b14c9b","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":166,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"38cd5856-cb4f-4817-9b83-b2b710fe5ad6","block_type":"box","text":"to the Fund. (Previously taxed income will not, however, be taxable again when distributed.) If a net loss is realized by","page_number":166,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"6d5d63c6-6315-476c-9b30-745cc8edbd0c","block_type":"box","text":"the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s other income. It is not","page_number":166,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"6eae8ff8-5822-45a1-aba4-b12c421ddbcd","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":166,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"175f699b-5073-43dc-877f-f0ee70aaf74e","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":166,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"1c29192c-eb8a-4238-8fef-f3c0b402a921","block_type":"box","text":"the Fund will generally be treated as owning shares in a passive foreign investment company (“PFIC”) for U.S. federal","page_number":166,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"cad42d0a-73ea-4775-9114-e521f9eccc69","block_type":"box","text":"income tax purposes. A Fund may be subject to U.S. federal income tax, and interest charges (at the rate applicable","page_number":166,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"54936112-7a96-485f-a76e-ea170f0bb6ce","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":166,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"b2982abd-0f5b-4dcb-9788-bb5d4ac5dac4","block_type":"box","text":"a company and on gain from the disposition of the shares of such a company (collectively referred to as “excess","page_number":166,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"9d5fae05-f301-476f-a8aa-4b8a9faa5b2c","block_type":"box","text":"distributions”), even if such excess distributions are paid by the Fund as a dividend to its shareholders. However, a","page_number":166,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"53770b5e-6812-4db9-91dc-bb572705d53e","block_type":"box","text":"Fund may elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":166,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"f819b2f6-fd2c-4185-a439-75abc763767a","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":166,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"fb38228e-c0e3-4a59-a783-b5de3c49ec57","block_type":"box","text":"revoked with consent from the IRS. Under this election, a Fund would recognize as ordinary income any increase in","page_number":166,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"4be9f252-395a-4f59-96cc-7f0d89c43879","block_type":"box","text":"the value of its shares as of the close of the taxable year over their adjusted tax basis and as ordinary loss any","page_number":166,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"20208fa8-b219-4e08-9a03-b994f4358955","block_type":"box","text":"decrease in such value, but only to the extent of previously recognized “mark-to-market” gains. By making the mark","page_number":166,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"b7f6319c-dfb9-4e4f-a79a-9f6f2bb0a646","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":166,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"90a5c125-87bf-4843-8a90-8425f26b74ea","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":166,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"9301645c-7333-486c-b11b-4939d0289623","block_type":"box","text":"PFICs.","page_number":166,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"53b83dc0-287e-4193-a1e4-ecd81f9b5255","block_type":"box","text":"If a Fund were to invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, in lieu","page_number":166,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"9942d437-6591-4ac6-91c2-5012f94a6f06","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":166,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"3f46e32b-29ba-4523-8099-74e4c17063c6","block_type":"box","text":"earnings and net capital gains of the qualified electing fund, even if not distributed to the Fund, and such amounts","page_number":166,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"e1c43880-cb71-4c70-aeee-26173acca659","block_type":"box","text":"would be subject to the 90% and excise tax distribution requirements described above. In order to make this election,","page_number":166,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"23aef000-9d5e-4900-9a27-22f48b75a186","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":166,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"5aa05648-b843-4af1-a6f0-984e154dab7f","block_type":"box","text":"difficult or impossible to obtain.","page_number":166,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"af4fbe6c-7314-4bc5-8552-37018313061d","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":166,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"1debc27f-05a6-4590-99b5-070c17f3f9ce","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":166,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"781faf1f-6267-4572-9ace-47c44d666d45","block_type":"box","text":"(defined as the sum of the excess of post-October foreign currency and PFIC losses over post-October foreign","page_number":166,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"3b909fc2-67d6-44f3-8ac4-4d6fc848123c","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":166,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"778b1d16-94ac-4579-96b4-37910a0bf61f","block_type":"box","text":"the next taxable year in computing its investment company taxable income and net capital gain, which will defer the","page_number":166,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"d55da4e2-f6dd-4524-8b5e-73946a06dadd","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":166,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"a269350d-0497-44f3-ab1d-be0cdb2e68a3","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":166,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"3f8f87a0-b327-46c1-95aa-d430b4e2daa5","block_type":"box","text":"Municipal Funds","page_number":166,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"c30186e3-aab6-44ab-a311-5523e421018e","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in Section 852(b)(5) of the","page_number":166,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"7b62e072-a4f9-4f25-92a9-328b944749d6","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":166,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"5e5e3c03-07c8-4dfa-947f-45921ee69482","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":166,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"6b131ae2-f6bf-41ca-a701-c42e7cb5674a","block_type":"box","text":"Section 103(a) of the Code (relating generally to obligations of a state or local governmental unit), the Fund shall be","page_number":166,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"5b8db2b0-61af-40c6-99f6-df64f3adcebb","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":166,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"f8c5faec-236c-46b5-a7f6-6155adcd0ba9","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":166,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"a917b459-045e-4da7-9c81-c5efbe486c86","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":166,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"6d5f6a6a-7cb0-4479-bb84-018fd8acc77f","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":166,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"f68b074e-e655-401f-9914-c35c2cea0cf0","block_type":"box","text":"II-135","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0f6ae5f7-37c5-4943-8cd8-e17ff3e58c66","block_type":"box","text":"NM1026U-5981128-166/232","page_number":166,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"22a416b6-f8b8-462e-b304-42724fcd4ece","block_type":"box","text":"below) among the Fund’s shareholders according to a method (that it believes is consistent with the Commission rule","page_number":167,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"03c45692-b0a5-4ddf-9843-7b80b9d8c24f","block_type":"box","text":"permitting the issuance and sale of multiple classes of shares) that is based upon the gross income that is allocable","page_number":167,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"ef8d428a-4ba4-4862-8b08-d050910a9a14","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":167,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"4db01d10-41cd-4230-bbc1-05a257a4b661","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":167,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"6781c67d-1f61-4647-9d93-84c9f91be3dc","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":167,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"dc67f27a-45bf-4b5a-92ed-13e43d90b8ef","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":167,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"ae16f93f-109b-4a48-b884-69bf1f7bc84c","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":167,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"61171e75-8c94-4ebf-b783-b1b0a88493bb","block_type":"box","text":"the Fund, will not be deductible by the investor for U.S. federal income tax purposes to the extent attributable to","page_number":167,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"b2db84e6-d0ff-4ca1-9b8c-e517f3417c65","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":167,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"732464d7-3886-4489-9726-be8db880eee1","block_type":"box","text":"interest dividends retain the exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial","page_number":167,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"c992c8cb-cc2d-445c-ab40-3517615c17e7","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":167,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"76582c0a-d73b-4356-b4d8-9a032d9f8e1d","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":167,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"f5b921e8-815a-4210-81e9-0b167e11fcd3","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":167,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"cbb1e8c8-8710-4b02-88e3-1570f5f47393","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":167,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"577982e3-f0ea-457e-866b-10172419e66b","block_type":"box","text":"constitute exempt-interest dividends.","page_number":167,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"3564a419-fc91-4eaa-b0cf-1bd75912c846","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s","page_number":167,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"235a64ae-b1da-44d1-8ada-2e88d15dc447","block_type":"box","text":"shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to such holder (assuming","page_number":167,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"0150314a-16f7-4dd2-b1d0-dc2b113ff87e","block_type":"box","text":"the shares are held as a capital asset). Any loss upon the sale or exchange of Fund shares held for six months or","page_number":167,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"19d86f56-cef1-4469-b33d-e41ea4abadb4","block_type":"box","text":"less will be disallowed to the extent of any exempt-interest dividends received by the shareholder. In addition, any","page_number":167,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"10db4f66-2fa0-424e-944f-fb916df320c0","block_type":"box","text":"such loss that is not disallowed under the rule stated above will be treated as long-term capital loss to the extent of","page_number":167,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"ddff580e-7250-4d94-9414-1813ab362672","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":167,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"db63a16e-d27f-4f83-9614-a55ba8149ddd","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":167,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"033e43cf-822b-4951-9fa6-3524dce5ad4b","block_type":"box","text":"discount will be treated as ordinary income rather than capital gain. This rule may increase the amount of ordinary","page_number":167,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"04bfc355-2a46-4ea9-83a5-d59342137e83","block_type":"box","text":"income dividends received by shareholders.","page_number":167,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"d7a47cb0-15e4-49ed-b69c-1e1db3fc0bd8","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a bond","page_number":167,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"2f212854-bfc8-459c-bebc-9745f28151f5","block_type":"box","text":"acquired in the secondary market at a price below redemption value or adjusted issue price if issued with original","page_number":167,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"73e8daec-0e1d-4e64-883b-fbee54db957e","block_type":"box","text":"issue discount. Absent an election by the Fund to include the market discount in income as it accrues, gain on the","page_number":167,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"a50b7a63-27d4-47c2-a54b-3d5bd8d5bac6","block_type":"box","text":"Fund’s disposition of such an obligation will be treated as ordinary income rather than capital gain to the extent of","page_number":167,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"0508cdc8-260e-4ace-a56f-38a2bfb29643","block_type":"box","text":"the accrued market discount.","page_number":167,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"b4386ee6-eedc-4588-b8f0-53cbf5255c19","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":167,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"b5766514-92e5-409f-b9d3-b22be3aecb2c","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":167,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"2d4bfd7b-93e2-421c-98ae-1935b731aa61","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":167,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"3cce9848-e489-4b2c-a64f-604d7b0ba74c","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":167,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"e2432b3b-f1b5-4ce1-a014-20de0cd75dc8","block_type":"box","text":"e.g.","page_number":167,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"40709f0b-869b-4064-aac8-c7af394c484e","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":167,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"a22fe3c5-b841-41da-95e5-3896684ce0d8","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":167,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"90c18547-4507-4de9-ba30-3a286df69964","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":167,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"542899c0-e322-487a-9fd9-ad7190390bef","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":167,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"7020979b-d29e-4331-982c-959d9145b38f","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":167,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"0deff69d-7d96-435e-92bd-aef5cc30cbb2","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":167,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"e90850bc-d107-43c2-ae4a-6a58cc2ffff1","block_type":"box","text":"the taxation of interest rate swaps are not entirely clear and may require a Fund to treat payments received under","page_number":167,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"8ab5ab9b-1c23-4a50-a7d9-2ece2f06569e","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":167,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"044e5e22-690b-4a58-be77-4cac5c30547d","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":167,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"1faf8b2a-0327-49d5-861b-d2f9aa370231","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":167,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"c71d025a-92d7-41d3-961a-bed3beaf6dc8","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":167,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"a10446be-7246-4801-94fe-288db6559700","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":167,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"7846c6b5-60ad-4713-a2b6-c0c0a8906811","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":167,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"247a92ea-5ca3-46ac-8a57-36eda3ce3d72","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":167,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"bda36128-8d19-4c32-acf6-2cfda4e775c4","block_type":"box","text":"within each applicable state.","page_number":167,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"2d1032d9-18c0-4a28-bb1b-90073a00476c","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":167,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"950322c9-c5b5-4d85-8dae-bdc1f4088a1c","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":167,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"51cd09c7-1147-4018-92d3-4382157774b9","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":167,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"dfffa890-8225-4ae8-8ebb-bf1846cd707d","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":167,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"8eaeac01-1260-4e47-b7c2-b5f516036f47","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":167,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"2025658d-7074-4b72-b150-989c57e66214","block_type":"box","text":"its discretion, the appropriate course of action for the Feeder Fund. One possible course of action would be to","page_number":167,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"b19b1fc5-7b7f-40e1-9507-d201ebd201fd","block_type":"box","text":"II-136","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e775730c-02d4-4cfd-b852-a52139754182","block_type":"box","text":"NM1026U-5981128-167/232","page_number":167,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"89b6b167-10c8-4d57-af0c-03644fd339e0","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":168,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"7ac24226-b80b-4b67-a682-19668cecf343","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":168,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"df0fbe73-692d-4b25-9147-1d769b945e64","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":168,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"d6e18d50-5b52-44f1-99da-24ddc145c987","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":168,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"7e46a4e4-dafe-4be7-9c68-cf43e836fe23","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":168,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"71acbb11-472e-4b4d-b20f-215213dcc2f6","block_type":"box","text":"exempt from state income tax.","page_number":168,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"e253f047-41b4-4a19-9f7f-9fd6530a2d2d","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":168,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"416ae79b-307d-447e-bc45-30903ca6bc24","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":168,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"0403047c-b1f5-4b39-b42c-730b53c91725","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":168,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"be7f91bb-272b-4e10-9af7-f0e1f788055e","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":168,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"77e2a034-6704-4bf1-8836-aeb11f10d30f","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":168,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"5a618bc2-65c0-4cc5-b8dc-6a6e9b5d4d13","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":168,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"0f493cce-96ac-42af-83a0-5ab2e314eff5","block_type":"box","text":"decisions may have a retroactive effect.","page_number":168,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"3fd43bec-a8fd-4e83-becc-94823bdbb53c","block_type":"box","text":"PERFORMANCE DATA","page_number":168,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"f616ac21-a927-4485-8caf-47bfba24e7ce","block_type":"box","text":"From time to time a Fund may include its average annual total return and other total return data, and, if","page_number":168,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"0484f4a3-0d1a-49b0-9edf-45ed1bda2465","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":168,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"287c9c76-d371-4b9c-b646-a36013f4237b","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":168,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"38edae5e-cd95-4722-8dd9-d431654ad569","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":168,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"c996f33d-b0ed-4276-9364-2beded405cea","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":168,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"864ea449-8591-4fe9-bab8-2cc0bfc26a15","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":168,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"4fbe6e17-6ead-41ed-860b-81377f76af19","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":168,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"f9a9f11e-7e6b-4bcf-8613-5ca94896d926","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":168,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"3012082c-bc39-4279-be6d-1ad4d450c3aa","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":168,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"7587aa36-8ea0-4f24-a2c8-21e74488d8b2","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":168,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"eb22475c-ed40-45f7-8fde-6046d03cc506","block_type":"box","text":"expenses, including the maximum sales charge, in the case of front-end load shares, and the CDSC that would be","page_number":168,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"78e8c112-10c6-4a2d-8acf-da6a186eea9f","block_type":"box","text":"applicable to a complete redemption of the investment at the end of the specified period in the case of CDSC shares,","page_number":168,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"63903e0b-fa56-42a2-b132-03b1f4770824","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":168,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"62a27627-cdcc-4780-aff3-8449ceeb2aa9","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":168,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"0d2b5865-7c11-4cc2-8091-d0801858923f","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":168,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"cee5ab28-5292-4fbf-8351-483250b057e1","block_type":"box","text":"value of such investment at the end of each period assuming payment of taxes on dividends received during such","page_number":168,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"452a7deb-7aa6-44e5-b2a6-c4b9b8012d5d","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":168,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"52567917-dd33-45ad-96a8-443527ce1511","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":168,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"12b4600c-b4b1-4b40-b0ff-6b9ee7e7a88b","block_type":"box","text":"including the maximum sales charge, in the case of front-end load shares and the CDSC that would be applicable to","page_number":168,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"95dafdf9-f5f7-48fa-927f-c1809568227c","block_type":"box","text":"a complete redemption of the investment at the end of the specified period in the case of CDSC shares. The taxes","page_number":168,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"f63c7836-7e42-49cd-b7b6-030c34682ab4","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":168,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"fb9f64d3-7060-411c-84ab-12a0df66c4a6","block_type":"box","text":"income tax rates in effect on the reinvestment date for that dividend. The rates used correspond to the tax character","page_number":168,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"21b84aee-ca8a-49aa-8699-efe5cd8c2549","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":168,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"d4c21329-279c-44f4-8db8-2cee4e5c4523","block_type":"box","text":"taxable amount and tax character of each dividend are specified by each Fund on the dividend declaration date, but","page_number":168,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"dba84dd8-acd8-4f32-ad44-3c15305eb27d","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":168,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"11be95fe-c5f6-4831-99d5-36ed26467066","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":168,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"c50de00f-a4e5-4aa5-8173-b329cba2d5aa","block_type":"box","text":"credits, are taken into account according to U.S. federal tax law. The ending value is determined assuming complete","page_number":168,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"80ffe7c3-9105-4fe9-83f1-cab67c546c45","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":168,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"cc7bf8d7-9673-4d3d-bfeb-3ba42d9be14b","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":168,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"67442247-af26-48fb-982a-2ca43cdcedf5","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":168,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"0691e6c8-254a-4287-a555-8da72a3f5859","block_type":"box","text":"invested to the ending value of such investment at the end of each period assuming payment of taxes on dividends","page_number":168,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"ee89339c-e324-43f9-8142-b5ffe4e6c00e","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":168,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"9b6f4ae4-9fa7-4ef8-b806-355bced0edeb","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":168,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"43870faf-9185-4d3b-a428-46d2d000ce96","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":168,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"1b1ed738-2b26-4251-8c10-891e7f1a13fc","block_type":"box","text":"charge in the case of front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":168,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"080dca7c-f835-492f-95f5-58b903c7800b","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes of shares,","page_number":168,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"992b293b-6ebd-472d-9104-534b658b97d0","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":168,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"5b65545c-bb98-4f31-af3a-082b54bc0b5a","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":168,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"cb02c747-4fdd-4e7d-8f88-8380cbe9dd6e","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":168,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"f530f02c-c115-4ed5-9144-54b1b83770ca","block_type":"box","text":"II-137","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"afa2f905-978a-47ae-9602-9975fdf8e9d7","block_type":"box","text":"NM1026U-5981128-168/232","page_number":168,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a730afab-5c61-425b-b099-b8a1f3b92d41","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":169,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"2f1c58bd-5084-421d-a7b9-6612c129713d","block_type":"box","text":"individual income tax rates in effect on the reinvestment and/or the redemption date. The rates used correspond to","page_number":169,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"a7257460-a674-43a7-8653-c92375d8d3c6","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":169,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"959fb84c-aed3-458f-b7dc-8ebd32d488db","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":169,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"a5e127a3-a5b6-4131-a292-6048af47bbf0","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":169,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"756c1839-4adc-47fd-9f1f-092a0c0c3b79","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":169,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"e2c1d790-b254-4e14-9866-4f28c8468867","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":169,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"5c61a945-a0d4-4e53-878f-c8c85bca61fa","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":169,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"82147a79-e648-4ef5-91b6-4230eb465d51","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":169,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"c53a7f6b-ae40-4e04-882b-16047fe4776d","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":169,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"526cb05b-0481-462b-b551-f9a3cdf433f7","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":169,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"bb042097-6217-44a6-b585-2468f503aef6","block_type":"box","text":"will not be included with respect to annual or annualized rates of return calculations. Aside from the impact on the","page_number":169,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"cd368b07-004e-4eb4-af17-892a318b6213","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":169,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"9149d9af-acdc-407b-b870-80335b641e0e","block_type":"box","text":"annualized total return data generally will be lower than average annual total return data since the average rates of","page_number":169,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"5e3a4fb3-057c-41ba-a73d-2914b112ec95","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":169,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"89708010-cb5f-40fc-a45a-24d1b29d518c","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":169,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"63746126-d998-4026-af6a-0abd3bdaabef","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on the yield of","page_number":169,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"afa33a8c-031b-467e-878b-d97aee8b07b5","block_type":"box","text":"each security earned during the period by (b) the average daily number of shares outstanding during the period that","page_number":169,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"a60362de-110a-4e14-a7bc-93d605176a2c","block_type":"box","text":"were entitled to receive dividends multiplied by the maximum offering price per share on the last day of the period.","page_number":169,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"2fa3123c-751f-4228-8a1d-54dd66278611","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":169,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"0661fdbe-d999-43c7-977d-00e376c1ccdd","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":169,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"39e95072-a0bf-452a-a376-f396d1924da1","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":169,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"8bd3835f-64ab-4b4f-9734-f85f4d3789f4","block_type":"box","text":"Fund’s operating expenses and the amount of realized and unrealized net capital gains or losses during the period.","page_number":169,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"0324be86-9773-4386-a4bf-ae3a244a2c57","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":169,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"44afaa60-89d9-42bd-9064-176ae7f4afe5","block_type":"box","text":"less than their original cost.","page_number":169,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"6b0d8735-58db-4c7b-9bca-82b08f6b31b5","block_type":"box","text":"In order to reflect the reduced sales charges in the case of front-end load shares or the waiver of the CDSC in","page_number":169,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"98b2cb72-e9e7-4dbe-94ab-1d6a6ab0be8b","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":169,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"3bc21e33-1182-45f7-a3bc-2d924082b345","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":169,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"7710fb88-0e3a-4ecd-853e-f213458afc65","block_type":"box","text":"take into account the reduced, and not the maximum, sales charge or may take into account the CDSC waiver and,","page_number":169,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"92ddb72f-6682-44d9-b733-988fd623b072","block_type":"box","text":"therefore, may reflect greater total return since, due to the reduced sales charges or the waiver of sales charges, a","page_number":169,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"4cdff986-ec4d-408c-ab9b-ff242018eff9","block_type":"box","text":"lower amount of expenses is deducted.","page_number":169,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"ea38d67a-e6ce-4559-9ce1-a275752ba902","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":169,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"a2775b23-ac79-4fdc-a4a9-25937795cec9","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":169,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"cfb7067d-d3b2-414e-b7f9-2b934135da0b","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":169,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"9f55f1f7-8651-4744-8937-77230f4d8ad9","block_type":"box","text":"Money Magazine, U.S.","page_number":169,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"6459b815-b903-4f63-8295-81b12330ec21","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":169,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"c2976490-79a8-405c-ae90-cff487114dcf","block_type":"box","text":"or other industry publications. When","page_number":169,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"61ded69f-487a-48a5-a5cc-6b9c68a60ba9","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":169,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"c9ef5d19-d51f-43f8-aa50-5bd8aa70faef","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":169,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"cbd5d72f-02aa-4580-82e8-fdce3ce9924a","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":169,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"4f5e5704-6410-4e9a-9c78-3a37e4eb048f","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":169,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"2e1be838-db62-4f2f-b53e-d980d264e63d","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":169,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"60e44972-ab19-4b7f-b0cc-6fef89ad4bd3","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":169,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"ac53f596-e688-4cf3-9bca-6b41fd11ab6e","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":169,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"4e704029-2393-4ac5-9b68-b4d41e06abab","block_type":"box","text":"developed by Fund management.","page_number":169,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"73ea2d96-9b77-4395-8141-d9ce4585917d","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":169,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"e62d7409-eab1-45d8-8a7a-ec54033373c4","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":169,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"db6a413a-9019-4429-9e48-b742695f1fa6","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":169,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"f12df8b2-3703-443c-9f53-21fd7b367aa2","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":169,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"876a0639-2d54-4b1c-9de4-70cad4c2584d","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":169,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"2dba8966-396e-491a-a66e-9f86fdc55b9a","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":169,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"aae327f7-e2c4-4bfa-9bf6-a6ac07482424","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":169,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"fccbe373-0529-48fe-98ad-0fca431509de","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":169,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"9725169e-ce0b-43a8-ae8f-21a6723ed0f8","block_type":"box","text":"II-138","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"45e00d23-3099-4564-8e95-2555cee4712d","block_type":"box","text":"NM1026U-5981128-169/232","page_number":169,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"23d2e6bf-e2ae-4c08-9cb5-dc75909ac2c1","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":170,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"aea3e77f-903e-4415-b486-e03aaebe6105","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the Manager","page_number":170,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"844c88e3-18b0-45b9-8dae-1ce0dbdd57cb","block_type":"box","text":"pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the “Active Fund Proxy Voting","page_number":170,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"2b8986cc-ab71-4eea-a3f6-715262e9520e","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":170,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"dccdcedb-d8b1-4eeb-8a20-5679c9e4a24e","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":170,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"7cd9de87-b578-46c6-946c-b96f58b7505d","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":170,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"6ad1d242-9eee-4829-a5c3-49beaf487415","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":170,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"6dd4d8ef-e093-4db8-b1a2-165fdbb0d103","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":170,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"7bfbf8cc-c8ee-4dc0-a788-a967adaa9ddb","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":170,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"f93512dd-9c77-4631-acd3-3d84efccc6a1","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":170,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"6958b03c-c677-4a9f-9160-2f5a42889178","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":170,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"72eb24ba-b054-4c57-a384-a1bcfc8e59fb","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":170,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"22cf27a5-6c18-49b2-939a-1c4edecc75bb","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":170,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"a809d5cf-47c5-457c-9933-baa40305f9a8","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":170,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"d9fe3e4e-5814-4164-b58d-3bf0ed6fee74","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":170,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"f1a2b687-ce44-489f-b6a8-aca34907a858","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":170,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"323c14ca-5ac5-46b6-9690-cfd45c1cef2f","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy when","page_number":170,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"e9651276-e9c8-45bc-a8c9-1c115e8aab8e","block_type":"box","text":"voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy when voting proxies","page_number":170,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"68009fbf-132e-45d4-9ad8-3ea399cf3f39","block_type":"box","text":"on investments the underlying fund holds. Therefore, the Fund may use the Active Fund Proxy Voting Policy while an","page_number":170,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"9a280839-7bed-4d8a-9dd6-f8c0e344e99f","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":170,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"b2c221a1-dc26-47a0-9f14-76c00d774bb9","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":170,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"36ab30b0-4626-470c-bd61-93dada0cd92a","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":170,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"6ef1ad05-4daf-4c5c-85dc-17c5591bb0db","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":170,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"c1063dd3-ba30-460f-b65e-42a2035e2103","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":170,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"5451254d-3550-48ae-8b0c-f4c6ef2d4e54","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":170,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"377c5b8e-06a8-4b44-972a-711e6884012a","block_type":"box","text":"month period ended June 30 is available without charge, (i) at www.blackrock.com/proxyrecords and (ii) on the","page_number":170,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"b1b7f467-2787-478b-b85f-d7595d4022cd","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":170,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"299d8380-6eba-4d44-b371-32ac00cb539e","block_type":"box","text":"GENERAL INFORMATION","page_number":170,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"db742bb6-a877-4171-90c1-9dadd377f991","block_type":"box","text":"Description of Shares","page_number":170,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"43bb642c-eabb-4a08-a06f-c45ab3f5def1","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for fractional shares","page_number":170,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"4ab1fd96-d47c-484a-ac99-fc2a15825047","block_type":"box","text":"held in the election of Directors and generally on other matters submitted to the vote of shareholders of the Fund.","page_number":170,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"bef1a2c9-47b2-473d-b1d0-7c6662d7b8a8","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":170,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"16dc361f-9fcb-48e3-8779-037ffeee967a","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":170,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"e55b32b4-9c69-4c70-959d-1d0724bd8727","block_type":"box","text":"more than 50% of the shares voting in the election of Directors can, if they choose to do so, elect all the Directors of","page_number":170,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"2f6c067f-bc57-4602-9727-48d4c6af3284","block_type":"box","text":"a Fund, in which event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":170,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"5e370567-e310-40d6-9d3e-fead062b64bc","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment Company Act does","page_number":170,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"c8170e94-960c-419c-9341-1141f92c3f8d","block_type":"box","text":"not require shareholders to act upon any of the following matters: (i) election of Directors; (ii) approval of a","page_number":170,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"c8a1622b-47ec-4b0e-8b65-44464706334f","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":170,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"067303d3-81a0-4708-ac10-f29cfa416b1a","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":170,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"56066473-794c-4a5c-8a0e-8886ee9bbc9d","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":170,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"b2817575-07f2-4cd0-aeff-bb6393a9b4f2","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":170,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"755cf567-7099-46fa-bfdd-5c9cf4872fee","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":170,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"0c883a38-4315-42e1-9a36-76afe5b1c1f1","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":170,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"74233240-05a4-40ff-9f0b-ab1f1eaf2323","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":170,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"46dc1bdf-222a-4517-865c-526a6b449932","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":170,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"57d9b250-0814-4360-8f04-fd506c4c7e76","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":170,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"5f443785-903a-4c7f-97e3-ad6192c844c2","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":170,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"8da790b0-6a84-4b1f-a2a3-eeefb8a5155a","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":170,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"d87a0ab1-3178-4242-835b-65f5847c3484","block_type":"box","text":"with all amendments thereto (the “Declaration of Trust”), is on file in the office of the Secretary of the","page_number":170,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"96a9d8f0-10a1-4830-892c-d2f27ce2d340","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":170,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"756f156e-b3fb-45b5-99e0-be912bd5ea2d","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":170,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"6ab20712-cdc2-49f4-8b16-58653276e950","block_type":"box","text":"II-139","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"02177b29-70ec-4dfa-b4c8-3d5afc137574","block_type":"box","text":"NM1026U-5981128-170/232","page_number":170,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a6c7f980-e73b-4580-91ea-b7a03735347f","block_type":"box","text":"shareholder held personally liable for the obligations of the trust. The Declaration of Trust also provides that a trust","page_number":171,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"7fdc67dd-f9dc-405e-abe4-72d7828e81c7","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":171,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"7ba42284-e13a-416c-a151-485b19c34f09","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":171,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"b5570fe2-82fe-4e2c-bebf-7ceab8cb83d5","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":171,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"91fa3ff5-70fb-488e-8188-f7c2dc82c61b","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":171,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"bdf78fe0-358d-4707-a411-b57d23265c90","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":171,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"7633b4a0-ce1d-4d48-8571-2c410b8112b9","block_type":"box","text":"Additional Information","page_number":171,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"0311f1c0-1c90-4f02-96ff-76cbc5bff957","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":171,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"816dd6b3-becc-41e0-8425-db118d7369f4","block_type":"box","text":"has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the Fund ceases to retain","page_number":171,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"e69536f9-ad53-4c4f-b680-6711698e7539","block_type":"box","text":"BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as investment adviser and (ii) to grant the use of","page_number":171,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"769b7e25-c845-45ac-b213-489464da841c","block_type":"box","text":"such name to any other company.","page_number":171,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"3600b14f-4d37-4d7e-83c8-784ba7c15c51","block_type":"box","text":"II-140","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"40862ecb-6311-494f-ad2e-abcd09e75614","block_type":"box","text":"NM1026U-5981128-171/232","page_number":171,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"db55ce33-04f0-4be0-ad9a-92c24092e0fb","block_type":"box","text":"APPENDIX A","page_number":172,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"037f8657-6cc0-4868-a3c5-11b255c8f112","block_type":"box","text":"Description of Bond Ratings","page_number":172,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"983ec029-da86-4b1f-b0e4-5ee472052f33","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating agency","page_number":172,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"065e8526-d5a0-4c9f-a523-b597eff313a0","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":172,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"8e9a440f-0889-4d22-a030-2e40a9c68d61","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":172,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"cc980985-4d0b-4ec9-8a43-3409ae129e46","block_type":"box","text":"so, and the ratings given to securities at issuance do not necessarily represent ratings which would be given to these","page_number":172,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"82cac0d6-43a9-484f-b2d9-c8d0fe18696a","block_type":"box","text":"securities on a particular subsequent date.","page_number":172,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"39663fe5-8c98-43a5-a077-607b3a6a3bf7","block_type":"box","text":"NRSROs may rate specific investments (","page_number":172,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"a92a2075-7009-4cb9-a828-bf668618d035","block_type":"box","text":"e.g.","page_number":172,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"fa5ec94f-393d-4e1c-902d-591e52add2fa","block_type":"box","text":", bonds), issuers (","page_number":172,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"e5efcd95-817d-4b0a-a7f0-3e74957740e2","block_type":"box","text":"e.g.","page_number":172,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"8802084c-eb48-48b9-8734-61ec143c9daf","block_type":"box","text":", corporations, governments and financial","page_number":172,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"71deb1eb-f7f0-4da6-8322-0d86df1e80da","block_type":"box","text":"institutions) and/or programs (","page_number":172,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"964589c8-d663-4a08-869e-deef96f47a26","block_type":"box","text":"e.g.","page_number":172,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"e7e53f91-5abe-4f84-9875-02497c9fbfef","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":172,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"4f231861-ba4f-4af9-b402-06df1481ca3a","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":172,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"d81ced3f-42a7-4760-b406-cff658a2c606","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":172,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"8118d5de-3667-4bc2-bf02-990d4a4d203b","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where an NRSRO has not rated the","page_number":172,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"4a5066f4-a7cd-4d61-b3f8-402f9f4529b1","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":172,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"48ad4e98-b770-4edd-88e3-20335ad68317","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":172,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"4ccacdaf-b312-4a15-ad90-5e1873f15d07","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":172,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"c9f6e4ab-9948-45b6-beaf-46813943b545","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":172,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"e71bcabe-34da-4449-a842-88b250d68661","block_type":"box","text":"security (","page_number":172,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"0c5ac2ca-24af-4b66-884a-47f2e1e81710","block_type":"box","text":"e.g.","page_number":172,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"6043c37c-be6c-490e-a60e-70ffd7bc3761","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":172,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"6a4d64df-f716-419d-a0ca-1386e947692d","block_type":"box","text":"highest of the multiple ratings.","page_number":172,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"78f6bfb6-498d-4e31-8ca2-ef6a29514c2c","block_type":"box","text":"New issue securities (regardless of type) may not be rated by an NRSRO at the time of their initial offering.","page_number":172,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"acfe6b88-1e11-4baf-b41c-cacdb644edcf","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":172,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"9b05e20f-ed04-4977-b73c-bc98f9e41c66","block_type":"box","text":"determined by the underwriter and/or issuer) or an NRSRO rating for the issuer of the security. If applicable, when","page_number":172,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"8101e21f-a658-47e5-bc6e-798e828a9b90","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by an NRSRO, BlackRock may","page_number":172,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"4adb60f9-3ba1-40f6-be4d-0a09f30fd214","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set forth in the","page_number":172,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"f16c66a3-6819-4f7a-a659-ddfc84974481","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set forth in","page_number":172,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"a8394b5c-1593-4b23-9336-7cfff43f75df","block_type":"box","text":"the preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of","page_number":172,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"069f8d8c-1385-4cba-b90d-fd8596e36cb2","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":172,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"4dddade1-640b-4f1c-99a9-66a8fdb0d766","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings","page_number":172,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"577e69f1-6afb-4f84-b656-b58f2d1f0c42","block_type":"box","text":"eligibility criteria as part of its index methodology, the fund may purchase any security within the index, such security","page_number":172,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"1943832d-d156-4461-97f7-7a8adc3cc4a6","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":172,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"f0734937-c6d1-4c35-b2b7-c2d6ef348024","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":172,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"913183cf-fb38-43b4-907d-8b70b70fa1be","block_type":"box","text":"invest, directly or indirectly, in securities that are not rated by a rating agency or securities with a credit rating that","page_number":172,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"a1797b3d-220d-4ed3-9080-dfab54ab6571","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":172,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"371f6f18-07fe-45e9-9f2b-a21e4b95f0f6","block_type":"box","text":"downgraded but not yet removed from an index, following the removal of a security from an index prior to its sale by","page_number":172,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"1ad53133-fb8a-4407-8a36-82a96834307d","block_type":"box","text":"the fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the fund.","page_number":172,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"2c508bc2-1b03-4409-b98a-feb807e9704f","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":172,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"a2b45df0-ff9f-4c9c-ab7d-e51e710422ce","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":172,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"001cf041-6991-456a-b0f3-62d0bb48c63b","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":172,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"896a3aa0-af26-4ad2-9125-a13750c03c59","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":172,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"455d0975-f21f-460c-b702-b55a98cf84a3","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the effect of","page_number":172,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"c228b613-af0b-44c1-9be6-3daaa3bfae9d","block_type":"box","text":"recent developments on the issuer’s ability to make interest and principal payments or on the likelihood of default.","page_number":172,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"932a6dbe-5b73-4675-ac99-990efa6d0cfc","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global Ratings and","page_number":172,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"c333b1c5-3e28-46b6-ac94-2b427f6dc6a7","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":172,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"23017292-c2df-4994-9b4e-6d86e1955e6b","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":172,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"b00971fc-a3a7-44de-8bc4-531fc63078c0","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":172,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"be33e72c-2e4c-4416-9b1f-128f32dcf0aa","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":172,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"db9c3bc4-98fa-4e20-8941-dde41207404f","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking","page_number":172,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"0538e25e-26dd-4cbf-8336-ee1a0c9952bc","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":172,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"4aba6e99-3161-4182-9606-84dd5f6bfd58","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":172,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"76899162-d403-45a0-b061-95a4abd8f9cc","block_type":"box","text":"risk that an entity may not meet its contractual financial obligations as they come due and any estimated financial","page_number":172,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"f07637ab-95d5-4ff2-af93-0bf2ed4ddfd3","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":172,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"561938bc-ac99-4fb7-b8af-a12a2166ac64","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":172,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"d5f1b86b-1704-4969-8c5f-8de21d62f995","block_type":"box","text":"upon standard sources of variation (","page_number":172,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"deafa291-bb75-4cb5-9b22-b41d168d56fc","block_type":"box","text":"e.g.","page_number":172,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"9f891ffb-aeca-45c0-ac19-118378459210","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":172,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"fda7ba29-3327-4390-9389-6bfc54cc9030","block_type":"box","text":"A-1","page_number":172,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"02e0b2ab-20cd-45a6-8a14-2273aac1cca6","block_type":"box","text":"NM1026U-5981128-172/232","page_number":172,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b0d993a9-3161-4541-bc14-9e2074755fb3","block_type":"box","text":"the issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do","page_number":173,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"b6ddd2d1-fcc6-4c24-bb7e-d4005141fa6b","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":173,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"27957196-5b67-45a8-a6f8-943562277847","block_type":"box","text":"e.g.","page_number":173,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"5cc5e061-a433-4f57-94ec-df64ad284f76","block_type":"box","text":", equity indexed), absent","page_number":173,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"a42070dd-9389-458f-adfc-40a64d27648b","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":173,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"1e0b4d7a-4cd5-44c4-9826-bc522928732e","block_type":"box","text":"assigned to issuers or obligations with an original maturity of eleven months or more and reflect both on the","page_number":173,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"83ae8522-8bc8-461a-83fe-5651b5f8e1a1","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":173,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"50b99d76-9172-419e-866c-ff1b983fbcdd","block_type":"box","text":"the event of default or impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen","page_number":173,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"3b169085-3536-4501-8515-9ff609502853","block_type":"box","text":"months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and","page_number":173,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"d7d51600-1c79-46aa-ab8f-76fdad282032","block_type":"box","text":"the expected financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":173,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"cb3e8ac7-8df3-4193-8429-30097a7e0bc8","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly","page_number":173,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"73486323-7656-427a-b176-64cc011c854e","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":173,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"e5fb5a8d-e9e6-4a51-b10f-e265d9a7ec19","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":173,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"d49a6053-7ce5-4f94-a70d-0ec12f95ea52","block_type":"box","text":"i.e.","page_number":173,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"b86d5ae6-14b6-4073-b7d0-56ac2204ee09","block_type":"box","text":", ratings on nonfinancial","page_number":173,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"ba2c3573-0a0d-4a62-8e28-71dca10e48f9","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to all structured","page_number":173,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"daf86e8b-b0b4-4e2e-bb11-aed525ec7abc","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":173,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"30635284-b0f8-46e2-87e6-c218f43d414f","block_type":"box","text":"and fundamental ratings at the same letter grade level will behave the same. The (sf) indicator for structured finance","page_number":173,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"07033f13-78cc-4fd5-b26a-66c1cf32f97f","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":173,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"7a33d373-e82b-49ed-bda6-a7ea9453c779","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":173,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"3c4a7046-e78e-4f98-bce1-9221f1aaa725","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":173,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"1e7496b2-0fff-4ff1-ba0c-23747b35a469","block_type":"box","text":"of time.","page_number":173,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"8c3bb790-ceee-4042-b991-2b7396b514ed","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":173,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"8c834cc5-d0b3-42f3-9f40-edbe5eb4f5a8","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit","page_number":173,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"97b540d2-8a03-42a9-a0e8-82a474a6f66f","block_type":"box","text":"risk.","page_number":173,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"0da50571-53e2-4678-805c-e183cac0dce6","block_type":"box","text":"Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.","page_number":173,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"70ead050-5f2e-4095-a2fd-3b862d0b80cc","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":173,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"142fd6cb-2214-40f4-829d-e6d3bb35042f","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":173,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"eca3509f-e266-413a-ab56-87bc6587ec05","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":173,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"f5c70523-71dd-4f58-9d16-c5b2f82225e0","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":173,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"2daaa7d5-7f3e-47bc-b71c-44db29ea92b7","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":173,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"3293be8c-2f0c-4abf-9359-c6bde0d4a092","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":173,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"b513e735-fdd0-44b9-9678-21917964bb68","block_type":"box","text":"credit risk.","page_number":173,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"95c26c1c-394f-4201-9bab-745e64739589","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":173,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"497d1c54-a1ae-49f0-9347-3de2fbe6ade4","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":173,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"b01e2627-aef5-48f5-bf63-4dd549e00ec4","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":173,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"f69b80c8-501f-419e-a8a3-ed594659d525","block_type":"box","text":"of principal or interest.","page_number":173,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"fbb140ba-c2d9-460e-85ee-d63dc7676ca8","block_type":"box","text":"Note:","page_number":173,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"7a650cbf-e397-4e38-a33d-bb6cec0e9400","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":173,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"07decfa0-938d-4bb0-ad1c-0ded6f8ce482","block_type":"box","text":"Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2","page_number":173,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"7296b627-7fbd-4940-aa65-b00434254c90","block_type":"box","text":"indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.","page_number":173,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"883e6333-880c-43ea-8cf4-3c7437c0ba71","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":173,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"21d5beab-bef2-4ac8-9685-ea29cc580074","block_type":"box","text":"companies, and securities firms.","page_number":173,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"ecd70ee2-2f94-4066-ad51-750a276e019d","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":173,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"49a715de-26ab-4588-98de-0695bbdf272f","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":173,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"4093017c-d6f3-46f2-8e14-2d9be9d1def7","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":173,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"1cdf93ab-00cf-4807-81c6-fb604dc19f68","block_type":"box","text":"long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with","page_number":173,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"6cc3fe72-ed23-437b-a47e-bc241d23698c","block_type":"box","text":"that security.","page_number":173,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"5082a69a-02d4-43ac-a8c7-774f5012091f","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":173,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"9e78f3db-5f0f-49fc-bf72-cea72e808af9","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":173,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"a1de9c1e-b73d-4900-a5f1-7e84833988c5","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":173,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"2db66943-f8ee-4dd9-b86f-d5a7053fa736","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":173,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"42bbfbf5-6362-435e-90f1-38124c60dfac","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":173,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"01e3cca3-49d8-4418-a688-6634506ce627","block_type":"box","text":"categories.","page_number":173,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"8aeadf27-e41b-457b-b310-2450a0730925","block_type":"box","text":"A-2","page_number":173,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"f9216431-92a7-401f-9721-148a21b8b708","block_type":"box","text":"NM1026U-5981128-173/232","page_number":173,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"83562438-c6a8-4215-8f40-4fa1c7f5ef37","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":174,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"c6d3b2af-6d59-4725-b23d-2f0f182b45c9","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":174,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"f97e98c0-d267-4283-8228-711af0668def","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":174,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"26fe4da7-34fe-4554-adf9-be7abe3e607a","block_type":"box","text":"an issuer’s self-liquidity.","page_number":174,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"bf8a3703-4ba4-42f7-8cea-d1913e877fdb","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":174,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"86f879c6-8d75-4f5f-921f-73c5889ae669","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":174,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"e2d93227-8d8f-4682-861e-c3d1e47fed12","block_type":"box","text":"MIG Ratings","page_number":174,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"f57c7c15-e90d-41c5-a598-51458cf9e347","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":174,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"3dd71020-7931-4a6f-8555-0aabbc6fe397","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":174,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"3b09d73c-0458-41a3-aa50-b48299534383","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":174,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"884bc72d-fecc-40e8-b48b-938bf6b3d4b2","block_type":"box","text":"MIG Scale","page_number":174,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"5775150c-6b40-4778-9773-3feb015d5685","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":174,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"43c7c0ca-1747-430b-9ab4-03168594bd51","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":174,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"017ace6d-b3dd-4518-aedc-533e1e66bb2e","block_type":"box","text":"refinancing.","page_number":174,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"41c50c8f-12be-4219-93b1-969351b3a1ae","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":174,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"646a2ba7-1762-4710-90f2-bddf68a97724","block_type":"box","text":"large as in the preceding group.","page_number":174,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"e40c4176-f0ce-46ea-ab2f-1c4c318718f3","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":174,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"fdf1856a-6bd1-47a5-9622-a1b230ca5533","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":174,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"e3d121ce-2d82-4dcd-9193-c61cff9e5f96","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":174,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"f238c024-e430-405d-a905-db701853a650","block_type":"box","text":"lack sufficient margins of protection.","page_number":174,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"6eaf4a08-9bdb-4aff-8153-6e2620b167a2","block_type":"box","text":"VMIG Ratings","page_number":174,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"254e8188-4e30-438d-88b6-a61027f9945a","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":174,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"0eb40a55-398c-4165-b78c-565b0d65ce8a","block_type":"box","text":"are a long-term rating and a short-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":174,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"25c0be7b-4069-40df-acad-1fef6a3354b9","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":174,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"fd022983-554a-4026-8eb8-1ce0214763b0","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":174,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"5770c65f-b390-47f7-b749-77aae2153b3a","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":174,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"daf5bf7b-91c0-470e-a34c-180ddeb89c20","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":174,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"c390f686-a264-4263-abb9-69a3e0f371b9","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of","page_number":174,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"17c729cd-cacc-4bdc-92b9-21f2f8c70493","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":174,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"8210534b-3dcf-4f35-99b8-be7cba0b575a","block_type":"box","text":"reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":174,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"471bef6c-e741-49f1-b4c1-4673eea1b602","block_type":"box","text":"grade.","page_number":174,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"4b65bea3-e38b-4522-8de6-1f2f8fdea6de","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":174,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"c9ba9cd3-34ac-4425-b21e-2ce2e529493e","block_type":"box","text":"less than every three years. If the frequency of the demand feature is less than three years but the purchase price is","page_number":174,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"fd6bbcff-388c-4670-82a7-9dd946c38bf0","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":174,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"e553a4c6-58f5-4b3b-af5a-14bcede7b16b","block_type":"box","text":"Industrial development bonds in the US where the obligor is a corporate may carry a VMIG rating that reflects","page_number":174,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"0de0f200-04be-4c54-ae94-7d6855e49bf2","block_type":"box","text":"Moody’s view of the relative likelihood of default and loss. In these cases, liquidity assessment is based on the","page_number":174,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"ea728522-c38a-496f-86eb-867da9540493","block_type":"box","text":"liquidity of the corporate obligor.","page_number":174,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"4fac280e-7275-4fdf-b296-027b6a014893","block_type":"box","text":"VMIG Scale","page_number":174,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"db49ac63-dbbe-41c4-a36a-91bc56df2e8a","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":174,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"5f4d5dee-f339-4155-882e-81beaf80d9ef","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":174,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"19ceecc5-7d83-4ba9-845a-607f2afd9cc7","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":174,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"510ef2cc-740b-4323-9449-c2f2056466d3","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":174,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"47b88b53-9a71-4487-8450-19dc625e9767","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":174,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"21576996-0418-4343-b41b-b442714a0737","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":174,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"29ead65b-3326-4e02-9a75-bce47c3c6bca","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":174,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"84e1e016-89c4-46b6-a7fd-a2af32db99f5","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":174,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"d2170b0c-7d22-4f32-990e-6fbf8b0ccfb3","block_type":"box","text":"may lack the structural or legal protections.","page_number":174,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"3059aa62-0739-4188-be56-c5a5b2e4104b","block_type":"box","text":"A-3","page_number":174,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"99d39a9a-52c6-42c6-a9b5-fc5e02f906c8","block_type":"box","text":"NM1026U-5981128-174/232","page_number":174,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d064eaf1-3d98-43a2-a15c-a9a973c19c42","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":175,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"8e82df6f-da7c-4f4f-ae0d-a75dd7ca23e7","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":175,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"bff92235-eea2-4803-965c-c2b1ccdc7fe8","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":175,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"2ce15ed1-22dc-4900-9684-28fcc44062f7","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":175,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"25bbc40b-da28-45ef-93cb-c0c14533c810","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":175,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"fcfd4093-0d50-4843-be02-97788a58f918","block_type":"box","text":"which the obligation is denominated. The opinion reflects S&P’s view of the obligor’s capacity and willingness to meet","page_number":175,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"b5ad2743-89d1-4d0e-b5f4-c492129049eb","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":175,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"22976597-526a-4319-8bad-19c7dd54d673","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":175,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"9d467ef2-9003-4545-bab5-3f07ef7812e1","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":175,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"c9d6d306-cb1b-4bb5-a31f-0d7b0c3b9705","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":175,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"011df630-85be-4955-bd8e-0c2d6f352086","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":175,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"34d900fd-73cd-485a-97f2-cd7c674d148c","block_type":"box","text":"put features on long-term obligations. S&P would typically assign a long-term issue credit rating to an obligation with","page_number":175,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"a967cf50-a0cb-4c95-aa9a-15420bddf7c8","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":175,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"390ca351-592d-4295-8490-f36ea1f9b7ec","block_type":"box","text":"from these guidelines based on market practices.","page_number":175,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"7818dfa0-796e-489a-89a2-75e75f8dd0ef","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":175,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"5f06f497-38c2-45c8-8d13-d2f67f48cda8","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"47beefe0-f1d1-45b7-8da7-db169ad26032","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":175,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"59c6d287-bff6-4aa2-b72e-44f1626ac664","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":175,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"313b4696-0552-439d-b99f-1fd297d8154c","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"953a5ad6-f7e9-4903-b6ec-c8e3da313788","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":175,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"9c5d0c93-9a8a-4a76-89a5-68c9e0ece767","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"3fe5d291-c6ba-43a7-92ec-35097b88134c","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":175,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"562aac4a-78f3-42c1-930d-4e646a796f99","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":175,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"c89ac612-c2c1-4177-be37-a3f64e08d556","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":175,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"2e0c7dc6-bc6e-44ad-93d4-2348999ca4c4","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":175,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"36e2604b-375f-4d4d-8b40-8411b61ab90f","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":175,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"3ecffff4-f1e9-4b64-8f49-b5640cd27f2d","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":175,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"bdb8a34a-90a6-4ac5-8318-18740d6e2f67","block_type":"box","text":"obligations.)","page_number":175,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"0404d896-f1d2-4687-b153-d02eae264db8","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":175,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"dfb48963-7bda-489b-aa56-c85c1125955c","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to meet its","page_number":175,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"744a1707-c8ba-4f12-b584-90c3622d5c90","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":175,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"f11c9299-2b92-4bd2-8f31-b7e2f94b436c","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":175,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"a6ad719a-ce1e-459f-8497-f916e6474477","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":175,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"4c90a8ed-28a3-484a-8b6d-358876bf19bd","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":175,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"4c475f56-2eea-4be0-be68-cd0df693b99a","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":175,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"0967a7c6-9caf-4207-8bc2-1964662565f8","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":175,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"984c59e2-4820-4eb5-8af9-22e180de0a4b","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":175,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"6a6d1b25-9f9a-4d51-89d7-0ba3fffded9d","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":175,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"8c9c168f-a04c-429a-b3ca-f9b2a28efd00","block_type":"box","text":"financial commitments on the obligation.","page_number":175,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"beab98d9-135f-4fa9-be09-094c676bf602","block_type":"box","text":"BB,","page_number":175,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"6733d688-576c-49da-8d69-2a1fa920dd81","block_type":"box","text":"B,","page_number":175,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"8cbd4ebd-b119-4707-90ee-cfa238132c70","block_type":"box","text":"CCC,","page_number":175,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"c88bc260-c969-4f28-972d-193c774c4aef","block_type":"box","text":"CC,","page_number":175,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"a673f4c8-d59a-4c49-8c78-ff8584d1cac8","block_type":"box","text":"and C","page_number":175,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"009cc8d4-b05a-42ab-9f49-137fd3afe6fb","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":175,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"8b3124fc-c19d-4de1-9e86-58cd75768f57","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":175,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"4a8c96dc-ea88-4c9c-9d38-9165f8b58709","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":175,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"62f1790d-3569-491f-8d57-5845f26abe18","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":175,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"25697855-7dce-412c-8a5a-8ff4883ad18b","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":175,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"c83663c7-f8a8-4728-8f4a-73b28fb01cf5","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":175,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"40acea9c-a06f-4c57-806c-b03832b7f575","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":175,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"10c33778-9c26-48c6-bf3e-5025d84c6a02","block_type":"box","text":"on the obligation.","page_number":175,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"a542bb55-40f9-4f64-8ae1-2fcb67b3ab88","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":175,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"a57f9702-f46a-4b6a-a14f-f4393f610898","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":175,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"3a2721cb-5f85-468f-a4bc-5163d0a36148","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":175,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"9822de5e-9e1e-4945-8ba3-babf2f806cd1","block_type":"box","text":"financial commitments on the obligation.","page_number":175,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"a4101eb8-b4a0-44d7-bed6-4c57d6c497b7","block_type":"box","text":"A-4","page_number":175,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"922e2f20-93b9-4467-9b94-bae6586ea79f","block_type":"box","text":"NM1026U-5981128-175/232","page_number":175,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bbdfc32e-ab75-4ac9-8867-0b4518cbbb87","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":176,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"b8d6761f-bd16-4bca-876b-f86aaf663fd3","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":176,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"6790a7b4-1621-4949-af45-dcd5582a5db2","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":176,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"4295c270-0121-4cdc-a708-5ce4a80779c2","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":176,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"14cb15fa-67a2-4d9a-ae34-a09469cbb994","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":176,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"cde44572-97b1-4f6b-b0b6-91c5d54beb01","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":176,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"a0bf0aa4-715c-448c-b728-3eb0f370579a","block_type":"box","text":"anticipated time to default.","page_number":176,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"83ccba70-c97f-46ca-927d-7bf63f1412c4","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":176,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"6843a7d2-5109-4356-b58f-c8d44448c1dc","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":176,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"afc60204-731a-4974-ac2a-0a68913b2c39","block_type":"box","text":"higher.","page_number":176,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"c617e191-bc71-4035-b7ca-4317e8744b75","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid capital","page_number":176,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"b7ead4c7-f546-4929-a80c-0da0af1108d2","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":176,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"1f3f78a0-a7db-4f17-b565-42b480d733fc","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":176,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"7d48d198-37d9-466a-a155-3b83375c56a8","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":176,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"92a6a661-8b33-4fbe-a9e0-427abc844f66","block_type":"box","text":"days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of similar","page_number":176,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"1d2fe17a-e563-498a-8556-4266d3665e97","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":176,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"0fa55c78-1f97-453e-9dd4-4e2b8b3268c0","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":176,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"55aec51e-7284-49fb-91e2-52721a8e9139","block_type":"box","text":"restructuring.","page_number":176,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"5eb8768a-7da2-4a0c-a47d-5ed3a26258a2","block_type":"box","text":"*Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative","page_number":176,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"120f0976-32ad-4c48-aae4-eb65f02ba31e","block_type":"box","text":"standing within the rating categories.","page_number":176,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"735a8075-9d54-49c2-b07a-2f512983da48","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":176,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"a078eb1b-5e98-4d6a-a3a0-1f2e6672b154","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":176,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"4477c1cd-2c79-4171-b38d-be63257935df","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":176,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"20652494-fc0c-4153-bf14-9a21fe78e3c1","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":176,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"2b26ae58-5e59-4881-803b-d8326dbfd63d","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":176,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"fcabd859-4bcc-436d-bf4b-db76ea32417b","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":176,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"36cf222f-b446-4520-8047-3c68db333e64","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":176,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"81f30545-213d-4aad-aad5-ab4184994f6d","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":176,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"26223c77-59db-420d-81d9-106edfb0927a","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":176,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"8e21c649-96d8-4ba5-92a6-fac8e7fa6af3","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":176,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"ad76e37a-301f-4fe1-8226-f0e9d3ae3df4","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":176,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"e314da92-3a98-47f3-b568-3007c7531b1f","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":176,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"86326625-2f3b-4f03-835e-f0297683ed28","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":176,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"53e7a399-9aae-49ba-86c3-2edbd78e0b77","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":176,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"f4032760-a140-49de-a35d-5a7736272e35","block_type":"box","text":"financial commitments.","page_number":176,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"01dc5b5a-c999-4377-8326-99ee4068fe6d","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":176,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"a65a6dc3-f1ba-4a1b-8930-8b42eb1c7740","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":176,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"59cebc82-0744-4f02-b3b6-c1d433c055c8","block_type":"box","text":"commitments on the obligation.","page_number":176,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"b5cf3fac-5378-4d34-8264-a14ade8a7d11","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":176,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"c406ee3d-7f20-47d2-a813-5db773ef4896","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":176,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"4dbd6226-aa33-4f4f-8411-85f4d182b314","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":176,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"cbbd09ee-17aa-4c48-8a91-96821bb990d1","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":176,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"9dfaa009-50a0-44c3-87fa-52a7c2b9d6d6","block_type":"box","text":"business days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking","page_number":176,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"bf07af01-a23e-4ac3-bf97-97e108948e8b","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":176,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"b59ff047-6d4d-4e54-92b8-e8564175b933","block_type":"box","text":"automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed","page_number":176,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"b5144a8a-7574-4789-b464-c49b9f818ed9","block_type":"box","text":"debt restructuring.","page_number":176,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"b495776c-e082-467d-ad00-0535fd00d49c","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":176,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"71b7615c-8782-4b5c-a59f-55f477cf51a3","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access risks","page_number":176,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"25ef09c8-f01c-4a4e-af5a-120d523d9a04","block_type":"box","text":"unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with an original maturity","page_number":176,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"dc861a0c-9c6d-4066-b9a7-c7eea047d5e5","block_type":"box","text":"of more than three years will most likely receive a long-term debt rating. In determining which type of rating, if any, to","page_number":176,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"23347b30-6bda-4aa2-a099-6fce0d8c94d3","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":176,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"8662a2df-95db-4799-a003-2445f1a630d2","block_type":"box","text":"A-5","page_number":176,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"ba81f397-8268-4951-92d7-0f514505b9cb","block_type":"box","text":"NM1026U-5981128-176/232","page_number":176,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8892f1f7-340b-4f23-9d88-264bd6573cbc","block_type":"box","text":"•","page_number":177,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"18cdcd6f-23b6-45a8-898c-f9a2088b8b63","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":177,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"3d4a8042-9598-409a-809d-29725c1d3645","block_type":"box","text":"as a note; and","page_number":177,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"7e53d7ad-f10e-4230-be3b-739ad35d4b74","block_type":"box","text":"•","page_number":177,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"050ea8ee-cd8f-4dcb-b3de-a1036a04a544","block_type":"box","text":"Source of payment—the more dependent the issue is on the market for its refinancing, the more likely it will be","page_number":177,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"1d30e71c-2419-48ca-a700-850915663e0f","block_type":"box","text":"treated as a note.","page_number":177,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"e4fd19f2-5f6c-42fd-8da8-9f704c840945","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":177,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"8af779b6-483b-4e27-a45d-7dc29d3e1c17","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":177,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"a32761ec-452c-4449-9999-1ae7998e87d2","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":177,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"1e276bd2-3153-4713-a00a-21e72a6c9fa1","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":177,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"b248417d-3070-4956-b080-162318e13a8d","block_type":"box","text":"economic changes over the term of the notes.","page_number":177,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"c7aaf816-a347-4bb8-8d7d-00a5ea85dee1","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":177,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"cda242a1-7d10-4544-8aab-4307972b5d3a","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":177,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"53afc9d3-6771-4be2-8796-c25b707f1477","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":177,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"648ba0a3-cdc1-4675-9784-d2f766a0ed87","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":177,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"064b0799-4e5e-4b9f-9237-3d8ec5a1c595","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":177,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"193b3649-6b7c-4e94-928a-fec58f76fc47","block_type":"box","text":"Fitch publishes credit ratings that are forward-looking opinions on the relative ability of an entity or obligation to","page_number":177,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"5a697ebe-1e83-43a4-a188-6c8d08fda0df","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":177,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"557c8ed5-0947-4a1c-9e9c-b9f6b8f2b45a","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":177,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"8da38392-715a-416d-8edd-e06309da736c","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":177,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"ff466d0b-3e50-4910-919b-c56a9992952f","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":177,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"2aad4a10-defe-4e8c-a3e1-4d89aced64f3","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":177,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"4586463e-cf4e-4dd1-9d66-593881d1316d","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":177,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"7de9bc75-ad50-4c18-9ae8-70ed21360141","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet financial","page_number":177,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"691346b7-5a47-46b2-b560-32cbcc5d7cf4","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":177,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"46b6d9ee-905f-428b-92ea-e3730bf268f0","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":177,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"c68739c2-71f6-4725-b951-2c5d2c0d4e46","block_type":"box","text":"Credit ratings are used by investors as indications of the likelihood of receiving the money owed to them in","page_number":177,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"d2cd67e1-4abb-48ca-af03-48a5ae2e6d8a","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":177,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"3c82ff43-695b-4923-ac7e-379ec5224fd8","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":177,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"e05e222a-8eaa-4460-8f54-7623262b994c","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":177,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"e9d76461-608c-47e0-8843-f48b9a4defc2","block_type":"box","text":"receivables or other financial assets.","page_number":177,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"61ae7c71-8d84-42f2-955f-b8ca60239ff8","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":177,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"f52a3253-6375-43a2-be61-7daadce9a49b","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":177,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"cb1cfab0-85d0-4f16-9e45-9b2f2cad3e81","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":177,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"5f8bed3d-90ee-41b9-b5d4-e1e8e8daa1ad","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":177,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"7249dbbf-2ac0-4d2d-b290-0524fb01fad1","block_type":"box","text":"while ratings in the speculative categories either signal a higher level of credit risk or that a default has already","page_number":177,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"0d6af3c7-9dab-45ea-af44-54b8d02ae74c","block_type":"box","text":"occurred.","page_number":177,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"e6e69cc7-4892-498f-9535-8e1b1e72dff9","block_type":"box","text":"Fitch may also include issues relating to a rated issuer that are not and have not been rated on its web page.","page_number":177,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"b9dc921e-838d-4aca-af09-33b3c3c35f14","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":177,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"21abece6-a351-48da-b678-ccb7371eaa68","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and are","page_number":177,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"b37099a5-ca77-4808-98d0-3ce09b389793","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":177,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"e582a339-a840-4826-b8e4-2d592cdca295","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":177,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"6b2b2b4c-7869-42f3-9aca-bc276211cf78","block_type":"box","text":"the risk of a market value loss on a rated security due to changes in interest rates, liquidity and other market","page_number":177,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"53b59567-9c75-4571-b373-c3f81f9bc7a3","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":177,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"2b503580-bb2a-45cb-a049-c4c6c93833f1","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":177,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"fe954858-be25-48da-902d-f7eb2a433588","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other conditionality of","page_number":177,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"1a4f396f-ac42-40ee-a5c5-9f9fda554c2d","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":177,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"2cf39a49-0e31-498c-830a-2ca98c165260","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":177,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"dfc3ba7d-7c44-4862-90ef-ed36f979f139","block_type":"box","text":"to the likelihood of non-payment or default in accordance with the terms of that instrument’s documentation. In","page_number":177,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"375c24f1-2b23-463a-a775-501f98ceaad6","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":177,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"4d0a4e02-736f-4bca-a3c5-488298f4e835","block_type":"box","text":"i.e.","page_number":177,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"03b91bd5-f8c8-4373-bb5a-27241a8c22f9","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":177,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"a68b2715-9b1b-4823-a840-76a2a51a6830","block_type":"box","text":"the obligation’s documentation).","page_number":177,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"159fe184-353a-4cbc-933a-b7958580c703","block_type":"box","text":"A-6","page_number":177,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"c57059cf-95d2-47e8-a5d3-d45476c08641","block_type":"box","text":"NM1026U-5981128-177/232","page_number":177,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9685a072-642c-433e-bd59-8ddc44868e38","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":178,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"28da4e6f-fdee-44fc-96e2-2213e97f49ad","block_type":"box","text":"issuance programs or for private ratings. In this case the rating is not published, but only provided to the issuer or its","page_number":178,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"7b74f7c6-302f-4d4d-9bf5-10836369c76d","block_type":"box","text":"agents in the form of a rating letter.","page_number":178,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"305519ba-1e84-407d-a289-f7d6484cea52","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope, including interest","page_number":178,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"da5eaf3c-5d66-4ac2-a671-4e9b714d39df","block_type":"box","text":"strips and return of principal or in other forms of opinions such as credit opinions or rating assessment services.","page_number":178,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"53fa031d-61f2-49f9-b183-de9cf642e260","block_type":"box","text":"Credit opinions are either a notch- or category-specific view using the primary rating scale and omit one or more","page_number":178,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"c0e994dd-9b4d-4d03-a17f-51702860d290","block_type":"box","text":"characteristics of a full rating or meet them to a different standard. Credit opinions will be indicated using a lower","page_number":178,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"05ae3395-ceba-488a-bdf9-66cc0abacaa3","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":178,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"0447fdb1-c62d-43de-ab49-86747c1e5225","block_type":"box","text":"e.g.","page_number":178,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"2e4c907e-902b-428b-9efb-c367ea70ba8b","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":178,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"313f2777-2d56-4c86-b892-19f155874359","block_type":"box","text":"opinions will be point-in-time typically but may be monitored if the analytical group believes information will be","page_number":178,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"a1f2c31b-ac41-411b-9b2f-7760ad4d481c","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":178,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"388b0b4a-9b9c-490f-b7a3-d58709ae2e88","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":178,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"26d6e610-9a5a-4eac-bf3b-c83dea297225","block_type":"box","text":"rating assessment services are point-in-time and are not monitored, they may have a directional watch or outlook","page_number":178,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"cc1d5766-988c-45aa-a5cb-eff2e981819d","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":178,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"b7422e09-28ac-42a0-9ed3-40d8f42386ab","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":178,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"a3b49305-d631-48d0-92ec-543a2316a4f5","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":178,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"0cc5631d-00dd-475f-996a-b5eada47803b","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":178,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"e1f88c7f-624b-44ce-b5e1-186b341ccbcb","block_type":"box","text":"default on that liability is also included in the rating assessment. This notably applies to covered bonds ratings, which","page_number":178,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"03500d14-10ed-41b5-921b-c08d0c9da923","block_type":"box","text":"incorporate both an indication of the probability of default and of the recovery given a default of this debt instrument.","page_number":178,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"9cffcd1d-7d66-4031-8b89-30089f208f47","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":178,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"995a96b0-f5fa-4914-9488-beb59c3c5206","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":178,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"26515ae3-4ec7-4235-9565-4bfdf85a1901","block_type":"box","text":"Individual obligations can be assigned ratings higher, lower, or the same as that entity’s issuer rating or issuer","page_number":178,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"42b580c6-9a5a-4d68-94ae-688016de0159","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":178,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"2e4858e6-f839-4495-98b1-170a2816f43a","block_type":"box","text":"Ratings.","page_number":178,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"1cd05798-e063-44d4-bbf1-da81909f69b4","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":178,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"9becda51-46a8-4a84-837d-2b70a777a144","block_type":"box","text":"same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an IDR. At the lower","page_number":178,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"9810bcc7-0c6f-41e6-ad18-0cd65fa72b84","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":178,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"9ee8c4d9-e52c-4ffc-8cb1-7bdd9243a997","block_type":"box","text":"obligation ratings.","page_number":178,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"7984d3ba-f9bf-48ab-96f8-78a3edf54a9c","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":178,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"e83adbc9-2152-4c48-b8ea-93fd18721d09","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":178,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"653841aa-d434-4002-b3d8-2cb29cda4e56","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":178,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"0c3cab98-74a2-47d8-9aac-fc036c4be5b0","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":178,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"8513ea8b-3215-4e4a-a877-b5c53711af41","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":178,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"8c205ba7-aea4-4ee0-ae63-d90032e8d5bf","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":178,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"42d1ea38-01a6-4beb-9c79-63f0cd4f384e","block_type":"box","text":"to foreseeable events.","page_number":178,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"14c12d80-96bd-4a1a-93e9-cbc40e81ac2d","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":178,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"303c97e6-85f7-4493-8533-4d0b3af8c8ba","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":178,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"e5e9a25a-0acc-4559-abb1-35246aadd844","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":178,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"49e79912-7624-4f64-8bd5-52f540d38c84","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":178,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"9591eb96-b529-4200-b1c1-938fa6e2e798","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":178,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"62ee8bed-4a38-4c68-9537-d07b98cbfa7a","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":178,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"76cbf619-3f37-4cd6-bd52-abf9995e4631","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":178,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"18fc8182-9c68-412f-ae09-46b8d6fdae5f","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":178,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"1c0a5a97-330d-48f2-91c7-621c7ea882fe","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":178,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"7f0fd9fb-394a-42b2-918e-3137b83b2946","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":178,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"7fba7bdc-9025-48cb-b753-82b216823955","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":178,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"63229e0e-1f5f-4824-b7dd-db723f61142a","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":178,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"7fbc0876-272a-4557-af51-74eb6cd3d8b6","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":178,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"1dd608e6-2e42-4fd2-9018-21985de7179a","block_type":"box","text":"possibility.","page_number":178,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"dc122672-7bbe-44a4-a25f-925a2e69bbc9","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":178,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"4aaa281f-f0e0-4505-af22-402c720b5490","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":178,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"4e6703c4-568b-47c7-bf36-f37a62b552a1","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":178,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"d02a280f-11f3-4ec4-8990-fe621247d161","block_type":"box","text":"A-7","page_number":178,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"5e0428e8-f509-43aa-85d7-14486bd1b73f","block_type":"box","text":"NM1026U-5981128-178/232","page_number":178,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a897a04b-d91d-447c-a4ba-1ec9fa38f2f7","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":179,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"97eb9fdc-f5aa-43af-b0e4-edb689da6a26","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":179,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"449f7fc5-e30d-46c1-98a5-d9b1241989ee","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":179,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"4b9ca5ba-e70f-46b3-be59-c6cf02555578","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":179,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"78f26719-8396-48d7-9424-b565420b8fe4","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":179,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"14bcf96c-9fc2-4e39-b77f-4264dfdb727e","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":179,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"5215eb64-744a-4eca-a2d0-de7d1015e18f","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":179,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"511b45f5-ee3c-43aa-b476-ddbfea5ffe5c","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":179,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"beef9b15-b137-4e67-960f-4bef7df195e3","block_type":"box","text":"relative status within major rating categories.","page_number":179,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"65d51e78-a263-43b7-9576-667858c14122","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":179,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"d85e8e1f-34fc-43b5-872d-9079c2224424","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":179,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"cb083e5e-aa8f-47e5-adf4-9c1d7a202eec","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":179,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"29337a44-2614-4456-943f-8a76e89a4e9a","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":179,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"a993773a-affe-45fa-a00f-b8f9ba1d533c","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":179,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"24e9af06-9159-4444-aefa-cfc39ad4d1f1","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":179,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"8fa584b7-2e6d-4547-8266-ebf67fc521da","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":179,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"3c039b18-803b-4afc-b90d-93dfc1c26939","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":179,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"152e7971-9eb5-4cf1-b85e-ea7341f694b5","block_type":"box","text":"13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public","page_number":179,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"966eb079-0dc6-4b6d-af9c-7d69dbe3a380","block_type":"box","text":"finance markets.","page_number":179,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"e93cd381-b42a-4c9c-a53a-1709ef1e8df1","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":179,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"bb868e9d-a605-41a9-8ae7-c129d53e987c","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":179,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"231b0fc2-5eb5-43d2-aa0a-7baf133b4dae","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":179,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"08a263f9-6dbd-4905-b7d0-65df75157e83","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":179,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"24f66fcb-c36e-40af-910f-4035c86cc637","block_type":"box","text":"commitments.","page_number":179,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"0bdea459-3e0d-4a24-8e02-00db6648a5b6","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":179,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"d420fd8a-3bac-4d35-956b-2dbd33c1ceed","block_type":"box","text":"adequate.","page_number":179,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"b4c66d85-855c-4ad3-8b55-e6ac768fec49","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":179,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"eaf2f550-e888-4857-aef0-cbb74b949db3","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":179,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"4ffca261-8d35-4518-a39a-0d642da49f7a","block_type":"box","text":"economic conditions.","page_number":179,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"2112f3ef-ef4c-4d26-9933-84b5111316fa","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":179,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"0c476bd9-bf72-4bc9-a491-d200b42c14d4","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":179,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"57439810-a2bf-4c6b-adea-e24fdd74b1ed","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":179,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"e3012536-8d89-480b-b12d-def73aa39815","block_type":"box","text":"ratings only.","page_number":179,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"960ece40-98ba-4085-a160-a1ce7f475a33","block_type":"box","text":"D Default. 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The guidance informs the voting recommendations BAIS","page_number":184,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"9a81bf13-8aa5-4753-90b6-11e93d1168d3","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":184,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"78e04bb1-70e4-4033-ba3d-20b06047d207","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. 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There are","page_number":184,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"61407397-f9ec-441c-bb79-a06468751dec","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":184,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"fae0fd50-3955-4095-9206-43c7dc40d665","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":184,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"d502fcc2-be9f-4ee8-94c8-168d73196610","block_type":"box","text":"1","page_number":184,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"8d64be2a-c42f-43d6-9cf9-218ebbb594e6","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":184,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"9f85f26d-d309-43c7-8c00-51e2ec86bd99","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":184,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"b9122ba5-0b17-4bd0-8a85-d1b89f1cc98d","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":184,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"50c44d44-f04d-4bfe-a669-76107675a9fd","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":184,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"6f39cd08-3ddf-47b5-94b2-6dce17c56d7b","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":184,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"3cd0e5fc-3553-44fd-b5dc-32b94888dd1e","block_type":"box","text":"2","page_number":184,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"abaf8714-6fd4-40d1-8a90-813881c3fb80","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":184,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"7c4b04a5-44d0-46dd-ad49-34e511395cc8","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":184,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"c98018a5-c8ee-4c24-8193-c734f6e8c0b9","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":184,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"025d1bea-da39-4c8a-b2a0-53d7a8a1eb92","block_type":"box","text":"policies.","page_number":184,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"60e8e47c-df5d-4f33-b8d0-eb13723f6a93","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":184,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3fca0cff-314d-470b-b8b3-b4fad4dacbe8","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":184,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"b9a226b3-4b92-4660-a3c3-7273e2b9eeac","block_type":"box","text":"NM1026U-5981128-184/232","page_number":184,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c8080f09-571d-49bb-93d9-f472afcd8990","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":185,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"68548a6d-209a-43b7-9498-a29f684417a8","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":185,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"8aaa577d-0ae1-4b5f-90b1-20a492e321b2","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":185,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"fb47844a-f8f0-4962-ada8-9b9656fd6413","block_type":"box","text":"As a fiduciary, BlackRock invests on clients’ behalf to help them meet their investment objectives. The firm does this","page_number":185,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"14d637a1-26d0-4ad3-8c69-c2f8a4c78342","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":185,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"f2f5929a-b447-4629-b268-c40b5feffda4","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":185,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"c8099262-de54-4470-99f0-3ab886c48f7a","block_type":"box","text":"this work with research, data and analytics.","page_number":185,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"b69a6637-2913-4a1e-b7c7-2b3a5efdfcbc","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our clients. As","page_number":185,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"aaa85e74-29e6-4462-bfff-f5d29a2a1220","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":185,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"4b9cfd8f-082e-4abb-a344-85d8a518b076","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":185,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"ce1db0f7-e986-46ac-a29d-03dbd47de392","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":185,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"3e84195e-340c-4737-9846-460c965b87f3","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":185,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"8e6c6f88-0a4f-4977-a7e9-6993d8ba769d","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":185,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"c901ec1a-3564-4f8b-aff3-2690b88aff38","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":185,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"c217d7b7-a785-4632-8c17-bf3449695618","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":185,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"f40ed180-d9ef-4cf3-8a1b-2a410ad9301a","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":185,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"f3be6e37-ab69-43bc-9360-fe2b8f5e95ba","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":185,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"5d3e20bb-f873-4bd4-9d61-f1bfcd956954","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":185,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"3f920416-0911-48bb-98ee-83d37c39ab53","block_type":"box","text":"shareholder meetings.","page_number":185,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"a6638515-c811-483c-b6dc-022a853bc3cc","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":185,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"d6b73787-c038-4b2f-86a8-1d7e6e063837","block_type":"box","text":"investing.","page_number":185,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"cf5155d1-b71a-42e2-93a0-93d796176e80","block_type":"box","text":"3","page_number":185,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"15547360-20ca-41e7-b354-8f58455d0ceb","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":185,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"03b72ce5-f252-4691-9376-b0d11159def0","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":185,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"4c52b745-15e5-4077-9200-5d9913f95027","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":185,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"d596760b-250e-4968-b233-96cd7354f913","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":185,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"55dcc89e-d8d3-4623-8ea9-53595e5bda19","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":185,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"6e0dd340-385f-4122-94fe-836609a7a488","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":185,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"c24a07cc-ab98-4ef3-a2e1-a91f757d9a72","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":185,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"fc9fd9bd-44c4-4f8b-a9da-2ac70ee23a2b","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":185,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"cd4ffdc7-b0ec-4e33-9c06-ae1850943d5e","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":185,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"baec31a8-676d-43ca-a2be-a6f976628594","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":185,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"0af79ea7-2677-4efa-817b-e47d86a3176f","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":185,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"3b006c2d-ac04-4232-88d2-4d785a14d975","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":185,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"081b0ae6-133f-4674-a81e-7aec71105a8a","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":185,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"cf0a1915-8673-4cd7-84a8-dc0a3a1a4a9d","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":185,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"40daae92-d55f-4b6d-a39d-15f8b099f6b2","block_type":"box","text":"management teams and board directors","page_number":185,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"0cc4d64a-43ab-4079-99b2-11b4cdb13ed6","block_type":"box","text":"4","page_number":185,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"0b72d391-42be-4175-8055-04c77313828e","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":185,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"25441b2a-27d5-4f54-a552-7ba6528cc57c","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":185,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"9c05ed35-dd96-491e-9c23-cc4ca7f75cea","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":185,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"a678af78-778e-4ce3-b37d-38b22a913b21","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":185,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"72ec9ef8-9ab2-4ce2-8fd1-ea6bc64494fc","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":185,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"a13499d8-4934-4f78-8340-65ccb04b3296","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":185,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"bd04c49a-c831-47ed-b003-ef086457b540","block_type":"box","text":"to – direct a company’s strategy or its implementation. We look to companies to provide disclosures that explain how","page_number":185,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"b3f4b92e-e294-438f-bb7a-e89802604db7","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":185,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"a464c923-c88a-46ca-b38e-f7820f3b78be","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":185,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"4d180cc0-763b-4f01-b96b-e81f888a4f94","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":185,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"d142692c-6060-43ca-813f-9e823c4bc205","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":185,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"2d4ea865-b0a4-47a7-9b95-e24cb24e4ddb","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":185,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"d067256d-95ea-4060-a415-981286bc33f4","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":185,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"eb991e0d-57cd-415f-bab0-4606cf7c3fbf","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":185,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"601ff81d-e405-41f7-b194-05cc17180eee","block_type":"box","text":"3","page_number":185,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"ae43d1a2-30ce-4cb8-9b58-c924f8431c2a","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":185,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"eba48c9d-0db2-49d3-b3ac-1d91883b4161","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":185,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"11c5aca1-6502-4a71-a3ab-e704815d0bcb","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":185,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"6f524618-7446-4f1f-bb06-d6da6fce7cbc","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":185,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"88a73aaf-f785-40e5-b9b6-6b5578474161","block_type":"box","text":"4","page_number":185,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"499b0112-68fe-476c-b4fe-da029bff9fbb","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":185,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"b70fb096-bc6b-4d6b-811c-50edfbf0ed32","block_type":"box","text":"boards and their members, where relevant.","page_number":185,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"9d500923-d79e-4de5-9670-3aac4bce0cbf","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":185,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"768851d1-71c6-4a67-b737-167904a2bb26","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":185,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"e4afa5fc-c0cf-4154-b870-639d3fb00309","block_type":"box","text":"NM1026U-5981128-185/232","page_number":185,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d957b056-55fe-4492-bb91-61a41f184805","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":186,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"09a33c71-e1b9-4301-a747-7af353f4b059","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":186,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"780612cc-f02c-452e-90f4-6e347ac7113f","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":186,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"8aba0caf-1ba5-40ec-b4bb-95ba680028f3","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":186,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"f87c7e2f-3c7e-4cb5-b1b7-3a8c0449c745","block_type":"box","text":"on a case-by-case basis, in the context of a company’s situation and the investment mandate we have from clients.","page_number":186,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"d6b73108-0615-4c07-bafb-5af1856ec27b","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":186,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"f2879d04-2083-4535-970f-59a56fa62a6b","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":186,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"b20d6761-131d-4731-a30c-4f8710f12384","block_type":"box","text":"5","page_number":186,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"7764300b-7038-401f-8297-bdef7fc678be","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":186,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"5c82f64c-d4e6-4a56-a41c-ac085173d175","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":186,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"5754f0bf-2dc9-4937-a488-7e3bf8d73e44","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":186,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"4839161b-5c33-4cf7-82f8-145c0746a772","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":186,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"7a2cc634-529f-4842-9236-959e69cc783b","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":186,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"9f93b24c-127c-4a40-bdfc-e68b5b1fcb02","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":186,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"8f0d68fa-3ec1-44c9-aa93-705f8e9feb50","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":186,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"a0d97583-c925-4961-a3ac-bb2171f198a8","block_type":"box","text":"5","page_number":186,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"5e26f664-7c10-4d96-8fbf-810a2e433421","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":186,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"d59f699d-871b-477f-9187-9d555f639eb0","block_type":"box","text":"multi-asset solutions strategies, as well as holdings in BlackRock’s index and active fixed income strategies, to the","page_number":186,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"d9c01d50-9679-4643-8a3c-5df9d2deefc0","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":186,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"a4e7e562-2f8d-437d-aaa8-390e2abb39bf","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":186,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fed01b2d-1378-4297-b868-c94be2583ccb","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":186,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"acdb7263-38a0-418e-90d9-0b5f1c304367","block_type":"box","text":"NM1026U-5981128-186/232","page_number":186,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9688ecd6-3ff0-4c83-89ec-ec65fcaf7733","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":187,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"e1f793a2-9848-479c-89db-245126d37c79","block_type":"box","text":"Roles and responsibilities","page_number":187,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"6d3b18a1-d43f-41d4-9ac0-393399542bdf","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":187,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"6ca0d0fc-eedf-4790-9a64-7089c264aa0c","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":187,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"cf973418-b04c-497e-834e-80e26c028e30","block_type":"box","text":"6","page_number":187,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"2cb9b03a-ecb4-49c1-8b99-d6007caa456b","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment and","page_number":187,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"7f3cd2a5-c748-453f-806d-243e25b61c8b","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":187,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"17024cb0-2693-4e48-b579-750d545bb1a7","block_type":"box","text":"can better position a company to be resilient in the face of a changing business environment, help reduce the risks","page_number":187,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"af8bd8c4-37f8-436d-bff6-781f8b956838","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":187,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"c0fe539c-e587-4523-aadd-4d202938c10b","block_type":"box","text":"performance over time.","page_number":187,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"1c59aac4-89cb-482a-82a9-748efcb0d42d","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":187,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"fbf7e174-33f4-4d4d-aaf0-c7880e2035e3","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":187,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"d7cc8495-1ee0-4985-99e8-3cd2acd6e645","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":187,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"86dba319-c3c7-4f67-ac95-ec3cbff80eab","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":187,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"aa7dd2e1-86d1-400c-b0ef-e7b81f0c6c04","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":187,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"9b9e5fb9-a071-4f23-918e-765a1e13dde6","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":187,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"d2feab6e-a985-4704-93d0-acdf7867a495","block_type":"box","text":"Composition and effectiveness","page_number":187,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"cfb79199-7855-4802-8ced-277409c973d3","block_type":"box","text":"Appointment process","page_number":187,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"133d9355-b58b-4216-b751-5e02f22591ba","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":187,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"516f846b-5b0a-4b9a-9404-5a6d1aaf9ef7","block_type":"box","text":"board is composed of directors with the appropriate mix of skills and experience. Generally, the board or a sub","page_number":187,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"8a704942-fae1-4052-a868-2f81aee4ca8f","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":187,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"5359785b-8c82-4200-a010-30c25c8b5d6f","block_type":"box","text":"e.g.","page_number":187,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"4bb0b2a3-3d84-4916-82e1-72e6c8e80e20","block_type":"box","text":", sector, maturity, geographic","page_number":187,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"736c46d1-755d-49a2-aa5d-4a8b4f82c6c6","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":187,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"394fd3e3-c1c1-4efd-9178-3aad98102ed8","block_type":"box","text":"e.g.","page_number":187,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"05d17162-4a03-4c8c-aace-506814a06439","block_type":"box","text":", financial expertise, industry track record). To","page_number":187,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"9b6f057e-e075-43f9-9910-44206502bf91","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":187,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"48b66e6c-35ba-4de2-b5d5-738b9829a8f2","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":187,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"03ed3356-3597-4654-b905-bc1a5aa916fa","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":187,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"228ec881-fd1b-4ff3-b404-07b40d973e2e","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":187,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"73fa5817-2c97-433d-9a7c-1634e52a2f67","block_type":"box","text":"and local market requirements.","page_number":187,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"48945e0d-5d6b-48f8-bd53-feddfffe1fe8","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":187,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"972501f7-d854-4629-ab65-3af98c082ac9","block_type":"box","text":"composition in our engagements or voting but seek to understand how well placed a board is to act in investors’","page_number":187,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"c4ad482f-e739-45a3-9c15-aaace428ddfe","block_type":"box","text":"interests. We may vote against the election of the most senior independent director, or the chair of the relevant","page_number":187,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"c00b4ee8-064f-415e-9d39-ba53923fc3c2","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":187,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"276a603e-1e0e-48fe-8c82-b1d5c5db3a29","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":187,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"c35f810f-c646-45f3-845f-61aa5d72a731","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":187,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"f93889d6-2839-45fb-9451-eeb34869dd33","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":187,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"4c092705-05ba-4b82-8b99-b04fef5f99c5","block_type":"box","text":"Independence","page_number":187,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"fbed1a0d-6065-4829-a362-f4e9bb6d5da6","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":187,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"43c92d83-6b14-4398-a804-9a052c098488","block_type":"box","text":"e.g.","page_number":187,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"9b9db601-9f3e-4206-b0da-8f8bc32511ca","block_type":"box","text":", government or","page_number":187,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"484915c8-8371-46aa-8f30-390596d30e0d","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":187,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"8421c181-c622-4cae-ae3d-cc74e7e78d99","block_type":"box","text":"BlackRock’s clients. We consider it good practice for at least half the directors to be independent and free from","page_number":187,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"17130341-52aa-45c9-a624-846e987e087d","block_type":"box","text":"conflicts of interest or undue influence.","page_number":187,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"d74a9dc3-1208-4bc1-997b-7831b6447fbf","block_type":"box","text":"7","page_number":187,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"ac640630-60f3-41c4-836f-79263a0f2b36","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":187,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"06527e93-2ed3-45fe-8c30-d5f9afe0c9b2","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":187,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"0a7de7e3-cc92-4727-92e1-5f4170efd2b6","block_type":"box","text":"independence should meet those local requirements.","page_number":187,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"f11e5dd0-0c65-4997-8bf3-c2d1b4b6ffa2","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient balance of","page_number":187,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"090abde6-88ed-4618-b7e4-510ee64f8d81","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":187,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"5fb6f068-dde6-4d6b-8aee-2493cd4d9871","block_type":"box","text":"composition if this is a perennial issue.","page_number":187,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"179ea390-bfb2-4e12-810b-642d6d4e568d","block_type":"box","text":"6","page_number":187,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"6d3dd6dc-7e12-44d6-a59e-11301aa8fc93","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":187,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"0f4c5179-1030-4f2c-af0c-a794aa1d0c8b","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":187,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"88e1134b-50d4-4928-a0fe-d7246d37fb81","block_type":"box","text":"7","page_number":187,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"4b0c09b6-31cd-47e1-822b-c70fe0d00f77","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":187,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"59ea56d4-8159-423a-9d40-62d0998d140b","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":187,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"87104f8d-c1de-44cd-aecb-7546fb2dc25b","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":187,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"0b5d56a3-b45c-4e5e-9a96-bbf71b69d580","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":187,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"b0e7e7ed-0fd3-419c-a412-406ebef590a6","block_type":"box","text":"of the company and shareholders.","page_number":187,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"995653ab-ca3b-4805-b536-804ace106084","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":187,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"644f5e56-f2f3-4d73-b0c0-04ea1986e924","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":187,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ab5ef995-43c8-4a17-bd11-a5fd934f57d9","block_type":"box","text":"NM1026U-5981128-187/232","page_number":187,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"812ede01-218a-4251-8f3d-932eb5a7bf4e","block_type":"box","text":"Independent board leadership","page_number":188,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"0cbef88e-891e-452e-8915-3ab9dfefe7dd","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":188,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"28a8f4db-16a5-4bad-889a-5fb8adff3853","block_type":"box","text":"board leadership. One is a non-executive, independent chair of the board who is responsible for leading the board in","page_number":188,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"4a3ba451-483a-4852-ac4c-2457501fc49f","block_type":"box","text":"the effective exercise of its duties. The other is a lead or senior independent director, who is responsible for","page_number":188,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"bbd88e74-ed93-4a47-b824-28138ee1767c","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":188,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"789c404d-bcfb-4ad9-b21c-d81673f0f554","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":188,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"6a1a5c80-cf2c-4b93-bf16-e2408b096c32","block_type":"box","text":"ensure the board is effectively fulfilling its responsibilities. In our view, the independent leader of the board, and/or","page_number":188,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"77c44d51-a573-454b-95bb-801b64d8e7ce","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":188,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"e9952db1-ef48-4b21-9cc8-f0f23011995a","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":188,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"4d4ee899-bc73-4497-b545-3448e2122b22","block_type":"box","text":"how it serves the interests of shareholders.","page_number":188,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"38707bb4-4802-4790-9ee2-f1fdb08841e0","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if there is not","page_number":188,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"98c79535-f9d0-40a2-87fd-9f78af4c8540","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":188,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"7adad7b8-5adf-4a53-b9f5-acf0a23f4385","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":188,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"40c1710c-2a97-4e96-bfd6-f7b5137ccb1f","block_type":"box","text":"Tenure and succession","page_number":188,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"5e7fa09e-2314-41aa-929d-6c3366f862a3","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be expected to","page_number":188,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"3d0f89e2-642d-455b-b68a-175b2d6ee26e","block_type":"box","text":"serve, in line with market norms where those exist. We find it helpful when companies disclose their approach to","page_number":188,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"c435ed19-249e-4014-9bf1-8e8aaf658263","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":188,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"b840be0b-8a54-4ab2-937f-516ade53f4e6","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":188,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"c24ffd46-c595-4e4c-a0f2-73bce466a2ec","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":188,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"e2c6b1d2-dcc9-4dc6-be7b-dd44eec2002b","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":188,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"07549a90-5eae-4bc4-bb41-4bd471cf274a","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":188,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"6e869b1c-7452-4f0a-a94d-0a28ffc8776a","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":188,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"5be4fe0e-c344-4f6e-aa7d-455a6961fe7f","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":188,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"e55fb1d8-c306-4895-8f72-f277bb950a44","block_type":"box","text":"practices, we may vote against the election of the chair of the committee responsible for board composition if a","page_number":188,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"92a33b1d-e3e4-442e-9328-ea0b809e5684","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":188,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"633c6f17-b541-4b59-bd55-81715faf52f4","block_type":"box","text":"election of directors who have served for more years than is typical in markets with specific guidance, where the case","page_number":188,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"e0d034bb-4099-48cd-80bb-7cb7a85734db","block_type":"box","text":"for their continued service is not evident.","page_number":188,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"3c9c9874-5025-457a-9750-3d4d8a7876ed","block_type":"box","text":"Capacity","page_number":188,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"cff9325a-7df8-45c5-8690-bce9d9c7bf36","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our view, an","page_number":188,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"266165dd-b7a2-4bee-89da-8ce646cc37df","block_type":"box","text":"effective board will assess the ability of its members to maintain an appropriate focus on board matters and the","page_number":188,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"75bcb62f-5104-451f-bd30-77050e6da235","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":188,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"97ad03b1-ccba-44cc-b5d5-c070bd3e82e9","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":188,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"51937f87-b729-48b2-a932-40073083dd90","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":188,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"2ed4dc99-575a-419e-a58a-b582b1681247","block_type":"box","text":"determinations across markets.","page_number":188,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"bd0d38ff-c3ae-457b-b5f2-641bdf1d888a","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively fulfill","page_number":188,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"b553932f-7283-4754-97cf-ea8b73615881","block_type":"box","text":"their duties to the board and company.","page_number":188,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"ecacdce1-dcd0-4f83-9584-b47fc70628e4","block_type":"box","text":"Director elections","page_number":188,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"442f865d-7364-4376-a5d9-acd7fde3a2b7","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":188,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"3fa37b71-a037-4f02-ad6b-a14cb80a01ff","block_type":"box","text":"structure","page_number":188,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"452b6110-994b-4c0b-abcd-af1c53ae5285","block_type":"box","text":"8","page_number":188,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"63426a14-d785-41ac-b362-9774cedc6953","block_type":"box","text":"may be justified by a company when it needs consistency and stability during a time of transition, or on the","page_number":188,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"c8da19c1-2be6-471f-a1ac-2ff627e2124f","block_type":"box","text":"basis of its business model (","page_number":188,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"6aa0a517-f3c3-4ccd-8ad5-75d6ee55c96c","block_type":"box","text":"e.g.","page_number":188,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"cd3c3848-1bf4-490a-a52d-0f3f29e6d090","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":188,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"4e7b42db-7ae0-4c5c-a930-504624187d6b","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":188,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"f1b9892a-2320-4f6f-ad44-f9569dee2939","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":188,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"fa4ebcdc-b705-40ce-a0e5-8d86d1ff3e40","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":188,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"07df3562-3fa7-41c7-b900-7a53462cb56e","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":188,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"2febd652-0503-471e-8254-3d476c954076","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":188,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"6d27cd29-8a19-4d7a-90bc-adeb80a1ce48","block_type":"box","text":"shareholder meeting. Where a company’s practices differ, we look to the board to provide a detailed explanation as","page_number":188,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"1365587c-27d2-4d8f-86ce-123828cc6d9b","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":188,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"68107c90-00ed-44bb-8a51-426c0c850f98","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":188,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"d9ca4ba7-f64b-4a87-ac3e-b5ddf2c97fcb","block_type":"box","text":"a simple majority vote standard for director elections. We may vote against all the directors standing for election as","page_number":188,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"a23b37f5-fade-491f-9ada-bc3ff30420b1","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":188,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"3e6ec672-003f-44c5-b827-4a684b0193fc","block_type":"box","text":"8","page_number":188,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"89b4c6a9-dca5-4c16-ae77-00a78f858077","block_type":"box","text":"A classified board divides the directors into classes with different overlapping terms. As a result, only one class of","page_number":188,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"29e09dcc-6b03-416f-8c9b-4df20ec41896","block_type":"box","text":"directors stands for election in any one year.","page_number":188,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"a46d7302-059f-4b59-8af0-67bf45e38c23","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":188,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0286aad0-c15c-4121-8f59-c5aea5d0481d","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":188,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"19853d50-a2ea-43cb-aace-6a18a7f77c44","block_type":"box","text":"NM1026U-5981128-188/232","page_number":188,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"33c9d9a6-f877-4267-aeba-1d56bab717ac","block_type":"box","text":"Committees","page_number":189,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"53b0b3ba-bc67-4dde-a64a-9c66c9f0aea0","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":189,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"68c0ef05-164f-4735-80c3-f206750856a4","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":189,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"1072343e-4db8-4931-9fb3-42271ef1488a","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":189,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"bf974a48-21b5-4380-9c02-e8c6e9197c48","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":189,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"e6e4df86-7d04-409a-850e-2fd84bdba2cf","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":189,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"0403dcf3-861d-4d23-9929-84e5a720cf77","block_type":"box","text":"matters are assigned either to the full board or to one of the committees. It is helpful to investor understanding when","page_number":189,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"d5b95476-bbe1-4046-87a5-32e8dab8a395","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":189,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"7a3973ad-0c21-4768-96a0-7687c37c8124","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":189,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"b44c7269-80db-48bc-b5bc-7191a3689d65","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"807359c3-60e1-4743-9218-f816bf54f744","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":189,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"c3455c45-9aa2-4db4-b2d4-8f5add69741d","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":189,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"54d2b654-1254-419b-a9b2-0bbcb3a07774","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":189,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"e46cde0b-953f-4a10-86a7-2bff416b2f7e","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"10d77b6c-affb-4878-b1fd-3bd64ea7cd55","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":189,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"33e0c966-fbce-4788-85e7-6c3a646cfe13","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":189,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"49b29e14-18b7-4e25-b377-bbe3498cc397","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":189,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"ec8a62cb-a739-490c-9cff-315499e91a70","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":189,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"994be885-dae1-4555-bae6-3ac593dcc975","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"bf5aecb7-26c6-44a1-aa8d-36dd44aa82d6","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":189,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"dacdb025-1b5c-4a91-b9fb-4a2645581c43","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":189,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"79c916e8-a676-41a2-a7ce-56a0ecf1567c","block_type":"box","text":"firm-wide compensation policies.","page_number":189,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"553b040b-af12-42d4-bd2d-d3b50193a109","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee members","page_number":189,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"052cb952-dc63-4797-92ba-2dfd550d1f6d","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":189,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"34a1d7cb-43ef-4a0a-b70f-dda95b694b19","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":189,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"76e56e3d-213a-4564-bf92-b62b363584d2","block_type":"box","text":"Board and director evaluation","page_number":189,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"360d4abf-4258-4704-a615-d5a111512363","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":189,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"750c8812-bb8c-4647-bcc8-b4601165cebe","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":189,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"de4799de-b256-4cfa-bcee-2591dc2baa64","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":189,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"e492b446-a387-4aa4-aa79-61d167ca5953","block_type":"box","text":"disclose their approach to and the objectives of evaluations, including any changes made to the board’s approach as","page_number":189,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"e6dea55e-8de5-43b9-ba47-6bf725e478f9","block_type":"box","text":"a result.","page_number":189,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"a9d05347-3dcf-42d7-9dd9-b664b26a7c3d","block_type":"box","text":"Access to independent advice","page_number":189,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"20f92624-d888-40a2-b538-0a5c6be3e582","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":189,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"2c0f9ad4-5806-420e-9d5b-cb64994474e6","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":189,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"c297905b-6aac-4d50-adeb-c8bcd65a923e","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":189,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"241718f9-28d7-4dcb-a397-78427e84baf9","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":189,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"c01830af-eca2-4de6-bdf5-232d7443d8b1","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":189,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"46538f50-1796-48ed-9f4e-f3c6619ad987","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":189,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"2ec70847-38e6-4286-bbdb-0daf6a25240a","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":189,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"528a14b2-918c-4785-8f5c-b7fed5d01aa0","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":189,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"bb11ee88-e321-47c8-ba53-ee1665ea408c","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":189,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"16d7de53-d2f2-43fb-9bef-2a89c6694744","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":189,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"9f8770fd-4448-4c42-a7a8-c62e2d7a0557","block_type":"box","text":"performance.","page_number":189,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"909722fb-0e53-4335-811e-4c30127291c3","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":189,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"7debaed8-4950-41a5-bf47-4e4d4b7c4ac0","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":189,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"e3fc1071-252e-4777-b120-8d596de7aa8b","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":189,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"a0ed486b-c5c4-4275-bb87-b606c6fcc125","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":189,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"ef0e3960-b3ba-4a0d-b1f9-04e7e5f33b9e","block_type":"box","text":"to be tailored to the company, its sector and long-term strategy, as well as the individuals the board is seeking to","page_number":189,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"eb399bd6-daeb-47db-9183-891cc9e61217","block_type":"box","text":"recruit and motivate.","page_number":189,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"5da286bd-50aa-48d6-9318-90802823f73f","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":189,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"9ad214fd-6fa3-4b1b-b377-c3ddf6d6a7fb","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":189,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"8481cb00-ece7-4559-8176-3b5d3e01cb9f","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":189,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"1b34d6a5-83c7-41bc-80d8-5e5ec657e199","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":189,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"ad856865-ec8c-4893-b201-4a7447caf4b6","block_type":"box","text":"arrangements include:","page_number":189,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"f9be6b06-674a-4179-a433-3fa913585f8f","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"73e4ef0d-77ec-485b-b096-5d2b9ba30d4a","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":189,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"72954c29-d1e8-40f2-ba4e-a8233f921ba2","block_type":"box","text":"the company’s size, sector and market.","page_number":189,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"ae03796a-8a90-4c2b-b86f-8ec3b3974c37","block_type":"box","text":"BlackRock Active Investment 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objectives.","page_number":190,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"6e134747-ba39-4c58-b854-6e461a248e61","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"bb3b59f6-79a1-44e3-826b-2f2e85f41784","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":190,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"3dcc3d9e-78b6-4e51-b291-70b13a77474f","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"6ad5c2a4-cf38-4f3b-9e78-d1f3915d84e3","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":190,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"36946102-d204-4676-bb78-7f13d1f3afce","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":190,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"d7f904bb-b569-404b-b9a1-2ada00b80734","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"f1bddd50-9888-4419-889b-e6bd870676df","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":190,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"2ec000d7-358b-4991-b504-1c8de2525162","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"c42e8d69-de84-4773-84b9-193b61a79003","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":190,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"9d3ec5d3-bef5-43c7-93f0-7e4a2855cf8f","block_type":"box","text":"transparently.","page_number":190,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"6ab8fab0-44e2-4698-8dd3-d6c15c446d19","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"37b10948-6eee-4c79-8f25-cd2104b8d94a","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":190,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"a0bf8544-f230-4783-a61e-cdd700ec11cd","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":190,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"665b2e65-81e9-416c-a313-a8b41cd8e05d","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"d2b1fd13-bea5-49a5-8510-50f27b8f040e","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":190,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"a561f7a6-b823-4b69-8850-594617363417","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"bd72ffc5-aa40-49f6-8378-22be8e65ed88","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":190,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"1bcf71a1-3dd5-4119-b764-b5cfd291eaf4","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":190,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"5c005fd0-fb49-44d6-ad15-59fc534bf59c","block_type":"box","text":"misconduct.","page_number":190,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"247557a3-d2a7-48e3-bce3-70b30d9a8ce1","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"7bf209f9-1b7c-45e5-b043-3aceb78a5954","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":190,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"d9f06a35-5ba2-497a-b993-0c5c98ccc553","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":190,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"08b6b9b3-a371-4041-a557-b5af407e5023","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":190,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"e7a5c2dc-fc99-4251-bfca-bb9d123a608c","block_type":"box","text":"and our clients’ financial interests. When there is not an alternative, or where there have been multi-year issues with","page_number":190,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"e0f92e30-d796-4a67-87a6-d54f6af7c76e","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":190,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"81acf486-8b97-4f20-a243-ba950236e0f1","block_type":"box","text":"committee, or the most senior independent director.","page_number":190,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"35915716-924e-4231-873d-12d05c3669c5","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":190,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"d25890e1-b127-4ad4-9850-62761ad0a1eb","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":190,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"f67bf7f0-867a-4c70-8766-bab74885d9bc","block_type":"box","text":"the two. Some companies also pay additional fees for service on board committees or in board leadership roles. We","page_number":190,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"4e4f1107-7f8b-4974-b89a-a7f7fdef355a","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":190,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"b699ac4c-360e-4227-9701-eaf723a2e845","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":190,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"feda1ed1-d96f-4a88-a676-28a1e636522b","block_type":"box","text":"CAPITAL STRUCTURE","page_number":190,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"0ad62b6e-edee-41cc-88d6-391f1c96a3ad","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":190,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"2c0e1f8a-0ce6-4117-a671-c54e7b111856","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":190,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"a593822a-499d-47db-9453-3eff3127363f","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":190,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"1815e0d0-152f-41eb-98fe-5ead6d412c74","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":190,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"6ea22057-2269-467c-9ff4-8c42b3adb9bf","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":190,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"49f08f21-ba11-4379-859a-8f23642377f0","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":190,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"6cdd1bdb-37ab-4eef-82b0-eff73c951b34","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":190,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"648c6a46-7217-4d2a-a8c7-1a076c0906c9","block_type":"box","text":"Share issuance","page_number":190,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"f7968dd6-809f-4bf5-9269-cf0a58759df0","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":190,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"21d41730-c5b5-4f59-aa04-31436060dcd3","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":190,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"0a678a7e-79c7-4734-bc53-5f2db37d693d","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":190,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"3eb856a9-b500-49ff-9048-cff9339232d2","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":190,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"3ec70b76-fd45-48c7-b78d-ec3459b5f65c","block_type":"box","text":"market environment.","page_number":190,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"ce7e9296-349c-4f4b-8622-62060fd0a8dc","block_type":"box","text":"Share buybacks","page_number":190,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"7687e448-a4ce-4b20-989a-dd4d805e3636","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":190,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"d17f9c74-90ee-4860-b932-42e26b259119","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":190,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"7ea0f096-ef27-47e4-a2ef-6f1c4cab5b07","block_type":"box","text":"the company and returning cash to investors. We also take into consideration the effect of a buyback program on the","page_number":190,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"80335e6f-71b9-4313-8feb-b2bd1c77efc6","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":190,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"cef886a2-716f-4de4-a121-1d28a3dfa10c","block_type":"box","text":"relative to market price. We consider it good practice for companies to seek regular approval of these authorities to","page_number":190,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"4f4f2095-7477-47ca-83ca-43f420fc55b7","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":190,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"4cffb26b-ff41-41fc-b837-7bf15ec97cba","block_type":"box","text":"of the company and the market environment.","page_number":190,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"6bf1fb15-aba2-4999-9172-026c92536449","block_type":"box","text":"Dividends","page_number":190,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"ef527b4a-9178-48bd-99dd-476183b713d7","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":190,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"1878ddec-ff9a-49ba-b536-9ee0383f9ac4","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":190,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"55f7cf9c-58f0-4581-a6d5-59151cc2d8dc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"99bb2fa3-0254-44a9-a950-35610d58b873","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":190,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"2e908d70-75f3-4f4b-b9e5-2982019fb2d5","block_type":"box","text":"NM1026U-5981128-190/232","page_number":190,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"790d8c70-b0d9-4158-8d30-b91fce48a0ef","block_type":"box","text":"Differentiated voting rights","page_number":191,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"3c3ce8f5-edfd-4edd-aacd-1bf1380f7daa","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":191,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"96a2381a-0ab1-4558-87bb-e80a6ab2669c","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":191,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"2350545e-d156-456f-84c0-63ab3811740b","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":191,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"b0301ef7-3761-4760-a541-024e9297db7c","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":191,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"2c6d8364-de7b-4230-88d3-fa6cdd8e5145","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":191,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"0c98f9ad-572e-4625-896c-1207ffde2d7d","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":191,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"cf1735bc-2a07-4799-99ab-31af9cde39dd","block_type":"box","text":"analyses of proposals.","page_number":191,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"58c9c696-3fde-4bc7-9783-78ab08692d5a","block_type":"box","text":"Mergers and acquisitions","page_number":191,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"bd5bd156-3bee-4c47-baa3-5367bbec9949","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":191,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"ff611bf6-7400-4a78-b2ba-c230ca068eb7","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":191,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"c4293bd9-78b9-465e-9db0-8b81e3087086","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":191,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"bf66e543-e58a-4b30-a66c-18fb798d1bce","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":191,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"9311d903-449d-4865-9513-2ba8508649af","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":191,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"10adbd2d-6319-4f77-b1a4-93dde712a22c","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":191,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"17b8a163-6b22-4c25-854b-5e18b2c3c482","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":191,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"03e10129-7efa-4315-b759-01b400e1769e","block_type":"box","text":"Anti-takeover defenses","page_number":191,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"4549863a-3795-4b4f-b344-9d3155d7bbcf","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":191,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"686a1cca-7aaa-49fe-9f27-ddebda44f846","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":191,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"55eac92b-2b6b-421a-9824-82f1f3660243","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":191,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"2fbdfcf6-6403-426d-8459-4bc413a1bb46","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":191,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"21c93b8f-b818-4a1d-9d98-3f2398baf7e0","block_type":"box","text":"case to use a poison pill to block a shareholder activism campaign that may be counter to the interests of other","page_number":191,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"c84da648-c962-4787-9335-579034c9ebc2","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":191,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"4fb0ce1e-760a-4211-816c-13bb13701591","block_type":"box","text":"be closely monitored by the independent members of the board. We consider it good practice for companies to put to","page_number":191,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"de35ef12-dd54-4c4c-b9b4-cd42f42e0ec8","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":191,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"f4b9c6c0-e371-4295-84d8-eb37342d04df","block_type":"box","text":"Shareholder activism","page_number":191,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"fa59fbfe-7703-4b21-8c0e-556baee9d1b3","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":191,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"a4906bec-06b5-47d8-8920-b814e3fb1f44","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":191,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"98824d23-aedf-4fac-a51c-bc9e3cde3477","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":191,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"b4e65bd8-5672-4caf-aca6-c966e8438828","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":191,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"a21ed34f-f98b-46e0-911a-377d1470f952","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":191,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"e84b464b-cb40-4ff6-9675-9c0f15e0ec3c","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":191,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"8209b9ca-a2c2-41d7-aecf-533026373a72","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":191,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"a262c6a2-5e13-4779-a625-e750512f8a38","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":191,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"9de910b7-cc7d-4303-b814-05f1eb3da862","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":191,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"06073776-22ec-47f7-b585-4a92fb11554b","block_type":"box","text":"protecting shareholders’ interests.","page_number":191,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"65e881ae-38d5-4651-9170-2fcf348d11f3","block_type":"box","text":"Significant shareholders and related party transactions","page_number":191,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"3e160e4d-8bb0-4b5a-b169-4ae5a97512e3","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":191,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"aa4c5b19-423d-42e4-a7d8-46f986da0a9a","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":191,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"90ee0487-03f3-46df-94f2-2ae7975881ce","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":191,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"5260826f-1374-4d87-9af0-66d540e3271e","block_type":"box","text":"affiliated with the public company, to be disclosed in detail and conducted on terms similar to what would objectively","page_number":191,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"ba022251-bbc4-4908-a08b-0e3b0e0031cd","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":191,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"70e97ef4-fb1e-4a9b-949c-eeaeb5aead3c","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":191,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"f6ee1f8f-8191-4f0f-b2b3-2a305e5d9b6a","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":191,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"958657f2-b4b3-4d7e-bce8-4b73ee7ef942","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":191,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"4d74e0a3-c463-417e-9e28-cc2215c1dc9c","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":191,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"0f39520b-8da3-4507-a161-58719f0367bd","block_type":"box","text":"potential for the company to create shareholder value over time. We consider it good practice for the board to","page_number":191,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"4bc49f52-b2f1-4d8e-bc5a-7cc84d97f336","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":191,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"aabd4f8b-e0b8-426f-b8d5-6946a1e003e0","block_type":"box","text":"audit.","page_number":191,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"01debffa-776e-4979-8048-8a8a4a7a72ec","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":191,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"ea6b0d9e-6e2a-4af1-8118-5cf73b07e174","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":191,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"372afcc5-f0f3-4614-aa69-f40f29b48e12","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":191,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"5cb358cc-099f-4df2-ad2f-e69769039dbf","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8f5e83d5-f2ed-451a-89be-54f202909f04","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":191,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"6d024b39-883c-40c6-b43b-a7e44e95b3ac","block_type":"box","text":"NM1026U-5981128-191/232","page_number":191,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5a167e24-4161-4b79-aae8-c21d912ea3a9","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":192,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"384282f5-01ff-4dfd-9b8b-2d3cce2dc023","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":192,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"d02df0f1-9554-4175-a6cf-f4acf05738c9","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":192,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"3750533b-3a2d-4e6d-90c5-817f63ef6cef","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":192,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"da090786-bece-4352-aba8-cc94b04621e4","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":192,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"61102320-93c7-480a-9160-8e3660cae948","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":192,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"cd7b2de6-11f5-487b-97cc-fd697dfcea28","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":192,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"4d3500b8-57f7-4357-94fc-71100f9c90af","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":192,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"b8ac69dc-c2fd-4d37-881a-5c4f790c7f9d","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":192,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"cb49413e-23a1-47cc-91b8-268f2cf5e311","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":192,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"52f282de-1df8-462d-b339-1ec8ed047484","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":192,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"01af723c-2332-47e3-9131-72aa941ec746","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":192,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"b05bf89e-bfb7-45c2-ad0f-d8a864fe977d","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":192,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"ef75353a-8745-4aa2-b59c-171fbb950d7e","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":192,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"81b0590a-442d-4b53-bc88-131996fa0386","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":192,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"18cf6767-ba68-4912-8bd4-bd864b9fbfae","block_type":"box","text":"9","page_number":192,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"c88c01db-1529-4ec1-8022-e2e9772408ae","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":192,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"810c1eb3-51e8-4e4b-86ed-775a45525796","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":192,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"477c9550-59f2-4ec1-986d-2fd13bc3f46f","block_type":"box","text":"standards specified by policy makers.","page_number":192,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"3af5479f-1ee9-4b3d-9bb8-fbd2b7323073","block_type":"box","text":"10","page_number":192,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"069df362-87be-4ec4-ad1f-66a00771a969","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":192,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"d10eb022-b3bf-4f1c-adc2-ad971be8397e","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":192,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"574ef793-8bae-4100-bea3-c30000cd17f7","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":192,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"4e4db226-bf29-4573-b365-a3af6463a5da","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":192,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"60c73dc2-1d03-4128-8862-c6bafc7db1b6","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":192,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"942d4cdd-7444-4bb0-b28e-16e01ff93e58","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":192,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"43e455af-9bce-4934-a731-c70f2a93dc38","block_type":"box","text":"well as any critical audit matters identified and how these were resolved. A comprehensive and effective audit is time","page_number":192,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"9ff86f3b-41db-48c7-bd45-0da9d7f2664c","block_type":"box","text":"and resource intensive, and the audit fee should be commensurate. Fees paid to the audit firm for non-audit","page_number":192,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"deb776a4-909b-4d91-9f60-eb46a1edc959","block_type":"box","text":"consulting should not exceed the audit fee to a degree that may prompt concerns about the independence of the","page_number":192,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"0334db08-5692-4427-860c-f8eaafb7b379","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":192,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"a98c0b80-9a80-4159-91e3-320d82a1b5bd","block_type":"box","text":"remained independent.","page_number":192,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"87db3142-f880-4209-8e69-1db9bcbde654","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":192,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"384e1e60-79a0-4540-a30a-aca874f5485e","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":192,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"51009a1e-cfa6-492e-98ca-57619d212161","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":192,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"693cef47-97c5-474f-bc6f-aa73adff0466","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":192,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"1d376cf2-a5db-4f8c-bfc8-87af308e54cd","block_type":"box","text":"audit fee if we are concerned about the auditor’s independence, the quality of the audit, or there are material","page_number":192,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"ce966dfc-24b9-4da7-9321-4658a3b90cd2","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":192,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"22d74ee5-fe58-403e-b182-432ca5849a48","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":192,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"6c114a1b-e91f-4983-896b-28a097675c40","block_type":"box","text":"General shareholder meetings","page_number":192,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"9c4f5793-6fae-486e-991d-ca0b4de53b2b","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":192,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"bb7d3f16-1b52-488e-b427-209617f78943","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":192,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"03bd50ec-aeb1-452c-8e37-df282342fe5f","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":192,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"8ad07c4a-d4a9-4173-aa85-ec13fd97e1d4","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":192,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"302f9e75-f178-43ac-b9d4-a2c9da416d09","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":192,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"10b7c503-4083-4a15-b9b2-295bac2c80f6","block_type":"box","text":"an in-person meeting.","page_number":192,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"02ba9a26-00c2-4757-a76c-96ebc7bc950a","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":192,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"44c5e97b-ecf8-445d-993e-d0b9c3ac3abd","block_type":"box","text":"provided in a timely manner or do not provide sufficient information for us to make an informed voting decision. We","page_number":192,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"52b3ef1b-e55c-40b2-aa00-42d209e12968","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":192,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"37e148ac-6e14-43d8-ba0e-e7b05a982ddd","block_type":"box","text":"participation.","page_number":192,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"00a603a4-c785-4510-b30d-f31210e667a8","block_type":"box","text":"9","page_number":192,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"9113fb9a-f982-4f94-8377-129284310530","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":192,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"9cdf4057-468c-4d6b-bafd-11628460197e","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":192,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"8a2bce57-d388-4ee1-8acd-86427c18488d","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":192,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"c16e8333-da74-4012-832d-3a4005dc02b0","block_type":"box","text":"Disclosures.”","page_number":192,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"c884b5fe-38be-4b81-96bb-dce0efd534cf","block_type":"box","text":"10","page_number":192,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"437f8364-3e46-4518-9729-9fc8ff388ad0","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional- profiles\r\nissbstandards/ and https//financeeceropae/capitalmarketsnionandfinancialmarkets/compan","page_number":192,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"c4bcf739-b53f-48be-9e47-0fd0aa42451f","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":192,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"4d9e3dff-17a9-47d2-bb11-5fc495aaaa32","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":192,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"56548048-f2bb-413c-885e-92c8edeb550f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d862b670-a602-4577-8905-d31ed49721db","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":192,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"3c17cd20-ee87-463e-af2f-c46d3a1f6293","block_type":"box","text":"NM1026U-5981128-192/232","page_number":192,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"515be0e3-57a7-4bc1-a4ed-075cd50b5dec","block_type":"box","text":"Bylaw amendments","page_number":193,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"4d03aa65-3da2-4ac7-844b-a069807451f6","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":193,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"6576c208-cde6-4d11-9249-eb88b803a815","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":193,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"5c68a10b-4abc-4f02-a688-a5f37d429a94","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":193,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"21509d24-bf07-4d08-83c4-253ae183f774","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":193,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"fada6667-bf90-4c1f-b326-6b35b183b4d8","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":193,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"84c6bac4-1ed7-4b35-bcf3-2f2f4923d041","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":193,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"21214377-bfc0-473b-80aa-926e0f9c1c4c","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":193,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"6bb4bb67-6271-477f-bb0d-fdea86ac6b97","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":193,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"7cedcbac-2135-402b-844a-ade2ade25a92","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":193,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"d7309966-8022-4943-bf53-ff3806f79203","block_type":"box","text":"group, with a meaningful shareholding, the right to nominate directors to the company’s board. The threshold for this","page_number":193,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"aba3528c-01f7-48f3-97ac-36ff25969aa3","block_type":"box","text":"right should be set so that shareholders can exercise it without being unduly disruptive to the board’s own","page_number":193,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"dcc5fe99-9422-4553-91ce-f1e76dd58037","block_type":"box","text":"nomination process.","page_number":193,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"78bbc873-04bf-451f-b63d-faeec3a309e2","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":193,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"3134e9ad-a826-4449-a5e6-de14897b3120","block_type":"box","text":"We may vote for a shareholder proposal seeking the addition of either of these provisions to a company’s bylaws.","page_number":193,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"53411adf-e0e8-45c9-b9d6-00c7956d8608","block_type":"box","text":"Change of domicile","page_number":193,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"549a2bd9-78b5-4206-a86b-b19328db5f19","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the rationale for","page_number":193,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"301407a6-02a9-4be6-8062-1633219f18f6","block_type":"box","text":"doing so is consistent with the company’s long-term strategy and business model and the related costs are","page_number":193,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"b0c2b37a-7aec-4375-93a3-ffe19d6b692e","block_type":"box","text":"immaterial.","page_number":193,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"ba1515d9-bbf1-46fb-b2ec-1f7db3d3c14e","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem aligned","page_number":193,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"43e8c1e2-0655-42e7-a06e-c60ac289f2bc","block_type":"box","text":"with our clients’ financial interests.","page_number":193,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"54227caa-55b2-433e-86e2-214d08c7db38","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":193,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"b375894d-9e6c-4671-8fb5-a224a6ef597c","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and explained","page_number":193,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"c92352d8-c872-41b3-a68f-b3450ec144d5","block_type":"box","text":"in the context of long-term strategy and business dynamics. Such changes may significantly alter an investor’s views","page_number":193,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"0d655ea1-8870-4661-a128-1f0c8a56d480","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":193,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"1f2d2e15-ad31-483e-b5c6-63577652ebae","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its business if","page_number":193,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"332b4f57-682f-42a9-b927-6ca7c9b4cad1","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":193,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"ed5e2b13-ab2f-4aa2-a008-c3d3e6ba07bd","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":193,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"8c9aa81a-1781-4f82-8371-ecebab38d149","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":193,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"0ee1f462-662e-4d26-8555-fbcb3bc43ba1","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":193,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"78a84e13-f9ee-49f6-8f43-6527d8fcad9c","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":193,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"488790ab-1a95-49a0-87bf-e30074fae969","block_type":"box","text":"relevant to a company’s business.","page_number":193,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"40fbdca4-3a85-42be-913b-ee5a8dd26e02","block_type":"box","text":"We vote on these proposals on a case-by-case basis. We assess the relevance of the topic raised to a","page_number":193,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"44a40fbf-d1d1-4767-9e6c-b71fc0a142e4","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":193,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"1c7bf7ce-d9ef-4360-834b-20b7ede787f9","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":193,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"f7ef4a9a-af2b-4b8a-9efb-2e100f49464f","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":193,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"ad287c35-1de1-4bdc-8400-2d110efc8fbd","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":193,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"8fc3faa0-67b8-4be9-a98a-8605f2d83750","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":193,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"e100aeab-c501-47c3-ad1d-e0ebd4d6cb7e","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":193,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"7bf4e5fa-eee3-4941-b220-276506852dfc","block_type":"box","text":"shareholder proposals that are legally binding on the company, seek to alter a company’s strategy or direct its","page_number":193,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"6a3e7d21-c502-4a02-9dc3-a15afdb22a21","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":193,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"bd8ce206-5267-4fec-b6bf-ba643357689a","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":193,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"d6374f61-5beb-40ad-82e9-c10d9e7973c7","block_type":"box","text":"and limitations on how we can interact with the companies in which we invest on behalf of our clients, including our","page_number":193,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"0ae3b713-f957-4961-86d0-8a024001e4d2","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":193,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"f091fd15-f866-41d0-9e87-055359de5a4d","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":193,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"94100d00-ab8e-4614-a35b-539c586e71aa","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":193,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"e55320f4-e5f3-4de6-8a2f-e685bbd53997","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the jurisdictions","page_number":193,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"0fd67296-2f65-410d-a979-781a2c9da893","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":193,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"fda39f6f-e541-4636-9557-f1c1467928ee","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":193,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"cb3eb474-6551-4728-8038-2acf0a2e9f02","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":193,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"836845b7-21ff-43b9-8abb-ade2c1b5cf75","block_type":"box","text":"statements on policy matters material to the company’s long-term strategy. The board should be aware of the","page_number":193,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"26df894c-9cc3-4d2b-bc3e-d6c2685c75a0","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":193,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"85a8eaec-c386-41ac-9be1-ba74601506f9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b8a0290a-4774-4dee-8826-ac7cf84c500f","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":193,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"3dc168fd-c6d6-4db0-b004-991c89f1e151","block_type":"box","text":"NM1026U-5981128-193/232","page_number":193,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d6c68360-fea4-47f2-9355-4a31d3ca8890","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":194,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"f3c9ffa8-d2d7-46ff-82d2-321ff20aee67","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":194,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"ff086ead-0fca-4008-8213-039db35a93e0","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":194,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"c13d301f-8fc9-4883-9737-1f4fe6ab6da8","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":194,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"c6084bab-9cf4-4d5c-b288-e6716f980f3b","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":194,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"e7b86c7b-1a4f-4abd-b905-93ab73af4f68","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":194,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"afcff4a8-07d6-4779-9f21-aaaa0acb03f4","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":194,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"60c40b27-962d-47c0-9222-cd3c8fad44a9","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":194,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"9f4a6bc3-a1ca-4c55-8394-0f58e96c4893","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e2f921ba-4aea-4081-8c56-82ee7ab74e12","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":194,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"fab8ca47-2110-440c-a2ef-67889837f1af","block_type":"box","text":"NM1026U-5981128-194/232","page_number":194,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"94ac830d-5652-4d92-af26-f2748bfd479a","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":195,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"33ba3783-755b-4f68-9f5e-80f3524dd796","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":195,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"94ed6034-57b5-4fc2-a5c9-fe7623b79b57","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":195,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"21d71d91-7f40-49a1-ba86-8b0fd79563e5","block_type":"box","text":"11","page_number":195,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"6b6047b2-fef7-45cc-82b9-90e6b9fa38a8","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":195,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"d188e21f-128e-470c-a345-6de85f5cb305","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":195,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"7188d806-0acc-45ed-bc20-771473f407cc","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":195,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"1303aa2d-7ee5-4701-b4d8-d1ce18dfb3a7","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":195,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"efbc926c-a3e0-4339-b533-0db199f6e0c9","block_type":"box","text":"regulatory requirements.","page_number":195,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"b9e1eb48-5f55-4785-a549-4bfc4023c4fe","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":195,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"c33e7807-aa9f-40a5-9c42-f0114bcfbb3c","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":195,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"245d90bb-462b-4847-aa93-59a7e0116f44","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":195,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"40a222fa-664d-43c8-82a2-6c528d7a62f6","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":195,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"764bd7c7-33d5-489c-a743-ef10ea27016b","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":195,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"08e1d9c1-3c99-4833-907d-5d138c1cb567","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":195,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"c81bede6-c6e8-4dc2-849c-9329fa5266c2","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":195,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"51343e1b-84f3-4c17-b5c7-3e4c468f3171","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":195,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"4061bcd7-4640-4464-a5eb-c53925e2ed50","block_type":"box","text":"returns.","page_number":195,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"cf1638db-8565-4db5-a4a1-2bf367887de0","block_type":"box","text":"KEY STAKEHOLDERS","page_number":195,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"44f05b45-84e9-4c5f-816e-ff3440135163","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":195,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"971d38d6-8f3e-4990-ab25-8a1c1299c262","block_type":"box","text":"whom they depend for their success over time. It is for each company to determine their key stakeholders based on","page_number":195,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"32549e60-7fc8-42f1-9f57-e8a3ad1c5a29","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":195,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"d2dcafc1-1e35-446d-bca0-6cbea74d9155","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":195,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"ec07c3ea-3b16-491f-aa43-350a8ecc665d","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":195,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"5899d6bc-b3a9-44b6-b1ac-066ca3f145b6","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":195,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"21ef5d89-988f-4dc9-90d2-da3509fff19e","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":195,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"2ec9ba36-dead-4274-8a60-b91d2c7e4ecf","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":195,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"6015a6de-f340-44f2-9b98-fdd54be039ec","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":195,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"721acfd4-9f37-4c1f-bd9c-8accf3cf6628","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":195,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"2fb96ec6-1897-4b6b-ab35-e88b3e1746d0","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":195,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"2a0779e2-55c6-434c-a235-e62618d50fca","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":195,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"1cfaa3cb-5d46-4e9a-8d5f-cdb87a1964bd","block_type":"box","text":"i.e.","page_number":195,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"583fc891-4a61-4437-8fab-0f6df2331c10","block_type":"box","text":", one in which global","page_number":195,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"4c6a0e0d-85d6-422b-82db-65a68e878e33","block_type":"box","text":"temperature rise is limited to 1.5°C above pre-industrial levels. In addition, clients in separately managed accounts","page_number":195,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"19659e86-a96e-4166-be56-07bc8f00585e","block_type":"box","text":"may instruct BlackRock to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":195,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"649ff409-6109-47bd-9f7b-5b7f9d0a1896","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":195,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"f9379a26-67bd-4458-9577-b4b142132d0e","block_type":"box","text":"client.","page_number":195,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"9a1efa32-3d4f-45c4-a268-b885edbb226f","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":195,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"c44af853-2f0d-47e8-ae6b-3dcfccbd7d95","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":195,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"fa184e3d-9b89-47cd-bc0e-81ead3836a3f","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":195,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"8fc6b548-6fc8-45a1-adbd-402938c59cf5","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":195,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"c3ea9227-2fc3-4bb1-852b-c629c58f3e1b","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":195,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"9d628c05-2486-4bbe-bd88-e768dca7f022","block_type":"box","text":"include an explanation of the decarbonization scenarios a company is using in its near- and long-term planning, as","page_number":195,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"794f7615-8f3f-40e5-ac46-82f203c0b381","block_type":"box","text":"well as its scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for scope","page_number":195,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"a1aebb32-5bbd-4a39-9044-edb25d4f746b","block_type":"box","text":"1 and 2 emissions.","page_number":195,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"b239147b-4858-4471-afbd-b5ef10d3e8a3","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":195,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"ed21bdbc-c4d1-4dc8-9c42-9282290f899e","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":195,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"d1ad30ba-af9e-4087-a875-3f8f04dce7e1","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":195,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"9e2e558b-ea05-4eb3-92b9-518e37d2b9c6","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":195,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"ce971a2f-8be3-4f52-af6a-61e0fa13972e","block_type":"box","text":"11","page_number":195,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"e9ffaec8-6c7f-4851-9214-e5ab844b171e","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":195,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"36d4a817-efca-431f-a7ad-6c4c4b21638e","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":195,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"ad570d49-89e3-4918-805b-c481b819895f","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":195,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"150655eb-cc7b-4428-86cc-ba26f4185d44","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":195,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"480bb028-e21e-47c8-ac6d-9363e6c447d0","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":195,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"60a4ef89-872a-47aa-aee7-6393ec613205","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":195,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"1db1bf07-b3ce-406f-9d92-48bd9ab0982c","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":195,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"2e568a65-ae26-4baa-9e0e-435176abdbd7","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":195,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"6fb0edf7-99f5-426f-abac-fa2694f51736","block_type":"box","text":"sound governance framework.","page_number":195,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"40fb7605-bfef-44c4-a5d4-daf1965003b2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b868c40b-7781-4567-931d-96624b39a86f","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":195,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"2f199883-9d3b-4d40-9afa-b0d2e5458797","block_type":"box","text":"NM1026U-5981128-195/232","page_number":195,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3358cc8a-dc77-4544-a962-0c1ce1592368","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":196,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"3ccbea95-b5fe-499a-8ac5-c344a38e887c","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":196,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"24e70ec0-db03-476b-8f07-d88cec722abe","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":196,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"67f7e540-bd7b-4223-b9c3-5bb8ea881665","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":196,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"142436e4-296a-42e2-9f9b-0d7947d8367a","block_type":"box","text":"their investment mandate and fund objectives. For the funds and accounts in scope, voting on matters not related to","page_number":196,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"c1f3a078-4c67-4611-a3bf-0f0b39632845","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":196,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"aa54930c-b3ec-497d-984f-1a89890de4fd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ec77659a-ce66-4b26-8c08-b7214cd571c0","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":196,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"84a26afa-2294-440b-b8f5-2bb23b5ec74a","block_type":"box","text":"NM1026U-5981128-196/232","page_number":196,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9d91a403-3890-491e-a1ba-8553e105c977","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":197,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"d9ecb5e3-74a2-44f7-a46d-2f1925cf2b67","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":197,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"8e13ee88-57e2-424d-af6a-80ededa2fc16","block_type":"box","text":"Oversight","page_number":197,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"31450c1e-6ad4-420a-8150-15d6d4cfa382","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including voting in","page_number":197,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"a37d2a4f-5039-43c7-94b4-48bd8a92f468","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":197,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"05464125-50a3-41cd-bc10-cfad9d1ac3de","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":197,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"b4bb6fe4-6669-43ef-8aa8-90e6ddbfc3bd","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":197,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"06d31da0-aa67-4c99-9935-621121fbd508","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":197,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"4cdb4025-ec2b-4a4c-8bc0-8fa3f2fc4156","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":197,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"2b1271a5-a679-4261-9550-58d0b077738e","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":197,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"3944ab60-bddd-45bf-b733-e08c087fa94a","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":197,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"92649fa4-0b2d-4291-90b8-4a7b7a3910d5","block_type":"box","text":"to BAIS’ policies and practices. It does not determine voting decisions, which are the responsibility of BAIS and the","page_number":197,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"af9fa899-f9fd-408e-8443-04d42c2f9e86","block_type":"box","text":"relevant active equity investors.","page_number":197,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"aa75e39b-070e-46b6-b2f4-206ea5fcc870","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":197,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"969b4d48-576b-41b8-84ad-339f93f49927","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":197,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"43f2bb08-3ec5-4055-8c58-95fe0f00d583","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":197,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"fca1a3b0-e721-4ff2-8036-5268e00f48ac","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":197,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"54bf803f-543e-4eea-8272-0ae91dd9ef4b","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":197,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"b3c32b83-688a-420f-bc8e-e6f6b4a38a4c","block_type":"box","text":"third-party vote services providers” below).","page_number":197,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"0e78b9fa-6b49-4a39-8b64-d67299ac738e","block_type":"box","text":"Voting guidelines and vote execution","page_number":197,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"4f47d36b-18fb-4645-add7-773c7a01d4fa","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the voting items","page_number":197,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"a882e84d-69b7-471a-a068-45f1ef0332b8","block_type":"box","text":"submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have voting authority. BlackRock votes","page_number":197,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"9b277473-d6e6-4951-9a25-a0c86623a7dc","block_type":"box","text":"(or refrains from voting) for each Fund for which we have voting authority based on our evaluation of the alignment of","page_number":197,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"0943a2b4-35b4-4235-978c-e3c3f5a637cb","block_type":"box","text":"the voting items with the long-term economic interests of our clients, in the exercise of our independent business","page_number":197,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"05dc53d2-eaa2-417d-b60e-2c37b6fa19c3","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":197,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"8ee660d6-f4dd-4c21-bb13-bd255e9b77df","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":197,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"1e1c46a8-bb50-44e9-8a5d-78daeb589005","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":197,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"e75bea38-a816-42cd-ba3f-d82406eb8922","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":197,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"5b34968c-8162-4f41-840a-4aac8f0ad6b9","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":197,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"57b77687-1e99-41d2-8b6c-5a437b9b64ce","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":197,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"98637640-ffd9-4a13-8f0f-4268eb638460","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case basis, in the","page_number":197,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"f5356fbc-8e02-4314-996f-821eeba2ec91","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":197,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"b2fc02c5-dba5-422e-bc53-9812fcf57d54","block_type":"box","text":"do not indicate how BAIS will vote in every instance. Rather, they reflect our view about corporate governance issues","page_number":197,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"c51b2020-6015-4897-8da3-b456d293521f","block_type":"box","text":"generally, and provide insight into how we typically approach issues that are commonly put to a shareholder vote. The","page_number":197,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"be3f2a82-73d3-4091-a5e1-03f40fb6cb2e","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":197,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"98ceed8b-8832-487a-be17-d7213eb72831","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":197,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"e161702b-8823-4e1c-bb85-178b6b8b5547","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":197,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"ed729dda-65b8-4cce-a908-c27880383d6f","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":197,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"6c562a88-5357-4c47-83bb-5c86a2b889c5","block_type":"box","text":"well as the desirability of voting such proxies. These issues include, but are not limited to: i) untimely notice of","page_number":197,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"007b9131-6bde-4b92-bfe8-a7367333b148","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":197,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"43cdff77-be22-41f0-9951-9b593925c3a9","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":197,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"203c6b11-50d2-42c8-9293-a9d63417e32d","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":197,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"90ead1cb-de33-4fd1-8c91-3d3bb85e76b4","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":197,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"828fbc7d-6a2a-466e-99ca-684b53d8a0a3","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":197,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"097f0853-e895-4929-bc4b-820cb33fa970","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":197,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"9d0556f6-9ac5-49c5-b00e-41b471792bf0","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":197,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"4fccf530-5f5e-4a2f-a3f7-dc09c91cb211","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs","page_number":197,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"2ff534e1-0344-4414-b9ad-3f142e0fb023","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":197,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"48614a13-6996-406c-bbc1-5c4b3a3e01e1","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":197,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"5837beb3-9a93-4427-8230-aee8254454c1","block_type":"box","text":"Voting Choice","page_number":197,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"703ff35b-41bf-4d28-9a64-b72384fc25cd","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":197,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"b35765d5-2530-42fb-933b-dd24a11a17d8","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":197,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"5979e64b-03e6-46f6-b9bd-1219abc34dda","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f861d473-d096-4937-8acb-802fec5b0bf3","block_type":"box","text":"Global Engagement and Voting Guidelines | 17","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b877cc4f-3058-4968-aee2-824f6b31d901","block_type":"box","text":"NM1026U-5981128-197/232","page_number":197,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"58ab7b87-ee7e-42fa-b735-cdc1e07399a5","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":198,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"19ec9110-8982-447c-b664-9095b603a5a8","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":198,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"2769892e-8720-4f53-92f1-c12529772046","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":198,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"ceda7e83-ba84-42f0-b7c5-2042928671c9","block_type":"box","text":"strategies.","page_number":198,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"3fcc9f52-3301-42bc-9656-5478d7cfc397","block_type":"box","text":"12","page_number":198,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"e695d475-b028-4707-b8da-c1304ac9fde4","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":198,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"a9e9ace4-0bd7-4076-8c77-b5b0d6cbc217","block_type":"box","text":"on whether our clients have authorized BAIS to vote on their behalf, have authorized BlackRock to vote in accordance","page_number":198,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"45e7e0b8-a567-433a-afbb-89d7eac17260","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. 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Reliance upon this information is","page_number":200,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"db6a9123-b67f-4137-9504-f6bcf14b37bd","block_type":"box","text":"at the sole discretion of the reader.","page_number":200,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"85255027-427f-4093-ba2b-323fc4342bf6","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":200,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"de51ad68-c89d-4e59-a6a3-7de96d0d4355","block_type":"box","text":"©","page_number":200,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"04e75fbd-0659-4681-9605-943d58e0a2bf","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":200,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"35152907-efb6-4a7b-a4ec-93fb0aa6238f","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":200,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"b21baa75-6138-4161-8ac4-8449fb55cee7","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"28a5d21c-f27b-4f64-aa88-d379774f4f0a","block_type":"box","text":"Global Engagement and Voting Guidelines | 20","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"8d1362e8-343e-4f5f-a31e-e35b3f922e84","block_type":"box","text":"NM1026U-5981128-200/232","page_number":200,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1bcdca16-c85b-4990-a512-38c002fb0b5b","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":201,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"c314adee-abca-4e4f-ac41-049f36fb4a5a","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":201,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"6dd2c16c-b1ea-448f-bdee-612288971535","block_type":"box","text":"□","page_number":201,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"85973d2e-8e8f-4c08-8e15-a0fb3fea349d","block_type":"box","text":"Money Market Funds","page_number":201,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"e7bacacb-d463-4769-8af4-63ec3e52acc8","block_type":"box","text":"□","page_number":201,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"1a803f31-d47b-4d0e-95e6-558ab244e70a","block_type":"box","text":"Closed-End Funds","page_number":201,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"bed6359d-f5b7-4830-a09a-e89b5bb04dc9","block_type":"box","text":"□","page_number":201,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"cedd5de4-a5fb-4e3a-b146-d771e9062cad","block_type":"box","text":"Other","page_number":201,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"f9e62f6e-de85-4b6c-90d8-f6eb73890ef8","block_type":"box","text":"Objective and Scope","page_number":201,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"0e49c66c-eab8-4b79-9596-57061db63c53","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":201,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"2ebff822-0609-42a4-b009-a53740e635c2","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":201,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"58773674-caee-45f2-b3ec-fffccd9f22b9","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":201,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"dfca7a77-8624-46f9-ab3f-d8e400a7cd3e","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":201,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"fc32c70e-416a-4d75-80bd-cd37bdfbfa4a","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":201,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"bd43cc20-1063-412b-a84c-c95f5b7cdbfb","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":201,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"98066d00-aefc-46d2-8d86-3237ce6cfed3","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":201,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"798ff934-cb2f-468b-b11c-08243bbea0ca","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":201,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"7d38c3c3-3230-4f9b-a4b7-0f1c08866f30","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":201,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"5f1a04c2-47f8-443c-9a60-35e609c5f9cf","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":201,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"68123647-ba43-41cc-ad41-31b5020986c7","block_type":"box","text":"the iShares Core S&P 500 ETF. In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":201,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"b5a35e64-d3b1-46a1-85c0-e5d4134fdf85","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":201,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"70861d06-ced8-4a5e-84f8-bcca6c9cd024","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":201,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"381cba17-dc31-4b63-8089-832c15df67a8","block_type":"box","text":"Appendix A.","page_number":201,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"313d33d7-87e1-4b4b-9065-cebba3ebcf13","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy issues in","page_number":201,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"5b9e1ff3-be91-486e-85d3-4c3c1fc8325b","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines and","page_number":201,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"93fa860d-706e-4d6d-9cd8-0c249c4ba8b4","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":201,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"48a32c49-ffb2-4291-8e37-c11c42c0c3a2","block_type":"box","text":"Conflicts Management","page_number":201,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"d914b30d-0318-48aa-a7c5-f2d40e3f275a","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":201,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"516533cb-368b-454a-82a1-591293b9e4d5","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":201,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"d622b816-a3f5-4d01-b82c-5d0efea8f433","block_type":"box","text":"proxy voting responsibilities. 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The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":201,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"3fa63da9-3de8-49bd-8a0e-ecfeec05676f","block_type":"box","text":"connection with proxy voting.","page_number":201,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"4e5838f4-9d78-4a17-bc50-73969018c209","block_type":"box","text":"Reports to the Board","page_number":201,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"3307471c-43a9-4b46-bd84-9839af0264b5","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":201,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"3c7ec9dd-d3af-4de3-ba81-ba102b5acb59","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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These are topics that shareholders may have","page_number":206,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"0820725a-774f-4caf-940c-0c584729f4bf","block_type":"box","text":"the ability to vote on at shareholder meetings. 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Our regional voting guidelines explain how the BIS Global","page_number":206,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"194dcd19-b117-4e4f-83de-99a40eeacc1f","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":206,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"b1418cb3-a660-4b4a-b629-bd8ecc96fa48","block_type":"box","text":"4","page_number":206,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"be9c4925-6400-4781-94da-71c10b7fde9d","block_type":"box","text":"3","page_number":206,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"c5f3482d-5635-4408-9ab3-58c7df3c4b45","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":206,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"cc9491b3-1e23-4883-8874-378f2ce2633d","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":206,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"a5ccb75f-4c1c-400a-8e04-20036fb87a78","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":206,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"a072254b-fd5c-4196-95ca-23743aa9918e","block_type":"box","text":"4","page_number":206,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"d5b5919a-c4dd-4f56-b6e1-386f8923a4af","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":206,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"fb1ebbeb-efe6-4e6f-8646-ff0a4323079e","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":206,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"03bf698e-4a20-4a54-89c2-d63efe3b7efd","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":206,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"5192ef28-752e-40a3-8d12-a7cb28d62f3b","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":206,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"58d8f0b1-394e-4c64-a902-73ff02848186","block_type":"box","text":"guidelines.","page_number":206,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"d975486f-6ecf-4d3f-9d38-b9bd8a937425","block_type":"box","text":"BlackRock Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9f6729c9-cae3-4bb3-8d90-791a9193b65d","block_type":"box","text":"Global Principles | 4","page_number":206,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"6b220267-d9d5-4353-9c52-9da1206d3714","block_type":"box","text":"NM1026U-5981128-206/232","page_number":206,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"aae51be1-9845-4524-86d3-0f257522f2c1","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":207,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"9075abec-1b8f-42a9-a08c-4b13217a34eb","block_type":"box","text":"Oversight role of the board","page_number":207,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"3fae825d-e23a-4bc3-b942-03868a460cab","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":207,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"5baba70e-04ff-46ea-bae5-8349dc1bca2c","block_type":"box","text":"characteristics relevant to a company’s business enhance the board’s ability to add long-term financial value and","page_number":207,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"5460e8eb-13b1-4e76-9cb0-4412d464734c","block_type":"box","text":"serve as the voice of shareholders in board discussions. In our view, a strong board gives a company a competitive","page_number":207,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"f24800c2-237d-49a1-b516-40280b21489a","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":207,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"48892380-4b20-4df7-8a94-3c3394d76f57","block_type":"box","text":"long-term financial performance.","page_number":207,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"427aed0e-73c5-4d5c-8331-3bc55c68d749","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":207,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"0a451211-09f9-403f-8c0b-75ff73740808","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":207,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"195e9e56-b4ae-4c72-8e40-9e84c97e2a81","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":207,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"96977c0b-8f9b-481f-90d8-80fda15e261a","block_type":"box","text":"the business environment in which a company is operating.","page_number":207,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"b959684e-95c5-47c4-8e8a-aa82f47fb556","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":207,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"daea37ce-ad98-4d13-87cc-c49253894ea6","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":207,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"17dbc487-5501-4e7f-810c-80e0e082e736","block_type":"box","text":"long-term financial interests of investors. This includes having clear descriptions of the role of the board and the","page_number":207,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"96bb4222-c9bf-4576-8d58-adb97421aae3","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":207,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"5df8d465-7c4e-416f-ab39-316e5cc384b3","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":207,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"73dfd4df-c14a-4665-aaed-f13f4d016dab","block_type":"box","text":"mitigating such risks.","page_number":207,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"e196c92c-f15c-4f5d-b2af-1a7de3603477","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":207,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"dfe70751-b5bc-4df2-9651-68ac54655d2f","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":207,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"f328a9d0-eb62-4b79-a258-390a18cfe9cb","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":207,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"eb637670-8201-437a-998e-d638f841b3f4","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":207,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"8d7de994-43ca-4c73-b922-31d588da6470","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":207,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"b69af848-2922-46bd-ab10-e0c068ad8011","block_type":"box","text":"strategy.","page_number":207,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"98d5534c-7d01-49c5-b88d-cbfe4125b1ea","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":207,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"84280e89-8283-44b2-8e77-49e8f14bbb29","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":207,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"bf25e672-4677-4131-bd85-668f1abbcee5","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":207,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"404496df-c28f-4c70-8654-aa8b99fa98da","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that speak to","page_number":207,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"ed6cccc1-062e-41c3-9465-24c3efccb763","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":207,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"aa86eea2-6894-474b-a7f8-d20ff1c5f5e9","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":207,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"79672c89-9255-4aa3-acca-e2d2df76fca1","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":207,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"658ee2db-d09b-4e80-b809-08354c536531","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":207,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"bb083fd6-d764-40e1-938d-27a2bb816b3f","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":207,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"2631c5c6-f4ac-44d1-a2be-6f503d9e0852","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":207,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"f640a9df-e232-4b8c-89af-ec0a05bd6fa4","block_type":"box","text":"Regular accountability through director elections","page_number":207,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"00040dbd-1eb5-4fea-a349-525290ecf012","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":207,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"e81ed05d-4a5e-4fd6-9632-2419ce43134e","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":207,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"e0f8b3bb-6eb4-4095-b523-c211e9f0b102","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":207,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"46d93610-9158-4bcb-a8df-1cf8e581d512","block_type":"box","text":"5","page_number":207,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"031383eb-a187-4ec0-a6d2-4aba86aac894","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":207,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"c2d610ed-148c-460f-a8e7-1b869a60cc4b","block_type":"box","text":"decisions in a timely manner. When board members are not elected annually, we consider it good practice for boards","page_number":207,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"541a9fbf-0b91-4ee9-ba52-0eee94550188","block_type":"box","text":"to have a rotation policy to ensure that, through a board cycle, all directors have had their appointment re-confirmed,","page_number":207,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"9112c162-587e-4258-86c3-ceb6be351f47","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":207,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"e100de39-52e9-4bcb-bbbe-d73019582300","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":207,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"c87ba08b-66fb-47b9-a9f2-6177bf92eed5","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":207,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"01c5c3e9-fca3-44f9-923a-1419566ed2b2","block_type":"box","text":"developments in the company’s strategy and the market environment. In our view, it is beneficial for new directors to","page_number":207,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"9cf13f8f-89ff-4e4a-85c1-6aedde8881be","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":207,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"c325606f-fc32-4ac5-875f-ef0ae3b4d1a2","block_type":"box","text":"5","page_number":207,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"00308db9-4fbd-4f4f-99f9-11683e30682b","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law,","page_number":207,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"f5886509-24e0-49cc-b7e4-7163e6f9241e","block_type":"box","text":"market regulation or voluntary best practice.","page_number":207,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"23030cc9-6b29-4b12-a4ba-cdd4ac88d392","block_type":"box","text":"BlackRock Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f361347a-0d02-48cb-a4e0-c010091bce64","block_type":"box","text":"Global Principles | 5","page_number":207,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"05d5b59d-c2b0-49e7-8789-d0bbd2c8eae5","block_type":"box","text":"NM1026U-5981128-207/232","page_number":207,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a2ae6ba4-b77a-48cb-814c-d9af53b3c6f9","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":208,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"16786614-51c3-417b-ba95-8001ffef925c","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":208,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"074088cc-1d77-4ee3-94a2-d3eb2ede6ab5","block_type":"box","text":"recently.","page_number":208,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"e2db922a-a89b-4d24-82a5-bd3e94d57473","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":208,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"692d3808-8845-400d-a451-197a4c02eaee","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":208,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"9cb42552-c696-4a80-af8a-677e06262a78","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":208,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"c12c37fc-907c-4fb7-a0f4-aeba3b963328","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":208,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"bd7918b9-2cd4-476b-83bf-5d1eaab47a63","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":208,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"ce0cecb4-4a0f-4bc4-8e31-f695a6bc8b47","block_type":"box","text":"Director independence","page_number":208,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"0333b332-743a-4dbe-a71b-767a5a62c408","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":208,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"b5d39055-fb47-4425-a40c-49fda0cfde4a","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":208,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"36d77001-7d00-4702-925e-de175aa1b487","block_type":"box","text":"6","page_number":208,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"6673a11c-4e2f-4a3b-8c18-a525fa636aee","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":208,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"d36afdf3-0e3d-44da-ac0e-123a5e6927ec","block_type":"box","text":"directors, free from conflicts of interest or undue influence, to ensure objectivity in the decision-making of the board","page_number":208,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"1a52907f-2ba2-4981-b137-97d444145f35","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":208,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"0eab8969-96e6-4c15-9938-a1171b2eec70","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":208,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"2334178a-a9c8-42d1-b685-952f2d4b8ad5","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":208,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"4a9fab70-99b6-454a-a5b9-8d233abc9ab2","block_type":"box","text":"•","page_number":208,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"3299bebe-034c-4542-9d13-7dc833e34d7c","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":208,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"eafcaa20-c62a-4e0c-8fea-4deeb9d5432e","block_type":"box","text":"•","page_number":208,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"e6fa496c-d1dc-4138-8a5f-b5436330aa55","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":208,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"536db7c9-e9d7-47d6-a7a2-2eb44ef490db","block_type":"box","text":"•","page_number":208,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"910d733b-5837-45f8-9406-cf3644c2b9c9","block_type":"box","text":"Interlocking directorates","page_number":208,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"992149f1-adb3-47e3-ad16-d7131117a07f","block_type":"box","text":"•","page_number":208,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"e983e76c-d154-4d45-bbd7-1e6db38cf86e","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":208,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"a39b4d80-3d81-436c-9797-0099e4ca7c94","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":208,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"3a96a0b4-ffc9-41a1-a8e2-ec924489c909","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":208,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"9452f6d2-2223-4114-b915-cfd623e58565","block_type":"box","text":"independent board leader. This director may chair the board, or, where the chair is also the CEO (or is otherwise not","page_number":208,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"0f0ba927-e03a-45ea-87b0-6cd4bef78b38","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":208,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"84619c06-683e-4444-930d-90bc5d6ca094","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":208,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"a1f1061c-fc58-4ba8-bd56-ad13bf5b7a46","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":208,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"a8bc60ee-d196-467d-b0e8-7e094766ecb5","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":208,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"7acabc41-cc3e-42e5-8ace-ac559333becb","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":208,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"67e19837-0d56-4a14-ace0-76e3ee32db29","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":208,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"18d02ff2-ff71-4b2a-b3b6-b627244ddd1f","block_type":"box","text":"require additional focus. It is our view that objective oversight of such matters is best achieved when the board forms","page_number":208,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"89a76777-b498-48a6-80f4-82ecbf211803","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":208,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"18c10fe3-5b79-48c8-9139-a7ae7cd5a256","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":208,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"c16a521a-1886-4d0e-aa5e-9b91f3cb9aed","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":208,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"4fe342f8-036a-4e2c-9e4f-368e65f1829a","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":208,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"ab0a3c27-1fef-47ca-aa3a-59a93e0183f0","block_type":"box","text":"Sufficient capacity","page_number":208,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"10310a88-7253-4b11-8929-32163a4aded2","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":208,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"5360b656-9dc9-49f1-b538-8f530003450d","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":208,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"c70ea5fe-0cad-40ef-967f-130040d0bca8","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":208,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"31a41cb9-206b-40d9-aa78-1ad2b91c0330","block_type":"box","text":"practice when they don’t take on an excessive number of roles that would impair their ability to fulfill their duties.","page_number":208,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"b4ed0939-78ec-4bb6-93d3-06ff0b9a6031","block_type":"box","text":"Board composition","page_number":208,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"3e91ca0e-9184-4b2a-bc28-df82eb15bc7c","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":208,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"08b1efaf-8ea2-4045-820f-57db2400a84c","block_type":"box","text":"capitalization, and ownership structure, as well as the market in which the company operates. We find it helpful when","page_number":208,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"42c01379-b902-402b-832b-d30041470edc","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":208,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"1b85c0fb-7457-41b9-a4fd-abf1593d2062","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":208,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"a14b49f3-c463-49c4-8555-0d5ffeb7d959","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":208,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"66f6d1c7-de0f-4256-b0ff-32019cadc870","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":208,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"0a555a53-a5aa-49c1-ac96-37655a0c4dca","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":208,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"1f4b482d-ed69-4e21-83c8-98aaf66e664b","block_type":"box","text":"6","page_number":208,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"40fdb178-47e2-468a-9928-7816aa7708d5","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":208,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"5a3e7ce7-d10d-4b40-ba7b-aad0ff9a6bdd","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":208,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"a66ed36a-6491-4f2d-8596-d57e9d43379f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"15c02543-4521-4fa1-bfd3-b2fb919fe413","block_type":"box","text":"Global Principles | 6","page_number":208,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"3172831a-0984-458c-97b8-a3dc75272ff5","block_type":"box","text":"NM1026U-5981128-208/232","page_number":208,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3316c06d-f799-4142-9324-19bf630090d1","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":209,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"cca53ec4-af98-44e6-a2bb-c2d162bfcf1e","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":209,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"cd0a0caf-7523-4e9a-bdf2-f336afdea42e","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the board","page_number":209,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"35bc5de6-4915-4c65-b35e-d192d634c40d","block_type":"box","text":"room. We see it as a means of avoiding “group think” in the board’s exercise of its responsibilities to advise and","page_number":209,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"ab4cc497-ba13-476b-a19c-333cc475994b","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":209,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"79ba38a5-c49a-4b06-a14e-e2fd3f82a166","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":209,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"9e217bc0-ee61-418e-9944-571823bb83db","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":209,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"436cfe72-05b3-4a0f-a12b-2a93adab3c72","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":209,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"1efe06fa-0861-4db6-9e95-cc5bd77920d6","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":209,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"9704a93f-c1af-497d-8653-67f445511ce5","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":209,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"bb51f366-be58-47ee-9498-98d79188f17c","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":209,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"54dcfe9e-095a-4d90-852b-e7bbf21a1658","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":209,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"e1fc75e2-e424-4e73-9249-8e9663f18b59","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":209,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"332f4a48-06d3-4d6a-a79d-de8b82b2a93e","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":209,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"44685019-d2c4-430b-ba0c-9db138703dd4","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":209,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"62a135d0-44f4-4a2a-b784-0d582de22ab8","block_type":"box","text":"systems.","page_number":209,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"ee42d5fc-9e07-40bd-97a8-5957b0b6c2e9","block_type":"box","text":"7","page_number":209,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"935a0a1a-472e-4843-b3a1-da0615a9ef27","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":209,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"9af5258f-c908-432f-9551-204185e90709","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":209,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"25881bcd-8da4-4d88-9187-5dd20a109314","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":209,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"a7b9a488-d734-4ae5-b7df-0293edb51ccf","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":209,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"e9d128ff-8b18-407f-b539-28d2c28c7988","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":209,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"f475523b-0e6d-463a-a063-38493660a345","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":209,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"d60dd9a8-7709-46ef-9073-7a58a9e8e6df","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":209,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"eeb53bef-6160-408f-824f-d1470b807c77","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":209,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"4acc36e3-7622-4f33-bf68-6b5889d26a6e","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":209,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"e9ed518b-08c0-4855-9fbe-292c63706ad6","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":209,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"d7709200-a6c7-4f70-a7cd-a9998146ea58","block_type":"box","text":"or internal audit function.","page_number":209,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"536777d5-203a-47d5-b4b7-e0e8b5088ccd","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":209,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"2ca2a62d-68fb-489f-b97a-a8d875a614da","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":209,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"54af871d-2d3e-40f1-a2dd-4619dfa4af92","block_type":"box","text":"and are seen to be, independent. Where an audit firm provides services to the company in addition to the audit, we","page_number":209,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"db454e96-44f7-4873-b44f-3d00e86974b6","block_type":"box","text":"look for the fees earned to be disclosed and explained. We look for audit committees to have in place a procedure for","page_number":209,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"2f0ecd94-6442-4b4f-bc4e-1667465a2595","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":209,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"266829db-b289-46c6-af36-f4b70cf1fbac","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":209,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"2d13bca5-3422-4964-9ceb-b6e20e6e4e1f","block_type":"box","text":"management practices and, more broadly, the quality of the board’s oversight. We look to the audit or risk committee","page_number":209,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"02825a9a-1191-4f37-b878-5604327a3f13","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":209,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"cabc46ec-5634-4e93-a0c8-36ed79504189","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":209,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"3d4ee5b6-8e86-4e8e-979e-7864fde6e780","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":209,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"8bb8b73b-9230-412e-aaed-8c3c2857574a","block_type":"box","text":"risk.","page_number":209,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"e19a12b1-a832-47a2-a666-9108c0bb3057","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":209,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"69389457-1755-460c-bd09-d4518418984c","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment and the","page_number":209,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"84d41837-62fe-42c9-b02d-394d853840ad","block_type":"box","text":"priority of their interest in the company relative to that of other equity or debt investors. Pre-emptive rights are a key","page_number":209,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"76615fcf-cac0-4fdc-acd6-def09faa4ea5","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":209,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"be3852a5-b15c-4efd-9fb8-600d03ba9366","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":209,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"8bfef1f2-3c67-4a2b-8cc3-f1c22154016e","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":209,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"65f83017-5c8b-467d-bab9-fc75108a368e","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":209,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"64cc3b8f-1f03-4057-85fc-59a41114fce4","block_type":"box","text":"7","page_number":209,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"3967479f-11a5-4f80-8503-59cd6bd7ef4e","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":209,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"e3d19fa3-c482-4afb-a396-301c54ef7285","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":209,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"5b1bcc9f-93e5-4f31-af13-f12982550487","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":209,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"f4f33e51-7b14-401a-9fcb-1913af120174","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":209,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"3a3e5a8d-b963-4bae-8380-90c83b9cd872","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":209,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"3cca7c1f-a1e8-467c-960e-7706410215d0","block_type":"box","text":"BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"91bcf405-2871-4481-a450-a8d10f491c5e","block_type":"box","text":"Global Principles | 7","page_number":209,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"29a114e5-fb3e-4147-bfac-35eed0bf85ac","block_type":"box","text":"NM1026U-5981128-209/232","page_number":209,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"34b99e18-7a23-47cd-b71b-5fe3a270e562","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":210,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"1157de4e-e04c-48d1-acaa-4891dac76cc4","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":210,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"cfdf2b20-ddd0-4097-8b14-8e80f8bd8f5d","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":210,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"9a828830-1437-4cd1-8d6c-1030674c1623","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":210,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"340f4250-3be4-4f5c-89c5-a47ee2931fa1","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":210,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"81e0e929-cac7-4e08-8f23-3a2c1a75a4be","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":210,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"de995a54-97cb-4f79-8029-64b6c52dd08c","block_type":"box","text":"minimizing costs to shareholders.","page_number":210,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"f4a6af70-aad4-4d48-b207-5a2f9f05a3ae","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":210,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"27be1712-6119-4fa7-9610-019d802443c5","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":210,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"c067899a-65aa-471b-8949-6fcb212d05a9","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":210,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"f747d545-c7ab-4841-8ec0-4daaa551dfd8","block_type":"box","text":"board and has been negotiated at arm’s length, and whether the board or management has clearly explained its","page_number":210,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"66c331e1-fefa-42ea-a2d6-3f3f22d7cf3c","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":210,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"700fcd92-fcd1-428a-9d1c-dd9e42a32106","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":210,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"690fec82-acb0-4b7b-a4fb-7a0511566e93","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":210,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"2f8ae68a-c6d0-42fd-a4ae-f9bb4252326c","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":210,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"665a0e46-b7a1-46fc-abe6-8a9a22f640be","block_type":"box","text":"have been assessed through an independent appraisal process. In addition, it is good practice that it be approved by","page_number":210,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"508e276f-5a75-4f04-9fa7-848bf1dfaf4b","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":210,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"5d1a29b2-7d87-4860-a3df-2444352413af","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company shares in the","page_number":210,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"61c8afa1-904d-4c08-a368-0bc19247f614","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":210,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"87f78142-ffbb-497b-b52e-3a1a0b01f351","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":210,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"ba918922-4d1a-4953-9395-6f373b2fc33a","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":210,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"76620b90-3589-41c6-a2bd-04d61fc2af4e","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":210,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"d8d19753-0ec3-4f84-b090-0a01dd13a2bb","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":210,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"0433493c-17c2-4ec7-9c6e-df3ddfd58b2a","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":210,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"3c247de6-f860-4ea2-bedd-96b0a44d7c90","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":210,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"722c222b-2e23-4250-b5e2-453ff94b78e7","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":210,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"f9ee2a8c-ccad-420f-a4ee-2d7653120827","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":210,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"7797697d-b6ba-4c5d-b181-7918effb9fc4","block_type":"box","text":"ownership.","page_number":210,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"1225599e-653b-4772-b8c1-6553ebef232e","block_type":"box","text":"8","page_number":210,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"6af162d1-9408-4d7f-b6bd-7b74d3e2dead","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":210,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"41347c7c-3dac-48b5-a888-22be85fb65cf","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":210,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"53f470d4-2575-4a5a-ac2b-10c06f3fcc0f","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":210,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"91c81fef-4521-4d54-bde8-08db350d311e","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":210,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"c5bbc8b5-331a-422e-9871-8eb399256c48","block_type":"box","text":"structures, but, where they are included, we look to companies to be as rigorous as they would be in setting other","page_number":210,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"8f2b706a-c141-4c17-b257-7daf06888908","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":210,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"ab11e160-bd3e-4215-aff3-126d87a2996c","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":210,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"ff7f26bb-e16b-4550-b2cc-15c37e362fc2","block_type":"box","text":"results over a period of years.","page_number":210,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"c1b0ece5-99b5-4082-a53c-e18c5668e67a","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":210,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"c5cd47e1-8a80-494a-8d03-ec38350ff0e4","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":210,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"1ceacc3d-e868-43be-8c90-340e0cfc8140","block_type":"box","text":"company’s risk profile, the environment it operates in, and the individuals the board is trying to attract and retain. We","page_number":210,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"bf75bb81-d116-4819-9821-1519bce1d4f6","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":210,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"a8207d47-9859-4f15-9361-9d71c2c1858d","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":210,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"dd9cc068-02cd-407b-8c56-8c770838b155","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":210,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"192b0a71-00ca-40b5-8937-b310e6d7ef15","block_type":"box","text":"executive compensation strategies.","page_number":210,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"352534d9-e502-4463-b85d-5126ad03ce59","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":210,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"854b87aa-9aea-4774-852f-2b9e89d2c11f","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":210,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"0fba9830-5fa2-4ac5-b1bf-a2527d366b97","block_type":"box","text":"and why the discretion was used, and how the adjusted outcome is aligned with the interests of shareholders. In","page_number":210,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"d4ff5ced-8368-4234-94d8-43f81b9ffd3d","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":210,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"01827622-8c14-4df4-a92e-e29c20348709","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":210,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"71c11e61-be25-4319-b522-d70d97e43c48","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":210,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"9b15b26f-f4c0-4d4b-ae39-9750725cb7ef","block_type":"box","text":"8","page_number":210,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"6c3a07bd-6fdc-4e81-b9f0-553352ce6666","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":210,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"84065bb8-2b22-48d9-84d6-377b38844eb3","block_type":"box","text":"different markets.","page_number":210,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"b0708b7e-00c5-4c60-8b6c-2c5360f39f9b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"946d0cf6-245b-4d7b-9270-d4fa7f48b72c","block_type":"box","text":"Global Principles | 8","page_number":210,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"d061d4cc-7cd7-4c3f-9e83-fa8480c6f9a4","block_type":"box","text":"NM1026U-5981128-210/232","page_number":210,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e8786958-af96-4518-b253-5973aa964272","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":211,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"fd66cd16-218f-450b-ad7b-003a45a3fd61","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":211,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"8c86fb5d-f00a-46ec-b788-23b0d324a6a0","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":211,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"0152d57c-b6ea-49d4-b94e-fd2dc346639c","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":211,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"54f46864-87b4-478e-a8b0-77db5e2fd0a0","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with the time and","page_number":211,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"aea33c4e-0174-4a24-b8f4-44061b2576cb","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":211,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"030d51fb-1289-4273-aef0-8e7ae0e11852","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":211,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"f45aad60-a4eb-4255-be96-46dcb0a03baf","block_type":"box","text":"whom they are charged with overseeing.","page_number":211,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"f6ebd4d7-2081-47bf-b425-74795091bf06","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":211,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"d110e348-b8af-4c8f-9be0-bd05066bbc07","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":211,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"99adf785-02ea-41e5-bb1d-081834c20b7e","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":211,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"d32b5c1d-3d89-47a6-9982-7ed9faa557ce","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":211,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"c586b4ab-368d-4890-b38c-3fe6eeaade5f","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":211,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"a2afda64-1a57-43f9-94b7-261ba44c4639","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":211,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"341051d4-e172-4d7b-a1ef-607565bbaa94","block_type":"box","text":"structures.","page_number":211,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"f3f54715-5665-4cbd-a8d6-3ba95790f4ac","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":211,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"7214e92b-f9f7-4fd8-a974-04d1c9e116e3","block_type":"box","text":"Corporate form","page_number":211,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"e7dbc7b9-783b-4bc0-9b3b-94c5e6e35a54","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate given","page_number":211,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"c346cae3-5321-44b3-b097-de252aa28fb9","block_type":"box","text":"the company’s purpose and business model.","page_number":211,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"44453d20-b202-4e07-8b79-8962018d8ad5","block_type":"box","text":"9","page_number":211,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"823f9fa6-46b3-42b4-8500-cbe80a325b42","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":211,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"c4a02646-0d00-48cc-829f-69a333093713","block_type":"box","text":"public benefit corporation, or similar entity, to put it to a shareholder vote if not already required to do so under","page_number":211,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"8e56cd53-7171-4df1-90fb-7476f1a1908c","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":211,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"3e563321-c4f4-47d0-98df-bd1d4fa93bd2","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":211,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"970f7334-4595-4ca8-9dd1-3e3e03527d6b","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":211,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"fe5e43dc-d17f-4b4f-8cd7-c5d320c19054","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":211,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"76da9d8b-25e6-4d01-9c4a-9a07f3c955a0","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":211,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"a86ab4c3-aaf3-4b29-9743-9a04d5a0ee27","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":211,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"d0d1703a-a526-45ce-8d2d-6e1975ccc5ef","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":211,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"5bb3100d-279f-42fc-913b-aac78f3daf45","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":211,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"4a54ea2c-6a92-420a-814f-a5f2d3f2564d","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":211,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"c5a6d023-5a3d-4c02-8a59-b218f215824c","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":211,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"61f3f238-9888-426a-88c9-bff05f5d4558","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus on the","page_number":211,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"d265113b-6709-4d35-aa10-a0f58562f907","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":211,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"5a0e498e-764e-45ec-b8be-6ba2fb461664","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":211,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"0a1ee643-1b9b-4f20-a5bc-6b78d99e9200","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":211,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"f09c12e0-441e-4ea0-bbb7-a26a8979fa4d","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":211,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"654f7a83-bd98-4576-9b02-45da7a6efce0","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":211,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"ae27be97-7b1a-4ed7-870a-86e7ee587619","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":211,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"a14084a0-aa2c-49b0-82a3-70a3fa172216","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":211,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"08c78148-388e-415d-880f-6dedde9915bb","block_type":"box","text":"benefits to the company of meeting the request made in the proposal. We take into consideration a company’s","page_number":211,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"df49c58f-8b80-48d5-b1fc-bc4419f9e190","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":211,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"fab0a6ba-8030-4c0a-aa8e-9115bed816de","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":211,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"0c1a61d2-74b6-4ffe-b12b-929dda14bcac","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":211,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"1808e529-c311-406a-b181-829210e9cadc","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":211,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"e460a823-110d-4754-84f0-89f7780814e6","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":211,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"42afafb2-07e5-4c63-9928-47fc6870cb04","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":211,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"93197b85-61f4-4011-afb6-424329658972","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":211,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"df7d11af-fa69-45ed-88f3-14eae614d62e","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":211,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"4692e29b-a3d2-455e-8b64-97b4e981cccf","block_type":"box","text":"request made in the proposal. In voting on behalf of clients, we must vote yes or no on the proposal as phrased by","page_number":211,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"bd8ce009-9627-4ced-9809-0395016011eb","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":211,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"bd466f88-9d61-4842-9cc4-a8c9600cff9c","block_type":"box","text":"9","page_number":211,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"797acebe-3c73-4fb7-9623-a39f534ba46d","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":211,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"623fe7af-b234-423f-8a7f-0b489d6398ae","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6d6fe010-7350-4235-86a2-106092dc1c2d","block_type":"box","text":"Global Principles | 9","page_number":211,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"486c9c14-fe18-4a57-8f22-bfe6a5fa3580","block_type":"box","text":"NM1026U-5981128-211/232","page_number":211,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"22b1a790-1f13-4bab-80b7-5c0c0ad49bfa","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":212,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"6a0c883c-9c23-4b6d-be99-f628dc338b85","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":212,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"77d3e2c8-a2ce-40e4-8dc6-10139d788d43","block_type":"box","text":"long-term financial interests.","page_number":212,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"d6caa0aa-4938-405f-a22f-f91c35e948e9","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":212,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"6cd28dae-9626-4655-a2c1-83b326128867","block_type":"box","text":"restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our","page_number":212,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"9d8a9f48-1e16-4411-8210-29193325557f","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":212,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"7dc15fcc-7adb-4303-8d63-8cc871eca3f5","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":212,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"20159860-e2b8-4cd5-b582-d8e13b97aecf","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":212,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"3409e249-3db2-4ee7-bea9-eb5c77075662","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":212,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"59672d3d-45f8-4a32-9ee2-b594bc241e99","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":212,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"1a65de9a-7d2c-4acd-b880-ab714c0846df","block_type":"box","text":"term financial value creation.","page_number":212,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"0eccbd02-d6b4-452e-8733-87e30fccd86a","block_type":"box","text":"10","page_number":212,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"a67a6bd1-d327-41f8-8b49-bfbd6a4c64ff","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":212,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"ce3bd0f7-98c9-4450-92be-ac7863e48bc6","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":212,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"7549f5ee-415e-4d56-81b9-9ec21ab75a77","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":212,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"f169cd3f-27b6-4802-9028-9c5ecb618e74","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":212,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"93514ade-5fbf-4386-8e89-737dd8f474ff","block_type":"box","text":"industry-specific metrics.","page_number":212,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"b9bbcbd8-231a-417c-8d24-b98b3beeddd3","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":212,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"97aebc5a-5134-44ca-99ff-845b0ccf1bcd","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":212,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"5b15f263-658b-4284-b7ae-ca23ac11b3ea","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":212,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"e54b4ce9-6efe-499a-8cbb-210e118e07e1","block_type":"box","text":"11","page_number":212,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"a39f9eba-aa1b-4def-8478-fc2c07ce467e","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":212,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"e61d8b7f-9296-48f5-9da1-736ad8709bca","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":212,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"fd86ed17-cd24-4a98-a2ac-5168b67dc382","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":212,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"61827f0e-5593-4169-bd6d-889e5abc9211","block_type":"box","text":"specific.","page_number":212,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"323b6196-e354-412f-b95b-f895eff10762","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":212,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"be12541d-0da2-4dc8-a944-69666d7090ad","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":212,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"6709beb7-ec53-46b7-9645-5c68e7d6ba9f","block_type":"box","text":"them sufficiently in advance of their shareholder meeting, to the best of their abilities, to provide investors with time","page_number":212,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"7c34ff29-1a07-4839-9076-f4e55c46c552","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":212,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"71e8031d-9a61-471f-993e-95f16c63bdb4","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":212,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"eec66cb0-c5ad-47e8-980e-429c55114646","block_type":"box","text":"best practices and disclosures. While not a voting item, we find it helpful to our understanding of investment risk","page_number":212,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"c20550c9-d587-433e-bd98-9a87f7306350","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":212,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"3572f1f3-8edf-412f-ba9c-411ea5ed8c62","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":212,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"a6bdd41d-ecee-42e0-b41a-74d7b50346c9","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":212,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"ed051959-68e5-46e0-b83d-1aa4d1c3db77","block_type":"box","text":"10","page_number":212,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"7f00848e-e7a4-4b6c-a7e2-2d0c23baebf7","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":212,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"3c70600c-bb74-4b2d-8b57-db344f9fc05f","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. 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The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":212,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"3cc6f564-06ed-4765-9ce1-95e40579884c","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":212,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"e5400a0c-bf67-4789-a18c-264a6a9d911f","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":212,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"77f941a4-3051-4b0c-8dad-9ccd87e9876e","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":212,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"8b96aef0-da78-4d3d-bacd-0fb570bcdcdc","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":212,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"80a0092b-fa39-485e-a241-e8749c254579","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c6239af5-44c0-4264-b27b-1bb49942dcea","block_type":"box","text":"Global Principles | 10","page_number":212,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"158a24b1-51a9-4714-a34d-3faa5aa34b36","block_type":"box","text":"NM1026U-5981128-212/232","page_number":212,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3dffbcc0-2002-4044-b9a4-cc3e9c378a31","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":213,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"c5a28ed0-0077-48a5-870b-4452b9b7c0ab","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":213,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"2e84e5da-ea6d-471e-9704-fedb0a348022","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":213,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"9ff60f07-5e19-4bba-8557-b205662eac8a","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":213,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"3a315733-9b4d-4451-b65d-e8bab0e11f95","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":213,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"33d20358-8e52-4da6-aa20-bdca23115e91","block_type":"box","text":"12, 13","page_number":213,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"fda65920-3325-46ba-a203-21408fdae3de","block_type":"box","text":"From company disclosures and","page_number":213,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"9621ee7e-d741-4e0d-8f48-fb8d11929538","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":213,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"eae9eee6-f10d-44d6-a7d5-225971e41eb5","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":213,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"e6863c4b-6711-4df0-9f75-e7b322802796","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":213,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"f66db96b-71c7-4180-86fd-99ee307633ec","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":213,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"ee1abc8d-f660-4fcf-8b79-dff367ccd01b","block_type":"box","text":"viewed as best practice in the market.","page_number":213,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"637ccb01-4df4-4267-99ab-bae57d2b407a","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":213,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"64b664a3-831a-4e4b-81c6-1ddbf6231af7","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":213,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"5a4c2e06-f91b-4511-8eac-957828191b2f","block_type":"box","text":"with insights into how companies are managing the risks associated with a transition to a low-carbon economy by","page_number":213,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"e5f3c570-9ed9-4273-809d-8464c07ae88b","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":213,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"d20bacf0-e94e-4e39-9c98-d8fe5a4dd1a1","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":213,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"b02e6b54-f305-47c3-8a11-7ae55cf2f364","block_type":"box","text":"long-term targets, ideally science-based where these are available for their sector, for scope 1 and 2 greenhouse gas","page_number":213,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"b45589a5-871a-496d-bd54-de5c5f96b34e","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":213,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"308f0b6b-9fea-4088-8185-7d4ce8aa947a","block_type":"box","text":"interests of their investors.","page_number":213,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"7acc5919-1833-4521-97aa-89f754ef0804","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":213,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"8a2a70de-ef7a-45c1-ad43-e7f3b9a854ff","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":213,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"2907deb3-ae95-4cd7-809c-01eca2ac2d80","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":213,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"b14d8b40-7dfb-401b-a02b-83a6db41cf4e","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":213,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"cf7fea7c-924e-4332-b217-4115c834b46a","block_type":"box","text":"good-faith basis as methodology develops.","page_number":213,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"1cab2d8e-bbfb-46af-93c5-136a3da32dbf","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":213,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"7bcc1370-0eea-4ca2-be5f-c83cf140bb64","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":213,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"01a14235-8341-4e48-a3ea-c6ff8473afda","block_type":"box","text":"generate long-term financial returns.","page_number":213,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"e0b58e93-2197-4b25-a071-8216d3fe3dd2","block_type":"box","text":"14","page_number":213,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"4ed29173-bdaa-49f5-98ab-b8b12ccb690c","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":213,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"4c1620e0-ac05-4fc2-b406-f54617f308d8","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":213,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"8addd0bf-bc6b-4e18-8e3f-6cf874e04c42","block_type":"box","text":"15","page_number":213,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"c99eb932-80c5-4601-abd2-9946b0f84b10","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":213,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"ea1355d4-611e-4d0d-93d7-823acb2b2a1f","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":213,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"ec3e42cc-227f-4cf5-8feb-0dd85da2634f","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":213,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"7f671cce-4fbd-4bf0-92f5-c556dbec6654","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":213,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"2d97f85f-caa2-461d-b1b3-28d264abfbc9","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":213,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"2c8b9cfa-0228-4d2d-b5a6-a8816cf60edd","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":213,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"725f6e99-1875-43ec-a93b-87abd0be826a","block_type":"box","text":"12","page_number":213,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"17c1c9dc-94cd-4e6b-9786-925512fff7dc","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":213,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"e0d10535-b74f-4ed0-98e0-5eb4ee5d3d69","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":213,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"f46f1e07-fd11-49ec-9bbc-a9bbc57e7fe6","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":213,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"ba14dfe8-734d-4f43-81b1-b352872ee045","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":213,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"45900fb4-086d-421b-929c-3894a112a9bb","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":213,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"d341a43f-5248-471c-9f25-53911f1bc24f","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":213,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"3f54a9ef-9eb4-40e4-8b20-7013334495d6","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":213,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"21b8d749-0ebe-4ae2-8d11-80a7cf20f523","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":213,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"c23dfe19-d13a-489b-ba92-8797a8146139","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":213,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"9f571802-04ab-43db-9da0-92baf0e53e3e","block_type":"box","text":"13","page_number":213,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"95ed9213-8b31-40d7-b487-2466b0e1d236","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":213,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"a013c722-ebcf-40ff-bf4e-4eeaa236e1e9","block_type":"box","text":"2025.","page_number":213,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"9ee9720c-391d-4689-b4f0-f2e65d7225ba","block_type":"box","text":"14","page_number":213,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"666b7827-fbdd-4050-95de-9ac4472d3177","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":213,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"d8553756-9da6-4c53-b560-605848767a30","block_type":"box","text":"2025.","page_number":213,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"7227bd10-cdb9-44ce-912a-e3ae65eb6b2c","block_type":"box","text":"15","page_number":213,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"932b70e4-0b45-4f88-97f2-a7596a37d988","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":213,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"a16be6e8-dfce-47a3-84da-ad87683e24ae","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":213,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"2f0da0ac-8eaa-4536-810b-1677ba6da6f3","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":213,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"d1a3803b-fa7d-4317-b1c1-5930ff274914","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":213,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"1b7d51b8-1ab9-4d45-b48c-b755f64bbba4","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":213,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"6a87a8ff-6f11-41a2-b124-1f5865868dd1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6b1a5c33-b250-4018-be2e-4484de06051c","block_type":"box","text":"Global Principles | 11","page_number":213,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"ae2a1825-98fd-4960-8b48-75f009e45c2b","block_type":"box","text":"NM1026U-5981128-213/232","page_number":213,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"10005b72-bfab-4bcd-bdca-b69d068aca40","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":214,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"82e10fb0-00d4-4879-9927-1a69aa764284","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":214,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"e4ea4059-4ecb-47bf-9066-bc7d50157bba","block_type":"box","text":"16","page_number":214,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"7d6268eb-210f-4f9d-9637-66e3b3af9d73","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how they have","page_number":214,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"dd684429-efa9-4bc4-9fbf-74873df63201","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":214,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"c04f6401-2c41-44ca-926c-e4e8ad46f6c6","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":214,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"d9636936-6554-4dc1-97e3-a06367f3df95","block_type":"box","text":"needs of their workforce today, and the skills required for their future business strategy. We are also interested in","page_number":214,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"d8d79d6a-c8e4-4607-8e05-cb29a7551fc8","block_type":"box","text":"understanding how the board monitors and engages on these matters, given it is well positioned to ensure that the","page_number":214,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"f7edd610-0737-4491-af4a-5679f6346c2f","block_type":"box","text":"approach taken by management is informed by and aligns with the company’s strategy. BIS does not direct a","page_number":214,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"1836b8c1-03ff-44b7-b39a-9e277e3832f3","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":214,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"84427f63-d3ba-4b4e-b8cd-8084e102adee","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":214,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"d3f0e76e-e9ad-45dd-b868-a9829c7663ea","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":214,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"25156863-e70c-4040-8189-a07fbf8fad14","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":214,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"b8648c7b-d721-42f9-a1a6-db7e141dc17f","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":214,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"a551a685-9930-4157-b9b4-bb42d80142e0","block_type":"box","text":"impacts.","page_number":214,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"71be091a-69b8-4174-beda-86e01b5893c9","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":214,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"74dd7069-eb14-4856-a909-aa04c04235a6","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":214,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"9042c30b-9229-4f59-b545-42d14cd170d3","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":214,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"9307a56b-90d3-4226-b7d6-6ea096842049","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":214,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"98c6d74c-2002-4800-8188-90b01c4e6d5d","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":214,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"5a463b3c-7542-4351-ac30-286acf158ab2","block_type":"box","text":"clients at the global and regional level.","page_number":214,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"0a469492-786e-4235-b2b8-629a67d307c6","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":214,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"154e1899-d836-49e7-8290-2d44a971b23b","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":214,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"e6fdc9d1-163a-4653-8a5f-575def5f5c07","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":214,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"0e417b9d-b827-44ea-871c-e9b49cc617cd","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":214,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"3bc1de3f-a42a-474d-a3c2-0538898986b7","block_type":"box","text":"BIS on behalf of clients, as well as updates on material process issues, procedural changes, and other risk oversight","page_number":214,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"42b1c737-0e39-4e45-bb1b-b52136faeb25","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":214,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"ac3669cd-5998-4d24-a833-d47ac7cde0c2","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":214,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"1cf71e2c-0d85-4453-b805-dddcc412a33a","block_type":"box","text":"are independent from the investment stewardship function.","page_number":214,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"16a0b7f9-aa59-43cf-9f41-0371165ca7f1","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":214,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"d122483d-2c9c-42ca-9101-50be634799f3","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":214,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"99f6906c-c279-4d7b-a5e5-71aaf9abc51a","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":214,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"8f1bbdcc-3385-4fb9-ae55-0c265645cc4a","block_type":"box","text":"VOTE EXECUTION","page_number":214,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"ed8975eb-e663-4e8e-a899-4c4b83f3d511","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":214,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"0fc1bf59-ba03-4dbf-96b2-7a7b4b7cee6a","block_type":"box","text":"processes in place to consider all proxies for which we have voting authority, and submit voting decisions, or refrain","page_number":214,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"41d7aa8b-0671-40a6-9a59-add0af7c1476","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":214,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"474e8561-145c-4bab-a4e2-9da621ee107b","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":214,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"de63c661-2455-4c3c-85c9-c598a7bd0403","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":214,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"4427abe5-f862-428f-90c8-5657df169327","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":214,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"c27cc3fc-cf14-4da3-9efc-26bcc29e6c14","block_type":"box","text":"management policies and procedures,” below).","page_number":214,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"c5be0550-731d-4b98-ba67-473bb610eabf","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":214,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"11069977-40fb-4011-b487-70815b1b1e85","block_type":"box","text":"of voting such proxies on behalf of our clients. These issues include, but are not limited to: 1) untimely notice of","page_number":214,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"665af009-d87f-4077-8344-fb13692fc78e","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":214,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"763d394b-0f38-4545-a4f2-8b6d4422bdf5","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":214,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"352f5076-bc63-4833-8d81-60ffe151b065","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the after the shareholder meeting","page_number":214,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"f8c0cf26-3d4d-48ca-84f1-8baa29848f8c","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":214,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"eb3e60f3-70c0-4f41-ac54-c6533bf19da2","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":214,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"8aea5bb3-7c09-4e10-9283-509b1ad88af4","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":214,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"56a9d2a7-72e6-4ae6-8e24-8369c426d285","block_type":"box","text":"16","page_number":214,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"e5192e68-0fe1-45a3-8bb5-94b34674313d","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":214,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"07020ef4-5129-4d2b-93b6-94572ad5640a","block_type":"box","text":"December 2025.","page_number":214,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"c84fda04-1e99-4ea9-895d-ee40618a184d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7efc17d6-aeeb-4e95-9ff4-18136a29a2a7","block_type":"box","text":"Global Principles | 12","page_number":214,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"37b68317-3f46-4b0f-a94e-2ece47c947bd","block_type":"box","text":"NM1026U-5981128-214/232","page_number":214,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4ea87d35-dcfe-4148-922d-2788f64ce7a4","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":215,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"4691c3b2-aea2-4890-b22e-3e73af38847a","block_type":"box","text":"in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs (including but","page_number":215,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"c09d6574-52a2-4472-88b4-0666dc4fd644","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":215,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"0e2338be-66d1-424b-979d-bdf961f1d39b","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":215,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"20a84ac0-c818-430e-9103-95d5e44e452e","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":215,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"d68e5c5d-b8c6-4dc6-9f72-39407467b20f","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":215,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"ff4a324c-a41b-4a9e-a96e-2053559af729","block_type":"box","text":"enterprise-level vendor management activities.","page_number":215,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"2f9dfcb3-8a0c-437b-89c6-7e485a5ce9c6","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":215,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"c92a8335-2d0b-4f35-9140-b1283e5087c4","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":215,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"20eb33c3-e434-42b9-9c45-fa626d412dd4","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":215,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"aa12719a-11e5-45e2-abc6-7cd22b87f37f","block_type":"box","text":"BlackRock employees.","page_number":215,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"bb50a077-7833-4ef8-b684-434a084e9e1f","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":215,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"3ce1fb7c-a692-41ba-9692-e12e65cb5d59","block_type":"box","text":"SECURITIES LENDING","page_number":215,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"f0aac1db-7b29-491b-b726-d53849a5be0a","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":215,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"a8296cf0-bc06-412e-a42b-7cb2a83f192b","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":215,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"b50a160e-6f3a-4b81-a103-76c95e7c27aa","block_type":"box","text":"recall securities out on loan at any time. BlackRock (or any other lender) does not retain voting rights for securities","page_number":215,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"2b90de92-030e-49b6-91d7-be0929a4c34c","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":215,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"155c9e8f-da94-4740-b60d-8a226a0cf475","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":215,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"48930d0c-be48-40de-a56b-533fea693171","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":215,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"58547a94-a9a1-42cf-9ba9-71050e504848","block_type":"box","text":"loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset manager to our clients","page_number":215,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"a3f9db0f-ed10-4b72-8603-11064f8af4b2","block_type":"box","text":"in helping them achieve their investment goals. 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BlackRock can then use its proxy voting","page_number":216,"box":{"x":70,"y":338,"width":800,"height":12}},{"id":"77b1c0fe-5510-40f6-9f52-d415b610b56d","block_type":"box","text":"infrastructure to cast votes for the SMA based on the client’s selected voting policy.","page_number":216,"box":{"x":70,"y":354,"width":596,"height":11}},{"id":"9d3edbd7-6055-4319-974c-133b424ea875","block_type":"box","text":"20","page_number":216,"box":{"x":69,"y":372,"width":9,"height":4}},{"id":"ff010ad9-222f-4f7d-bc4b-4d331d06c8f4","block_type":"box","text":"Read more about BlackRock Voting Choice on our website.","page_number":216,"box":{"x":84,"y":371,"width":415,"height":11}},{"id":"55955b12-e4ac-4e06-8eb2-1c52c03a010c","block_type":"box","text":"21","page_number":216,"box":{"x":69,"y":389,"width":9,"height":5}},{"id":"36b2d68a-a85f-40d3-96a4-2288bda8fbed","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":216,"box":{"x":84,"y":389,"width":820,"height":11}},{"id":"1ca20a2e-1923-4402-97b6-3c222c9fd68e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"dd69f899-bbc2-4d9c-8f96-fff419ad63b2","block_type":"box","text":"Global Principles | 14","page_number":216,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"892cd731-341c-46b7-8def-ab7517958b49","block_type":"box","text":"NM1026U-5981128-216/232","page_number":216,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"662de65c-a4fa-43c6-9405-f1519895ecdf","block_type":"box","text":"Want to know more?","page_number":217,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"391535da-33d3-4fa2-9f0f-ced35b4e03aa","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":217,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"db241f15-0cf4-49df-93d7-3ac7510fbc88","block_type":"box","text":"This document is provided for information and educational purposes only. Investing involves risk, including the loss of","page_number":217,"box":{"x":68,"y":792,"width":839,"height":11}},{"id":"e4857751-d09c-4bbe-97c7-e9d0a7449107","block_type":"box","text":"principal.","page_number":217,"box":{"x":70,"y":807,"width":62,"height":11}},{"id":"a3ed218b-cbef-4fd1-8994-b9bbaee4cede","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":217,"box":{"x":69,"y":852,"width":196,"height":11}},{"id":"242e0223-d00b-4a8a-a5b0-0511a0e6b784","block_type":"box","text":"©2025 BlackRock, Inc. 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All other trademarks are those of their respective owners.","page_number":217,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"ea71c857-1fd1-49c4-8f25-9ff2863c6b67","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"343f87b9-af43-44ee-be16-c41702a0e067","block_type":"box","text":"Global Principles | 15","page_number":217,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"cab8f657-2d5f-49c0-8f0f-cb181185cd01","block_type":"box","text":"NM1026U-5981128-217/232","page_number":217,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4ea84cac-f00b-4989-b471-f752e76c99b5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"20ff04f7-2eef-4d35-9b4e-b8ac284750fd","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":218,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"e5a3ffcf-e162-4099-a909-198c2eaab4bf","block_type":"box","text":"Effective as of January 2026","page_number":218,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"ac700d69-e170-4229-9957-4ccabcf5fafc","block_type":"box","text":"NM1026U-5981128-218/232","page_number":218,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ce4a3741-2932-40d7-ab85-ab965060bef1","block_type":"box","text":"Contents","page_number":219,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"50cb6d83-0baf-42e3-9ca0-4a3a119ef8b1","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":219,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"45f98677-57e0-4186-8f86-08a03c432b03","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":219,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"72fbb769-e09b-40dd-a62b-9296068c3753","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":219,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"e4579058-f3f5-47a4-b3a4-860323a8a35b","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":219,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"4e60d60e-a12a-438a-83ba-77e5663d484f","block_type":"box","text":"The Guidelines’ design principles","page_number":219,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"be04a1c3-30bf-4fb6-a889-2a767c850755","block_type":"box","text":"4","page_number":219,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"3d2963a5-ffcc-44a5-87a8-3804956137a8","block_type":"box","text":"Voting approach under the Guidelines","page_number":219,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"82d961ef-3326-46e4-a4b2-c2fb3fc4336f","block_type":"box","text":"5","page_number":219,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"55eeec8b-310f-4d25-9f2f-51932eaa5e4d","block_type":"box","text":"Related matters","page_number":219,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"ed6db6f4-1af1-4d5d-b848-13d81439c852","block_type":"box","text":"8","page_number":219,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"be886fc6-29b6-4473-b0ff-4557948d5208","block_type":"box","text":"Appendix 1","page_number":219,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"f0d33d23-e70d-4819-a045-676021a4d6b5","block_type":"box","text":"10","page_number":219,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"6642954c-4408-4a12-a8e0-1ce2b7030e3f","block_type":"box","text":"Appendix 2","page_number":219,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"f35a0a6a-76da-487d-9618-9c30c1d6b937","block_type":"box","text":"11","page_number":219,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"a5cfaf7f-62cc-4005-88aa-68a3ae3080c5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a0b8f915-085e-45a2-9091-0b145190d649","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":219,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"813a9e18-4a09-4937-bf3c-fe00fccf6180","block_type":"box","text":"NM1026U-5981128-219/232","page_number":219,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"00b301fa-2857-4947-98b4-25134af57fa1","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":220,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"2542e7ae-44b8-4fe9-8ee6-af4303672b0b","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":220,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"84bae396-f63a-425b-afa5-ab48ba5ec83b","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. 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Net zero commitments are sourced from respective","page_number":220,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"f9a4013b-b5c1-44bc-b264-63f84406b9c9","block_type":"box","text":"company websites, as of January 2025.","page_number":220,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"dac21076-029b-4472-a517-9bc2e2955bc8","block_type":"box","text":"5","page_number":220,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"ebe00694-eaf5-4322-8343-fdc6e9431494","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":220,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"94a1f2af-1df8-40c2-ba18-56da117c0b25","block_type":"box","text":"6","page_number":220,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"424496e1-4839-4ddb-8c69-fdd27bc10343","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":220,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"15e3ae2e-e5fd-4408-ac51-03febb665699","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2694130e-e655-432d-88df-32476f813172","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":220,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"2f5fb256-4fad-41fd-8198-59985dc58ae4","block_type":"box","text":"NM1026U-5981128-220/232","page_number":220,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ac0b403e-2d5b-4bca-8ea9-4eb623f38777","block_type":"box","text":"particularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":221,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"0b4699a6-d557-48df-a0dc-237e211d32ae","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":221,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"be0e2845-f91e-457f-9ec0-2318cecb6d91","block_type":"box","text":"7","page_number":221,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"2e3a6c04-d904-466f-b84f-c1c9c30c37b3","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":221,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"18419096-5d61-4a4c-b9c9-d80daf6bfc85","block_type":"box","text":"Benchmark Policies.","page_number":221,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"bb14d5a6-31f1-4b04-b42f-b5b8045d48a4","block_type":"box","text":"8","page_number":221,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"bb757532-c033-427d-9d80-3494617a7f53","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":221,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"06c7e710-9dc3-493a-a20f-b50b5e5c5ba0","block_type":"box","text":"decarbonization as an investment objective, BIS undertakes our stewardship responsibilities in line with our","page_number":221,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"e152d41d-9052-4a35-999c-64b5bd2ff576","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. 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Under the Guidelines, the dedicated team","page_number":222,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"793ea96b-ca90-42a8-ac30-62711429e2cd","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":222,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"38ad8d50-d26d-4467-8a86-43851b31eeda","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":222,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"a3190332-efe3-4295-b047-96ed30df19a8","block_type":"box","text":"Voting approach under the Guidelines","page_number":222,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"0c293c31-3609-4614-b0bd-bba9072fac7c","block_type":"box","text":"12","page_number":222,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"e82f0d5b-329a-405d-b9e6-f81c68b8c826","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":222,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"fda42ccb-cd47-4336-b617-01156e8c77f9","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":222,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"be07a50f-7941-4e85-bd97-f7352d39a09f","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":222,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"87a0dc19-2fc8-4c47-8e4c-ddeb1e59a785","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":222,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"48221d73-03d0-4dae-8fb6-7ec7df4adfe3","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":222,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"2651870a-701b-4f3b-aa1d-539b61490f8a","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":222,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"9f7bc646-6941-4415-9822-ed7adf0daed5","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":222,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"c4eac487-0f17-48df-938b-227af015f1a6","block_type":"box","text":"Corporate Disclosures","page_number":222,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"9e95f65e-9780-48ea-b456-4532934e55e6","block_type":"box","text":"13","page_number":222,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"50bb884f-b7e4-4327-be90-9eb5fb53e8df","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":222,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"83b81417-c3f4-4835-9051-291b7074abde","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":222,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"f35e5811-e492-42d2-a06a-532454f454d8","block_type":"box","text":"to companies that are important to the transition to a low-carbon economy to explain the strategy and governance","page_number":222,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"4a1a9c30-d255-4e96-a8f8-d5e2210beecd","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":222,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"e725864e-9b96-4ec6-ba4c-82a6e67d8e2d","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":222,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"989ff735-8729-4b24-8c70-27225f367785","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":222,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"18314184-808b-4bfa-adc1-d2b467234ef1","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":222,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"2c361dc5-526b-4260-9051-1ef954263347","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":222,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"01cbb9b2-83d1-4288-8a57-d8015607ad62","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":222,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"a82f2ef4-c492-4ad7-9776-3ff7f87fcab7","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":222,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"32cc20be-53f5-4438-a403-3258fcf1e74a","block_type":"box","text":"14, 15","page_number":222,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"b6719fb4-776e-4b63-b8f1-e1b3670e2ba2","block_type":"box","text":"IFRS","page_number":222,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"8239f218-c821-4332-a9d1-8737824af04a","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":222,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"9440174e-8e1f-4336-bf04-2ec4b2dfdabb","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":222,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"5c2a08f1-6014-4984-b02b-03e75b2328a1","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":222,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"5428be29-5979-457d-b348-28c49ad61d96","block_type":"box","text":"and assurance standards are developed.","page_number":222,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"e48f81f9-8123-4a81-9463-f6a57009a5a8","block_type":"box","text":"12","page_number":222,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"20629ed4-a591-440a-9951-569e6990fb21","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":222,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"0ad49c53-cab1-428b-967f-f22b69c386a1","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":222,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"119ee97e-e8a8-42ee-adf1-45852594f3e4","block_type":"box","text":"team with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":222,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"164f7582-91b2-46cc-bb67-b20bf8480d32","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":222,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"1a6dd271-87aa-4081-ac1a-e3ac4f69fce7","block_type":"box","text":"13","page_number":222,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"7b798a03-c3fc-4eaa-b12a-31120fefb334","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":222,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"a6e581f6-97df-474e-9074-735fd932b2a0","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":222,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"07eae533-7f02-4bf0-9e66-d7e26fd7337f","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":222,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"35299db4-8c01-45b7-b491-5630c6c74765","block_type":"box","text":"14","page_number":222,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"df17212c-a312-4df3-920f-bee90d22b24a","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":222,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"5308f6a0-f73a-4cbb-ac83-a0d0a5c8e063","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":222,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"648a74ea-17ab-42a8-a3f6-9b08dce7d1b6","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":222,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"38941a84-70ad-4d50-b80a-f4f25f8530dd","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":222,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"d33a8335-a886-469d-82b5-8331997f5ac8","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":222,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"a79cc667-c2a4-4a2b-a970-f5da1fe612de","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":222,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"59b1847f-0b80-421a-8e99-46b3f44d256c","block_type":"box","text":"15","page_number":222,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"fd177905-5e39-46bd-a21c-b607e01f1cbd","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":222,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"808baade-e5d4-474d-8ac7-0c31593217e9","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":222,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"a44ff451-18be-464f-93ef-fd8b65685d9c","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":222,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"126d4e9e-b02f-458d-854f-ee80998b0e15","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":222,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"99f80803-bbff-4798-a79b-043fdc72bda6","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":222,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"5b6521ad-c54d-42d6-8b0d-b779e76e0a26","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e9ff0012-8c1e-49bc-8c98-e9bc6ab106f5","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":222,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"aa19f958-d989-457e-8ec1-3d16611d6728","block_type":"box","text":"NM1026U-5981128-222/232","page_number":222,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a10f60e9-383b-4749-a22d-9cddf7979e3a","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":223,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"2562ba8a-3edc-4068-8b21-f112bd51edb9","block_type":"box","text":"16, 17","page_number":223,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"e564881b-b8ef-46c5-980e-d798f413af94","block_type":"box","text":"In addition, the dedicated team looks to","page_number":223,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"cb73a2a5-a59b-43ce-871f-da92ffb0999e","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":223,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"c5e200f0-4d6b-4987-9d2e-7391133c8370","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":223,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"d4a36fa2-26f7-43d8-9829-0363edbf0a5f","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":223,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"896bc4fd-0025-4582-87bf-9db2a6dce482","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":223,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"5b761d53-ed8d-461f-94c2-4ab81fe40587","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":223,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"f52e6501-5e31-42aa-aef8-9eff77c895d7","block_type":"box","text":"18","page_number":223,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"97fbd5b0-3fa9-41de-810b-5ca0cd002216","block_type":"box","text":"However,","page_number":223,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"75ab8150-20fa-45d4-a411-d5d13416013a","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different parts of","page_number":223,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"60b140af-f64d-4601-88ec-dc77761c305a","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":223,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"6040c062-dd44-4c3b-a3d2-d193e6eb1b19","block_type":"box","text":"their decarbonization targets. 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This may include","page_number":223,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"540a6850-8ef3-484b-98bd-1799c0558e0f","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":223,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"d7e97fb7-547b-4bce-82b6-7447c14f85e9","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":223,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"fb301709-4e3c-47ec-9840-e6315638788d","block_type":"box","text":"transition risks.","page_number":223,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"ccda6a56-b27b-446c-b6f5-7fe3b4320d52","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":223,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"2e18d72a-a000-48ae-8f83-c3cbd7d8d9b9","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":223,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"0a0fda77-5d8c-4368-ac80-3fb65617b045","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":223,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"10d894b2-d034-4fbb-9f71-713e5778707c","block_type":"box","text":"Transition plans","page_number":223,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"115b69b6-07fa-4448-b6bf-2faa6cbaf0ba","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":223,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"1b011b98-3130-4c12-9e47-8bd490e78806","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":223,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"0dcaa101-7c1b-4810-8f0e-7f811cc84293","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":223,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"f9709da9-9d02-4751-951c-525214984841","block_type":"box","text":"(see Appendix 1).","page_number":223,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"236690f4-d14f-49d3-a926-9b2545f706cb","block_type":"box","text":"19","page_number":223,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"721bfb72-6fd5-4b4f-bd40-6722dae84a00","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":223,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"c2ba891e-c140-4e03-b19d-174974c8f7ca","block_type":"box","text":"transition plans.","page_number":223,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"fe796eb7-a073-459c-9ffe-22a99973a0e0","block_type":"box","text":"20","page_number":223,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"6006a52e-cdb9-48b5-afe9-a603ce9699cb","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":223,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"a108eb4a-ba13-47de-9018-6307fcfc4308","block_type":"box","text":"reporting approaches.","page_number":223,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"e37a963d-ff31-43d1-a4ab-d5113c59abca","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":223,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"74403ac1-08c3-41c4-9147-51350fd93fe7","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":223,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"accd4674-03e5-4a0b-be33-868fcf24afde","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":223,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"9f94294c-8a11-4676-aa63-d49dd0d9b4da","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":223,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"5ee2d282-646f-4821-a2b8-6feeeec9f70f","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":223,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"2fed26d3-0a6c-4296-8279-6deeae277f41","block_type":"box","text":"informed voting decisions.","page_number":223,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"d7dd5080-51ea-4c6c-960f-993283eb44a1","block_type":"box","text":"16","page_number":223,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"ea05d4d5-b1de-4921-bf36-d2a49cff961e","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":223,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"e4f66cda-faff-47ad-ab0b-c4dc63d04026","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":223,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"4e9d4c77-b9c5-4508-9206-e9af6a8652f5","block_type":"box","text":"December 2025.","page_number":223,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"9f7ec33c-d91b-4ceb-9770-f0640bccb875","block_type":"box","text":"17","page_number":223,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"8147cc39-8aed-4a5c-b1cb-af464d7ab796","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":223,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"34c95ad0-f1a9-4fa0-84bf-cc6f82be0d42","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":223,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"5b014127-67c0-43c1-96d9-6d24e0a8b737","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":223,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"21ca7924-4899-4c7c-a81c-b01604cd7c84","block_type":"box","text":"science-based and net-zero targets in line with the global 1.5°C goal.” Websites accessed in December 2025.","page_number":223,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"b6c224a7-7d9d-42aa-9abe-9e2e3d50c4fb","block_type":"box","text":"18","page_number":223,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"225a9a06-fdc0-46d6-80ce-50210c7b3309","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":223,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"7ebccc6c-104f-49b7-919c-e1349e636241","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":223,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"32401902-57d1-42eb-b9d2-7dfab1c7023d","block_type":"box","text":"complexity for scope 3 emissions and the lack of direct control by companies over the requisite data, we find it most","page_number":223,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"25c8e955-dc84-438b-9141-68dcb1e5531d","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":223,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"e54e4e21-a330-4278-ac47-4f4abbbba48d","block_type":"box","text":"material to their business models.","page_number":223,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"2a3e1302-e5ae-408f-9ac9-d3fa164e234d","block_type":"box","text":"19","page_number":223,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"86760f2c-e903-4e65-af96-5c2b9bdeb3a4","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":223,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"8ab753d2-a8e7-4783-a15b-21d00c624802","block_type":"box","text":"December 2025.","page_number":223,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"ae3a436d-3557-4d5e-a44a-97e8e7cc1eae","block_type":"box","text":"20","page_number":223,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"25831ffe-0d27-46b4-8638-c4a196d74d06","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their","page_number":223,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"b61f6644-aae3-4642-9f30-fd2404119a7e","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":223,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"6bb3e66a-ad08-4185-825f-bef1637da4a7","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":223,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"316aab98-4650-4b14-bf37-6e8b693b1ea7","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":223,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"ad8250ec-dd3a-497b-a5fc-d8c095efa6ec","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":223,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"2b2319ee-4f39-4b94-9b6e-4054c8e6bad8","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Given forthcoming regulatory requirements in certain jurisdictions, some companies are voluntarily","page_number":224,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"ab3c3fcb-607f-4ca9-80b8-4cc9a8d96ae5","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":224,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"874de340-c95e-4a32-a4d7-a68182104bb2","block_type":"box","text":"with the different constituents in their value chain.","page_number":224,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"79d0f396-8b5a-4411-be65-9261d2c3cc9a","block_type":"box","text":"21","page_number":224,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"1e799e7c-f733-469c-a1a1-ef688de995ec","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"f476fdcb-9b4d-469e-af7a-5d6d9c6ea757","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":224,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"8710e8e7-ecc3-452d-abfa-fd09ac64e6f9","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":224,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"a700c06e-ec54-4cb6-9711-5dd45fbf86f4","block_type":"box","text":"22","page_number":224,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"7fac2ddd-d13e-4dd6-9081-1cdedd2cb8a9","block_type":"box","text":"The dedicated team looks for","page_number":224,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"d5169714-45cf-42c3-b693-af566886fb65","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":224,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"2aee6cac-630b-4d64-8a7c-836e45926a9f","block_type":"box","text":"related to the low-carbon transition.","page_number":224,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"1d9a7829-5891-4eae-9f75-8ca92cb8edf7","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":224,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"f338d2c5-4786-480e-9376-131af1ba33b0","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors standing for","page_number":224,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"eaae890a-b1df-4006-bcf0-58a93a90f4f7","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":224,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"f89dd61b-40da-4912-8677-929c7302b11b","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. Where the dedicated team","page_number":224,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"f9fcdbab-d96a-4d52-ad94-259ce81e2c2d","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":224,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"fd09adc6-ab54-412e-84a4-a68df6462c73","block_type":"box","text":"having the most responsibility for the issue. The directors most likely to be in focus are the chair of the board","page_number":224,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"844e8bb0-11d4-4ff3-a3ac-7f28e9b2febd","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":224,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"1a4646f0-8551-4d00-895d-0e7bd8fd728c","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. 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The research uses a definition of materiality from the GHG Protocol,","page_number":224,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"6b262925-0a70-4529-9661-cc44003282c0","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":224,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"f0ddac04-6ce2-4acd-9e29-fe11636a1728","block_type":"box","text":"offer the most significant GHG reduction opportunities and are most relevant to the company’s business goals.”","page_number":224,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"113844b4-d61e-44ec-81cc-e672a4bfdb54","block_type":"box","text":"Website accessed in December 2025.","page_number":224,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"0d50a4e1-6042-4a64-bd7d-ed1e6fd6e63f","block_type":"box","text":"22","page_number":224,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"bf114f9f-b19f-4ba8-92a4-ed6821288706","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":224,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"b2a49d02-59b1-4d46-a843-acd463d318a9","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":224,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"87f5f473-1b78-4d33-9458-88956ac04fa9","block_type":"box","text":"23","page_number":224,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"bb423987-8c55-45b7-a8f8-dc3594a660cd","block_type":"box","text":"Board report votes are generally advisory and relate to reports issued by the board of directors that may contain","page_number":224,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"d08e55dc-370e-446c-aee1-d5ed9604006f","block_type":"box","text":"information on a company’s sustainability efforts, operational resilience, or financial condition, among others.","page_number":224,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"8750a791-d245-432f-9dc3-d5748ebeccbb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1a66fbc6-3c0e-45b2-a9fc-6c6a696e59ff","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":224,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"6e00ccc4-ee98-4055-88b4-9fe75ffedbea","block_type":"box","text":"NM1026U-5981128-224/232","page_number":224,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"617cc2bc-e6dd-4021-a482-9fc39b7d1cfc","block_type":"box","text":"Where the dedicated team has not supported director elections over climate concerns in a prior year, and the","page_number":225,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"e50eb181-812c-4d43-8945-229e55d4bec6","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":225,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"1df3ac8d-da72-4d23-a950-d777ec8affda","block_type":"box","text":"may escalate by not supporting the re-election of additional responsible directors.","page_number":225,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"0b0a55df-71ae-42f7-a250-eca8abe70fda","block_type":"box","text":"24","page_number":225,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"0f99f106-4165-4876-ba49-b2027731f7bf","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":225,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"6f9f11ae-bc4d-4f34-952f-1c58dce3369d","block_type":"box","text":"In certain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":225,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"b3fa6051-fd5d-498a-8dda-8f948100f1b4","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress reports. The Guidelines consider these","page_number":225,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"9f1d1971-3bdd-4a1e-83c5-8e0bdd36c97e","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":225,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"4b022867-ef4d-4af1-8fef-754394b1473e","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally supports management’s climate","page_number":225,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"d5f46d2b-f8c4-4c1b-aa92-09bf551bf3d9","block_type":"box","text":"strategy proposal if, in the team’s assessment based on these Guidelines, the strategy is aligned with the low-carbon","page_number":225,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"e52e7374-2809-4a8a-bae3-5e1b04bb8fa6","block_type":"box","text":"transition. Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":225,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"a9e39537-ba4c-4d45-a3bd-df6866aa9508","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":225,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"519d3835-d2ba-4331-b6d3-6a2a052496ac","block_type":"box","text":"transition plan and targets.","page_number":225,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"443fe67d-7481-4702-807b-d69c7053ee99","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":225,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"77ebd74d-15a9-4250-8894-3a6acb004423","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":225,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"ad3fcc07-ee1f-4caa-8b48-829f9652ddae","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics and have varying degrees","page_number":225,"box":{"x":70,"y":302,"width":824,"height":11}},{"id":"3731528e-c740-49be-b720-994c1c469019","block_type":"box","text":"of relevance for companies across sectors, locations, and business models.","page_number":225,"box":{"x":69,"y":317,"width":543,"height":11}},{"id":"86e97480-b6ee-439e-9b5e-e5174b290dcf","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while considering the","page_number":225,"box":{"x":102,"y":339,"width":767,"height":12}},{"id":"4a898b76-0f30-4d74-baff-55d3fe7a0a3d","block_type":"box","text":"company’s individual circumstances. When the dedicated team votes in support of a proposal, it is not necessarily","page_number":225,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"781c3756-0551-4edc-8e76-5b5623611668","block_type":"box","text":"endorsing every element of the proposal or the reasoning, objectives, or supporting statement of the proponent.","page_number":225,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"e73800bf-bab0-47ee-bb1f-dad674d57e8a","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s low-carbon","page_number":225,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"c837e062-bf8f-4248-a9f3-0788e190de5e","block_type":"box","text":"transition strategy and targets. The dedicated team assesses the implications for, and the relevance to, the","page_number":225,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"5aafe3bf-60d7-48f5-92fa-3fd6440cee4c","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may support","page_number":225,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"80707548-e318-4888-a7b2-1d0d9cc49118","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":225,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"da5a6eb4-f7af-49a4-8ca8-66cf59593702","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"49c32f04-aef0-49bc-84b8-b1b7eabd4846","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":225,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"d8ed448c-ec20-4125-b0fc-c1da4361ef63","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":225,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"82609315-5af2-4b02-8752-b7a5ca2412e7","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"e5a485de-73bc-4086-ae1b-eb4c709adf8b","block_type":"box","text":"Align scope 1 and 2 GHG emissions reduction targets to, and/or discuss how their targets align with, a long-term","page_number":225,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"df274110-c945-4fa6-a619-4f2b4ade3b1d","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":225,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"2e20b491-eb0e-4819-aa33-37637171693f","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"27b59eac-ef32-4c01-9ec3-ec672917357e","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":225,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"dd2ec5bf-f8f0-47f6-a918-acd4c14aa4cc","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"4f4ee32a-3602-4498-bfa8-29457a6ae500","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":225,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"9d859e39-612c-48e5-92e4-783abb820d63","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":225,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"ed59fa40-be47-434c-8232-96ccf85a3ed4","block_type":"box","text":"25","page_number":225,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"8c91621c-2885-46e4-b3b0-1b2839a70b48","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":225,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"713f9668-5603-4b83-841a-13cb3aa9f252","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":225,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"3f417a1b-4ee1-4fe0-a124-782a8db2002c","block_type":"box","text":"RELATED MATTERS","page_number":225,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"52e500cb-6753-4d24-9e56-e9ca2abf6b83","block_type":"box","text":"There are other business items not covered above that may be put to a shareholder vote that could address","page_number":225,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"f435666a-964e-4123-ac1f-5fd6def18968","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. 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Generally, voting on these matters would","page_number":225,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"ea616300-78b5-4bd3-a520-76a4ebd09c01","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":225,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"1f827816-4491-42f6-8c90-ffc43bcb13f4","block_type":"box","text":"Executive compensation","page_number":225,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"5062e739-f36c-4dd2-81cd-9936fb2cf7e1","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":225,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"6cd677e2-1f8d-4373-8e7a-84075d1da9c1","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":225,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"ec944463-ad94-46a9-a0bd-7f38587722e0","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":225,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"303c26e0-b126-426a-8f2a-3755fb527ee7","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":225,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"adb91d2f-b2c8-4db5-a170-91076ba26722","block_type":"box","text":"24","page_number":225,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"4a744966-59cb-4f31-b549-2400db74c395","block_type":"box","text":"While the dedicated team may escalate voting by not supporting additional management proposals, principally","page_number":225,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"0bd66b52-c055-427f-b689-cf50427f07c5","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":225,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"fe369d2c-9620-4c7a-ad6a-ef3fbe4f044d","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":225,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"fd9c3dae-b1fb-466a-84b3-ff258b5b873a","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":225,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"19aec2fc-c12a-4cbe-a440-1136de5d5346","block_type":"box","text":"25","page_number":225,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"5132739b-08ba-4bdd-8446-c9eaf129cca1","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":225,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"4af0bcda-7c7b-459f-b83b-fb429663a46d","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":225,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"e2ad3b23-88ee-445d-b44c-0592c12cfca8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2b24acb9-a84f-4ca7-80dc-77082cb807f9","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":225,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"efecab20-184f-4f0b-8113-53faacbf1427","block_type":"box","text":"NM1026U-5981128-225/232","page_number":225,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c16756ff-b5aa-4571-884c-de1814ff70b4","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":226,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"db15fa12-119e-4a65-a705-aa74aaea927e","block_type":"box","text":"strategy and risk management.","page_number":226,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"070f0aaa-b64b-4f94-a657-e5165b7b8bc8","block_type":"box","text":"Auditors and audit-related issues","page_number":226,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"da754aa2-8a06-4a68-a0b2-710fdc69afd8","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":226,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"d8ea3316-ba54-46dd-983b-c8b5e61eb4cc","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":226,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"46352237-5451-49c9-8c27-af04412ac191","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":226,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"8e36499e-a2d4-4f4c-af3d-47496025fe50","block_type":"box","text":"context of its audit report. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":226,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"e01439ae-5423-44af-ac4e-70432aa619c4","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":226,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"c6a2e2e1-af68-4d4f-b1a6-e2a1d240ddc4","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":226,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"7d19eeb8-91f4-4cef-97da-6f89701348dd","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":226,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"ec8d0219-4541-4436-88e2-b460d5aea8b8","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":226,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"5adfc7d9-855d-42ce-ab74-3a26f361c2dc","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":226,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"3a55c132-7977-4203-9f8d-c1869796b6dd","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":226,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"773a733c-9850-47e2-9e1d-cbdcaa09ae67","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":226,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"df43bc20-706e-423f-be71-21140ec5b84a","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":226,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"30fdb7d8-7a8d-4561-bf9f-32bc29c5df56","block_type":"box","text":"sustainability-related risks and opportunities that may be relevant to a company’s business model and long-term","page_number":226,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"7e299667-eda2-4b46-8157-fa7b17027718","block_type":"box","text":"financial performance. These include a company’s impacts or dependencies on natural capital and key","page_number":226,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"880c0279-0408-4d84-abaa-70b8d74eb1e1","block_type":"box","text":"stakeholders.","page_number":226,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"2d972056-a44f-42ec-9209-ebcda7b600fd","block_type":"box","text":"26","page_number":226,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"281eba7d-14d4-4099-b995-85d7d3eaf3a2","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":226,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"ea80ed31-ffaa-4951-a9d6-26ca13abdb40","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":226,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"f1ec4896-f04b-4066-8e52-7944d5c772d5","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. 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The economic transformation is being driven by changes in","page_number":227,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"745086bf-df37-4c38-b0d6-4beda99ca0cb","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":227,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"3503a56a-bce5-46c3-9487-a0a8714ec092","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":227,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"1d89036e-0b90-458e-b3ee-8c18ee4282af","block_type":"box","text":"Decarbonization:","page_number":227,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"7547a6ef-4e63-44bd-addf-e2c92e07c1d8","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":227,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"c78d34e8-023e-4133-b409-176ef95eee31","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":227,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"051b6e33-32af-4598-8c59-eac617e9890c","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":227,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"41d1264e-ecaf-4c4d-a79c-c8b1ec6a0538","block_type":"box","text":"e.g., methane.","page_number":227,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"09b75a18-a551-4b8c-972f-8b3f51042e61","block_type":"box","text":"Climate-related risks and opportunities:","page_number":227,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"34ed6a13-1aa4-4367-9fc6-3c9f672ea5de","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":227,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"5afbe215-7331-47a6-84be-38dcd36bd28b","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":227,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"f7d063d2-5677-4629-927d-68132cdb7a34","block_type":"box","text":"to physical climate change.","page_number":227,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"e5f4a635-1b84-4905-a930-58c667790901","block_type":"box","text":"Climate-related transition plan:","page_number":227,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"804a8d95-95a6-4f67-a8cf-22e58691db56","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":227,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"0582f64f-7e79-44f9-a0ed-24fade840208","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":227,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"903151ee-e344-4e3d-8255-72d4e98e4125","block_type":"box","text":"greenhouse gas emissions.”","page_number":227,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"b9ce7059-876a-4a95-87e4-8b9fb379bcf8","block_type":"box","text":"27","page_number":227,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"1811b85b-3503-4b6a-892a-1d021e7eb936","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":227,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"af3cce98-5258-43ad-851f-61d6132c2977","block_type":"box","text":"Targets that “","page_number":227,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"b413570b-19c6-4a1a-ada9-27edb87c17a9","block_type":"box","text":"are in line with what the latest climate science","page_number":227,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"610f1dc3-b273-494f-b10f-2aa98d6944d8","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":227,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"f564a0f0-269b-4d1e-bc57-2253f453cc26","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":227,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"92135b3a-28d7-4442-8278-fa29ddd07c43","block_type":"box","text":"global warming to 1.5°C. They define how much and how quickly a business must reduce its emissions to be in line","page_number":227,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"3f5a4ecc-8d15-46ff-a4c9-838d0f68ffa2","block_type":"box","text":"with the Paris Agreement goals.”","page_number":227,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"4651d6de-1513-4a01-9fa0-0f3d24236e33","block_type":"box","text":"28","page_number":227,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"5c6762d9-28de-4660-a136-59427be2b7b7","block_type":"box","text":"Scope 1:","page_number":227,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"a458a2bc-0a51-4681-a170-22241f785811","block_type":"box","text":"Direct GHG emissions. 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[It] is defined as electricity [steam,","page_number":227,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"6a9bf265-ab32-4dc0-95ee-1f87f26d6781","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":227,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"1e4af546-f40e-4c1a-82f8-ccfa21dea1a5","block_type":"box","text":"30","page_number":227,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"9b80b8b8-5079-431c-9270-a8a66fda25b6","block_type":"box","text":"Scope 3:","page_number":227,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"afbfc99a-1c41-49f7-9e08-42a35ef93d00","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional reporting category that allows for the treatment","page_number":227,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"007a256b-66ed-437f-9da3-062bf988996a","block_type":"box","text":"of all other indirect emissions. 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